Agenda - 11-05-2009 - 41 - Laserfiche WebLink

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4 PROPOSAL FOR THE DISSOLUTION OF AFFORDABLE RENTALS, INC AND TRANSFER OF PROPERTIES TO EMPOWERMENT, INC Background: Affordable Rentals, Inc (ARI) was incorporated in September 2001, with the purpose, as stated in the ARI Bylaws: The purpose of Affordable Rentals, Inc. is to develop and manage permanent, affordable rental housing in Orange County....to help alleviate the immediate need for rental housing for residents with family incomes at 30%-50% of the area median income. Current Status of ARI: • We, the Board of Directors of ARI, are proud that we have succeeded in meeting our goal by purchasing 15 housing units which are available to families in our communities under the terms of our Bylaws. • We are also proud that we are now a viable and sustainable organization, as shown by our 2009 budget, attached. • We can continue to operate on this basis well into the future. • For most of our history, more than five years, we have functioned as a volunteer Board with no paid staff. Strategic Planning: Reasons for Dissolution and Transfer of Properties From ARI's perspective, while we are self-sustaining and will continue to be, we cannot see an easy path to further growth. • With no executive director, fundraising is difficult. • The Board members have limited time and ability to pursue fundraising and we think that major private sector donors will be reluctant to fund a volunteer organization. • At our present level of revenue, we cannot foresee a time when it will be possible to hire staff. We feel that ARI has succeeded in its mission but that its future is limited and that for the benefit of all concerned, we should dissolve. ARI can meet the terms of its Development Agreement with Orange County by transferring properties to EmPOWERment, another 503(c)(3) organization serving families with income not exceeding 50% of the area median household income.