Tempe Coalition for Affordable Housing reports $5.6 million cash position, 70-unit portfolio and new 14-unit acquisition

The Tempe Coalition for Affordable Housing reported on its holdings, recent acquisitions and year-end finances at a joint meeting with the Tempe City Council.

Irma Holland B. Kane, TCAH board president, told the council that "we're referred to as the city's affiliate, and essentially, we're an extension of the Tempe Housing Authority," and that the coalition is structured to operate with flexibility similar to a private developer to acquire property and hold permanently affordable units.

The coalition currently manages a 70-unit portfolio with about $16,600,000 in assets, Kane said. The holdings include nine single-family homes, one apartment, 38 condominiums, three duplexes and one triplex distributed through Tempe. Kane said 70% of households served are extremely low- or low-income and that more than 50% have children.

Teresa Carmichael, speaking for the coalition's finance team, said the organization ended the year with a cash position "of about 5,600,000.0 at the end of the year." She said the board approved a short-term investment policy at the February 2024 meeting to earn income on idle funds while the coalition identifies acquisitions. Carmichael said the coalition recorded a nearly $3.6 million surplus for the year on its statement of activity and noted "a gain or loss and disposal" tied to the sale of a property that was not suited to the portfolio. She also said the coalition deeded the property at 2303 Maryland back to the City of Tempe in February 2024.

Kane said the TCAH board approved acquiring a 14-unit apartment building at 1825 East Don Carlos and that staff are preparing an RFP for redevelopment ideas on three vacant lots the coalition owns. Two housing units were transferred to the coalition using City of Tempe Community Development Block Grant (CDBG) money; coalition staff said renovations on those units are wrapping up and the homes will be available for rent soon. Kane also described a Feb. 12 event hosted to showcase renovation work supported by Hometown for All donations.

Danielle Amorosa, regional manager for MAB Affordable for the Tempe Coalition for Housing, reported operational details for the managed units. She said "out of the 10 rental vacants we have available, we have 6 applications in process and anticipate for those to be moved into by 03:15, only leaving us with 4 available units to rent that we anticipate to have occupied by the March." Amorosa added that 13 units moved out in 2024, which she described as "pretty low turnover," and that the most common reason for move-out was households needing larger homes.

During council discussion, Vice Mayor Doreen Garland asked whether federal dollars reflected in the portfolio could create problems if federal funding changed. Garland said: "Are there any like federal dollars to state or federal dollars directly to us that are reflected in this portfolio that might cause a problem moving forward with the things that are happening in our federal government right now?"

Kane answered that TCAH itself does not receive direct federal support but that many tenants are voucher holders: "a good many of our, tenants are voucher holders. And should, anything run amok with that programming, it would roll downhill to us as property managers." When asked whether the coalition has investigated proactive measures, Kane said they have not yet done so and that responses would depend on actions by the housing authority. Councilmember Fredetta Hodge suggested the coalition also "try to educate our owners" so landlords and tenants understand possible future changes.

Kane said the coalition has finalized an official logo and is developing a website and marketing materials to support its mission of preserving permanently affordable housing in Tempe.

The joint meeting included brief Q&A and no formal council votes on coalition actions. The next joint meeting date has not been scheduled.