Item 03 - Crossroads at Washington Affordable Housing Project

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2 F.The Project is nearing completion of the environmental assessment phase of work under DTSC’s oversight, with environmental cleanup activity to commence upon DTSC’s approval of a cleanup plan for the Project. DTSC previously approved the Project to be included in its Targeted Site Investigation Plus (“TSI+”) grant program to cover the environmental assessment phase. However, the TSI+ program does not cover environmental remediation costs. G.DTSC is currently working on the Equitable Community Revitalization Grants (“ECRG”) program, which will provide environmental cleanup cost grant funding, and anticipates release of its notice of availability of funding sometime in September 2021. Optionee plans to apply for ECRG funding but it is anticipated that participation in this program may not result in funding awards until at least January 2022. H.Optionee would like assurances from Optionor that Optionor will continue to support and fund the environmental cleanup phase of work in the event that Optionee is unable to obtain the ECRG funding set forth above. I.Optionor and Optionee desire to amend the Option Agreement to provide for the funding of a portion of the environmental assessment and cleanup costs incurred in the investigation and cleanup of the Premises in the event that ECRG funding is not received, on the terms and conditions set forth below. J.Environmental cleanup costs are currently estimated to be $300,000.00. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and in the Option Agreement, and other good and valuable consideration the receipt of which is hereby acknowledged, the Parties agree to amend the Option Agreement by including the following additional terms and conditions as follows: 1.All terms not specifically defined herein shall have the meaning set forth in the Option Agreement. 2.Funding of Environmental Cleanup. The County and Agency hereby agree to fund the environmental cleanup of the Project in an amount not to exceed $300,000.00, with the County and Agency each responsible for funding one-half of this amount, if each of the following conditions are met: (a)On or before September 1, 2021, Optionee elects not to return the FCAA Credits from the California Tax Credit Allocation Committee and to commence the environmental cleanup of the Premises; and (b)Optionee is unable to obtain the ECRG funding set forth above after award of the ECRG funding, but in no case later than the end of February 2022, which date may be modified in writing by the County (through the Chief Real Estate Officer), Agency (through the Executive Director of the EXHIBIT 2