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HomeMy WebLinkAboutR2023-038 2023-02-13DocuSign Envelope ID: 3A47A33D-FC64-4827-BA0D-D75A8DF1DADC 0 RESOLUTION NO. R2023-38 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into an amended Subrecipient Agreement, in the additional amount of $271,049.00 (total amount of $821,049.00), with Counseling Connections for Change for the acquisition of real property located at 2549 Roy Road in Pearland Texas, Property Identification Number 175675. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Subrecipient Agreement, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest the attached Subrecipient Agreement. PASSED, APPROVED and ADOPTED this the 131h day of February, A.D., 2023. DocuSigned by: "-64881A61593r4r2... J. KEVIN COLE MAYOR ATTEST: DocuSigned by: Firm/um gOtar SBEC2253^F-�F1 5... FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: DocuSigned by: 54136... DARRIN M. COKER CITY ATTORNEY CORONAVIRUS RELIEF SUBRECIPIENT 1St Amended AGREEMENT between THE CITY OF PEARLAND, TEXAS and COUNSELING CONNECTIONS FOR CHANGE PREAMBLE AND RECITALS THIS AGREEMENT, originally entered into to be made effective on the 24th day of October 2022, amended on the 13th of February 2023, by and between the City of Pearland (herein called the "City") and Counseling Connection for Change (herein called the "Subrecipient"). WHEREAS, the City has received American Rescue Plan Act (ARPA) funds from the U.S. Treasury in response to and towards the recovery from the COVID-19 Coronavirus pandemic; WHEREAS, the City is also a Community Development Block Grant (CDBG) Entitlement Jurisdiction grantee of the U.S. Department of Housing & Urban Development (HUD) and anticipates HUD funds via grant award/identification number B -22 -MC -48-0400; WHEREAS, the City has stated its intention to ensure the completion and compliance with federal, State and local requirements, to document compliance with applicable ARPA AND/OR CDBG terms and conditions, in addition to the federal Uniform Administrative Requirements (UAR) as set forth in 2 CFR Part 200; WHEREAS, the City shall ensure recognition of the role of the City in providing services through this contract, prominently labeling all activities, facilities, and items utilized pursuant to this contract recognizing the source of funds as City of Pearland ARPA OR CDBG; and WHEREAS, the primary purpose of this ARPA AND/OR CDBG funding is to cover expenses that are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it is agreed between the parties hereto that: ARTICLE 1- PROJECT SECTION 1: SCOPE OF SERVICE A. Activities 1. Program Delivery Activity #1 Acquire land and structure located at 2549 Roy Road, Pearland Texas, 77581 -- Property ID No. 175675 City of Pearland, Texas Page 1 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement Activity #2 Repair and renovate the structure located at 2549 Roy Road, Pearland Texas, 77581 — Property ID No. 175675, to the extent feasible, within the available costs herein. 2. Administration The Subrecipient is required to administer the financial, programmatic, and regulatory compliance measures necessary for Coronavirus prevention, response and/or recovery as an independent contractor, and not as an officer, agent, servant, or employee of the City. Expenditures directly related to the administration of these activities may not be considered for reimbursement, including, and limited to: personnel involved in non -clinical program administration, financial management, clerical/secretarial and/or audits of federal expenditures. B. Performance Monitoring The City will monitor the performance of the Subrecipient against goals and performance standards as stated above. Substandard performance as determined by the City will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the City, suspension or termination procedures will be initiated. C. Special Conditions Title 2 CFR 200 (Uniform Administrative Requirements) Title 24 CFR 570 (HUD CDBG) Title 31 CFR Part 35 (Coronavirus State and Local Fiscal Recovery Funds) S ECTION 2: PROJECT DESCRIPTION Activity No. 1 Type of Project: Real Property Acquisition Counseling Connections for Change - COVID-19/Coronavirus Prevention, Response and/or Recovery. Project Location: Counseling Connections for Change — Pearland Office (2549 Roy Road) S ervice Area: City of Pearland Activity No. 2 Type of Project: Real Property Repair/Renovation/Rehabilitation Counseling Connections for Change Project Location: S ervice Area: Amount Funded: $550,000 Counseling Connections for Change — Pearland Office (2549 Roy Road) City of Pearland Amount Funded: $271,049 S ECTION 3: TERM OF AGREEMENT City of Pearland, Texas ARPA OR CDBG 1St Amended Subrecipient Agreement Page 2 of 23 The term of this Agreement is through September 30, 2024. S ECTION 4: PROGRAM REPORTING The Subrecipient shall submit such reports as required by the City to meet its local obligations and its obligations to HUD or HUD. The City will prescribe the report format, as well as the time and location for submission of such reports. Required reports include, but are not limited to the following: A. Quarterly reports which shall include the progress made to date, or justification for lack of progress, in providing the services specified in Article 1, Section 1: Scope of Services, of this Agreement. B. Quarterly reports on demographic and income information regarding persons assisted by the Subrecipient through this Agreement. C. Closeout reports including a final performance report, inventory of all property acquired or improved by ARPA AND/OR CDBG funds, and final financial report, upon termination or completion of the award. ARTICLE 2- FINANCIAL MANAGEMENT S ECTION 1: PAYMENTS AND BUDGET A. General Statement The City shall reimburse the Subrecipient allowable costs for services identified in this Agreement not to exceed Eight Hundred and Twenty -One Thousand and Forty -Nine Dollars ($821-049) via allowable advances of federal funds and/or upon presentation of properly executed reimbursement forms provided and approved by the City. Such advances and/or reimbursement shall constitute full and complete payment by the City under this Agreement. Allowable costs shall mean those necessary and proper costs identified in the Subrecipient's application and budget and approved by the City unless any or all such costs are disallowed by HUD and/or the U.S. Treasury. The S ubrecipient shall not be in possession of any amounts of federal cash on hand for a period of more than seventy-two (72) hours without written justification of having the need to do so, and with an approval of such written justification by the City no less than two (2) business days prior to the S ubrecipient exceeding the seventy-two (72) hour limitation. B. Payments Reimbursement request must be submitted to the City of Pearland in accordance with instructions to be provided to the Subrecipient under separate cover. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in applicable sections of 2 CFR 200. Reimbursement payments shall be made to: Counseling Connections for Change. Drawdowns for the payment of allowable costs shall be made against the line -item budgets specified in Paragraph C, below, herein and in accordance with performance. Expenses for general administration shall also be paid against the line -item budgets specified in Paragraph C and in accordance with performance. City of Peariand, Texas Page 3 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement C. Budget Line -Item Property Acquisition Acquisition Contingency and/or closing costs $ 12,070 Design/Architecture and Engineering Construction TOTAL Amount: $537,930 $ 35,354 $271,049 $821,049 In addition, the City may require a more detailed budget breakdown than the one contained herein, and the Subrecipient shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the City. Any amendments to the budget must be approved in writing by both the City and the Subrecipient. D. Closeout U pon termination of this Agreement, in whole or in part for any reason including completion of the project, the following provisions may apply: A. Upon written request by the City, the City shall make or arrange for payments to the Subrecipient of allowable reimbursable costs not covered by previous payments; B. Disposition of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the City); C. The Subrecipient shall submit within thirty (30) days after the date of expiration of this Agreement, all financial, performance and other reports required by this Agreement, and in addition, will cooperate in a program audit by the City or its designee; and D. Closeout of funds will not occur unless all requirements are met and all outstanding issues with the Subrecipient have been resolved to the satisfaction of the City. The Subrecipient's obligation to the City shall not end until all closeout requirements are completed. N otwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over ARPA AND/OR CDBG and/or CDBG funds, including program income. S ECTION 2: DOCUMENTATION OF COSTS AND OTHER FINANCIAL REPORTING All costs shall be supported by properly executed payrolls, time records, invoices, vouchers, or other official documentation, as evidence of the nature and propriety of the charges. All accounting documents pertaining in whole or in part to this Agreement shall be clearly identified and readily accessible, and upon reasonable notice, the City, HUD, and the HUD shall have the right to audit the records of the Subrecipient as they relate to the Agreement and the activities and services described herein. City of Pearland, Texas Page 4 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement The Subrecipient shall also: A. Maintain an effective system of internal fiscal control and accountability for all ARPA AND/OR CDBG funds and property acquired or improved with ARPA AND/OR CDBG funds, and make sure the same are used solely for authorized purposes. B. Keep a continuing record of all disbursements by date, check number, amount, vendor, description of items purchased and line item from which the money was expended, as reflected in the Subrecipient's accounting records. C. Maintain payroll, financial, and expense reimbursement records for a period of five (5) years after receipt of final payment under this Agreement. D. Permit inspection and audit of its records with respect to all matters authorized by this Agreement by representatives of the City, HUD or the U.S. Treasury at any time during normal business hours and as often as necessary. E. Inform the City concerning any funds allocated to the Subrecipient, that the Subrecipient anticipates will not be expended during the term of this Agreement and permit the reassignment of the same by the City to other Subrecipients. F. Repay the City any funds in its possession at the time of the termination of this Agreement that may be due to the City, HUD, or the U.S Treasury. G. Maintain complete records concerning the receipt and use of all program income. Program income shall be reported on a monthly basis on forms provided by the City. SECTION 3: REIMBURSEMENT The City shall reimburse the Subrecipient only for actual incurred costs upon presentation of properly executed reimbursement forms as provided and approved by the City. Only those allowable costs directly related to this Agreement shall be paid. The amount of each request must be limited to the amount needed for payment of eligible costs. In the event that the City, HUD or the U.S Treasury determines that any funds were expended by the Subrecipient for unauthorized or ineligible purposes, or the expenditures constitute disallowed costs in any other way, the City, HUD or the U.S Treasury may order repayment of the same. The Subrecipient shall remit the disallowed amount to the City within thirty (30) days of written notice of the disallowance. A. The Subrecipient agrees that funds determined by the City to be surplus upon completion of the Agreement will be subject to cancellation by the City. B. The Subrecipient aggress that upon expiration of this Agreement, the Subrecipient shall transfer to the City any ARPA AND/OR CDBG funds on hand at the time of the expiration and any accounts receivable attributable to the use of ARPA AND/OR CDBG funds. C. The City shall be relieved of any obligation for payments if funds allocated to the City cease to be available for any cause other than misfeasance of the City itself. City of Peariand, Texas Page 5 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement D. The City reserves the right to withhold payments pending timely delivery of program reports or documents as may be required under this agreement. ARTICLE 3- GENERAL CONDITIONS AND REQUIREMENTS S ECTION 1: NOTICES N otices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice. 1st Level 2nd Level 3rd Level Address City/City Joel Hardy Ron Fraser Trent Epperson 3519 Liberty Drive Pearland, TX 77581 S ECTION 2: GENERAL CONDITIONS A. General Compliance Subrecipient Dawn Lawless Dawn Lawless Dawn Lawless 2549 Roy Road Pearland, TX 77581 The Subrecipient agrees to comply with the requirements of Title 2 of the Code of Federal Regulations, Part 200 (Uniform Administrative Requirements). The Subrecipient also agrees to comply with all other applicable Federal, State, and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. The Subrecipient shall comply with all applicable Federal laws, regulations, and requirements and all provisions of this Agreement, which include compliance with the provisions of ARPA and/or CDBG and all rules, regulations, guidelines, and circulars promulgated by the various Federal departments, agencies, administrations, and commissions relating to the ARPA AND/OR CDBG Program. The applicable laws and regulations include, but are not limited to: a ■ ■ The Davis -Bacon Fair Labor Standards Act; The Contract Work Hours and Safety Standards Act of 1962; Copeland "Anti -Kickback" Act of 1934; Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA); ■ Title VI of the Civil Rights Act of 1964; Equal employment opportunity and minority business enterprise regulations established in 2 C.F.R. Part 200, Appendix 11, ¶ C; ■ Non-discrimination in employment, established by Executive Order 11246 (as amended by Executive Orders 11375 and 12086); Section 504 of the Rehabilitation Act of 1973 Uniform Federal Accessibility; The Architectural Barriers Act of 1968; ■ a City of Pearland, Texas Page 6 of 23 ARPA OR CDBG 151 Amended Subrecipient Agreement • The Americans With Disabilities Act (ADA) of 1990; The Age Discrimination Act of 1975, as amended; N ational Environmental Policy of 1969 (42 USC 4321 et seq.), as amended; Historic Preservation Act of 1966, as amended, and related laws, and Executive Orders; Executive Order 11988, Floodplain Management, 1977 (42 FR 26951 et seq.); Flood Disaster Protection Act of 1973. S ection 601(d) — Social Security Act B. "Independent Contractor" N othing contained in this Agreement is intended, nor shall be construed in any manner to create or establish the relationship of employer/employee between the City and the Subrecipient. The S ubrecipient shall, at all times, remain an "independent contractor" with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance, as the Subrecipient is an independent contractor. C. Hold Harmless To the extent permitted by law, the Subrecipient agrees to hold harmless, defend and indemnify the City and its appointed and elected officers and employees from and against any and all liability, loss, costs, damage and expense, including costs and attorney fees in defense thereof because of any actions, claims, lawsuits, damages, charges and judgments whatsoever that arise out of the S ubrecipient's performance or nonperformance of the services or subject matter called for in this Agreement. D. Workers' Compensation The Subrecipient shall provide Workers' Compensation Insurance coverage for all of its employees involved in the performance of this Agreement. E. Insurance & Bonding The Subrecipient shall carry sufficient insurance coverage to protect Agreement assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the City. The Subrecipient shall comply with the bonding and insurance requirements of 2 CFR 200.325 (bonding requirements). The certificates of insurance shall be provided to the City by the Subrecipient's insurance agent or carrier as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect. Insurance limits must be on each Certificate of Insurance. Each Certificate of Insurance shall be reviewed and approved by the City prior to commencement of this Agreement. No other form of certificate shall be used. The Subrecipient will not be relieved of any liability, claims, demands, or other obligations assumed by its failure to procure or maintain insurance, or its failure to procure or maintain insurance in sufficient amounts, durations, or types. Failure on the part of the Subrecipient to procure or maintain policies providing the required coverages, conditions and minimum limits will constitute a material breach of this Agreement, upon which the City may immediately terminate this contract. City of Pearland, Texas Page 7 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement F. Licensing The Subrecipient agrees to comply with and obtain at its own expense, if necessary, all applicable Federal, State, City or Municipal standards for licensing, certifications and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in this Agreement to assure quality of services. In the event of an investigation or suspension regarding any Subrecipient license related to the services for which the City is providing funding under this Agreement, the City may terminate this Agreement and withhold further Agreement funds. In addition, monies already received under this Agreement may be owed back to the City. G. Amendments The parties may amend this Agreement at any time provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of each organization, and approved by the City's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the City or Subrecipient from its obligations under this Agreement. The City may, in its discretion, amend this Agreement to conform with Federal, State, or local governmental guidelines, policies or available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both City and Subrecipient. H. Failure to Perform In the event of a failure by the Subrecipient to comply with any terms or conditions of this Agreement or to provide in any manner activities or other performance as agreed herein, the City reserves the right to temporarily withhold all or any part of payment pending correction of the deficiency, suspend all or part of the Agreement, or prohibit the Subrecipient from incurring additional obligation of funds until the City is satisfied that corrective action has been taken or completed. The option to withhold funds is in addition to, and not in lieu of the City's right to suspend or terminate this Agreement. The City may consider performance under this Agreement when considering future awards. I. Suspension or Termination The City may pursue such remedies as are available to it in accordance with 2 CFR Part 200, Appendix II, ¶ A, including but not limited to suspension or termination of this Agreement, if the Subrecipient materially fails to comply with any terms or conditions of this Agreement, which include, but are not limited to, the following: A. