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Community Development Agency <br />_ www.santa-ana.org/community-development <br />Item # 23 <br />or City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />June 4, 2024 <br />TOPIC: Third Amendment to Joseph House Loan Agreement and Affordable Housing <br />Covenants <br />AGENDA TITLE <br />Third Amendment to the Joseph House Loan Agreement and Affordable Housing <br />Covenants with Mercy House Living Centers to Allow for Permanent Supportive <br />Housing for Homeless Families at 210 E 16t" Street <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute a third amendment to the Joseph House Loan <br />Agreement and Affordable Housing Covenants with Mercy House Living Centers, <br />formerly known as Mercy House Transitional Living Centers, to allow for permanent <br />housing with supportive services for homeless families rather than offering housing to a <br />target population of homeless men at 210 E 16t" Street (Agreement No. A-2024-XXX). <br />(Contingent upon approval of the same Housing Authority action). <br />GOVERNMENT CODE 484308 APPLIES: Yes <br />DISCUSSION <br />Mercy House has operated Joseph House at 210 E 16t" Street as a transitional housing <br />program for homeless single men in the community since 1990. On April 11, 2006, the <br />City of Santa Ana and the former Community Redevelopment Agency of the City of <br />Santa Ana (RDA) entered into a Loan Agreement and Affordable Housing Covenants <br />with Mercy House Transitional Living Centers (Mercy House) for the rehabilitation of the <br />Joseph House project located. At the time of the loan agreement in 2006, the City <br />provided HOME Investment Partnerships Program and RDA low- to moderate -income <br />housing funds for the rehabilitation of the property. <br />Due to funding and policy changes at the federal level, a first amendment to the loan <br />agreement was entered into on December 1, 2016 to modify the Joseph House <br />transitional housing program to become a dual-purpose facility offering both transitional <br />housing and permanent housing with supportive services for single homeless men from <br />Santa Ana. A second amendment was entered into on November 7, 2017 to allow for <br />