The Phoenix City Council authorized the City Manager to enter into an Affordable Housing Loan Program Agreement to provide up to $500,000 in HUD HOME funds to Bethel Development, Inc. for the Verano Terrace II development at 1141 W. Monterosa Street. This financing will support the new construction of a 25-unit affordable rental community, serving households at or below 60% of AMI with at least 11 units reserved for persons with disabilities. The Housing Department received seven proposals in response to its November 2024 Call for Interest, evaluating them on developer experience, project merits, financial feasibility, and impact. Verano Terrace II was selected alongside four other projects to receive funding commitments contingent upon underwriting, environmental review, and availability of federal HOME funds. Total development costs are estimated at $10,424,230, with additional financing sources including permanent debt and Low-Income Housing Tax Credit equity. Loan execution is anticipated in Fiscal Year 2025-26, with disbursements over a two-to-four-year period. Community outreach included required neighborhood meetings to inform residents of the proposed development. The Housing Department’s underwriting guidelines will govern loan terms, with no impact to the General Fund. The project aligns with city priorities for affordable housing targeting special needs populations and CHDO-qualified developers.