Who is so strange when I bang the gavel here as opposed to the council chambers?

But either way.

It all means the same thing.

Good afternoon, everyone.

Welcome to the Tempe City Council and Tempe Coalition for Affordable Housing Board joint meeting agenda.

Council meetings can be watched in real time via Cox Champ Cable Channel 11 and at Tempe.gov slash Tempe11.

Members of the public may also attend the meeting virtually through Microsoft Teams.

Item number one is called order.

It looks like we've got quorum from looking around the table here, so I'll go ahead and move forward then.

Let's go to item number two, which is welcome and introductions.

I guess let's start Danielle with you, and we're gonna go around the table.

Here's if we can all just turn our microphones on and do a little introduction for the folks watching at home or who might watch the recording later.

Danielle Amorosa with MEB Affordable Management Dan Colton, I'm with Colton Commercial.

I'm a board member.

Irma Holland B.

Kane, Board President.

Corey Woods, Mayor.

Doreen Garland, Vice Mayor.

Arlene Chin, Council Member.

Jennifer Adams, Councilmember.

Birdada Hodge, Council Member.

Nikki Amber, Councilmember.

Good afternoon, Rosen Chelsea, City Manager.

Good afternoon, Eric Anderson, City Attorney.

Carrot Drostias, City Clerk.

Thank you.

We just want to also note that Councilmember Randy Keating is virtual, so he is taking uh active part in this meeting.

Wanted to make sure to put that out there.

Which brings me to item number three, Tempe Coalition.

Oh, okay.

That was like what did that voice?

I thought it was actually Eric, I thought it was you for a second.

That's why that's why I looked at you.

Exactly.

The voice of God.

All right.

Trying again here.

Item number three, Tempe Coalition for Affordable Housing Presentation and Actions.

Item 3A, TCAH updates, and I'm going to turn it over to our board president, Irma Hollamy Kane.

Thank you, Mayor Woods.

So the Tempe Coalition for Affordable Housing, also referred to affectionately by city employees as the affiliate, is an extension of the Tempe Housing Authority, and it's formed to meet certain HUD requirements that allow us to pursue objectives that are outside of traditional limitations.

So for example, our structure allows us flexibility to operate similarly as a private developer.

We can acquire real property, secure loans, apply for and qualify for 501c3 funding opportunities that generally speaking, housing authorities and general governments are not eligible for.

And our rents are based on household income.

So if I could, next slide, please.

Our work at the Tempe Coalition is purpose-driven, and we seek to maximize our impact and contribute to building a strong community with diverse housing options.

So we envision a place where every person has a safe and secure place to call home, allowing them to thrive in their life and their community.

And simply put, our mission is to provide permanently affordable housing options in the city of Tempe.

Next slide, please.

On the screen are our core services and goals, and these are a mixture of who we are now and who we endeavor to become.

Next slide, please.

The Tempe Coalition for Affordable Housing's portfolio is now valued at 17.9 million dollars.

And these scattered site, this skat scattered site portfolio consists of 73 permanently affordable housing units of diverse housing types and sizes that are broken out on the screen.

Next slide, please.

So that portfolio reflects not just what we own today, but the momentum that we're building.

Let me share a few key accomplishments that we that are helping us to expand our impact across Tempe.

So the Tempe Coalition for Affordable Housing is a is proud to be a development partner with Law Victoria Commons, and we're thrilled to be a part of bringing this important community to life.

This project delivers over a hundred units of affordable housing along with an on-site health services clinic, um, employment assistance, and other essential social supports, creating not just housing, but a foundation for stability and opportunity.

Importantly, Law Victoria Commons represents TCAH's first soft loan or GAP financing award, marking a significant milestone in our ability to support affordable housing development in this city.

The TEPI coalition owns three vacant lots embedded within established neighborhoods.

Our team is actively preparing RFPs to engage the development community with the goal of delivering between 40 and 60 units of affordable or home ownership opportunities at these sites.

We're also making progress on homes already within our portfolio.

