General Site Setting

1. SITE RECONNAISSANCE General Site Setting The property is located in the USGS Alief, TX Quad. Regionally groundwater flows in a southeasterly direction; however, locally, groundwater flow is in a northeasterly direction. The subject property is located approximately seventy feet above mean sea level. The depth to groundwater is approximately ten feet below ground surface. Exterior AND Interior Observations Petroleum Products There were no current indications of petroleum products locate on the property. Hazardous Materials No significant use of hazardous substances is known to occur on/at the property. Limited amounts of cleaning supplies, maintenance materials and paints are present, but are used in small quantities consistent with similar types of businesses. The storage of these materials appeared to be satisfactory. Drums or Containers There were no current indications of drums or containers located on the property. Underground Storage Tanks (UST’s)/Aboveground Storage Tanks (AST’s) The Texas Commission on Environmental Quality’s online database of underground (UST) and above ground (AST) was reviewed. No records of either USTs or ASTs were identified on the TCEQ’s Petroleum Storage Tanks Registration Database. Further, there is no indication that the property ever used heating oil as a heat source. Intermodal Shipping Containers There were no current indications of intermodal shipping containers at the property. Indications of Polychlorinated Biphenyls (PCB’s) PCB’s are associated with electrical transformers and substations. Some fluids contained in transformers (PCB-bearing) have been determined to be carcinogenic. The dielectric fluid in the transformers is a listed hazardous material. The electrical transformers on the subject property are owned by the property, not the local utility. Based on the date of construction, 1978/1979, it is possible that this equipment contains PCBs. Green Community Development, LLC

2. No manufacturer specifications or analytical data documenting the PCB content of this equipment was provided. No signs of leakage were observed. Because the transformers identified belong to the subject property, Green Community Development feels that they should be removed/replaced. Pits, Ponds & Lagoons No evidence of pits, ponds, and/or lagoons was noted on the property. Odors No significant odors were noted on the property. Stained Soil or Pavement No evidence of significantly stained soil or pavement was noted on the property. Pools of Liquid No pools of liquid were noted on the property. Stress Vegetation No evidence of stressed vegetation anticipated to be caused by contamination was noted on the property. Solid Waste Disposal No solid waste concerns were noted on the subject property. Trash is collected in dumpsters located throughout the property Medical/biological wastes/X-ray or other radioactive activities No medical or biological wastes were observed. No x-ray or other radioactive activities were observed or reported. Drains and Sumps No drains or sumps not connected to the city sewer were noted on the property. Septic Systems No septic systems are present on the property. Green Community Development, LLC

3. Storm/Waste Water Wastewater generated at the site is limited to sinks, toilets, etc. and is disposed of via the municipal sewer system. Storm water flows to municipal storm drains located in the paced and landscaped areas. Electromagnetic Fields High tension power lines were observed along the south and west sides of the subject property. In recent years, there has been concern that the electromagnetic fields (EMF) that radiate from power lines cause cancer. In 1995, the American Physical Society, the world’s largest association of physicists, released a statement saying it can find no evidence supporting the link to cancer. The society, which has studied power-cancer issues since 1989, initiated a study in 1994 to serve as the basis for a position on the dispute. The study’s author reviewed the existing literature of more that 1,000 papers and conducted interviews with specialists in the field. The society’s statement, which acknowledged research continues in the field, said existing reports and data thus far “shows no consistent, significant link between cancer and power line fields.” Furthermore, “the conjectures relating cancer to power line fields have not been substantiated.” Therefore, any additional study or action regarding the power lines is not recommended. Wetlands/Flood Plain No evidence of wetlands were noted on the subject property. The property is situated with three flood zones, Zone X un-shaded (areas outside of the 500 year floodplain), Zone X shaded (areas within the 500 year floodplain) and Zone AE (areas within the 100 year floodplain, base elevations determined). The Zone AE portions are limited to a narrow area along the street location. Wells No evidence of wells (dry wells, water, wells, irrigation wells, injection wells or abandoned wells) was noted on the subject property. Lead-Based Paint A lead-based paint survey was beyond the scope of this assessment. However, based on the date of construction, 1978/1979, it is possible that lead-based paint (LBP) exists on the property. Green Community Development, LLC