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and ARPA AND/OR CDBG guidelines, policies or directives as may become applicable at any time; B. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement; C. Ineffective or improper use of funds provided under this Agreement; City of Pearland, Texas Page 8 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement D. Submission by the Subrecipient to the City reports that are incorrect or incomplete in any material respect; or E. Failure to take satisfactory corrective action as directed by the City. In accordance with 2 C.F.R. Part 200, Appendix II, ¶ B, this Agreement may also be terminated for convenience by either the City or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. If, in the case of a partial termination, however, the City determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the City may terminate the award in its entirety. In the event that funding from the Federal government is withdrawn, reduced, or limited in any way after the effective date of this Agreement but prior to its normal completion, the City may summarily terminate this Agreement as to the funds reduced or limited, notwithstanding any other termination provisions of this agreement. Termination under this Section shall be effective upon receipt of written notice. In the case of a suspension or termination, monies already received under this Agreement may be owed back to the City and the City may also declare the Subrecipient ineligible for further participation in the ARPA AND/OR CDBG program. SECTION 3: ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Subrecipient agrees to comply with 2 CFR 200.302 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient shall administer its program in conformance with 2 CFR 200, Subpart E, as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 2 CFR 200.333 that are pertinent to the activities to be funded under this Agreement. Such records shall include but are not be limited to: IR Records providing a full description of each activity undertaken; Records demonstrating that each activity undertaken meets one of the National Objectives of the ARPA AND/OR CDBG program; City of Pearland, Texas Page 9 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement ■ Records required to determine the eligibility of activities; ■ Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with ARPA AND/OR CDBG assistance; and ■ Records documenting compliance with the fair housing and equal opportunity components of the ARPA AND/OR CDBG program. 2. Retention The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of three (3) years following the official close-out and audit of the program. Notwithstanding the above, if there are litigation, claims, audits, negotiations, or other actions that involve any of the records cited and that have started before the expiration of the three (3) year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the three (3) year period, whichever occurs later. 3. Beneficiary Data If applicable, the Subrecipient shall maintain beneficiary data demonstrating eligibility for services provided. Such data shall include, but not be limited to, beneficiary name, address, qualification for participation in programs, demographic information and description of service provided. Such information shall be made available to City monitors or their designees for review upon request. 4. Disclosure The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the City's or Subrecipient's responsibilities with respect to services provided under this Agreement, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Audits & Inspections All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the City, HUD, the U.S. Treasury, and the Comptroller General of the United States or any of their authorized representatives at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within thirty (30) days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning Subrecipient audits and OMB Circular 4133. C. Citizen Participation City of Pearland, Texas Page 10 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement The Subrecipient will have processes in place (satisfaction surveys, Board representation, grievance procedures, etc.) which receive, document, and utilize the input from low-income persons potentially benefiting or affected by the program or project covered under this Agreement. D. Procurement 1. Compliance The Subrecipient shall comply with current City policy concerning the purchase of equipment and shall maintain inventory records of all non -expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the City upon termination of this Agreement. 2. OMB Standards The Uniform Guidance (2 CFR § 200) streamlines and consolidates government requirements for receiving and using federal awards so as to reduce administrative burden and improve outcomes. It was published in the Federal Register (79 Fed. Reg.) 3. Debarment and Suspension N on-federal entities and contractors are subject to the debarment and suspension regulations implementing Executive Order 12549, Debarment and Suspension (1986) and Executive Order 12689, Debarment and Suspension (1989) at 2 C.F.R. Part 180 and the Department of Homeland Security's regulations at 2 C.F.R. Part 3000 (Non -procurement Debarment and S uspension). These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs and activities. See 2 C.F.R. Part 200, Appendix II, ¶ H; and P rocurement Guidance for Recipients and Subrecipients Under 2 C.F.R. Part 200 (Uniform Rules): Supplement to the Public Assistance Procurement Disaster Assistance Team (PDAT) Field Manual Chapter IV, ¶ 6.d, and Appendix C, ¶ 2 [hereinafter PDAT Supplement]. A contract award must not be made to parties listed in the SAM Exclusions. SAM Exclusions is the list maintained by the General Services Administration that contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. SAM exclusions can be accessed at www.sam.gov. See 2 C.F.R. § 180.530; PDAT Supplement, Chapter IV, 116.d and Appendix C, ¶ 2. a. In general, an "excluded" party cannot receive a Federal grant award or a contract within the meaning of a "covered transaction," to include subawards and subcontracts. This includes parties that receive Federal funding indirectly, such as contractors to recipients and Subrecipients. The key to the exclusion is whether there is a "covered transaction," which is any non -procurement transaction (unless excepted) at either a "primary" or "secondary" tier. Although "covered transactions" do not include contracts awarded by the Federal Government for purposes of the non - procurement common rule and DHS's implementing regulations, it does include some contracts awarded by recipients and Subrecipient. City of Pearland, Texas Page 11 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement b. Specifically, a covered transaction includes the following contracts for goods or services: a. The contract is awarded by a recipient or Subrecipient in the amount of at least $25,000. b. The contract requires the approval of HUD, regardless of amount. c. The contract is for federally -required audit services. E. Travel No ARPA AND/OR CDBG funds may be used for travel. F. Real Property Real property acquisition standards are applicable to the scope of work and the non-federal entities' oversight and management of this Subrecipient Agreement, to the fullest extent compliant with property standards outlined in 2 CFR 200 — Subpart D. As regulated, the City and Subrecipient must comply with: 1. § 200.310 Insurance coverage. The non -Federal entity must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with Federal funds as provided to property owned by the non -Federal entity. Federally -owned property need not be insured unless required by the terms and conditions of the Federal award. 2. § 200.311 Real property. (a) Title. Subject to the requirements and conditions set forth in this section, title to real property acquired or improved under a Federal award will vest upon acquisition in the non -Federal entity. (b) Use. Except as otherwise provided by Federal statutes or by the Federal awarding agency, real property will be used for the originally authorized purpose as long as needed for that purpose, during which time the non -Federal entity must not dispose of or encumber its title or other interests. (c) Disposition. When real property is no longer needed for the originally authorized purpose, the non -Federal entity must obtain disposition instructions from the Federal awarding agency or pass -through entity. The instructions must provide for one of the following alternatives: (1) Retain title after compensating the Federal awarding agency. The amount paid to the Federal awarding agency will be computed by applying the Federal awarding agency's percentage of participation in the cost of the original purchase (and costs of any improvements) to the fair market value of the property. However, in those situations where the non -Federal entity is disposing of real property acquired or improved with a Federal award and acquiring replacement real property under the same Federal award, the net proceeds from the disposition may be used as an offset to the cost of the replacement property. City of Pearland, Texas Page 12 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement (2) Sell the property and compensate the Federal awarding agency. The amount due to the Federal awarding agency will be calculated by applying the Federal awarding agency's percentage of participation in the cost of the original purchase (and cost of any improvements) to the proceeds of the sale after deduction of any actual and reasonable selling and fixing -up expenses. If the Federal award has not been closed out, the net proceeds from sale may be offset against the original cost of the property. When the non -Federal entity is directed to sell property, sales procedures must be followed that provide for competition to the extent practicable and result in the highest possible return. (3) Transfer title to the Federal awarding agency or to a third party designated/approved by the Federal awarding agency. The non -Federal entity is entitled to be paid an amount calculated by applying the non -Federal entity's percentage of participation in the purchase of the real property (and cost of any improvements) to the current fair market value of the property. 3. § 200.316 Property trust relationship. Real property, equipment, and intangible property, that are acquired or improved with a Federal award must be held in trust by the non -Federal entity as trustee for the beneficiaries of the project or program under which the property was acquired or improved. The Federal awarding agency may require the non -Federal entity to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with a Federal award and that use and disposition conditions apply to the property. 4. Liens The City shall place two (2) liens on the applicable real property subject to this Subrecipient Agreement, both to be filed in the local court of record and jurisdiction in Brazoria County: (a) 1st lien in the amount of $537,930.00 upon the entire real property located at 2549 Roy Road in Pearland TX, 77581, subject to this Subrecipient Agreement, which shall not be removed until such time that the attached Lien Amortization Schedule -- 1St Lien (Attachment A) demonstrates that the property has reached its amortized depreciation of $00.00. The 1St lien shall remain in effect for a period of time no less than 15 years, OR until such time the Subrecipient has received and complied with instructions from the City as to disposition of the real property, as received from the federal government. (b) 2nd lien in the amount of the actual construction costs associated with the HUD CDBG portion of the funded project (Activity 2), in the estimated amount of $235,695.00, upon the entire real property located at 2549 Roy Road in Pearland TX, 77581, subject to this Subrecipient Agreement, which shall not be removed until such time that the attached Lien Amortization Schedule -- 2nd Lien (Attachment B) demonstrates that the property has reached its amortized depreciation of $00.00. The 2nd lien shall remain in effect for a period of time no less than 5 years, OR until such time the Subrecipient has received and complied with instructions from the City as to disposition of the real property, as received from the federal government. City of Pearland, Texas Page 13 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement SECTION 4: PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. General Compliance The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086. 2. Nondiscrimination The Subrecipient agrees to comply with the nondiscrimination in employment and contracting o pportunities laws in 2 CFR 3187.12. These applicable nondiscrimination provisions stipulate that no person in the United States shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination u nder any program or activity funded in whole or in part pursuant to agreement. Additionally, the Subrecipient shall not, on the grounds of race, color, sex/gender, sexual o rientation, familial status, religion, national origin, creed, ancestry, marital status, age or disability or handicap: A. Deny a qualified individual any facilities, financial aid, services, or other benefits provided under this Agreement; B. Provide any facilities, financial aid, services or other benefits which are different, or are provided in a different manner, from those provided to others under this Agreement; C. Subject an individual to segregated or separate treatment in any facility, or in any matter if process related to receipt of any service or benefit under this Agreement; D. Restrict an individual's access to or enjoyment of any advantage or privilege enjoyed by others in connection with any service or benefit under this Agreement; E. Treat anyone differently from others in determining if they satisfy any admission, enrollment, eligibility, membership or other requirement or condition which the individual must meet to be provided a service or a benefit under this Agreement. F. Deny anyone an opportunity to participate in any program or activity as an employee which is different from that afforded others under this agreement. If assignment and/or subcontracting has been authorized in writing, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each contractor or subcontractor. The Subrecipient shall take such actions as may be required to ensure full compliance with the provisions, including sanction for n oncompliance. City of Pearland, Texas Page 14 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement 3. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352). In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 4. Section 504 The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The City shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. 