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87 Confidential Information of R4 Capital Funding LLC Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM R4 Capital Funding LLC Tax Exempt Bond Investment Standards v4.4 March 2022 n) Earthquake Insurance: A Level 1 due diligence seismic risk assessment for damageability, performed by a qualified engineer conforming to current ASTM standards, will be required for all Projects in seismic zones 3 and 4 and for any Projects located in the states of California, Oregon, and Washington. The study shall determine the Probable Maximum Loss (“PML”) assuming a 475-year return period event and 50 percent probability of non-exceedance, which shall be defined as the Scenario Expected Loss (“SEL”). R4 will decline investments in properties with an SEL of 30% or greater, using the above stated standard. Coverage must be obtained at 100% of the replacement cost, with a maximum deductible of 5%, for Projects in seismic zones 3 or 4 with PML results ranging from 20% through 29.99%. In addition, the General Partner will need to demonstrate that measures have been taken to mitigate potential loss to the Project both during the construction and the operational phases. o) Coinsurance is to be waived, or the policy shall contain an agreed amount endorsement acceptable to R4. p) Ordinance or Law insurance: Coverage is to be provided for: (i) Demolition (ii) Increased Cost of Construction (iii) Contingent Coverage for the Operation of Building Laws insuring the value of the undamaged portion of the premises (completed value). Ordinance and Law Coverage must include an “Increased Time to Rebuild” endorsement that extends business income and extra expense coverage to provide additional time to restore operations when delayed due to enforcement of building or zoning laws. q) Debris Removal: Insurance is to be covered for a limit of 10% of the value of the propertyloss r) Hail, windstorm, or hurricane: Coverage to apply subject to a maximum 5% deductible. Time element coverage is to be provided for a period of 12 months. s) Boiler and machinery: Coverage to apply to damage or loss arising from testing of central heating, ventilation, and cooling system (HVAC), and other portions of the Property, if the damage is the result of an explosion of steam boilers. t) Unscheduled location coverage: For temporary, offsite storage of building materials, fixtures, machinery & equipment, and appliances awaiting installation. u) Transit: Coverage for property that will be installed at the property, up to the replacement cost value for any one conveyance. v) Personal Property of Others: Coverage to be provided for property which the insured maybe liable. w) Mold: Coverage is to be provided for mold resulting from a covered cause of loss. x) Time Element coverage is to be extended to include: (i) Utilities Interruption covering all utilities including water, sewer, steam, and telecommunications and must include overhead transmission lines (ii) Civil Authority