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Community Development Agency <br /> www.santa-ana.org/cd <br /> Item # 3 <br /> City of Santa Ana <br /> 20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br /> June 16, 2026 <br /> TOPIC: Subordination Agreement and Lease Rider for FX Residences <br /> AGENDA TITLE <br /> Subordination Agreement and Lease Rider with the State of California Department of <br /> Housing and Community Development for FX Residences <br /> RECOMMENDED ACTION <br /> 1. Authorize the Executive Director of the Housing Authority to execute a <br /> Subordination Agreement with the State of California Department of Housing and <br /> Community Development ("HCD") and Shelter Providers of Southern California, <br /> Inc. DBA HomeAid Orange County I Los Angeles ("HomeAid") to subordinate the <br /> Housing Authority's $1,656,947 loan to a $3,006,567 senior permanent loan from <br /> HCD for FX Residences (Agreement No. A-2026-XXX). <br /> 2. Authorize the Executive Director of the Housing Authority to execute a Lease <br /> Rider with HCD and HomeAid to induce / allow HCD to make a $3,006,567 <br /> senior permanent loan for FX Residences (Agreement No. A-2026-XXX). <br /> GOVERNMENT CODE 484308 APPLIES: Yes <br /> DISCUSSION <br /> On December 7, 2021, the Housing Authority approved a Loan Agreement in the amount <br /> of$1,656,947 and a ninety-nine (99) year Ground Lease with Shelter Providers of <br /> Orange County, Inc. DBA HomeAid Orange County ("HomeAid") for the development of <br /> FX Residences, a 17-unit permanent supportive housing development located at 801, <br /> 807, 809, and 809'/2 East Santa Ana Boulevard (Exhibit 1). [After this approval, HomeAid <br /> changed their legal name to Shelter Providers of Southern California, Inc. and their <br /> business name to HomeAid Orange County I Los Angeles.]At that time, the Housing <br /> Authority also authorized the Executive Director to execute a future Subordination <br /> Agreement with a senior lender as may be required to complete the project financing. <br /> The Housing Authority's loan is secured by a Deed of Trust, Promissory Note, and <br /> Affordability Restrictions recorded against the project. <br /> FX Residences was completed in July 2025 and provides permanent supportive housing <br /> for individuals and families experiencing homelessness and includes on-site supportive <br /> services provided by Mercy House. The project was developed on Housing Authority- <br />