Three housing units acquired through the City of Tempe CDBG program funding in 2025 have been transferred to the Tempe Coalition's stewardship and have been renovated and are for rent in our community.

These three-bedroom single family homes are located in neighborhoods that have strong amenities, such as schools, parks, and medical services, and it reflects what it means to make Tempe a true hometown for all.

Building on our successful renovation of two properties through the same partnership, we're looking forward to completing these homes and making them available for rent soon.

And I also want to highlight uh some important organizational milestones.

On November, in November of 2025, uh the Tempe Coalition for Affordable Housing officially launched its brand.

And since then we've been operating at full capacity, maintaining a strong presence online on social media, attending public events and community leadership spaces, and we believe that our brand reflects the confidence, unity, and growth we aim to bring with our mission.

And then our team continues to build capacity as well.

So staff have graduated from or are actively participating in Lisk Phoenix's housing developer training institute, strengthening our ability to expand affordable housing in our community.

And I'm also a recent graduate of Auburn Universal Auburn University's Affordable Housing Development Boot Camp.

And finally, um we are proud to have been recognized by Arizona Community Foundation and Lisc Phoenix with the $50,000 support or grant for support of our work.

Looking ahead, we're currently developing a program that will allow other developers to apply for hometown for all funds, and that $50,000 will be put towards those efforts.

Mayor Woods, that concludes my remarks.

Thank you so much, Irma.

Any questions from the council or for uh other members of the board?

Yes, Vice Mayor Girl.

I don't have a question.

I just want to say that um the 73 permanent affordable housing units is amazing.

Has that how does it oh thank you?

The permanent um permanent affordable units of 73.

Um, do how does does that increase?

How what does that number look like in the last few years?

Thank you for that question, Vice Mayor uh Garland.

If I remember correctly, when I'd come on board, I want to say four years ago, nearly four years ago, um, we had uh nearly 50 units, and how we've continued to expand our portfolio um since my arrival is largely uh due to the hometown for all funds that the city um graciously grants um our nonprofit as well as um community development block grant funding um on my city side of the job where we purchase uh homes, blighted homes with that particular fund, transfer them to the nonprofit, and then we renovate them and put them out for uh permanently affordable housing.

I like the direction this number's going, so thank you.

Of course, thank you.

Thank you, Vice Mayor Garland.

Uh, anyone else any further comments or questions, for Arma?

All right.

Seeing none, I'll move on to item three B.

Tempe Coalition for Affordable Housing Financial Performance Update.

Let's see.

Teresa, you're on deck.

Yes.

Can could we please pull up the financial statements?

Okay.

Let's see.

Jason, do you have the financials handy?

Let's see.

I think that might be Christopher.

There we go.

Perfect.

Thank you so much.

Okay, Teresa, they're up now.

All right.

Very good.

Thank you.

Thank you, Mayor Woods, Council, and board members.

Um, in your packet, as well as on the screen here, you would have received the financial statements for the year ended December 31st, 2025.

I'll give you a brief overview and then take any questions that you may have.

We're looking at the asset side of our statement of financial position first.

Cash and readily readily available savings are approximately 2.8 million dollars at the end of the year.

Last year at this time, when we held our joint meeting, we talked to you about how we had recently developed an investment policy.

You can see some of the results of that now.

Our other current assets section that is next on the statement reflects the investments we have made.

We are trying to be very mindful as we go through the year of our cash position and take advantage of extremely safe near-term investments that allow our idle cash to work for us.

And these assets totaled a little over three million dollars at the end of the year.

And then our assets are rounded out, of course, with our real estate portfolio and some other miscellaneous items.

If you move on to page two, this is the liabilities and equity side.

We have very minimal liabilities, uh, under 100,000.

These are all related to our rental activities, expenses that need to be paid for the properties, and primarily um handled by our property management company.

Then of course, our net equity at the end of the year, 25 million.

So our total liabilities and equity were just under 25 million.

And if you'll move to the next page, that would be page one of our statement of activity.

The top portion consists of our rental revenue.

