Agenda — Indian Wells City Council, June 2, 2022 (part 2 of 3)

iO75 Legistar

File #: 098-22 Item #: N.

Based on these costs, Staff is requesting a supplemental appropriation of $20,500 to be added to the project from the City's Capital Improvement Fund to account. Sufficient funds are available in the Capital Improvement Fund account and any remaining funds will be transferred back to Fund balance.

City of Indian Wells

Page 2 of 2 ends

io76y Legistar

/ n dian We//s City Council
Staff Report - Finance June 2, 2022
Residential and Commercial Rates for Refuse Collection and Recycling Services and Annual Levy of Residential Parcels RECOMMENDED ACTI ON S:

Council OPENS the public hearing, takes any public testimony, CLOSES the public hearing; and
APPROVES the annual levy of residential parcels for refuse collection and recycling services; and
ADOPTS Resolution No. 2022-32 ordering the levy and collection of fees for refuse collection and recycling services from residential and commercial properties within the City pursuant to Indian Wells Municipal Code section 8.04.190.

DI SCUSSI ON:

Annually as required by law, the City Council must hold a Public Hearing and approve by Resolution the annual Residential and Commercial Rate for Refuse Collection and Recycling Services within the Oty of Indian Wells. The Oty Council is also required to approve the annual levy of residential parcels for refuse collection and recycling services. The approved levy is placed on the Riverside County tax roll for collection.

To comply with Proposition 218 requirements, a Public Hearing was properly noticed for the June 2, 2022 City Council meeting. The Public Hearing notice allows for public testimony regarding the proposed residential rate.

The levy for refuse collection and recycling services consists of three basic components:
the cost of service, disposal, and recycling. Service and recycling costs are fixed by the franchise agreement and can only be adjusted in strict accordance with the franchise agreement. The fee for disposal is a direct pass -through to customers based on the tipping fee that is charged by the County of Riverside at the landfill.

The City oversees a very accomplished and efficient city-wide recycling program using AB 939 recycling fees. This recycling fee, which was adopted in 1991, is used to cover 177

the costs of implementing a source reduction and recycling program designed to maintain Qty compliance with State mandated diversion goals.

Rubbish Services offered to Indian Wells Residents
Residential Services
Indian Wells provides backyard service to all residential households. Burrtec Waste Haulers collect the material from the customer's container storage location. Residents may use as many containers and/or bags as they wish. Recyclables do not have to be separated by type. Glass bottles/jars, paper, plastics, tin, aluminum, and cardboard are commingled in the recycling container.

Additional Services
The following services are free for residents; however, pick-up of these items is not automatic. Residents can call Burrtec at (760) 340-2113 to schedule a pickup.

Bulky Items
To dispose of large, bulky items that do not fit in the regular trash container, residents can simply contact Burrtec to schedule a Bulky Item Pick-up. Residents may place up to four items each week at the curb by 7:00 a.m. on their regular trash day.

Electronic Waste (E -Waste)
Electronics such as TVs, computers, phones, thermostats, and other gadgets are also dangerous to our environment if not managed properly. Burrtec will collect these items for recycling at no charge through their bulky item pick-up process.

Household Hazardous Waste (HHW)
Residents may call Burrtec for free at-home collection of Household Hazardous Waste.

The material should be placed near waste cans for collection.

Sharps Disposal
To safely dispose of needles and other medical "sharps," residents can collect the used instruments in a puncture -resistant container with a secure cap. Mark the container "Sharps". Once the container is full, contact Burrtec and they will arrange to collect the material.

Motor Oil
Residents may contact Burrtec at least 48 hours in advance of their regular service day to schedule a free pick-up of up to five gallons of used motor oil. 178

Christmas Trees
From December 26th through the second week of January, Burrtec will collect Christmas trees on the resident's regular trash collection day.

Document Shred Events
The City of Indian Wells offers two document shred events each year. These allow residents the opportunity to securely dispose of financial records, medical papers, and other sensitive documents. A mobile shredding unit on -site destroys these items. Events are held the last Saturday of January and the last Saturday of April at Burrtec's office at 41575 Eclectic Street, Palm Desert. Shredding starts at 7:00 a.m. and ends at 11:00 a.m.

