Tempe advances homeless solutions showing 32% reduction, approves sober living fraud task force

Tempe Council Endorses Homeless Solutions Surge While North Tempe Residents Demand Crackdown on Unpermitted Feedings; Sober Living Fraud Task Force Wins Unanimous Support

On January 12, 2024, Tempe City Council held a work study session that blended triumphant homelessness program data with sharp community conflict over neighborhood impact and unresolved jurisdictional strategy. Council heard robust statistics from the Hope Outreach and Tempe Works initiatives, moved unanimously to make permanent the Mill Avenue all-pedestrian crossing phase, and approved a four-pronged sober living fraud task force proposal. Yet the session underscored a fissure: North Tempe homeowners demanded city enforcement of permitting rules against Arizona Hugs for the Houseless, while downtown business leaders credited the city's same Hope team outreach for reducing encampments and disruption.

Key Speeches

"I believe that the homeless folks who never will never be able to stay off streets without actual housing first and supportive care… sadly many North Tempe citizens lives are now changing. Many have real concerns for safety in our neighborhoods avoiding Scottsdale Road businesses and even pumping gas." — Darlene Justice, North Tempe resident

"We know the strategies and tactics are working not only from data but from the comments we received from the downtown stakeholders, merchants, residents and employees. We applaud the city's homeless solutions initiatives and we are proud to be a willing partner in that effort." — Lori Foster, Downtown Tempe Authority interim president and CEO

"I am going to read you a slight list of people that I had a chance to talk to in my neighborhood… 100 people counting Paul and myself that support you guys and what you've done in our community for helping make it safer, cleaning it up our alleyways." — Lane Carway, North Tempe resident (reading petition in support of city leadership)

Timeline

Homelessness Solutions Update (Item 3B):

• Staff presentation: Tim Burch (Community Health and Human Services Director) and Jessica Wright (Homeless Solutions Manager) presented fiscal year 2023 data showing 32.5% reduction in individuals served via navigation/case management (1,861 to 1,257); 31.1% reduction in point-in-time counts (515 to 355); 39.4% reduction in chronically homeless (861 to 562). Hope team conducted 16,000+ engagements in December 2023 alone, with 38% service acceptance rate and 32% resulting in shelter, family reconnection, or direct housing. Tempe Works program reported 24 graduates, 380 total participants touched. Hope team expanded to 24/7 operations with 13 of 15 specialist positions filled. Regional partnerships include Maricopa Association of Governments committee leadership roles and coordinated entry system participation.
• Council questions: Randy Keating requested total participant and outcome data tracking for Tempe Works; requested literature on pet accommodation policies to address misconception that individuals must surrender animals. Berdetta Hodge requested education partnership expansion (requested Mesa Community College and apprenticeship program outreach). Arlene Chin asked about comparative data with other cities (staff noted regional standardization discussions ongoing). Vice Mayor Jennifer Adams inquired about pay retention strategies (staff noted pay compression remediation already implemented). Council members requested enhanced quarterly reporting on online dashboards.
• Vote: Unanimous council support for continuing programs; multiple members praised staff performance and requested expanded metrics.

All Pedestrian Phase at Mill and Fifth (Item 3A):

• Staff presentation: Ellie Ven (Transportation Staff) reported six-month pilot extension data: 31% reduction in travel times vs. prior year; 57% public support; decreased non-compliance from March baseline; no increased safety concerns per Tempe Police. Lieutenant Hayes confirmed congestion reduced to Seventh Street (vs. Hayden Ferry building previously), noted decreased right-turn-on-red violations, but flagged pedestrian walk-signal compliance and bicycle phase compliance as remaining education opportunities. Downtown Tempe Authority survey of seven nearby businesses showed overwhelming preference for permanent all-pedestrian phase.
• Council discussion: Berdetta Hodge expressed enthusiasm for option A (permanent phase); Randy Keating noted cultural behavior change since March and reduced PD concerns; Garland praised the feature and suggested potential future installation at Sixth Street and Mill; Arlene Chin supported option A.
• Vote: Unanimous direction to maintain and enhance the permanent all-pedestrian phase (Option A) with improved striping, audible push buttons, larger signage, and flexible signal timing plans.

