Desert Hot Springs City Council
April 4, 2023

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In contrast, approximately two-thirds of the City’s population had low/moderate incomes in both time periods. In 2011-2015, eight of the 13 block groups had a low/moderate income percentage higher than the city-wide average. Refer to Table B-20.

Future housing production consistent with the RHNA will gradually reduce the City’s low/moderate income percentage. The RHNA allocation by income group is as follows:
§ Above Moderate 54%
§ Moderate 18%
§ Lower 28%
Table B-20
City of Desert Hot Springs
Low/Mod Income Comparison 2006-2010 and 2011-2015
2006-2010 2011-2015
Census
Tract
Block
Group
Number
Low/Mod
Low/Mod
Universe
Percent
Low/Mod
Number
Low/Mod
Low/Mod
Universe
Percent
Low/Mod
445.07 1 1,125 2,125 52.9% 2,575 3,795 67.9%
445.07 2 2,120 3,490 60.7% 2,595 3,570 72.7%
445.09 1 2,850 4,070 70.0% 3,440 4,025 85.5%
445.10 1 1,250 2,275 54.9% 2,505 3,555 70.5%
445.10 2 1,790 2,765 64.7% 1,800 2,165 83.1%
445.15 1 2,420 3,170 76.3% 2,610 4,020 64.9%
445.16 1 1,525 2,480 61.5% 1,615 2,575 62.7%
445.16 2 2,770 3,760 73.7% 2,825 4,150 68.1%
445.17 1 780 1,745 44.7% 835 2,400 34.8%
445.18 1 1,180 2,145 55.0% 750 1,545 48.5%
445.18 2 2,060 3,315 62.1% 2,695 3,920 68.8%
445.21 1 515 1,015 50.7% 685 905 75.7%
445.22 1 2,785 4,575 60.9% 2,715 5,060 53.7%
Total 23,170 36,930 62.7% 27,645 41,685 66.3%
Source: U.S. Department of Housing and Urban Development, 2006-2010 and 2011-2015 Low and Moderate Income Summary Data

3. Income Inequality
The income gap between the rich and the poor has been rising in regions, cities and the country.

According to the Pew Research Center:

Income inequality may be measured in a number of ways, but no matter the measure, economic inequality in the U.S. is seen to be on the rise. One widely used measure – the 90/10 ratio – takes the ratio of the income needed to rank among the top 10% of earners in the U.S. (the 90th percentile) to the income at the threshold of the bottom Item Number: 7.

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10% of earners (the 10th percentile). In 1980, the 90/10 ratio in the U.S. stood at 9.1, meaning that households at the top had incomes about nine times the incomes of households at the bottom. The ratio increased in every decade since 1980, reaching

12.6 in 2018, an increase of 39%.

Source: Pew Research Center, Trends in Income and wealth Inequality, January 9, 2020, page 11
In 2010-2014, the 90/10 ratios in Riverside County and Desert Hot Springs were 9.6 and 9.2, respectively. By 2015-2019, the Riverside County ratio increased to 11.5 while that of the City remained the same at 9.2. Thus, income inequality grew in Riverside County but not in Desert Hot Springs.

Table B-21 shows that the statewide ratio exceeds that of all southern California counties. The reason is that the Bay Area has a high 90/10 ratio, meaning that region has a greater income inequality than SoCal.

Table B-21
Income Inequality Measures by Region and Area: 2015-2019 Region/Area 90th Percentile 10th Percentile 90-10 Ratio Statewide $262,000 $21,000 12.3
Inland Empire $190,000 $20,000 9.7
Riverside County $182,000 $16,000 11.5
Orange County $289,000 $25,000 11.8
Los Angeles County $234,000 $20,000 11.8
Desert Hot Springs $88,000 $9,600 9.2
Table Household Income in the Past 12 Months (in 2019 Inflation Adjusted Dollars) Calculations by William F. Gayk, Ph.D.

Note: Inland Empire includes Imperial, Riverside and San Bernardino Counties Source: Public Policy Institute of California, Income Inequality in California, January 2020, 2 pages
Desert Hot Springs’ 90/10 ratio is low at 9.2 which means that the gap between the income groups living in the City is narrow compared to the Region and individual counties. Income inequality is not an issue in Desert Hot Springs as the 90/10 ratio is low and stable.

H. RACIALLY/ETHNICALLY CONCENTRATED AREAS OF POVERTY

1. Background
To assist communities in identifying racially or ethnically-concentrated areas of poverty (R/ECAPs), HUD developed a census tract-based definition of R/ECAPs. The definition involves thresholds for racial/ethnic concentration and poverty:
§ A non-White population of 50% or more
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§ A poverty rate that exceeds 40% or is three or more times the regional poverty rate, whichever rate is lower
For the CBSA Region, the three times poverty rate is 44.4%. For Riverside County alone it is

41.1%.

Census tracts with this extreme poverty that satisfy the racial/ethnic concentration threshold are deemed by HUD to be R/ECAPs.

2. Problems Associated with Segregation and Concentrated Poverty HUD explains the importance of the R/ECAP analysis in the following terms:

A large body of research has consistently found that the problems associated with segregation are greatly exacerbated when combined with concentrated poverty.

Neighborhoods of concentrated poverty may isolate residents from the resources and networks needed. Concentrated poverty has also been found to have a long-term effect on outcomes for children growing up in these neighborhoods related to a variety of indicators, including crime, health and education and future employment and lifetime earnings. An R/ECAP analysis is consistent with addressing concerns raised in the legislative history of the Fair Housing Act. The 1968 Kerner Commission on Civil Disorders acknowledged that “segregation and poverty” create “a destructive environment.” [Emphasis added}
Source: U.S. Department of Housing and Urban Development, AFFH Rule Guidebook, December 13, 2015, page 68

3. Regional Analysis of R/CAPs – 1990 to 2010
In 1990, there were a total of eight R/ECAP areas in the Region. Six of the R/ECAPs were adjacent to each other and located within the City of San Bernardino. Mecca, in unincorporated Riverside County, was the other R/ECAP and consisted of two contiguous census tracts.

In 2000, the Region added six R/ECAPs (three in the City of San Bernardino, two in the City of Riverside and one in the City of Barstow) for a total of 12 R/ECAPs as two census tracts were removed between 1990 and 2000 because they no longer met the threshold criteria.

In 2010, there were 21 R/ECAPs as two census tracts were removed and 11 added. Of the 21 R/ECAPs 14 were located in San Bernardino County and seven in Riverside County. The City of San Bernardino had 12 R/ECAPs and 11 of the 12 were adjacent to one another near the downtown. The cities of Barstow and Victorville each had one R/ECAP. In Riverside County, the cities of Riverside, Beaumont and Indio each had one R/ECAP while the City of Moreno Valley and the unincorporated community of Mecca each had two R/ECAPs.

Within the Region, the highest concentration of racial/ethnic minority populations and poverty was within the 11 contiguous census tracts located in the City of San Bernardino.

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4. Riverside County R/ECAPs
According to the Riverside County 6th Cycle Housing Element Update, Riverside County has several census tracts that are considered R/ECAPs, including tracts immediately adjacent to the Salton Sea, the area near Desert Hot Springs, Meadowbrook, the neighborhoods southwest of Hemet, and portions of the cities of Riverside and Moreno Valley.3 Within the Coachella Valley, the Salton Sea R/ECAP area encompasses the unincorporated, census-designated communities of Thermal, Mecca, North Sore, and Oasis, and their surrounding areas. The Desert Hot Springs R/ECAP census tract is located southwest of the city and also includes a portion of land within Desert Hot Springs city limits that are not considered a R/ECAP.

The County’s review of HUD’s diversity index found that the Desert Hot Springs tract had a 10.5 percent rate of unemployment in 2018, which is in 100th percentile for unemployment measured by CalEnviroScreen. This high rate of unemployment may be attributed to a concentrated retiree population or may indicate severe challenges accessing or securing employment. Another notable trend in this R/ECAP is the higher rates of asthma and cardiovascular disease, which may be a result of poor air quality. The County found, on average, the City of Desert Hot Springs is in the 2nd percentile for pollution burden in the 78th percentile for population characteristics, in comparison to the 2nd percentile and 95th percentile, respectively, in the adjacent County R/ECAP (see Tables B-22 and B-23). This demonstrates that population characteristics as an indicator of quality of life may be more telling than pollution burden.

Table B-22
Pollution Burden Adjacent to Desert Hot
Springs
Pollutant Percentile
Ozone 94th
PM 2.5 5th
Diesel PM 9th
Pesticides 2nd
Toxic Releases 3rd
Traffic 13th
Drinking Water Contaminants 29th
Lead in Housing 52nd
Cleanups 0
Groundwater Threats 0
Hazardous Waste 27th
Impaired Water 0
Solid Waste 0
Total 2nd
Source: Riverside County 6th Cycle Housing
Element Table P-28C.
3 Riverside County 6th Cycle Housing Element Update, Appendix P, Figure P-6.

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Table B-23
Population Characteristics Adjacent to
Desert Hot Springs
Characteristic Percentile
Asthma 79th
Low Birth Rate 68th
Cardiovascular Disease 92nd
Education 86th
Linguistic Isolation 59th
Poverty 95th
Unemployment 100th
Housing Burden 84th
Total 95th
Source: Riverside County 6th Cycle Housing
Element Table P-28D.

In order to address discrepancies in access to services or conditions that promote healthy lifestyles and improve quality of life, the County set forth meaningful actions to create community working groups to identify areas of concern and review strategies to improve conditions for all residents in R/ECAP areas.4 These actions include, but are not limited to: 5 • Establish community working groups to enable residents to prioritize their concerns and work toward solutions.
• Prepare community plans for communities in need of focused investment. • Identify staff time to focus on securing funding to implement and advance area plans. • Revise Policy 2.3 of the Eastern Coachella Valley Area Plan to prioritize investment and affordable development in areas of need.

5. City of Desert Hot Springs
According to HUD R/ECAP mapping and HCD’s AFFH Data Viewer there are two census tracts in Desert Hot Springs designated as R/ECAPs (CT 445.07 and CT 445.09) (see Exhibit B-7). CT 445.07 is generally bounded by Pierson Boulevard to the north, Palm Drive to the east, Two Bunch Palms Trail to the south, and N. Indian Canyon Drive to the west. CT 445.09 is generally bounded by 8th Street to the north, Ambrosio Drive to the east, Pierson Boulevard to the south, and vacant land to the west.
4 Table P-30 Factors That Contribute to Fair Housing Issues in Riverside County, Riverside County 6th Cycle Housing Element Update.
5 Per Riverside County Action H-27 of 6th Cycle Housing Element Update.

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Exhibit B-7
City of Desert Hot Springs R/ECAPS
The portion of CT 445.07 that is within the City’s boundaries consists primarily of single-family residences and large swaths of vacant lands. The portions that border Palm Drive and Pierson Boulevard consist of commercial and retail uses. CT 445.09 consists primarily of single-family residences. Also of note is a mix of commercial/retail and public uses, including Desert Hot Springs High School, Fire and Police Departments, and City Hall. Table B-24 provides a comparison of population characteristics of the two R/ECAP CTs and the City of Desert Hot Springs, and is summarized below:

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• Approximately 40% of the City’s total population reside in the two R/ECAP CTs; • The City’s White only population percentage of 27.5 is comparable to the White only population percentage of 28.8 in the R/ECAP CTs;
• The City has a Hispanic or Latino only population percentage of 56.4, which is 11.8 percentage points lower than the R/ECAP CTs population percentage of 68.2; • The average median household income within the two R/ECAP CTs is $29,250, which is $8,568 lower than the City’s median household income;
• The two R/ECAPS have the least positive outcomes on the education and economic scores, and have one of the more positive outcomes on the environmental score. • Both R/ECAPS are considered areas of High Segregation and Poverty.

Table B-24
R/ECAP Characteristics
CT 445.07 CT 445.09 Desert Hot
Springs
Population1 7,840 4,580 32,716
Race and Ethnicity1
White alone, Not Hispanic 2,104 1,473 8,997
Hispanic or Latino alone 5,713 2,757 18,452
Black or African American alone 421 545 3,173
American Indian or Alaska Native alone 159 108 458
Asian alone 121 72 1,145
Housing1,2
Total Housing Units 2,515 1,762 11,7022
Total Occupied Housing Units 2,300 1,630 10,7082
Income and Poverty1,3
Median Household Income $31,6943 $26,8063 $37,8181
Percent of Population in Poverty 36.2%3 36%3 24%1
TCAC Opportunity Areas4
Composite Score High Segregation
and Poverty
High Segregation
and Poverty
Education Score 0.28 0.28 NA
Economic Score 0.22 0.06
Environmental Score 0.87 0.86

1. 2020 U.S. Census

2. U.S. Department of Finance, Table E-5 Population and Housing Estimates 2022.

3. AFFH Data Viewer

4. California Tax Credit Allocation Committee (TCAC) scores are from 0.0-1.0, 1.0 being most positive outcomes. All scores are by census tract.

The City has created programs to develop place-based strategies to encourage community conservation and improvements in these areas of lower opportunity and concentrated poverty. As set forth in Programs 5.4 and 5.9, these strategies shall focus on community revitalization and public participation that include the following:
• Targeted investment in areas of most need focused on improving community assets such as schools, recreational facilities and programs, social service programs, parks, streets, active transportation and infrastructure;
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• Develop a proactive code enforcement program that targets areas of concentrated rehabilitation needs, results in repairs, and mitigates potential cost, displacement and relocation impacts on residents;
• Target acquisition and rehabilitation to vacant and blighted properties in neighborhoods of concentrated poverty;
• Recruit residents from areas of concentrated poverty to serve on boards, committees, task forces and other local government decision-making bodies; • Expand access to community meetings, including addressing language barriers, meeting times.

6. Areas of Affluence
HCD defines “areas of affluence” as census tracts/neighborhoods in which 80% of the population is White, not Hispanic and the median household income is $125,000 or more. Desert Hot Springs does not have an area of affluence. In 2015-2019, there are 18 census tracts/neighborhoods located in the Region (Riverside County) in which 80% or more of the population is White, not Hispanic. However, only one census tract in the Region had a median household income of $125,000 or more: #456.08 which is located in the City of La Quinta. Two additional census tracts had an 80% White, not Hispanic population and median household incomes just below $125,000 – CT 451.25 ($123,792) located in Indian Wells and CT 449.21 ($116,875) located in Rancho Mirage.

I. DISPARITIES IN Regional Access to Opportunity

1. HUD Access to Opportunity Data
HUD used a two-stage process for developing the data needed to analyze disparities in access to opportunity. The first stage involves quantifying the degree to which a neighborhood offers features commonly viewed as important opportunity indicators. In the second stage, HUD compares these rankings across people in particular racial and economic subgroups to characterize disparities in access to opportunities. To focus the analysis, HUD developed methods to quantify a selected number of the important opportunity indicators in every neighborhood. These dimensions were selected because existing research suggests they have a bearing on a range of individual outcomes.

Invariably, these opportunity indicators do not capture all that is encompassed in an individual’s or a family’s access to opportunity. In quantifying opportunity indicators, HUD is quantifying features of neighborhoods for the purpose of assessing whether significant disparities exist in the access or exposure of particular groups to these quality of life factors. While these important dimensions are identified by research as important to quality of life, the measures are not without limitations. HUD constrained the scope of HUD-provided data to those that are closely linked to neighborhood geographies and could be measured consistently at small area levels across the country. For example, HUD's measure of school performance only reflects elementary school proficiency. It does not capture academic achievement for higher grades of schooling, which is important to a community's well-being, but may not be as geographically tied to individual neighborhoods as elementary schools.

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2. Description of Opportunity Indicators
a. Low Poverty Index
The low poverty index captures poverty in a given neighborhood. The index is based on the poverty rate and the census tract level. Values are inverted and percentile ranked nationally. The resulting values range from 0 to 100. The higher the score, the less exposure to poverty in a neighborhood.
b. School Proficiency Index
The school proficiency index uses school-level data on the performance of 4th grade students on state exams as a means to identify the neighborhoods having high-or low performing elementary schools. The school proficiency index measures the percent of 4th grade students proficient in reading and math on state test scores for up to three schools within 1.5 miles of a census tract’s block-group’s centroid. The source of the HUD school data is the Great Schools Rating. Values are percentile ranked and range from 0 to 100. The higher the score, the higher the school system quality is in a neighborhood.
c. Jobs Proximity Index
The Jobs Proximity Index quantifies the accessibility of a given neighborhood as a function of its distance to all job locations in a CBSA, with the larger employment centers weighted more heavily.

In effect, the index measures the physical distances between place of residence and location of jobs. The job locations are positively weighted by the size of the employment and inversely weighted by the labor supply residing in that location. Values are percentile ranked at the CBSA level with values ranging from 0 to 100. The higher the index value, the better the access to employment opportunities for the residents in a neighborhood. d. Labor Market Engagement Index
The Labor Market Engagement Index is based on three factors: unemployment rate, labor force participation rate and educational attainment (the percent of the population with a bachelor’s degree or higher). Values are percentile ranked nationally and range from 0 to 100 with the higher the score the higher the labor force participation and human capital in a neighborhood. e. Low Transportation Cost Index
This index is based on estimates of transportation costs for a family that meets the following description: a 3-person single-parent family with income at 50% of the median income for renters for the region (i.e. CBSA). Transportation costs are expressed as a percent of income for renters.

Values range from 0 to 100. Higher values mean lower transportation costs in that neighborhood.

Transportation costs may be low for a variety of reasons, including greater access to public transportation and the density of homes, services, and jobs in the neighborhood and surrounding community.

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f. Transit Trips Index
This index is based on estimates of transit trips taken by a family that meets the following description: a 3-person single-parent family with income at 50% of the median income for renters for the Region. Annual transit trips are modeled for renters. Index values range from 0 to 100.

Higher scores indicate that residents in the neighborhood/census tract are more likely to utilize public transit. The index controls for income such that a higher index value will often reflect better access to public transit.
g. Environmental Health Index
The environmental health index summarizes potential exposure to harmful toxins at the neighborhood level (census tracts). This index combines standardized EPA estimates of air quality carcinogenic, respiratory and neurological hazards. Values range from 0 to 100. The higher the value, the better is the environmental quality of a neighborhood.

3. Analysis of CBSA Regional Access to Opportunity
Table B-24 provides the score for each of the seven indicators for the regional population and the population with incomes below the poverty line by race and ethnicity. It is important to remember that the higher the score the more access to opportunity – a score of 65 compared to 50 demonstrates, for example, better access to public transit, The values of the indices are best understood as an “interval” level of measurement, similar to a thermometer. It can be said that 90 degrees is hotter than 45 degrees but not twice as hot. A “ratio” level of measurement which has a true zero such as pounds is needed so it can be said that 90 pounds is twice the weight of 45 pounds.
a. Low Poverty
As expected all racial/ethnic populations with incomes below the poverty line are more exposed to poverty than the regional population. This probably also is true for Desert Hot Springs because the City’s poverty rate exceeds that of Riverside County and San Bernardino County. In addition, five census tracts have poverty exceeding 30%. b. School Proficiency
Also as expected all racial and ethnic populations below the federal poverty line live in neighborhoods with poor performing schools compared to the regional population. In fact, the neighborhoods where income-poor Black Non-Hispanic and Hispanic households live have particularly low scores.

The five elementary schools in Desert Hot Springs also are low performing. Great Schools rates the schools a 4 on a scale of 1 to 10.
c. Labor Market Engagement
Again, the population below the federal poverty line has lower scores than the regional Item Number: 7.

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population. None of the scores are 50 or higher. The regional Asian or Pacific Islander population has the highest score at 43.02.
d. Transit/Low Transportation Cost
For both indices, the scores of the population below the federal poverty line are higher than the regional population. The scores demonstrate closer proximity and use of public transit. e. Jobs Proximity
Jobs proximity scores are generally the same for the regional population and the population below the federal poverty line. Only three of the 10 possible scores exceed a score of 50, however. f. Environmental Health
Environmental health scores are generally the same for the regional population and the population below the federal poverty line. Nine of the 10 possible scores exceed a score of 50.

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Table B-25
Regional (CBSA) Access to Opportunity Index Scores
(Riverside-San Bernardino-Ontario,
CA) Region
Low
Poverty
Index
School
Proficiency
Index
Labor
Market
Index
Transit
Index
Low
Transportation
Cost Index
Jobs
Proximity
Index
Environmental
Health Index
Total Population
White, Non-Hispanic 52.61 53.16 34.50 37.96 25.75 49.50 61.98 Black, Non-Hispanic 42.80 43.79 27.18 42.55 31.82 49.72 52.97 Hispanic 37.51 41.01 24.20 43.12 32.68 47.81 52.59
Asian or Pacific Islander, Non-Hispanic 60.42 59.23 43.02 41.92 29.18 48.25 52.51 Native American, Non-Hispanic 41.19 45.54 25.06 36.84 26.34 50.16 61.60 Population below federal poverty line
White, Non-Hispanic 38.39 44.64 25.55 38.74 29.20 49.95 62.31 Black, Non-Hispanic 27.15 35.04 17.39 43.48 34.78 48.95 51.90 Hispanic 23.78 34.76 16.42 44.76 36.54 49.34 52.37
Asian or Pacific Islander, Non-Hispanic 42.30 44.82 30.51 45.00 37.05 51.32 49.15 Native American, Non-Hispanic 30.24 39.41 20.61 39.17 32.05 52.23 58.72 Note 1: Data Sources: Decennial Census; ACS; Great Schools; Common Core of Data; SABINS; LAI; LEHD; NATA Note 2: Refer to the Data Documentation for details (www.hudexchange.info).

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J. CVAG REGION AND CITY ACCESS TO OPPORTUNITY ANALYSIS

1. CVAG Regional Analysis
The TCAC/HCD Opportunity Mapping Tool designates neighborhoods – meaning census tracts –into one of the following six resource categories:
§ Highest
§ High
§ Moderate
§ Low
§ High Segregation & Poverty
Tract-level indices were summed to the jurisdictional-level by SCAG using area-weighted interpolation. Using 2013-2017 American Community Survey population data, SCAG determined the share of each jurisdiction’s population in each of these five categories.

Table B-25 shows the number of people living in each of the five neighborhood resource categories while Table B-26 shows the percentage.

By far, Palm Desert has the largest number of people living in the highest resource neighborhoods – 41,336 out of CVAG regional total of 72,434. La Quinta at 18,215 people has the second largest number of persons living in the highest resource neighborhoods. Palm Springs, La Quinta, and Rancho Mirage have the largest populations living in the high resource neighborhoods.

On the other hand, the largest number of people living in high segregation and poverty and low resource neighborhoods call Coachella home. Desert Hot Springs (13,264) and Cathedral City (12,607) have the second and third highest numbers of people living in high segregation and poverty neighborhoods.

On a percentage basis, Indian Wells, Palm Desert and La Quinta have the highest percentages of people living in high resource and highest resource neighborhoods. The numbers and percentages reveal that the neighborhoods with the best access to opportunity are geographically concentrated within the CVAG Region.

The highest percentages of people living in high segregation and poverty and low resource neighborhoods call Coachella and Desert Hot Springs home. Because of the large geographic areas encompassed within these neighborhoods, the obvious question emerges whether each of these cities should have been allocated more than a modest lower income RHNA. The “social equity adjustment” was the tool employed by SCAG to account for disparities in access to opportunity across the region:

Assigning a higher social equity adjustment based on Opportunity Indices will result in a higher percentage of affordable housing units to areas that have higher resources.

Concurrently, it will assign a lower percentage of affordable housing in areas where they Item Number: 7.

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is already an overconcentration. Because Opportunity Indices consider factors such as access to lower wage jobs, poverty rates, and school proficiency, the social equity adjustment in the RHNA methodology will result in factors beyond simply household income distribution. This additional adjustment will help to adjust the disparity in access to fair housing across the region, furthering the AFFH objective required in State housing law.

Southern California Association of Governments, Final RHNA Allocation Methodology, March 5, 2020, page 5
Whether this adjustment really accounts for the realities on the ground in cities like Desert Hot Springs and Coachella is debatable. As noted above, the adjustments are made in terms of percentages. In terms of numbers, Coachella was allocated approximately 2,000 and Desert Hot Springs 1,100 lower income housing units, respectively.

Table B-26
CVAG Neighborhood Resource Categories by City (Number)
Jurisdiction
High
Segregation
& Poverty
Low
Resource
Moderate
Resource
High
Resource
Highest
Resource
Total
Population
Cathedral City 12,607 0 30,841 5,002 0 48,450
Coachella 24,853 11,252 7,435 0 0 43,540
Desert Hot Springs 13,264 164 8,966 978 0 23,372
Indian Wells 0 0 0 0 8,585 8,585
Indio 1,249 10,218 48,207 11,390 3,023 74,087
La Quinta 439 0 1,329 16,784 18,215 36,767
Palm Desert 0 0 0 4,601 41,336 45,937
Palm Springs 62 50 17,122 33,190 433 50,857
Rancho Mirage 0 0 2.083 14,692 842 17,737
Total 52,474 21,684 116,703 86,037 72,434 349,332
Percent 15.0% 6.2% 33.4% 24.6% 20.8% 100.0%
Source: Southern California Association of Governments, Final RHNA Methodology Data Appendix, Population within TCAC Resource Areas, page 44, March 5, 2020
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Table B-27
CVAG Neighborhood Resource Categories by City (Percent) Jurisdiction
High
Segregation
& Poverty
Low
Resourc
e
Lowest
Resource
(Seg/Pov+Low
Resource)
Moderate
Resource
High
Resource
Highest
Resource
Cathedral City 26.0% 0.0% 26.0% 63.7% 10.3% 0.0%
Coachella 57.1% 25.8% 82.9% 17.1% 0.0% 0.0%
Desert Hot Springs 56.8% 0.7% 57.5% 38.4% 4.5% 0.0%
Indian Wells 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
Indio 14.3% 12.0% 26.3% 56.7% 13.4% 3.6%
La Quinta 1.2% 0.0% 1.2% 3.6% 45.6% 49.5%
Palm Desert 0.0% 0.0% 0.0% 0.0% 10.0% 90.0%
Palm Springs 0.1% 0.1% 0.2% 33.7% 65.3% 0.9%
Rancho Mirage 0.0% 0.0% 0.0% 15.8.% 79.5% 4.7%
Total Percent 15.0% 6.2% 33.4% 24.6% 20.8% 100.0%
Source: Southern California Association of Governments, Final RHNA Methodology Data Appendix, Population within TCAC Resource Areas, page 44, March 5, 2020

2. Desert Hot Springs Census Tract/Neighborhood Analysis Nine census tracts cover all or a portion of land that is located within the City limits. As shown in Exhibit B-8, one census tract (CT 445.17) is classified as High Resource, which overlaps with the Mission Lakes Country Club. However, as described in Appendix C, the majority of the developed land within the census tract is located in unincorporated territory. Most of the land in CT 445.17 within the City limits is zoned Open Space – Conservation, due to significant hillsides, Coachella Valley Multiple Species Conservation Plan designations and similar factors.

Two census tracts – 445.16 and 445.18 are designated as Moderate Resource.

Two census tracts – 445.21 and 445.22 are designated as Low Resource. Note that a portion of CT 445.18 is designated as Low Resource in the northern City.

Four census tracts are designated as High Segregation & Poverty: 445.07; 445.09; 445.10; and 445.15. These areas are in the central City and coincide with the Hispanic Majority Tracts. Based on 2009-2013 HUD data, CT 445.07 and CT 445.09 were also designated R/ECAPs.

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Exhibit B-8
City of Desert Hot Springs TCAC Opportunity Areas (2021)

3. Regional Minority Population Trends
Desert Hot Springs is not unusual for having almost all of its census tracts with 50% or more of the population belonging to a minority population group. In fact, it is highly probable that the majority of Riverside County’s census tracts have a minority population percentage exceeding 50% or more. Table B-27 shows in that in 2020 (62.5%) and 2030 (63.8%) the minority population comprises almost two-thirds of Riverside County’s population.

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Table B-28
Riverside County Population Growth: 2020-2030
Race/Ethnicity 2020 2030
Net Gain
2020-2030
Percent
Change
Hispanic or Latino 1,160,908 1,318,755 157,847 13.6%
Not Hispanic or Latino
White Alone 918,867 986,706 67,839 7.4%
Black or African American Alone 146,861 168,404 21,543 14.7% American Indian and Alaska Native Alone 12,095 13,435 1,340 11.1% Asian Alone 148,270 166,613 18,343 12.4%
Native Hawaiian and Pacific Islander Alone 6,720 7,334 614 9.1% Two or More Races 55,578 66,821 11,243 20.2%
Total 2,449,299 2,728,068 278,769 11.4%
Source: Demographic Research Unit, California Department of Finance, March 2021.

