From Homestar Runner Wiki
The Alleyway is where Senor Cardgage has been seen sleeping. This suggests that he is homeless, although it is implied that he lived in a house across the street from The Brothers Strong when they were young. It seems to be in some type of urban area, perhaps near the Graffiti Wall, where cars are heard honking; these cars are neither heard nor seen anywhere else in Free Country, USA.
Senor Cardgage sleeps in an orange sleeping bag with his Aldi Bag as a pillow, and off to one side there is a (silhouetted) trash can. On one occasion, there is a large box nearby in the alleyway labeled "UNLABELED BOX".