Sober Living Task Force Update (Item 3C):

• Staff presentation: Tim Long (task force lead) presented six-month investigation spanning multiple city departments plus Phoenix PD, Arizona AG office, and Tempe Police. Over 400 Arizona providers suspended/terminated for fraud; 168 additional fraudulent providers self-reported to 211 hotline after media exposure. Crisis involves 6,200+ individuals, predominantly no longer tribal-affiliated (fraud shifted from targeting tribal members to general population). Estimated $650 million fraud in last fiscal year, potentially $2 billion over investigation lifespan. Two operational models identified: (1) residential homes with white vans transporting clients, and (2) hotel/motel operators leasing rooms with fraudulent Medicaid billing. Task force recommended four initiatives: (1) general business license requirement; (2) systemic property tracking across city departments; (3) excessive call-for-service ordinance modeled on loud party ordinance with education, safety planning, and enforcement escalation; (4) support for state legislation closing DHS loopholes (ownership transfer prevention, accelerated initial inspections, increased fines, public database of sober living homes).
• Highlighted context: Michael Beata, library security guard, initially identified suspicious activity; City of Surprise model jurisdiction presented successful 90% reduction in legal operators via business licensing. Shaar Warner (Intergov) assisting state legislation dialogue. Senator Heali from Navajo Nation pursuing complementary state-level efforts. Governor committed at State of the State breakfast to closing loopholes.
• Council discussion: Jennifer Adams and others highlighted the Rata Inn in North Tempe (200+ individuals), where Jennifer Adams and Arlene Chin visited and encountered armed guards; noted ongoing investigation with AG and FBI. Councilmember Garland praised security guard vigilance, City of Surprise partnership, and recommended prioritizing ordinance exploration and ownership-level fines. Arlene Chin requested clarification on fine assessment and recommended targeting property owners rather than operators. All council members expressed support.
• Vote: Unanimous approval for task force subgroups to develop business license requirement, property tracking system, and ordinance language; unanimous commitment to support state legislation changes.

Public Comment (6 speakers, ~20 minutes total):

Opposition

Number of speakers against unpermitted feedings: 4 (Darlene Justice, Kim Gaffney, Bruce Nester, Kathy Gil)

Main concerns:

1. Safety risk: Unpermitted gatherings of 200+ individuals in parks raise crowd control and security concerns for residents and families.
2. Environmental and health hazard: Discarded needles, human excrement, damaged infrastructure (cut fencing, stolen brass sculptures, stripped wires), trash accumulation (Polar Pop cups, straws, foil, Q-tips, sleeping bags, cardboard), requiring ongoing park worker cleanup and resident participation in Keep Tempe Beautiful initiatives.
3. Park access denial: Families and community groups avoiding renovated ramadas at North Moore Park and Papago Park due to safety and sanitary concerns; historically reserved facilities now perceived as undesirable.
4. Ecological damage: Camping in Sonoran Desert Preserve causes compacted soil, broken tree branches, invasive stink nets in non-recreational areas; fires threaten vegetation.
5. Neighborhood displacement and business impact: Residents avoiding Scottsdale Road businesses, Goodwill, Circle K, and Starbucks due to transient presence; outdoor/indoor seating closed at Starbucks; bus stop threatened with closure; intimidation and harassment of employees and customers.
6. Feeding locations inadvertently enable regional migration: Unpermitted feedings (e.g., Arizona Hugs for the Houseless at Moore Park) attract and sustain unsheltered populations in North Tempe rather than channeling them to structured services; visible evening migration of transients down College/Scottsdale/Curry Road toward feeding sites.
7. Legal tool underutilized: Special events permitting process exists but is not being enforced; feedings should require permits like other gatherings.

Most compelling arguments:

• Darlene Justice's 25+ years of North Tempe residency and prior homeless advocacy lent credibility; she framed compassion for homeless populations versus neighborhood safety as a false choice, requesting balanced enforcement.
• Kim Gaffney's Desert Conservation Commission platform and detailed photographic/trash documentation (Polar Pop cups, needles) illustrated ecological and public health impacts.
• Bruce Nester's framing of "balance" and collaborative dialogue (not malice toward homeless individuals) appealed to council pragmatism.

Organized groups: Arizona Hugs for the Houseless (the subject organization, not present to defend).

Support

Number of speakers in favor: 2 (Lori Foster, Lane Carway; Benjamin Jeffrey and Kathy Gil, while expressing support for services, also acknowledged neighborhood concerns; overall favorable reception to Hope team initiatives)

Main themes:

1. Proactive Hope team response: 24/7 operations, encampment reporting tool, care line availability, quick response times reduce disruption and provide connection to services.
2. Downtown business benefits: Fewer disruptions, cleaner streetscape, more welcoming environment for residents, visitors, workers; merchants credit city's preventive strategy over reactive response.
3. Data-driven results: Measurable reduction in unsheltered counts, encampments, and calls for service in downtown district documented daily by Downtown Tempe Authority safety patrol.
4. Partnership effectiveness: Downtown Tempe Authority, safety patrol, community responders, Tempe PD, EMS, and Tempe Works collaboration demonstrates institutional coordination.
5. Comparative ineffectiveness of large public feedings: Large gatherings and unpermitted feedings do not reduce homelessness; they increase disruption for "several days prior and after" including trespassing, theft, and fighting in central business district.
6. Regional success over time: Lane Carway's petition of 100+ North Tempe residents supporting Corey D Woods and City Manager Rosa for "swift action and implementation" over past three years; documented neighborhood improvement.

