Title
Phoenix Starfish Place Corporation Amendment
Description
Request to authorize the City Manager, or his designee, to amend Phoenix Starfish Place Corporation's Articles of Incorporation and Bylaws to seek federal tax-exempt status. There is no impact to the General Fund.
Report
Summary
In Fall 2017, through an innovative partnership with Arizona State University's (ASU) Office of Sex Trafficking Intervention Research, the City opened Phoenix Starfish Place. The first of its kind in Arizona, Phoenix Starfish Place is a 15-unit permanent supportive housing community dedicated to the healing and empowerment of human trafficking survivors. The Housing and Human Services departments partnered with ASU to design and implement social service programming to promote healing in a trauma-informed environment, and assist residents on their journey to recovery and self-sufficiency. Seven families with children ranging from ages one to 11 currently reside at Phoenix Starfish Place. Since moving on-site, all seven survivor heads of household have obtained employment.
Phoenix Starfish Place is owned by a Housing Department instrumentality known as Phoenix Starfish Place Corporation (the Corporation). To provide supportive services and maintain the site, Phoenix Starfish Place receives funding from federal sources, grants, and donations. The Housing Department would like to improve its ability to attract donations and obtain grants for the site by amending the Corporation's Articles of Incorporation and Bylaws, and seeking recognition of tax-exempt status from the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code. On March 14, 2018, the Corporation's Board of Directors approved the amendments needed to apply for federal recognition of tax-exempt status, subject to City Council approval. Staff requests City Council approval to amend the Articles of Incorporation and Bylaws to permit the Corporation to apply to the IRS for recognition of tax-exempt status.
Financial Impact
There is no impact to the General Fund. Filing fees will be paid from the property's operating account. In addition, federal funds, grants, and donations will be used to fund resident services and ongoing operations.
Concurrence/Previous Council Action
This item was heard at the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on April 17, 2018, and approved by a vote of 3-0. On Dec. 14, 2016, City Council authorized the Housing Department to acquire the property and create an instrumentality of the City of Phoenix to serve as the ownership entity.
Location
Address: Confidential
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Housing Department.