In several census tracts/neighborhoods, it will be important to implement poverty-reducing strategies; including placed-based strategies. Poverty, according to the Community Action Partnership (War on Poverty agency) is considered a contributing factor to housing and socioeconomic problems.

K. DISPROPORTIONATE HOUSING NEEDS

1. Background
For purposes of the Assessment of Fair Housing -
Disproportionate housing needs refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden, severe cost burden, overcrowding, and substandard housing conditions…. 24 CFR 5.154 [Emphasis added]
Source: U.S. Department of Housing and Urban Development, AFFH Rule Guidebook, December 13, 2015, page 79
No threshold measures are given by HUD to enable jurisdictions to determine what a “significant disparity” is.

The categories of housing need, therefore, include:
§ Cost Burden
§ Severe Cost Burden
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§ Overcrowding
§ Substandard Housing Conditions

2. Indicators of Disproportionate Housing Needs
ACS data are unavailable on the cost burdens and substandard housing conditions experienced by the different protected classes (e.g., race, national origin, disability, familial status). Data are available on overcrowding by race and ethnicity.
a. Extremely Low Income by Race and Ethnicity
Table B-28 shows that the percentages of extremely low income Black and Hispanic households are considerably higher than the White and Asian households. This may very well mean that Black and Hispanic households experience disproportionate cost burdens and severe cost burdens when compared to White and Asian households.
b. Extremely Low Income Households by Tenure
Nearly 37% of all renters have extremely low incomes compared to less than 10% of owners.

Thus, fair housing protected groups that live in renter-occupied housing are more likely than owners to experience disproportionate housing needs.

Table B-29
City of Desert Hot Springs
Extremely Low Income Households by Race/Ethnicity: 2012-2016 Race and Ethnicity
Total
Households
Extremely
Low
Households
Percent
Extremely Low
Income
Households
White, Non-Hispanic 4,060 720 17.7%
Black, Non-Hispanic 769 304 39.5%
Asian and Other, Non-Hispanic 463 95 20.5%
Hispanic 3,980 1,125 28.3%
Total 9,272 2,244 24.2%
Renter-occupied 5,050 1,865 36.9%
Owner-occupied 4,225 385 9.1%
Total 9,275 2,250 24.3%
Source: Southern California Association of Governments, Pre-Certified Local Housing Data, August 2020, based on CHAS Data 2012-2016
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c. Very Low Income Cost Burdens by Income
Table B-29 describes the number of very low income renter and owner households that experience cost burden and severe cost burden. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.

Among very low renters, 83.2% are cost burdened and 65.7% are severely cost burdened. The data also demonstrate that about 68% of all very low income owners are cost burdened and 43% are severely cost burdened.

This means that the renter households within each protected group are more likely to be cost burdened and severely cost burdened than their owner counterparts.

Table B-30 shows that for Riverside County extremely low income renters and owners experience essentially the same percentages of cost burdens as the City’s householders. There is one exception, however. Almost 54% of the County’s extremely low income owners are severely cost burdened compared to 43% of the City’s householders.

Table B-30
City of Desert Hot Springs
Very Low Income (<50% AMI)
Cost Burden and Severe Cost Burden
By Tenure: 2013-2017
Tenure
Total Low
Income
(<50% AMI)
Number
Cost
Burdened
Percent
Cost
Burdened
Number
Severely Cost
Burdened
Percent
Severely Cost
Burdened
Renters 3,000 2,495 83.2% 1,970 65.7%
Owners 1,060 720 67.9% 460 43.4%
Total 4,060 3,215 79.2% 2,430 59.9%
Note: Low/moderate income means less than 80% of the area median income Cost burden = 30% or more of income spent on housing costs Severe cost burden = 50% or more spent on housing costs Source: Comprehensive Housing Affordability Strategy (“CHAS”) Data, based on 2013-2017 American Community Survey and 2010 Census
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Table B-31
Riverside County
Very Low Income (<50% AMI)
Cost Burden and Severe Cost Burden
By Tenure: 2013-2017
Tenure
Total Low Income
(<50% AMI)
Number
Cost
Burdened
Percent
Cost
Burdened
Number
Severely Cost
Burdened
Percent
Severely Cost
Burdened
Renters 89,950 75,110 83.5% 57,615 64.1%
Owners 69,480 49,050 70.6% 37,385 53.8%
Total 159,430 124,160 77.9% 95,000 59.6%
Note: Low/moderate income means less than 80% of the area median income Cost burden = 30% or more of income spent on housing costs Severe cost burden = 50% or more spent on housing costs Source: Comprehensive Housing Affordability Strategy (“CHAS”) Data, based on 2013-2017 American Community Survey and 2010 Census
d. Overcrowding by Race and Ethnicity
While American Indian and Alaska Native households experience the highest level of overcrowding, there are relatively few of these households. Hispanics experience disproportionate housing need with respect to overcrowding. There are a higher percentage of overcrowded Hispanic households than experienced by White, Asian and Black households.

Refer to Table B-31.

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Table B-32
City of Desert Hot Springs
Disproportionate Housing Needs Analysis
Overcrowding by Race and Ethnicity
Race/Ethnicity
Number of
Households
Number
Overcrowded
Percent
Overcrowded
Hispanic 4,556 729 16.0%
Some Other Race Alone 875 101 11.5%
Black/African American 1,202 108 9.0%
Asian 306 32 10.5%
White Alone, Not Hispanic or Latino 4,194 165 3.9%
Two or More Races 247 20 8.1%
American Indian/Alaska Native 75 13 17.3%
Native Hawaiian/Pacific Islander 14 0 0.0%
Total 11,469 1,168 10.2%
Source: U.S. Census Bureau; American Community Survey, 2015-2019 5-Year Estimates, Table B25014 B-I, Occupants Per Room
For Riverside County, 13.9% of the Hispanic households are overcrowded, a percentage that is lower than the City. However, the County’s overcrowding rate (15.9%) experienced by Some Other Race Alone householders is higher than that of Desert Hot Springs (11.5%). Refer to Table B-32.

Table B-33
Riverside County
Disproportionate Housing Needs Analysis
Overcrowding by Race and Ethnicity
Race/Ethnicity
Number of
Households
Number
Overcrowded
Percent
Overcrowded
Hispanic 273,613 37,958 13.9%
Some Other Race Alone 124,289 19,811 15.9%
Black/African American 48,046 2,577 5.4%
Asian 42,378 2,201 5.2%
White Alone, Not Hispanic or Latino 344,446 6,616 1.9%
Two or More Races 18,694 1,321 7.1%
American Indian/Alaska Native 5,856 361 6.2%
Native Hawaiian/Pacific Islander 1,898 217 11.4%
Total 859,220 71,062 8.3%
Source: U.S. Census Bureau; American Community Survey, 2015-2019 5-Year Estimates, Table B25014, Occupants Per Room
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e. Homeless
The 2019 Point in Time (PIT) Homeless Count for the Region comprised of Riverside County and San Bernardino County was 5,411 sheltered and unsheltered persons: 2,811 in Riverside County and 2,607 in San Bernardino County.

Disproportionate needs are experienced by the Black population and individuals with disabilities.

In Riverside County, the Black population represents 16% of all homeless persons. Individuals with disabilities (substance abuse and mental health conditions) comprise 38% of all homeless persons.

In San Bernardino County, Blacks comprise 19% of the homeless population. Persons with disabilities also have disproportionate needs as they represent 40% of the County’s homeless population
In Desert Hot Springs, the homeless population was 68 persons in 2019. Disproportionate needs were experienced by people who identify with “multiple races,” as they represented 42% of all the City’s homeless persons. Disabled persons also had disproportionate needs.

L. DISPLACEMENT RISK
Displacement risk factors include, but are limited, to:
§ Constructive evictions
§ Expiration of national and state eviction moratoriums § Foreclosures
§ ELI/severely cost burdened households
A constructive eviction occurs when a landlord takesactions that interfere with the tenant's use and enjoyment of the premises such as cutting off the tenant’s utilities or other essential services; harassing the tenant, whether verbally, physically, or emotionally; or blocking the tenant’s access to the unit, such as changing the locks.

The County of Riverside removed constructive eviction as an impediment to fair housing because there was insufficient publicly available data to support inclusion of this landlord-tenant issue as an impediment to fair housing choice.

Source: County of Riverside Economic Development Agency, Analysis of Impediments to Fair Housing Choice 2019-2021, June 2019. pages 11-12
In the past six years (FY 2014/2015 to 2019/2020), Desert Hot Springs residents made 5,759 tenant/landlord related calls. Eviction related calls ranked fourth among the issues prompting the calls to the FHCRC:
§ Repairs 1,410 24%
§ Notices 898 16%
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§ Lease/rental terms 674 12%
§ Eviction 414 7%
Although ranked fourth, evictions could pose a displacement risk to many households as an average of 70 eviction related calls are made per year. The City will work with the FHCRC to identify the eviction related issues associated with the calls and the resources available to address the issues (Program 5.6).

Although eviction moratoriums are in place, CalMatters estimated that 10,000 evictions happened in the State during a 9-month period. There were 112 confirmed evictions in Riverside County and 898 in San Bernardino County.

Foreclosures have greatly diminished since 2010. Here were 686 foreclosures in 2010 compared to 47 in 2018. As a consequence, the displacement risk associated with foreclosures is not as severe as it was a decade ago.

Severely cost burdened extremely low income households are at a high risk of displacement because they face serious difficulties each month to pay the rent. When they can’t make the rent payment, they may be forced to move to a motel or temporarily live with friends or relatives. If their financial circumstances don’t improve, homelessness could be the only option available to them.

According to the 2013-2017 CHAS data, 14% of Riverside County’s renters had extremely low incomes and were spending 50% or more of their income on rent (N=35,000). In San Bernardino County, the comparable figures were 16% and 40,380 ELI households.

The displacement risk in Desert Hot Springs is more acute when compared to the two counties:
29% of all the City’s ELI households were severely cost burdened (N=1,515).

The Urban Displacement Project (UDP) is a research and action initiative of the University of California Berkeley and the University of Toronto. UDP conducts community-centered, datadriven, applied research toward more equitable and inclusive futures for cities, and contributed the Sensitive Communities map to HCD’s AFFH Data Viewer. Communities are designated sensitive if “they currently have populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost.” The following characteristics define vulnerability:
• Share of very low-income residents is above 20%; and
• The tract meets two of the following criteria:
o Share of renters is above 40%,
o Share of people of color is above 50%,
o Share of very low-income households (50% AMI or below) that are severely rent burdened households is above the county median,
o They or areas in close proximity have been experiencing displacement pressures (percent change in rent above County median for rent increases), or o Difference between tract median rent and median rent for surrounding tracts above median for all tracts in county (rent gap).

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According to the UDP map on the AFFH Data Viewer, almost the entire City, except census tract 445.17 that overlaps with the Mission Lakes Country Club, is designated as vulnerable to displacement. This is consistent with and likely due to the City’s characteristics of generally lower household income and higher percentages of people of color. Note that the areas identified as vulnerable to displacement not only covers Hispanic Majority Tracts, but also some White Majority Tracts.

The City will work with the Housing Authority, FHCRC, and Lift to Rise to develop ways to mitigate displacement risk.

The United Lift Rental Assistance Program was a coordinated effort between County of Riverside Housing Authority, Inland SoCal United Way, and Lift To Rise to keep Riverside County families and residents housed by providing one-time direct rental assistance to households that are behind on rent payments due to the ongoing COVID-19 pandemic. The program lasted from June until November, 2020 and assisted 10,000 households.

Riverside County allocated $33 million of federal funds for the program – $30 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and $3 million from the Community Development Block Grant (CDBG) program – making it one of the most generous emergency rental assistance programs in the state in terms of funding per capita.

Among pre-eligible applicants for rental assistance, nearly 37% reported being at least three months behind on rent payments. The more months behind in rent, the more difficult it is to pay off the balance, and the more likely it is that the household will eventually face eviction. At the time of application 79% of pre-eligibleapplicants stated that they would not be able to pay rent in July.

According to the data, 12% of pre-eligible applicants have already received an eviction notice in the past three months. While some cities had issuedemergency eviction moratoriums, these did not offer protections from the financial obligations of renters, leaving those who are behind on rent vulnerable to eviction.

On May 8, 2021, the City hosted at City Hall a Rental Assistance Event. United Way, Lift to Rise and Riverside County described the rental assistance program, which includes payment of up to 12 months of back rent and three months of future rent.

M. FAIR HOUSING ENFORCEMENT, OUTREACH AND RESOURCES ANALYSIS

1. Fair Housing Enforcement
a. Background
HUD’s AFFH Rule Guidebook states the following regarding the lack of private fair housing outreach and enforcement:

The term “local private fair housing outreach and enforcement” refers to outreach and enforcement actions by private individuals and organizations, including such actions as fair housing education, conducting testing, bring lawsuits, arranging and implementing settlement agreements. A lack of private enforcement is often the result of a lack of resources or a lack of awareness about rights under fair housing and civil rights laws, which can lead to underreporting of discrimination, failure to take advantage of remedies under the law, and the continuation of discriminatory practices. Activities to raise awareness may include technical training for housing industry representatives and Item Number: 7.

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organizations, education and outreach activities geared to the general public, advocacy campaigns, fair housing testing and enforcement.

Source: U.S. Department of Housing and Urban Development, AFFH Rule Guidebook, December 13, 2015, page 212
The City is required to identify local and regional fair housing or civil rights agencies and organizations that provide fair housing information, outreach, and enforcement, and to describe their capacity to assist in fair housing analysis and investigation. b. Analysis
The enforcement of fair housing laws is accomplished by HUD, the California Department of Fair Employment and Housing (DFEH) and the Fair Housing Council of Riverside County, Inc. (FHCRC).

The DFEH is responsible for enforcing state fair housing laws that make it illegal to discriminate.

The DFEH may file signed complaints with HUD if the matter falls within the jurisdiction of that agency. As a substantially equivalent agency, DFEH’s findings are usually accepted by HUD. (A state or local agency may be certified as substantially equivalent after it applies for certification and HUD determines that the agency administers a law that provides substantive rights, procedures, remedies and judicial review provisions that are substantially equivalent to the Fair Housing Act. Typically, once certified, HUD will refer complaints of housing discrimination that it receives to the state or local agency for investigation.) Locally, the FHCRC takes part in a variety of activities to fight housing discrimination, such as free educational workshops, outreach to the community, and the investigation of housing discrimination complaints. The capacity of the FHCRC enables it to provide fair housing information, outreach, and enforcement to 24 cities and communities located in Riverside County plus the unincorporated area of the County.

FHCRC includes a total of 14 staff: two Housing Counselors, five Fair Housing Counselors, one Program Manager, one Fair Housing Testing Coordinator, one Fair Housing Outreach Specialist, one Accountant, an Executive Director and two administrative staff members. FHCRC also has two interns.

The funding that supports the efforts of the FHCRC includes CDBG funds received from participating jurisdictions within its service area and grant funds such as HUD’s Fair Housing Initiatives Program (FHIP). The City is a cooperating city in the Urban County CDBG Program.

The County of Riverside annually allocates CDBG funds to the FHCRC.

FHIP provides funds to eligible organizations through competitive grants under three initiatives that are designed to prevent or eliminate discriminatory housing practices and inform individuals of their rights and responsibilities under the Fair Housing Act. In FY 2020, the FHIP program awarded $40 million in grants to 110 organizations to meet the objectives under one or more of Item Number: 7.

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the core program initiatives: enforcing the Fair Housing Act under the Private Enforcement Initiative, educating the public and industry stakeholders on fair housing under the Education and Outreach Initiative, and building organizational capacity under the Fair Housing Organizations Initiative.

HUD provides FHAP funding annually on a noncompetitive basis to state and local agencies that enforce fair housing laws that are substantially equivalent to the Fair Housing Act. FHAP agencies support a variety of fair housing administrative and enforcement activities, including complaint investigation, conciliation, administrative and/or judicial enforcement; training; implementation of data and information systems; and education and outreach.

The FHCRC was awarded a FHIP Private Enforcement Initiative (PEI) grant of $360,000 and a FHIP Education and Outreach Initiative (EOI) grant of $125,000 to undertake various enforcement, education and outreach activities that promote Fair Housing. The activities are designed to minimize and eliminate impediments to fair housing choice. Specifically, FHCRC conducts systemic investigations, provides technical assistance to municipalities regarding compliance with fair housing laws, and provide fair housing education to the population of Riverside County.

FHCRC’s proposed activities include conducting fair housing tests on rentals, sales and design and construction; hosting the Annual Housing Conference during National Fair Housing Month; creating partnerships with local agencies and three partnerships with universities and colleges, conducting town hall meetings to connect the public with housing professionals and industry leaders, conduct trainings, create new educational materials in various languages and systemic investigations which will help remove barriers to fair housing.

The FHCRC provides a full range of services including:
§ Anti-discrimination
§ Landlord/tenant counseling
§ First time homebuyer seminars
§ Foreclosure prevention
§ Loan modification
§ Back-to-Work FHA
§ Training
Additionally, the FHCRC completed a Cultural Diversity Grant through the National Association of REALTORs (NAR) for the Inland Valleys Association of REALTORs (IVAR) members to attend the 2020 and 2021 Housing Conferences.

FHCRC is also a certified continuing education credit training organization through the California Department of Real Estate.

Item Number: 7.

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2. Housing Discrimination Complaints
Between FY 2014-2015 and FY 2019-20, FHCRC received 198 fair housing related inquiries from Desert Hot Springs residents. Of the cases opened, 90 cases (45%) involved allegations of discrimination based on physical disability; 35 cases (18%) based on national origin; and 21 cases (11%) based on mental disability.

In 2018, a fair housing complaint involving national origin and familial status was settled. There were over 80 complainants involved in this case, which initially began in 2014. The City continued partnering with the FHCRC to investigate complaints placed through phone or walk-in complaints at the local office in Palm Springs.

FHCRC conducted a fair housing presentation in Desert Hot Springs in October of 2016 in which seven persons attended and 25 pieces of fair housing literature were distributed. FHCRC staff also attended and hosted a booth at the Desert Hot Springs Resource Fair, in October of 2015.

Most recently, FHCRC staff attended the DHS Housing Element Workshop in September of 2019 and the Housing Webinar in May of 2020. Also, FHCRC conducted outreach at various locations throughout Desert Hot Springs and distributed over 300 pieces of fair housing educational literature from 2015 to present.

HUD’s San Francisco Regional Office reported 12 housing discrimination complaints filed by Desert Hot Springs residents in the seven year period from January 1, 2014 to December 31, 2020. The basis for seven of the 12 complaints was disability. Disability and retaliation were the bases for one complaint. And sex and disability were the bases for one complaint.

3. Civil Rights Institute of Inland Southern California (CRI) The Civil Rights Institute of Inland Southern California (CRI) is a non-profit 501(c)(3) currently under construction in Downtown Riverside and will serve as a repository that will include exhibit and archival space for historical civil rights documents, artifacts, videos and audio recordings of all of the communities and regions surrounding Riverside County. The CRI will be located in a five-story building which also includes a large conference room, an office for the Fair Housing Council of Riverside County Inc. and 72 units of affordable housing.

Although the CRI will have a significant focus on African American contributions to the civil rights movement, its purpose is to include and embrace all ethnic communities and perspectives. The proposed activities that the CRI will provide include:
§ Providing public programming and children’s programs focusing on civil rights and the region’s civil rights history
§ Program exhibits and performances that support civil rights activities § Housing an archive and library of regional civil right materials § Conducting oral history projects and support the production of civil rights audio and video productions through the media center
§ Recognizing the region’s civil rights leaders and their impacts Item Number: 7.

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4. Other Fair Housing Enforcement Agencies Located in the Region In Los Angeles County, there are two fair housing enforcement agencies: Housing Rights Center and the Fair Housing Foundation. They serve cities located in Ventura County, Los Angeles County, and Orange County.

In Orange County, there is one fair housing enforcement agency: Fair Housing Council of Orange County. It serves cities located in Orange County.

The Inland Fair Housing and Mediation Board serve cities located in San Bernardino County and Imperial County.

5. Conclusion
No fair housing issue exists because of the lack of an organization to enforce fair housing laws.

The FHCRC provides a full range of fair housing services and is the City’s fair housing provider.

N. FAIR HOUSING ISSUES AND CONTRIBUTING FACTORS
The research and analysis demonstrates that the following are not fair housing issues:
§ Integration and segregation patterns and trends
§ Racially or ethnically concentrated areas of poverty
Fair housing issues exist because of –
§ Disproportionate housing needs
§ Disparities in access to opportunity
Disproportionate housing needs are experienced by Hispanic (cost burdens, overcrowding) and Black householders (cost burdens).

It is unclear if there is sufficient evidence to declare displacement risk a fair housing issue.

Nonetheless, the City has included a Displacement Risk Program (Program 5.6) in Section II of the 2021-2029 Housing Element.

1. Contributing Factors to Disproportionate Housing Needs a. Cost Burdens
The specific factors that contribute to the disproportionate housing needs are unclear.

Cost burdens are a function of two components: household income and housing costs. The household income of some Hispanic and Black households is not enough for them to afford market rate rents. For example, a monthly income of $5,000 is needed to afford a monthly rent of $1,500 ($5,000 X .30 = $1,500).

Item Number: 7.

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It also is possible, but cannot be proven with the available data, that a contributing factor could be that lower cost rental opportunities become unavailable to Hispanic and Black households because of housing discrimination. Thus, the contributing factor could force these households to live in housing that is more costly and thereby create a housing cost burden.

The analysis of disproportionate housing needs must also consider the racial and ethnic composition of the households who are receiving housing assistance. Data on this characteristic is unavailable for the City. However, an indicator of the City’s racial/ethnic makeup of the families receiving housing is data from the Housing Authority of the County of Riverside.

There are 8,364 households receiving tenant-based rental assistance in the County. Of this number, 34.3% are Black/African American and 26.5%% are Hispanic. The Black/African American population comprises 6% of Riverside County’s population whereas the Hispanic population represents 47% of the County’s population.

There are 456 households living in public housing. Of this number, 27.6% are Black/Africa American and 54.8% are Hispanic.
b. Overcrowding
Hispanics are disproportionately impacted by overcrowding. In comparison to other populations, Hispanic householders have large families and live in multigenerational households.

A recent analysis of overcrowded housing among Latino households included the following recommendations:

Municipalities should address explicitly Latino housing needs in their housing action plan, especially the availability ofaffordable housing
Latino housing needs should be identified and represented in municipal housing strategic action plans. Primary among these needs is affordable housing. The availability of affordable housing is a critical concern for many suburban communities and ought to be addressed collaboratively as a regional issue. The cost of housing has implications for all residents—not just Latinos—yet research in this area specific to Latinos is necessary to identify how their needs may be distinct. One example of Latino housing needs is the demand for large housing units. Census data suggests that Latinos are more likely than non-Latinos to live in multi-generational households, so the availability of large, affordable housing units is critical.

A potentially important opportunity for local governments to take Latino housing concerns into account is when planning documents are drawn up for new developments.

Source: Latinos United, by Benjamin J. Roth, Bajo el Mismo Techo: The Latino Community in Suburban Chicago: An Analysis of Overcrowded Housing, page 21 Item Number: 7.

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Riverside County’s Hispanic overcrowding rate is 13.9%. In contrast, the City’s Hispanic overcrowding rate is 16%.

Although Hispanics experience disproportionate needs regarding overcrowding, the City’s affordable housing stock serves large families well. The following tax credit rental affordable housing developments contain apartment units meeting the space needs of large families:
§ Arroyo de Paz I: 20 3-bedroom units and 12 4-bedroom units § Arroyo de Paz II: 12 3-bedroom units and 8 4-bedroom units § Brisas de Paz: 25 3-bedroom units
§ Verbena Crossing: 48 3-bedroom units
§ Desert Horizons: 11 3-bedroom units
Altogether these five developments contain 116 3-bedroom units and 20 4-bedroom units.

2. Contributing Factors to Disparities in Access to Opportunity According to the AFFH Rule:

Preparation of an AFH could be an important step in reducing poverty among groups of persons who share characteristics protected by the Fair Housing Act. The focus and purpose of the AFH is to identify, and to begin the process of planning to overcome, the causes and contributingfactors that deny or impede housing choice and access to opportunity based on race, color, religion, sex, national origin, familial status, and disability.

Federal Register July 16, 2015, page 42283
Increasing the number of families with incomes above the poverty level will help to alleviate housing problems such as severe cost burdens (and, perhaps, cost burdens) and overcrowding.

Poverty reduction strategies focused at the neighborhood level also will help to enhance access to opportunity.

The Community Action Partnership (CAP) has concluded that poverty contributes to several problems. According to the CAP:

The primary contributing factors to poverty (labeled as such instead of causes, since there is not comprehensive evidence for, or agreement on, what the various causes are) in Riverside County appear to be (in no specific order):

Employment (availability of jobs, or wages paid in the available jobs) Lack of higher educational/vocational skill attainment, race (especially in connection with Hispanic or Latino, Black/African American, and Native American individuals/families); and
The high cost of living (demonstrated by needs identified in such areas as housing, utility bills, health care, transportation, food, etc.).

Item Number: 7.

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From community members and key informant interviews, the policy issues expressed as contributing factors included:

Income eligibility thresholds that are far too low, which therefore disqualify residents in need from receiving services, and
Restrictive regulations and costs for developing affordable housing.

Conditions ensuing from these contributing factors are evidenced in the priority needs which have been identified. Among the priority needs are utility assistance and housing assistance.

Source: County of Riverside Community Action Partnership, 2020-2021 Community Action Plan, submitted to California Department of Community Services and Development/Community Services Block Grant, pages 11 and 12 O. FAIR HOUSING PRIORITIES, GOALS AND STRATEGIES
The fair housing priorities, goals and strategies are set forth in the context of the following:
§ Findings and conclusions drawn from the research and analysis conducted to prepare the Assessment of Fair Housing.
§ Findings and conclusions drawn from completion of the Assessment of Housing Needs (Appendix A), especially in regard to cost burdens, severe cost burdens, overcrowding and the special needs of the elderly, families with children, female householders, and large families.
§ City’s share of the regional lower income housing need (N=1,104 housing units) § Findings and conclusions drawn from the analysis conducted on the sites inventory to affirmatively further fair housing in Part F, Appendix C Sites Inventory and Analysis. § Fair housing services, resources and experience of the staff at the Fair Housing Council of Riverside County, Inc.

1. Priorities
§ Addressing the disproportionate housing needs experienced by Hispanic and Black households.
§ Producing affordable housing that accommodates the housing needs of fair housing protected groups such as the elderly, frail elderly, disabled, families, and veterans.
§ Increasing the community’s awareness of fair housing (e.g., renters, on-site property managers, City staff (Planning, Housing, and Code Enforcement), and City commissions.

Item Number: 7.

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2. Goals
§ Enhance the City’s ability to affirmatively further fair housing through the implementation of effective strategies, outreach to County Departments and agencies including the Community Outreach Branch of the Department of Public Social Services, and Coachella Valley Association of Governments (CVAG) § Reduce poverty by increasing incomes so that cost burdens and overcrowding are reduced, particularly for the population living in neighborhoods with the lowest resources.

3. Strategies
§ Adopt a policy that new affordable housing developments must implement an Affirmative Fair Housing Marketing Plan, a plan that describes specific steps that will be taken by developers to ensure that renters and buyers who are unlikely to apply for housing without special outreach have equal access to housing opportunities available in new housing developments.

Refer to Attachment A for an example.
§ Develop and implement a poverty reduction strategy focused on the neighborhoods with the lowest access to opportunity as identified by the TCAC/HCD Opportunity Mapping Tool.

Attachment B describes the City’s poverty reduction strategy and placed-based strategies to improve access to opportunity.
§ Develop and implement mobility strategies which fall within the capabilities of the City.

Attachment C describes the mobility strategies.

The action programs to implement the priorities, goals, and strategies to affirmatively further fair housing are described in Section II.

Item Number: 7.