Most compelling argument: Lori Foster's position as interim president and CEO of Downtown Tempe Authority and her statement that "just yesterday I had a long conversation with a longstanding downtown Tempe merchant and we were talking about how proud we are to be in a town and have in have a business in a city that does not stand for people sleeping on the sidewalk" positioned the city's Hope response as both compassionate and effective, contrasting with the implicit failure of unpermitted feedings.

Project Details

Homelessness Solutions Programs:

• Case number: Ongoing priority 3.28 (ending homelessness) and 3.34 (community health and well-being)
• Operator: City of Tempe, Community Health and Human Services Department
• Key initiatives:
  • Hope Outreach: 24/7 street outreach, care and hope line, encampment reporting tool, 13 of 15 specialist positions filled, 16,000+ annual engagements
  • Tempe Works: Employment + housing program, 24 graduates, 380 total participants touched, partnerships with Tempe Elementary School District, Arizona Faith Network, Maricopa County Arizona at Work
  • Bridge shelter: Transitioned from Super8 lease to city-owned facilities (Susio), partnered with Mercy House for case management, 87% successful transition rate
  • Regional coordination: Maricopa Association of Governments local jurisdiction committee co-chair (Jessica Wright), Continuum of Care board representative (Tim Burch), MAP tool training (replacing 10-year-old SPDAT), coordinated entry system
• Budget/funding: Not specified in transcript; pay compression adjustment implemented for staff retention
• Timeline: Pilot presentations in March 2023, extended June 2023, expanded 24/7 operations August 2022, Mercy House onboarded October 16, 2023, Susio dual occupancy conversion December 2023, point-in-time count January 23, 2024

Sober Living Task Force:

• Case number: N/A (task force, not development)
• Lead agency: City of Tempe (multiple departments), Phoenix Police, Arizona AG Office, Arizona Department of Health Services
• Partners: City of Surprise (model jurisdiction), Intergov (Shaar Warner), Navajo Nation (Senator Heali), Tempe Police Department, Tempe Fire, Arizona Faith Network
• Scope: 6,200+ individuals across Arizona fraudulently placed; 400+ providers suspended/terminated; 168 additional identified; estimated $650M–$2B fraud
• Recommendations: (1) General business license for sober living operations; (2) Systemic property tracking (electronic database across departments); (3) Ordinance on excessive calls for service (education, safety planning, enforcement escalation); (4) State legislation support (DHS loopholes, accelerated inspections, fine increases, public database)
• Timeline: Issue identified 2019 (tribal leaders); Goodyear PD estimate (2020) 2 homes, now ~150; task force kicked off June 2023 (council approval), monthly meetings through January 2024, subgroups to develop ordinance and licensing framework

Mill Avenue All-Pedestrian Phase:

• Location: Mill Avenue and Fifth Street, downtown Tempe
• Current status: Pilot March–April 2023, extended six months (June–December 2023)
• Data: 31% reduction in travel times vs. prior year; 57% public support; non-compliance decreased since March; no increased safety concerns (per Tempe Police); 15% of crossings use diagonal feature; congestion reduced to Seventh Street (southbound) vs. Hayden Ferry building
• Enhancements approved: Improved diagonal striping (thermoplastic white tape → permanent paint), audible push buttons, larger metal signage, flexible signal timing plans for events
• Alternative considered: Option B (revert to standard phasing) rejected unanimously

Vote Breakdown

Homelessness Solutions Update:

• Final: Unanimous support (no formal vote; consensus direction)
• All council members present: Mayor Corey D Woods, Vice Mayor Doreen Garlid, Jennifer Adams, Nikki Amberg, Arlene Chin, Berdetta Hodge, Randy Keating
• Action: Continued funding and expansion of Hope and Tempe Works; directed enhanced data tracking on online dashboards

All Pedestrian Phase (Item 3A):

• Final: Unanimous (all council members)
• Yes: Mayor Corey D Woods, Vice Mayor Doreen Garlid, Jennifer Adams, Nikki Amberg, Arlene Chin, Berdetta Hodge, Randy Keating
• Action: Option A (maintain and enhance permanent pedestrian phase)

Sober Living Task Force (Item 3C):

• Final: Unanimous (all council members)
• Yes: Mayor Corey D Woods, Vice Mayor Doreen Garlid, Jennifer Adams, Nikki Amberg, Arlene Chin, Berdetta Hodge, Randy Keating
• Action: Approved four recommendations; authorized task force subgroups to develop business license requirement, property tracking system, call-for-service ordinance, and state legislation support strategy

Outcome & Next Steps

Homelessness Solutions:

• Continued funding and expansion approved unanimously; staff to develop and post quarterly data dashboard on city website showing Tempe Works outcomes (participants, graduates, employment by sector, dropouts); enhanced collaboration with Mesa Community College, apprenticeship programs, and building trades on education pathways; constable coordination on eviction prevention; continued regional coordinated entry system participation; point-in-time count scheduled January 23, 2024 (5:30 a.m. start, city provides volunteer breakfast); regional heat relief launch meeting held January 12; local heat relief coordination meeting scheduled for later in month.