And as we noted last year, we're now able to reflect gross potential rents for all our properties owned, the amount that has been discounted to make these units affordable, and then also the amount that uh we have lost as rents to units that are currently vacant under renovation or are down from service for some other reason.

Those are our first three numbers here.

Um you also see, of course, the hometown for all money is coming in, and that's listed under contributions.

I won't go into detail on expenses.

I think they're pretty self-explanatory.

If there are any questions at the end on specific expenses, I'm happy to address that.

On page two of the activity statement, if you move to that again, very briefly.

This is uh the net of our new investment policy.

As you can see, um, investing that money, we have been able to earn 170,000 in the past year just by simply developing that policy.

Bottom line, we're on the good side to just under 2.5 million dollars for the statement of activity for 2025.

And I'm happy to address any questions you might have.

Sounds good, Teresa.

Thank you so much.

Any questions?

And I guess you know, looking at the agenda, Mr.

Anderson.

Uh, it looks like we're supposed to have the discussion on the next item from what I can tell, if I'm reading this correctly.

That was basically just a presentation, but the vote happens on item three C.

I just never seen anything written that way before, so uh it appears that way, Mayor.

Yes, I think um, but you have discretion as a presiding officer to combine items as you wish, or fine discussion.

So all right.

Well, I will not exercise too much discretion here since uh we've already had the presentation, which I guess then kind of uh finishes up item three B and I'll look to item three C to see if anyone here has any comments or questions on the financials.

None, okay.

So seeing it none, um, do I have a motion to accept the year end and financials?

So move.

Yes, uh, actually it's only the TCAH board that votes on this.

Oh, okay.

Interesting.

Okay.

I did not know that.

So okay, so it's only the board that actually votes on this.

So council, I guess we get to in a rare moment actually watch other people vote, not have to vote.

So all right, so then I'm gonna have to look to the one of the uh members of the board.

I guess they could make that motion and I'll withdraw whatever I just said.

Thank you, Mayor Woods, from our TCAH board members present.

I will entertain a motion to accept the financials presented by Teresa.

I'd like to make a motion.

Oh sorry.

Thank you.

Thank you.

First and second, any opposed none opposed.

The motion carries.

Thank you very much, board members.

Thank you, Mayor.

Thank you very much.

Appreciate it.

That brings me to item 3D, TCAH portfolio uh portfolio performance update.

And I guess Danielle, I'll turn this over to you.

Thank you so much, Mayor.

I will say that in May of 23 when MAB Affordable started managing for TCH, there's 52 units.

And now we're up to 73.

So it's very exciting news.

Three being fully renovated and three right now in the process being fully renovated.

And everybody saw the kind of renovation that happens with the open house.

Beautiful.

Can't wait till they come online.

Fifty-nine of the 73 units are occupied at this time.

We're 81.94% occupied.

There's 10 rentable vacants available, four applications pending.

So I'm hoping by mid-April we're up into the 90s by like April 15th and just soaring.

We are marketing and Craigslist, my housing search, affordable housing.com, and many of the city of Tempe organizations.

We're looking into AI, Leah AI with apartments list, 24-7 service.

No calls go unanswered.

So anybody needing information about the community, they'll get it 24-7.

$1.20 a unit.

It's not bad to get that kind of advertisement.

Annual turnover, 22 move outs or 30%.

Largest, there were six evictions, four moving out of state, two needing larger homes.

We had two people skip out, three transfers within the portfolio.

We did unfortunately have a couple of folks lose their job and two leave for personal reasons, divorce or separation.

The average stay is 2.5 years, with the longest resident being six years.

So they like what they see and have in Tempe Coalition for Affordable Housing.

Uh let's see.

Seven days max to turn a unit and about 48-hour turnover for approval of applications.

That is who manages for TCH.

We manage 34 affordable communities throughout the valley, total of 3,090 units.

That's what I have.

Wonderful.

Thank you so much.

All right.

Any comments or questions from anyone on the board or city council for uh Danielle on that item?

Yes, uh Council Breton.

Thank you, Mayor.