APPENDIX B ASSESSMENT OF FAIR HOUSING
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Attachment A
City of Desert Hot Springs
Affirmative Fair Housing Marketing Plan
A. Targeting. Identify the segments of the eligible population which are least likely to seek housing without special outreach efforts.
a. Consider the current racial and ethnic composition of Desert Hot Springs. b. Also consider language barriers (especially Hispanic population in the City) and income eligibility requirements.
c. Obtain the assistance of the Fair Housing Council of Riverside County, Inc. to develop targeting efforts.

B. Outreach. Outline an outreach program which includes special measures designed to attract those groups identified as least likely to seek housing and other efforts designed to attract persons from the total population.
a. Community Contacts. The affordable housing developer should list at least one community organization that serves each group determined to be least likely to seek housing and who has agreed to help the developer in their marketing efforts. In the plan include the name of the contact person, contact information, experience working with the target population as well as the number and languageof materials to be provided to such agencies.
b. Media. The housing developer should specify the particular means of advertising to reach a target group and the reasoning behind the particular type of advertising.

Advertisements should include the fair housing logo.
c. If the immediate housing market area is not demographically diverse enough to draw applicantsconsidered “least likely to apply” then an expanded housing market area should be used.

C. Indicators. Describe the indicators to be used to measure the success of the marketing program.
a. Recording information on how an individual heard about the housing and why they decided toseek that housing will provide useful data for the evaluation process. b. In addition, comparing the number of units now occupied by persons previously determined tobe “least likely to apply” and the number of people least likely to apply on the waiting list prior to and after the marketing process is a starting place for the evaluation.

D. Staff Training. Demonstrate the capacity to provide training and information on fair housing laws and objectives to sales or rental staff.

Item Number: 7.

APPENDIX B ASSESSMENT OF FAIR HOUSING
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Attachment B
City of Desert Hot Springs
Poverty Reduction Strategy
And
Place-Based Strategies to Improve Access to Opportunity

1. American Rescue Plan Policies
State, County and City efforts to reduce poverty cannot match the impact of those of the federal government. The American Rescue Plan poverty reduction efforts will more than likely lower the poverty rate in 2021 and 2022 to below 30% for all census tracts/neighborhoods located in Desert Hot Springs, including those with the lowest resources. Housing concerns such as severe cost burdens and overcrowding can be mitigated when households experience income gains. It is unlikely that severe cost burdens and overcrowding can be reduced by housing production, including affordable housing production, alone. Household incomes need to increase in conjunction with the production of housing in order to reduce the number of severely cost burdened lower income households.

The City will work with the County and sub-regional agencies to ensure that neighborhood residents are aware of the American Rescue Plan programs and existing programs such as the Earned Income Tax Credit (EITC).

The Urban Institute projects that for 2021 the American Rescue Plan Act will reduce the national poverty rate by one-third. Furthermore, the Urban Institute projects that poverty would fall 42% for Black, non-Hispanic people and 39% for Hispanic people compared with 34% for white, nonHispanic people, thus reducing the disparities in poverty rates for Black, non-Hispanic people and Hispanic people relative to white, non-Hispanic people.

The Urban Institute explains that four key pieces of the legislation will each have direct impacts on families’ economic resources.

Unemployment insurance (UI) benefits: The UI elements of the American Rescue Plan build on and extend the legislation passed in December 2020. Before the passage of the December bill, many unemployed people were set to exhaust their benefits at the end of the year. The December legislation provided 11 additional weeks of benefits and added $300 a week to regular state benefit amounts through the middle of March 2021. This new legislation adds another 25 weeks of benefits (almost six months), including the additional $300 a week, from mid-March through September 6, 2021. The new legislation would also extend the special pandemic UI program for people who do not usually qualify for UI (self-employed and gig workers) from its previous expiration date in March to September.

Supplemental Nutrition Assistance Program (SNAP or “food stamps”) benefits: The SNAP aspects of the American Rescue Plan also build on the legislation passed in December 2020, which increased the maximum monthly SNAP benefit 15% through June 30, 2021. The American Rescue Plan extends the period for increased SNAP benefits by three months, to September 30, 2021.

Recovery Rebate Payments: The legislation provides a one-time payment of $1,400 ($2,800 for married couples), with an additional $1,400 for each dependent. Unlike previous legislation, this legislation allows dependents of any age to be eligible for the rebate, not only children under age Item Number: 7.

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17. The payments begin to phase out at income levels of $75,000 for single filers, $112,500 for head-of-household filers (such as single parents with children), and $150,000 for married couples.

The lower income and poverty income families living in the City’s lowest resource neighborhoods will be eligible for the full recovery payments.

Child Tax Credit: The legislation makes several changes to the child tax credit for tax year 2021.

It makes the credit fully refundable, increases the amount to $3,600 per child under age 6 and $3,000 per child age 6 and older, allows the credit to be taken on behalf of a 17-year-old (the prior maximum age was 16), and provides for monthly advance payments of the credit beginning in July.

The increased amount of the credit (the additional $1,000 or $1,600 per child above the currentlaw amount of $2,000) begins to phase out at income levels of $75,000 for single filers, $112,500 for head-of-household filers, and $150,000 for married couples. Half of the credit would be issued in advance payments beginning in July 2021; the remaining credit would be delivered in 2022.

The lower income and poverty income families living in the City’s lowest resource neighborhoods will be eligible for the full child tax credits.

Additional antipoverty effects, the Urban Institute has explained, would likely arise from other provisions aimed at addressing economic hardship, including increasing funding for rental assistance; the Low-Income Home Energy Assistance Program; and the Special Supplemental Nutrition Program for Women, Infants, and Children, as well as exempting a portion of UI income received in 2020 from federal income taxation.

Estimates have been made that the child tax credit will reduce poverty by half. When combined with the State’s new stimulus aid, the payments could lift millions of Californians out of poverty.

California’s Golden State Stimulus package includes $600 one-time payments to households receiving the state’s earned income tax credit.

Sources:

Cal Matters, ‘Revolutionary’ Federal Stimulus Bill Could Cut California Poverty by Half, March 11, 2021, Author: Jackie Botts, 8 pages
Parolin, Zachary, Sophie Collyer, Megan A. Curran, and Christopher Wimer. 2021. "The Potential Poverty Reduction Effect of the American Rescue Plan." Center on Poverty and Social Policy, Columbia University. www.povertycenter.columbia.edu/news-internal/2021/presidentialpolicy/bideneconomic-relief-proposal-poverty-impact The Century Foundation, The American Rescue Plan Could Cut Child Poverty in Half, March 9, 2021, 3 pages
Urban Institute, 2021 Poverty Projections: Assessing Four American Rescue Plan Policies, March 2021, 15 pages; Authors: Laura Wheaton, Sarah Minton, Linda Giannarelli and Kelly Dwyer Item Number: 7.

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The TCAC/HCD Opportunity Tool includes three measures which are associated with poverty:
§ Poverty: % of the population with income above 200% of the federal poverty line § Student Poverty: % of students not receiving free or reduce-price lunch § Poverty Tracts: census tracts with at least 30% of the population falling under the federal poverty line
Within the City’s lowest resource census tracts/neighborhoods, the American Rescue Plan will likely –
§ Increase the population with income above the 200% of the federal poverty line § Reduce the student poverty
§ Lower the poverty rate below 30% in all of the lowest resource neighborhoods With reduced food insecurity and more income, the secondary benefits of the American Rescue Plan could be better academic performance (math proficiency, reading proficiency) and an increase in high school graduation rates.

In the aggregate, the American Rescue Plan policies will lead to improvements in several of the opportunity mapping measures and could lift some of the City’s lower resource neighborhoods to a moderate resource category and thereby improve access to opportunity.

The City will work with the Community Action Partnership to ensure that families living in the lowest resource neighborhoods are aware and make use of the programs available through the American Rescue Plan. Information also will be disseminated on existing programs that benefit poverty income families such as the Earned Income Tax Credit (EITC).

2. Earned Income Tax Credit (EITC)
The earned income tax credit (EITC) provides substantial support to low- and moderate-income working parents, but very little support to workers without qualifying children (often called childless workers). Workers receive a credit equal to a percentage of their earnings up to a maximum credit.

Both the credit rate and the maximum credit vary by family size, with larger credits available to families with more children. After the credit reaches its maximum, it remains flat until earnings reach the phase out point. Thereafter, it declines with each additional dollar of income until no credit is available (figure 1).

By design, the EITC only benefits working families. Families with children receive a much larger credit than workers without qualifying children. (A qualifying child must meet requirements based on relationship, age, residency, and tax filing status.) In 2020, the maximum credit for families with one child is $3,584, while the maximum credit for families with three or more children is $6,660.

Item Number: 7.

APPENDIX B ASSESSMENT OF FAIR HOUSING
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In contrast to the substantial credit for workers with children, childless workers can receive a maximum credit of only $538. Moreover, the credit for childless workers phases out at much lower incomes. Also, childless workers must be at least 25 and not older than 64 to qualify for a subsidy—restrictions that do not apply to workers with children. As a result of these tighter rules, 97 percent of benefits from the credit go to families with children.

Source: The Tax Policy Center, Briefing Book: Key Elements of the U.S. Tax System, What is the Earned Income Tax Credit, page 2
EITC is one of the most efficient anti-poverty programs Unclaimed EITC dollars are never spent on local business, fewer jobs are created or supported, fewer wages are paid, and eventually less tax revenue goes to state and local governments.

Based on conservative estimates of an EITC non-filer rate of 20% and 75% of the tax credit received by filers, the Riverside County negative consequences include:
§ EITC Returns Unclaimed: 71,643
§ Average EITC: $1,892
§ Unclaimed EITC Payments: $135,547,000
§ 80% Spent Locally: $108,437,600
§ Foregone Output: $161,135,715 (multiplier effect)
§ Foregone Jobs: 1,033
§ Foregone Labor Income: $56,722,365
Antonio Avalos, Ph.D., University Business Center, California University, Fresno, The Costs of Unclaimed Earned Income Tax Credits to California’s Economy: Update of the “Left on the Table” Report, March 2015, 28 pages
Consequently, it is important that poverty income householders living in low resource neighborhoods become aware of the benefits of filing for the EITC.

Table B-33 shows the 2021 EITC parameters.

Chart B-1 is a graph showing how the EITC works.

Item Number: 7.

APPENDIX B ASSESSMENT OF FAIR HOUSING
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Table B-34
EITC 2021 Parameters
Credit
Rate
(Percent)
Minimum
Income for
Maximum Credit
Maximum
Credit
Phase-out Rate
(Percent)
Phase-out Range[1]
Beginning
Income
Ending
Income
No children [2] 15.3 9,820 1,502 15.3 11,610 21,427
One child 34 10,640 3,618 15.98 19,520 42,158
Two children 40 14,950 5,980 21.06 19,520 47,915
Three children 45 14,950 6,728 21.06 19,520 51,464
[1] Beginning in 2002, the values of the beginning and ending points of the phase-out range were increased for married taxpayers filing jointly. The values for these taxpayers were $1,000 higher than the listed values from 2002-2004, $2,000 higher from 2005-2007; $3,000 higher in 2008; $5,000 higher in 2009; $5,010 higher in 2010; $5,080 higher in 2011; $5,210 higher in 2012; $5,340 higher in 2013; $5,430 higher in 2014; $5,520 higher in 2015; $5,550 higher in 2016; $5,590 higher in 2017; $5,690 higher for families with children and $5,680 for families without children in 2018; $5,790 for families with children and $5,800 for families without children in 2019; $5,890 higher in 2020; $5,950 higher for families with children and $5,940 higher for families without children in 2021. [2] Parameters for filers with no custodial children at home ("childless" filers) were updated on March 19, 2021 to reflect the temporary expansion of the Earned Income Tax Credit enacted as part of the American Rescue Plan Act of 2021.

Table does not reflect all elements of the 2021 expansion, such as those relating to eligibility age and eligibility for post-secondary students, former foster children, and homeless youth. For additional information, see Congressional Research Service, "The American Rescue Plan Act of 2021 (ARPA; H.R. 1319) Title IX Subtitle G—Tax Provisions Related to Promoting Economic Security," updated March 1, 2021.

Sources: 1975-2003: Joint Committee on Taxation; Ways and Means Committee, 2004 Item Number: 7.

APPENDIX B ASSESSMENT OF FAIR HOUSING
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Chart B-1
Earned Income Tax Credit (EITC) Parameters
Earned Income Tax Credit 2020
Item Number: 7.

APPENDIX B ASSESSMENT OF FAIR HOUSING
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3. Place-Based Poverty Reduction Strategies
a. Poverty Measures and Poverty Thresholds
Measuring poverty is a two-step process:
§ Establishing a poverty threshold which is the amount of money needed to achieve a minimum level of material well-being.
§ Estimating families’ cash and non-cash resources and comparing them to the poverty threshold to determine whether a family is below it and, therefore, defined as “poor”.

Examples of official federal 2020 poverty thresholds are:
§ 1 person less than 65 years of age $13,465
§ 2 people, householder less than 65 years of age $17,331 § 3 people, 1 child less than 18 years of age $20,832
§ 4 people, 2 children less than 18 years of age $26,246 b. Community Action Partnership
The County of Riverside Community Action Partnership uses census data to identify poverty pockets in its services territory. Outreach is done in these areas, and partnerships and community projects are then developed to target and engage these high-needs communities. Additional distressed communities are brought to light through the countywide community needs assessmentsor demand for services. The County of Riverside Community Action Partnership utilizes its CAP Mobile to provide services and information to remote, rural communities.

The City will undertake the following strategies and actions to improve the well-being of the most income-poor pockets:

The City staff will work cooperatively with the Community Action Partnership staff to determine:
§ The criteria and census/ACS data used to identify pockets of poverty § The City staff will then complete research to identify the pockets of poverty that exist in Desert Hot Springs (using block or block group data). § The City staff will prepare a profile of information on housing, demographics, and wellbeing (health insurance, use of SNAP, use of public assistance). § The City staff will then work with the CAP staff to deliver in-house services and community projects that will provide beneficial impacts to the residents of the pockets of poverty.

The County of Riverside Community Action Partnership service delivery system follows three parallel avenues: 1) programs directly administered by CAP Riverside (in-house); 2) programs funded by the County of Riverside Community Action Partnership through a Request for Proposal (RFP) process (subcontracted); and 3) programs established as “demonstration” programs.

Participants are encouraged to cross-enroll in programs to maximize resources for achieving selfsufficiency.

Item Number: 7.

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In-house programs include:
§ Energy Services (utility bill payment assistance, energy conservation education, and home weatherization services);
§ Alternative Dispute Resolution (mediation, arbitration, peer mediation training, and community education workshops);
§ Pre- Apprenticeship Programs (youth workplace mentor / job training program); § On-the-job training for veterans (Veterans Education and Employment Program); § Earned Income Tax Credit (EITC),
§ Free Tax Preparation Program (Volunteer Income Tax Assistance - VITA), and year-round free tax-preparation;
§ Saving for Success (an asset-building savings match program for buying a home, continuing education or starting/expanding a business); and § Disaster preparedness and relief (Cool /Warm Centers, etc.). c. County of Riverside Anti-Poverty Strategy
The County of Riverside adopts an anti-poverty strategy as a key component of the 2019-2024 Consolidated Plan. Poverty reducing activities adopted as part of the strategy include, but are not limited, to:
§ Encourage economic development and economic opportunity in the low and moderate income areas
§ Provide Job Training and Life Skills Development
§ Provide programs and services offering education and wealth building opportunities
d. Targeted Mortgage Credit Certificate (MCC) Program
The program provides incentives for higher income homebuyers to purchase homes in high poverty neighborhoods. The County MCC Program targets the following Desert Hot Springs census tracts: 445.07, 445.09, 445.10, 445.15, 445.21, and 472.01.

An MCC is a federal income tax credit designed to assist low income households to afford home ownership. With an MCC, the qualified homebuyer is eligible to write off a portion of the annual interest paid on the mortgage as a special tax credit, not to exceed $2,000, during each year that they occupy the home as their principal residence. The portion or amount of thetax credit is equal to the mortgage credit rate on the MCC (for example 35%) multiplied by the annual interest paid. This credit reduces the federal income taxes of the buyer, resulting in an increase in the buyer’s net earnings. Increased buyer income results in increased buyer capacityto qualify for the mortgage loan. The MCC has the potential of saving the MCC holder thousandsof dollars over the life of the loan.

Item Number: 7.

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An incentive to attract buyers to the MCC target areas in Desert Hot Springs is that the maximum purchase price is $480,527. Outside of target areas the maximum purchase price is $393,158.

Inside the target area, the maximum income is $105,420. Outside the target area it is $86,595.

Both the maximum purchase price and maximum income limits may attract moderate income households to neighborhoods with the lowest resources. Overtime neighborhoods could improve their Opportunity Mapping indicators and measures such as median home values and, perhaps, educational attainment.
e. At-Risk Housing Monitoring
Housing Element law requires jurisdictions to provide an analysis and program for preserving affordability of assisted housing developments for the next 10 years. Based on City records and information from the California Housing Partnership Corporation, in the next 10 years (up to 2031) no assisted housing developments in Desert Hot Springs are at risk of losing their affordability status.

Although the City has not identified any housing units at risk of converting to market rate housing during the planning period, City staff will monitor the status of existing and future affordable housing developments. Should any of the properties become at risk of converting to market rate, the City will work with property owners, interest groups, and the State and federal governments to conserve the affordable housing stock.

Table B-34 lists the City’s affordable rental stock and shows the census tract and block group location. All affordable housing projects are at a low risk of conversion to market rate housing.

Table B-35
City of Desert Hot Springs
Affordable Housing Projects
Property Address Low
Income
Units
Total
Units
Funding
Source
Census
Tract
Block
Group
Casa del Sol & Casa West
Apartments (Site A)
66555 Fourth St. 154 156 LIHTC/USDA 445.09 1
Desert Horizon Apartments 66789 Two Bunch Palms Trail 43 44 LIHTC/USDA 445.16 2 Arroyo de Paz I Apartments 66765 Two Bunch Palms Trail 59 60 LIHTC 445.16 2 Arroyo de Paz II Apartments 66765 Two Bunch Palms Trail 34 34 LIHTC 445.16 2 Brisas de Paz 65921 Flora Avenue 61 62 LIHTC 445.07 1
Desert Hot Springs Portfolio -
(Linda Vista Site A)
67200 Hacienda Avenue, 97 99 LIHTC 445.10 1
Hacienda Hills 67150 Hacienda Avenue 59 60 LIHTC 445.10 1 Verbena Crossing Apartments 66950 Ironwood Drive 94 96 LIHTC 445.10 2 Desert Hot Springs 11190 Mesquite Avenue 20 79 HUD 445.09 1 Item Number: 7.

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Attachment C
Description of Mobility Strategies

1. County of Riverside Housing Authority Housing Opportunity Area Maps The City will coordinate with the Housing Authority to implement mobility strategies. At a minimum, the City will post on its website the Housing Opportunity Area Maps and describe the workshops to be conducted during the 8-year planning period by the Fair Housing Council of Riverside County, Inc.

The Housing Authority’s Housing Choice Voucher Administrative Plan explains that guidance and materials are offered to assist a family in selecting a housing unit. The staff indicates to families that they should consider proximity to employment, public transportation, schools, shopping and the accessibility of services.

During briefings sessions the Housing Authority encourages families to move to high opportunity areas by explaining the advantages of moving to an area that may offer better quality housing, education and employment opportunities. The Housing Authority provides families with Housing Opportunity Area Maps that cover the Coachella Valley and western Riverside County.

2. Information on Source of Income Discrimination
In addition, the City will provide residents with information explaining that California law prohibits source of income discrimination. The California Fair Employment and Housing Act (FEHA) prohibits housing providers, such as landlords, to refuse to rent to someone, or otherwise discriminate against them, because they have a housing subsidy, such as a Section 8 Housing Choice Voucher, that helps them to afford their rent.

Awareness of that State law prohibiting source of income discrimination will expand the neighborhoods in which Section 8 Housing Choice Voucher holders may seek rental housing.

Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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APPENDIX C SITES INVENTORY AND ANALYSIS
A. GOVERNMENT CODE REQUIREMENTS
In Government Code Section 65580(f) the California legislature finds and declares that - Designating and maintaining a supply of land and adequate sites suitable, feasible, and available for the development of housing sufficient to meet the locality’s housing need for all income levels is essential to achieving the state’s housing goals ….

Guidance on how to complete the sites inventory and analysis is provided by HCD in the following Guidebook:

California Department of Housing and Community Development, Housing Element Site Inventory Guidebook, June 10, 2020, 44 pages
According to HCD’s Guidebook:

The purpose of the housing element’s site inventory is to identify and analyze specific land (sites) that is available and suitable for residential development in order to determine the jurisdiction’s capacity to accommodate residential development and reconcile that capacity with the jurisdiction’s Regional Housing Need Allocation (RHNA). The site inventory enables the jurisdiction to determine whether there are sufficient adequate sites to accommodate the RHNA by income category. A site inventory and analysis will determine whether program actions must be adopted to “make sites available” with appropriate zoning, development standards, and infrastructure capacity to accommodate the new development need.

Sites are suitable for residential development if zoned appropriately and available for residential use during the planning period. If the inventory demonstrates that there are insufficient sites to accommodate the RHNA for each income category, the inventory must identify sites for rezoning to be included in a housing element program to identify and make available additional sites to accommodate those housing needs early within the planning period.

The land inventory must identify sites that –
§ Can be developed for housing within the 8-year planning period of 2021 to 2029 § Sufficient to provide for a jurisdiction’s share of the regional housing need for each income level – lower, moderate and above moderate
B. CRITERIA THAT DETERMINE “ADEQUATE” HOUSING SITES
Several criteria must be satisfied by a site to be deemed “adequate” to accommodate Desert Hot Springs share of the RHNA (regional housing needs allocation). For example, sites should be neither too small nor too large and they should be zoned at densities that are appropriate to accommodate the RHNA by income group.

Item Number: 7.

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1. Types of Sites
A “site” is a parcel or group of parcels that can accommodate a portion of the City’s RHNA. There are many types of sites including:
§ Vacant sites zoned for residential use
§ Vacant sites zoned for nonresidential use that allow residential development § Residentially zoned sites that are capable of being developed at a higher density (non-vacant sites, including underutilized sites)
§ Sites owned or leased by a city, county, or city and county § Sites zoned for nonresidential use that can be redeveloped for residential use including a program to rezone the site to permit residential use § Pending, approved, or permitted development
All of the sites listed in the City’s inventory are vacant. None of the sites are owned or leased by a public agency. The moderate and above moderate income sites are located within areas having approved Specific Plans.

2. Residential Densities Appropriate to Accommodate the Lower Income RHNA According to HCD, the housing element statute allows jurisdictions to use higher density as a proxy for lower income affordability, as long as certain statutory requirements are met. Parcels must be zoned to allow sufficient density to accommodate the economies of scale needed to produce affordable housing. To make this determination, the statute allows the jurisdiction to either demonstrate that the zoning allows a specific density set forth in the statute (known as a default density) or to provide an analysis demonstrating the appropriateness of the zoned densities of the sites identified to accommodate the lower income RHNA.

The City’s default density is “at least” 30 dwelling units per acre. “At least”, according to HCD, means the density range allowed on the parcel by the zone has to include the default density. For example, if a jurisdiction has a default density of 30 units per acre and the zone allows for range of 20 – 30 dwelling units per acre, the zoning is considered appropriate to accommodate the RHNA for lower income households.

The City has two zones that permit a density of “at least” 30 dwelling units per acre: R-H and MUC:
§ Residential High
The Residential High (R-H) designation allows for multiple unit developments between 20 and 30 units per acre. This designation is primarily located near transit lines and commercial centers that offer convenient services and amenities to residents. The Zoning Ordinance permits a building height of two to four stories. § Mixed Use Corridor
Mixed-use development refers to an integration of residential and commercial uses as part of a cohesive development plan, with the residential component either in the same building as the commercial (vertical mixed use) or on an adjacent lot with a clear relationship to the commercial use (horizontal mixed use). Mixed-use projects must include a viable neighborhood-serving retail and service component.

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The MU-C Zone permits housing with densities between 20 and 30 dwelling units per acre.

The Zoning Ordinance permits a building height of two to four stories.

3. Size of Sites
To be deemed adequate to accommodate housing for lower income households, the size of sites should be neither too small nor too large.
a. “Small” Sites Are Inadequate
A parcel smaller than one half acre is considered inadequate to accommodate housing affordable to lower income households, unless the housing element demonstrates development of housing affordable to lower income households on these sites is realistic or feasible.

None of the sites included in the City’s sites inventory are smaller than one half acre. b. “Large” Sites Are Inadequate
Parcels larger than 10 acres, according to HCD, are considered inadequate to accommodate housing affordable to lower income households, unless the housing element demonstrates development of housing affordable to lower income households on such sites was successful during the prior planning period, or there is other evidence that the site is realistic and feasible for lower income housing.

None of the sites included in the City’s sites inventory are larger than 10 acres.

4. No Net Loss Law
The “no net loss” law encourages cities to identify in the land inventory sites with a total housing unit capacity that exceeds the RHNA allocation for each income group. HCD provides the following guidance:

To comply with the No Net Loss Law, as jurisdictions make decisions regarding zoning and land use, or development occurs, jurisdictions must assess their ability to accommodate new housing in each income category on the remaining sites in their housing element site inventories. A jurisdiction must add additional sites to its inventory if land use decisions or development results in a shortfall of sufficient sites to accommodate its remaining housing need for each income category.

To ensure that sufficient capacity exists in the housing element to accommodate the RHNA throughout the planning period, it is recommended the jurisdiction create a buffer in the housing element inventory of at least 15 to 30 percent more capacity than required, especially for capacity to accommodate the lower income RHNA. Jurisdictions can also create a buffer by projecting site capacity at less than the maximum density to allow for some reductions in density at a project level.

Source: California Department of Housing and Community Development, Housing Element Site Inventory Guidebook, June 10, 2020, page 22 Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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5. Sites to Affirmatively Further Fair Housing
AB 686 requires a jurisdiction’s site inventory “…shall be used to identify sites throughout the community, consistent with…” its duty to affirmatively further fair housing. The identified sites must be evaluated relative to segregation and integration, racially and ethnically concentrated areas of poverty, areas of affluence, access to opportunity, and disproportionate housing needs.

HCD has stated that the California Tax Credit Allocation Committee/California Department of Housing and Community Development Opportunity Maps are one possible resource that jurisdictions may use to identify “low” resource areas and “areas of segregation and concentration”.

Another resource for identifying “acceptable” compared to “non-acceptable” neighborhoods as a location for affordable housing is HUD’s definition of “racially/ethnically concentrated areas of poverty.” The data presented in Appendix B – Assessment of Fair Housing – demonstrates that Desert Hot Springs has no R/ECAPs. TCAC/HCD uses a 30% poverty threshold compared to HUD’s poverty threshold of 40%.

C. SITES TO ACCOMMODATE THE ABOVE MODERATE INCOME RHNA OF 2,081

HOUSING UNITS
The Skyborne and Tuscan Hills Specific Plans are the primary sites that accommodate the RHNA above moderate income housing need of 2,081 housing units. There is additional low density residential vacant land and vacant land in other approved Specific Plans such as Highland Falls and Two Bunch Palms. However, Skyborne is identified as a site because it is currently under development and Tuscan Hills is likely to commence development sooner than the other Specific Plans. In addition, as described below, a number of smaller-scale tracts and infill lots are available to meet the RHNA allocation for above moderate income households. Together these sites have sufficient housing to accommodate the above moderate income RHNA.

1. Sales Prices
New single family housing in the master planned communities will probably have similar housing prices. As of March 2021, the pricing of yet to be built single family homes is approximately $350,000+, a price likely to increase in the years ahead as new phases of development are constructed.

Housing priced at $350,000 or more will necessitate above moderate incomes for most purchases.

The average household size of home owners living in the City is 2.7. The 3-person above moderate income limit in Riverside County is $81,300 or more. The annual income translates to a monthly income of $6,775. Using the ability to pay standard of 30% means that an affordable housing payment should not exceed $2,032.50 (.30 X $6,775).

Item Number: 7.

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A monthly income of approximately $7,440 will be needed to “afford” a new home with a purchase price of $350,000:
§ $350,000
§ 10% down payment
§ $315,000 loan
§ 2.75% interest rate
§ Monthly Payment
ü $1,286.00 Principal and Interest
ü $386.00 Property Taxes
ü $116.00 Hazard Insurance
ü $95.00 Private Mortgage Insurance
ü $350.00 HOA - Homeowner’s Association Fee
ü $2,233.00 [$7,440 x .30 = $2,232]
The monthly payment stated above may underestimate total cost because the interest rate is based on a borrower FICO score of 740 or higher. Borrowers with a lower FICO score will have a loan payment with a higher interest rate. It also is possible that in the years ahead interest rates may be generally higher due to inflation, strength of the economy leading to more purchasing power, more demand to buy homes and Federal Reserve monetary policy.

