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FIRST AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT <br />AND AFFORDABLE HOUSING COVENANTS <br />THIS FIRST AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT <br />AND AFFORDABLE HOUSING COVENANTS, made and entered into this I" clay of <br />December, 2015, by and between MERCY HOUSE LIVING CENTERS, formerly imown as <br />MERCY HOUSING TRANSITIONAL LIVING CENTERS, a California non - profit public <br />benefit corporation ( "Developer "), the City of Santa Ana, a charter city and municipal <br />corporation organized and existing under the Constitution and laws of the State of California <br />( "City "), and the Housing Authority of the City of Santa Ana acting as the Successor Housing <br />Agency to the Community Redevelopment Agency of the City of Santa Ana ( "Successor <br />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, <br />to provide financial assistance from Redevelopment funds and the United States <br />Department of Housing and Urban Development ( "HUD ") under the HOME <br />Investment Partnership Program ( "HOME Program ") for the rehabilitation of the <br />Joseph House Project located at 210 East Sixteenth Street, Santa Ana, for the <br />operation of a transitional living center for homeless, single men ("said Agreement"). <br />B. Due to funding and policy changes at the federal level, Developer is proposing to <br />modify the Joseph House transitional housing program to become a dual- purpose <br />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 will include the <br />following: (1) Transition two units of transitional housing into permanent housing with <br />supportive services, offering low rental costs in compliance with HOME low rents to <br />meet the needs of low- hncome homeless men in the community; (2) One unit will <br />continue to operate as a transitional housing program; and (3) Leverage rapid re- housing <br />funds to reduce the length of time clients stay at the shelter with the goal of connecting <br />them to permanent affordable housing opporttmitics. <br />C. In accordance with the terns and conditions of said Agreement, the Parties desire to <br />amend said Agreement to allow the operation of permanent housing with supportive <br />services in addition to transitional housing, <br />NOW THEREFORE, in consideration of the mutual and respective covenants and promises <br />hereinafter contained and made, and subject to all of the terms and conditions of said Agreement, <br />except as herein modified, the parties agree as follows: <br />1. Section 1,1, Defined Terms, the first sentence of the definition of "Property" shall be <br />amended in pertinent part to read as follows: <br />` <br />