1st Amendment to Nimitz Ground Lease(20117139.1)_r

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(f)Lessee acknowledges and agrees that Lessor intends to allow conversion of the Project to other permanent affordable housing as permitted in the Notice, and such conversion is a possible outcome of the Project. The conditions under which conversion of the Project will be permitted are: (i) Lessor shall notify the California Housing and Community Development Department and the Alameda County Housing and Community Development Department of Lessor’s intent to convert after Year 5, (ii) Lessor shall not convert to permanent affordable housing until after Year 5 of operations, and (iii) permanent affordable housing development shall comply with applicable City zoning, building, health and safety, and fire regulations._ Lessor approval of the terms and conditions of the conversion is required before the conversion occurs. (g)Lessee shall ensure that the Project meets the following habitability and property standards as described in Section VI.E.7 of the Notice: i.Project units and common areas must meet all applicable State and local codes, ordinances, and requirements, and the applicable provisions of the Lead Safe Housing Rule at 24 CFR Part 35. In addition, the Project must meet all the minimum safety, sanitation, accessibility, and privacy standards outlined in Section VI.E.7.a. of the Notice. ii.The Project must meet the minimum property standards outlined in Section VI.E.7.a. of the Notice prior to occupancy and throughout the restricted use period. (h)Compliance with the foregoing requirements of this Section 5.6 shall be a condition to disbursement of the City Rehabilitation Grant Proceeds in addition to the conditions set forth in Section 5.3 hereof. (i)Lessee agrees to comply with all of the requirements of the County Grant Agreement applicable to the Lessor thereunder. Lessee shall cooperate with Lessor with respect to Lessor’s compliance with its requirements under the County Grant Agreement, including without limitation any reporting and administrative requirements thereunder.” 2.Compliance with HUD Grant Requirements. Section 5.7 is hereby added to the Ground Lease as follows: “Section 5.7 HUD Grant. Lessor and Lessee acknowledge that a portion of the City Rehabilitation Grant will be obtained from $1,000,000 of Community Project Funds provided by HCD pursuant to the HCD Grant Agreement. In connection therewith, Lessee agrees to comply with all of the requirements of the HCD Grant Agreement applicable to the Grantee thereunder. Compliance with the applicable requirements of the HCD Grant Agreement shall be a condition to disbursement of the City Rehabilitation Grant Proceeds in addition to the conditions set forth in Section 5.3 hereof. Lessee shall Docusign Envelope ID: 917058E9-A7D0-495A-B516-E1C59F7309B8