(CANYON HILLS) 2006 SERIES A $20,570, FISCAL. February 25, Prepared by: Harris. & Associates 34 Executive Parkk (949)

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1 CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO (CANYON HILLS) SPECIAL TAX BONDS (IMPROVEMENT AREA B) 2006 SERIES A $20,570, Riverside County, California FISCAL YEAR ANNUAL CONTINUING DISCLOSURE REPORT February 25, Prepared by: Harris & Associates 34 Executive Parkk Irvine, CA (949)

2 Annual Continuing Disclosure Report FY TABLE OF CONTENTS TABLE OF CONTENTS Page No. SECTION I-Introduction... 1 SECTION II-Content of Annual Report... 2 Part A-Audited Financial Statements... 2 Part B-Reserve Fund... 2 Part C-Assessed Value... 2 Part D-Delinquent Parcels... 2 Part E-Certificates of Occupancy... 2 Part F-Land Ownership... 3 Part G-Status of Facilities... 3 Part H-Building Permits... 3 Part I-Funds Generated... 3 SECTION III-Reporting of Significant Events... 4 Part A-Reporting of Significant Events... 4 Appendix A -Audited Financial Statement... A-1 Appendix B -Delinquency Information... B-1 Appendix C -Continuing Disclosure Agreement... C-1 i

3 SECTION l INTRODUCTION SECTION I INTRODUCTION The purpose of this report is to provide information to the Electronic Municipal Market Access (EMMA) in order to comply with the provisions contained in the Continuing Disclosure Certificate (the Disclosure Certificate ) for the $20,570,000 Community Facilities District No (Canyon Hills) Special Tax Bonds (Improvement Area B) 2006 Series A. The Disclosure Certificate was executed and delivered by the City of Lake Elsinore(the Issuer ) for the benefit of the Bond Owners, and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12 (b)(5). 1

4 SECTION II CONTENT OF ANNUAL REPORT SECTION II CONTENT OF ANNUAL REPORT A. AUDITED FINANCIAL STATEMENTS Audited Financial Statements are not available at the time of writing of this report. The Audited Financial Statements will be disseminated to the EMMA under separate cover as soon as they become available. B. RESERVE FUND The balance in the Reserve Account held under the Fiscal Agent Agreement as of June 30, 2012 was $1,819, C. ASSESSED VALUE The total assessed valuation (per the Riverside County Assessor records) of all parcels currently subject to the Special Tax within the CFD, showing the total assessed valuation of all land and the total assessed valuation of all improvements within the CFD and distinguishing between the assessed value of developed property and undeveloped property is as follows: D. DELINQUENT PARCELS Table No. 1 Community Facilities District No (Canyon Hills) Improvement Area B Assessed Valuation Property Type Land Value Improvement Value Total Assessed Value Developed Property $ 41,078, $ 75,049, $ 116,128, Undeveloped Property $ 3,511, $ - $ 3,511, Total $ 44,589, $ 75,049, $ 119,639, Please refer to Appendix B for the delinquent parcels within Improvement Area B of the CFD. E. CERTIFICATES OF OCCUPANCY As of June 30, 2012 there were 7 certificates of occupancy issued by the City within Improvement Area B of the CFD and there have been no prepayments of the Special Tax with respect to the CFD for the prior fiscal year. 2

5 SECTION II CONTENT OF ANNUAL REPORT F. LAND OWNERSHIP Listed in the following table is the summary listing property owners responsible for more than five percent (5%) of the annual Special Tax levy, as shown on the Riverside County Assessor s last equalized tax roll prior to the September next preceding the Annual Report Table No. 2 Community Facilities District No (Canyon Hills) Improvement Area B 2011/12 Fiscal Year Special Tax Levy for Ownership Greater than 5% Tract G. STATUS OF FACILITIES The facilities constructed with proceeds of the Bonds have been completed. H. BUILDING PERMITS There were 21 building permits issued in Improvement Area B of the CFD during the prior fiscal year. I. FUNDS GENERATED Number of Parcels Total Special Taxes The total amount of funds generated by the developed parcels and undeveloped parcels within Improvement Area B of the CFD are as follows: Table No. 3 Community Facilities District No (Canyon Hills) Improvement Area B 2011/12 Fiscal Year Special Tax Levy Summary Percent of Total Special Tax Levy Richmond American Homes 218 $ 446, % Total 218 $ 446, % Development Status Number of Parcels Total Special Taxes Percent of Total Special Tax Levy Developed Property 579 $ 1,149, % Undeveloped Property 76 $ 183, % Total 655 $ 1,333, % 3

