Staff Report
City Council
Item No. 5.A
Meeting Date: March 26, 2025
From: Andrew Firestine. Director of Community and Economic Development Title: 2024 Housing Element Annual Progress Report
RECOMMENDATION:
To receive the 2024 Housing Element Annual Progress Report and authorize its transmittal to the California Department of Housing and Community Development and the California Governor’s Office of Land Use and Climate Innovation.
BACKGROUND:
In accordance with Government Code 65400, all cities are required to prepare an annual progress report (APR) on the status and implementation of the Housing Element of the General Plan using forms adopted by the California Department of Housing and Community Development (HCD).
On June 28, 2023, the City Council unanimously approved Resolution 2023-21 adopting the Housing Element Update for the 2021-2029 planning period. As shown below, the Southern California Association of Governments (SCAG) allocated 2,549 housing units to Cathedral City through the RHNA process for the 2021-2029 Planning Period:
Regional Housing Needs Allocation 2021-2029
Income Category Units Allocated
Extremely Low Income 270
Very Low Income (<50% AMI) 270
Low Income (50-50% AMI) 353
Moderate Income (81-120% AMI) 457
Above Moderate Income (>120% of AMI) 1,199
Total Units 2,549
AMI = area median income. Riverside County median income = $75,300 This APR evaluates implementation of the 2021-2029 Housing Element programs as well as progress on housing production made during the previous calendar year (January 1, 2024 to December 31, 2024) towards meeting the RHNA. The APR is due annually by April1. The 2024 Housing Element Annual Progress Report is included as Attachment 1.
Separately, under the dissolution of redevelopment, housing successor agencies have an annual reporting obligation under California Health and Safety Code Section 34176.1(f) for the expenditure of its remaining Low and Moderate Income Housing Asset Fund (LMIHAF) for the development of affordable housing. The Housing Successor Annual Report for Fiscal Year 2023-2024 is provided for reference as Attachment 2. City-owned surplus lands are also reported in Table H of Attachment 1.
DISCUSSION:
The APR tracks the production of housing units by the number of entitlements approved, as well as the number of building permits issued and completed. These entitlements and building permits include applications submitted in 2024 as well as applications submitted in previous years but not approved until 2024. In 2024, the City approved entitlements and permits for single family dwellings, multi-family dwellings, and accessory dwelling units (ADUs).
As shown in the table below, in 2024 a total of 1,057 units were entitled, building permits were issued for 104 units, and building permits were completed for 54 units.
Summary of Housing Entitlements and Building Permits in 2024 Units by Structure Type Entitled Permitted Completed
Single Family Attached 0 0 0
Single Family Detached 459 63 48
2 to 4 Unit Structures 0 12 3
5+ Unit Structures 598 36 0
Accessory Dwelling Units 0 12 3
TOTAL 1,057 123 54
Building Permits Issued for Housing
While applications, building permits issued, entitlements approved, and completed units are all tracked in the APR, only issued building permits are used to track fulfillment of the RHNA.
Of the 123 building permits issued in 2024:
2.4% (3 units) are assumed to be affordable for extremely low- and very low-income households.
3.3% (4 units) are assumed to be affordable for low-income households. 3.3% (4 units) are assumed to be affordable for moderate income households. 91.0% (112 units) are assumed to be affordable for above moderate-income households.
None of the building permits issued in 2024 were subject to deed restrictions for affordability.
In absence of available data regarding rent or sale price for these permits units, all single and multi-family units were conservatively assumed to be market rate and affordable to households with above moderate incomes (120%+ of area median income). The 11 units categorized as extremely low-, very low-, low- or moderate income were issued for accessory dwelling units (ADUs).
Accessory Dwelling Units
In 2024, 12 building permits were issued for ADUs. None of these units were subject to deed restrictions.
As part of the City’s transition to online permitting, a field was added to the building permit application for new ADUs requesting the anticipated rent rate. This updated permit application was launched in July 2024, and therefore rent data was not available for all building permits issued for ADUs in 2024. Where this data was not collected, the affordability of ADUs was determined proportionally, consistent with the methodology used for the 2023 Housing Element APR, based on a study prepared by SCAG.1 Based on these assumptions for ADU affordability, the table below provides a summary of the number of building permits issued in 2024 relative to the RHNA.