5. Architectural Barriers Act/Americans with Disabilities Act The Subrecipient shall meet the requirements, where applicable, of the Architectural Barriers Act and the Americans with Disabilities Act. A building or facility designed, constructed, or altered with federal funds is subject to the requirements of the Architectural Barriers Act of 1968 (42 USC 4151-4157) and shall comply with the Uniform Federal Accessibility Standards. The Americans with Disabilities Act ("ADA') (42 USC 12131; 47 USC 155, 210, 218, and 255) requires that the design and construction of facilities for first occupancy after January 26, 1993 must include measures to make them readily accessible and usable by individuals with disabilities. The ADA further requires the removal of architectural barriers and communication barriers that are structural in nature in existing facilities, where such removal is readily achievable —that is, easily accomplishable and able to be carried out without much difficulty or expense. B Affirmative Action 1. Women- and Minority -Owned Businesses (W/MBE) The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women's business enterprises the maximum practicable opportunity to participate in the performance of this Agreement. As used in this Agreement, the terms "small business" means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro- Americans, Spanish-speaking, Spanish surnamed or Spanish -heritage Americans, Asian - Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. City of Pearland, Texas Page 15 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement 2. Access to Records The Subrecipient shall furnish and cause each of its own Subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the City, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 3. Notifications The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement The regulation at 41 C.F.R. § 60-1.3 defines a "federally assisted construction contract" as any agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the Government or borrowed on the credit of the Government pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the Government for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work. The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity and Affirmative Action employer. The Subrecipient shall comply with Executive Order 11246 as amended by Executive Order 12086 and the regulations issued pursuant thereto (41 CFR Chapter 60) and will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. The Subrecipient will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay, or other forms of compensation and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 5. Subcontract Provisions The Subrecipient will include the provisions of Section 5. A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own Subrecipients or subcontractors. City of Pearland, Texas Page 16 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities. The Byrd Anti -Lobbying Amendment, 31 U.S.C. § 1352 (as amended) is applicable to any and all Contractors who apply or bid for an award of $100,000 or more. Such Contractors shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non - Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 2. Labor Standards The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable federal, State and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Subrecipient agrees to comply with the Copeland Anti - Kick Back Act (18 U.S.C. 874 et seq.) and it's implementing regulations of the U.S. Department of Labor at 29 CFR Part 3. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the City for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the City in 2 CFR Part 200, Appendix II, ¶ D, pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 3. Drug -Free Workplace The Subrecipient will or will continue to provide a drug -free workplace by: A. Maintaining a Zero Tolerance Drug Policy; B. Posting in conspicuous places, available to employees and applicants for employment, a statement notifying employees that the unlawful manufacture, City of Pearland, Texas Page 17 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement sale, distribution, dispensation, possession, or use of a controlled substance or marijuana is prohibited in the Subrecipient's workplace and specifying the actions that will be taken against employees for violations of such prohibition; C. Stating in all solicitations or advertisements for employees or subcontractors placed by or on behalf of the Subrecipient that the Subrecipient maintains a drug - free workplace; D. Establishing an ongoing drug -free awareness program to inform employees about: ■ ■ ■ The dangers of drug abuse in the workplace; The Subrecipient's policy of maintaining a drug -free workplace; Any available drug counseling, rehabilitation, and employee assistance programs; and The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; E. Including the provisions of the foregoing clauses in all third -party contracts, subcontracts, and purchase orders that exceed ten thousand dollars ($10,000.00), so that the provisions will be binding upon each subcontractor or vendor. D. Conduct 1. Assignability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the City; provided, however, that claims for money due or to become due to the Subrecipient from the City under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. All terms and conditions of this Agreement shall apply to any approved subcontract or assignment related to the Agreement. 2. Subcontracts A. Approvals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the City prior to the execution of such agreement. B. Monitoring The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. City of Pearland, Texas Page 18 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement C. Content The Subrecipient shall cause all the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. D. Selection Process The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the City along with documentation concerning the selection process. 3. Hatch Act The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. 4. [Reserved] 5. Conflict of Interest The Subrecipient agrees to abide by the provisions of 2 CFR 200.112, which include, but are not limited to the following: A. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. B. No employee, officer, or agent of the Subrecipient shall participate in the selection, the award or the administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. C. No covered persons who exercise or have exercised any functions or responsibilities with respect to ARPA OR CDBG-assisted activities, or who are in a position to participate in a decision -making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the ARPA OR CDBG-assisted activity, or with respect to the proceeds from the ARPA OR CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a "covered person" includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the City, the Subrecipient, or any designated public agency. 6. Lobbying The Subrecipient hereby certifies that: City of Pearland, Texas Page 19 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement A. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and C. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all Subrecipients shall certify and disclose accordingly: D. Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 7. City Recognition The Subrecipient shall ensure recognition of the role of the City in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to the funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. 8. Copyright If this Agreement results in any copyrightable material or inventions, the City reserves the right to a royalty -free, non-exclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, the work or materials for governmental purposes. 9. Religious Activities The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 2 CFR 3474.15 such as worship, religious City of Pearland, Texas Page 20 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement instruction, or proselytization. In addition to, and not in substitution for, other provisions of this Agreement regarding the provisions of services utilizing ARPA AND/OR CDBG funds the Subrecipient agrees that, in connection with such services: A. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion; B. It will not discriminate against, limit, or give preference to, any person applying for such public services on the basis of religion; and C. It will provide no mandatory religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such services. SECTION 6: ENVIRONMENTAL ARPA AND/OR CDBG regulations require the preparation of a project Environmental Review Record (ERR) and environmental clearance before funds are expended or costs incurred. The overall governing legislation is the National Environmental Policy Act (NEPA). City staff will complete the ERR. The time required for completion of the ERR can vary from a week to a few months. If the initial Environmental Assessment determines that an Environmental Impact Statement (EIS) or a Biological Assessment (BA) is necessary, the Subrecipient will be required to make appropriate budget modifications to assure the costs of the EIS or BA are paid for from project funds. After completing the ERR, the City may publish a notice of a Finding of No Significant Environmental Impact (FONSI) in a local newspaper declaring the intent to request release of project funds. The City must also determine whether the project meets other applicable statutory and regulatory requirements which include by are not limited to the following: A. Air and Water The Subrecipient agrees to comply with the following requirements insofar as they apply to the performance of this Agreement: ■ Clean Air Act, 42 U.S.C., 7401, et seq. and 2 C.F.R. Part 200, Appendix II, ¶ G; Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). City of Pearland, Texas Page 21 of 23 ARPA OR CDBG 1St Amended Subrecipient Agreement C. Historic Preservation The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Pad 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State's designated office for dealing with Historic Preservation, for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list. S ECTION 7: SEVERABILITY It is understood and agreed by the parties that if any part, term, or provision of this Agreement is held by the courts to be invalid, illegal or in conflict with any law, the remainder of the Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect. S ECTION 8: SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. S ECTION 9: WAIVER The City's failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the City to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. S ECTION 10: SUCCESSORS This Agreement shall be binding upon each of the parties, their assigns, purchasers, trustees, and successors. S ECTION 11: ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the City and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the City and the S ubrecipient with respect to this Agreement. S ECTION 12: NO THIRD -PARTY BENEFICIARIES Except as expressly provided otherwise, this Agreement is intended to be solely for the benefit of the parties and shall not otherwise be deemed to confer upon or give to any other person or third party any remedy, claim, cause or action or other right. S ECTION 13: GOVERNING LAW AND JURISDICTION This Agreement shall be construed in accordance with the laws of the State of Texas. In the event of any dispute over the Agreement's terms and conditions, the exclusive venue and jurisdiction for City of Pearland, Texas Page 22 of 23 ARPA OR CDBG 1st Amended Subrecipient Agreement any litigation arising thereunder shall be in the District Court of Brazoria County, and, if necessary for exclusive federal questions, the United States District Court for the District of Texas. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date of the most recent signatory. City: City of Pearland, Texas Federal I.D. # 74-6028909 Trent Epperson PRINTED .NAME — AUTHORIZED OFFICIAL yr AUTHORIZEIMFFICIAL SIGNATURE Subrecipient: Counseling Connections for Change Federal I.D. 20-8775478 Dawn Lawless PRINTED NAME - AUTHORIZED OFFICIAL AAA IsA AUTHOkD OF ICIAL SIGNATURE UEI# HUBRXKNJG3C8 Interim City Manager TITLE DATE UEI # U93DRADEVTK5 Executive Director TITLE DATE ;9:3C1 City of Pearland, Texas ARPA OR CDBG 1st Amended Subrecipient Agreement Page 23 of 23 FIELD NOTES Of A Survey Of A tract or parcel of land containing 4.86 acres of land, more or less, being the South °/z of Lot 21 of the Allison -Richey Gulf Coast Home Company Subdivision of Section 8, of the H. T. & B. R. R. Company Survey, Abstract Number 504, according to the map or plat thereof, recorded in Volume 2, Page 23 and 24, of the Plat Records of Brazoria County, Texas, said tract being more particularly described by metes and bounds as follows: BEGINNING at a 1 inch iron pipe found at the intersection of the South line of Lot 21 with the Easterly right-of-way line of Roy Road (60.00 feet wide); THENCE North, along said Easterly right-of-way line of Roy Road, a distance of 214.80 feet to a 1 inch iron pipe found for corner; THENCE East, a distance of 986.80 feet to a 8 inch wood post for corner; THENCE South, a distance of 214.80 feet to a 1 inch iron rod found for corner; THENCE West, a distance of 986.80 feet to the POINT OF BEGINNING of the herein described tract of land and containing 4.86 acres of land,_more or less. OF ...,.•.H T \NEBEB yrp 410�'�•_� �,t S P.O.B. Intersection Of The South Lot Line of Lot 21 & The East R.O.W. Line Of Roy Road V-2, >?-23 NORTH 214.80' (2s4) ROY ROAD (6O ROW) Found 1" Iron Pipe Found 1" Iron Pipe Tran, Thomas (99)057/967 (1).- 1 Story, Brick & Frame ()= 22'X 20.8' Metal Bldg. ()= 4'X 4' Frame Shed (On Blocks) = 4' Wire Fence = Covered Concrete = Covered Area 0). Wood Deck 2. Asphalt rn _O Go (D O o sT A TR ;m U) 4,866 Acres,--) (02)048/510 5e M. /" _ Zoo, Munoz, Patricio 03 O (05)010/621 v /sWouiH'Found 9"2 14,80 8" Wood Post Iron Rod @ Corner H.L.&P. 1142/806 H.L.&P. 1131 /845 /BUYER M. P. & C. P. LLC PROPERTY ADDRESS 2549 Roy Road DESCRIBEDPROPERIY A tract or parcel of land containing 4.86 acres of land, more or less, being the South 1/2 of Lot 21 of the Allison -Richey Gulf Coast Home Company Subdivision of Section 8, of the H. T, & B. R. R. Company survey, Abstract Number 504, according to the map or plat thereof, recorded in Volume 2, Page 23 and 24, of the Plat Records of Brazoria County, Texas, said tract being more particularly described by metes and bounds as attached. SUBJECT PROPERTY DOES Ille LIE IN A F.I.A. I do hereby caddy that this survey was this day DESIGNATED FLOOD ZONE AS PER FLOOD MAP NO: �q made on the ground of the properly legally described hereon, (or on the attached sheep, Is , .c ...• F• 2-,.,..> •correct, Q•,.••�,5 T .'.�• �' • yAu,..'6:0\:51)k, >r.anent and there are no encronchmen0 except as shown, and was done by me or under my supervision, and conforms to of exceeds the standards as adopted by the Texas Boardof 480067 480390 0030 19-22-99 are AE H. T. WE6ER Proleselanal Land Surveying, INVOICE# 32308 JOB# 6-303-06 q 4101 pr ec B'E # 2621001579 DATE 6-12-06 9 do fss ,, !• 0/K ^YO ••••.. •�•tif s () AF s�NOTES ,_et -ALL BEARINGS ARE PER PLAT, DEED, GRAS ASSUMED THIS SURVEY IS CERTIFIED FOR THIS TRANSACTION ONLY, IT IS NOT OFFICE TRANSFERABLE TOADtNONAL INSTITUTIONS OR SUBSEQUENT OWNERS. SURVEY Z I -SUBJECT TO ANY AND ALL RECORDED AND UNRECORDED EASEMENTS. A DRAFTING N C ■ -FLOOD INFORMATION IS BASED ON GRAPHIC PLOTTING ONLY, DUE TO INHERENT P.O. BOX 2543 • ALVIN, IX 77512 (281) 393-1382 • Fox (281) 393-1383 INACCURACIES ON FEMA MAPS, WE CANNOT ASSUME RESPONSIBILITY FOR EXACFINAL -�T ARE NO NATURAL DRAINAGE COURSES ON THIS PROPERTY. CHECK spec,,\ Zoomsate\ tS10 oa3O 040 U , 9A 4Z 8 -D, 510x6,° r tin 09-o 3iS tto .go' ura0 St a 'A, ..e ,7� F . 2.31 Dcoq .s- �--' — r — l -. — — - 2 to cIJ 45 a 1 3.30 ›T aft 4Z A nbo.zld jgorvegtR5v;ti o 1066E 44 5 4 6'- 135 I44 o 7.: AK Consulting Counseling0123 Ale No. Counseling0123 APPRAISAL OF LOCATED AT: 2549 Roy Rd Pearland, TX 77581-8604 FOR: Counseling Connections for Change, Inc. BORROWER: Counseling Connections for Change, Inc. AS OF: January 19, 2023 BY: Ashae L. Kubicek 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 AK Consulting Counseling0123 File No. Counseling0123 No AMC Counseling Connections for Change, Inc. File Number: Counseling0123 In accordance with your request, I have appraised the real property at: 2549 Roy Rd Pearland, TX 77581-8604 The purpose of this appraisal is to develop an opinion of the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the market value of the property as of January 19, 2023 is: $540,000 Five Hundred Forty Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, limiting conditions and appropriate certifications. Ashae L. Kubicek 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 Appraisal Report Uniform Residential Appraisal Report Counseling0123 File No. Counseling0123 The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property. Property Address 2549 Roy Rd aty Pearland State TX ZpCode 77581-8604 Borrovver Counseling Connections for Change, Inc. O tier of Public Record James D & Michelle A Purdom County Brazoria Legal Description A0504 H T & B R R Tract 21 S/2 Acres 5.00 Primary Site Assessor's Parcel # 0504-0036-000 Tax Year 2022 RE. Taxes $ 12,940 Neighborhood Name Pearland Map Reference 615F Census Tract 6605.00 Oeapant O Owner 0 Tenant O Vacant Special Assassne,rts $ 0 Q PUD HOA$ 0 O per year O per month Property Rights Appraised OX Fee Simple O Leasehold O Other (describe) Assignment Type O Purchase Transaction O Refinance Transaction 0 Other (describe) Market Value Lender/Qient Counseling Connections for Change, Inc. Address Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? O Yes OX No Report data source(s) used, offering price(s), and date(s). CAD/HARMLS Odid O did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. Contract Rice $ Is there any financial assistance (loan charges, sale concessions, gift or dovmnpayrrent assistance, etc.) to be paid by any party on behalf of the borrower? O Yes O No If Yes, report the total dollar amount and describe the items to be paid. Date of Contract Is the property seller the owner of public record? O Yes O No Data Source(s) NEIGHBORHOOD Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics One -Unit Housing Trends One -Unit Housing Present Land Use % Location O Urban 0 Suburban ❑ Rural Built -Up O Over 75% 0 25-75% O Under 25% Growth O Rapid 0 Stable O Slow Neighborhood Boundaries Neighborhood is bound on the east by Highway 35, west by 1-45, north by Beltway 8 and south by F.M. 528. (See Attachment) Neighborhood Description The subject neighborhood by definition is the subjects legal subdivision and/or the marketing area of the subject property depending on the availability of recent comparable data. Property Values O Increasing 0 Stable O Dedining Demand/Supply O Shortage (I) In Balance O Over Supply Marketing Time O Under 3 mths 0 3-6 moths O Over 6 nths PRICE AGE $(000) (Yrs) 55 Low 0 1,700 High 67 450 Pred. 10 Cne-Unit 90% % 2-4 Unit 0% % Multi-Farrily 2% % Corrrrerdal 4% % Other Vacan 4 Market Conditions (including support for the above conclusions) Aee Attached Addendum Dimensions See Attached Addm. Area 5.00 ac Specific Zoning aassification 0032 Zoning Description No Zoning zoning Compliance O Legal O Legal Nonconfonring (Grandfathered Use) OX No Zoning O Illegal (describe) See Attached Is the highest and best use of the subject property as irrproved (or as proposed per plans and specifications) the present use? 0 Yes O No If Nb, describe. See Attached Addendum Shape Rectangular/Interior view N;Res; Utilities Public Other(describe) Public Other(describe) Off -site Improvements —Type Public Private Bectridty Gas OX O Public FEMA Special Flood Hazard Area O Yes OX No FEMA Flood Zone X FEMA Map # 48039C0040K FEMA Map Date 12/30/2020 Are the utilities and off -site improvements typical for the market area? 0 Yes O No If Nb, describe. Are there any adverse site conditions or external factors (easerrents, encroach its, environmental conditions, land i ens, etc.)