Um we're doing the asset overview next, or is it tied in separately or together?

That's what she's doing right now.

No, that's that.

I can do that.

Okay.

All right.

The presentation goes on.

So thank you, Danielle.

You're welcome.

For February 26, our rental income ended at 66,521.

Other income brought in, 2,970 for a net income of 69,491.

Operating expenses were 44,270 for a net operating income of 25,221.

There were 61 occupied units.

Ending occupancy was 80.55.

11 vacants at the time, six were made ready.

We showed one apartment.

It was a slow month in February, but it's definitely picked up in March.

Applied, we had two apps.

One was a return.

We did have a cancel or denial, unfortunately.

Net leases were one.

Um we had three movements, no move outs.

We had two leases expiring.

We renewed two.

We have 15 on month to month.

We are converting one by one.

That that numbers come down quite a bit over the last few months.

And resident delinquency was $6,403 at the end of the month.

No payables were open, every bill paid, and marketing discussed already.

Thank you.

Thank you.

Council Bretchen?

Thank you, Mayor.

Now I'm checking to see if I'm looking at the right sheet.

I'm looking at the asset overview, the financial highlights, and I'm looking at a variance that's in the negative.

I just trying to understand the numbers.

Which are you looking at, ma'am?

Rental income to budget.

Each line that's in red.

Yes, and there's a variance in the first line across of $30,207.

Yes.

The rental income, this is going to be adjusted.

There was a decrease in the market and the market rents, so we adjusted the budget accordingly.

So it actually the monthly budget won't be 96,000 anymore.

I don't have what the adjusted budget is going to be, but I could get that to Irma to provide to you.

But rents were adjusted.

So that negative 30,000 will be adjusted.

Sounds good.

All right.

Uh anyone else on council from the board has the uh additional comments or questions on item 3D.

Yes, Council Brahaj.

Oh.

Thank you.

Um so when you okay, when you say it's adjusted, meaning the exact number to Councilman Michael 30,27,000.

So that's bringing it down.

It will go down, yes.

So the budget had to change.

The monthly budget had to change.

Change, but the annual budget.

Will it be the annual or just the annual?

Everything will change, yes.

The monthly budgets have been adjusted, and so overall the annual as well.

So that's all been changed, and we can provide a adjusted number.

I just wanted to clarify that.

Thank you.

Yeah.

Councilman Bramberg?

Yes, thank you, Mr.

Mayor.

So I'm hearing you correctly.

Like we have some units that are still open, and you guys are trying to find somebody to move in.

Like what are the barriers?

Because we keep hearing that it we need so much more affordable housing, we need more affordable housing.

Like I'm shocked that there that there's not a wait list.

So what what what you know in your estimation?

Like what are the barriers right now?

The barriers have been backgrounds.

Getting them to pass the criminal and credit history and to secure 30% income.

They're responsible for 30% income for the rent.

So the qualifying criteria.

Council Brahaj.

Okay, and I I do understand what you're saying.

Is this something that um is there like do we have something open for our seniors?

So they because they get a certain percentage, you know.

Is this just broadly open or is it you know?

Oh, it's everybody who qualifies over the age of 18 and that can qualify for the unit pays 30 percent of their income for rent.

Sorry about that.

It's all ages.

Okay.

Okay, sounds good.

Any other comments, questions?

Oh, I guess I do have a council.

I do have one more comment.

So I know we have an issue with that.

Are we looking at our voucher people too?

I guess that's more for you to see if any of them can be transferred over to that.

Thank you for your question, Councilmember Hodge.

Um a good portion, uh, a good ratio of our actual residents do have housing vouchers.

And and we're another option for folks.

Thank you.

All right, any further comments or questions from the board or from the council?

All right.

Seeing none, I'll go to item four, closing remarks, announcements, and future meeting topics.

Any closing remarks that anyone has there any announcements people want to make, any future topics that anyone from the board of the council would like to see on a future agenda?

All right.

Hearing none, that brings me to item number five, which is adjournment.

We are adjourned at 423 p.m.

Thank you, everyone.