Leveraging RHNA Requirements for a Vibrant
Downtown Cathedral City
May 27, 2026 City Council Study Session
Agenda
CHOC Experience and Background
Difficulties and Challenges of LIHTC Models
Reimagining Downtown Cathedral City
A Brief History of CHOC
Founded in Davis, California in 1984, CHOC has grown from a local vision into a leading force for affordable housing across California. As a Community Housing Development Organization, we champion very low-, low-, and moderate-income households-providing thousands with safe, stable homes.
Today, CHOC continues to be a mission-drive multifamily developer, delivering impact through integrated expertise in energy, construction, resident services, and property management. We are stewards of 24 communities serving families, seniors, individuals, and people with special needs across California, including our most recent projects in the Coachella Valley – Placita Dolores Huerta (Coachella) and Monarch Apartments (Palm Springs).
Where We Started: Olive Court Apartments
The Experience CHOC Brings: Fruitvale Village
The Experience CHOC Brings: Portland Place +
Portland on the Park
CHOC in the Coachella Valley:
Monarch Apartments & Placita Dolores Huerta
Our Experience: LIHTC is One of Many Tools
1. It can take 7 to 9 years for a project to move from award to occupancy • 2 to 4 years for Financing
• 1 to 2 years pre-development phase
• Requires at risk capital from developer for architectural and financing plans, engineering and environment consultants
• Competitive applications often require local gap financing in addition to land contribution LIHTC is One of Many Tools
2. Funding priorities change from year to year
• No firm schedule of when NOFAs (Notice of Funding Availability) issued. • 30-60 day window for application submissions
• 100+ hours of staff time per application
3. A well-deserving project may not receive an award on a first attempt, requiring multiple applications. Assumptions and parameters are then adjusted, financing plans recalculated and submitted at the next NOFA.
Why are LIHTC projects so expensive?
1. Complexity and many layers of financing require
a. length of time to get to financing layers
b. additional regulatory compliance
c. fees to fund managers, expert consulting and legal professional services
2. Costs to overcome opposition to affordable housing
3. Inconsistency between General Plan and zoning can delay entitlement approvals
4. Federal, State funding mandate higher labor costs (Davis-Bacon, Prevailing Wage) The Power of Collective Impact January 2026: Lift to Rise Strategic Convening.
CHOC and Cathedral City staff
reconnect.
February 2026: CHOC and Cathedral City staff discuss
City needs and constraints.
March 2026: CHOC investigates
development feasibility on 1.61 acres
of City-owned land in downtown
Cathedral City (Buddy Rogers and
Date Palm) at staff request.
Strategic objective: secure AHSC
funding for CVLink segment in
partnership with CVAG.
CHOC analysis: Project feasible but
funding timetable uncertain.
Cathedral City: An Opportunity to
Lead
Strategic Planning Cycle positions City for success:
• Development and Zoning Code Updates Underway.
• Elected Leadership and Staff clear that capacity
constraints can drive innovation in a new normal of
fiscal austerity and macroeconomic uncertainty.
• State and National policy environment evolving to
support housing innovation.
• Strategic mid-Valley geography.
Our Vision: A Climate Resilient
Downtown for All Residents1. Leverage 2026 Five Year Strategic Plan Elements • Electric Vehicle Transition Plan (B1)
• Connect Chuperosa Lane & Cathedral Cove (B5)
• Improved Pedestrian Access to Parks (B6)
• Maintain Community Recreation Center Momentum
(B10)
• Coordinate with Sunline for Transit Hub (B11)
• Identify PACE Care Provider Location (B12)
• Align Development, Building Code Updates (F1)
• Revisit Parking Requirements (F2)
• Keep Downtown as Community Event Center (F3)
• Revisit Land Use for Housing (F11)
• Integrate Child Care Facilities (F15)
Our Vision: A Climate Resilient
Downtown for All Residents2. Make Full use of Limited Resources • Surplus Land Act provides for multiple disposition
strategies, including scattered site master
development, with affordability mandates.
• Moderate income (≤120% AMI) rents are market
rents - at least for now.
• Cast the broadest financial net possible: non-profit
partners are often stronger at securing
convenitional, concessionary, and philanthropic
capital necessary to execute complex projects.
How Do We Move Forward?
1. Make Surplus Land Act determination (Mixed Use? Mixed Income? Affordable?) a. State defers to local procurement processes
b. Must include public declaration
c. City (“Disposing Agency”) may not participate in negotiations (with defined carve outs)
2. Align decision making timetable to maximize State, Federal leverage for 2027 cycle Questions?
On behalf of the CHOC Team, Thank You
Feliciano Vera ([email protected])
Vice President, Real Estate Finance