Skyborne sales price in the summer of 2021 have ranged between $350,000 and $375,000.

2. Skyborne Specific Plan
a. Project Background and History
The original project proposed for this site was the Olympus Golf Course Specific Plan No. 287 approved by the County of Riverside. This project was never constructed and the property was subsequently annexed into the City of Desert Hot Springs on January 2, 1993.

In 2004, following the annexation, the City approved the StoneRidge Specific Plan (original Specific Plan) for 2,140 residential units including the following entitlements: the StoneRidge Specific Plan, General Plan Amendment 02-04 (GPA), Change of Zone 02-04 (CZ), Development Agreement 01-04 (DA) and Tract Maps 32029 and 32030. An Environmental Impact Report was also prepared and adopted (SCH No. 2004061026) for the project and permits issued by the California Department of Fish and Wildlife and U.S. Army Corps of Engineers.

In 2006, the project name was changed from “StoneRidge” to “Skyborne” and construction began.

However, in 2008, the local and national housing markets experienced a sudden and rapid collapse. During the ensuing recession, construction stalled, home sales stopped and the property was eventually sold to the current owner.

As of today Villages I, II and III have recorded tract maps. The balance of the residential Villages (IV-IX) remain vacant but have active Tentative Tract Map approvals due to vesting derived from a Development Agreement between the owner and the City and a series of State-mandated time extensions. In order to develop, the Tentative Tract Maps must be recorded, and Development Review must be conducted for the home models. Following approval of the Development Review permit, building permits will be necessary for the individual homes within each Village. As described in Appendix D, Section G.1., the Development Review process addresses compliance with Zoning (and Specific Plan) standards, and can be approved by the Planning Director.

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The approved Development Agreement for the project vests the master map for the entire site, thereby facilitating future sub-sections of the project, which are implementing the Villages in phases. The Development Agreement does not include any limitations for development, and in fact contains an aggressive schedule of performance for the housing units.

Other project components have also progressed since the original approval. Several are clustered along Karen Avenue and include an 11.7 acre parcel acquired by the Palm Springs Unified School District (PSUSD) for a future elementary school, creation of an adjacent 6-acre parcel containing land for a future public park development as well as the construction of a new fire station. In addition, perimeter road improvements have occurred, such as the dedication and full construction of Pierson Boulevard along the south boundary and partial width construction and dedication of Karen Avenue and Worsley Road along the east and west boundaries. b. Housing Capacity
Skyborne is a community of traditional single family neighborhoods with proposed and optional active adult residential villages. Standard single family residential lots of varying sizes range from 5,500 to 19,000 square feet. Active adult (55+) neighborhoods include smaller lots ranging in size from 3,400 to 4,500 square feet.

As of June 30, 2021, the 154 housing units in Village I had been constructed, All these housing units are credited toward meeting the 5th Cycle RHNA.

As of June 30, 2021, 53 housing units in Village II had been constructed. All these housing units are credited toward meeting the 5th Cycle Housing Element. The remaining 188 yet to be built dwellings in Village II are credited toward accommodating the 6th Cycle RHNA.

Table C-1 identifies the three project phases, the number of housing units in each of the 10 Villages, and the final and tentative tract maps associated with each Village. The 188 units in Village II are currently (2022) under construction and will be occupied in 2022 and 2023. Given the recent high level of activity, which generated 207 new homes through June 30 of 2021 and an additional 188 in 2022, and the current market in the western Coachella Valley, it is expected that 200 units per year will be developed during the planning period. This would result in 1,400 to 1,600 units of above moderate income residential development, and would meet 67 to 79 percent of the City’s above moderate income RHNA.

The Skyborne Villages II through X accommodate 1,786 above moderate income housing units.

Exhibit C-1 shows the locations and number of housing units in each Village.

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Table C-1
City of Desert Hot Springs
Skyborne Specific Plan
Phase Villages
Number of
Housing Units
Residential
Density (du/ac)
Development
Status*
I I 0 4.7 Final
II 188 4.8 Final
III 286 5.0 Final
Subtotal 474
II IV 102 4.6 Tentative
V 411 5.0 Tentative
VI 154 4.6 Tentative
VII 85 4.6 Tentative
Subtotal 752
III VIII 137 4.0 Tentative
IX 241 3.4 Tentative
X 182 3.2 Tentative
Subtotal 560
Total 1,786
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Exhibit C-1
Skyborne Specific Plan
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3. Tuscan Hills Specific Plan
a. Project Background and History
Tuscan Hills is located along the north side of Pierson Boulevard, east of Foxdale Drive. (APN's 638-340-003, 005, 006, 007, & 638-330-001, 002, 003, & 632-270-006).

In 2019, the Tuscan Hills Specific Plan (02-16) was approved with approved TTM No. 36774 for future development. The approved TTM includes 564 single family residential lots. Other TTM will follow for entitlements for residential development. These TTMs will be accompanied by Development Review permits for the model homes, which is an analysis of conformance with the Zoning (and Specific Plan) standards for the project, as described in Appendix D. The housing production within the Tuscan Hills Specific Plan will be at market rate and it is expected that this housing type will meet the moderate and above moderate housing need.

The Specific Plan also has commercial components that include retail and hospitality uses. The commercial component will benefit the future residents of Tuscan Hills in that retail uses will be nearby, and this can minimize vehicle miles traveled (VMT) and help create an urban environment. The design standards encourage pedestrian activity and design features that will enhance the quality of living of future residents.

The Development Agreement is scheduled to go to City Council in June or July of 2022, and this process has generated interest from developers. The amendment is required to add the potential for 300± hotel rooms within the project, and contains no restrictions on development of housing.

Phasing for the Tuscan Hills Specific Plan project will be clearly established with the review of each tentative tract map for the project. The applicant has indicated that “establishing phasing at the Project’s Specific Plan stage for such a large project is virtually impossible considering the ever-changing market demands.”
Single-family and multifamily uses will require a Development Permit subject to approval by either Director (administrative) or by the Planning Commission, with the decision on the final authority to be determined by the Community Development Director. b. Housing Capacity
Table C-2 describes the housing types by Planning Area, planning area size, and housing capacity.

Housing capacity is calculated at 80% of the maximum density. For example, the Low Residential designation is calculated at 4.8 du/ac instead of the up to 6 du/ac.

The housing capacity of the very low and low residential designations is 340 housing units. The 340 housing units accommodate a portion of the 6th Cycle RHNA above moderate income housing need. Given the production and sales history at the Skyborne site, it is expected that all of these units will be developed during the planning period, representing 16% of the City’s above moderate income RHNA.

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Table C-2
Tuscan Hills Specific Plan
Description of Land Use by Planning Area and Housing Capacity Land Use
Designation Housing Type PlanningArea
Planning
Area Size
Housing
Capacity
Very Low
Residential1
DU/5 ac (VLR)
This land use provides an
intermediate density between
more typical residential densities
and open space lands. It provides
lots sufficient in size for rural and
estate development.

Lot-10 47.95 ac 10
Low Residential
Up to 6 du/ac
(LR)
The intent of this designationis to
encourage development
of single-family detached
residential, product in a planned
environment.
lot-3 36.85 ac 176
lot-4 23.02 ac 110
lot-5 9.17 ac 44
Together the Skyborne and Tuscan Hills Specific Plans accommodate 1,740 to 1,940 above moderate income housing units, which represents 84 to 93 percent of the RHNA allocation of 2,081 above moderate income housing units.

In addition, several other projects and infill lot construction are currently under way:
• Agua Dulce is a 126 lot subdivision located south of Two Bunch Palms Trail and west of Palm Drive. 53 units were built in the previous cycle. 73 units are currently under construction, which will complete the tract.
• Tract Map 32360 and 33643 consist of 41 lots located south of Pierson Boulevards, between Avenida Loreto and Cholla Drive, 10 of which have been completed, and 31 of which will be completed in the current planning period. • Watermarke/Tract 31235 consists of 11 units under construction on Avenida Dorado. • The City has seen a significant increase in infill lot single family home building permits throughout the City. In 2019, only 4 permits were issued. In 2021, more than 50 permits were issued. Given that the City has hundreds of undeveloped Low Density single family lots, and the market for housing is strong, it can be expected that the City will see between 25 and 50 infill single family homes annually throughout the planning period, resulting in between 200 and 400 new homes for above moderate income households.

With the inclusion of existing projects described above, the City has realistic capacity for between 2,035 and 2,340 new above moderate income units during the planning period, which will be sufficient to meet the City’s RHNA allocation.

Item Number: 7.

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Exhibit C-2
Tuscan Hills Specific Plan
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D. SITES TO ACCOMMODATE THE MODERATE INCOME RHNA OF 688 HOUSING UNITS

1. Aventura Palms
Aventura Palms is an entitled 76-unit single-family residential development under the Rancho Descanso Specific Plan (October 14, 2021). The 76 housing units are identified as accommodating the moderate income housing need.

2. Marbella Villas
Marbella Villas is an entitled condominium development consisting of 402 housing units on a vacant 25 acre site (16 dus/ac). The property is identified as Assessor Parcel Nos. 656-030-005, -006, -007, and -008 and is located on the west side of Palm Drive north of 15th Avenue.

The applicant plans to construct the project in eight phases, beginning in late 2022, with an estimated completion in late Fall of 2025.

3. Tuscan Hills Specific Plan
Table C-3 describes the housing types by Planning Area, planning area size, and housing capacity. Exhibit C-3 shows the locations of each Planning Area.

The Tuscan Hills medium residential permits up to 15 du/ac. Housing capacity is calculated at 80% of the maximum density – that is, at 12 du/ac instead of 15 du/ac.

The total housing capacity of the medium density designation is 995 housing units.

Table C-3
Tuscan Hills Specific Plan
Description of Land Use by Planning Area and Housing Capacity Land Use
Designation Housing Type PlanningArea
Planning
Area Size
Housing
Capacity
Medium
ResidentialUp to
15 du/ac (MR)
Allows a range of residential
products including single- family
attached or detached condominiums,
townhomes, zero-lot-line
configurations, and cluster
developments. In addition, this
category allows senior housing agerestricted multi-family communities designed to accommodate the
special needs of seniors.
lot-1, A 52.56 ac 626
lot-2 17.82 ac 213
Lot-6 13.05 ac 156
Aventura Palms, Marbella Villas, and Tuscan Hills combine to accommodate 1,473 moderate income housing units, which exceeds the RHNA allocation of 688 housing units. It is also possible that these sites will accommodate both moderate and above moderate income households, which will provide the City flexibility in accommodating its RHNA for both income categories.

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E. SITES TO ACCOMMODATE THE LOWER INCOME RHNA OF 1,104 HOUSING UNITS Tables C-4 and C-5 list the sites that accommodate the lower income RHNA of 1,104 housing units. All None of the sites listed in Tables C-4 and C-5 have been identified used to accommodate the RHNA in the previous two housing element cyclesplanning periods. However, tThese sites are zoned to allow multi-family housing by right, at a density of at least 20 units per acre, and at least 16 units per site, as required by law.

Table C-4 lists nine R-H zoned sites, a residential zone that permits new housing at densities in the range of 20 to 30 dwelling units per acre. Therefore, the housing capacity of the sites ranges from a low of 708 to a high of 1,061 housing units. In order to analyze the realistic capacity of these sites, the City considered similar affordable housing projects in the Coachella Valley, since no recent projects in the City provide information on likely housing density for affordable housing units for lower income households. The comparison with other jurisdictions is appropriate because the Coachella Valley is a series of small cities which border each other and which operate as a region. Desert Hot Springs is the western-most city, and is bordered by Palm Springs. All of the cities have similar residential densities and development patterns. Desert Hot Springs has more affordable land values than some of the other cities to the east, making it more attractive to affordable housing developers. As regards density, Desert Hot Springs’ R-H density is consistent with both surrounding cities’ high density residential densities, and the densities being developed in mixed use zones in other cities. The following projects are entitled and either completed, under construction, or pending construction.

Palm Springs
• Monarch Apartments, will provide 60 units affordable to very low and low income households on 3.6 acres, at a density of 17 units per acre. The project is fully funded and broke ground in October of 2021.
• Vista Sunrise II will provide 60 units of special needs housing for extremely low, very low and low income households on 1.5 acres, at a density of 40 units per acre. This project is being developed on a mixed use site which also includes medical clinics and offices operated by DAP Health. The project is fully funded and currently under construction.

Palm Desert
• Carlos Ortega Villas, consists of 72 units on 3.48 acres affordable to very low and low income households, at a density of 21 units per acre. The project was fully funded, built, and is currently operating.
• Vitalia, 270 units affordable to very low and low income households on 12 acres approved in 2021, at a density of 23 units per acre. The project is currently finalizing funding, and is expected to be under construction in 2023.
• Millennium SARDA site, 240 units affordable to very low and low income households on 10 acres, under contract in 2021, at a density of 24 units per acre. The project is approved and preparing construction drawings.

La Quinta
• Coral Mountain Apartments, constructed in 2018, provides 176 units on 11 acres for very low- and low-income households, at a density of 16 units per acre.

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Indio
• Arroyo Crossing 1 is currently under construction, and provides 184 units on 6.4 acres affordable to very low and low income households, at a density of 29 units per acre. The project is within one of Indio’s mixed use zones, and includes a retail commercial building to serve the needs of residents of both Arroyo Crossing projects. The project is currently under construction, and occupancy is expected in late 2022 or early 2023. • Arroyo Crossing 2, will provide 216 units affordable to very low and low income households on 7.3 acres, at a density of 30 units per acre. The project was approved in 2021 and is currently finalizing funding. Construction is expected to follow completion of Arroyo Crossing 1, in 2024.

Coachella
• Pueblo Viejo Villas is a 105 unit project for lower income and disabled residents in the City’s mixed use core, which is being redeveloped for a mix of residential, civic and commercial projects surrounding City Hall. The project completed construction in 2022.

These projects represent an average of 25 units per acre, and based on the regional nature of housing in the Coachella Valley, are reflective of the density that the City can expect for future housing projects. On this basis, Table C-4 has been calculated at a density of 25 units per acre.

For purposes of the No Net Loss Law and Program 1.3, the housing capacity of the nine sites is 1,105 housing units. This will accommodate all of the City’s lower income RHNA on sites zoned solely for residential development. As described below, however, the City also expects to see development of affordable housing on lands designated M-UC, which would add to the potential inventory of lower income sites in the City.

Table C-4
City of Desert Hot Springs
Vacant Sites Accommodating the Lower Income Housing Need: 2021-2029 General Plan and Zoning Designation of R-H
Minimum Density 20 Dwelling Units Per Acre
Maximum Density 30 Dwelling Units Per Acre
Site Number APN
Size
(Acres)
Housing Capacity
(@25 du/ac)
1 656050006 5.00 125
2 657230028 3.65 91
3 657220013 4.98 125
4 657220016 4.97 124
5 657290004 4.70 118
6 657290005 4.78 120
7 657290006 4.85 121
8 657290008 2.44 61
9 657280003 9 of 26 220
Total 35.37 1,105
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Exhibit C-3
Locations of Lower Income R-H Zoned Sites
In addition to the capacity provided in the R-H Zone, Table C-5 lists five M-UC zoned sites, a mixed-use zone that allows 100% residential at densities in the range of 20 to 30 dwelling units per acre. Although the City does not need mixed use sites to meet its lower income RHNA, as demonstrated above, development of residential units in the M-UC zone is also expected during the planning period. The M-UC Zone states that the City should encourage 100% residential projects to be built at the maximum density of 30 dus/ac. Assuming 100% residential development, the five sites can accommodate from 412 to 616 housing units.

It is possible that during the eight-year planning period that: 1) one or more sites could be developed as mixed-use, meaning less than 100% residential and 2) the sites could be developed at 100% residential and at a density greater than 20 dwelling units per acre.

The M-UC designation is new to the City, having been established in the recently approved General Plan. There is no development history available yet to demonstrate the likelihood that Item Number: 7.

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these sites will develop for affordable housing. As described above, in the listing of affordable housing projects in other jurisdictions, mixed use development is beginning to be built in the Coachella Valley. In addition, Site #9, shown in Exhibit C-3, is a larger holding of 26 acres, which contains 9 acres of High Density land, and 17 acres of M-UC land. The City has been approached by the landowner, who wishes to develop at least 220 units of lower income housing on the RH portion, and may also provide additional lower income units on the M-UC portion of the parcel.

The applications have not been submitted, but the City is confident in the landowner’s ability to perform. Therefore, M-UC sites shown in Table C-5 may develop as additional lower income housing, but are not required to assure that the City meets its RHNA allocation. To track how individual projects impact housing capacity, in June 2021, the City prepared a No Net Loss Monitoring Procedure modeled after HCD’s No Net Loss Capacity Calculation Tool.

In the event a project were to be approved at a capacity less than shown in Table C-5, the City will implement Program 1.3 No Net Loss Program.

Table C-5
City of Desert Hot Springs
Vacant Sites Accommodating the Lower Income Housing Need: 2021-2029 General Plan and Zoning Designation of MU-C
Minimum Density 20 Dwelling Units Per Acre
Maximum Density 30 Dwelling Units Per Acre
Site Number APN
Size
(Acres)
Housing Capacity
(@20 du/ac)
1 656050012 4.69 94
2 656050013 1.85 37
3 657230028 4.53 91
4 657280015 4.48 90
5 657280016 4.99 100
Total 20.54 412
In order to facilitate development of housing units to meet the RHNA, including units in both the R-H and MU-C zones, Program 2.3 is provided in Section II. It includes incentives, such as the waiver of development fees, deviations in development standards and other incentives to reduce costs and encourage lower income housing production. In addition, this program includes incentives for Site 9, to encourage its subdivision and development for lower income units.

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Exhibit C-4
Locations of Lower Income M-UC Zoned Sites
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F. SITES TO AFFIRMATIVELY FURTHER FAIR HOUSING
Government Code Section 65583.2(a) states that the inventory of land “shall be used to identify sites throughout the community” consistent with Section 65583(c)(9). The latter Section describes the duty to affirmatively further fair housing which includes an assessment of fair housing involving integration/segregation, racially/ethnically concentrated areas of poverty; access to opportunity; and disproportionate housing needs.

Section F evaluates how the identified sites affirmatively further fair housing. In addition, this section describes how the sites are located geographically in support of the City’s land use framework.

1. Land Use Framework and Geographical Distribution of Housing Sites The identified housing sites are located within the context of the adopted General Plan Land Use Framework. Exhibit C-5 shows the Land Use Framework which includes the Pierson Boulevard Corridor and the Palm Drive Corridor. The Skyborne and Tuscan Hills Specific Plans are located at the western and eastern ends, respectively, of the Pierson Boulevard Corridor.

The lower income housing sites are located along the Palm Drive Corridor. The General Plan Land Use Policy 2.7 states that the “Higher Residential Density Corridor” allows higher density residential and mixed uses along Palm Drive in closer proximity to infrastructure and transit services.

The Palm Drive Corridor Master Plan is the City’s conceptual plan of beautification and circulation improvements to the Palm Drive Corridor between Mission Lake Boulevard on the north and I-10 on the south. The Palm Drive Corridor is the primary gateway entrance to the City’s retail and spa centers. Under the Master Plan, the City intends to provide an array of beautification and circulation improvements to Palm Drive.

The lower income housing sites along Palm Drive are located in close proximity to the job opportunities that will be generated by the Desert Land Ventures Specific Plan. The Specific Plan Area serves as a gateway into Desert Hot Springs due to its high visibility and convenient access from I-10, and also due to its proximity to the Palm Drive Corridor and I-10 on-/off–ramp at Palm Drive. The Specific Plan ultimately could support just over 1.5 million square feet of industrial uses, just under 360,000 square feet of commercial uses, and 150 hotel rooms. The sites inventory will help improve job-housing balance in the City and increase diverse housing opportunities near jobs, services and amenities to meet the various needs of different income level households.

Item Number: 7.

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Exhibit C-5
Land Use Framework
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2. Integration/Segregation
a. Dissimilarity Index
The Dissimilarity Indices for the entire City of Desert Hot Springs shows that all racial/ethnic pairings are at a low level of segregation. A low segregation level is associated with a score of less than 40. Refer to Table C-6 below.

Table C-6
City of Desert Hot Springs
Index of Dissimilarity: 2010
Population Groups Score
White-Black/Black-White 21.1
White-Hispanic/Hispanic-White 26.3
White-Asian/Asian-White 11.4
Black-Hispanic/Hispanic-Black 11.6
Black-Asian/Asian-Black 10.4
Hispanic-Asian/Asian-Hispanic 17.0
Source: Brown University, Diversity and
Disparities, Residential Segregation, Index of
Dissimilarity, City of Desert Hot Springs
Because the racial/ethnic composition of the City in the 2015-2019 period is similar to that of 2010, the Dissimilarity Index should continue to show a low segregation level during the 5-year period. Refer to Table C-7. As discussed in Appendix B Section F.2, the City’s ethnic/racial composition does not deviate significantly from the County, and may have lower segregation levels compared to the County based on the Dissimilarity Index. The City’s sites inventory is not expected to negatively impact its Dissimilarity Index because sites are located throughout the community.

Table C-7
City of Desert Hot Springs
Population by Race and Ethnicity: 2010-2019
Race/Ethnicity 2010 2015-2019
Non-Hispanic White 34.4% 30.4%
Non-Hispanic Black 7.5% 9.2%
Hispanic 52.7% 54.5%
Asian 2.3% 3.0%
Other 3.1% 2.9%
Total 100.0% 100.0%
Source: U.S. Census 2010 and American Community
5-Year Estimates
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b. Divergence Index
Another way to measure integration/segregation is UC Berkeley’s Divergence Index. The lowest possible value of the Divergence Index is "0" when the demographics of a geography does not differ, or diverge, from that of the larger geography, suggesting no segregation, whereas higher values suggest higher divergence, and hence higher segregation.

The UC Berkeley interactive mapping tool at the census tract level shows that Desert Hot Springs has a low to medium segregation level in 2020, which primarily occurs between the two largest racial groups in the City in 2020: Hispanic (61%) and White (28%). According to the AFFH Data Viewer, the majority of the above moderate and lower income level RHNA units occur in Hispanic Majority Tracts with a dominance value (3.20). Three lower income and two moderate income RHNA sites occur in Hispanic Majority Tracts with a predominant dominance value (30.65). The remaining above moderate and moderate RHNA units occur in White Majority Tracts with a sizeable dominance value (16.04). In total, there are 1,105 low-income, 478 moderate-income, and 1,400-1,600 above moderate-income units located within Hispanic Majority tracts. The sites inventory will provide diverse housing opportunities in tracts with Hispanic majority populations and help foster integrated living patterns and an incorporated and diverse community. c. Diversity Index
As discussed in detail in Section F.1 in Appendix B, the City’s diversity index pattern was similar between 2010 and 2018. Census tract 445.17, which overlaps with the Mission Lakes Country Club, has had the lowest score in the City. The highest diversity index scores are found in the central City along Palm Drive. Generally, the City has become more diverse from 2010 to 2018 as diversity index scores increased in many areas and areas with higher scores expanded.

The developed portion of CT 445.17 is mostly situated in unincorporated territory. The development is known as the Mountain View Country Estates Specific Plan or the Mission Lakes Country Club. Most of the land area in this Tract within the City is zoned Open Space – Conservation, with the remaining portion zoned as residential uses that allow up to 20 units per acre or Mixed-Use Neighborhood that allows 15 units per acre. Therefore, CT 445.17 has minimal potential for affordable housing development.

All sites designated for RHNA units in the inventory are located in areas with diversity index scores between 70-85, the most common score range in the City. The distribution of sites for lower income households provides up to 1,105 units along the Palm Drive corridor, which is the City’s commercial core for jobs and services, and which has the most access to transit. The different income level RHNA sites are neither located in the lowest diversity nor the highest diversity areas, and are not expected to exacerbate any segregation patterns because they will continue to expand housing opportunity for all income levels in already diverse areas. d. Isolation Index
As discussed in Section F.3 in Appendix B, the City’s isolation indices show that the average Hispanic lives in an area where over 56% of the residents are fellow Hispanic and that they are moderately segregated. However, Hispanics represented 55% of Desert Hot Spring’s total population in 2019. Because the isolation index value is similar to the Hispanic percentage in the total population, Hispanic residents are not considered to live in a heavily segregated neighborhood. The highest percentages (>81%) of non-White populations are seen in tracts south Item Number: 7.

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of Pierson Boulevard and along Palm Drive. The majority of the above moderate and lower income level RHNA units occur in areas with 61.12% of total non-White population. The remaining above moderate and all moderate RHNA units occur in areas with 52.31% of total non-White population.

As discussed above, there are 1,105 low-income, 478 moderate-income, and 1,400-1,600 above moderate-income units located within majority non-White tracts Therefore, the sites inventory will not exacerbate any segregation patterns but rather will provide diverse housing opportunities in areas with higher proportions of non-White populations and promote integrated and incorporated living patterns in the community.
e. TCAC/HCD Opportunity Mapping
Of the three integration/segregation methodologies that were used to prepare the Assessment of Fair Housing (Appendix B), only the TCAC/HCD methodology has identified census tracts that it deems highly segregated.

TCAC/HCD have designated four census tracts, according to its methodology, as High Segregation & Poverty:
§ CT 445.07
§ CT 445.09
§ CT 445.10
§ CT 445.15
None of the above moderate and lower income housing sites are located in these census tracts/block groups. The Aventura Palms and Marbella Villas designated for moderate income units are located in CT 445.15, BG 1.

With regard to socio-economic patterns, the household incomes in CT 445.15, BG 1 increase as the moderate income housing of Aventura Palms and Marbella Villas are constructed and occupied. The census tract block group has 1,539 housing units of which 1,305 are occupied.

Mobile homes comprise 657 of the 1,539 housing units. Aventura Palms and Marbella Villas will add 478 moderate income housing units to CT 445.15 BG 1. The addition of moderate income units in this High Segregation & Poverty area will help foster an economically diverse community and integrated living patterns.

3. Racially/Ethically Concentrated Areas of Poverty
Both the HUD map and HCD’s AFFH Data Viewer show that two census tracts in Desert Hot Springs are designated as R/ECAPs (CT 445.07 and CT 445.09). None of the inventory sites are located in CT 445.07 and CT 445.09, but Marbella Villas (402 moderate income RHNA site) and sites in the Tuscan Hills Specific Plan (995 moderate and 340 above moderate income RHNA sites) are located near these tracts. The location of lower income RHNA units well outside of potential R/ECAPs and moderate and above moderate income units near potential R/ECAPs will not exacerbate any existing concentration or segregation, but rather draw opportunities and improvements near potential R/ECAPs and encourage an economically diverse and integrated community.

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4. Areas of Affluence
HCD defines “areas of affluence” as census tracts/neighborhoods in which 80% of the population is White, not Hispanic and the median household income is $125,000 or more. Desert Hot Springs does not have an area of affluence. In 2015-2019, there are 18 census tracts/neighborhoods located in the Region (Riverside County) in which 80% or more of the population is White, not Hispanic. However, only one census tract in the Region had a median household income of $125,000 or more: CT 456.08 which is located in the City of La Quinta.

Therefore, none of the sites included in the land inventory are located in an area of affluence.

5. Access to Opportunity
a. Opportunity Mapping Tool
The TCAC/HCD Opportunity Mapping Tool is based on 12 indicators of access to opportunity.

Neighborhoods – meaning census tracts – located within the Inland Empire Region are designated into one of the following six categories of access to opportunity. § Highest
§ High
§ Moderate
§ Moderate (Rapidly Changing)
§ Low
§ High Segregation & Poverty
b. Opportunity Categories of Housing Sites
The “above moderate income” housing sites are located in Low and Moderate Resource census tracts:
§ Skyborne (1,400-1,600 units) CT 445.22 Low Resource
§ Tuscan Hills (340 units) CT 445.18 Moderate Resource
The “moderate income” housing sites are located Moderate and High Segregation and Poverty census tracts:
§ Tuscan Hills (995 units) CT 445.18 Moderate Resource
§ Aventura Palms (76 units) CT 445.15 High Segregation & Poverty § Marbella Villas (402 units) CT 445.15 High Segregation & Poverty Census tracts and rural block groups that have both a poverty rate of over 30% and that are designated as being racially segregated are filtered into the “High Segregation & Poverty” category. By definition, they have fewer resources and opportunities.