? O Yes OX No If Yes, describe. SEE Survey, Surve was not made available to the a. •raiser Ox O Water Sanitary Sewer OX O Alley None Ox O Street Conc,Curbs Ox O O O GENERAL DESCRIPTION FOUNDATION EXTERIORDESCRIP7ION materials/condition INTERIOR materials/condition Units 0 One Li Cne with .. - . Unit # of Stories 2 Type O Det. O Aft. O S-Det./End Unit Existing O Proposed O Under Const. Design (Style) Traditional Year Built 1954 Effective Age (Yrs)10 Attic Drop Stair QFloor QFinished Appliances I J Refrigerator 10 Range/Oven I X J Dishwasher I X J Disposal (n J Mcrowave (n J Washer/Dryer Finished area above grade contains: 8 Rooms Additional features (special energyeffrdent items, etc.). Concrete walks, patio, and driveway, 6' wood fence, covered patio, wood blinds, crown molding, chair rails, raised ceilings. flcsaibe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). C3;No updates in the prior 15 years;The subject is considered to be in overall avaerage condition for the area and the floor plan appears adequate. Physical depreciation is indicated for age and normal wear and tear. No apparent external or functional inadequacies were observed that would affect marketability. ONone OStairs Q Scuttle OHeated 0 Concrete Slab ❑ Crawl OFull Basement O Partial Baserrent Basement Area Basement Finish 0 sq. ft. 0 Outside Entry/Exit Q Sump Purrp Evidence of O Infestation ODa Settlement Heating ies WA I-M8B I O Radiant OOther I Fuel Gas Coding 0 Central Air Conditioning Individual I O Other None Foundation Walls Concrete/Av Exterior Walls Brk/Fbd/Avg Roof Surface Comp Shgl/Avg Gutters & Downspouts Alum/Avg WindoddType SH ALum/Gd StormSash/Insulated None Screens Yes/Avg An e, cities Li WoodStove(s) #0 Flreplace(s) # 1 0 Fence W d 0 Patio/Deck Cncrt 0 Porch Cncrt 0 Pod Gunite QOther None Floors C.t,SV,Wd/Av Wails SR/Avg Trim/Finish Wood/Avg Bath Floor CT/Avg Bath Wainscot CT/Avg Car Storage O None QX Driveway # of Cars 2 Diveway Surface Cncrt QGarage # of Cars 0 0 Carport # of Cars 2 Att. O Det. Q Built-in Other (describe) 3 Bedrooms 0.2 Bath(s) 2,255 Square Feet of Gross Living Area Above Grade Are there any physical defidencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? O Yes OX No If Yes, describe. Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? 0 Yes O No If Nb, describe. Freddie Mac Form 70 March 2005 UAD Version &/2011 Produced using Aa so sere, &10.234.8727 wnw.adv eb.mm Pagel or 6 Fannie Mae Form 1004 Nardi am 1004_86LI D 12182015 Appraisal Report Uniform Residential Appraisal Report Counseling0123 File No. Counseling0123 There are 4 corrparable properties currently offered for sale in the subject neighborhood ranging in puce from $ 395,000 There are 33 comparable sales in the subject neighborhood within the past twelve nza iths ranging in sale price from $ 395,000 FEATURE SUBJECT 2549 Roy Rd Andress Pearland, TX 77581-8604 Proximity to Subject Sale Rice Sale Rice/Goss Uv. Area Data Source(s) Verification Source(s) VALUE ADJUSTMENTS $ 0.00 sq. ft. View Design (Style) Quality of Construction Actual Age Condition $ 228.42 sq. ft. Above Grade Room Count Gress Living Area45 Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck DESCRIPTION N;Res; Fee Simile 5.00 ac N;Res; DT1;Traditional Q4 69 C3 Total 8 0sf Bdnms 3 Baths 0.2 2,255 sq.ft. Average FWA/CAC Ceiling Fans 2cp2dw Porch, Patio Pool Description No Pool # of Fireplaces None Misc None Net Adjustment (Total) Adjusted Sale Rice of Conparables I QX did did not research the sale or transfer h story of the subject property and corrparable sales. If not, explain The subject property and comparable sales have not been listed for sale in the past 12 months. CON/PARABLE SALE NO. 1 3125 Harkey Rd Pearland, TX 77584 1.11 miles SE $ 485,000 $ 191.17 sq. ft. HARMLS#20045388;DOM 42 /CAD DESCRIPTION ArmLth Unknown;5000 s12/22;c12/22 N;Res; Fee Simile 3.00 ac N;Res; DT2;Traditional Q4 52 C3 Total Bdms Baths 9 4 0sf 3.0 2,537 sq.ft. Average FWA/CAC Ceiling Fans 2ga2cp2dw Porch, Patio No Pool None Shop o+ $ Net Adj. 9.8% Gloss Al. 31.5% +(-) $ Adjustment 0 0 -10,000 -12,700 -10,000 -20,000 47,300 $ 532,300 COMPARABLE SALE NO.2 1310 Stone Rd Pearland, TX 77581 2.10 miles NW to$ 449,900 $ 505,500 HARMLS#66055870;DOM 8 /CAD DESCRIPTION ArmLth Unknown;0 s06/22;c05/22 N;Res; Fee Simile 5.00 ac N;Res; DT1;Traditional Q4 38 C3 Total Bdnrs. Baths 9 4 0sf 3.0 2,213 sq. ft. Average FWA/CAC Ceiling Fans 3gd3dw Porch, Patio Pool 1 Fireplace None �+ 0- $ Net Adj. -12.5% Gpss Al. 12.5% +(-) $ Adjushrent 0 0 0 -3,100 -20,000 0 -10,000 -25,000 to$ 565,000 CON/PARABLE SALE NO.3 2742 Westchester Cir Pearland, TX 77584 0.51 miles SW $ 247.59 sq. ft. HARMLS#81240786;DOM 19 /CAD DESCRIPTION ArmLth Cash;0 s08/22;c07/22 N;Res; Fee Simile 1.03 ac N;Res; DT1;Traditional Q4 25 C2 Total Bdms Baths 8 3 0sf 2.0 2,181 sq.ft. Average FWA/CAC Ceiling Fans 2ga2dw Porch, Patio Pool -5,000 63,100 $ 442,400 1 Fireplace None o+ $ Net Adj. 10.3% Gloss Al. 45.3% $ 540,000 +(-) $ Adjustment 0 0 0 150,000 -4,400 -50,000 -5,000 0 -5,000 -25,000 -5,000 55,600 $ 595,600 My research Q did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Datasource(s) HAR MLS/BCAD My research Li did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Datasource(s) HAR MLS/BCAD Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3). ITEM Date of Prior Sale/Transfer Rice of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) 01/24/2023 Analysis of prior sale or transfer history of the subject property and comparat.>lesales The subject is not currently listed for sale, no I sting history for the prior 12 months, per the Houston MLS. There have been no sales in the last 36 months of the subject and no sales in the last 12 months of all comparable sales. The value for the subject is reasonably consistent with other new home sales and resales in the general area. SUBJECT COMPARABLE SALE NO. 1 COMPARABLE SALE NO.2 COMPARABLE SALE NO.3 HARMLS,CAD HARMLS,CAD 01/24/2023 HARMLS,CAD HARMLS,CAD 01/24/2023 01/24/2023 Sumrr,ryofSales co,parisonApproach. All sales were used as they were considered to represent the best available data. The data cited in the Sales Comparison Analysis is for known features considered relevant to estimate Market Value. The value of the subject is within the indicated range and appears adequate. Most emphasis was placed on sale 2 due to the least amount of net and gross adjustments. All sales are located in the immediate area of the subject and are considered to be reasonably similiar to the subject. See Attached Indicated Value by Sales Comparison Approach $ 540,000 Indicated Value by: Sales Comparison Approach $540, 000 Cost Approach (if developed) $ 547,243 Income Approach (if developed) $ 0 Most wei.ht •laced on the Sales Comparison Anal sis which is more indicative of Market Value under the willinbu er and seller conceit. The Cost A.. roach tends to set the u. per limit of value at this time. The Income Approach is not considered to be a..licable as (See Attachment) This appraisal is made OX "as is," Q subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, Qsubject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or Q subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser's certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ 540,000 as of 01/19/2023 , which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 70 March 2005 UAD Version 9/2011 Produced using AO sol:Mere, 800.234.8727 www.acimb.mm Page2d6 AK Consulting Fanrie Mae Form 1004 Mardi 2005 1004_Q9,ND 12182015 Appraisal Report Counseling0123 Uniform Residential Appraisal Report File No. Counseling0123 The "Extent of Appraisal Process" can also be referred to as "The Scope of the Appraisal." This appraisal was performed in accordance with the regulations developed by the "LFRA" as requirred by FIRREA. This report constitutes a summary appraisal report. A complete visual inspection is intended to mean a complete visual inspection of what is readily apparent without moving, removing, relocating, attempting access to restricted spaces, or otherwise doing an intrusive inspection of the subject property. APPRAISER HAS MADE A VISUAL INSPECTION OF WHAT IS APPARENT. THE APPRAISER HAS NOT MOVED, REMOVED, RELOCATED ANY PERSONAL PROPERTY TO ASCERTAIN A BETTER VIEW. THE APPRAISER HAS NOT TESTED ANY SYSTEM TO SEE THAT IT WORKS BEYOND TURNING IT ON AND OFF. THE APPRAISER IS NOT AN EXPERT IN PLUMBING, ELECTRICAL, HEATING AND AIR CONDITIONING. THE APPRAISER HAS REPORTED AND WILL BE RESPONSIBLE ONLY FOR WHAT WAS OBSERVEABLE AND APPARENT. THE APPRAISER IS NOT AN EXPERT IN ENVIRONMENTAL HAZARDS OR CONDITIONS AND IS NOT QUALIFIED TO COMMENT ON SUCH MATTERS. THE APPRAISER HAS NO EXPERTISE IN MATTERS RELATING TO STRUCTURAL, SOIL, OR OTHER ENGINEERING MATTERS AND CANNOT COMMENT ON SUCH MATTERS. Utilities were on and Functioning at time of inspection. A head and shoulders inspection was done of the roof and attic. ADDITIONAL COMMENTS COST APPROACH TO VALUE (not required by Fannie Mae) Provide adequate information for the lender/dient to replicate the below cost figures and calculations. Support for the opinion of site value (surrrnary of corrparable land sales or other rrethods for estimating site value) County tax records and/or recent comparable land sales were used to determine site value. COST APPROACH ESTIMATED O REPRODUCTICN OR QX REPLACEMENT COST NEW Source of cost data Marshall -Swift Residential Cost Handbook OPINION OF SITE VALUE = $ 283,500 Dwelling 2,255 Sq. Ft. @$ 130.00 $ 293,150 0 Quality rating from cost service Average Effective date of cost data 12/2022 Sq. Ft. @$ 0 Corrrrents on Cost Approach (gross living area calculations, depredation, etc.) Cost figures were derived through the "Marshall & Swift Cost Handbook". The site value is estimated by land sales in the area and by abstraction. The land to value ratio is considered to be typical for the area. Estimated effective economic life is 55+/ - years. Patio,Porch Garage/Carport Total Estimate of Cost -New Less 65 Physical Depredation $46,407 Depredated Cost of In piovements $ 255,243 "As -is" Value of Sue Inprovenents $ 8,500 0 Sq. Ft. @$ 25 $ Functional External 8,500 0 _ $ 301,650 _ $ ( 46,407) w 2 O U z PUD INFORMATION Estimated Remaining Econorric Life (HUD and VA only) 55 Years INDICATED VALUE BY COST APPROACH INCOME APPROACH TO VALUE (not required by Fannie Mae) = $ 547,243 Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ 0 Indicated Value by Income Approach Sunmary of Income Approach (including support for market rent and C PROJECT INFORMATION FOR PUDs (if applicable) Is the developer/builder in contrd of the Homeowners' Association (HOA)? O Yes O No Unit type(s) O Detached O Attached Provide the fd lowing infatuation for PUDs ONLY if the developer/builder is in contrd of the I- OA and the subject property is an attached dwelling unit. Legal name of project Total nunterof phacs Total nurrtxr of units Total number of units rented Total nut of units for sale Was the project created by the conversion of an existing building(s) into a PUD? O Yes O No If Yes, date of conversion. Does the project contain any multi -dwelling units? O Yes O No Data source(s) Are the units, carmon dements, and recreation facilities complete? Q Yes 0 No If No, describe the status of conplefion. Total nurrtxr of units sold Data source(s) Are the carryon dements leased to or by the Fbmeovvners' Association? O Yes O No If Yes, describe the rental tenrs and options. Describe cannon dements and recreational facilities. Freddie Mac F=170 March 2005 UAD Version &/2011 Produced using PO sdtvere, &10.234.8727 minmacimb.mm Page3or6 Fannie Mae Form 1004 arch 2005 1004_C5UAD 12182015 Appraisal Report Uniform Residential Appraisal Report Counseling0123 File No. Counseling0123 This report form is designed to report an appraisal of a one -unit property or a one -unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appraisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. Freddie Mac Form 70 March 2005 UAD Version &/2011 Produced using Aa sol:Mere, 800.234.8727 miw.admb.mm Page 4d6 Fanrie Noe Form 1004 Nardi 2005 1004_05,ND 12182015 Appraisal Report Uniform Residential Appraisal Report Counseling0123 File No. Counseling0123 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be built on the land. 9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 10. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. 11. I have knowledge and experience in appraising this type of property in this market area. 12. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it. 20. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). Freddie Mac Form 70 March 2005 UAD Version &/2011 Produced using Aa sol:Mere, &10.234.8727 wwN.adv eb.mm Page5c 6 Fanrie Noe Form 1004 Nmrch 2005 1004_05U4D 12182015 Appraisal Report Uniform Residential Appraisal Report Counseling0123 File No. Counseling0123 22. I am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or similar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub -contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER Signature Name Ashae L. Kubicek Jaz, L,/ Company Name AK Consulting Company Address 2260 Stevens Dr Pearland, TX 77581-8304 Telephone Number 713.269.2421 Email Address ashaekubicek@yahoo.com Date of Signature and Report 01/24/2023 Effective Date of Appraisal 01/19/2023 State Certification # 1337276 or State License # or Other (describe) State TX State # Expiration Date of Certification or License 08/31/2023 ADDRESS OF PROPERTY APPRAISED 2549 Roy Rd Pearland, TX 77581-8604 APPRAISED VALUE OF SUBJECT PROPERTY $ 540,000 LENDER/CLIENT Name No AMC Company Name Counseling Connections for Change, Inc. Company Address SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Company Name _ Company Address Telephone Number Email Address Date of Signature _ State Certification # or State License # _ State Expiration Date of Certification or License SUBJECT PROPERTY LI Did not inspect subject property LI Did inspect exterior of subject property from street Date of Inspection LI Did inspect interior and exterior of subject property Date of Inspection COMPARABLE SALES ['Did not inspect exterior of comparable sales from street ❑ Did inspect exterior of comparable sales from street Date of Inspection Email Address Freddie Mac Form 70 March 2005 UAD Version &/2011 Produced using Aa sal:Mere, 800.234.8727 wnw.admb.mm Page6d6 AK Consulting Fanrie Mae Form 1004 Nardi 2005 1004_05,ND 12182015 Appraisal Report Uniform Residential Appraisal Report Counseling0123 File No. Counseling0123 FEATURE SUBJECT COMPARABLE SALE NO.4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO.6 2549 Roy Rd Address Pearland, TX 77581-8604 2153 Michael Ln Pearland, TX 77581 633 Hillhouse Rd Pearland, TX 77584 ProxinlitytoSubject 0.78 miles NE 2.01 miles NW Sale Rice $ $ 430,000 $ 550,000 $ Sale Rrice/Gtas Liv. Area $ 0.00 sq. ft. $ 225.72 sq. ft. $ 341.19 sq. ft. $ sq. ft. Data Source(s) HARMLS#25772291;DOM 10 HARMLS#89970785;DOM 82 Verification Source(s) /CAD /CAD VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions ArmLth Unknown;0 0 0 Listing ;0 0 0 Date of Sale/Tine s07/22;c05/22 0 Active -44,000 Location N;Res; N;Res; N;Res; Leasehold/Feesirrple Fee Simple Fee Simple Fee Simple Site 5.00 ac 26123 sf 175,000 2.96 ac 100,000 View N;Res; N;Res; N;Res; Design (Style) DT1;Traditional DT1;Traditional DT1;Traditional Quality of Construction Q4 Q4 Q4 Actual ,age 69 51 0 64 0 Condition C3 C2 -50,000 C2 -50,000 Above Grade Room Count ©LivingArea45 Total Bdrrrs. Baths Total Bdrns. Baths Total Bdrrrs. Baths Total Bdrns. Baths 8 3 0.2 11 3 2.0 -5,000 8 3 2.1 -7,500 2,255 sq.ft. 1,905 sq.ft. 15,800 1,612 sq.ft. 28,900 sq.ft. Baserrent & Finished Roorrs Below Grade 0sf 0sf 0sf Functional Utility Average Average Average Heating/Cooling FWA/CAC FWA/CAC FWA/CAC Energy Efficient Items Ceiling Fans Ceiling Fans Ceiling Fans Garage/Carport 2cp2dw 4ga1gd1dw -20,000 4cp4dw -5,000 Porch/Patio/Deck Porch,Patio Porch,Patio Porch,Patio Pool Description No Pool No Pool No Pool # of Fireplaces None 1 Fireplace -5,000 None Misc None None Barn -20,000 v a0 a Net Adjustment (Total) U+ ❑- $ 110,800 ❑X + ❑ $ 2,400 + - ❑ El-- $ Adjusted Sale Price of Corrparables Net Adj. 25.8% OceaAdj. 63.0% $ 540,800 Net Adj. 0.4% OzssAl. 46.4% $ 552,400 Net Adj. % OceaAdj. % $ Q ITEM SUBJECT COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6 p Date of Prior Sale/Transfer 2 a ri Pce of Prior Sale/Transfer Data Source(s) HARMLS,CAD HARMLS,CAD HARMLS,CAD 8 _ Effective Date of Data Source(s) 01/24/2023 01/24/2023 01/24/2023 co w J SutnreryofSales CorrparisonApproach See Attachment a CO Freddie Mac Form 70 March 2005 LAD Version 9/2011 Produced using ACI sofMare. 