Building Permits Issued in 2024 by Affordability
Income Category 2024 RHNA
Extremely Low Income 2 270
Very Low Income 1 270
Low Income 4 353
Moderate Income 4 457
Above Moderate Income 112 1,199
Total Units 123 2,549
6th Cycle RHNA Progress
The 2024 APR measures progress towards the RHNA on the fourth year (January 1 to December 31, 2024) of the 2021-2029 planning period. The table below summarizes the total number of building permits approved over the first four years of the current planning period, for each level of affordability, relative to the number of units allocated for the 6th Cycle RHNA.
Building Permits Issued 2021-2024
6th Cycle RHNA (2021-2029)
Building Permits IssuedIncome Category RHNA
2021 2022 2023 2024 Total to
Date
RHNA
Remaining
Needed
Extremely Low
Income
270 - - 4 2 6 264
Very Low Income 270 - - 2 1 3 267
Low Income 353 12 13 10 4 39 314
Moderate Income 457 - 6 10 4 20 437
Above Moderate
Income
1,199 46 48 107 112 313 886
Total Units 2,549 58 67 133 123 381 2,168
RHNA Progress Relative to Other Jurisdictions
As an indicator about Cathedral City’s progress in meeting the 6th Cycle RHNA, the below 1 This study made the following findings for the affordability of ADUs in San Bernardino and Riverside Counties:
15% of ADUs are affordable for extremely low-income households, 7.7% of ADUs are affordable for very low- income households, 34.8% of ADUs are affordable for low-income households, 34.8% of ADUs are affordable for moderate income households, and 7.7% of ADUs are affordable for above moderate-income households.
These percentages were used as the basis for classifying ADU affordability level.
Source: SCAG Regional Accessory Dwelling Unit Affordability Analysis, https://scag.ca.gov/sites/main/files/file- attachments/adu_affordability_analysis_120120v2.pdf?1606868527 (accessed March 2025). table compares the City’s progress with neighboring cities in the Coachella Valley. Each jurisdiction has a different RHNA target. Therefore, as a percentage, the below table provides housing production (building permits issued 2021-2023) relative to the number of units required by the RHNA allocation for each income category. Detailed tables showing the number of building permits issued in each jurisdiction are provided in Attachment 3.
Based on this measure, Cathedral City has overall made more progress towards its 6th Cycle RHNA than Desert Hot Springs or Coachella, but less progress than Palm Desert, Rancho Mirage, Indian Wells, La Quinta, and Indio. It should be noted that while several cities have made significant progress towards meeting RHNA targets for above moderate-income units, housing production is generally falling behind for units affordable to extremely low-, very low, low-, and moderate-income households.
RHNA Progress in Coachella Valley Cities
Percent of 6th Cycle RHNA Complete (as of 2023 Housing Element APR) Percent of RHNA Complete*Income Category
Cathedral
City
DHS RM PD IW LQ I C
Extremely Low Income 2% -- 0% -- 0% 0% 0%
Very Low Income 1% 0% 0% 63% 2% 0% 13% 4%
Low Income 11% 0% 0% 45% 4% 0% 15% 14%
Moderate Income 4% 38% 0% 13% 3% 1% 0% 7%
Above Moderate
Income
26% 3% 63% 80% 100% 100% 31% 7%
Total Units 15% 8% 22% 59% 28% 59% 17% 7%
*Based Total Units to Date for 2021-2023 relative to RHNA Allocation by Income Level, as reported in each city’s 2023 Housing Element Annual Progress Report.
FISCAL IMPACT:
No impact.
FIVE-YEAR STRATEGIC PLAN:
GOAL F – EMBRACING, INCLUSIVE COMMUNITY
Objective: Cathedral City is valued and respected as a community that welcomes and embraces diversity, has an abundance of high quality and affordable housing options and vibrant businesses. Our neighborhoods are attractive, well-maintained, and issues surrounding homelessness have been compassionately addressed with thoughtful, coordinated, and collaborative programs.
ATTACHMENTS:
Attachment 1: Housing Element Annual Progress Report 2024 Attachment 2: Cathedral City Housing Successor Annual Report FY 23-24 Attachment 3: RHNA Progress in Coachella Valley Cities