The “lower income” housing sites are located in Low and Moderate Resource census tracts as listed below:
§ R-H Site 1 (125 units) CT 445.16 Moderate Resource
§ R-H Site 2 (91 units) CT 445.22 Low Resource
§ R-H Site 3 (125 units) CT 445.22 Low Resource
Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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§ R-H Site 4 (124 units) CT 445.22 Low Resource
§ R-H Site 5 (118 units) CT 445.22 Low Resource
§ R-H Site 6 (120 units) CT 445.22 Low Resource
§ R-H Site 7 (121 units) CT 445.22 Low Resource
§ R-H Site 8 (61 units) CT 445.22 Low Resource
§ R-H Site 9 (220 units) CT 445.22 Low Resource
§ MU-C Site 1 (94 units) CT 445.16 Moderate Resource
§ MU-C Site 2 (37 units) CT 445.16 Moderate Resource
§ MU-C Site 3 (91 units) CT 445.22 Low Resource
§ MU-C Site 4 (90 units) CT 445.22 Low Resource
§ MU-C Site 5 (100 units) CT 445.22 Low Resource
The first R-H zoned site listed above is located in census tract 445.16. The other seven sites are located in census tract 445.22.

The first two MU-C zoned sites listed above are located in census tract 445.16. The other three sites are located in census tract 445.22.

In 2020 census tract 445.16 was classified as “high” opportunity. In 2021 the same census tract is designated as “moderate” opportunity.

In 2020 census tract 445.22 was classified as “moderate’ opportunity. In 2021 the same census tract is designated as “low” opportunity.

According to the 2021 draft opportunity mapping methodology:

Tracts and rural block groups may shift opportunity categories during annual map updates for multiple reasons, including changes in their underlying data, changes in other parts of the region or rural county against which they are compared (i.e., even if conditions in a particular tract have not changed, if other tracts have experienced significant changes that may shift a given tract’s relative scoring), and changes in the mapping methodology.

The specifics of why the two census tract had shifts in their opportunity categories are unknown to the City. Internal changes within each tract are unlikely because there has not been much housing development in Desert Hot Springs during the 2014-2018 period. The ACS 2014-2018 data was used to calculate many of the numbers in the opportunity tool, which was released as a draft in December 2020. The 2015-2019 ACS data was released in the first week of December 2020.

The TCAC regulations allow a project applicant to use the resource category in effect at the time of the application for the next seven years. Therefore, if an affordable housing developer had submitted an LIHTC application in 2019 for a project located in census tract 445.16, the “high” resource would continue to be in effect until 2026.

The TCAC/HCD opportunity mapping designates census tract 445.17 as the one “high” opportunity census tract located in Desert Hot Springs. However, the developed portion of the census tract is primarily situated in unincorporated territory. The development is known as the Mountain View Country Estates Specific Plan or the Mission Lakes Country Club. Most of the land area within the City is zoned Open Space – Conservation. Refer to Exhibit C-6.

Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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The Upper Mission Creek/Big Morongo Canyon Conservation area is located primarily north of the City. A “special provision area” spans the middle of the City and is considered part of the Mission Creek area. This is generally the Morongo Wash that flows from the Little San Bernardino Mountains located to the north.

The RHNA sites for all income levels are dispersed in Low and Moderate Resources areas, and there is no concentration of affordable housing sites in Low Resource or High Segregation & Poverty areas. Overall, the sites inventory will encourage integrated living patterns for different income level households and have positive impacts on any segregation patterns or potential in the community.

Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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Exhibit C-6
Census Tract 445.17
Item Number: 7.

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c. TCAC Reliance on Census Tract Opportunity Categories In making decisions on awarding low income housing tax credits to specific projects, TCAC does not use the opportunity mapping as an absolute criterion. The majority of developed and approved LIHTC projects are not located in the “high” and “highest” resource neighborhoods. The Termer Center found that 21% of the new construction 9% LIHTC projects built between 2008 and 2019 was located in the “highest” and “high” resource census tracts. However, 27.9% of the projects were located in high segregation and poverty census tracts. § Highest Resource 10.1%
§ High Resource 11.1%
§ Moderate Resource 19.4%
§ Low Resource 31.2%
§ High Segregation and Poverty 27.9%
More recently, 63 applications were submitted to TCAC in the 2020 Round 1. Five of the 63 applications were located in either a Highest or High resource census tract. Three of the five projects were awarded funding and they are located in Reedley, Santa Monica, and Alpine.

Consequently, based on past history and practice, it is possible that a tax credit application for a project located in census tract 445.15 could be awarded low income housing tax credits by TCAC.

6. Disproportionate Housing Needs
The impact on disproportionate housing needs of affordable housing developments at the lower income housing sites cannot be foreseen because of two reasons: 1) the types of affordable housing that will be developed are unknown; and 2) the race and ethnicity of future occupants is unknown.

The types of projects awarded Low Income Housing Tax Credits provide insights on the housing types that could be built on the lower income housing sites. In the past five years, tax credits have helped to finance the following housing types:
§ Large Family 47.8%
§ Special Needs 27.4%
§ Seniors 15.5%
§ At-Risk 8.5%
§ SRO 0.8%
It can be assumed that the affordable housing developments will reduce the cost burdens of all fair housing classes that occupy the housing.

G. AVAILABILITY OF INFRASTRUCTURE

1. Water and Sewer
Realistic site development potential indicated in the sites inventory for the three income groups is consistent with the development capacity reported in the General Plan Mobility and Infrastructure Element. Full urban-level services are available within urbanized areas of the City. Specifically, water and sewer service are available or are programmed to be made available for all the sites included in the inventory, indicating the capacity to accommodate the City’s total share of the RHNA.

Item Number: 7.

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The Mission Springs Water District (MSWD) is the primary water service provider in Desert Hot Springs. The District’s service area encompasses 135 square miles including the City of Desert Hot Springs, 10 smaller communities in Riverside County, and communities in the City of Palm Springs.

The MSWD 2015 Urban Water Management Plan (UWMP) projects a population growth of 13,000 persons between 2020 and 2030, of which 94% would occur in the City of Desert Hot Springs.

The MSWD Water Master Plan identifies a variety of improvements to be implemented over the next 15 years. This includes improvements to over 169,000 linear feet of distribution pipelines, seven booster stations, storage tanks capacity of 34.5 million gallons, and 29,000 gallons per minute of supply.

The MSWD 2015 UWMP concludes that adequate water supply will be available to meet demand through 2030 under normal, single dry, and multiple dry rainfall conditions. Demand generated by housing built to accommodate the lower income RHNA is included in the estimated demand increase between 2020 and 2030.

The MSWD and Coachella Valley Water District (CVWD) also provide sewer service in the City.

Desert Hot Springs properties historically have been served by individual septic systems. Recent figures estimated 55% of households are currently served by septic systems.

Two assessment districts (AD11 and AD12) fund the construction of wastewater collection and treatment facilities to abate the threat septic systems pose to the area’s groundwater and to support suburban type development.

MSWD has an ongoing program to connect existing residences currently on septic systems to sewer collectors that have been constructed or are in the process of being constructed. Since 2005, 3,520 parcels in the service area have been converted from septic to sewer service for a total of 7,700 parcels.

The Horton Wastewater Treatment Plant (Horton WWTP), located on Verbena Drive about onehalf mile south of Two Bunch Palms Trail, has a capacity of 2.3 million gallons per day. The Desert Crest Wastewater Treatment Plant, located about one-half mile southeast of the intersection of Dillon Road and Long Canyon Road, has a capacity of 0.18 million gallons/day and serves a country club development and mobile home park.

The Horton Wastewater Treatment Plant, located on Verbena Drive south of Two Bunch Palms Trail, is the primary wastewater treatment facility for MSWD. To accommodate the type and scale of development planned in the City, substantial expansion of wastewater treatment facilities will be required. Continued efforts to expand sewer facilities will reduce and eliminate the adverse impact of septic systems.

Over the long-term, sewer and treatment expansion is guided by the Wastewater System Comprehensive Master Plan. To provide for the type and scale of development planned in the City, substantial expansion of wastewater facilities will be necessary.

General Plan infrastructure goals and policies emphasize consultation and coordination with service providers to ensure that regional collection and treatment facilities have sufficient capacity to meet future wastewater treatment needs. The infrastructure goals and policies also emphasize a continuation of capital improvements planning to fund and prioritize infrastructure projects.

Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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2. Access to Distribution Facilities
a. Skyborne Specific Plan

1. Water
The Skyborne project is within the service area of the Mission Springs Water District (MSWD).

The owner has entered into a Second Amendment to the “Public Water System Improvement and Water Service Connection Fee Credit/Reimbursement Agreement” with MSWD. The site is currently served with the recent construction of two well sites (34 and 35), a reservoir site, and several miles of transmission and distribution lines. Future construction of additional wells and reservoirs will be built to the satisfaction of MSWD to assure adequate water supply. The owner is fully in compliance with its agreement with MSWD.

2. Sewer Plan
Sanitary sewer facilities are provided by Mission Springs Water District (MSWD) Several miles of off-site and on-site sewer main construction has assured adequate infrastructure exists for the completion of the project. The development will continue to extend this backbone system to serve individual development phases. Wastewater is treated at the Horton Wastewater Treatment Plant located in Desert Hot Springs.

3. Electrical
Southern California Edison (SCE) provides electric facilities to the City. The Garnett Substation located north of Interstate 10 and east of Indian Canyon Drive is the facility through which the project will receive its electrical power. This substation distributes 115KV, 33KV and 12KV lines throughout the general area. A 12 KV O/H(Overhead) distribution line is located on the south side of Pierson Boulevard. There is an 115KV transmission line along the east side of Diablo Road which goes through the westerly portion of the project within a 40’ easement. There is also a 33KV O/H line at Karen Avenue that runs diagonal across the site to Mission Lakes Boulevard and follows the Mollies Road alignment.

SCE has developed plans for service to Skyborne and construction has occurred for the existing developed portions of the Specific Plan area. The development of the remaining Villages will continue with the system in place to the satisfaction of SCE.

4. Other Utilities
The Southern California Gas Company provides natural gas services to the site. An 8” medium pressure main is located approximately ½ mile east of the site at Mission Lakes Boulevard and Western Avenue. A 6” high pressure gas main is also located ½ mile east of the site on Scenic Drive and Western Avenue. There is also a 16” high pressure Questar natural gas line that runs west of and parallel to Worsley Road approximately 55’ west of the existing western edge of the pavement. The Gas Company currently serves the site and plans are prepared for the continuation of construction.

Verizon provides telephone service to the area and has developed plans for the existing homes sites within Skyborne. There is a direct buried underground main located on the south side of Pierson Boulevard. An underground main is also located on the southwest side of Mollies Road and on the west side of Worsley Road. Their infrastructure will continue to be developed with new construction.

Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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Time Warner Cable provides cable television and internet service to the City and Specific Plan area. There are cable lines on the south side of Pierson Boulevard.

Desert Valley Disposal provides waste disposal service to the project site. Plans for incorporating construction waste and recycling facilities will be considered with the development. b. Tuscan Hills Specific Plan

1. Water
Development will be served by the Mission Springs Water District (MSWD). Precise alignments and sizing of water facilities shall be determined prior to final engineering and construction in accordance with the Mission Springs Water District and City standards.

The pressure will be adequate to provide service to the development and will be required to have minimum flow rates to meet Riverside County Fire Department requirements. The removal of the golf course from the original plan will greatly reduce the water demand for the Specific Plan area and the installation of drought-tolerant landscaping will further produce a more desert friendly development.

2. Sewer
The site will be serviced by the MSWD, Horton Treatment Plant located of Verbena Road, south of Two Bunch Palms Trail. The conceptual plans show 8-inch sewer throughout the development which flow southwest and will tie into the existing (MSWD) 8-inch line running under Pierson Boulevard. A Condition of Approval of the Specific Plan is that prior to recordation of the Final Tract Map the developer will work the MSWD and the City Engineer on final plans for the future sewer system.

3. Other Utilities
Public utilities including electricity, gas, telephone, Cable TV, and solid waste are available and need to be extended onto the property. Within the Tuscan Hills development, specific utilities can be underground or as designated by the providing utility company.

Desert Valley Disposal Inc. will provide solid waste disposal for the Tuscan Hills Specific Plan area. As identified in the General Plan, the City shall continue its efforts to comply with State mandates to reduce the amount of solid waste disposal in landfills. c. Palm Drive Corridor
Water and sewer connection locations are available to Marbella Villas, an entitled 402-unit development located at Palm Drive and 15th Street.

According to the MSWD, while the 16” water main along Palm Drive has adequate capacity, the 12” sanitary and subsequent downstream sewers may require upgrades depending on the size of the housing development
Sites south of Dillon Road will have distribution facilities midway through the 8-year planning period as MSWD does not have facilities along Palm Drive south of Dillon Road.

The MSWD is in the process of updating the Water and Sewer Master Plans.

Item Number: 7.

APPENDIX C SITES INVENTORY AND ANALYSIS
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H. DRY UTILITIES
Electricity services are provided by Southern California Edison (SCE). The company has two transmission substations within Desert Hot Springs and it’s Sphere-of-Influence. Electric power is primarily generated outside the Coachella Valley; however, SCE purchases wind-generated power from local producers. The City is served by the Devers Substation, north of Dillon Road in the southwestern portion of the City’s Sphere, and the Coffee Substation, located on Camino Aventura west of Palm Drive, just south of city limits.

Additional dry utilities include:
§ Natural gas (Southern California Gas Company)
§ Telecommunications facilities (Frontier Communications) § Cable service (Charter Communications)
§ Solid waste (Desert Valley Disposal)
All sites in the land use inventory have access to full dry utilities. The majority of sites are located adjacent to developed areas and/or major roadways.

For capacity in specific plan areas, adopted specific plans address infrastructure provision.

General Plan policies emphasize the provision of adequate funding, service levels, equitable planning, and maintenance of utility services and physical infrastructures.

I. ENVIRONMENTAL CONSTRAINTS
The sites inventory analysis responds to land use designations and densities established in the General Plan Land Use Element. Thus, any large-scale environmental constraints that would lower the potential yield (e.g., habitat conservation, flooding or steep slopes) have already been accounted for in the General Plan Land Use Map and policies and the Program Environmental Impact Report.

Parts of the City lie within the Coachella Valley Multi-Species Habitat Conservation Plan (CVMSHCP), which identifies the most valuable resource protection areas in and around the City and establishes a permanent habitat reserve and perpetual land management program while accommodating adjacent urban development and recreational uses.

To account for any type of conservation activity, any parcel in the sites inventory that is within the CVMSHCP area has a reduced capacity. Any additional constraints that would occur on a more detailed site review basis would be addressed as part of the individual project review process.

The City’s capacity to meet the 2021-2029 RHNA is not constrained by any environmental conditions.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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APPENDIX D GOVERNMENTAL CONSTRAINGS ANALYSIS
A. SCOPE OF THE GOVERNMENTAL CONSTRAINTS ANALYSIS

1. Introduction
Government Code 65583(a)(5) requires -
An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the localityfrom meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). [Emphasis added] Government Code Section 65583(c)(1) identifies the “types of housing” that must be permitted by the City’s Zoning Ordinance:
§ Multifamily rental housing
§ Factory-built housing
§ Mobilehomes
§ Housing for agricultural employees
§ Supportive housing
§ Single-room occupancy units
§ Emergency shelters
§ Transitional housing
Government Code Section 65583(a)(7) requires –
An analysis of any special housing needs, such as those of …persons with disabilities, including a developmental disability ….

In addition to the previously mentioned types of housing, Government Code Sections 65852.2 and 65852.22 provide for the creation of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).

Finally, Government Code Section 65660 et. seq. requires that local jurisdictions allow “low barrier navigation centers” by right in areas zoned for mixed use and in non-residential zones permitting multifamily residential uses, if they meet the requirements specified in Government Code Section 65662.

The Government Code requirements provide an outline for the governmental constraints analysis as follows:
• Zone Districts Permitting a Variety of Housing Types (Part B) • Land Use Controls - Residential Zones and Specific Plans (Part C) Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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• Building Codes and Their Enforcement (Part D)
• On- and Off-Site Improvements (Part E)
• Fees and Other Exactions (Part F)
• City Processing and Permit Procedures (Part G)
• Analysis of Adopted Ordinances that Directly Impact the Cost and Supply of Housing (Part H)
• Description of Efforts to Remove Governmental Constraints that Hinder the City from Meeting its Share of the Regional Housing Need (Part I) • Description of Efforts to Remove Governmental Constraints that Hinder the City from Meeting Special Housing Needs (Part J)

2. Local Early Action Planning (LEAP) Grant Funding to Remove Governmental Constraints
With Local Early Action Planning (LEAP) grant funding, the City will update its municipal code to revise zoning and development standards to accelerate housing production.On October 14, 2021 the City issued an RFP for an update of the Zoning Ordinance. The selection of a consultant is scheduled for December 16, 2021. The selected consultant will ensure that scope of work at a minimum will include the following:
§ Review and identify Goals, Objectives, and Implementation strategies to ensure the two documents, new Zoning Ordinance and General Plan Update, will be consistent and complementary of each other;
§ A thorough review of the existing Zoning Ordinance and eliminate contradictions and provide a reader friendly Zoning Ordinance;
§ In cooperation with City staff, assess the advantages, shortcomings, and gaps to the existing Zoning Ordinance to assist in clarifying needed areas of updating.

A key objective of the update is to contain specific criteria for as many commonly identified land uses as possible to eliminate or minimize the need for discretionary review, thereby reducing the time associated with processing development applications where discretionary approval is needed.

B. ZONE DISTRICTS PERMITTING A VARIETY OF HOUSING TYPES Table D-1 shows that the Zoning Ordinance allows for development of a variety of housing types.

The Zoning Ordinance provides for the following residential and mixed use zones:
§ R-RD, Residential Rural
§ R-L, Residential Low
§ R-M, Residential-Medium
§ R-H, Residential-High
§ MU-N, Mixed-Use Neighborhood
§ MU-C, Mixed-Use Corridor
Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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1. Zone Districts Permitting Residential Uses
The Zoning Ordinance describes the purpose and intent of each zone district as follows:

R-RD (Residential Rural Desert): The district is intended to allow for low-density, rural residential uses at a maximum density of one dwelling unit per five acres in a manner that will eliminate or minimize impacts on the natural landscape and will encourage conservation.

R-L (Residential Low): The district is intended to promote the development of low-density, singlefamily residential uses at a maximum density of six dwelling units per acre. Clustered development can occur and is encouraged where needed to respect on-site natural resource areas.

R-M (Residential Medium): The district is intended to promote the development of detached and attached residential uses at a maximum density of 20 dwelling units per acre. Small-lot subdivisions are permitted.

R-H (Residential High): The district is intended to provide multiple unit residential developments at a minimum density of 20 dwelling units per acre up to a maximum of 30 dwelling units per acre, with a variety of on-site amenities.

MU-N (Mixed-Use Neighborhood): The district is intended to provide local- and neighborhoodsupporting mixed-use activity centers with maximum residential densities of 15 dwelling units per acre and/or nonresidential intensity with a maximum floor area ratio (FAR) of 1.0. Commercial retail uses are the primary uses allowed on the ground floor. Professional office and residential uses are also allowed, either integrated with a commercial use or as separate, free-standing use.

Easy walkable access from residential neighborhoods and pedestrian orientation are key considerations in the location and site design of mixed-use developments in this zone.

MU-C (Mixed-Use Corridor): The district is intended to provide higher-intensity, commercially oriented activity with maximum residential densities of 30 dwelling units per acre and/or maximum nonresidential intensities of 1.50 FAR. This district provides for integrated commercialretail, professional office, residential, and civic uses. Commercial retail uses are the preferred uses allowed on the ground floor. Residential development is allowed, either as part of a mixed- use project or as a freestanding use and are encouraged to be developed at the highest allowable density. Convenient public transportation access, innovative housing options, and pedestrianoriented design are key considerations in the location and site design of mixed-use developments in this zone.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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Table D-1
City of Desert Hot Springs
Permitted Uses in Residential Zones
Standard R-RD R-L R-M R-H
Accessory Dwelling Unit P P P P
Residential Care Facilities P P P P
Emergency Shelter X X C P
Manufactured Housing P P P P
Mobile Home Parks X X C C
Multi-Family Dwellings X X P P
Low Barrier Navigation Center* X X X X
Planned Residential Development X C C X
Single Family Dwellings P P P P
Supportive/ Transitional Housing** P P P P
Single Room Occupancy (SRO) X X X C
Source: City of Desert Hot Springs, Zoning Ordinance 17.08.020, 2020 Notes:

P = Permitted by Right; A = Accessory Use; C = Conditional Use Permit; X = Not Permitted. *Consistent with AB 101 which requires that Low-Barrier Navigation Centers are a use by right inareas zoned for mixed use and nonresidential zones permitting multifamily uses. **Supportive and transitional housing constitute a residential use and are subject only to those restrictions that apply to other residential uses of the same type in the same district.

2. Accessory Dwelling Units/Junior Accessory Dwelling Units The City Council approved an ADU ordinance on September 15, 2020 (Section 17.08.170 of the Zoning Ordinance). The ordinance provides for the ministerial approval of ADU applications within 60 days from the date the City receives a completed application.

On the same day, the City Council also approved a JADU ordinance (Section 17.08.175 of the Zoning Ordinance).

HCD reviewed the ordinances and recommended revisions. The City Council approved the second reading of the Ordinance revisions on October 19, 2021.

3. Residential Care Facilities
California requires that many types of licensed facilities serving six persons or fewer be treated for zoning purposes like single-family homes. Except in extraordinary cases in which even a single-family home requires a conditional use permit, these laws bar conditional use permits for facilities that serve six or fewer persons.

Residential care facilities located in a home are permitted by right in all residential zones: R- RD, Residential Rural Desert; R-L, Residential Low; R-M, Residential Medium; and R-H, Residential High. These facilities are not subject to a CUP if they serve seven or more persons.

4. Emergency Shelters
“Emergency shelter” means housing with minimal supportive services for homeless persons that is limited to occupancy for six months or less by a homeless person. No individual or household Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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may be denied emergency shelter because of an inability to pay, or as may be amended via Health and Safety Code section 50801. Emergency shelters are permitted by right in the R-H Residential-High zone and permitted with a conditional use permit in the R-M-ResidentialMedium zone.

There are at least 95 acres of vacant R-H zoned land. The land is located in the eastern part of the City, in and near the most developed areas of Desert Hot Springs. The vacant parcels are located on or within 1/3 mile of the City’s main streets and highways (Pierson Boulevard and Palm Drive) ensuring access to transit and available services. The availability of land can easily accommodate shelters for the City’s 68 unsheltered homeless persons identified by the City during the 2020 Point-In-Time Homeless Count.

5. Low Barrier Navigation Centers
Government Code Section 65660 states:
(a) “Low Barrier Navigation Center” means a Housing First, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. “Low Barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:
(1) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth.
(2) Pets.
(3) The storage of possessions.
(4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

Government Code Section 65662 states:

A Low Barrier Navigation Center development is a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses, if it meets the requirements of this article. A local jurisdiction shall permit a Low Barrier Navigation Center development provided that it meets the following requirements:
(a) It offers services to connect people to permanent housing through a services plan that identifies services staffing.
(b) It is linked to a coordinated entry system, so that staff in the interim facility or staffs who collocate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.
(c) It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
(d) It has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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Government Code Section 65664 states:

Within 30 days of receipt of an application for a Low Barrier Navigation Center development, the local jurisdiction shall notify a developer whether the developer’s application is complete pursuant to Section 65943. Within 60 days of receipt of a completed application for a Low Barrier Navigation Center development, the local jurisdiction shall act upon its review of the application.

The Zoning Ordinance contains a definition of low barrier navigation center that is consistent with the Government Code requirements.

Low barrier navigation centers are permitted by right in the following zones:
§ MU-N, Mixed-Use Neighborhood
§ MU-C, Mixed-Use Corridor
§ VS-M, Visitor Serving Mixed
§ VS-C, Visitor Serving Commercial

6. Supportive Housing and Transitional Housing
According to HCD:

Supportive housing and transitional housing are considered a residential use of property and are subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (a)(5).)
The Government Code defines these housing types as follows:

Supportive housing is defined as “housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.” (Gov.

Code, § 65582, subd. (g).)
Transitional housing is defined as “buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance.” (Gov. Code, § 65582, subd. (j).)
The Zoning Code specifies that transitional and supportive housing constitute a residential use and are subject only to those restrictions that apply to other residential uses of the same type in the same district. (Zoning Code Section 17.04.050). Transitional and supportive housing are permitted in all residential zones and are subject only to those restrictions that apply to other residential uses of the same type in the same district.

Effective January 1, 2019, AB 2162 (Supportive Housing Streamlining Act) requires supportive housing to be considered a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, if the proposed housing development meets specified criteria. The law prohibits the local government from imposing anyminimum parking requirement for units occupied by supportive housing residents if the development is Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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located within a half-mile of a public transit stop. AB 2162 also require local entities to streamline the approval of housing projects containing a minimum amount of supportive housing by providing a ministerial approval process, removing the requirement for CEQA analysis and removing the requirement for Conditional Use Authorization or other similar discretionary entitlements.

The City permits supportive housing by right in the non-residential zones that allow multi-family housing (MU- C, MU-N and VS-M) consistent with AB 2162.

7. Single Room Occupancy Housing (SROs)
SROs are permitted in the R-H Residential-High and MU-C Mixed Use Corridor zones and are treated as a multi-family use.

8. Agricultural Employee Housing
HCD has stated that California Health and Safety Code Sections 17021.5 and 17021.6 generally require agricultural employee housing to be permitted by-right, without a conditional use permit (CUP), in single-family zones for six or fewer persons and in agricultural zones with no more than 12 units or 36 beds.

The City’s Zoning Ordinance does not have an Agricultural Zone but does conditionally allow “agricultural uses” in the R-RD (Residential Rural Desert), R-L (Residential Low) and R-M (Residential-Medium) zones.

The Zoning Code will be amended to provide for “employee housing” as required by Sections 17021.5 and 17021.6 of the Health and Safety Code. The amendments will include adding a definitionof employee housing. In addition, the Zoning Ordinance will provide for employee housing occupied by six or fewer employees in a single-family structure to be treated the same as any other single-family dwelling in the same zone.

9. Manufactured Housing
State law requires local governments to permit manufactured or mobile homes meeting federal safety and construction standards on a permanent foundation in all single-family residential zones (Government Code Section 65852.3). Consistent with state law, manufactured/factory- built housing is considered to be a single-family detached dwelling unit and is treated as such.

10. Mixed-Use
The City has adopted two new mixed-use designations to encourage infill development at the City’s core that is compact and walkable, offers a mix of uses, and creates a sense of place. The two mixed use zones are described on page D-3.

C. LAND USE CONTROLS

1. General Plan/Zoning Designations
a. Residential Zones
The City adopted a new General Plan on May 26, 2020. The General Plan sets forth policies that guide new development, including new residential development and includes strategies for Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-8
increasing residential development. The Plan includes increased residential densities within key developed districts, including areas adjacent to commercial centers, transit, downtown, and major corridors.

Table D-2 summarizes the General Plan land use designations within the City that allowresidential uses, as well as their permitted densities (without density bonus). The table also identifies the consistent zones that were adopted concurrently.

Table D-2
City of Desert Hot Springs
General Plan Land Use Designations and Zones
Residential Land Use Designation
Maximum Densities
(dwelling units per acre) Zones
Residential Designations
Residential Rural Desert (R-RD) 1 du/5 ac Residential Rural Desert Residential Low (R-L) 6 du/ac Residential Low
Residential Medium (R-M) 20 du/ac Residential Medium
Residential High (R-H) 30 du/ac Residential High
Residential Specific Plan (R-SP) varies Residential Specific Plan Mixed-Use Designations
Mixed-Use Neighborhood (MU-N) 15 du/ac Mixed-Use Neighborhood Mixed-Use Corridor (MU-C) 30 du/ac Mixed-Use Corridor
Source: City of Desert Hot Springs General Plan Land Use Element and Zoning Ordinance, 2020. b. Specific Plans

1. Highland Falls
Highland Falls is a sub-area of the Rancho Royale Specific Plan. The Specific Plan provides for the development of 2,145 single family housing units.