4. Given the potential presence of LBP at the property, the paint should be managed under an LBP Operations and Maintenance (O&M) Program. The objective of the O&M Program should be to monitor the condition of painted surfaces, to repair any areas of damaged or deteriorating paint, to place controls on the method of paint removal (e.g. no sanding or heat gun removal of LBP unless in a controlled environment), and to dispose of all removed LBP in a legal manner. In addition, it is recommended that federal, state, and local lead-based paint regulations be reviewed for compliance prior to any renovation or demolition activities. Green Community Development feels that the interior walls and all interior substances containing LBP should be removed completely in a legal manner. Interior reconstruction is vital for this property, to ensure a safe living environment with no lead-based paint. Potential Asbestos Containing Building Materials (ACBM’s) An asbestos survey was beyond the scope of this assessment. However, based on date of construction, 1978/1979, there is a possibility that asbestos containing building materials (ACBM’s) are located on the property. The property contained wallboard, joint compound, vinyl flooring and mastic. Given the potential presence of ACBM’s at the property, an Asbestos Operations and Maintenance (O&M) Program should be instituted until such time as renovation or demolition activities necessitate their removal. The objective of an O&M Program is to implement a practical management approach to controlling identified ACM within the property. The O & M Program is designed to cleanup existing contamination, minimize future fiber release by controlling disturbance of ACM, and monitor the condition of the ACM until it is removed. In addition, it is recommended that federal, state, and local asbestos regulations be reviewed for compliance prior to any renovation or demolition activities. NESHAP regulations require sampling potential ACBM prior to demolition or extensive renovation, regardless of the date of construction; therefore, if such activities are planned, it may be required to conduct a survey of the entire facility, or that portion slated for renovation or demolition, before initiating such destructive activities. That survey should include an assessment of all subject building materials, including those in areas which are normally inaccessible. Any material found to be ACBM should be handled in accordance with applicable regulations. Green Community Development would request a full ACBM survey to determine ACM’s presence. Following the completion and determination, if ACM’s were found, those materials would be replaced in accordance to regulations. Green Community Development, LLC

5. Radon The property is located in Radon Zone 3, which has a predicted average indoor screening level of less than 2 Pico curies per liter (pCi/L). The USEPA action level for dado is 4 pCi/L. Based on the low regional averages, radon is not considered a significant concern. Drinking Water Information pertaining to the source and the regulatory compliance of the drinking water supplied to the property was researched. The property receives its drinking water from the city. The city tests its water before it enters the distribution system. The water supplied to the property reportedly meets federal and state drinking water standards, including those for lead and copper. Microbial Contamination (Mold) A comprehensive mold survey was beyond the scope of this assessment. However, Building 54 and 55 have been mostly down and not maintained for some time and are severely deteriorated. Most of the down units exhibited water damage and were impacted with mold, apparently from water infiltration through open doors and broken windows and tenant neglect/abuse. In some of the other vacant units, small/limited areas impacted with mold in bathrooms, under some windows, behind dishwashers, on the vents and in the HVAC enclosures were noted. It appears that much of the noted impact is due to tenant neglect and poor housekeeping. Consistent with USEPA, New York City Department of Health (NYCDOH) and National Multi Housing Council (NMHC) guidelines, property management should promptly identify and repair or remediate the sources of the moisture infiltration/build up supporting the mold growth. Any damaged materials in these areas should be removed and replaced. Subsequent to addressing the moisture issue, a certified industrial hygienist/environmental firm should be retained to properly remediate the identified areas of mold in accordance with EPA, NYCDOH and NMHC guidelines. For those units with significant impact, in addition to the remediation of the affected areas, testing for mold after the remediation should be conducted. For those areas with limited impact, subsequent to addressing the moisture issue, the identified areas of mold should be properly cleaned and sanitized in accordance with EPA, NYCDOH, and NMHC guidelines. Likely this can be addressed with in house staff as part of unit make ready. Green Community Development, LLC

6. Given the moisture and/or mold issues identified at the subject property, it is recommended that a Moisture Minimization Plan be implemented at the property. The plan takes a proactive, preventative approach in order to minimize any moisture damage and/or mold impact by insuring the early identification and repair of potential problems. Green Community Development, LLC