6 SECTION III SIGNIFICANT EVENTS SECTION III A. REPORTING OF SIGNIFICANT EVENTS REPORTING OF SIGNIFICANT EVENTS There were no significant events that occurred during the Fiscal Year ending June 30, According to the Continuing Disclosure Agreement for the Bond Issue, significant events are as follows. 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Modifications to the rights of Bondholders; 4. Optional, contingent, or unscheduled Bond Calls; 5. Defeasances; 6. Ratings changes; 7. Adverse tax opinions or events adversely affecting the tax-exempt status of Bonds; 8. Unscheduled draws on the debt service reserves reflecting financial difficulties; 9. Unscheduled draws on credit enhancements reflecting financial difficulties; 10. Substitution of credit or liquidity providers, or their failure to perform; and 11. Release, substitution or sale of property securing repayment of the Bonds. Notice for listed events described in subsections (a) (4) and (5) of the Disclosure Certificate and need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Fiscal Agent Agreement. 4

7 APPENDIX A AUDITED FINANCIAL STATEMENT APPENDIX A AUDITED FINANCIAL STATEMENTS A-1

8 APPENDIX B DELINQUENCY INFORMATION APPENDIX B DELINQUENCY INFORMATION B-1

9 APPENDIX B DELINQUENCY INFORMATION City of Lake Elsinore Community Facilities District No (Canyon Hills) Improvement Area B APN Delinquent as of 4/10/2010 Delinquent as of 4/10/2011 Delinquent as of 4/10/20112 Total Delinquency $ $ $1, $1, $1, $1, $1, $2, $2, $1, $1, $1, $2, $2, $6, $2, $2, $2, $2, $2, $2, $1, $1, $2, $2, $2, $7, Total $3, $5, $20, $29, Date FC Complaint Filed Results of FC Sale, If Any 2 B-2

10 APPENDIX C APPENDIX C 2 C-1

11 APPENDIX C (City of Lake Elsinore Community Facilities District No (Canyon Hills)) This Continuing Disclosure Agreement (the Disclosure Agreement ), dated as of September 1, 2006, is executed and delivered by the City of Lake Elsinore Community Facilities District No (Canyon Hills) (the CFD ) and Union Bank of California, N.A., as Dissemination Agent hereunder (the Dissemination Agent ) in connection with the issuance of the $20,570,000 City of Lake Elsinore Community Facilities District No (Canyon Hills) Special Tax Bonds (Improvement Area B) 2006 Series A (the Bonds ). The Bonds are being issued pursuant to provisions of a Fiscal Agent Agreement, dated as of September 1, 2006 (the "Fiscal Agent Agreement"), by and between the CFD and Union Bank of California, N.A., as fiscal agent (the"fiscal Agent"). The CFD and the Dissemination Agent covenant and agree as follows: SECTION 1 Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the CFD, the Dissemination Agent and the Fiscal Agent for the benefit of the Beneficial Holders Owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2-12(b)(5). SECTION 2 Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: Annual Report shall mean any Annual Report or any addendum thereto provided by the CFD pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement Beneficial Owner shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "CFD" means City of Lake Elsinore Community Facilities District No Improvement Area B (Canyon Hills), a community facilities district organized and existing under the laws of the State of California, and such area of land comprising that community facilities district. "City" means the City of Lake Elsinore, California National Repository shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in the SEC website located Participating Underwriter shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. Repository shall mean each National Repository and each State Repository. Rule shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. Disclosure Representative shall mean the Mayor of the City of Lake Elsinore or his or her designee, or such other officer or employee as the City Council of the City of Lake Elsinore (the Council ) shall designate in writing to the Fiscal Agent and Dissemination Agent from time to time. C-2

12 APPENDIX C Dissemination Agent shall mean the Union Bank of California, N.A., acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the CFD and which has filed with the Fiscal Agent a written acceptance of such designation. Listed Events shall mean any of the events listed in Section 5(a) of this Disclosure Agreement. State shall mean the State of California. "State" shall mean the State of California State Repository shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Agreement, there is no State Repository. Rule shall mean Rule15c2-12(b) (5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. SECTION 3 Provision of Annual Reports (a) The CFD shall, or shall cause the Dissemination Agent to, not later than 225 days after the end of the City's fiscal year, commencing with fiscal year ending June 30, 2006, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual Reports may be provided in electronic format to each Repository. and may be provided in electronic format to each Repository and may be provided through the services of a "Central Post Office" approved by the Securities and Exchange Commission. The Annual Resubmitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement. If the City's Fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(f). Furthermore, upon receipt of a written request of any Beneficial Owner, the Dissemination Agent shall provide a copy of the Annual Report to such Beneficial Owner. (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report to Repositories, the CFD shall provide the Annual Report to the Dissemination Agent and the Fiscal Agent (if the Fiscal Agent is not the Dissemination Agent). If by such date, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the CFD and the Dissemination Agent to determine if the CFD is in compliance with the first sentence of this subsection (b). The CFD shall provide a written certification with each Annual Report furnished to the Dissemination Agent and the Fiscal Agent to the effect that such Annual Report constitutes the Annual report required to be furnished by it hereunder. The Dissemination Agent and the Fiscal Agent may conclusively rely upon such certification of the Issuer and shall have no duty or obligation to review such Annual Report. (c) If the Dissemination Agent is unable to verify that an Annual Report has been provided to Repositories by the date required in subsection (a), the Dissemination Agent shall send a notice to each Repository or to the Municipal Securities Rulemaking Board and the State Repository, if any in substantially the form attached as Exhibit A. (d) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and addresseach National Repository and the State Repository, if any; and C-3