2. Skyborne Specific Plan
Skyborne is a community of traditional single family neighborhoods with proposed and optional active adult residential villages. Standard single family residential lots of varying sizes range from 5,500 to 19,000 square feet. Active adult (55+) neighborhoods include smaller lots ranging in size from 3,400 to 4,500 square feet.

The Specific Plan provides for the development of 1,786 single-family homes.

3. Sunset Ridge Specific Plan
The Specific Plan provides for the development of 499 single family housing units.

4. Two Bunch Palms Specific Plan
The approved Specific Plan includes five residential neighborhoods ranging in size from 33 housing units to 260 housing units. Four neighborhoods provide for single family homes to be developed at densities of 4.0 to 4.6 dwelling units per acre. The Specific Plan provides for the development of 588 single family homes.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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5. Tuscan Hills Specific Plan
The Specific Plan provides for the development of 340 single family housing units at very low and low densities.

2. Development Standards
a. Residential Zones and Mixed-Use Zones
Desert Hot Springs regulates the type, location, density, and scale of residential development to protect and promote the health, safety, and general welfare of residents, as well as implement General Plan policies. The Zoning Ordinance establishes restrictions on setbacks, lot coverage, building height, parking, and minimum unit size. Corresponding zones for the General Plan designations were adopted concurrent with Housing Element.

Table D-3
City of Desert Hot SpringsDevelopment Standards
Standard R-RD R-L R-M R-H MU-N MU-C
Max. Density: Unit/Gross Acre 1/5 ac 6 20 30 15 30
Lot Width (Min. feet) Flag Lot 600 70 (5) 45 45 100 100 Cul-de-sacs 30 25 25 25 --- ---
--- 30 25 25 --- ---
Min. Lot Depth (Min. feet) 1,200 75 90 90 --- ---
Front Setback (Min. feet) 100 20 20 5 10 5
Rear Setback (Min. feet) 100 25 20 15 10-15 10-15
Side Yard Setback (Min. feet) 100 5 10 0 5-10 0-10
Street Side Setback 100 10 10 15 10 5
Bldg. Lot Coverage (Max. %) 5% 60% 65% 70% 60% 70%
Min. Private Open Space (s.f.) --- --- 200 s.f 100 s.f. --- 300 s.f Min. Common Open Space (s.f.) --- --- 25% 20% 30% 30%
Maximum Height in Stories/Feet 2/30 2/30 2-4/30-55 2-4/30-55 3/45 4/60 Source: City of Desert Hot Springs Zoning Ordinance, 2020 1Maximum Lot Coverage for mixed Use zones apply only to stand-alone residential The development of 30 dwelling units per acre in the R-H Zone is realistic given the minimal setback requirements, the maximum lot coverage of 70%, and the maximum building height limit of four stories.
b. Parking Standards for Residential, Mixed Use Development and Special Needs Housing City parking standards for residential developments are tailored to vehicle ownership patterns associated with different residential uses. While these standards may affect development costs, they are considered necessary to assure certain quality standards for multifamily housing. The Zoning Ordinance allows for reduced parking standards for senior citizen apartments/congregate care housing; see Table D-4. The parking requirements for this housing type may be adjusted on an individual project basis, subject to a parking study based on project location and proximity to services for senior citizens including, but not limited to, medical offices, shopping areas, and bus stops.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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As part of a comprehensive development code update, the City will evaluate, and modify if necessary, parking standards to ensure that they do not constrain the development of housing, specifically senior housing and multi-family housing.

Table D-4
City of Desert Hot Springs
Parking Requirements in Residential Zones
Residential Type Off-Street Parking Standards
Planned residential developments, includingsingle-family dwellings and condominiums
2 covered spaces within an
enclosed garage and 1
uncovered off-street guest
parking space for every 5 units
Multi-Family Units:

Studio and 1-bedroom

1.5 covered spaces and 1
uncovered guest space for
every 5 units
2-bedrooms
2 covered spaces and 1
uncovered guest space forevery
5 units
3-bedrooms

2.5 covered spaces and 1
uncovered guest space forevery
5 units
Mixed-Use Developments
The total number of parking spaces shall comply with the requirements of Chapter 17.48. A mixed-use project may be required to submit a parking study for review and approval by the City to allow a different requirement through a conditional use permit.

Special Needs Housing
Senior Housing
1 covered space for each unit,
plus 1 uncovered space for 5
units for guest parking
Senior Congregate Care 0.75 covered space for eachunit
Residential Day Care 2 spaces in addition to those
required for primary residence
Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-11
c. Parking for Emergency Shelters
Government Code 65583(a)(4)(A)(ii) requires that emergency shelters provide “Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.”
The City Attorney has prepared an ordinance amending Land Use Table 17.08.01 to require that emergency shelters shall have sufficient parking to accommodate staff. The second reading of the Ordinance was approved by the City Council on October 19, 2021.

D. BUILDING CODES AND THEIR ENFORCEMENT
The City adopted the 2019 Building Code on November 5, 2019 with only minor amendments that do not adversely impact the cost of housing. The administrative amendments to the Code address time limit of applications, code compliance time limits, fees for work commencing without permits, and re-inspection fees. The Building Code amendments are limited to adoption of several appendices covering agricultural buildings, rodent proofing, patio covers, and grading.

The City's codes are considered to be the minimum necessary to protect the public health, safety and welfare. The codes, which are based on the State housing law and uniform codes, are adopted by many cities throughout Southern California and do not pose a constraint to residential development.

The City’s code compliance program seeks enforcement of all Municipal Code requirements, various State and local laws, and Health and Safety regulations as they relate to conditions or activity within the City. The City’s program is complaint based. The City has implemented a reporting application to make it easier to report code violations. Violation and/or complaints can be reported by phone, the City’s website, or a special app “myDesertHotSprings” available for smart phones. Complaints can be submitted anonymously.

From 2014 to 2017, the City opened an average of 540 new code enforcement cases, the majority of which were for single-family residential structures. During this time frame, only one case was related to a mobile home park (exterior issue).

Code compliance officers are trained to be as helpful as possible in correcting or complying with the standards. Whenever possible, the City makes every reasonable effort to obtain voluntary compliance. In situations where a property owner does not have the resources to address violations, the City will provide assistance. For minor violations; for example related to debris removal, the City will offer available services at no charge. For major violations, code compliance officers will work with property owners to either defer billing for work completed by the City or have the property owners grant consent to be charged for the abatement costs associated with the cleanup of the property or add the cost to the property’s tax roll. The City willalso reach out to property owners for community clean up days or for available resources outside of the City, such as paint and weatherproofing supplies available through serviceproviders such as Habitat for Humanity.

E. ON- AND OFF-SITE IMPROVEMENTS
Site improvements and property dedications are important components of new developmentand contribute to the creation of decent housing. In Desert Hot Springs, site improvements vary depending on the existing condition of each project. Typically, site improvements are requested Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
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during the plan check process or as conditions of approval. New subdivisions typically require a certain level of public improvements and circulation improvements for the orderly and efficient development of the community.

As stated in the Municipal Code (Section 16.04), site improvements for residential subdivisions include:
§ Grading, drainage, and drainage structures necessary to proper use § Storm drains, conduits, and channels
§ Domestic water supply in compliance with the requirements of the applicable water district § Adequate sanitary sewer facilities, either within and/or outside the subdivision, in compliance with the policies and procedures of the Department of Public Works/City Engineer and the public service purveyor
§ Undergrounding of all existing and proposed utility distribution or transmission facilities § Dedication for streets and alleys, including access rights and abutters rights, drainage, public open space, trails, scenic easements, public utility easements, and other public easements
§ Street trees
§ Land for local transit facilities (e.g., shelters or bus turn outs) § Wind erosion mitigation in areas subject to wind erosion For subdivisions of four or fewer parcels, frontage improvements may be deferred when deemed appropriate by the City Engineer. Deferral may be allowed when the City Engineer finds that construction is impractical due to physical constraints, or the surrounding neighborhood is absent similar improvements. When improvements are deferred, the subdivider enters into an agreement with the City for the installation of all frontage improvements at a future date.

There are no unusual site improvement requirements that increase the cost of housing within the City. The City maintains consistency with legal requirements that require a nexus between the impacts created by a development project and the conditions of approval that are placed on that development. Thus, although development is required to pay its way, new development is not required to subsidize improvements required by past development. In cases where oversizing of facilities is necessary to facilitate future development, reimbursement agreements or similar mechanisms are entered into to ensure that developers pay their fair shares of required improvements.

F. FEES AND OTHER EXACTIONS
Housing construction imposes certain short- and long- term costs upon local government, such as the cost of providing planning services and inspections. As a result, the City relies upon various planning and development fees to recoup costs and ensure that essential services and infrastructure are available when needed. Development impact fees are required to provide essential services and infrastructure to serve new residents. Impact fees are governed by State law and must demonstrate a nexus between development and potential impacts. State law also requires the proportionality test to ensure the pro rata share of costs to provide services and infrastructure by individual developments is reasonable.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-13
Table D-5 lists the fees for single- and multi-family housing. A fee summary is presented below:

Single-Family Multi-Family
City Fees $13,203 $10,010
Non-City Fees – Other $10,554 $6,344
Developer (School) Fees $8,160 $4,080
Developer (school) fees are the highest individual fees at $8,160 and $4,080.On a percentage basis, the fee breakdown is as follows:

Single-Family Multi-Family
City Fees 41.4% 49.0%
Non-City Fees – Other 33.1% 31.0 %
Developer (School) Fees 25.5% 20.0%
City fees represent approximately 41% and 49% of the total fees for single- and multi-family housing, respectively. The City fees as a percentage of housing development costs is estimated below:

Single-Family
$300,000 4.4%
$350,000 3.8%
$375,000 3.5%
Multi-Family
$200,000 5.0%
$225,000 4.4%
$250,000 4.0%
City fees comprise a small share of the development costs of single-family and multi-family housing. They do not represent a constraint to new residential development.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-14
Table D-5
City of Desert Hot SpringsFee Schedule
Fee Type Single Family Multi-Family
Fire Protection Impact Fee $362.00 $207.00
Law Enforcement Facilities Impact Fee $362.00 $1,652.00 General Facilities Impact Fee $749.00 $749.00
Circulation System Impact Fee $2,165.00 $2,891.00
Storm Drain Impact Fee $789.00 $460.59
Community Center Impact Fee $1,660.00 $1,438.00
Parkland Impact Fee $2,795.00 $2,421.00
Aquatic Center Impact Fee $221.00 $192.00
Building Plan Check Fee $2,500.00 See note
Building Permit Fee $1,600.00 See note
Total City Fees $13,203.00 $10,010.00
Water Connection Fee1 $4,353.00 $2,423.00
Sewer Connection Fee $2,520.00 $2,020.00
Multiple Species Habitat Conservation (MSHCP) or LDMF3 $1,371.00 $571.00 Transportation Uniform Mitigation fee (TUMF)4 $2,310.00 $1,330.00 Developer Fee $8,160.00 $4,080.00
Total Non-City Fees $18,714.00 $10,424.00
Total Fees $31,917.00 $20,434.00
Note; The Building Department was unable to provide a standard fee because the multi-family fees are valuation based; the valuation is based on occupancy types and square footages of the development.

Therefore, the total multi-family fees are under estimated. 1Mission Springs Water District water connection fee – 3/4 inch meter size for single-family and 1 inch for multi-family tri-plex.

Water Connection Charges apply to the construction of the water transmission lines, well sites for production, reservoirs for storage, and/or the water distribution line running adjacent to a properties frontage 2Mission Springs Water District sewer connection fee
3Fee Subject to change per CVCC
4Fees Subject to change per CVAG
5Palm Springs Unified School District developer fee of $4.08/Sf. Single family fee based on 2,000 SF dwelling size.

Multifamily developer fee based on 1,000 SF dwelling size.

G. CITY PROCESSING AND PERMIT PROCEDURES

1. Development Review Process and Timelines
Development of single family residential subdivisions can take up to three months for processing.

A Tentative Tract Map requires Planning Commission approval for entitlements. Planning Staff as part of its function in reviewing applications, analyzes each project’s compliance with the City’s Zoning Ordinance. Multifamily family projects require a Development Review permit, which is approved by the Planning Commission. The City does not have an Architectural Review Board, because City staff is responsible for the review of applications for consistency with Zoning standards. The Planning Commission is the final reviewing authority for Development Permits for multifamily projects. Once entitlements are obtained processing time for building permits can be as short as 30 days for plan check review.

Multi-family development is processed through a Development Permit which requires Planning Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-15
Commission approval, and usually takes about 4 months to process.

The processing time for a Development Permit can be administrative if CEQA clearance is not required. For larger multi-family development where CEQA is required it can be as short as three months as well. By having Planning Staff serve as the Architectural Review Boardproposed housing developments, single family or multi-family, there is no additional approval required prior to taking proposed housing developments to the Planning Commission for review and approval.

The City complies with the Permit Streamlining Act (1977), which imposes time limits within which state and local government agencies must either approve or disapprove permits. While the City attempts to process development applications in a timely and efficient manner, some delays are outside the control of the City. Delays in processing can occur if environmental review, pursuant to California Environmental Quality Act (CEQA), requires an EIR or MND to be prepared. At times, approval from State or other agencies may also be required for certain typesof projects.

2. Development Permit and Findings
A Development Permit (DP) functions like a site development permit in other cities and applies to all new construction, including the models for single family tract development and multifamily projects, and would be the only permit, other than building permits, required by the City. A DP is required to ensure that new development is carried out in accordance with the Zoning Ordinance, the goals and objectives of the General Plan, and any other adopted plans and guidelines. Unlike a Conditional Use Permit (which is not required for multifamily projects in the City), the DP is a review for consistency with Zoning standards and requirements. The following findings are required for approval of a Development Permit:

1. That the proposed use is permitted within the subject land use district and complies with all of the applicable provisions of this Zoning Ordinance, including prescribed development standards and design guidelines;

2. That the subject site is physically suitable for the type and intensity of the land use being proposed;

3. That the proposed development would be compatible with existing and future developments within the land use district and general area;

4. That there are adequate provisions for water, sanitation, and public utilities and services to ensure that the proposed use is not detrimental to public health and safety;

5. That there is adequate public access and roadway capacity to serve the subject proposal;

6. That there are no significant harmful effects upon environmental quality and natural resources;

7. That any negative impacts of the proposed use can and shall be mitigated;

8. That the proposed use is consistent with the General Plan; and

9. That the proposed location, size, design, and operational characteristics of the planned use are not detrimental to the public interest, health, safety, convenience, or welfare of the City.

The findings are generally limited to objective standards and consistency with the General Plan, Zoning and the requirements of the California Environmental Quality Act (CEQA). Finding 2 refers only to physical constraints, such as slope hazards and washes and channels, and is not subjective. However, findings 3 and 9 can be considered subjective, and could pose a constraint to the development of housing during the planning period. In order to remove this constraint, Program 3.1 requires that findings 3 and 9 be removed from the Zoning Ordinance as part of the comprehensive update currently being undertaken by the City.

Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-16
H. ANALYSIS OF ADOPTED ORDINANCES THAT DIRECTLY IMPACT ING THE COST

AND SUPPLY OF HOUSING
The City has no growth control measures or urban growth limit line. The City has no local ordinances that directly impact the cost and supply of residential development such as inclusionary ordinances, short- term rental ordinances, or moratoriums on specific development type.

The City has adopted an ADU ordinance. ADUs provide the opportunity to lower housing production costs because no land costs are involved and housing unit sizes can be smaller than the average one- and two-bedroom units.

JADUs provide the opportunity to add to the existing housing supply with the living space of an existing unit.

The City’s Density Bonus Ordinance offers the opportunity to reduce per housing unit land costs and parking improvement costs.

I. DESCRIPTION OF EFFORTS TO REMOVE GOVERNMENTAL CONSTRAINTS THAT

HINDER THE CITY FROM MEETING ITS SHARE OF THE REGIONAL HOUSING NEED The City has designated sufficient land to accommodate the 2021-2029 RHNA. Concurrent with an improving economy and increased demand for housing, the City staff will expedite and streamline housing development applications. As previously noted, the comprehensive Zoning Ordinance update will seek to streamline the development permit process.

J. DESCRIPTION OF EFFORTS TO REMOVE GOVERNMENTAL CONSTRAINTS THAT

HINDER THE CITY FROM MEETING SPECIAL HOUSING NEEDS

1. Reasonable Accommodation Procedure
Building and development standards may constrain the ability of persons with disabilities to live in housing units that are suited to their needs. Reasonable accommodation refers to flexibility in standards and policies to accommodate the needs of persons with disabilities. The Zoning Ordinanceallows for special provisions that meet the needs of persons with disabilities without the need forvariances. The Reasonable Accommodation Ordinance is codified in Chapter 17.220 of the Zoning Code, and copies of the City’s reasonable accommodation brochure and application form are provided on the City’s website in both English and Spanish (Program 3.2). Section

17.220 reads, in part, as follows:

2. Reasonable Accommodation Procedure Application/Brochure The application requirements for reasonable accommodation are detailed in Section 17.220.030 of the Zoning Code as follows.
“A. A request for reasonable accommodation shall be filed on the application form provided by the Planning Department. If necessary to ensure accessibility, the applicant may request an alternative format. The applicant may be the person with the disability or his or her representative.

No fee shall be required for a request for reasonable accommodation, but if the project requires another discretionary permit, then the prescribed fee shall be paid for all other discretionary Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-17
permits. The application shall be signed by the owner of the property and shall provide the following information:

1. Applicant’s name and contact information;

2. Property address;

3. Current use of the property;

4. Basis for the claim that the individual is considered disabled under Fair Housing Laws;

5. The zoning code provision, regulation or policy from which reasonable accommodation is being requested;

6. Explanation why the reasonable accommodation is necessary to make the specific property accessible to the individual; and

7. Plans showing the details of the proposal.”
Approval authority rests with the Planning Director, who can grant or deny the reasonable accommodation based on the findings described below. The Director is also required to engage in an interactive process with the applicant to consider alternatives if the accommodation would impose an undue financial burden on the City, or require a fundamental alteration to the proposal, if the Director intends to deny the proposed accommodation. The Ordinance also provides specific factors required for analysis of an accommodation:

Factor 1: Is the housing, which is the subject of the request for reasonable accommodation, to be used by an individual protected under the Act? An individual is protected under the Act if he or she meets the definition of disability.

Additionally, if the specific housing is for people with disabilities, this prerequisite is met.

Factor 2: Is the request for accommodation necessary to make specific housing available to an individual protected under the Act?
Under the Act, cities and counties have an affirmative duty to provide individuals with disabilities reasonable accommodations to “rules, policies, practices, or services, when such accommodation may be necessary to afford such persons equal opportunity to use and enjoy a dwelling.” Whether an accommodation is necessary requires a “fact-specific inquiry regarding each such request.” Failure to make reasonable accommodation is a violation of the Act.

Factor 3: Whether the requested accommodation would impose an undue financial or administrative burden on the jurisdiction?
Once an individual establishes that an accommodation is necessary for equal access to housing, then the jurisdiction must provide the requested accommodation unless they present evidence that granting the accommodation would impose an undue financial or administrative burden on the jurisdiction. The analysis is a fact-specific inquiry. If the jurisdiction establishes an undue burden, then the accommodation is not reasonable and should not be granted by local government. In the land use and zoning context, many requests for accommodation will be a request to modify or waive a regulation or procedure.

It costs a jurisdiction nothing to waive a rule, meaning that “. . . the accommodation request amounts to nothing more than a request for non-enforcement of a rule.” In those instances, a jurisdiction would not be likely to demonstrate undue burden.

Factor 4: Whether the requested accommodation would require a fundamental alteration in the nature of a program?
Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-18
The findings for approval are consistent with State law, and do not result in a constraint to disabled persons seeking the accommodation.

A. The housing, which is the subject of the request, will be used by an individual disabled under the Federal Fair Housing Act and the California Fair Employment and HousingAct.

B. The requested reasonable accommodation is necessary to make specific housing available to an individual with a disability under the Federal Fair Housing Act and the California Fair Employment and Housing Act.

C. The requested reasonable accommodation would not impose an undue financial or administrative burden on the City.

D. The requested reasonable accommodation would not require a fundamental alteration in the nature of a City program or law, including, but not limited to, land use and zoning. (Ord. 679 2-19-19)
Section 17.220.040 addresses appeals to Director decisions: “Any decision of the Director or designee may be appealed by the applicant to the Planning Commission. The appeal shall be made in writing and filed with the Director within 15 days following the final decision. The appeal shall clearly state the reasons for the appeal. Where the request for accommodation is in conjunction with an application for another approval, permit or entitlement, the appeal procedures for such other approval, permit or entitlement shall control. (Ord. 679 2-19-19)” As described above, the City’s procedures are in place to provide for reasonable accommodations for its residents, and the requirements and procedures do not pose a constraint to disabled residents.

3. Housing for Persons with Disabilities
Residential care facilities in a home are permitted by rights in all residential zones: R-RD, Residential Rural Desert; R-L, Residential Low; R-M, Residential Medium; and R-H, Residential High. These facilities are not subject to a CUP if they serve seven or more persons.

These facilities are subject to the same development standards and permit processing standards as other residential uses in those zones, pursuant to the California Lanterman Developmental Disabilities Services Act. The City has no distancing requirements for group homes for persons with disabilities.

K. GOVERNMENT CODE SECTION 65940.1
Government Code Section 65940.1 requires cities with an internet website to make available on their websites a variety of housing development information such as, but not limited, to: fees and exactions; zoning, design, and development standards; annual fee reports; and impact fee nexus studies.

This information is found on the webpages of City departments. For example:
§ Building Division: forms, building permit application, fee schedule § Planning Division: forms, applications, General Plan, Zoning Map, fee schedule Item Number: 7.

APPENDIX D GOVERNMENTAL CONSTRAINTS ANALYSIS
D-19
§ Finance Department: User Fee Study April 2020, Development Impact Fee Study – City limits, Development Impact Fee Study – Sphere of Influence, fee schedule § City Clerk: Municipal Code – Zoning Ordinance
The Community Development Department will complete a full assessment of what, if any actions are necessary to meet the requirements of Government Code Section 65940.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
E-1
APPENDIX E. ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
A. INTRODUCTION
Government Code Section 65583(a)(6) requires -
An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels… The analysis must examine the following:
§ Availability of financing
§ Price of Land
§ Cost of construction
§ Requests to develop housing at densities below those stated in the sites inventory and analysis (Government Code 65583.2)(c)
§ Length of time between receiving approval for a housing development and submittal of an application for building permits
§ Efforts to remove nongovernmental constraints creating a gap between the planning for and construction of housing
In addition, information is presented on housing prices and rents.

B. AVAILABILITY OF FINANCING
The analysis of the availability of financing is based on the Home Mortgage Disclosure Act (HMDA) data on FHA and conventional loan applications made by borrowers to buy a home in Desert Hot Springs. The data provide the basis to calculate loan denial rates by loan type, borrower income, race/ethnicity, and census tract. The HMDA data analysis covers calendar years 2018 and 2019. The 2020 data will not available until September 2021.

1. Analysis of Home Purchase Loan Applications
During the two-year period 655 loan applications were made of which 12.8% were denied and

87.2% were approved. The loan denial rates for conventional loan applications were slightly higher than for FHA loan applications: 13.4% to 12.6%. Refer to Table E-1.

Overall, the vast majority – almost nine of every 10 loan applications - are approved.

FHA loan applications dominate the market as they comprise 68% of all loan applications.

Table E-2 reports on loan denial rates by loan type and income. Generally speaking, lower and higher income borrowers have the highest loan denial rates. Borrowers in the middle income groups seem to have the lowest denial rates.

The major reasons for loan denial are poor credit history and high debt to income ratios. These could be reasons for the higher than average denial rates of both the lower and higher income groups.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
E-2
Table E-3 shows the loan denial rates by race and ethnicity. Black borrowers experience the highest loan denial rates at 23%. Black borrowers submitted only 21 applications, indicating that a small increase in approvals would significantly alter the denial percentage.

The “other” borrowers also had a higher than average loan denial rate of almost 16%.

The Hispanic and White borrowers experience similar denial rates of about 12%. None of the six Asian loan applications were denied.

Table E-3 also shows that Hispanic borrowers comprise 54% of all borrowers. The White, nonHispanic borrowers comprise 28% of all borrowers. Consequently, three of every four loan applicants are either Hispanic or White, non-Hispanic.

Table E-1
City of Desert Hot Springs
FHA/VA/FSA and Conventional
Loan Applications and Denial Rates: 2018 and 2019
Type of Application
2018
Number/Percent
2019
Number/Percent
Total
Number/Percent

FHA/VA/FSA
Total Applications 221 225 446
Number Denied 23 33 56
Percent Denied 10.4% 14.7% 12.6%
Conventional Loans
Total Applications 111 98 209
Number Denied 14 14 28
Percent Denied 12.6% 14.3% 13.4%
All Loans
Total Applications 332 323 655
Number Denied 37 47 84
Percent Denied 11.1% 14.6% 12.8%
Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA) Website HMDA Data Browser
Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
E-3
Table E-2
City of Desert Hot Springs
FHA/VA/FSA and Conventional Loan Denial Rates
by Household Income: 2018 and 2019
Loan Type and Income
Total
Applications
Total
Denied
Percent
Denied
FHA/VA/FSA Loans
<$30,000 23 4 0.0%
$30,000-$39,999 48 12 25.0%
$40,000-$49,999 95 6 6.3%
$50,000-$59,999 97 10 10.3%
$60,000-$69,999 67 7 10.4%
$70,000-$79,999 48 6 12.5%
$80,000-$89,999 31 3 9.7%
$90,000-$99,999 16 2 12.5%
$100,000+ 21 6 28.6%
Total 446 56 12.6%
Conventional Loans
<$30,000 22 7 31.8%
$30,000-$39,999 17 1 5.9%
$40,000-$49,999 39 4 10.3%
$50,000-$59,999 37 4 10.8%
$60,000-$69,999 31 1 3.2%
$70,000-$79,999 18 3 16.7%
$80,000-$89,999 11 1 9.1%
$90,000-$99,999 10 3 30.0%
$100,000+ 23 4 17.4%
Income Not Available 1 0 0.0%
Total 209 28 13.4%
All Loans
<$30,000 45 11 24.4%
$30,000-$39,999 65 13 20.0%
$40,000-$49,999 134 10 7.5%
$50,000-$59,999 134 14 10.4%
$60,000-$69,999 98 8 8.2%
$70,000-$79,999 66 9 13.6%
$80,000-$89,999 42 4 9.5%
$90,000-$99,999 26 5 19.2%
$100,000+ 44 10 22.7%
Income Not Available 0 0 0.0%
Total 655 84 12.8%
Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA) Website HMDA Data Browser
Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
E-4
Table E-3
City of Desert Hot Springs
FHA/VA and Conventional Loan Denial Rates
By Race and Ethnicity: 2018 and 2019
Race/Ethnicity
Total
Applications
Total
Denied
Percent
Denied
FHA/VA/FSA Loans
Hispanic 264 32 12.1%
White, Non-Hispanic 99 12 12.1%
Black 19 4 21.1%
Asian 4 0 0.0%
All Other1 60 8 13.3%
Total 446 56 12.6%
Conventional Loans
Hispanic 92 11 12.0%
White, Non-Hispanic 85 10 11.8%
Black 2 1 50.0%
Asian 2 0 0.0%
All Other1 28 6 21.4%
Total 209 28 13.4%
All Loans
Hispanic 356 43 12.1%
White, Non-Hispanic 184 22 12.0%
Black 21 5 23.8%
Asian 6 0 0.0%
All Other1 88 14 15.9%
Total 655 84 12.8%
1Includes all other races and applications where race and/or ethnicity were not available
Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA) Website HMDA Data Browser

2. Redlining/Financing Availability by Census Tract
Redlining describes a situation where mortgage services are denied or limited for two specific reasons:
§ The racial and/or ethnic composition of an area’s residents § The age of an area’s properties
Redlining is when lenders used discriminatory and unfair lending practices that result in reduced lending accessibility for borrowers in the areas that show high populations of racial minorities, regardless of the credit worthiness of each individual borrower. The word redlining comes from the practice of outlining in red those geographical areas that were perceived to pose a higher mortgage risk. Redlining can affect a particular street, block, census tract, or an entire city.

Item Number: 7.

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According to the U.S. Department of Housing and Urban Development (HUD), the analysis of loan denial rates by census tract will help to identify if there are underserved neighborhoods.