Commercial Recycling Programs
Burrtec coordinates major residential, commercial, and organic recycling efforts on behalf of the City of Indian Wells. According to the latest diversion statistics, Cal - Recycle determined waste generation (to the County landfill) must come in at 21.5 pounds per Indian Wells residence per day or lower.

Thanks to significant recycling efforts, Indian Wells generates only 9.0 pounds per Indian Wells residence per day. This is an improvement over last year when residents generated 10.3 pounds per day.

Fl SCAL 1 M PACT:

Under the terms of the agreement, service rates adjust annually by 2% increase to residential and commercial through 2023 in addition to the annual percent change based on the Producer Price Index (PPI), however the total residential and commercial service adjustments shall not exceed the maximum cap of 5% in any given adjustment year.

Residential Rates
The annual levy of residential parcels for refuse collection and recycling services is $293.28 per parcel, an increase of $16.80 compared to the year. The new levy is effective from July 1, 2022 through June 30, 2023. The franchise agreement governs service and recycling costs. The proposed residential levy is as follows:
179

Residential Services
Tax Roll
Service Fee
Dump Fee
AB 939 Assessment
Recycling Fee
Home Hazardous Waste
.......................................................................

Total Monthly Fee
Total Annual Fee
Commercial Rates
Fy 2022/23 Fy 2021/22
Proposed Current Increase
Levy Levy Levy Direct Bill

12.79 12.18

4.02 3.66

0.61 0.36
Service Fee
. ................................

Dump Fee

0.53 0.53 - AB 939 Assessment

5.66 5.39 0.27 Recycling Fee

1.44 1.28 0.16 Home Hazardous Waste
Fy 2022/23 Fy 2021/22
Proposed Current Increase
Levy Levy Levy

13.97 13.30 0.67

4.02 3.66 0.36

0.53 0.53 -

5.66 5.39 0.27

1.44 1.28 0.16

24.44 23.04 1.40 Total Monthly Fee 25.62 24.16 1.46
293.28 276.48 16.80 Total Annual Fee 307.44 289.92 17.52 Commercial rates consist of three components: the service rate, tipping fees, and AB 939 recycling fees and are adjusted in accordance with the franchise agreement. Burrtec's commercial rate schedule is attached to this staff report.

Looking Forward - SB 1383 Impacts on Indian Wells Rubbish Rates In September 2016, Governor Edmund Brown Jr. set methane emissions reduction targets for California (SB 1383 Lara, Chapter 395, Statutes of 2016) in a statewide effort to reduce emissions of short-lived climate pollutants (SLOP).

Included within the statutory requirements to reduce organic waste disposal by 75 percent by 2025, is a mandate that CalRecycle's regulations include "requirements intended to meet the goal that not less than 20 percent of edible food that is currently disposed of is recovered for human consumption by 2025." The regulations are designed to achieve these organic waste reduction targets within the authority and direction provided in enabling statute.

The SB 1383 regulations require that jurisdictions conduct education and outreach on organics recycling to all residents, businesses (including those that generate edible food that can be donated) haulers, solid waste facilities, and local food banks and other food recovery organizations.

The complete cost to implement SB 1383 is not known at this time. Staff is working to complete a full SB 1383 implementation analysis by October 2022. Qty staff are collaborating with the waste hauler, Burrtec, to minimize any cost impacts to Indian Wells Residents. The more obvious cost saving options such as amortizing capital acquisition costs over a greater period are already implemented.