800 234.8727 vwwiraciweb.com Fannie Mae Fan) 1004 March 2005 1004_05UAD 12182015 Appraisal Report Counseling0123 Uniform Appraisal Dataset Definitions File No. Counseling0123 Condition Ratings and Definitions C1 The improvements have been very recently constructed and have not previously been occupied. The entire structure and all components are new and the dwelling features no physical depredation.* Note: Newly constructed improvements that feature recyded materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100% new foundation and the recycled materials and the recycled components have been rehabilitated/re-manufactured into like -new condition. Recently constructed improvements that have not been previously occupied are not considered 'hew'' if they have any significant physical depreciation (Le., newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep). C2 The improvements feature no deferred maintenance, little or no physical depredation, and require no repairs. Virtually all building components are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced with components that meet current standards. Dwellings in this category either are alnust new or have been recently completely renovated and are similar in condition to new construction. Note: The improvements represent a relatively new property that is well maintained with no deferred maintenance and little or no physical depredation, or an older property that has bran recently completely renovated. C3 The improvements are well maintained and feature lirrited physical depredation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well maintained. Note: The improvement is in its first-cyde of replacing short-lived building components (appliances, floor coverings, M/AC, etc.) and is being wet/ maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of short-lived building components have been replaced but not to the level of a complete renovation. C4 The improvements feature some rn nor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building c r ponents/mrechanical systems and cosmetic repairs. All major building components have been adequately r maintained and are functionally adequate. Nate: The estimated effective age maybe dose to or equal to its actual age. It reflects a property in which some of the short-lived building components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy, however, they still function adequately. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained properly. C5 The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains useable and functional as a residence. Ike: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many of its short-lived building conpdrents are at the end of or have exceeded their physical life expectancy but remain functional. C6 The improvements have substantial damage or deferred maintenance with defidendes or defects that are severe enough to affect the safety, soundness, or structural integrity of the in t.nuvements. The improvements are in need of substantial repairs and rehabilitation, induding many or most major components. Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property with conditions severe enough to affect the safety, soundness, or stnfctural integrity of the improvements. Quality Ratings and Definitions Q1 Dwellings with this quality rating are usually unique structures that are individually designed by an architect for a spedfied user. Such residences typically are constructed from detailed architectural plans and specifications and feature an exceptionally high level of workmanship and exceptionally high-grade materials throughout the interior and exterior of the structure. The design features exceptionally high -quality exterior refinements and ornamentation, and exceptionally high -quality interior refinements. The workmanship, materials, and finishes throughout the dwelling are of exceptionally high quality. Q2 Dwellings with this quality rating are often custom designed for construction on an individual property owner's site. However, dwellings in this quality grade are also found in high -quality tract developments featuring residences constructed from individual plans or from highly modified or upgraded plans. The design features detailed, high -quality exterior ornamentation, high -quality interior refinements, and detail. The workmmnship, materials, and finishes throughout the dwelling are generally of high or very high quality. Q3 Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above -standard residential tract developments or on an individual property owner's site. The design indudes significant exterior ornamentation and interiors that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been upgraded from "stock" standards. Q4 Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans are utilized and the design indudes adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship, finish, and equipment are of stock or builder grade and may feature some upgrades. Q5 Dnellings with this quality rating feature economy of construction and basic functionality as main considerations. Such dwellings feature a plain design using readily available or basic floor plans featuring minimal fencetration and basic finishes with minimal exterior ornamentation and limited interior detail. These dwellings meet minimum building codes and are constructed with inexpensive, stock materials with limited refinements and upgrades. Q6 Dwellings with this quality rating are of basic quality and lower cost; some may not be suitable for year-round occupancy. Such dwellings are often built with simple plans or without plans, often utilizing the lowest quality building materials. Such dwellings are often built or expanded by persons who are professionally unskilled or possess only minimal construction skills. Electrical, plumbing, and other mechanical systems and equipment may be minimal or non-existent. Older dwellings may feature one or more substandard or non -conforming additions to the original structure. Definitions of Not Updated, Updated, and Remodeled Not Updated Little or no updating or modernization. This description includes, but is not limited to, new homes. Residential properties of fifteen years of age or less often reflect an original condition with no updating, if no major components have been replaced or updated. Those over fifteen years of age are also considered not updated if the appliances, fixtures, and finishes are predominantly dated. An area that is 'Not Updated' may still be well maintained and fully functional, and this rating does not necessarily imply deferred maintenance or physical /functional deterioration. Updated The area of the home has been modified to meet current market expectations. These modifications are limited in terms of both scope and cost. An updated area of the home should have an improved look and feel, or functional utility. Changes that constitute updates indude refurbishment and/or repladng components to meet existing market expectations. Updates do not indude significant alterations to the existing structure. Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/ or expansion. A remodeled area reflects fundamental changes that indude multiple alterations. These alterations may indude some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of square footage). This would indude a complete gutting and rebuild. Explanation of Bathroom Count The number- of full and half baths is reported by separating the two values by a period. The full bath is represented to the left of the period. The half bath count is reproocnted to the right of the period. Three-quarter baths are to be counted as a full bath in all cases. Quarter baths (baths that feature only toilet) are not to be induded in the bathroom count. UAD Version 9/2011 Produced using Aa software. 800.284.8727 vJnw.adweb.mm 1004_05,ND 12182015 Unifcml Appraisal Dataset Definitions Appraisal Report Uniform Appraisal Dataset Definitions Counseling0123 File No. Counseling0123 Abbreviations Used in Data Standardization Text Abbrev. ac Adjnic AdjPwr A Ami_th AT ba br B BsyRd cp Cash CtyStr Comm c Cony cv CrtOrd DOM DT dw Estate e FHA g ga gbi 9d GR GfCse Glfvw HR Ind Full Name Acres Adjacent to Park Adjacent to Power Lines Adverse Anus Length Sale Attached Structure Bathroom(s) Bedroom Beneficial wtsy Road Cat put Cash Qty Mew Skyline Mew City Street View Commercial Influence Contracted Date Conventional Covered Court Ordered Sale Days Co Market Detached Structure Driveway Estate Sale Expiration Date Federal Housing Authority Garage Garage - Attached Garage - Built-in Garage - Detached Garden Structure Golf Course Golf Course View High Rise Structure Industrial Appropriate Fields Area, Site Location Location Location & View Sale or Financing Conc ssions Design(Style) Basement & Finished Rooms Below Grade Basement & Finished Rooms Below Grade Location & View Location Garage/Carport Sale or Financing Conc ssions View View Location Date of Sale/Tme Sale or Financing Conc ssions Garage/Carport Sale or Financing Conc ssions Data Sources Design(Style) Garage/Carport Sale or Financing Conc ssions Date of Sale/Tme Sale or Financing Conc ssions Garage/Carport Garage/Carport Garage/Carport Garage/Carport Design(Style) Location View Design(Style) Location & View Abbrev. in Lndfl LtdSght Usting MR Mtn N NonArm op 0 0 Prk Pstri Pwrin PubTm rr Relo REO Res RT RH SD s Short sf sqm Unk VA veo wu WtrFr Wtr w Woods Full Name Interior Oily Stairs Landfill United Sight Usting Nid-Rise Structure Mountain View Neutral Non -Anus Length Sale Open Other Other Park Mew Pastoral View Power Lines Public Transportation Recreational (Rec) Room Relocation Sale REO Sale Residential Row or Townhouse Floral Housing - USDA Semi-detached Structure Settlement Date Short Sale Square Feet Square Meters Unknown Veterans Adrrinistration Walk Out Basement Walk Up Basement Water Frontage Water View Wtthdraen Date W(xrls View Appropriate Fields Basement & Finished Rooms Below Grade Location View Sale or Financing Conc ssions Design(Style) View Location & View Sale or Financing Conc ssions Garage/Carport Basement & Finished Rooms Below Grade Design(Style) View View View Location Basement & Finished Rooms Below Grade Sale or Financing Conc ssions Sale or Financing Conc ssions Location & View Design(Style) Sale or Financing Concxsions Design(Style) Date of Sale/Time Sale or Financing Conc ssions Area, Ste, Basement Area, Ste, Basement Date of Sale/Tme Sale or Financing Conc ssions Basement & Finished Rooms Below Grade Basement & Finished Rooms Below Grade Location View Date of Sale/Tme View Other Appraiser -Defined Abbreviations Abbrev. Full Name Appropriate Fields Abbrev. Full Name Appropriate Fields UAD Version &/2011 Produced using AO softere. &10.234.8727 wnw.admb.mm U ifcnn Appraisal Dataset Definitions 1C04_05,ND 12182015 ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. The greater Houston area does not incorporate "Zoning", into property usage. Property usage is determined by "Deed Restrictions", which are determined by each neighborhood or subdivision. Cost figures were derived through the "Marshall & Swift Cost Handbook". The site value is estimated by land sales in the area and by abstraction. The land to value ratio is considered to be typical for the area. Document and/or Deed numbers were not available the the subject or comparable sales, as Texas is not an "Open Records" state. A plat map was not made available to the appraiser at the time of inspection. This appraisal has been signed with a digital signature as allowed by USPAP guidelines. A reasonable exposure time for the subject property is 180 days. SCOPE OF APPRAISAL: This appraisal report has been prepared in accordance with the Uniform Standards of Professional Appraisal Practices. The purpose of this appraisal is to estimate the current market of the subject property as of the date of inspection. The purpose of the appraisal is to estimate market value of the subject property as defined herein. The function of the appraisal is to assist the lender in evaluating the subject property for lending purposes. This is a Federally related transaction. The appraisal process consists of various steps which will lead to a final value conclusion. These steps include a physical inspection of the subject, exterior inspection of the comparables, inspection of the subject neighborhood. The process continues with a thorough research and analysis of sales data in the subject's market area with emphasis placed on various units of comparability to the subject property. The Cost Data is taken from various sources such as the Marshall and Swift Cost Estimator, local builders and other reliable sources. The estimated site value is based on recent sales activity of comparably priced properties or in cases where there is insufficient data, the site value can be based upon the allocation, extraction, or land residual techniques. The collection of general and specific data is also researched and analyzed in this appraisal. The sales utilized in this report are felt to be the best available within a reasonable time period. The scope of this appraisal does not include litigation, mediation, or trail and deposition time or fees. In the case that this occurs, additional time and fees will be required and invoiced to the client or their representation. Neighborhood Boundaries Water and sewer service is provided by a water district. Police and fire protection is provided by Brazoria County. Garbage pick-up is by private company. Homes in the area consist of custom and tract built homes on typical sites. There is no public transportation in the general area which is typical for the suburban areas of Houston. However, there are Park N Ride facilities located reasonably nearby that provide express bus service to downtown Houston. Property compatibility, police and fire protection, general appearance of properties, appeal to market, protection from detrimental conditions and adequacy of utilities are considered average for the subject subdivision and for the general area. Neighborhood Market Conditions Overall market conditions are average. Market studies indicate values are stable to slightly increasing at this time. Marketing time is predominantly under 180 days, although some properties do take longer to market. Supply and demand appear to be in balance per MLS. Mortgage financing is currently available at competitive rates and terms for homes in the subject neighborhood. Significant seller concessions that would result in increased sale prices have not been noted in this area. Zoning Compliance Since the subject is located in a "no zoning" area it can be rebuilt "as is" in the event of a loss. Highest and Best Use The subject as improved represents highest and best use of the land. The existance or non-existence of recorded deed restrictions and/or zoning ordinances is identified in the Site section of the form. The appraiser has not reviewed CC&R's or ordinanaces and the market value estimate assumes they have no adverse impact on reasonable use and enjoyment of the property. The property use must represent a potential and permissible use within the confines of legal, physical, economic and sociological constraints of the site and the neighborhood. Most commonly, the current use of an improved single-family residential property is its Highest and Best Use. Addendum Page 1 of 3 ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Site Comments SEE Survey, Survey was not made available to the appraiser Additional Features The home has been completely remedelled including but not limited to the following: All sheetrock, cabinets, trim, flooring, toilets. sinks, bath tubs, counter tops, paint, light fixtures, plumbing fixtures, hardware, fence, landscaping, pavers, screened patio, tiling, exterior paint. Comments on Sales Comparison All comps are considered to be reasonably similar to the subject. All adjustments are based on the estimated contributory value of the improvements. Comps 1, 3, 4 and 5 are adjusted for site size. Comps 2 and 3 are adjsuted for age at $100/year. Comps 3, 4 and 5 are adjsuted for condition after reporting extensive recent updating. Comp 5 is a listing that is comparable to the subject and included to show market trends. This comp is adjusted at 8% for the difference in the market areas typcial range of 1.0% to 8.3% of listing to sales price difference. All other adjustements are evident. The indicated value for the subject property is greater than the indicated predominant value of the neighborhood, as the subject is one of the larger homes and is in the upper value range for the subdivision. The property is not an over -improvement for the area, and although the appraised value is higher than the predominant value, it does not jeopardize the position of the lender. Final Reconciliation properties of this type are not typically income producing. The cost approach has only been deveolped by the appraiser as an analysis to support their opinion of the property's market value. Use of this data, in whole or part, for other purposes is not intended by the appraier. Nothing set forth in the appariasal should be relied upon for the purpose of determining the amount or type of insurance coverage to be placed on the subject property. The appraiser assumes no liability for and does not guarantee that any insurble value estimate inferred from this report will result in the subject property being fully insured for any loss that may be sustained. Further, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than the effective date of this appraisal due to changing costs of labor and materials and due to changing building codes and governmental regulations and requirements. Conditions of Appraisal The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser. Additional Comments Comp photos are from one of three sources; appraisal files, picture taken by appraiser, or MLS, depending on most reliable and available access. In the appraiser opinion, a majority of the time the