HMDA data was assembled for five census tracts that are located entirely or predominantly within the City. Table E-4 shows that four of the five census tracts had denial rates between 12.0% and

14.1%. One census tract – 445.15 – had a denial rate of 9%. This latter census tract had the fewest loan applications at 67.

Overall, the loan denial/loan approval rates are similar and no individual census tract appears to be underserved.

Table E-4
City of Desert Hot Springs
FHA/VA and Conventional Loan Denial Rates by Census Tract: 2018 and 2019 Census
Tract
FHA/VA/FSA Loans Conventional Loans All Loans
Total
Apps.

Total
Denied
Percent
Denied
Total
Apps.

Total
Denied
Percent
Denied
Total
Apps.

Total
Denied
Percent
Denied
445.07 109 12 11.0% 41 6 14.6% 150 18 12.0%
445.09 49 8 16.3% 22 1 4.5% 71 9 12.7%
445.10 113 18 15.9% 29 2 6.9% 142 20 14.1%
445.15 50 4 8.0% 17 2 11.8% 67 6 9.0%
448.18 125 14 11.2% 100 17 17.0% 225 31 13.8%
Total 446 56 12.6% 209 28 13.4% 655 84 12.8%
Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA) Website HMDA Data Browser
Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
E-6
C. PRICE OF LAND

1. Single Family Lots
Land costs have a demonstrable influence on the cost and availability of affordable housing. Due to location and an ample supply of vacant land, housing costs in Desert Hot Springs have generally remained lower than in other suburban and urban areas of the State.

The vast majority of single family residential development will occur in neighborhoods with approved Specific Plans. An example of the cost of land is provided by one listing on the active market. The parcel size is 17.1 acres and consists of 77 semi-finished single family lots. The list price is $1,540,000 or $20,000 per lot. The parcel is located in a neighborhood of 153 total lots, of which 76 have been sold.

There are numerous scattered lots for sale that vary greatly in terms of size and asking prices.

2. Multifamily Land
On the active market there is a 7.51 acre lot for sale with an asking price of $1,950,000. The zoning permits housing at a density ranging from 20 to 30 dwelling units per acre.

At a density of 30 dwellings per acre, the average per unit land cost is $8,666.

At a density of 20 dwelling units per acre, the average per unit land cost is $13,000.

At a density of 15 dwelling units per acre, the average per unit land cost is $17,310.

At either density, land costs would comprise a small share of the total development costs.

D. COST OF CONSTRUCTION
Construction costs for housing can vary significantly depending on the type of housing, such as single-family, townhomes, and apartments. However, even within a particular building type, construction costs vary by unit size and amenities. The difficulty of developing awkward infill sites can also add to costs. Another factor related to construction costs is the number of units built at one time. As the number increase, overall costs generally decrease as builders can benefit from the economies of scale.

For standard housing construction, costs may average $124 to $157 per square foot for singlefamily residences depending on the level of amenities provided, and $114 to $169 per square foot for multifamily residential structure, depending on construction type and excluding parking (International Code Council Building Valuation Data, August 2020).

It should be noted that, when using BVD data, these are “average” costs based on typical construction methods for each occupancy group and type of construction. The average costs include foundation work, structural and nonstructural building components, electrical, plumbing, mechanical and interior finish material. The data is a national average and does not take into account any regional cost differences. As such, the use of Regional Cost Modifiers is subject to the authority having jurisdiction over the issuing of building permits. The City does not apply a Regional Cost Modifier.

Item Number: 7.

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E. COMPONENTS OF TOTAL DEVELOPMENT COSTS
According to the Terner Center:

Total development costs are made up of a lot of different line items, including land or property acquisition costs, construction costs, architectural/engineering costs, local development fees, as well as fees associated with the “soft” costs of development (e.g., legal fees, appraisals, and insurance).

Source: Terner Center for Housing Innovation, The Costs of Affordable Housing Production:

Insights from California’s 9% Low-Income Housing Tax Credit Program, March 2020, page 8 (Author: Carolina Reid)
Research completed by the Terner Center found that between 2008 and 2018, the hard costs of building apartment housing in California increased by $68 per square foot. The research shows that hard construction costs (material and labor) are the primary driver of rising development costs. The shortage in the construction labor market and higher prices for general contractors (as well as the subcontractors they hire) is affecting affordable housing development — just as this shortage impacts market-rate development.

Source: Terner Center for Housing Innovation, The Hard Costs of Construction: Recent Trends in Labor and Material Costs for Apartment Buildings in California, March 2020, 25 pages (Authors:

Hayley Raetz, Teddy Forscher, Elizabeth Kneebone, and Carolina Reid) F. COST OF AFFORDABLE HOUSING
The development costs associated with affordable housing are high and often exceed those of market rate projects. In many cities the cost of single family homes are less than those of individual apartments in an affordable housing development. The cost of new affordable housing is neither low cost nor cheap.

The United States Government Accounting Office (GAO) determined that in California the 2015 average per apartment unit development cost financed by Low Income Housing Tax Credits (LIHTC) was $335,727. The 2015 average cost was 10% higher than in 2011.

Source: United States Government Accountability Office, Low-Income Housing Tax Credit:

Improved Data and Oversight Would Strengthen Cost Assessment and Fraud Risk Management, September 2018, page 116
Affordable housing developments provide housing primarily for lower income households – that is, households whose annual income is 80% or less the County median income.

However, because 1) the development costs of tax credit projects have increased since 2015 and 2) they provide housing for extremely low and very low income households, the affordable rents usually supports 10% or less of the total development costs. HCD has reported that the average percentage shares of funding sources for an affordable housing development are as follows:
§ State housing tax credits 11%
§ Federal housing tax credits 43%
§ Private bank loans 9%
§ Federal HOME funds 5%
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APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
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§ Federal Home Loan Bank Affordable Housing Program 3%
§ State housing funds e.g. Veterans Housing and Homeless Prevention Program 19% § State Mental Health Services Act Housing funds 6%
G. HOUSING PRICES AND RENTS

1. Housing Prices
The American Community Survey (ACS) collects data on the owner’s estimate of a home’s value if it were for sale. According to the ACS:

Value is the respondent's estimate of how much the property (house and lot, mobile home and lot (if lot owned), or condominium unit) would sell for if it were for sale. If the house was owned or being bought, but the land on which it sits was not, the respondent was asked to estimate the combined value of the house and the land. For vacant units, value was the price asked for the property. Value was tabulated separately for all owner-occupied and vacant-forsale and sold, not occupied housing units, as well as owner-occupied mobile homes.

Table E-5 reports the median home values of cities located in the Coachella Valley. The median home values range from a low of $194,500 (Desert Hot Springs) to a high of $772,500 (Indian Wells).

Table E-5
Coachella Valley
Median Home Values by City (in Rank Order): 2015-2019
City Median Home Value
Desert Hot Springs $194,500
Coachella $219,400
Cathedral City $279,500
Indio $281,400
Palm Desert $350,400
Palm Springs $389,800
La Quinta $398,200
Rancho Mirage $498,700
Indian Wells $772,500
Source: American Community Survey, 2015-2019
5-Year Estimates, Table B25077 Median Home
Value (Dollars)
Based on the owner estimates, more than one-half (52.5%) of the homes in Desert Hot Springs had a value of less than $200,000. An estimated 33.5% had values in the range of $200,000 to $299,000. The balance of homes – 14% - had estimated values of $300,000 or more. The home value data demonstrate the affordability of existing homes in Desert Hot Springs. Refer to Table E-6.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
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Table E-6
City of Desert Hot Springs
Value of Housing Units: 2015-2019
Value Number Percent
Less than $100,000 470 10.1%
$100,000 to $124,999 462 9.9%
$125,000 to $149,999 365 7.8%
$150,000 to $174,999 592 12.7%
$175,000 to $199,999 559 12.0%
$200,000 to $249,999 1,015 21.8%
$250,000 to $299,999 544 11.7%
$300,000 to $399,999 408 8.8%
$400,000 to $499,999 137 2.9%
$500,000 to $749,999 17 0.4%
$750,000 to $999,999 51 1.1%
$1,000,000 to $1,499,999 14 0.3%
$1,500,000 to $1,999,999 0 0.0%
$2,000,000 or more 18 0.4%
Total 4,652 100.0%
Source: 2015-2019 American Community Survey 5-Year
Estimates, Table B25075 Value Occupancy
Table E-7 shows the prices of home sold in the City in the first eight months of 2021. During this period, 418 homes were sold. Sales prices in 2021 exceed the owner’s estimate of value in 2019.

The median sales price was $319,900. In fact, 12% of the homes sold for between $400,000 and $499,999. Another 3.1% sold for more than $500,000.

The California Association of Realtors’ (C.A.R.) Housing Affordability Index (HAI) measures the percentage of households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state as well as by race and ethnicity. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

The C.A.R. report for Riverside County indicates that $85,600 is the minimum household income need to buy a median-priced ($460,000) existing single-family home. The percentage of households who could afford to buy the home is listed below:
§ White, Non-Hispanic 50%
§ Asian 56%
§ Hispanic 40%
§ Black 43%
Existing homes in Desert Hot Springs are among the most affordable in Riverside County.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
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Table E-7
City of Desert Hot Springs
Home Sales by Number of Bedrooms January 1, 2021 through August 13, 2021 Price
Number of Bedrooms
Percent
Cumulative
1 2 3 4 5 Total Percent
Less than
$200,000 3 14 3 0 0 20 4.8% 4.8%
$200,000-
$249,999 0 18 26 3 0 47 11.2% 16.0%
$250,000-
$299,999 1 11 64 17 0 93 22.2% 38.3%
$300,000-
$349,999 0 5 84 34 0 123 29.4% 67.7%
$350,000-
$399,999 0 1 42 25 4 72 17.2% 84.9%
$400,000-
$449,999 1 2 25 8 4 40 9.6% 94.5%
$450,000-
$499,999 0 1 4 5 0 10 2.4% 96.9%
$500,000+ 0 2 3 4 4 13 3.1% 100.0%
Total 5 54 251 96 12 418 100.0%
Source: Pacific Association of Realtors, Combined Regional Multiple Listing Services (CRMLS) August 13, 2021.

2. Housing Rents
The ACS collects data on the gross rents of renter-occupied housing units. Gross rents include the contract rent plus utilities. According to the ACS:

Contract rent is the monthly rent agreed to or contracted for, regardless of any furnishings, utilities, fees, meals, or services that may be included. For vacant units, it is the monthly rent asked for the rental unit at the time of interview.

Gross rent is the contract rent plus the estimated average monthly cost of utilities (electricity, gas, and water and sewer) and fuels (oil, coal, kerosene, wood, etc.) if these are paid by the renter (or paid for the renter by someone else). Gross rent is intended to eliminate differentials that result from varying practices with respect to the inclusion of utilities and fuels as part of the rental payment. Renter units occupied without payment of rent are shown separately as “No rent paid” in the tabulations.

Table E-8 reports on the median gross rents of cities located in Coachella Valley. The median gross rents range from a low of $788 (Indian Wells) to a high of $1,449 (La Quinta). Almost all of Indian Wells’ rental housing is located in an affordable housing development.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
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Table E-8
Coachella Valley
Median Gross Rent by City
(In Rank Order): 2015-2019
City Median Rent
Indian Wells $788
Coachella $879
Desert Hot
Springs $963
Indio $1,084
Palm Springs $1,114
Rancho Mirage $1,191
Cathedral City $1,193
Palm Desert $1,319
La Quinta $1,449
Source:American Community Survey,
2015-2019 5-Year Estimates, Table
B25064 Median Gross Rent (Dollars)
According to Table E-9, rental units with three or more bedrooms comprise almost 41% of the stock. The reason is that just over 2,600 renters live in single-family detached dwellings.

Approximately one-third of the renter occupied housing units have monthly rents in the range of $1,000 to $1,499. Many of these units are probably renter-occupied single-family detached homes.

Approximately one in every eight rental units has monthly rents of $1,500 or more.

The majority (55%+) of renter-occupied units have monthly rents of $999 or less.

The monthly rents are relatively affordable. However, to afford a $900 monthly rent with 30% of income still requires an annual household income of $36,000.

Table E-10 shows the median gross rents by number of bedrooms. The median gross rent of a 2-bedroom unit is $917. The median gross rent of 4-bedroom unit is almost $500 more than a 2- bedroom unit. As noted before, a large percentage of renters occupy single-family dwellings.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
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Table E-9
City of Desert Hot Springs
Bedrooms by Monthly Gross Rent: 2015-2019
Monthly Gross Rent
No 1 2 3+
Bedroom Bedroom Bedrooms Bedrooms Total Percent
Less than $300 0 0 0 0 0 0.0%
$300-$499 10 84 0 11 105 1.9%
$500-$749 286 431 207 109 1,033 18.3%
$750-$999 0 359 1252 373 1,984 35.1%
$1,000-$1,499 17 46 569 1210 1,842 32.6%
$1,500 or more 0 0 79 609 688 12.2%
Total 313 920 2,107 2,312 5,652 100.0%
Percent 5.5% 16.3% 37.3% 40.9% 100.0%
Note: 172 renter households have no cash rent
Source: 2015-2019 American Community Survey 5-Year Estimates, Table B25068: Bedrooms by Gross Rent
Table E-10
City of Desert Hot Springs
Median Gross Rent by Bedrooms: 2015-2019
Number of Bedrooms Median Gross Rent
No bedroom $578
1 bedroom $710
2 bedrooms $917
3 bedrooms $1,231
4 bedrooms $1,404
Source: American Community Survey, 2015-2019 5-Year Estimates, Table B25031 Median Gross Rent by Bedrooms
H. REQUESTS TO DEVELOP HOUSING AT DENSITIES BELOW THOSE STATED IN THE SITES INVENTORY AND ANALYSIS (GOVERNMENT CODE 65583.2(C) The City has received no request to reduce the density of a site included in the land inventory of the 2013-2021 Housing Element. Development approval of projects with densities lower than what is anticipated in the 2021-2019 Housing Element is not expected during the 6th Cycle planning period. In general, and based on recent development in the City, most development applications aim for densities close to what is allowed by zoning.

I. LENGTH OF TIME BETWEEN RECEIVING APPROVAL FOR A HOUSING

DEVELOPMENT AND SUBMITTAL OF AN APPLICATION FOR BUILDING PERMITS The cost of development can be affected by delays in the land development process. Market factors outside of the City approval process can drive up the costs and risks of private development. In Desert Hot Springs, City staff estimates that most residential development projects have received project approval concurrent with building permit applications except in the case of developments with tract maps. Most commonly, incompleteness of applications can affect this time frame.

Item Number: 7.

APPENDIX E ANALYSIS OF NONGOVERNMENTAL CONSTRAINTS
E-13
J. EFFORTS TO REMOVE NONGOVERNMENTAL CONSTRAINTS CREATING A GAP

BETWEEN THE PLANNING FOR AND CONSTRUCTION OF HOUSING
The City approved several Specific Plans prior to the Great Recession. The downturn in the economy and the COVID-19 Pandemic has combined to stall the development of new housing in the approved Specific Plan areas. Recently, building permits have begun to be pulled for development in the Specific Plan areas.

In addition, the City adopted an Economic Development Element in 2020. The Element provides guidance on efforts to spur the demand for new housing: for example, the development of employment-generating industry clusters; workforce development; and marketing, promotion and economic development.

Item Number: 7.

APPENDIX F HOUSING RESOURCES
F-1

APPENDIX F HOUSING RESOURCES
Appendix F describes housing financial and administrative resources. Some of the resources provide assistance that could help address the City’s housing needs. The availability of land resources to accommodate the City’s share of the regional housing need was described in Appendix C - Sites Inventory and Analysis.

A. FINANCIAL RESOURCES

1. Financial Resources Available to the City
a. Community Development Block Grant Funds (CDBG)
The City is a cooperating city in the County of Riverside Urban County CDBG Program. The County’s 2019-2024 Consolidated Plan allocates $4,235,710 to the Homeowner Housing Rehabilitation Program. The 5-year goal is the rehabilitation of 125 owner-occupied housing units.

Desert Hot Springs home owners may apply for the financial assistance provided by this program.

Desert Hot Springs is not eligible to receive CDBG funds directly from HUD. The County’s CDBG allocation formula annually allocates funds to Desert Hot Springs. These funds are allocated by the City to CDBG-eligible activities.
b. Permanent Local Housing Allocation (PLHA) Program
SB 2 created a dedicated revenue source for affordable housing and directed the HCD to make available 70% of the moneys in the Building Homes and Jobs Trust Fund, collected on and after January 1, 2019, to local governments. Ninety percent of the moneys available will be allocated based on the formula used under Federal law to allocate CDBG funds to CDBG entitlement jurisdictions within California. Ten percent of the funds will be distributed to non-entitlement jurisdictions through a competitive grant program.

The PLHA funds are received directly by the County of Riverside. HCD estimates that the County of Riverside will receive $24 million over a 5-year period.

Desert Hot Springs is eligible to receive a share of the PLHA funds received by the County.

2. Home Investment Partnership Program (HOME)
Desert Hot Springs is not eligible to receive HOME funds directly from HUD. Annually, HUD allocates HOME funds to the County of Riverside. The County’s 2019-2024 Consolidated Plan allocates funds to the following projects:
§ First Time Homebuyer Assistance $4,353,170 100 households assisted § Rental Units Constructed $2,353,170 200 housing units § Rental Units Rehabilitated $1,000,000 50 housing units Income eligible households may apply for FTHB assistance to buy a home located in Desert Hot Springs.

Item Number: 7.

APPENDIX F HOUSING RESOURCES
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3. Section 8 Rental Assistance
The Housing Authority of the County of Riverside administers this program. Rental assistance covers the difference between the market rent and the rent that income-eligible renters can afford based on 30% of their monthly income.

As of September 2021, the program assists 370 Desert Hot Springs residents of which 104 are elderly and 165 are disabled.

Additionally, 1,680 residents are on the Section 8 Waiting List of which 223 are elderly and 443 are disabled.

An explanation of how the Section 8 program works is provided on the next page.

Table F-1 lists the maximum income limits, adjusted by household size, to be eligible for Section 8 rental assistance.

4. Low Income Housing Tax Credits
This program provides equity for the development of affordable housing. The City does not have direct access to this funding, which is awarded by the California Tax Credit Allocation Committee (TCAC) to experienced non-profit and for-profit developers on a competitive basis.

Six affordable housing developments located in Desert Hot Springs have obtained Low Income Housing Tax Credits:
§ Desert Horizons Apartments
§ Arroyo de Paz I Apartments
§ Arroyo de Paz II Apartments
§ Brisas de Paz
§ Hacienda Crossing Apartments
§ Verbena Crossing Apartments
An introduction to the Low Income Housing Tax Credit Program is available at:
https://fas.org/sgp/crs/misc/RS22389.pdf

5. Affordable Housing and Sustainable Communities Program (AHSC) The AHSC Program reduces greenhouse gas (GHG) emissions through projects implementing land-use, housing, transportation, and agricultural land preservation practices that support infill and compact development. Funding for the AHSC Program is provided from the Greenhouse Gas Reduction Fund (GGRF), an account established to receive Cap-and-Trade auction proceeds.

Item Number: 7.

APPENDIX F HOUSING RESOURCES
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How the Section 8 Voucher Program Works
The Housing Authority provides two basic types of rental assistance. The largest program is the Section 8 Housing Choice Voucher Program. The applicant receives a Housing Choice Voucher once they have met all eligibility requirements.

The program participant can select an appropriate rental unit (house or apartment) and live where they wish.

The unit that is selected must:
§ Meet housing quality standards
§ Must have an appropriate number of bedrooms
§ The rent must be reasonable with regard to current market rents § Must also be affordable to the participant
The participant pays part of the rent and the Housing Authority pays part of the rent. The participant pays between 30% and 40% of their monthly income for rent. Depending on the income of the family, the Housing Authority may pay all or a very small portion of the rent.

The two examples listed below are for the same family size with only income differences. There are adjustment factors to the income that will not be discussed in these examples. All of the information below provides examples only and are not to be considered as actual amounts.

Example One:
§ Mother and two minor children
§ Mother’s income is $6.25/hour 20 hrs per week
§ The rent on a two-bedroom apartment is $625 with the tenant paying gas and electricity.

The tenant would pay $94 per month to the landlord
§ The Housing Authority would pay $531 per month to the landlord.

Example Two:
§ Mother and two minor children
§ Mother’s income is $10.00/hr 40 hours per week.
§ The rent on a two-bedroom apartment is $625 with the tenant paying gas and electricity.

The tenant would pay $451 per month to the landlord.
§ The Housing Authority would pay $174 per month to the landlord.

The amount of rent is limited because the participant may not pay over 40% of their adjusted income toward rent and utilities. If the tenant’s share exceeds 40% on a specific unit, the Housing Authority would not approve the lease.

Item Number: 7.

APPENDIX F HOUSING RESOURCES
F-4
Table F-1
Riverside County Maximum Gross Income Limits
Effective 04/01/2020
# of Family
Members
Housing Choice Voucher Program
Extremely Low Income Limits
(30% of median)
Housing Choice Voucher Program
Very Low Income limits
(50% of median)
in household Annual Monthly Annual Monthly
1 $15,800 $1,320 $26,400 $2,200
2 $18,100 $1,508 $30,150 $2,512
3 $21,720 $1,810 $33,900 $2,825
4 $26,200 $2,183 $37,650 $3,137
5 $30,680 $2,556 $40,700 $3,391
6 $35,160 $2,930 $43,700 $3,641
7 $39,640 $3,303 $46,700 $3,891
8 $44,120 $3,676 $49,700 $4,141
9 $48,600 $4,050 $52,750 $4,395
10 $53,080 $4,423 $55,750 $4,645
11 $57,560 $4,796 $58,750 $4,895
12 $61,750 $5,145 $61,750 $5,145
13 $64,800 $5,400 $64,800 $5,400
14 $67,800 $5,650 $67,800 $5,650
Source: County of Riverside Housing Authority

6. CalHFA Multifamily Mixed Income Program
The CalHFA Mixed-Income Program (MIP) provides long-term subordinate financing for new construction of multifamily housing projects which restrict units at a mix between 30% and 120% of the Area Median Income. The program was created after Senate Bill 2 (SB2), the Building Homes and Jobs Act which was signed into law in 2017, established an annual appropriation to the Agency for the purpose of creating mixed income multifamily residential housing for lower to moderate income households. CalHFA receives 15% of the Building Homes and Jobs Act Fund for this purpose.

CalHFA expects to have a total of $60 million available for MIP subordinate financing in 2021.

For 2021, the Agency has also made available funds provided through Assembly Bill 101. The bill directs the funding to CalHFA to be used to finance low- and moderate-income housing.

7. CalHFA Homebuyer Programs
The agency offers a variety of loan programs to purchasers of a home: conventional loans, government insured loans (FHA, VA), down payment assistance programs, and Mortgage Credit Certificates (MCCs).

8. CalHFA Multifamily Programs
CalHFA's Taxable, Tax-Exempt, or CalHFA funded Permanent Loan programs provide competitive long-term financing for affordable multifamily rental housing projects. Eligible projects Item Number: 7.

APPENDIX F HOUSING RESOURCES
F-5
include newly constructed or acquisition/rehabilitation developments that provide affordable housing opportunities for individuals, families, seniors, veterans, and special needs tenants.

CalHFA’s Conduit Issuer Program is designed to facilitate access to tax-exempt and taxable bonds by developers that seek financing for eligible projects that provide affordable multifamily rental housing for individuals, families, seniors, veterans or special needs tenants. The conduit bonds may be used to finance the acquisition, rehabilitation, and/or development of an existing project, or they can be used for the construction of a new project.

9. HCD No Place Like Home Program (NPLH) Program
This program provides funding and tools that enables HCD to address affordability issues associated with creating housing units that are specifically set aside for persons with serious mental illness who are chronically homeless, homeless, or at-risk of becoming chronically homeless. Under the program, the Department may make loans to reduce the initial cost of acquisition and/or construction or rehabilitation of housing, and may set funds aside to subsidize extremely low rent levels over time.

10. HCD Multifamily Housing Program
Funds for the program were authorized by the Veterans and Affordable Housing Act of 2018. The program funds new construction, rehabilitation of housing, development or conversion of a nonresidential structure to a rental housing development. Eligible uses include land acquisition and construction. The maximum rent limit is 30% of 60% of Area Median Income (AMI), adjusted by unit size.

11. HCD Supportive Housing Multifamily Housing Program
Funds available are for multifamily rental housing projects involving new construction, rehabilitation, acquisition and rehabilitation, or conversion of nonresidential structures for the purpose of development of rental housing containing permanent supportive housing units for the target population.

12. HCD Veterans Housing and Homelessness Prevention Program This program involves collaboration between HCD, California Department of Veteran Affairs, and California Housing Finance Agency to provide $600 million in Proposition 41 general obligation bonds to fund affordable multifamily rental, supportive and transitional housing. The goal is to fund 4,800 new veteran housing units including 2,880 to 3,300 permanent supportive housing units for homeless veterans. Of the permanent supportive housing units, 1,200 to 1,400 will be for chronically homeless veterans. Priority is placed on housing to be developed in areas with especially high concentrations of California’s most vulnerable veterans while preserving funding for other areas.
“Veteran” means any person who served in the active military, naval, or air service of the United States or as a member of the National Guard who was called to and released from active duty or active services for a period of not fewer than 90 consecutive days or was discharged from service due to a service-related disability. This includes veterans with other-than-honorable discharges.

Item Number: 7.

APPENDIX F HOUSING RESOURCES
F-6
At least 50% of the funds awarded shall serve veteran households with extremely low incomes. Of those units targeted to extremely low-income veteran housing, 60% shall be supportive housing units.

13. Housing for Healthy California (HHC) Program
In September of 2017, as part of a landmark housing package, Governor Jerry Brown signed AB 74 into law. The HCD is authorized to develop the Housing for a Healthy California (HHC) Program. The HHC program creates supportive housing for individuals who are recipients of or eligible for health care provided through the California Department of Health Care Services, MediCal program. The goal of the HHC program is to reduce the financial burden on local and state resources due to the overutilization of emergency departments, inpatient care, nursing home stays and use of corrections systems and law enforcement resources as the point of health care provision for people who are chronically homeless or homeless and a high-cost health user.

14. AB 101
a. New State Low Income Housing Tax Credits Program
Provides for the allocation of $500 million in new state low-income housing tax credits for new construction projects that receive the federal 4% tax credit. For these new credits, the bill would increase the eligible basis for these projects from 13% to 30%. It would require at least $300 million of this to be available to new construction projects receiving the federal 4% tax credit, and would allow up to $200 million to be available to projects receiving assistance from the California Housing Finance Agency (CalHFA) Mixed Income Program.

Eligible basis refers to depreciable basis; it does not include land, syndication, organization, or permanent financing costs. A more complete explanation of eligible basis is available at:
https://www.ncsha.org/wp-content/uploads/2018/11/Eligible-Basis-and-Credit-Calculations.pdf b. CalHome Program
AB 101 (2019) allows the CalHome program to include accessory dwelling units (ADUs) and junior accessory dwelling units (JADU), and to authorize the program to make grants for housing purposes in declared disaster areas.

B. ADMINISTRATIVE RESOURCES
Administrative resources include organizations that are able to assist the City in implementing housing activities, including some of those described in Section II - Housing Program.

1. California Department of Housing and Community Development (HCD) HCD is able to provide technical assistance on a myriad of housing topics, including model housing programs and ordinances.

2. Housing Authority of the County of Riverside
This agency administers the Section 8 Housing Voucher Program and Public Housing Program.

The HA’s area of operation is all of the unincorporated areas of the County and all incorporated cities.

Item Number: 7.

APPENDIX F HOUSING RESOURCES
F-7

3. Riverside County Continuum of Care (CoC)
The Continuum of Care for Riverside County – CoC Program provides homeless assistance by leveraging funding needed through the HUD Consolidated Application; this provides collaboration between providers of housing and homeless assistance programs and other federal programs.

The CoC is a network of private and public sector homeless service providers, designed to promote community-wide planning and the strategic use of resources addressing homelessness.

The CoC seeks to improve coordination and integration with mainstream resources and other community programs for people who are experiencing or are at-risk of becoming homeless. The CoC seeks to improve and expand the collection of data countywide, develop performance measurements, and allows for each community to tailor its’ program to the particular strengths and challenges within that community. The goal is to assist people to achieve stability through self -sufficiency.

