CoSL_HCEB Second Amendment to Operating Subsidy Agreement 2025_0212

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Second Amendment to Operating Subsidy Agreement City of San Leandro and Housing Consortium of the East Bay February 12, 2025 SECOND AMENDMENT TO OPERATING SUBSIDY AGREEMENT This Second Amendment to Operating Subsidy Agreement (the “Amendment”) is entered into as of February 12, 2025, by and between the City of San Leandro, a California municipal corporation ("City"), and Housing Consortium of the East Bay, a California nonprofit public benefit corporation ("Operator"). RECITALS A. City and Operator have entered into a Ground Lease dated as of October 30, 2023, as amended by the First Amendment to Ground Lease dated January 2, 2024 (as amended, the “Ground Lease”), which provides for City to lease to Operator that certain real property located at 555 Lewelling Boulevard, San Leandro (the “Property”). B. Pursuant to the Ground Lease, Operator will convert the Property into an interim homeless shelter with twenty-nine non-congregate shelter units, navigation center for homeless persons and persons at risk of homelessness, offices for management and services staff, meeting and conference spaces, community room, laundry room, modular trailer for shower services for navigation center clients, modular trailer for office space, parking, landscaping and lighting (the “Project”). C. Pursuant to the Ground Lease, City and Operator have entered into a separate “Operating Subsidy Agreement,” dated as of October 30, 2023, pursuant to which City has agreed to provide specified payments to Operator as necessary for payment of the costs of operation of the Project. D. Operator is required to pay Operating Costs in conformity with the approved Annual Operating Budget which sets forth Operator's anticipated Operating Costs, Project Income and Shortfall for the Term of the Agreement, and which is attached to the Operating Subsidy Agreement as Exhibit B. The Operating Subsidy Agreement states that the Parties expect to refine the Annual Operating Budget following commencement of rehabilitation of the Project, and will amend Exhibit B to reflect the updated costs, if any. E. The rehabilitation of the Project has commenced, and the Parties now desire to amend the Annual Operating Budget which is attached to the Operating Subsidy Agreement. NOW, THEREFORE, the Parties agree as follows: 1. Amended Operating Budget. The Amended Annual Operating Budget attached hereto as Exhibit B-1 hereby replaces and supersedes the Annual Operating Budget attached as Exhibit B to the Operating Subsidy Agreement. 2. No Modification or Waiver. Except as otherwise expressly set forth herein, all other terms and conditions of the Operating Subsidy Agreement remain in full force and effect. Docusign Envelope ID: DA2F3815-5E3B-4B76-A268-DFD359104A2C