Tempe Coalition for Affordable Housing reports $5.6 million cash position, 70-unit portfolio and plans to prioritize 2025 acquisitions

The Tempe Coalition for Affordable Housing (TCAH) reported at a joint meeting with the Tempe City Council that it holds about $5.6 million in cash, manages a 70-unit affordable housing portfolio and will prioritize acquisitions and a 2025 development strategy.

TCAH board president Irma Holland B. Kane told the joint meeting that the coalition is structured to operate with flexibility outside typical U.S. Department of Housing and Urban Development limitations, allowing it "to acquire real property, secure loans, qualify for 501(c)(3) status" and to hold properties "as permanently affordable and workforce housing units for the community." The board said its portfolio’s total assets are about $16,600,000.

Why it matters: TCAH said it aims to preserve permanently affordable housing in Tempe and to quantify the subsidy it provides tenants; council members raised concerns about the coalition’s exposure if voucher funding is disrupted at higher levels of government.

Key financial and portfolio details - Cash position: "about 5,600,000.0 at the end of the year," according to Teresa Carmichael, the staff presenter for the financial update. - Annual operating result: Carmichael reported an approximately $3.6 million excess for the year on the statement of activity. - Revenue reporting: TCAH said it has revised its revenue section to display gross potential rent (market value) for properties and to quantify tenant subsidy and vacancy loss to better show mission impact in dollars and cents. - Asset and portfolio composition: TCAH reported owning 70 units in total and assets of about $16,600,000, which the board said are distributed as 9 single-family homes, 1 apartment, 38 condominiums, 3 duplexes and 1 triplex. - Recent and planned acquisitions: The board approved acquisition of a 14-unit apartment building at 1825 East Don Carlos and said it will undertake a prioritization exercise later in the year to set acquisition and development strategy for 2025. - Vacant lots and redevelopment: TCAH owns three vacant lots in established neighborhoods and is drafting a request for proposals to solicit development ideas from the private developer community. - Transfers and disposals: The coalition transferred the property at 2303 Maryland back to the city in February 2024, which appears as a donation line on financial statements, and recorded a gain/loss on disposition for the property at 2423 Stepachee that Carmichael noted on the financials. - Short-term investment policy: The board approved a short-term investment policy at its February 2024 meeting to earn income on idle cash while seeking acquisitions.

Portfolio operations and occupancy Danielle Amorosa, regional manager for MAB Affordable for the Tempe Coalition for Affordable Housing, said TCAH manages the 70 units and reported that of 10 rental vacancies, 6 applications were in process and expected to move in by mid-March, leaving four units still available that the manager expects to lease soon after renovations are completed. Amorosa said recent renovations were showcased at a Feb. 12 Hometown for All event.

Questions and risk discussion During announcements, Vice Mayor Doreen Garland and Councilmember Nikki Amber asked whether federal funding changes could affect tenants who rely on vouchers. Irma Holland B. Kane said TCAH does not receive direct federal support but that many tenants are voucher holders and that disruptions in voucher funding would "roll downhill to us as property managers." She said proactive contingency steps have not been investigated and that any response would depend on the actions of the housing authority. Councilmember Fredetta Hodge asked whether TCAH could also provide education to property owners about possible changes so landlords and tenants are better prepared.

What the meeting did not decide There were no formal votes or directives recorded to start contingency programs or to change property-management policies at this meeting. The board announced an upcoming internal prioritization exercise for 2025 acquisitions but did not adopt a final acquisition plan at the session.

Next steps TCAH will proceed with the RFP for redevelopment of the three vacant lots, complete renovations on recently acquired units and finalize its 2025 acquisition and development prioritization later this year. The next joint meeting date was not scheduled at the session.