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Item 23 - Third Amendment to the Joseph House Loan Agreement and Affordable Housing Covena_20240530010439363
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Item 23 - Third Amendment to the Joseph House Loan Agreement and Affordable Housing Covena_20240530010439363
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5/30/2024 4:07:01 PM
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Doc Type
Agenda Packet
Agency
Community Development
Item #
23
Date
6/4/2024
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EXHIBIT 1 <br />Strategic Changes <br />Mercy House first began operation of the Joseph House Transitional Shelter Program in 1990. It was <br />designed to meet the needs of 10 homeless, single men within the community. Since that time, Mercy <br />House has continuously demonstrated its commitment to serving the evolving needs of the community <br />and agency by strategically modifying this significant housing asset multiple times. These adaptations <br />have allowed Mercy House to effectively meet the diverse needs of various populations, ensuring the <br />sustained relevance and impact of its services in addressing homelessness. <br />As a shared housing facility exclusively serving low-income and formerly homeless men, the project has <br />encountered several significant challenges over the past few years. The impact of COVID prompted the <br />need to reduce the number of residents served from 15 to 8 to ensure social distancing measures, <br />particularly considering the vulnerability of elderly tenants. Additionally, there have been other notable <br />and costly issues with the project as a result of the shared housing model. <br />In order to ensure the sustainability of the project for many years to come, Mercy House desires to shift the <br />target population from low-income single men to low-income families, mirroring our successful Regina <br />House HOME program. Notably, this transition will not displace or relocate current tenants; rather, units <br />will gradually transition to family -oriented residences through natural attrition. <br />The charts below illustrate the current formation of the units and proposed changes as they relate to each <br />unit within the property. <br />Current Unit Configuration (as of April 17, 2024) <br />Unit No. <br />Bedroom <br />No. <br />Tenants per <br />Room <br />Population <br />Served <br />Maximum <br />Rent <br />Allowable <br />Rent Charged <br />Unit 1 <br />Bedroom 1 <br />1 tenant <br />Single Male <br />$516.00 <br />$468.00 <br />Bedroom 2 <br />2 tenants <br />Single Male <br />$516.00 <br />$385.00per person <br />Bedroom 3 <br />1 tenant <br />Single Male <br />$516.00 <br />$468.00 <br />Unit 2 <br />Bedroom 1 <br />1 tenant <br />Single Male <br />$554.00 <br />$385.00 <br />Bedroom 2 <br />2 tenants <br />Single Male <br />$554.00 <br />$385.00 per person <br />Unit 4 <br />Bedroom 1 <br />11 tenant <br />Single Male <br />$443.20 <br />$385.00 <br />Bedroom 2 <br />acant <br />Single Male <br />$443.20 <br />N/A <br />Unit 1: Based on prevailing 2024 FMR rate for 3-bedroom Unit in Orange County at $3,769/month. <br />Unit 2 and 4: Based on prevailing 2024 FMR rate for 2-bedroom Unit in Orange County at $2,783/month. <br />
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