All Pedestrian Phase:

• Permanent installation directed; enhanced striping (thermoplastic tape to be replaced with permanent paint), audible push buttons at all corners, larger permanent signage to be installed, flexible signal timing plans to be developed for events and special operations. No continuance or reconsideration anticipated.

Sober Living Task Force:

• Four task force subgroups established to develop: (1) general business license ordinance for sober living operations; (2) systemic electronic property tracking database spanning code enforcement, fire, police, and human services; (3) excessive call-for-service ordinance (modeled on loud party ordinance) with education, safety planning, and progressive enforcement/fines, with ownership-level fine assessment recommended; (4) state legislative support strategy for Arizona Department of Health Services loopholes (ownership transfer prevention, accelerated initial 30-day inspections, increased fine amounts, fine payment before relicensing, public database of sober living homes). Subgroups to report back within unspecified timeline (likely next meeting cycle); city to continue coordination with Phoenix on regional service-location strategy; staff to provide future agenda item on regional feeding locations and neighborhood impacts.

Controversies & Context

Neighborhood versus Downtown Divide on Homeless Services: The meeting crystallized a fundamental tension in city homelessness policy: North Tempe residents see unpermitted charitable feedings by Arizona Hugs for the Houseless as enabling regional homelessness and degrading parks and neighborhoods, while downtown business leaders credit the city's proactive Hope team response (the same team) with reducing disruption and creating safety. No council member explicitly sided with residents' demand to halt feedings; instead, Corey D Woods and City Manager Rosa committed to "regional coordination with Phoenix regarding service locations" and future discussion, implying a deferred, intergovernmental solution rather than immediate Tempe enforcement.

Arizona Hugs for the Houseless Not Present: The organization conducting unpermitted park feedings (reportedly 200+ attendees) made no appearance to defend its activities or explain permitting status. This absence left council without direct information on whether permits were sought, denied, or never requested.

Sober Living Fraud Scope Understated in Public Consciousness: The $650 million annual fraud and 6,200+ individuals affected appears to be a largely unknown crisis outside specialist circles. Library security guard Michael Beata's initial identification via suspicious vehicle observation and Darlene Justice's and Kim Gaffney's focus on neighborhood feeding disruptions suggested the public conflates homelessness service sites (some legitimate) with sober living fraud (a distinct criminal enterprise), indicating a need for public education.

Pay Compression and Staff Retention: Tim Burch revealed staff turnover due to competitor recruitment ("poached") and summer hiring challenges (115-degree heat deterring street outreach applicants), yet defended Tempe's pay as competitive with "much larger competitors." This suggests persistent staffing fragility despite pay adjustments.

Regional Coordination Gap: City Manager Rosa acknowledged ongoing Phoenix discussion on service locations but did not specify mechanisms, timelines, or authority to enforce cross-jurisdictional coordination. Council member Navarro's request for "better locations" and zonal analysis suggests staff had not yet delivered a cohesive regional map of service sites versus neighborhood impact.

State Preemption on Sober Living Licensing: DHS loopholes (unlimited ownership transfers, infrequent inspections, low fines) highlighted the limits of city-level enforcement. Task force strategy hinges on state legislation passage—a dependency the city cannot control but committed to "support," suggesting advocacy over direct action.

Duration

• This item (Homelessness Solutions): ~90 minutes (presentation + extensive council questions + public comment)
• All Pedestrian Phase: ~20 minutes
• Sober Living Task Force: ~45 minutes
• Total meeting: Approximately 2.5–3 hours (work study session, not full council vote agenda)

Other Notable Items

Positive Neighborhood Recognition (Lane Carway petition): North Tempe resident Lane Carway read the names of 100+ neighbors supporting Corey D Woods and City Manager Rosa's leadership on homeless solutions over the past three years, documenting neighborhood improvement and swift city response—a powerful counternarrative to opposition speakers and rare organized expression of municipal appreciation.

Mill Avenue All-Pedestrian Phase Expansion Interest: Multiple council members expressed interest in replicating the successful Mill and Fifth design at Sixth Street and Mill, suggesting future agenda items on downtown pedestrian infrastructure.