Staff Report
City Council
Item No. 5.A
Meeting Date: March 25, 2026
From: Dominique Camps, Associate Planner
Title: 2025 Housing Element Annual Progress Report
RECOMMENDATION:
To receive the 2025 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 state and implementation of the Housing Element of the General Plan using forms adopted by the California Department of Community and Economic 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 the City through the Regional Housing Needs Allocation (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 = $103,900 for 4-person household 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, 2025 to December 31, 2025) towards meeting the RHNA. The APR is due annually by April 1. The 2025 Housing Element Annual Progress Report is included as 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 applied for, issued and completed. These entitlements and building permits include applications submitted in 2025 as well as applications submitted in previous years but not approved or completed until 2025.
In 2025, as shown in the table below, no entitlements were approved for residential units, building permits were issued for 295 units, and building permits were completed for 195 units.
Summary of Housing Entitlements and Building Permits in 2025 Units by Structure Type Units Entitled Units Permitted Units Completed Single Family 0 131 69
2 to 4 Unit Structures 0 0 1
5+ Unit Structures 0 97 97
Accessory Dwelling Units 0 66 27
Manufactured Home 0 1 1
Total 0 295 195
Of the 131 single family units permitted in 2025, 65 were for the Campanile project, 41 were for the Vesta at Escena project, 33 were for the Rio Del Sol project, and 13 were infill units.
Building Permits Issued for Housing
While applications, entitlements approved, building permits issued, and building permits completed are all tracked in the APR, only building permits issued are used to track fulfillment of the RHNA. Of the 295 building permits issued in 2025:
35% (103 units) are assumed to be affordable for extremely low and very low-income households.
5% (15 units) are assumed to be affordable for low-income households. 1% (3 units) are assumed to be affordable for moderate-income households. 59% (174 units) are assumed to be affordable for above moderate-income households.
Listed rent or sales price was used, when available, to determine the affordability of non- deed restricted units. When rent or sales price data was not available, units were conservatively assumed to be market rate and affordable to households with above moderate incomes (120%+ of area median income).
Of the units categorized as affordable for extremely low-, very low-, low- or moderate- incomes, 25 are accessory dwelling units (ADUs), and the other 96 are the Desert Marigold project. The permit for Desert Marigold was the only building permit subject to a deed restriction for affordability in 2025. The project includes 96 deed-restricted units affordable for extremely-low income households (30% of area median income) and one unit for on-site management (assumed to be market rate). The deed restriction is for 55 years.
Accessory Dwelling Units
In 2025, 66 building permits were issued for Accessory Dwelling Units (ADUs). None of these units were subject to deed restrictions for affordability. The tenure and affordability of ADUs was based on applicant-input data about anticipated use and rent rate, which is collected as part of the online building permit application. For permits where the applicant opted not to provide this information, the ADU was assumed to be for rent at market rate and affordable for above moderate-income households.
6th Cycle RHNA Progress
The 2025 APR measures progress towards the RHNA on the fifth year (January 1 to December 31, 2025) of the 2021-2029 Planning Period. The table below summarizes the total number of building permits approved over the first five 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 2021-2025
6th Cycle RHNA (2021-2029)
Building Permits Issued
Income
Category RHNA 2021 2022 2023 2024 2025
Total
to
Date
RHNA
Remaining
Total
%
Complete
Extremely
Low
Income
270 - - 4 2 97 103 167 38%
Very Low
Income 270 - - 2 1 6 9 261 3%
Low
Income 353 12 13 10 4 15 54 299 15%
Moderate
Income 457 - 6 10 4 3 23 434 5%
Above
Moderate
Income
1,199 46 48 107 104 174 479 720 40%
Total
Units 2,549 58 67 133 115 295 668 1,882 26%
RHNA Progress Relative to Other Jurisdictions
As an indicator about Cathedral City’s progress in meeting the 6 th Cycle RHNA, the table below compares the City’s progress with neighboring cities in the Coachella Valley. The table provides housing production (number of units issued building permits 2021-2024) relative to the number of units required by the RHNA allocation for each income category. Each jurisdiction has a different RHNA target. The table also provides the percentage of the total RHNA allocation completed in each jurisdiction, across all income categories. Because most cities have not yet submitted their 2025 Housing Element APR, data from the 2024 APRs are used for purposes of comparison.
As of the 2024 APR, Cathedral City had 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.
6th Cycle RHNA Progress in Coachella Valley Cities
Units Permitted by Income Category as of 2024 Housing Element APR Income Category
City
# of units issued
permits 2021-24 /
# of units
required
Extremely
Low and
Very Low
Low Moderate Above
Moderate
Total
Units
(2024)
Percent of
RHNA
Complete
(2024)
Units Permitted 9 39 20 305 373CC RHNA 540 353 457 1,199 2,549 15% Units Permitted 0 2 321 133 456DHS RHNA 854 535 688 2,081 4,158 11% Units Permitted 160 263 122 1,679 2,224PS RHNA 545 408 461 1,143 2,557 87% Units Permitted 0 0 0 483 483RM RHNA 645 318 328 670 1,961 25% Units Permitted 427 207 60 1,075 1,769PD RHNA 675 460 461 1,194 2,790 63% Units Permitted 4 6 5 189 204IW RHNA 176 81 91 93 441 46% Units Permitted 0 0 2 1,015 1,017LQ RHNA 420 269 297 544 1,530 66% Units Permitted 228 170 0 1,143 1,541I RHNA 2,690 1,170 1,315 3,534 8,709 18% Units Permitted 43 232 94 420 789C RHNA 1,550 999 1,367 4,487 8,493 9% Based on Total Units to Date (issued building permits) for 2021-2024 and RHNA Allocation by Income Level, as reported in each city’s 2024 Housing Element Annual Progress Report Housing Element Program Implementation
The APR also requires reporting on the City’s progress on implementing each of the programs identified in the Housing Element. These programs are a required component of the Housing Element and establish the City’s objectives to facilitate the maintenance, improvement, and development of housing. Cathedral City’s Housing Element includes 45 programs, categorized under three goals:
Goal 1: A broad range of housing types located in all the City’s neighborhoods, which meet the needs of all existing and future households.
