80A - JOINT - JOSEPH HOUSE AMEND

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Exhibit 2 i SECOND AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS THIS SECOND AMENDMENT TO HOUSING DEVELOPMENT LOAN AGREEMENT AND AFFORDABLE HOUSING COVENANTS, made and entered into this 29th day of September, 2017, by and between MERCY HOUSE LIVING CENTERS, formerly known as MERCY HOUSING TRANSITIONAL LIVING CENTERS, a California non-profit public benefit corporation ("Developer"), the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"), and the Housing Authority of the City of Santa Ana acting as the Successor Housing Agency to the Community Redevelopment Agency of the City of Santa Ana ("Successor Housing Agency"). RECITALS A. The City and Successor Housing Agency entered into a Housing Development Loan Agreement and Affordable Housing Covenants with Developer, dated April 11, 2006, to provide financial. assistance from Redevelopment funds and the United States Department of Housing and Urban Development ("HUD") under the HOME Investment Partnership Program ("HOME Program") for the rehabilitation of the Joseph House Project located at 210 East Sixteenth Street, Santa Ana, for the operation of a transitional living center for homeless, single men ("said Agreement'). B. Due to funding and policy changes at the federal level, a First Amendment to the Agreement was entered into on December 1, 2016, to modify the Joseph House transitional housing program to become a dual-purpose facility offering both transitional housing and permanent housing with supportive services for single, homeless men from the community. The proposed program modification from a transitional shelter to a dual-purpose model included the following: (1) Transition two units of transitional housing into permanent housing with supportive services, offering low rental costs in compliance with HOME low rents to meet the needs of low-income homeless men in the community; (2) One unit to continue operating as a transitional housing program; and (3) Leverage rapid re -housing funds to reduce the length of time clients stay at the shelter with the goal of connecting them to permanent affordable housing opportunities. C. Due to the need for affordable housing for formerly homeless and low-income individuals, and in accordance with the terms and conditions of said Agreement, the parties seek to further amend the Housing Development Loan Agreement and Affordable Housing Covenants to allow for the remaining transitional housing unit to be turned into affordable housing and dissolve transitional shelter at the site.