Staff Report
City Council
Item No. 3.D
Meeting Date: July 9, 2025
From: Kevin Biersack, Financial Services Director
Title: Agreement with CVAG for Homelessness Services
RECOMMENDATION:
To approve an agreement with the Coachella Valley Association of Governments (CVAG) to provide $125,000/year for the next three fiscal years, to support the CV Housing First program addressing regional homelessness.
BACKGROUND:
CVAG has overseen the CV Housing First program since 2017, which has proven successful in helping homeless individuals and families across the Coachella Valley. In 2021, CVAG transitioned to an in-house program. This change has already brought about increased responsiveness and capacity in the Coachella Valley, particularly as it pertains to assisting local law enforcement and public health workers with homeless services. The transition to an in-house program has also given CVAG an opportunity to focus its efforts on clients who might not be able to get help elsewhere.
The CV Housing First uses two primary methods to provide clients with housing solutions:
rapid resolution and crisis stabilization units. Rapid resolution is an urgent, cost saving solution staff uses to help overcome the barriers that keep people from getting housing. This could include options such as helping them secure their identifying paperwork, which then can help them qualify for benefits. It also includes sorting out the process for housing, medical, mental health, substance abuse, employment, and mainstream benefits. At the same time, CVAG continues to use the crisis stabilization units to connect individuals to housing. These are apartments and hotel rooms where clients stay, up to 90 days, that keep them off the streets. Through case management and frequent interactions with the team, CVAG is helping them achieve the goal of permanent housing, programs, and family reunification.
Cathedral City has participated as a funding partner in the program, along with all the other Coachella Valley cities, since the program’s inception. The City of Cathedral City has contributed $100,000 to the CV Housing First program since Fiscal Year 2021-2022.
DISCUSSION:
At its November 2024 meeting, the Homelessness Committee reviewed the level of contributions member jurisdictions of the Coachella Valley Association of Governments (CVAG) make to the CV Housing First program. Based on the Homelessness Committee’s recommendation, the CVAG Executive Committee on December 2, 2025 authorized the Executive Director to execute memorandums of understanding (MOUs) with member jurisdictions to increase the CV Housing First contribution to $125,000 in Fiscal Year 2025- 26 and provide for annual inflation adjustments that are reviewed by the Homelessness Committee. The Executive Committee also asked for further review of this issue by CVAG’s Finance Committee.
The current rate of contributions dates back to 2009. CVAG used these contributions to fund its regional homelessness programs – first Roy’s Desert Resource Center, and then later programs that evolved into CV Housing First. This process has historically involved CVAG staff sending a request to each city and Tribal Nation. The County of Riverside, which has been instrumental in helping CVAG secure additional funds through grants, has an agreement for general fund contributions through Fiscal Year 2025-2026 that provides $359,711 annually. Sometimes the participating jurisdictions approve the request as part of the annual budget; other times, it is done through a separate action or a memorandum of understanding. Some have done this based on calendar year, and others on fiscal year – requiring additional record keeping at CVAG.
The annual contribution requests to cities have remained consistent around $100,000 for more than 15 years and have not increased with rates of inflation. Until Fiscal Year 2023-24, CV Housing First operations were fully funded by these contributions, including a now-ended contribution from the Desert Healthcare District/ Foundation, as well as occasional grants.
This allowed CVAG to develop a fund balance and start planning for future needs. As rents of the crisis stabilization units continue to increase and other costs go up, the program is now operating at a deficit.
CVAG’s Finance Committee met on February 24, 2025, and staff sought additional direction to address the questions raised by the Executive Committee at its December meeting related to equity. The Finance Committee is appointed by the Executive Committee and they each serve three-year terms. It is comprised of three Executive Committee members (currently Agua Caliente Band of Cahuilla Indians Tribal Chair Reid Milanovich; Rancho Mirage Mayor Ted Weill and Coachella Mayor Steven Hernandez) and three City/County/Tribal Nation managers (La Quinta City Manager Jon McMillen; Blythe Interim City Manager Mallory Crecelius; and, at the time, Desert Hot Springs City Manager Frank Luckino).
The main consideration when the Finance Committee met in February was whether an across-the-board rate should continue, or whether a rate should fluctuate across the cities based on various factors such as population size, figures in the Point in Time Count, historic contributions to affordable housing or economic capacity. The Finance Committee’s direction was to leave a singular rate across the board. This acknowledges the interconnectedness of communities in the Coachella Valley and reinforces the idea that reducing homelessness in one area may reduce strain on others.
Based on this direction, CVAG staff has finalized a draft memorandum of understanding that will be circulated to member jurisdictions. Long-term funding agreements will ensure financial stability for the program and avoid the uncertainty – and significant staff time – that comes with the traditional process of asking cities for funds each year. CVAG staff has consulted with Legal Counsel, who notes there is no legal impediment to cities entering into a multi-year commitment. Additionally, the California Constitution debt limit only prohibits a multi-year contract where the funds to pay the full contract are not on hand, and that the amount of this proposed MOU does not appear large enough to create that concern.
Cathedral City Staff recommends the Memorandum of Understanding be continued for three years at the $125,000 level of contribution as requested by CVAG to maintain funding and keep the program sustainable. Identical MOU agreements are being circulated to all participating member agencies for approval by their respective governing bodies. The agreement may be canceled with 60 days notice before the start of the next fiscal year.
FISCAL IMPACT:
The Adopted Biennial Budget for Fiscal Years 2025-2026 and 2026-2027 includes $125,000 for the CV Housing First program for each year. The third year of the MOU for Fiscal Year 2027-2028 will be addressed in the next biennial budget.
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME or
ONGOING
2025-2026 CV Housing
First Program
100-100-110-
113-8650-8658 $125,000 ONE TIME
2026-2027 CV Housing
First Program
100-100-110-
113-8650-8658 $125,000 ONE TIME
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:
1. CVAG Staff Report
2. CV Housing First Memorandum of Understanding