SB 1383 implementation cost impacts will be implemented into the fiscal year 2023-24 rubbish levy.
180

ATTACH M EN TS:

1. Resolution 2022-32

2. Rubbish Rates Schedules
181

ATTACHMENT #1
RESOLUTI ON NO. 2022-32

A RESOLUTI ON OF THE CI TY COUNCIL OF THE CI TY OF INDIAN

WELLS, CALI FORNI A, ORDERI NG THE LEVY AND COLLECTI ON OF

FEES FOR REFUSE COLLECTI ON AND RECYCLI NG SERVI CES FROM

RESI DENTI AL AND COM M ERI CAL PROPERTI ES WI TH I N THE CI TY

PURSUANT TO I N D I AN WELLS M U N I CI PAL CODE SECTI ON

8.04.190
WHEREAS, the City Council has heretofore adopted Chapter 8.04 of the Indian Wells Municipal Code establishing standards for the collection and disposal of refuse, trash, rubbish and other forms of solid waste; and
WHEREAS, the City Council has determined that the disposal and/or collection of refuse, trash, rubbish or other solid waste is a service to be performed in the Qty in accordance with the provisions of the Municipal Code; and WHEREAS, pursuant to Municipal Code Section 8.04.210 and California Public Resources Code Section 40059(a)(1) an exclusive franchise has been granted to Burrtec Waste and Recycling Services (the "Contractor") for the collection, transportation, recycling, composting and disposal of solid waste from residential, commercial, construction and industrial (roll -off) establishments within the City; and WHEREAS, Municipal Code Section 8.04.190 provides that the City Council shall establish by Resolution the schedule of residential and commercial fees that can be charged by the Contractor for solid waste collection, disposal and recycling services; and WHEREAS, California Public Resources Code Section 41901 authorizes the Qty to impose fees in amounts sufficient to pay the costs of preparing, adopting, implementing and administering local recycling and source reduction programs; and WHEREAS, the City has heretofore adopted and imposed an AB 939 Administrative Fee as part of the fees for refuse collection and recycling services paid annually by eligible parcels within the Qty; and
WHEREAS, the City Council desires to levy and collect residential and commercial fees to pay for Refuse Collection and Recycling Services rendered to eligible parcels within the Oty for the period commencing July 1, 2022 and ending June 30, 2023; and WHEREAS, the Oty Council has conducted a duly noticed public hearing on June 2, 2022 concerning the adoption of fees for refuse collection and recycling services, at the conclusion of which there was not a majority protest against the adoption of the proposed fees.
182

City of Indian Wells
Resolution 2022-32

Page 2 ends

NOW, THEREFORE, THE CI TY COUNCI L OF THE CI TY OF I NDI AN WELLS DOES HEREBY Fl ND, DETERMI NE, RESOLVE AND ORDER AS FOLLOWS:

SECTI ON 1. In all respects, the Recitals of this Resolution are true and correct.

SECTI ON 2. The annual fees for residential refuse collection and recycling services shall be $293.48 per parcel for those parcels which will be billed on the property tax roll, and otherwise for all other parcels of the rates set forth in Exhibit "A" attached hereto. The City Clerk and Finance Director are authorized and directed to request that the County place on residential property tax roles in the amount of $293.48 per parcel.

The annual fees set forth above shall be effective from and after the first day of July 1, 2022 through June 30, 2023 unless amended by Qty Council resolution prior to that date.

SECTI ON 3. The annual rates for commercial refuse collection and recycling services shall be as set forth in Exhibit "A" attached hereto. Commercial rates shall be paid by all applicable commercial customers within the City. The annual fees set forth above shall be effective from and after the first day of July 1, 2022 through June 30, 2023 unless amended by City Council resolution prior to that date.

SECTI ON 4. This Resolution shall take effect upon adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the aty of Indian Wells, California, at a regular meeting held on this 2nd day of June 2022.

DANA REED
MAYOR
183

City of Indian Wells
Resolution 2022-32

Page 3 ends

CERTI Fl CATI ON FOR RESOLUTI ON NO. 2022-32
I, Angelica Avila, Qty Clerk of the City Council of the City of Indian Wells, California DO HEREBY CERTI FY that the whole number of the members of the City Council is five (5); that the above and foregoing resolution was duly and regularly passed and adopted at an adjourned regular meeting of the City Council of the City of Indian Wells the 2nd day of June 2022, by the following vote:

AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELI CA AVI LA TODD LEI SHMAN

