HomeMy WebLinkAbout3 - AMENDMENT TO MERCY HOUSE
REQUEST FORCOUNCIL/
HOUSING AUTHORITY
ACTION
CITY COUNCIL MEETING DATE:CLERK OF COUNCIL USE ONLY:
DECEMBER 1, 2015
TITLE
: APPROVED
AMENDMENT TO JOSEPH HOUSE LOAN
As Recommended
As Amended
AGREEMENT AND AFFORDABLE
st
Ordinance on 1Reading
HOUSING COVENANTS WITH MERCY
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Ordinance on 2Reading
HOUSE LIVING CENTERS, FORMERLY
Implementing Resolution
Set Public Hearing For__________
KNOWN AS MERCY HOUSE
TRANSITIONAL LIVING CENTERS
{STRATEGIC PLAN NO. 5, 3}
CONTINUED TO
FILE NUMBER
CITY MANAGEREXECUTIVE DIRECTOR
RECOMMENDED ACTION
CITY COUNCIL ACTION
Authorize the City Managerand the Clerk of the Council to execute an amendment to Joseph
House loan agreement and affordable housing covenants with Mercy House Living Centers,
formerly known as Mercy HouseTransitional Living Centers, to include both transitional housing and
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permanent housing with supportive services for the Joseph House Project located at 210 E. 16
Street, subject to non-substantiative changes approved by the City Manager and City Attorney.
HOUSING AUTHORITY ACTION
Authorizethe Executive Directorof the Housing Authority to execute an amendment to Joseph
House loan agreement and affordable housing covenants withMercy House Living Centers,
formerly known asMercy House Transitional Living Centers, to include both transitional housing and
th
permanent housing with supportive services for the Joseph House Project located at 210 E. 16
Street, subject to non-substantiative changes approved by the Executive Director and the Housing
Authority General Council.
DISCUSSION
On April 11, 2006, the City of Santa Ana and the former Community Redevelopment Agency of
the City of Santa Ana (RDA) entered into a Housing Development Loan Agreement and
Affordable Housing Covenants with Mercy House Transitional Living Centers (Mercy House) for
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the rehabilitation of the Joseph House Project located at 210 E. 16Street. Mercy House has
operated Joseph House as a transitional housing program for homeless single men within the
community since 1990.At the time of the loan agreement in 2006, the City provided HOME
Investment Partnership Program (HOME Program) and RDA tax incrementfunds for the
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Amendment to Joseph House Loan Agreement
and Affordable Housing Covenants
December 1, 2015
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rehabilitation of the property. At thetimeof committing HOME funds, the HOME Program
allowed funds to be used fortransitional housing. In accordance with the loan agreement and
funding regulations, the City has continued tomonitorJoseph House to ensure compliance with
theloandocuments, regulations, and affordable housing covenants.
Due to funding and policy changesat the federal level, Mercy House is proposing to modify the
Joseph House transitionalhousingprogram tobecome a dual-purpose facility offering both
transitional housing and permanent housing with supportive services for single, homeless men
fromthe community. Currently, Joseph House has three units providing transitional housingto
21 homeless, single men at a time. In September 2015, Mercy House submitted a plan for
Joseph House outlining the proposed program modification and implementation of the strategy
(Exhibit 1). The proposed program modification from a transitional shelter to a dual-purpose
model will include 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 individualsin the community; (2) one unit will continue
to operate 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 topermanent
affordable housing opportunities. The proposed program modifications would require minor
rehabilitationto the physical property and require no additional funds from the City.
STRATEGIC PLAN ALIGNMENT
The activities covered by this report allow the City to meet Goal #5 (Community Health,Livability,
Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities and support
efforts to preserve and improve the livability of Santa Ana neighborhoods).
FISCAL IMPACT
There is no fiscal impactassociated with this action.
Kelly Reenders
Executive Director
Community Development Agency
KL/JB/NV/ll
Exhibits: 1.Joseph House Proposed Modification Plan/Implementation
2.Amendment to Loan Documents
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EXHIBIT 1
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EXHIBIT 2
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