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TENANT IMPACT REPORT VINEYARD MOBILE VILLAS January 2009 1. Purpose of Tenant Impact Report. This Tenant Impact Report "TIR" or "Tenant Impact Report") is being prepared pursuant to California Government Code 66427.5. The purpose of this TIR is to explain the protections afforded to those Resident Households' that elect not to purchase a condominium interest in Vineyard Mobile Villas "Park located at 3263 Vineyard Avenue, Pleasanton, State of California, 94566. All Resident Households will be afforded the opportunity to either (i) buy the space on which their mobilehome is situated, or (ii) continue to rent the space on which their mobilehome is situated. Further, if a Resident Household elects to continue to rent the space on which their mobilehome is situated, then the rent increases will be set in accordance with the provisions of California Government Code 66427.5. For purposes of this TIR, the term "mobilehome" shall have the same meaning as defined under California Civil Code which, among other things, includes a "manufactured home" as defined under California Health Safety Code 18007. 1.1 Change of Ownership Rather Than Change of Use. Whenever a mobilehome park is to be converted from a rental -only park to one where spaces/lots may be owned by the mobilehome park residents, the Subdivision Map Act, found in the California Government Code 66427.5, requires the entity which is converting the Park to file a report on the impact that the conversion to another use will have on residents of the mobilehome park. Some mobilehome parks are converted to new uses, so that they will not remain mobilehome parks. The impact from a conversion to another use means closure of the mobilehome park which necessitates the vacation of property by the residents. This is NOT what is occurring at the Park. The Park is not being closed and the Residents (as defined in Section 1.2) will not be asked to vacate the property, but rather, the Residents have available to them additional options that were not available to them before the conversion occurs. After the issuance and delivery of the final public report "Final Public Report") issued by the California Department of Real Estate "DRE the Resident Households will be able to either buy their Condominium Unit from the Park owner "Park Owner and participate in the operation of the Park through a homeowners' association "Homeowners' Association or continue to rent their individual spaces; provided, however, the first sale of spaces and a share in the common area and facilities in the Park will not 1 "Resident Household" or "Resident Households" means any person(s), entity, or group of person(s) who has a tenancy in the Park under a Rental Agreement or Lease (as defined under Section 2.1) on the date of the issuance and delivery of the Final Public Report. Please note that this definition does not mean the same as "Resident" or "Residents" as defined in Section 1.2 herein. 2 "Condominium Unit" means the airspace unit which is defined as 1 foot below grade and 40 feet above grade, with the lateral and horizontal planes demarked by the lot lines established on the ground [in other words, the space the Resident is currently occupying], plus 11208 fee simple ownership of the common area and facilities and one membership in the Homeowners' Association to be formed as part of the entitlement process. For those who elect to remain renters, this means that those households will continue to rent the same space they were renting prior to the conversion of the Park. [DMM:aa/1 S91 8 1_4.0O0051308/4640.001] 1