CI TY CLERK CI TY ATTORNEY
184

City of Indian Wells
Resolution 2022-32

Page 4 ends

EXHI BIT "A"
(Following this page)
185

City of Indian Wells
Rate Increase
Effective July 1, 2022
Residential Service
Proposed
2022-23
ATTACHMENT #2
SERVICE DUMP AB939 RECYCLING HHW MONTHLY
DESCRIPTION RATE FEE FUND SERVICE Fee CHARGE
TAX ROLL $12.79 $4.02 $0.53 $5.66 $1.44 $24.44
DIRECT BILL $13.97 $4.02 $0.53 $5.66 $1.44 $25.62

NEW START FEE

RE -START FEE

NSF / RETURNED CHECK FEE
$17.40
$26.09
$34.79
Bulky item collection per Item
Replacement recycling containers (2nd in 12 -month period) per occurrence Wheeled cart (purchase) per occurrence
$70.12
$34.05
$93.95
186

City of Indian Wells
Rate Increase
Effective July 1, 2022
Commercial Service
Proposed Rates
s
2022-23

COMMERCIAL RATES
2 YARD BIN SERVICE

PICK-UP PER WEEK

SERVICE
RATE
DUMP AB939 Trash
FEE FUND Rate
Recycle
Rate (1)
$84.79
$145.58
$206.27
$267.90
$327.56
$430.29
$57.15
1 2
3 4
5 6

EXTRA EMPTY PICK-UP
$84.79
$145.58
$206.27
$267.90
$327.56
$430.29
$57.15
$ 28.91
$ 57.88
$ 86.79
$ 115.74
$ 145.52
$ 170.83
$5.63 $
$11.26
$16.89
$21.92
$28.15
$33.77
Pull Out Fee
119.33
214.72
309.95
405.56
501.23
634.89

10.53 (1) Recycle Rate equal to service component of trash rate 3 YARD BIN SERVICE

PICK-UP PER WEEK
1 2
3 4
5 6

EXTRA EMPTY PICK-UP

SERVICE
RATE
$106.50
$181.80
$259.46
$330.72
$408.44
$483.01
$78.42
DUMP
FEE
$ 43.37
$ 86.79
$ 130.23
$ 173.57
$ 216.70
$ 260.40
AB939
FUND
$8.44
$16.89
$25.33
$33.77
$42.22
$50.66
Pull Out Fee
Trash
Rate
$ 158.31
$ 285.48
$ 415.02
$ 538.06
$ 667.36
$ 794.07
$ 10.53
(1) Recycle Rate equal to service component of trash rate Recycle
Rate (1)
$106.50
$181.80
$259.46
$330.72
$408.44
$483.01
$78.42
4 YARD BIN SERVICE

PICK-UP PER WEEK
1 2
3 4
5 6

EXTRA EMPTY PICK-UP

SERVICE DUMP

RATE FEE
$139.80 $ 57.88
$225.41 $ 115.74
$315.51 $ 173.57
$405.25 $ 231.01
$495.09 $ 289.01
$576.37 $ 346.89
$102.50 +
AB939
FUND
$11.26
$22.52
$33.77
$45.03
$56.29
$67.55
Pull Out Fee
Trash
Rate
$ 208.94
$ 363.67
$ 522.85
$ 681.29
$ 840.39
$ 990.81
$ 10.53
(1) Recycle Rate equal to service component of trash rate Recycle
Rate (1)
$139.80
$225.41
$315.51
$405.25
$495.09
$576.37
$102.50
6 YARD BIN SERVICE

PICK-UP PER WEEK

SERVICE
RATE
DUMP
FEE
AB939 Trash
FUND Rate
Recycle
Rate (1)
$191.64
$329.64
$472.06
$602.29
$744.83
$136.70
1 2
3 4
5 EXTRA EMPTY PICK-UP
$191.64 $ 83.17
$329.64 $ 166.32
$472.06 $ 249.51
$602.29 $ 332.66
$744.83 $ 553.88
$136.70 +
$29.05
$58.10
$87.15
$116.20
$165.44
Pull Out Fee
$ 303.86
$ 554.06
$ 808.72
$ 1,051.15
$ 1,464.15
$ 10.53
(1) Recycle Rate equal to service component of trash rate 187