MLS pictures best represent the condiiton and appeal of the home at time of sale. Making MLS pictures a majority of the time the most reliable. In properites where access by the public is not granted, MLS pictures can be the only available representation. It is the appraisers opinion that comp photos taken at time or sale (MLS photos) are the best representation of the comp. All comps were viewed from street. Extra Comments THE PROPERTY HAS NOT SOLD IN THE LAST 3 YEARS. IT WAS NOT AFFECTED BY THE 2021 FLOODING OF IDA OR ANY OTHER 2021 DISASTER FLOODING OR DAMAGE. "No Conflict" I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in this transaction. I did not base, either partially or completely, my analysis and /or opinion of market value in this report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. I have not performed any services on the subject property in the last 3 years. ***NOTE*** As of the effective date, the short and long-term impact on the market from the COVID-19 virus is unknown; however, it is reasonable to assume that current restrictions in market activity due to the virus Addendum Page 2 of 3 ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. will extend marketing times at least 30 days beyond the current levels. This assumption has been taken into consideration with regards to the estimate of reasonable exposure time. At this time, the appraiser assumes that there is a delay in market activity, but not a significant long-term shift in demand or supply which would result in a change in market prices. These are considered to be extraordinary assumptions which, if proven false, could impact the opinions and conclusions expressed herein. ***NOTE*** ANSI Standard when measuring and reporting gross living area (GLA) and non-GLA areas of subject properties for appraisals requiring interior and exterior inspections was used in this appraisal. Above grade finished area is 2255 sf. The below grade unfinished area is 0 sf. In the sketch if the sf label is a whole number the decimal is removed. All sf labels are measured to the 1st decimal or inch figure. Addendum Page 3 of 3 Appraisal Report Market Conditions Addendum to the Appraisal Report Counseling0123 File No. Counseling0123 The purpose of this addendum is to provide the lender/dient with a dear and acaarate understanding of the market trends and conditions prevalent in the subject neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 2009. Property Address 2549 Roy Rd aty Pearland State TX ZpCode 77581-8604 Borrower Counseling Connections for Change, Inc. Instructions: The appraiser roust use the information required on this form as the bads for his/her condusions, and roust provide support for those condusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form The appraiser rust fill in all the infomtation to the extent it is available and reliable and mast provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser mast provide an explanation. It is recognized that not all data sources will be able to provide data for the shaded areas belay, if it is available, however, the appraiser mast indude the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings mast be properties that compete with the subjed property, detemoined by applying the criteria that would be used by a prospective buyer of the subject property. The appraiser rust explain any anomalies in the data, such as seasonal markets, new construction, foredosures, etc. Inventory Analysis Prior 7-12 Months Prior 4-6 Months current - 3 Months Overall Trend Total# ofCorparableSales (Settled) 24 7 2 Increasing X Stable Declining Absorption Rate (Total Sales/M 1hs) 4.00 2.33 0.67 Increasing X Stable Declining Total # of Comparable Active Listings 3 2 4 Dedining X Stable Increasing Months of Housing Supply (Total Listings/Ab.Rate) 0.75 0.86 6.00 Declining X Stable Increasing Median Sale & List Price, DOM, Sale/List % Prior 7-12 Months Prior4-6 Months Current - 3 Months Overall Trend Median Carparable Sale Price 421,500 415,000 467,500 • Increasing X Stable Declining Median Carparable Sales Days on Market 6 19 5 Declining X Stable • Increasing ' Median Comparable List Price 439 999 429 500 414 000 • Increasing X Stable • Declining Median Comparable Listings Days on Market 59 4 45 • Declining X Stable • Increasing Median Sale Price as %of List Dice 100.12% 98.36% 100.46% Increasing X Stable • Declining ' ' Seller -(developer, builder, etc.)paid financial assistance prevalent? Q Yes 0 No • Dedining X Stable • Increasing Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions increased from 3%to 5%, increasing use of buydowns, dosing costs, condo fees, options, etc.). HARMLS indicates there were 33 closed sales during the past 12 months and 6 of those sales contained seller concessions which is 18% of the total transactions in this market area. Prior Months 7-12: 24 Sales; 4 with concessions; 17% of sales for this period. 4-6: 7 Sales; 1 with concessions; 14% of sales for this period. 0-3: 2 Sales; 1 with concessions; 50% of sales for this period. The concessions ranged between $2,000 and $9,900. The median concession amount is $3,250. • Are foredosure sales (RE0 sales) a facto in the market? O Yes OX No If yes, explain (including the trends in listings and sales of foredosed properties). The data used in the grid above does not indicate there were any REO/Short sales or other distressed properties associated with the reported transactions. However, this is not a mandatory reporting field for agents and there may be some distressed sales that were not reported. It is beyond the scope of this assignment to confirm each sale used in the Market Conditions Report. ate data sources for aboveinforrratio,. HARMLS was the data source used to complete the Market Conditions Addendum. 1/24/2023 Sun trarize the above information as support for your condusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis of pending sales and/or expired and withdrawn listings, to formulate your condusions, provide both an explanation and support for your condusions. The area has been minimally affected by the current recession and slow -down in the economy. However, the overall uncertainty of the market has appeared to cause the Real Estate markets to slow. Based on the above indicated information, per MLS, there appears to be a stable to slightly decreasing market over the last year, however and overall stable market. Also, currently within the subject subdivision, there are a low number of listings. Marketing time is predominantly under 180 days, although some properties do take longer to market. Supply and demand appear to be in balance per MLS. Mortgage financing is currently available at competitive rates and terms for homes in the subject neighborhood. Terminated, expired, and withdrawn properties cannot be accurately analyzed without a time consuming survey of each agent involved. If the subject is a unit in a condominium or cooperative project , complete the following: N/A Project Name: Subject Project Data Prior 7-12 Months Prior 4-6 Months Current - 3 Months Overall Trend Total# ofConparableSales (Settled) • Increasing Stable R Dedining Absorption Rate (Total Sales/Months) • Increasing � Stable �Ui Declining Total# ofAdiveConparableListings • Dedining Stable • Increasing Months of Wit Supply (Total Listings/Ab. Rate) • Dedining • Stable • Increasing Are foredosure sales (RE0 sales) a fador in the project? Q Yes Q No If yes, indicate the nu rtk, of RE0 listings and explain the trends in istings and sales of foredosed properties. • • • • Z • U Sul n maize ize the above trends and address the i rrpad on the subject unit and project. i aCompany a APPRAISER ` SUPERVISORY APPRAISER (ONLY IF REQUIRED) 9 UJ. 4,...ke: 9� Si nature � Signature Name Ashae L. Kubicek Name Name AK Consulting Company Name Company Address 2260 Stevens Dr Company Address Pearland, TX 77581-8304 State License/Certification # 1337276 State TX State License/Certification Address # State Email Address ashaekubicek@yahoo.com Email Freddie Mac Form 71 March 2009 Produced using pa soM,ere, 800.234.8727 vimumadmb.mm Pagel c 1 Fannie Mae Form 1004MC March 2009 1801MC_20090%909 ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Market Analysis: Seller Concessions Comments Typical seller contributions/concessions for the immediate market area of the subject is considered to be between 0-6%, and are considered to affect the sales price. With the decline in the Sub -prime market, the elimination of the Gift Programs and more stringent loan guidelines, have all contributed to fewer seller concessions. While seller concessions are still available within the market, the overall number has declined from the high. Today the current market trend while down from the high is considered to be stable for concessions of any type. An appropriate adjustment will be made in the sales comparison grid if any inducements of sales prices are found, otherwise, no adverse influences were found. Addendum Page 1 of 1 DIMENSION LIST ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Qty: Pearland Case No.: Counseling0123 State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. GROSS BUILDING AREA (GBA) GROSS LIVING AREA (GLA) 2,255 2,255 Area(s) Area %of GLA %of GBA Living 2,255 100.00 Level 1 2,255 100.00 100.00 Level2 0 0.00 0.00 Level3 0 0.00 0.00 Other -70 -3.10 -3.10 GBA Basement ❑ Garage ❑ 462 Other ❑ 0 Area Measurements Area Type Measurements Factor Total Level 1 Level 2 Level 3 Other Bsmt. Garage 49.00 x 17.50 x 1.00 = 857.50 ❑X 00000 15.00 x 41.50 x 1.00 = 622.50 ❑X 00000 10.00 x 0.50 x 1.00 = 5.00 ❑X ❑ ❑ ❑ ❑ ❑ 27.50 x 28.00 x 1.00 = 770.00 ❑X 00000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 x x = 000000 Produced using Aa sol:Meere,11(10.234.8727 wnw.acimb.mm DIM 10072013 SUBJECT PROPERTY PHOTO ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. FRONT VIEW OF SUBJECT PROPERTY Appraised Date: January 19, 2023 Appraised Value: $ 540,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE INTERIOR PHOTOS Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Kitchen Comment: Living Area Description: Comment: Bathroom Description: Half Bath Comment: Produced ising,K7 softvare, 800.234.8727wwwad .eb.com IM3F1_B 10072013 BATHROOM PHOTOS Borraner: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Half Bath Comment: Comment: Comment: Produced using pa sol:Mere, 800.234.8727 wwwaciweb.cem INT3BATHR 06152012 INTERIOR PHOTOS Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 PropertyAddress:2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Bedroom Comment: Bedroom Comment: Bedroom Comment: Produced ising,K7 softvare, 800.234.8727wwwad .eb.c n INT3AR06152012 COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. COMPARABLE SALE #1 3125 Harkey Rd Pearland, TX 77584 Sale Date: s12/22;c12/22 Sale Price: $ 485,000 COMPARABLE SALE #2 1310 Stone Rd Pearland, TX 77581 Sale Date: s06/22;c05/22 Sale Price: $ 505,500 COMPARABLE SALE #3 2742 Westchester Cir Pearland, TX 77584 Sale Date: s08/22;c07/22 Sale Price: $ 540,000 COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. COMPARABLE SALE #4 2153 Michael Ln Pearland, TX 77581 Sale Date: s07/22;c05/22 Sale Price: $ 430,000 COMPARABLE SALE #5 633 Hillhouse Rd Pearland, TX 77584 Sale Date: Active Sale Price: $ 550,000 COMPARABLE SALE #6 Sale Date: Sale Price: $ Subject Photo Page Addendum Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Family Den Side of house Produced ising,K7 softvare, 800234.8727www.adeeb.com PFR305212013 Subject Photo Page Addendum Borrower Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counselin. Connections for Charlie, Inc. Side of house Additional street view Produced using NJ softvere. 800.234.8727 vwwadv eb.mm PFR3 05212013 FLOORPLAN SKETCH Borrower. Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Sketch 15.5ft 49ft Office 27.5ft Den Family .5 Bath Kitchen Bedroom .5 Bath 49ft Z1 v, u C L L ii Bedroom Bedroom Living ';',1 28ft 15ft lift Lining Area Asea Calculation First=bcr ;1_E5 ft' First Floor r 1.00 -2255 ft= • 49ftx 17.5ft x 1.00= 857.51= • 1511 41.5ttx 1.06= 622.5 ft= • 10ftx 0.5ftx 1.00= 5ft' Total Livina Area {rounded]: _ 55 ft' ti 27.5ftx aft x 1.00= 770 ft' 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 LOCATION MAP Borrower. Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. sr grnt4a+h`t 4, 1940 Air t Terminal Museum 9 um9 it G0-, A s4ou SOUTH ACRES / CRESTMONT PARK FGr=rr.Dr ()rem Or GREATER F,lmrc, MINNETEX HOBBY Airneds Genoa Rd AlEneda Genoa Rd AREA n a LI Fuqua 3t t Irbaf► Air u A Trampoline 9 oll:vay and Adventure Park - -1-6044- Comparable Sale 2 r li�Lro:r Trl ria6s trn 131D r .Sarre Comparable Sale 5 aj 633 Hitlbouse Rd local Stone Rd Pearland, TX 77581 2-i0 miles NW cfrcjr Cree* Pearland. TX 77584 2.01 miles NW ---- — - r Ili r 1.::-`, Brookside 7 :ia f 1• ri d EtW Comparable sale 4 2153 Michael Ln Subject Pearland. TX 77581 2549 Roy Rd 0.78 miles NE Pearland, TX 77581°�r -tatd Rd fE°=f� f7, -iiig 5:3 Ealadway St es Ranch nd 4:3. Comparable Sale 3 2742 Westchester Cur Pearland. TX 77584 0.51 miles SW ,"'': ft 1,75 - Comparable 3125 Harkey Pear 1e, i,11 miles .11 Sale 1 Rd 5T 77584 5E land l EWain.a.:.7r. � �`h. FlwR4 roeAl Cent nnial `° Park g 233 L. Ryan Acres wonlia• '' 0 c a Z .= [74X x ivrF Rear4and Rereatior� 9 ® Y ii 4 Center & Natatorium BaileyA4e Bail. Ave ro ijl,r4l E El al ..7 tote 121-2-1Sri Meenaks i Col a. ''5 735 z w F. 4 too Devasthanarn .. xl ix] 788 in ®' _l t• . Yom• 14 7 Google is K GI pM G7 Q map data 22023 Google 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 Appraiser License Borrower. Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Certified Residential TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING . CERTIFICATION OAR Appraiser: ASHAE LEE KUBICEK. License #: TX 1337276 R License Expires: 08/31/2023 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified Residential Real Estate Appraiser EL Chelsea Buchholtz For additional information or to the a complaint please contact TALCB Commissioner at www.takh.texas.gov. 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 E&O Borrower. Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. LLOYD'S REAL ESTATE APPRAISER ERRORS AND OMISSIONS INSURANCE THIS INSURANCE IS EFFECTED WITH CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON (NOT INCORPORATED) THIS POLICY PROVIDES CLAIMS MADE AND REPORTED COVERAGE, CLAIMS MUST FIRST BE MADE AGAINST THE INSURED DURING THE POLICY PERIOD AND MUST BE REPORTED IN WRITING TO THE UNDERWRITERS DURING THE POLICY PERIOD OR EXTENDED REPORTING PERIOD, IF EXERCISED, THE LIMIT OF LIABILITY SHALL BE REDUCED, AND MAY BE EXHAUSTED, BY DEFENSE COSTS PAYMENTS, IF THE LIMIT OF LIABILITY IS EXHAUSTED, THE UNDERWRITERS SHALL HAVE NO FURTHER UADILITY UNDER THE POLICY, INCLUDING LIABILITY FOR DEFENSE COSTS. DECLARATIONS Policy Number: 22REALPC-0398 Item 1, NAMED INSURED: Ashae L Kubicek dba AK Consulting Item 2. MAILING ADDRESS: 2200 Stevens Dr_ Pearland. TX 77581 Item 3. PERIOD OF INSURANCE: FROM; 08/15/2022 TO; 06/1512023 12;01AM STANDARD TIME AT THE ADDRESS SHOWN IN ITEM 2 ABOVE. Item 4. LIMIT OF LIABIIIY $ 1.000.000 Each "Claim" (Including Defense Costs) $ 1.000.000 Annual Aggregate tIncluding defense Costs' Item 5. DEDUCTIBLE: $ 1.500.00 Each "Claim" (Including Defense Costs) Item 6. PREMIUM: $ 2.025.00 Gross Premium $ 100.64 Surplus Lines Tax $ 1.56 Stamp Tax $ 50.00 Policy Fee $ $ 2.177.20 Total Premium Item 7. RETROACTIVE DATE; DB115/2022 Item B. NOTICE OF CLAIM TO: London Fischer LLP Attn: Ryan Turner 59 Maiden Lane, New York. NY 10038 Tel: 212-331-94121 Fax: 212-872.1030 Email: TargetproaLondonFisscher_com Item 9. Forms, Endorsements and Application to be made part of this Policy: See attached firms list ,m la, service of Suit: Upon Underwriters pursuant to Conoition XXI nay be made upon. New York O+ece d Lrayda Amara Inc , OA raey & Lardrrer LLP, 555 Caa crnie areal. Siff 1700, San Fmndaco, Ca 041 04-1 502 07120/2022 —; Date: thorixed Representative 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 Appraisal Report USPAP ADDENDUM Counseling0123 File No. Counseling0123 Borrower: Counseling Connections for Change, Inc. Property Address: 2549 Roy Rd Oty. Pearland County: Brazoria Lender: Counseling Connections for Change, Inc. State: TX Zip Code: 77581-8604 Reasonable Exposure Time My opinion of a reasonable exposure time for the subject property at the market value stated in this report is: 180 days See Attached Addendum Additional Certifications I have performed NO services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period irrrrediately preceding acceptance of this assignment. I HAVE performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the three-year period ii rn 1iately preceding acceptance of this assignment. Those services are described in the corrrnents below. Additional Comments APPRAISER: Signature: �''eMaZ- 4:719 Name: Ashae L. Kubicek Date Signed: 01/24/2023 State Certification #. 