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Community Development Agency <br />www.santa-ana.org/community-development <br />Item # 3 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />June 4, 2024 <br />TOPIC: Affordable Housing 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 Housing with <br />Supportive Services for Low -Income Families at 210 E 16t" Street <br />RECOMMENDED ACTION <br />Authorize the Executive Director of the Housing Authority to execute a Third <br />Amendment to the Joseph House Loan Agreement and Affordable Housing Covenants <br />with Mercy House Living Centers, formerly known as Mercy House Transitional Living <br />Centers, to allow for permanent housing with supportive services for low-income <br />families rather than offering housing to a target population of low-income men at 210 <br />16t" Street (contingent upon approval of the same City Council action) (Agreement No. <br />A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />Mercy House has operated Joseph House as a transitional housing program for <br />homeless single men in the community since 1990. On April 11, 2006, the City of Santa <br />Ana and the former Community Redevelopment Agency of the City of Santa Ana (RDA) <br />entered into a Loan Agreement and Affordable Housing Covenants with Mercy House <br />Transitional Living Centers (Mercy House) for the rehabilitation of the Joseph House <br />project located at 210 E 16t" Street. At the time of the loan agreement in 2006, the City <br />provided HOME Investment Partnerships Program (HOME Program) and RDA tax <br />increment 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 />the remaining transitional housing unit to be turned into permanent affordable housing <br />and dissolve transitional housing and shelter at the project. <br />Mercy House is now requesting a third amendment to allow for permanent housing with <br />