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Amendment to Joseph House Loan Agreement <br />and Affordable Housing Covenants <br />December 1, 2015 <br />Page 2 <br />rehabilitation of the property. At the time of committing HOME funds, the HOME Program <br />allowed funds to be used for transitional housing. In accordance with the loan agreement and <br />funding regulations, the City has continued to monitor Joseph House to ensure compliance with <br />the loan documents, regulations, and affordable housing covenants. <br />Due to funding and policy changes at the federal level, Mercy House is proposing to modify the <br />Joseph House transitional housing program to become a dual - purpose facility offering both <br />transitional housing and permanent housing with supportive services for single, homeless men <br />from the community. Currently, Joseph House has three units providing transitional housing to <br />21 homeless, single men at a time. In September 2015, Mercy House submitted a plan for <br />Joseph House outlining the proposed program modification and implementation of the strategy <br />(Exhibit 1). The proposed program modification from a transitional shelter to a dual - purpose <br />model will include the following: (1) transition two units of transitional housing into permanent <br />housing with supportive services, offering low rental costs in compliance with HOME low rents to <br />meet the needs of low- income homeless individuals in the community; (2) one unit will continue <br />to operate as a transitional housing program; and (3) leverage rapid re- housing funds to reduce <br />the length of time clients stay at the shelter with the goal of connecting them to permanent <br />affordable housing opportunities. The proposed program modifications would require minor <br />rehabilitation to the physical property and require no additional funds from the City. <br />STRATEGIC PLAN ALIGNMENT <br />The activities covered by this report allow the City to meet Goal #5 (Community Health, Livability, <br />Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities and support <br />efforts to preserve and improve the livability of Santa Ana neighborhoods). <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Kelly Reenders <br />Executive Director <br />Community Development Agency <br />KL /JB /NV /II <br />Exhibits: 1. Joseph House Proposed Modification Plan /Implementation <br />2. Amendment to Loan Documents <br />80A -2 <br />