Executed_First Amendment to Operating Subsidy Agreement

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FIRST AMENDMENT TO OPERATING SUBSIDY AGREEMENT THIS FIRST AMENDMENT TO OPERATING SUBSIDY AGREEMENT (this "First Amendment") is made as of January 2, 2024, 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 an “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 interim homeless shelter and navigation center (the “Project”) located at 555 Lewelling Boulevard, San Leandro (the “Property”). B. The Operating Subsidy Agreement provides for City to make certain payments to Operator for costs incurred prior to the rehabilitation of the Project and commencement of the operation of the Project. By this First Amendment, the City and Operator desire to permit such payments to be made prior to the issuance of a Certificate of Occupancy for the Project. NOW, THEREFORE, the parties hereto agree as follows: 1. City Approval of Contracts. Section 4.2 is hereby added to the Operating Subsidy Agreement as follows: “4.2 City Review and Approval of Contracts. Operator shall submit to City for its review and approval all leases and subleases to providers of services which are subject to City payment of Grant Funds pursuant to this Agreement.” 2. Payments for Pre-Operation Services. Section 4.4 of the Operating Subsidy Agreement is hereby amended to read as follows: “4.4 Conditions Precedent to Payment of Subsidy Payments. Operator shall fully satisfy each of the following conditions prior to delivery of each Subsidy Payment: (a) A final or temporary Certificate of Occupancy shall have been issued for the Project; provided that Subsidy Payments made for expenses set forth in the “Start- Up” FY 23-24 column in Exhibit B to the Operating Subsidy Agreement may be made prior to the issuance of a final or temporary Certificate of Occupancy for the Project. (b) Operator shall be in compliance with all of its obligations under the Ground Lease. (c) No Event of Default, or event that with notice or the passage of time or both could constitute an Event of Default, shall exist and remain uncured as of the date of such Subsidy Payment is to be disbursed hereunder.” DocuSign Envelope ID: C4E90466-843A-40F9-85E9-66480DF96CD4