Goal 2: Facilitate the development of affordable housing for extremely-low-, very-low- , low- and moderate-income households.
Goal 3: The maintenance and rehabilitation of the City’s residential neighborhoods.
Completed Programs
Some of the Housing Element programs were implemented in 2022 through comprehensive updates (Zoning Ordinance Amendment 22-002 and Change of Zone 21-001) that were adopted to ensure zoning consistency with the recently adopted General Plan and Housing Element Updates. These amendments completed Housing Element programs such as:
Program 1.A.7: Rezone APNs 677-420-016 and 680-190-037 from R2 to R3 to allow a density of at least 20-24 units per acre.
Program 1.B.5: Amend the Zoning Ordinance to allow Low Barrier Navigation Centers in nonresidential and multifamily zones.
Program 2.F.1: Comprehensive update of the Zoning Code and Zoning Map to remove governmental constraints to the provision of all housing types.
Ongoing Programs
Housing Element programs are also continuously advanced through ongoing activities conducted by the Community and Economic Development Department and other departments involved in the development review process. For example:
Program 1.A.3: Maintain a Planned Unit Development permit ordinance which allows flexibility in development standards to encourage housing construction while preserving natural resources.
Program 1.A.4: Establish a list of active affordable housing developers in the region and meet annually with those developments to identify development opportunities. Program 1.A.5: Provide technical assistance to property owners and developers in support of lot consolidation.
Program 3.A.4: The Code Compliance Division shall continue to maintain and upgrade living conditions to ensure safe, sanitary, and healthy living conditions… Target 25 homes annually for living condition upgrades.
Programs Not Yet Started
Many of the programs identified in the Housing Element establish policy direction intended to facilitate housing production. However, several of these programs are not currently implemented through specific regulatory standards or procedures. For example:
Program 1.A.4: Negotiate the inclusion of affordable housing including units targeted for extremely-low-income households when feasible, in Specific Plans, PUDs, and Tentative Tract Maps with each developer as application is made. oThe City will strive to negotiate for 10 lower income units throughout the community annually.
Program 1.A.7: Owner-occupied and rental multifamily residential developments that have 20 percent of the units reserved for lower income households shall be allowed by-right.
Program 1.A.9: Develop and establish incentives for subdividing large lots (10 acres or greater) or creating new parcels to make the development of affordable housing projects more feasible (lot sizes of 0.5 to 10 acres) while encouraging a range of development sizes.
oAffordable housing projects will be allowed by-right, and the City will establish fee waivers, flexible development standards, and expedited processing in its incentive program.
Prohousing Designation Opportunity
The City’s Housing Element programs align with the California Prohousing Designation Program, which provides an opportunity to advance housing program implementation through targeted policy actions.
On February 7, 2026, in the Strategic Planning Workshop, the City Council discussed potentially applying for the Prohousing Designation Program. The program is a certification awarded to jurisdictions that demonstrate a proactive approach to accelerating housing production through land use and zoning reforms, including streamlining permits, reducing barriers to development, and reducing financial burdens. Jurisdictions that receive the designation gain a competitive advantage when applying for certain state funding programs.
The Prohousing Designation application is a non-competitive certification administered by California Department of Housing and Community Development. The primary benefit is eligibility for grant funding that supports infrastructure, planning, and housing-related initiatives that facilitate housing production. Applications are accepted on a rolling basis and must achieve a minimum score to qualify for the designation. However, the higher the total score, the more competitive a Prohousing-designated community is in consideration for grant amounts. Housing Element programs that are implemented through actionable policies and practices may qualify for Prohousing Designation.
Alignment with the Development Code Update
The ongoing Development Code Update provides an opportunity to translate the Housing Element programs into actionable policies and development standards that more directly influence housing outcomes. Targeted incentives that are specifically tied to housing development, particularly for projects that include units affordable to lower-income households, can provide flexibility for developers, advance Housing Element objectives, and support the City’s application for Prohousing Designation.
For example, Housing Element programs that call for facilitating housing development could be implemented through Development Code policies such as:
Flexible parking standards for housing developments, particularly for projects that include affordable units or are located near services and transit, rather than broadly reducing parking requirements for all land uses.
Adjustments to development standards such as setbacks, lot coverage, or density flexibility that apply specifically to housing developments or mixed-use projects that include residential units.
Streamlined approval processes or by-right provisions for qualifying housing projects, particularly where a portion of units are reserved for lower-income households. Fee reductions, waivers, or other financial incentives tied specifically to housing development rather than applied generally across all development types.
While the Development Code Update is ongoing, the City has an opportunity to establish programs that align with the criteria evaluated under the State’s Prohousing Designation, advance implementation of Housing Element programs, and ultimately facilitate the production of housing affordable to a range of income levels, as required by the RHNA allocation.
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 – 2025 Housing Element Annual Progress Report Attachment 2 – Cathedral City Housing Successor Annual Report FY 24-25