13 APPENDIX C (ii) to the extent information is known to it, file a report with the CFD and (if the Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4 Content of Annual Reports. The CFD s Annual Report shall contain or include by reference the following: (i) The audited financial statements of the CFD for the prior fiscal year, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the CFD s audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual report shall contain unaudited financial statements in a format similar to the financial statements contained the final Official Statement, and the Audited financial statements shall be filed in the same manner as the Annual Report when they become available. (ii) The balance in the Reserve Account held under the Fiscal Agent Agreement. (iii) Total assessed valuation (per the Riverside County Assessor records) of all parcels currently subject to the Special Tax within Improvement Area B of the CFD, showing the total assessed valuation for all land and the total assessed valuation for all improvements within Improvement Area B of the CFD and distinguishing between the assessed value of developed property and undeveloped property. (iv) Identification of each parcel within Improvement Area B of the CFD for which any Special Tax payment is delinquent, together with the following information respecting each such parcel: (A) the amount delinquent; (B) the date of each delinquency; (C) in the event a foreclosure complaint has been filed respecting such delinquent parcel and such complaint has not yet been dismissed, the date on which the complaint was filed; and (D) in the event a foreclosure sale has occurred respecting such delinquent parcel, a summary of the results of such foreclosure sale. (v) The number of certificates of occupancy issued by the City within Improvement Area B of the CFD and the principal amount of prepayments of the Special Tax with respect to Improvement Area B of the CFD for the prior Fiscal Year. (vi) A land ownership summary listing property owners responsible for more than five percent (5%) of the annual Special Tax Levy, as shown on the Riverside County Assessor's last equalized tax roll prior to the September next preceding the Annual Report date. (vii) A description of the status of the facilities being constructed with proceeds of the Bonds as of the date of the Annual Report (but only so long as such facilities are not completed). (viii) Fiscal Year. The number of building permits issued in Improvement Area B of the CFD during the (ix) The amount of Special Taxes generated by the developed parcels and undeveloped parcels within Improvement Area B of the CFD. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference C-4

14 APPENDIX C is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The CFD shall clearly identify each such other document so included by reference. SECTION 5 Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the CFD shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material: 1. principal and interest payment delinquencies; 2. non-payment related defaults; 3. modifications to rights of Bondholders; 4. optional, contingent or unscheduled bond calls; 5. defeasances; 6. rating changes; 7. adverse tax opinions or events adversely affecting the tax-exempt status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; 9. unscheduled draws on credit enhancements reflecting financial difficulties; 10. substitution of credit or liquidity providers, or their failure to perform; and 11. release, substitution or sale of property securing repayment of the Bonds. (b) The Dissemination Agent shall, within one (1) Business Day of obtaining actual knowledge of the occurrence of any of the Listed Events, or as soon as reasonably practicable thereafter, contact the Disclosure Representative, inform such person of the event, and request that the CFD promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (f) and promptly direct the Fiscal Agent whether or not to report such event to the Bondholders. In the absence of such direction the Dissemination Agent shall not report such event unless otherwise required to be reported by the Fiscal Agent to the Bondholders under the Fiscal Agent Agreement. The Dissemination Agent may conclusively rely upon such direction (or lack thereof). For purposes of this Disclosure Agreement, actual knowledge: of the occurrence of such Listed Events shall mean actual knowledge by the officer at the corporate trust office of the Fiscal Agent or the Dissemination Agent with regular responsibility for the administration of matters related to the Fiscal Agent Agreement. The Fiscal Agent shall have any responsibility to determine the materiality of any of the Listed Event. (c) Whenever the CFD obtains knowledge of the occurrence of a Listed Event, whether because of a notice from the Dissemination Agent pursuant to subsection (b) or otherwise, the CFD shall as soon as possible determine if such event would be material under applicable federal securities laws. Continuing Disclosure $10,125, CFD Series H FY _REV_.docx C-8