1337276 or State License #. or Other (describe): State #. State: TX Expiration Date of Certification or License: 08/31/2023 Effective Date of Appraisal: 01/19/2023 SUPERVISORY APPRAISER (only if required): Signature: Name: Date Signed: State Certification #. or State License #. State: Expiration Date of Certification or License: Supervisory Appraiser inspection of Subject Property: Did Not Exterior -only from street Interior and Exterior Produced using Aa sdMare, &10.234.8727 wnwadweb.mm USPAP 14NT04272015 ADDENDUM Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 City: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. Reasonable Exposure Time Comments Exposure period is estimated at 180 days. The "Extent of Appraisal Process" can also be referred to as "The Scope of the Appraisal." This appraisal was performed in accordance with the regulations developed by the "LFRA" as requirred by FIRREA. This report constitutes an appraisal report. A complete visual inspection is intended to mean a complete visual inspection of what is readily apparent without moving, removing, relocating, attempting access to restricted spaces, or otherwise doing an intrusive inspection of the subject property. APPRAISER HAS MADE A VISUAL INSPECTION OF WHAT IS APPARENT. THE APPRAISER HAS NOT MOVED, REMOVED, RELOCATED ANY PERSONAL PROPERTY TO ASCERTAIN A BETTER VIEW. THE APPRAISER HAS NOT TESTED ANY SYSTEM TO SEE THAT IT WORKS BEYOND TURNING IT ON AND OFF. THE APPRAISER IS NOT AN EXPERT IN PLUMBING, ELECTRICAL, HEATING AND AIR CONDITIONING. THE APPRAISER HAS REPORTED AND WILL BE RESPONSIBLE ONLY FOR WHAT WAS OBSERVEABLE AND APPARENT. THE APPRAISER IS NOT AN EXPERT IN ENVIRONMENTAL HAZARDS OR CONDITIONS AND IS NOT QUALIFIED TO COMMENT ON SUCH MATTERS. THE APPRAISER HAS NO EXPERTISE IN MATTERS RELATING TO STRUCTURAL, SOIL, OR OTHER ENGINEERING MATTERS AND CANNOT COMMENT ON SUCH MATTERS. Addendum Page 1 of 1 AERIAL MAP Borrower: Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. d. - I ,"- I i1E�' - - } }• '�'. rlr �r + :. .. i I } ill I , ... - iv ° S - -. �• 1D5 r ..-- 0-'1--1' +wrrr . 10r. x.1. .. - ,jJl .jF_. • _ _.F rte';� ` _ �r t 54�ti1 ,..01, ]'.�.�,.� Ir .. :. , T• -.,, � -~ r. .. + J J] Sub ec _ __ 2549Roy Rd ' • `r_I., 1 Pearland TX 77581 }= a; f:risw1 • tY7 } ! } } , r i.r •.� • 1, 4' Po'- INIr of ie- ^ t e Jr 4 $ �• •"1`:.-•�I ti' 5,1 -- � E{-- i t I', '.s :17s _ YY, R .. ":+' .-I 4.e S ` S• Iti s 'i ji,t1 w�r` •L° rp y ••,. h`zitf' r `• 'rkiL • �6 ". I.�. ' liwi.� 1+• 41 r 11 X. .p` •,! ` .,I It •�P t.,. 1 :;Jj .', ,i •.l.�� ' `;t, 1 , , ,[rY4'P. ;-Sr'y: 5;• - •l,' .... FFt 'C ti 105 w •� -•I , � We x __. Pe r:Iand ' - Dental Grotl �1 R t N ' s 105 - g4 1.g..agerp' C`12 23 ONES r Airbus; Houston-Ga#a'eston Area Council, Maxar Technologies, Texas General Lard Office, U.S, al Surrey 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 FLOOD MAP Borrower. Counseling Connections for Change, Inc. File No.: Counseling0123 Property Address: 2549 Roy Rd Case No.: Counseling0123 Qty: Pearland State: TX Zip: 77581-8604 Lender: Counseling Connections for Change, Inc. f ,I Ate.,. • ..' I 1 "116• t �+.�+ .. ..• '�.'#u v.M '4k _I!L':1 '1• (ir r _ y ''ii " � ,�: S • "+_'° ''� •,k' '� •y.d .. '" �'i` mil'-_ _ f '` �" �1.0,, � R ;�!+w Pr I • A :.M Y 'I,r'• �� '- + "_�1:'' .in:. -.. ".. .._� I .•' i . r . ' _ - t` a - I - : *.• •'t �'F'�. iZ :b ts� . a'�,,` :..i iv P. .a• - A :• ..,1!'..4'1[,1" � �� � •I `�=.. �,�. e',.q•r•*'.'d. a 111,1,,., M 4 I'yI � s - rr ..� `• Hw � '� 1!a�iF . r'. ud�x.5 ��. r��/�, r � 47 "��tt1 - - Q---- ,.'i -' Subject 2549 Roy RJ..,. r. .. -,,,'i;4' _ �,i-s•.". .s �` . r. .: ; Pearland, , ''h:. •mss° i_ �;.r ^� Per . ("i�i 171 wI5 ' ._rye. • ,`..i,i ... _ _r 4 1 .�. • .. . ;f.• r's",sq�•.'t O�.' A•� ` - `1�l - l� ! t ,s'y. 1 ;r. i�.� P. 441 a t 3 9 "N LW' r, 4 r.. r. 47 1.,_,.4 :y,Z.�7P �". .,Yr•r. r-' .ii _4,[," •l A6r7.. - ,2aa yi 8 �:71r a,L:. .b„ir!j •I —.''a r+.. a '4F01 1 r1 ' Y {. ', � n.I.tL:-.k.ir.1. ,. - �,.- •f• s-: r .1 . .. �. S- p5 + • 1A'i Fy�i T ci _ 1.. 'S , , .•'5 3 ',�•. : .� _ .►. - ys1.s�i• xYeR , FLOOD INFORMATION LEGEND Community: CITY OF PEARLAND A = FEMA Special Flood Hazard Area - High Risk Property is NOT in a FEMA Special Flood Hazard Area Map Number: 48039C0040K = Moderate and Minimal Risk Areas Panel: 48039C0040 Road View: Zone: X Map Date: 12-30-2020 L = Forest ■ Water FIPS: 48039 Source: FEMA DFIRM Sky Flood," No representations or warranties to any party concerning the content, accuracy or completeness of this flood report, including any warranty of merchantability or fitness for a particular purpose is implied or provided. Visual scaling factors differ between map layers and are separate from flood zone information at marker location. Igo liability is accepted to any third party for any use or misuse of this flood map o: its data. 2260 Stevens Dr., Pearland, TX 77581 713-269-2421 IMPORTANT NOTICE The attached title insurance commitment contains information which has been obtained or derived from records and information owned by Title Data, Inc. or one of its subsidiaries (collectively "Title Data"). Title Data owns and maintains land title plants for various Texas counties. Title Data created its title plants through the investment of extensive time, labor, skill and money. The information contained in the title plants is protected by federal copyright law and Texas common law on trade secrets and contract. Title Data has granted our company a license to use one or more of its title plants. Our company's right to access and use Title Data's title plants is governed by our contract with Title Data. Our contract with Title Data restricts who can receive and/or use a title insurance commitment which is based, in whole or in part, upon Title Data's records and information. Under the terms of our contract with Title Data, we are permitted to provide you with the attached title insurance commitment for limited use and distribution only. Specifically, you are sublicensed to deliver, exhibit, or furnish the attached title insurance commitment (or any copies thereof) ONLY to your bona fide employees and a third party who is playing a bona fide role in this proposed real estate transaction, including a lawyer, a lender, a surveyor, a real estate broker or agent, and the parties to this proposed transaction. For purposes of our agreement with Title Data, "deliver, exhibit, or furnish" includes, without limitation, copying this title insurance commitment (whether such copying be by means of a photocopier, facsimile machine, another electronic scanning device, or any other method of reproduction) and providing such copy to any third party. Your furnishing of the attached title insurance commitment to anyone not specifically enumerated above is not permitted by our contract with Title Data and constitutes a breach of our sublicense to you. Your furnishing of the attached title insurance commitment to anyone not specifically enumerated above is also a violation of federal copyright law and Texas common law. Therefore, as an express condition of us providing you with the attached title insurance commitment, you specifically agree to limit its uses to those set forth herein, and to provide a copy of this letter to any party to whom you deliver, exhibit, or furnish the attached title insurance commitment (or any copies thereof). In the event you are unable or unwilling to comply with these conditions, immediately return the attached title insurance commitment to our company, without reviewing, copying, or otherwise utilizing in any way the information contained therein. A COPY OF THIS LETTER MUST ACCOMPANY THE ATTACHED TITLE INSURANCE COMMITMENT AT ALL TIMES. ALL DOWNSTREAM RECIPIENTS MUST PROVIDE A COPY OF THIS LETTER TO ANY OTHER AUTHORIZED USERS OF THE ATTACHED TITLE INSURANCE COMMITMENT. File No. PW2395915 Commitment of Title Insurance (T-7) - Version 1/3/14 COMMITMENT FOR TITLE INSURANCE (T-7) ISSUED BY TEXAN TITLE INSU ANCE COMPANY We, TEXAN TITLE INSURANCE COMPANY, will issue our title insurance policy or policies (the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance with the requirements in Schedule C. Our Policy will be in the form approved by the Texas Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be additional charges such as recording fees, and expedited delivery expenses. This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to issue the Policy is our fault. Our liability and obligations to you are under the express terms of this Commitment and end when this Commitment expires. THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW. Countersigned by: Authorized Countersignature South Land Title, LLC Company Name TEXAN 1 TITLE INSURANCE GUlMPAN Y F Rra,1e.n e'sle.C. CONDITIONS AND STIPULATIONS Texan Title Insurance Company Patrick oyle, Pre • d: it 1. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment, that is not shown in Schedule B, you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred. 2. Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements or to acquire the interest in the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and Stipulations, and Exclusions. All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to it at 6710 Stewart Road, Suite 300, Galveston, Texas 77551. File No. PW2395915 Commitment of Tide Insurance (T-7) - Version 1/3/14 TEXAN TITLE INSURANCE COMPANY IMPORTANT INFORMATION FOR INFORMATION, OR TO MAKF A COMPLAINT CALL OUR TOLL -FREE TELE- PHONE NUMBER 1 -866 -55 -TEXAN ALSO YOU MAY CONTACT THE TEXAS DEPARTMENT OF INSURANCE AT 1-800-252-3439 to obtain information on: 1. filing a complaint against an insurance company or agent, 2. whether an insurance company or agent is licensed, 3. complaints received against an insurance company or agent. 4. policyholder rights, and 5. a list of consumer publications and services available through the Department. YOU MAY ALSO WRITE TO THE TEXAS DEPARTMENT OF INSURANCE P.O. BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO. (512) 490-1007 AVISO IMPORTANTE PARA INFORMACION, O PARA SOMETER UNA QUEJA LLAME AL NUMERO GRATIS 1 -866 -55 -TEXAN TAMBIEN PUEDE COMUNICARSE CON EL DEPARTAMENTO DE SEGUROS DE TEXAS AL 1-800-252-3439 para obtener informacion sobre: 1. como someter una queja en contra de una compania de seguros o agente de seguros, 2. si una compania de seguros o agente de seguros tiene licencia, 3. quejas recibidas en contra de una compania de seguros o agente de seguros, 4. los derechos del asegurado, y 5. una lista de publicaciones y servicios para consumidores disponibles a traves del Departamento. TAMBIEN PUEDE ESCRIBIR AL DEPARTAMENTO DE SEGUROS DE TEXAS P.O. BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO. (512) 490-1007 File No. PW2395915 Commitment of Tide Insurance (T-7) - Version 1/3/14 TEXAN TITLE INSURANCE COMPANY TEXAS TITLE INSURANCE INFORMATION Tide insurance insures you against loss resulting from certain risks to your tide. The commitment for Tide Insurance is the tide insurance company's promise to issue the title insurance policy. The commitment is a legal document. You should review it carefully to completely understand it before your closing date. El seguro de titulo le asegura en relacion a perdidas resultantes de ciertos riesgos que pueden afectar el titulo de su propiedad. El Compromiso para Seguro de Titulo es la promesa de la compania aseguradora de titulos de emitir la poliza de seguro de titulo. El Compromiso es un documento legal. Usted debe leerlo cuidadosamente y entenderlo completamente antes de la fecha para finalizar su transaccion. Your commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the title insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this Policy, nor the optional endorsements, ensure that the purchaser has tide to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied, or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your tide and your use of the land. When your Policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below. EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. - EXCLUSIONS are tide risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. - CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at 1 -866 -55 -TEXAN or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Depaitinent of Insurance by calling 1-800-252-3439. Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are: Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure File No. PW2395915 Commitment of Tide Insurance (T-7) - Version 1/3/14 you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. Allow the Company to add an exception to "rights of parties in possession". If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. File No. PW2395915 Commitment of Tide Insurance (T-7) - Version 1/3/14 COMMITMENT FOR TITLE INSURANCE T-7 ISSUED BY TEXAN TITLE INSURANCE COMPANY SCHEDULE A Effective Date: January 16, 2023, 8:00 am Commitment issued January 23, 2023, 8:00 am 1. The policy or policies to be issued are: a. OWNER'S POLICY OF TITLE INSURANCE (Form T-1) (Not applicable for improved one -to -four family residential real estate) Policy Amount: PROPOSED INSURED: b. TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE ONE -TO -FOUR FAMILY RESIDENCES (Form T -1R) Policy Amount: $537,930.00 PROPOSED INSURED: Counseling Connection for Change GF No. PW2395915 c. LOAN POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: PROPOSED INSURED: Proposed Borrower: d. TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T -2R) Policy Amount: PROPOSED INSURED: Proposed Borrower: e. LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13) Binder Amount: PROPOSED INSURED: Proposed Borrower: f. OTHER Policy Amount: PROPOSED INSURED: 2. The interest in the land covered by this Commitment is: Fee Simple 3. Record title to the land on the Effective Date appears to be vested in: M.P. & C.P., LLC, a Texas Limited Liabiity Company FORM T-7: Commitment for Title Insurance Page 1 4. Legal description of land: The South One -Half (1/2) of Lot Twenty -One (21), of the Allison -Richey Gulf Coast Home Company S/D of Section Eight (8), of the HTBRR Company Survey, Abstract Number 504 according to the map or plat thereof, as recorded in Volume 2, Pages 23 and 24, of the Plat Records of Brazoria County, Texas, recited to contain 5 acres and containing 4.866 acres exclusive of road and drainage easement, and being more particularly described by metes and bounds as follows: BEGINNING at a 1 inch iron pipe found at the intersection of the South Lot line of Lot 21 with the Easterly right of way line of Roy Road; (60.00 feet wide) THENCE North, along the said Easterly right of way line of Roy Road, a ditance of 214.80 feet to a 1 inch iron pipe found for corner; THENCE East, a distance of 986.80 feet to 8 inch wood post for corner; THENCE South, a distance of 214.80 feet to a 1 inch iron rod found for corner; THENCE West, a distance of 986.80 feet to the POINT OF BEGINNING of the hereinn described tract of land, and containing 4.86 acres of land, more or less. NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such area or quantity is correct, but is made only for informational and/or identification purposes and does not override item 2 of Schedule B hereof. COMMITMENT FOR TITLE INSURANCE T-7 ISSUED BY GF No. PW2395915 TEXAN TI TLE INSURANCE COMPANY SCHEDULE B EXCEPTIONS FROM COVERAGE In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorney's fees, and expenses resulting from: 1. The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception): ITEM 1 OF SCHEDULE "B" IS HEREBY DELETED IN ITS ENTIRETY. 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. 3. Homestead or community property or survivorship rights, if any of any spouse of any insured. (Applies to the Owner's Policy only.) 4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or c. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area. (Applies to the Owner's Policy only.) 5. Standby fees, taxes and assessments by any taxing authority for the year 2023, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Loan Policy of Title Insurance (T -2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year year 2023 and subsequent years.") 6. The terms and conditions of the documents creating your interest in the land. 7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Loan Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.) 8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Loan Policy (T-2) only.) 9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Loan Policy of Title Insurance (T -2R). (Applies to Texas Short Form Residential Loan Policy of Title Insurance (T -2R) only.) Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Loan Policy of Title FORM T-7: Commitment for Title Insurance Page 3 Continuation of Schedule B GF No. PW2395915 Insurance (T -2R). 10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception.): a. Rights of Parties in possession. (OWNER POLICY ONLY) b. Subject to any and all visible and/or apparent easements over, under or across subject property, which a survey or physical inspection may disclose. c. Any encroachment, encumbrance violation, variation or adverse circumstance affecting the title that would be disclosed by an accurate and complete land survey of the land. d. Any portion of the subject property lying within the boundaries of a public or private roadway, whether dedicated or not. e. All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants, exceptions or reservations of mineral interests that are not listed. f. This policy does not insure against loss sustained by the owner of the surface of said property through the exercise of the right of ingress and egress and/or any other right of privilege incident to the ownership of said mineral estate. (Owner's Policy) g. Rights of tenants, as tenants only, under existing lease agreements affecting the land. h. Subject to the ZONING ORDINANCES now in force in the City of Pearland, Texas. i. Subject property lies within the boundaries of Brazoria County Drainage District #4 - Pearland. (Owner's Policy Only) FORM T-7: Commitment for Title Insurance Page 4 COMMITMENT FOR TITLE INSURANCE T-7 ISSUED BY GF No. PW2395915 TEXAN TI TLE INSURANCE COMPANY SCHEDULE C Your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued: 1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record. 2. Satisfactory evidence must be provided that: a. no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A, b. all standby fees, taxes, assessments and charges against the property have been paid, c. all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, sub -contractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property, d. there is legal right of access to and from the land, e. (on a Loan Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage. 3. You must pay the seller or borrower the agreed amount for your property or interest. 