Some of the CoC’s activities include the annual HUD Continuum of Care Programs Notice of Funds Availability (NOFA), for homeless services and housing programs, the Emergency Food and Shelter Program (EFSP) NOFA and the biennial Point in Time Count and Survey of homeless individuals in the County.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-1

APPENDIX G PROGRESS REPORT
A. GOVERNMENT CODE REQUIREMENTS
HCD suggests that the Progress Report (officially known as review and revision) discuss:
"Appropriateness of goals, objectives and policies" (Section 65588(a)(1)): A description of how the goals, objectives, policies and programs of the updated element incorporate what has been learned from the results of the prior element. "Effectiveness of the element" (Section 65588(a)(2)): A comparison of the actual results of the earlier element with its goals, objectives, policies and programs. The results should be quantified where possible (e.g., rehabilitation), but may be qualitative where necessary (e.g., mitigation of constraints).
"Progress in implementation” (Section 65583(a)(3): An analysis of the significant differences between what was projected or planned in the earlier element and what was achieved.

B. APPROPRIATENESS OF GOALS, OBJECTIVES AND POLICIES

1. Goals and Policies
On July 7, 2021, the City Council adopted the 5th Cycle Housing Element. Because the goals and policies remain appropriate, the 6th Cycle Housing Element has incorporated the goals and policies of the 2013-2021 Housing Element. The goals and policies, however, have been organized according to the housing element mandated program categories:
§ Identify Actions to Make Sites Available to Accommodate the City’s Share of the Regional Housing Need That Could Not Be Accommodated on the Sites Identified in the Land Inventory [Government Code Section 65583(c)(1)] § Assist in the Development of Adequate Housing to Meet the Needs of Extremely Low, Very Low-, Low- and Moderate Income Households [Government Code Section 65583(c)(2)]
§ Address and, Where Appropriate and Legally Possible, Remove Governmental and Nongovernmental Constraints to the Maintenance, Improvement and Development of Housing Including Housing for All Income Levels and Housing for Persons with Disabilities [Government Code Section 65583(c)(3] § Conserve and Improve the Condition of the Existing Affordable Housing Stock [Government Code Section 65583(c)(4)]
§ Promote and Affirmatively Further Fair Housing Opportunities throughout the Community or Communities for All Persons Regardless of Race, Religion, Sex, Marital Status, Ancestry, National Origin, Color, Familial Status, or Disability [Government Code Section 65583(c)(5)]
In addition, goals and policies were added to address the housing needs of special populations. The goals and policies provide a link between the findings of the assessment of Item Number: 7.

APPENDIX G PROGRESS REPORT
G-2
housing needs and actions to address the needs of the elderly, disabled, and other special needs populations.

2. Objectives
The “construction” quantified objectives for the 2014-2021 period are:
§ Lower Income 4,653 housing units
§ Moderate Income 650 housing units
§ Above moderate Income 1,817 housing units
Between 2014 and 2020, building permits have been issued for the following:
§ Very Low Income 53
§ Low Income 2
§ Moderate Income 83
§ Above Moderate Income 0
The “rehabilitation” objective for the 2014-2021 period is 80 rehabilitated homes. For reasons explained elsewhere in the Progress Report, the objective was not met.

The “conservation/preservation” is 355 lower income households and represents the number of households assisted by the Section 8 Housing Choice Voucher Program. The objective was exceeded as 370 households are being assisted as of September 1, 2021. The City has successfully assisted lower income households in conservation and preservation of affordable housing units during the previous planning period. Note that lower income households in the City are often also special needs populations such as the elderly, persons with disabilities, female headed households, large households, persons experiencing homelessness, and farmworkers.

C. EFFECTIVENESS OF THE ELEMENT
Each program and its effectiveness are described starting on page G-4. There are a total of 16 programs: 14 were continuously implemented since 2014 and two were added on July 7, 2020.

As described under the individual discussions of programs below, the City has successfully helped special needs populations, including the elderly, persons with disabilities, female headed households and persons experiencing homeless through its support of Section 8 and other County programs, establishment of Mixed Use zones that provide housing opportunities in proximity to services, transportation and jobs, and rehabilitation and conservation of housing throughout the community.

D. PROGRESS IN IMPLEMENTATION
Progress in implementation is reported below for two time periods.

Programs Implemented During 2013-2021
2 No Net Loss – implemented and included in 6th Cycle Housing Element Item Number: 7.

APPENDIX G PROGRESS REPORT
G-3
3 Housing Choice Voucher Program - implemented and included in 6th Cycle Housing Element
4 Density Bonus – not successfully implemented
5 Homebuyer Assistance Program – not successfully implemented; included in 6th Cycle Housing Element

6. Affordable Housing Incentives – not implemented but will contribute to Lift to Rise Program

7. Zoning Ordinance Update – will be implemented with LEAP funding

8. Mixed Use Development - implemented
9 Water and Sewer Providers – implemented

11. Code Enforcement - implemented

12. Housing Repair and Rehabilitation Programs – not successfully implemented; included in 6th Cycle Housing Element

13. Abandoned Residential Property Registration - implemented

14. At-Risk Housing Monitoring - implemented

15. Fair Housing Services - implemented
Programs Added July 7, 2020

1. Adequate Sites - implemented

16. Affirmatively Furthering Fair Housing – implemented Item Number: 7.

APPENDIX G PROGRESS REPORT
G-4

CITY OF DESERT HOT SPRINGS
EFFECTIVENESS OF THE 5TH CYCLE HOUSING ELEMENT
PROGRAM 1: ADEQUATE SITES
To accommodate the lower-income RHNA shortfall of 4,026 units (for the 2008-2014 and 2014-2021 RHNA planning periods), the City will rezone just under 219 acres of sites within, R-H: Residential High, and MU-C: Mixed-Use Corridor designations.

The rezone was completed in June 2020. The sites were rezoned to have capacity for at least 16 units per site at a minimum density of 20 units per acre, and at least half of the very lowand low-income housing need will be accommodated on sites designated for residential use and for which nonresidential uses or mixed-uses are not permitted. The rezone provides adequate sites and zoning to facilitate affordable housing development, which will benefit special needs populations by meeting their housing needs in the City.

Program 1 was effectively implemented.

PROGRAM 2: NO NET LOSS
Pursuant to Government Code Section 65863, the City will ensure that its Housing Element sites inventory can accommodate its share of the RHNA by income level throughout the 8- year planning period. The City implemented the No Net Loss Program throughout the 2013- 2021 planning period. Since 2013, the City has not approved a project at a reduced density.

In accordance with the No Net Loss law, if a proposed reduction of residential density will result in the residential sites inventory failing to accommodate the RHNA by income level, the City will identify and make available additional adequate sites to accommodate its share of housing need by income level within 180 days of approving the reduced density project.

HCD has suggested that:

A jurisdiction should implement an ongoing, project-by-project evaluation of each approved residential development to ensure that sufficient adequate site capacity is available to accommodate the remaining RHNA by income category throughout the planning period. This evaluation could also be used to complete the Annual Progress Report (APR) required to be sent to the Department by April 1 of each year.

Source: California Department of Housing and Community Development, No Net Loss Law (Government Code Section 65863) Memorandum, page 11 In June 2021, the City prepared a No Net Loss Monitoring Procedure modeled after HCD’s No Net Loss Capacity Calculation Tool. The City having not approved a project at a reduced density since 2013, together with the No Net Loss Monitoring Procedure, ensure affordable housing supply and the ability to meet the housing needs of special needs populations in the City.

Program 2 was effectively implemented.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-5
PROGRAM 3: HOUSING CHOICE VOUCHER PROGRAM
This Program was included in both the 4th and 5th Cycle Housing Elements.

The Section 8 rental voucher program provides rental assistance to help very low income and special needs households afford decent, safe, and sanitary rental housing. The Program is administered by the Housing Authority of the County of Riverside.

The family receiving assistance typically pays no more than 30% of their income on rent and the Housing Authority pays the owner the remaining portion of the rent (a housing assistance payment (HAP)) on behalf of the renter.

The Housing Authority receives program funding from HUD.

Since 2013, the City has continued to support the County Housing Authority’s applications for additional Section 8 funding from HUD and assist the Housing Authority in marketing the program to renters and landlords.

As of September 1, 2021, 370 renter households living in Desert Hot Springs were receiving Section 8 rental assistance. This represents an increase of 15 households since July 2018.

The City’s support in marketing and implementing the Section 8 program directly helps renter households with special needs by relieving their housing cost burden.

Program 3 was effectively implemented.

PROGRAM 4: DENSITY BONUS
The City currently has two density bonus provisions. The first provision is based upon State Government Code Section 65915. The second provision provides density bonus incentives for the incorporation of on-site amenities. The two provisions provide flexibility for projects that provide affordable housing and on-site amenities.

The City will encourage use of the State Affordable Housing Density Bonus Law and the Incentive-Based Density Bonus provisions through technical assistance and information dissemination.

Between October 2013 and September 2021, the City has not received a density bonus application.

Program 4 was not effective due in large part to lack of multi-family housing production since 2014.

PROGRAM 5: HOMEBUYER ASSISTANCE PROGRAM
This Program was supported throughout the 2013-2021 period.

Desert Hot Springs is a CDBG/HOME cooperating city with the County of Riverside. Through this cooperative effort, City residents and projects are eligible for the – § First-Time Homebuyer Program (up to 20% of the purchase price) § Mortgage Credit Certificate Program (reduced federal income tax liability) Item Number: 7.

APPENDIX G PROGRESS REPORT
G-6
The 5th Cycle Housing Element established an objective of assistance to four households annually or 32 during an 8-year period.

The program has been unsuccessful in reaching the quantified objective because it exceeds what the City should realistically expect in terms of program participation and the County funding that would be expended in Desert Hot Springs.

The County’s FTHB Program assists lower income renters living in the unincorporated area and 13 cooperating cities. The 5-year Consolidated Plan set an objective of assistance to 125 FTHB or 25 annually. The objective for the 2021/2022 Program Year is 20 assisted households. Since the FTHB Program is available to renters living in the County and 13 cities it is not likely that funding would be allocated to four households living in the City when the grand total of households that could be assisted is 20 per year.

The 2021-2029 Housing Element reduces the objective to eight households, or one per year.

The objective represents 5% of the County objective for the unincorporated area and 13 cooperating cities.

The City was to have conducted targeted marketing to eligible homebuyers as part of the program. However, this action was not accomplished. The 6th Cycle Housing Element replaces this action with First Time Homebuyer Workshops to be conducted by the Fair Housing Council of Riverside County.

For the reasons stated above, Program 5 was not effective. The 6th Cycle Housing Element creates a new approach to informing the public of the homebuyer assistance program.

The Housing Survey revealed a high interest from the respondents in first time homebuyer information. Instead of the fifth cycle Housing Element’s target marketing program, the 2021- 2029 Housing Element recommends that the Fair Housing Council of Riverside County, Inc. conduct First Time Homebuyer Workshops. The Fair Housing Council periodically holds these Workshops in various locations in Riverside County. At the Workshops the Council will not only describe the “nus and bolts” of buying a home, but also how to apply for assistance from the County’s program.

PROGRAM 6: AFFORDABLE HOUSING INCENTIVES
Through this program, the City will encourage and support the development of rental projects that meet the needs of lower-income renters, extremely low-income households, seniors, and persons with disabilities, including developmental disabilities.

The incentives include, but are not limited to:
§ Providing site information for residential and mixed use developments § Offering technical assistance and information on City funding sources § Encouraging the use of density bonuses
§ Deferring, reducing and/or waiving development fees in order to facilitate the production of affordable housing.
§ Providing incentives and regulatory concessions
The quantified objective was one affordable housing development per year.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-7
The objective is overly ambitious given the limited funding allocated to the Inland Empire by the Low Income Housing Tax Credit Program and the fact that no developers have submitted to the City projects funded by Affordable Housing Sustainable Communities Program. (The Inland Empire includes the three counties of Riverside, San Bernardino and Imperial.) Many of the incentives, however, will contribute to the implementation of the Lift to Rise Program, which is a key program included in the 2021-2029 Housing Element.

For the reasons stated above, Program 6 was not effective. However, the incentives will contribute to implementation of the Lift to Rise program.

PROGRAM 7: ZONING ORDINANCE UPDATE
This Program is included in the 5th Cycle and 6th Cycle Housing Elements.

The City will undertake an update of the Zoning Ordinance to achieve consistency with the General Plan, encourage affordable and special needs housing, and conform to state law.

The City received Local Early Action Planning (LEAP) funds to complete the Zoning Ordinance Update.

Program 7 will be completed through the LEAP grant.

PROGRAM 8: MIXED-USE DEVELOPMENT
As part of a comprehensive General Plan update in 2019, the City will adopt two new mixeduse designations to encourage infill development at the City’s core that is compact and walkable, offers a mix of uses, and creates a sense of place. The City will also amend the Zoning Ordinance to include development standards and permitted uses for the mixed-use designations.

The City established three mixed-use zones on June 2, 2020, which are described below.

1. MU-N (Mixed-Use Neighborhood). The district is intended to provide local- and neighborhood-supporting mixed-use activity centers with maximum residential densities of 15 dwelling units per acre and/or nonresidential intensity with a maximum floor area ratio (FAR) of 1.0. Commercial retail uses are the primary uses allowed on the ground floor. Professional office and residential uses are also allowed, either integrated with a commercial use or as separate, free-standing use.

2. MU-C (Mixed-Use Corridor). The district is intended to provide higher-intensity, commercially oriented activity with maximum residential densities of 30 dwelling units per acre and/or maximum nonresidential intensities of 1.50 FAR. Residential development is allowed, either as part of a mixed-use project or as a freestanding use and are encouraged to be developed at the highest allowable density.

3. VS-M (Visitor-Serving Mixed). This district is intended to provide for areas appropriate for accommodations, goods, and services intended to serve primarily visitors to the City. Also allowed are detached and attached residential uses at a maximum density of 20 dwelling units per acre. Either commercial or residential development is allowed, but not concurrently on the same property.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-8
Multifamily, supportive and transitional housing are uses permitted by right in the three mixed use zones. These new zones can accommodate housing for special needs populations such as large households and persons experiencing homelessness. Mixed use development in these zones will bring jobs and services closer to homes and potentially benefit people with limited mobility such as the elderly and persons with disabilities. The MU-N zone with neighborhood-supporting mixed-use activity centers can especially benefit female headed households by providing amenities closer to homes and reducing transportation costs.

Program 8 was effective.

PROGRAM 9: WATER AND SEWER SERVICE PROVIDERS
This program was implanted following adoption by the City Council of the 2013-2021 Housing Element on July 7, 2021.

In accordance with Government Code Section 65589.7 as revised in 2005, the City delivered the adopted Housing Element to the Mission Springs Water District and the Coachella Valley Water District.

The Mission Springs Water District (MSWD) is the primary water service provider in Desert Hot Springs. The District’s service area encompasses 135 square miles including the City of Desert Hot Springs, 10 smaller communities in Riverside County, and communities in the City of Palm Springs.

Government Code Section 65589.7(a) requires:
§ Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households.
§ A public agency or private entity providing water or sewer services shall adopt written policies and procedures, not later than July 1, 2006, and at least once every five years thereafter, with specific objective standards for provision of services in conformance with this section
The two Districts are currently updating their Master Plans. The City staff has transmitted to the Districts the RHNA, draft Sites Inventory, and the locations of the lower income housing sites.

The City staff has informed the Districts that they are available to assist in the preparation of policies and procedures.

Program 9 was effective.

PROGRAM 10: SB 35 STREAMLINING INFORMATION
SB 35 requires cities and counties to streamline review and approval of eligible affordable housing projects by providing a ministerial approval process, exempting such projects from environmental review under the California Environmental Quality Act (CEQA). The City has not received any SB 35 development applications or inquiries. To accommodate any future Item Number: 7.

APPENDIX G PROGRESS REPORT
G-9
SB 35 applications or inquiries, the City will create and make available to interested parties an informational packet that explains the SB 35 streamlining provisions in Desert Hot Springs and provides SB 35 eligibility information.

Although the information packet was to be available by December 2020, it has not been prepared. The staff is planning to complete the information packet by December 2021.

The Community Development Department has been understaffed for 12 months. During this time the Director position has been filled for a period of only eight weeks. The less than full staffing has hindered the implementation of this and other programs.

For the reasons stated above, Program 10 was not effective.

PROGRAM 11: CODE ENFORCEMENT
Code enforcement is an important tool for maintaining the quality of residential neighborhoods. The City’s Code Enforcement Program involves the enforcement of all Municipal Codes and Ordinances, various State and local laws and health and Safety regulations as they relate to conditions or activity within the City. The primary method that the City uses to obtain code compliance is Voluntary Compliance. If this method does not attain compliance, then other actions are taken such as a Notice of Violation and Administrative Citation.

This program was implemented as the City continued to provide inspection services throughout the 5th Cycle planning period.

Program 11 was effective.

PROGRAM 12: HOUSING REPAIR AND REHABILITATION PROGRAMS
City residents and projects are eligible for two County funded programs:
§ Home Repair Loan Program (HRLP)
§ Senior Home Repair Grant (Program SHRG)
During the past eight years, the City continued to cooperate with the County in program implementation efforts. However, the targeted marketing program has not been completed.

City staff plans to complete the targeted marketing program by December 2021.

Contingent on funding availability, the program objective was to assist 10 households annually or 80 over an eight-year period. The objective is overly ambitious given the CDBG funding the County allocates to the program. The County’s annual goal ranges between 22 and 25 rehabilitated homes or less than 200 over an eight-year period. As noted earlier, the County’s service area includes the unincorporated area and 13 cities.

Program 12 was not effective.

The 2021-2029 Housing Element revised the objective to eight homes during the 2021-2029 planning period.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-10
PROGRAM 13: ABANDONED RESIDENTIAL PROPERTY REGISTRATION In 2008, the City Council adopted an ordinance establishing an Abandoned Residential Property Registration to address the negative impact of foreclosures on the community. The program requires lenders to maintain homes they seize, register the abandoned properties with the City, and hire local property management firms to prevent vacant homes from becoming neglected. While foreclosures in the City have dropped substantially from a high of 452 homes in 2010, to 28 homes in 2018. The City will continue overseeing the Abandoned Residential Property Registration Program as it prevents the City’s Code Enforcement department from spending limited resources to act as the property manager.

The program has been continuously implemented since 2008. By holding property owners and managers accountable for maintaining vacant homes in compliance with City standards, the program prevents negative impacts on the community such as squatting, maintains adequate housing and community conditions, and prevents loss of housing stock due to dilapidation. This program indirectly benefits special needs populations by maintaining the City’s housing stock and opportunities.

PROGRAM 14: AT-RISK HOUSING MONITORING
Housing Element law requires jurisdictions to provide an analysis and program for preserving the affordability of assisted housing developments at risk of converting to market rate housing.

Based on City records and information from the California Housing Partnership Corporation, in the next 10 years no assisted housing developments in Desert Hot Springs are at risk of losing their affordability status.

Although the City has not identified any housing units at risk of converting to market rate during the planning period, City staff will monitor the status of existing and future affordable housing.

Should any of the properties become at risk of converting to market rate, the City will work with property owners, interest groups, and the State and federal governments to conserve the affordable housing stock.

During the 2013-2021 period, the City monitored the nine affordable rental developments.

None of the developments are at risk of converting to market rate housing on or before 2031.

The program helps special needs populations by maintaining affordable housing supply and preventing loss of affordable rental units in the City.

Program 14 has been effective.

PROGRAM 15: FAIR HOUSING SERVICES
The City takes affirmative steps to promote fair housing practices by contracting the services of a non-profit organization to provide fair housing services in the City. The City works with the Fair Housing Council of Riverside County, Inc.(FHCRC) to provide fair housing services for residents and housing professionals.

The City will:
• Continue to refer cases and questions to the FHCRC for enforcement of prohibitions on discrimination in lending practices and in the sale or rental of housing. • Work to increase awareness of fair housing protections.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-11
• Make fair housing information available at City Hall, Chamber of Commerce, Senior Center, and the Public Library. The information will include brochures and other written information that will be obtained from the FHCRC. In addition, the City will make information available on its Website and provide links to additional resources.

The City has implemented the above three actions.

However, it should be noted that the “contract” is actually executed between the County and FHCRC. The City’s support for fair housing services and dissemination of relevant information and resources assists special needs populations in getting fair housing protections and avoiding or rectifying discrimination in housing processes.

PROGRAM 16: AFFIRMATIVELY FURTHER FAIR HOUSING
The City will promote and affirmatively further fair housing opportunities and promote housing for all persons including those protected by the California Fair Employment and Housing Act and any other state and federal fair housing and planning law. The City will:
• Provide equal access to housing for special needs residents such as people experiencing homelessness, elderly individuals, and persons with disabilities. • Promote the provisions of disabled-accessible units and housing for persons with mental and physical disabilities.
• Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements. • Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the Zoning Ordinance.
• Work with the County of Riverside to implement the Regional Analysis of Impediments to Fair Housing Choice and HUD consolidated plans.
• Facilitate public education and outreach by creating informational flyers on fair housing that will be made available at public counters, libraries, and on the City’s/County’s website.
• Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings.
• Ensure environmental hazards are analyzed and abated before developing affordable housing.
• Prioritize community and stakeholder engagement during controversial development decisions in and around low-income neighborhoods.

As a matter of policy, the City implements all the actions listed above. However, the City has not yet created the fair housing informational flyers. The City’s policy implementation to affirmatively further fair housing opportunities directly benefits special needs populations by preventing and eliminating discrimination and providing equal access and additional assistance to persons with disabilities and language barriers.

Program 16 has been partially effective. To assist the large Hispanic population and residents with their housing needs, the City has hired a Development Director that is bilingual in English and Spanish to help remove any language or cultural barriers during housing processes.

Item Number: 7.

APPENDIX G PROGRESS REPORT
G-12
Moving forward, the City will expand bilingual assistance on housing and development processes, including translating relevant regulatory and other materials such as comments and reviews into Spanish and hosting bilingual workshops on pre-approved ADU building plans and construction classes. These measures are intended to address housing needs and burdens experienced by Hispanic residents, a majority group in the City.

Item Number: 7.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 12, 2023
Luke Rainey, City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Dear Luke Rainey:

RE: City of Desert Hot Springs’ 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Desert Hot Springs’ (City) housing element adopted on November 1, 2022 and received for review on November 15, 2022 along with corrections received on January 11, 2023. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review.

HCD is pleased to find the adopted housing element in full compliance with State Housing Element Law (Article 10.6 of the Gov. Code). The adopted element was found to be substantially the same as the revised draft element that HCD’s review on September 6, 2022 determined met statutory requirements.

This finding of compliance is based on, among other things, the understanding and correction that vacant identified sites to accommodate the lower-income regional housing needs allocation (RHNA) were not identified in the two previous planning periods. These sites are not required to be rezoned within the first year of the planning period (Program 1.2) as required by Government Code section 65583.2, subdivision (c).

The City must continue timely and effective implementation of all programs including but not limited to the following:
• Program 2.3 (Affordable Housing Incentives)
• Program 2.4 (Regional Plan for Affordable Housing: Lift to Rise) • Program 2.6 (Extremely Low-Income)
• Program 3.1 (Zoning Ordinance Update)
• Program 3.3 (ADU Incentives)
• Programs 5.4 and 5.9 (Place-based Strategies)
• Program 5.6 (Displacement Risk)
Item Number: 7.

Luke Rainey, City Manager

The City must monitor and report on the results of these and other programs through the annual progress report, required pursuant to Government Code section 65400.

Please be aware, Government Code section 65585, subdivision (i) grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City now meets housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the hard work and dedication the City’s housing element team provided throughout the housing element review. HCD wishes the City success in implementing its housing element and looks forward to following its progress through the General Plan annual progress reports pursuant to Government Code section 65400.

If you have any questions or need additional technical assistance, please contact Claire Sullivan-Halpern, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Item Number: 7.

RESOLUTION NO. ___
A RESOLUTION OF THE CITY COUNTIL TO 1) FIND THE CITY’S PREVIOUS

DETERMINATION THAT THE PROJECT (THE HOUSING ELEMENT FOR THE 6 TH CYCLE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT STANDS, BECAUSE THE AMENDMENTS WILL NOT CHANGE

THE REASONS FOR THE EXEMPTION, WHICH ARE OUTLINED IN THE RESOLUTION; 2) ADOPT THE TEXT AMENDMENTS TO THE HOUSING ELEMENT FOR THE 6TH CYCLE (2021-2029), AND 3) DIRECT STAFF TO PROVIDE THE AMENDED HOUSING ELEMENT FOR THE 6TH CYCLE TO

THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, after a duly noticed public hearing, on May 26, 2020, the City Council adopted and approved a General Plan Update and an amendment to the General Plan Land Use Map to update the General Plan and re-designate several properties in the City, GPA 20-1 (the “General Plan Amendment”); and WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”), Public Resources Code Sections 21000, et seq., and its implementing regulations, California Code of Regulations Section 15000, et seq., (“CEQA Guidelines”), the City, acting as Lead Agency, reviewed and certified a draft Environmental Impact Report (State Clearinghouse number 2019080101) prepared for the proposed General Plan Amendment and determined that, following the implementation of certain mitigated measures; and
WHEREAS, as part of the General Plan, the City adopted its Housing Element for the Sixth Cycle; and
WHEREAS, on January 12, 2023, the City received approval from the State Department of Housing and Community Development (“HCD”) for the adopted housing element, finding it in full compliance with State Housing Element Law ; and WHEREAS, in the City’s discussion with HCD during the review period, the City and its consultant found an error and made one correction to the Element: that vacant inventory sites to accommodate the lower-income regional housing needs allocation (RHNA) were not identified in the two previous planning periods (Page C-13); and WHEREAS, these sites are therefore not required to be rezoned as provided in Program 1.2; and
Item Number: 7.

WHEREAS, the Housing Element is being amended to correct text regarding prior use of vacant sites, and to delete Program 1.2 (Page II-4), as it is no longer required, consistent with the letter of approval received on January 12, 2023; and WHEREAS, this text change is referred to herein as the “Project”; and WHEREAS, on March 14, 2023, the Planning Commission held a public hearing on the Project, which hearing was duly noticed and published; and WHEREAS, the Planning Commission recommended approval; and WHEREAS, Project has remained on the City’s website, and available for review and comment by the public since June 28, 2022; and WHEREAS, the City Council finds that this Resolution would promote the public interest, health, safety, convenience, or welfare of the City.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. CEQA FINDINGS
The City Council finds as follows:

1. The Project is exempt from the CEQA guidelines14 Cal. Code. Regs Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Resolution in question may have a significant effect on the environment as set forth in Section 21080.17 of the Public Resources Code.” The Project involves policies, programs, and actions to meet the City’s RHNA allocation that either would not cause a significant effect on the environment or incorporates actions that have already been taken by the City pursuant to General Plan Amendment, as defined below.

2. The Project is exempt pursuant to 14 Cal. Code. Regs Section 15162(a) of the CEQA Guidelines, once an EIR has been certified, no subsequent environmental review needs to be completed unless there are substantial changes in the project that warrant additional review. After a duly noticed public hearing, on May 26, 2020, the City Council adopted and approved a General Plan Amendment. Pursuant to the CEQA, Public Resources Code Sections 21000, et seq., and its implementing regulations, California Code of Regulations Section 15000, et seq., the City, acting as Lead Agency, reviewed and certified a draft Environmental Impact Report (State Clearinghouse number 2019080101) prepared for the proposed General Plan Item Number: 7.

Amendment and determined that, following the implementation of certain mitigated measures.

3. To the extent the Regional Housing Needs determinations are made, the Project is further exempt from the California Environmental Quality Act (“CEQA”) guidelines14 Cal. Code. Regs Section 15283, which provides, “CEQA does not apply to regional housing needs determinations made by the Department of Housing and Community Development, a council of governments, or a city or county pursuant to Section 65584 of the Government Code.”
Section 3. GENERAL PLAN CONSISTENCY FINDINGS
The City Council finds the Project is:

A. Internally consistent with the General Plan;
B. Would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

Section 4. ADOPTION
That the City Council approve the Project; Directing staff to mail the Project to HCD; and find the project exempt under the California Environmental Quality Act.

Section 5. SEVERABILITY
That, should any provision, section, paragraph, sentence or word of this resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

Section 6. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this Resolution are hereby repealed.

Section 7. CERTIFICATION
That the City Clerk shall certify to the passage of this Resolution and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a meeting held on April 4, 2023 by the following vote:

Item Number: 7.