15 APPENDIX C (d) If the CFD has determined that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the CFD shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence pursuant to subsection (f). (e) If in response to a request under subsection (b), the CFD determines that the Listed Event would not be material under applicable federal securities laws, the CFD shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (f). (f) If the Dissemination Agent has been instructed by the CFD to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the Certificate Insurer, Municipal Securities Rulemaking Board and the State Repository or the Repositories. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(4) and (5) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Indenture. SECTION 6 Termination of Reporting Obligation. The CFD s obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the bonds. If such termination occurs prior to the final maturity of the Bonds, the CFD shall give notice of such termination in the same manner as for a Listed Event under Section 5(f). SECTION 7 Dissemination Agent. The CFD may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the CFD pursuant to this Disclosure Agreement. The initial Dissemination Agent shall be the Union Bank of California N.A. The Dissemination Agent may resign by providing thirty days written notice to the CFD and the Fiscal Agent. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the CFD in a timely manner and in a form suitable for filing. SECTION 8 Amendment: Waiver. Notwithstanding any other provision of this Disclosure Agreement, the CFD, Dissemination Agent and the Fiscal Agent may amend this Disclosure Agreement ( and the Fiscal Agent and Dissemination Agent shall agree to any amendment so requested by the CFD provided, neither the Fiscal Agent or the Dissemination Agent shall be obligated to enter into any such amendment that modifies or increases its duties or obligations hereunder, and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; (b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the same C-6

16 APPENDIX C manner as provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of Holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds. (d) In the event of any amendment or waiver of a provision of this Disclosure Agreement, the CFD shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the CFD. SECTION 9 Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the CFD from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the CFD chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the CFD shall have no obligation under this Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10 Default. In the event of a failure of the CFD or the Dissemination Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent (at the written request of any Participating Underwriter or the Holders of at least 25% aggregate principal amount of Outstanding Bonds, shall but only to the extent funds in an amount satisfactory to the Fiscal Agent have been provided to it or it has been otherwise indemnified to its satisfaction from any costs, liability, expense or additional charges and fees of the Fiscal Agent whatsoever, including, without limitation, fees and expenses of its attorneys), or any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the CFD or the Fiscal Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sold remedy under this Disclosure Agreement in the event of any failure of the CFD or the Fiscal Agent to comply with this Disclosure Agreement shall be an action to compel performance. SECTION 11 Duties, Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Article VIII of the Fiscal Agent Agreement is hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent Agreement and the Fiscal Agent and the Dissemination Agent shall be entitled to the protections, limitations from liability and indemnities afforded the Fiscal Agent thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the CFD agrees to indemnify and save the Dissemination Agent, their officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorney s fees) of defending against any claim of liability, but excluding liabilities due to the respective parties gross negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the CFD for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to them hereunder and shall not be deemed to be acting in any fiduciary capacity for the CFD, the Bondholders, or any other party. The Dissemination Agent shall have no liability to the Certificate holders or any other party for any monetary damages or financial liability of any kind whatsoever related to or arising from this agreement. The obligations of the CFD under this Section shall survive resignation Continuing Disclosure $10,125, CFD Series H FY _REV_.docx C-7

17 APPENDIX C or removal of the Dissemination Agent and payment of the Bonds. SECTION 12 Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows: To the City: To the Fiscal Agent: City of Lake Elsinore 130 South Main Street Lake Elsinore, California Attn: City Manager Fax: (909) Union Bank of California, N.A. 120 South San Pedro Street, 4 th Floor Los Angeles, California Attn: Corporate Trust Department. Fax: (213) Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent. SECTION 13 Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the CFD, the Fiscal Agent, the Dissemination Agent, the Participating Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. SECTION 14 Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO (CANYON HILLS) By City Manager of the City of Lake Elsinore UNION BANK OF CALIFORNIA, N.A. as Dissemination Agent and Fiscal Agent. By Authorized Officer C-8

18 APPENDIX C EXHIBIT A NOTICE OF REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Obligated Party: Name of Bond Issue: City of Lake Elsinore Community Facilities District No (Canyon Hills) City of Lake Elsinore Community Facilities District No (Canyon Hills) Special Tax Bonds (Improvement Area B) 2006 Series A Date of Issuance: September 7, 2006 NOTICE IS HEREBY GIVEN that the CFD has not provided an Annual Report with respect to the above named Bonds as required by the Continuing Disclosure Agreement, dated as of September 1, 2006, with respect to the Bonds. The CFD anticipates that the Annual Report will be filed by.] Dated: UNION BANK OF CALIFORNIA, N.A. on behalf of the CFD Continuing Disclosure $10,125, CFD Series H FY _REV_.docx C-9