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INSURANCE NOT REQUIRED <br />WORK MAY PROCEED <br />CITY CLERK <br />A-2024-073 <br />DATE: ' JUN 14 2024 <br />n , c b ACO) THIRD AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND <br />Ce AFFORDABLE HOUSING COVENANTS <br />THIS THIRD AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND <br />AFFORDABLE HOUSING COVENANTS, made and entered into this 4a` day of June, 2024, <br />by and between MERCY HOUSE LIVING CENTERS, formerly known as MERCY HOUSING <br />TRANSITIONAL LIVING CENTERS, a California non-profit public benefit corporation <br />("Developer"), the City of Santa Ana, a charter city and municipal corporation organized and <br />existing under the Constitution and laws of the State of California ("City"), and the Housing <br />Authority of the City of Santa Ana acting as the Successor Housing Agency to the Community <br />Redevelopment Agency of the City of Santa Ana ("Successor Housing Agency"). <br />RECITALS <br />A. The City and Successor Housing Agency entered into a Housing Development Loan <br />Agreement and Affordable Housing Covenants with Developer, dated April 11, 2006 (the <br />"Agreement"), to provide financial assistance from Redevelopment funds and the United <br />States Department of Housing and Urban Development ("HUD") under the HOME <br />Investment Partnership Program ("HOME Program") for the rehabilitation of the Joseph <br />House Project located at 210 East Sixteenth Street, Santa Ana, for the operation of a <br />transitional living center for homeless, single men. <br />B. City and Developer entered into a First Amendment to the Agreement on December 1, <br />2015, to modify the Joseph House transitional housing program to become a dual- <br />purpose facility offering both transitional housing and permanent housing with supportive <br />services for single, homeless men from the community. The proposed program <br />modification from a transitional shelter to a dual-purpose model included the following: <br />(1) Transition two units of transitional housing into permanent housing with supportive <br />services, offering low rental costs in compliance with HOME low rents to meet the needs <br />of low-income homeless men in the community, (2) One unit to continue operating as a <br />transitional housing program; and (3) Leverage rapid re -housing funds to reduce the <br />length of time clients stay at the shelter with the goal of connecting them to permanent <br />affordable housing opportunities. <br />C. City and Developer entered into a Second Amendment to the Agreement on November 7, <br />2017, to allow for the remaining transitional housing unit to be turned into affordable <br />housing and dissolve transitional shelter at the site. <br />D. The Parties now desire to enter into this Third Amendment to the Agreement to allow for <br />permanent housing with supportive services for low-income families rather than offering <br />housing to a target population of low-income men. Developer is proposing to use two <br />units as shared housing with no more than two residents to a room. The two units are <br />further identified in Exhibit G-1, attached below, and would have a total of five <br />bedrooms. Within the two units used for shared housing, two rooms shall be available as <br />private bedrooms for a single individual. The rent for the private bedrooms would be <br />5 5394.00101%42164031.1 <br />