4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment. 5. NOTE: Procedural Rule P-27 as provided for in Article 9.39A of the Texas Insurance Code requires that "Good Funds" be received and deposited before a Title Agent may disburse from its Trust Fund Account. 6. Financing Statement filed for record on August 15, 2006, under Brazoria County Clerk's File No. 2006048490, executed by and between M.P. & C.P., LLC, as Owner/Debtor, granting to COMERICA BANK, as Creditor/Secured Party, a security interest in fixtures located on the subject property. Same being additionally secured by a Continuation UCC Financing Statement Amendment filed March 31, 2011, recorded under Brazoria County Clerk's File No. 2011012810, and another Continuation UCC Financing Statement Amendment filed March 24, 2016, recorded under Brazoria County Clerk's File No. 2016013092, and another UCC Financing Statement Amendment filed March 19, 2021, recorded under Brazoria County Clerk's File No. 2021017102. 7. Subject property lies within the boundaries of Brazoria County Drainage District #4 (Pearland). REQUIREMENT: Pursuant to V.T.C.A. Water Code, Section 49.452 proper notice in statutory form must be given to the purchaser. 8. We are to be furnished with a SURVEY showing a plat and containing the correct metes and bounds description of the subject property made by a licensed public surveyor of the State of Texas suitable to this title company. When same is submitted, it is to be shown to the examiner for inspection and approval. FORM T-7: Commitment for Title Insurance Page 5 Continuation of Schedule C GF No. PW2395915 9. Title is vested into M.P. & C.P., LLC, a Texas Limited Liability Company, as shown on Schedule "A" hereof. Prior to closing, we must be furnished with a copy of the organizing document filed with the Secretary of State of the state in which the entity is organized and the additional documents described below. (a) The organizing document must contain the following, at a minimum: (i) Name of the registered agent and address of the registered office (ii) Duration of the entity, unless established by the laws of the state in which the entity is organized (iii) Initial managers (or members, if no managers) (b) Additional documents required: (i) Copy of the LLC operating agreement, regulations or similar document (if the managers or members executed such a document) (ii) Affidavit of the managers (or the members, if there are no managers) stipulating that there have been no amendments to the operating agreement (if one was executed) and stating who is authorized to act on behalf of the LLC (c) Satisfactory proof from the Secretary of State of the state in which the entity is organized that the entity is in good standing, which must be verified within five days of closing. 10. We must ascertain the nature of the Applicant Buyer, COUNSELING CONNECTION FOR CHANGE entity and require appropriate documents to support the instant transaction. 11. Proposed insured will be required to execute a waiver of inspection at the time of closing and an exception to "rights of parties in possession: will be contained in the owner's policy when issued; however, the proposed insured may request that this exception be omitted, in which case the company will require that an inspection be conducted by its agent, for which an inspection fee may be charge, and the company reserves the right to make additional exceptions in the policy to matters revealed by the inspections. 12. The following requirements must be met by settlement agent prior to policy issuance: a) A properly completed Affidavit as to Debts and Liens executed by Owner/Seller; b) Proof of payment of all taxes due and owing at the time of settlement and proof that the subject property qualified for each ad valorem tax exemption that was granted to it for the last 5 years; c) Request from Company an updated Commitment for Title Insurance within 5 days of anticipated closing date. 13. NOTE TO CLOSER: Title is vested by virtue of Special Warranty Deed dated August 7, 2006, filed for record under Brazoria County Clerk's File No(s). 2006049140. Prior Deed was recorded under Brazoria County Clerk's File No. 2002048510, along with an Affidavit of Heirship recorded under 2006049139. 14. NOTE TO CLOSER: The proposed purchasers/borrowers in the present transaction, COUNSELING CONNECTION FOR CHANGE, has ONLY been checked for the existence of TEXAS WORKFORCE COMMISSION LIENS, FEDERAL JUDGMENT LIENS IN FAVOR OF THE UNITED STATES OR AN AGENT THEREOF, U.S. BANKRUPTCY PROCEEDINGS AND DEPARTMENT OF JUSTICE LIENS. It has not been checked for other abstracts of judgment, federal tax liens or any other adverse matter, but additional checks may be performed upon request. In the event the purchasers/borrowers should undertake to convey, mortgage or otherwise hypothecate the interest being acquired in the present transaction, this file is to FORM T-7: Commitment for Title Insurance Page 6 Continuation of Schedule C GF No. PW2395915 be returned to the examination staff, along with a signed information form, for possible additional requirements. 15. NOTE: TD INFO Abstract 504, Tract 21B, Brazoria County, Texas NLL PC FAH14000731 (FT) Countersigned South Land Title, LLC By: _ Authorized Counter Signature FORM T-7: Commitment for Title Insurance Page 7 COMMITMENT FOR TITLE INSURANCE SCHEDULE D GF No. PW2395915 Effective Date: January 16, 2023, 8:00 am Pursuant to the requirements of Rule P-21, Basic Manual of Rules, Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made: 1. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment (a) The Title Insurance Company, Texan Title Insurance Company, is wholly owned by Texan Title Holdings, LLC. Individuals, partnerships, corporations, trusts or other entities owning ten percent (10%) or more of Texan Title Holdings, LLC: Patrick F. Doyle - 100% (b) The directors of Texan Title Insurance Company are Patrick F. Doyle, Jessica R. Carper, Jeffrey A. Adams and Russell Sugg (c) The president, executive or senior vice-president, secretary and treasurer of Texan Title Insurance Company: Patrick F. Doyle - Chief Executive Officer and President Jessica R. Carper - Senior Vice President and Treasurer Jeffrey A. Adams - General Counsel and Secretary J. Brandon Linscomb - Senior Vice President Russell Sugg - Executive Vice President 2. The issuing Title Insurance Agent, South Land Title, LLC a Texas Limited Liability Company, whose members owning or controlling, directly or indirectly, 1% or more of said company (or owning or controlling 10% or more of an entity that owns 1% or more of the Agent), and managers are listed below: Patrick F. Doyle, President Jessica R. Carper, Treasurer South Land Title, LLC is owned 100% by Texan Title Holdings, LLC which is owned 100% by Patrick F. Doyle. 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium is: Owner's Policy $3,140.00 Loan Policy $0.00 Endorsement Charges $0.00 Other $0.00 Total $3,140.00 Of this total amount: 15% will be paid to the policy issuing Title Insurance Company: 85% will be retained by the issuing Title Insurance Agent; and the remainder of the estimated premium will be paid to other parties as follows: Amount To Whom For Services " *The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance." FORM T-7: Commitment for Title Insurance Page 8 COMMITMENT FOR TITLE INSURANCE (Form T-7) TEXAS TITLE INSURANCE INFORMATION Title insurance insures you against loss resulting from certain risks to your title. The commitment for Title Insurance is the title insurance company's promise to issue the title insurance policy. The commitment is a legal document. You should review it carefully to completely understand it before your closing date. El seguro de titulo le asegura en relacion a perdidas resultantes de ciertos riesgos que pueden afectar el titulo de su propiedad. El Compromiso para Seguro de Titulo es la promesa de la compaiva aseguradora de titulos de emitir la poliza de seguro de titulo. El Compromiso es un documento legal. Usted debe leerlo cuidadosamente y entenderlo completamente antes de la fecha para finalizar su transaccion. Your Commitment of Title insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. - MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below. - EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. - EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. - CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. FORM T-7: Commitment for Title Insurance Page 9 Continuation of Texas Title Insurance Information GF No. PW2395915 You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy is issued, you may request changes in the policy. Some of the changes to consider are: - Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. - Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. FORM T-7: Commitment for Title Insurance Page 10 DELETION OF ARBITRATION PROVISION (Not applicable to the Texas Residential Owner's Policy) ARBITRATION is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Insurance Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the closing of your real estate transaction or by writing to the Company. The arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." SIGNATURE DATE FORM T-7: Commitment for Title Insurance Page 11 Texan Title Insurance Company Premium Amount Rate Rules Property Type County Code Liability at Reissue Rate 1 2 3 4 5 6 7 8 $3,140.00 1000 1 DISCLOSURE TO SELLER, BUYER/BORROWER ABOUT PATRICK F. DOYLE AND DOYLE LAW FIRM, PLLC I. REPRESENTATION OF INTERESTS In connection with the transaction you are closing today, a document of conveyance and/or curative documents have been prepared on behalf of Seller and Buyer/Borrower, and/or a loan has been obtained from a lending institution (or individual owner under an owner -finance) to finance all or part of the purchase price of Borrower's property, or to refinance an earlier loan made to Borrower, or which Borrower assumed, that is secured on the subject property. Seller, Buyer/Borrower or and/or lender is using the services of the law firm of DOYLE LAW FIRM, PLLC in the preparation of various legal instruments and loan documents in connection with this transaction, and you must pay for such services. By signing below, Borrower is acknowledging that DOYLE LAW FIRM, PLLC has not represented Borrower's interests or given Borrower any legal advice concerning the contract to sell and purchase the property, if applicable, or otherwise related to the property or to the legal instruments and loan documents executed in connection with the home loan transaction or the closing of the transaction itself. IL RELATIONSHIP OF TEXAS FIRST BANK, PATRICK F. DOYLE AND DOYLE LAW FIRM, PLLC DOYLE LAW FIRM, PLLC has an ongoing attorney -client relationship with Texas First Bank. Additionally, PATRICK F. DOYLE is the sole owner of the law firm of DOYLE LAW FIRM, PLLC, and serves as a director to the bank holding companies of Texas Independent Bancshares, Inc. and Texas First Banks. III. RELATIONSHIP OF TITLE COMPANY AND PATRICK F. DOYLE PATRICK F. DOYLE is the sole owner of Texan Title Holdings, LLC, which is the parent company of SOUTH LAND TITLE, LLC, located in Galveston, Crystal Beach, Texas City, League City, Pearland, Pasadena, Baytown, Park Ten IV. RELATIONSHIP OF TAX SERVICE PROVIDER AND PATRICK F. DOYLE PATRICK F. DOYLE is the sole owner of Realty Tax Search, Inc., which provides ad valorem tax searches, and collects, stores and disseminates such information regarding your transaction, and collects a standard fee for services related thereto. V. FREEDOM TO HIRE A LAWYER By signing below, each party hereto acknowledges that they have had the opportunity to consult independent counsel or hire an attorney to represent them regarding this transaction and its consequences. VI. OBLIGATION TO PAY LEGAL FEES By signing below, each party acknowledges that they must pay at the time of closing, or on demand, the legal fees of DOYLE LAW FIRM, PLLC as each party may have agreed to pay in the contract of sale and purchase or in the loan application or any other document they may have signed. The charges for the services of DOYLE LAW FIRM, PLLC are set forth on the closing statement or settlement statement furnished by the closing agent. You have not been charged any fee for preparation of any Truth -in -Lending Statement or RESPA Good Faith Estimate of closing costs. Attached hereto as Exhibit "A" and incorporated herein is PATRICK F. DOYLE 's Affiliated Business Arrangement Disclosure Statement, which sets forth DOYLE LAW FIRM, PLLC 's relationship to PATRICK F. DOYLE and Settlement Service Charge or range of charges. VII. DESCRIPTION OF LEGAL SERVICES In representing the lender's interest in this loan transaction, DOYLE LAW FIRM, PLLC provided a variety of services of a legal nature. DOYLE LAW FIRM, PLLC reviews as necessary the sales contract, survey, title report or commitment of title insurance, various documents of record such as restrictions and easements, and typically prepares such instruments as the Note, Deed of Trust, Affidavits and various miscellaneous documents required by the lender. {00028567.DOC} Furthermore, each party hereto acknowledges that DOYLE LAW FIRM, PLLC may have prepared certain documents upon the request of South Land Title, LLC, and has not in any manner, undertaken to assist or render legal advice to the undersigned, with respect to this transaction. The attorney preparing the documents represents South Land Title, LLC. Each party hereto has been provided with an opportunity to examine the title commitment issued by the title company in this transaction, and is satisfied with the contents of such commitment. Further, each party hereto agrees and understands that this transaction is not "closed" until all disbursements are made on behalf of all parties. In the event there are any additional charges for anyone furnishing services, requiring payoff, or by any taxing authority, each party hereto will pay such charges upon written request. The undersigned understand and agree that the parties may allocate payment of legal fees between themselves as they may agree. VIII. ACICNOWLEDGEMENT/WHAT SIGNING THIS MEANS By signing below, you acknowledge to the lender, DOYLE LAW FIRM, PLLC and PATRICK F. DOYLE that you have received a copy of this disclosure, that you have read all of the above statements, that you understand them, and that what has been stated in this disclosure is accurate and truthful. Furthermore, you acknowledge that you have read this disclosure form and understand that PATRICK F. DOYLE is referring you to purchase the settlement services as described herein on Exhibit "A" and may receive a financial or other benefits as the result of this referral. {00028567.DOC} EXHIBIT "A" AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT NOTICE FROM: PATRICK F. DOYLE GF#: PW2395915 This is to give you notice that PATRICK F. DOYLE has a business relationship with and ownership interest in REALTY TAX SEARCH, INC. and TEXAN TITLE HOLDINGS, LLC, which is the parent company of SOUTH LAND TITLE, LLC. PATRICK F. DOYLE, sole owner of the law firm of DOYLE LAW FIRM, PLLC, is also the sole owner of TEXAN TITLE HOLDINGS, LLC, which is the parent company of SOUTH LAND TITLE, LLC (real estate closing services), and REALTY TAX SEARCH, INC. (which provides ad valorem tax services and collects, stores and disseminates real estate information). Set forth below is the estimated charge or range of charges of the settlement services listed. You are NOT required to use the listed providers as a condition for closing your transaction of the subject property. THERE ARE OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES. Provider and Settlement Services Charge or Range of Charges: SOUTH LAND TITLE, LLC (premium fees as set by State Board of Insurance and vary depending on value of transaction and credits available to consumer) Realty Tax Search $81.19 ACKNOWLEDGEMENT I/we have read this disclosure form, and understand that Patrick F. Doyle is referring me/us to purchase the above -described settlement services and may receive a financial or other benefit as the result of this referral. {00028567.DOC} SOUTH LAND TITLE, LLC PRIVACY POLICY PURPOSE OF THIS NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a non-affiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of SOUTH LAND TITLE, LLC. We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms • Information about your transactions we secure from our files, or from our affiliates or others • Information we receive from a consumer reporting agency • Information that we receive from others involved in your transaction, such as the real estate agent or lender Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT OUR CUSTOMERS OR FORMER CUSTOMERS TO ANYONE, EXCEPT AS PERMITTED BY LAW. WE RESTRICT ACCESS TO NONPUBLIC PERSONAL INFORMATION ABOUT YOU TO THOSE EMPLOYEES WHO NEED TO KNOW THAT INFORMATION TO PROVIDE THE PRODUCTS OR SERVICES REQUESTED BY YOU OR YOUR LENDER. WE MAINTAIN PHYSICAL, ELECTRONIC, AND PROCEDURAL SAFEGUARDS THAT COMPLY WITH APPROPRIATE FEDERAL AND STATE REGULATIONS. NO PERSON, ENTITY OR FIRM WHO IS NOT A PARTY TO YOUR CONTRACT IS PERMITTED TO RECEIVE ANY INFORMATION FROM THIS COMPANY ON ANY MATTER RELATED TO YOUR CONTRACT. DOYLE LAW FIRM, PLLC PRIVACY POLICY NOTICE PURPOSE OF THIS NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of DOYLE LAW FIRM, PLLC We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms • Information about your transactions we secure from our files, or from our affiliates or others • Information we receive from a consumer reporting agency • Information that we receive from others involved in your transaction, such as the real estate agent or lender Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.