City of Indian Wells
Rate Increase
Effective July 1, 2022
Commercial Service
Proposed
2022-23
COMPACTOR RATES (X3)
2 YARD BIN SERVICE SERVICE DUMP AB939 MONTHLY

PICK-UP PER WEEK RATE FEE FUND CHARGE
1 $254.37 $86.73 $16.89 $357.99
2 $436.74 $173.64 $33.78 $644.16
3 $618.81 $260.37 $50.67 $929.85
4 $803.70 $347.22 $65.76 $1,216.68
5 $982.68 $436.56 $84.45 $1,503.69
6 $1,290.87 $512.49 $101.31 $1,904.67
•EXTRA EMPTY PICK-UP $171.45 + Pull Out Fee $ 31.58
3 YARD BIN SERVICE SERVICE DUMP AB939 MONTHLY

PICK-UP PER WEEK RATE

FEE FUND CHARGE
1 2
3 4
5 6

EXTRA EMPTY PICK-UP
$319.50 $130.11 $25.32 $474.93
$545.40 $260.37 $50.67 $856.44
$778.38 $390.69 $75.99 $1,245.06
$992.16 $520.71 $101.31 $1,614.18
$1,225.32 $650.10 $126.66 $2,002.08
$1,449.03 $781.20 $151.98 $2,382.21
$235.26 + Pull Out Fee $ 31.59
4 YARD BIN SERVICE SERVICE DUMP AB939 MONTHLY

PICK-UP PER WEEK RATE

FEE FUND CHARGE
1 $419.40 $173.64 $33.78 $626.82
2 $676.23 $347.22 $67.56 $1,091.01
3 $946.53 $520.71 $101.31 $1,568.55
4 $1,215.75 $693.03 $135.09 $2,043.87
5 $1,485.27 $867.03 $168.87 $2,521.17
6 $1,729.11 $1,040.67 $202.65 $2,972.43
EXTRA EMPTY PICK-UP $307.50 + Pull Out Fee $ 31.59
188

City of Indian Wells
Rate Increase
Effective July 1, 2022
Roll Off Service
Proposed Rates
2022-23
PERMANENT ROLL OFF RATES (1 MONTH MIN. SERVICE -INCLUDES 3 EXCHANGES & LAST REMOVAL)

DESCRIPTION
20 YARD CONTAINER
30 YARD CONTAINER
40 YARD CONTAINER
LANDFILL AB939

SERVICE FEE FUND

RATE (PER TON) (PER LOAD)
$250.50 $ 65.59 $31.06
$250.50 $ 65.59 $46.59
$277.11 $ 65.59 $62.12
Landfill fees at cost plus franchise fee
•
COMPACTOR RATES (ONE MONTH MINIMUM SERVICE. INCLUDES 3 EXCHANGES & LAST REMOVAL)

DESCRIPTION
LANDFILL AB939

SERVICE FEE FUND

RATE (PER TON) (PER LOAD)
$495.62 $ 65.59 $62.12
$495.62 $ 65.59 $93.18
$569.74 $ 65.59 $124.24
20 YARD CONTAINER WI COMPACTOR
30 YARD CONTAINER W/ COMPACTOR
.40 YARD CONTAINER W/ COMPACTOR

OTHER CHARGES

LANDFILL FEE (PER TON)

EXTRA TRIP CHARGE

RELOCATION CHARGE

NEW START FEE

RE -START FEE

NSF / RETURNED CHECK FEE

RENTAL FEE
Concrete Washout - Pump
AMOUNT
$ 65.59
$ 95.14
$ 47.57
$ 15.63
$ 23.11
$ 31.71
$ 31.71
$ 124.52
189

City of Indian Wells
Rate Increase
Effective July 1, 2022
Commercial Service
Proposed Rates
Rates 2022-23

COMMERCIAL OTHER CHARGES AMOUNT
RE -START FEE $ 25.61
NEW START FEE $ 17.06
PULL-OUT CHARGE $ 44.89
COMMERCIAL BULKY ITEM PICK-UP PER ITEM $ 56.16
LOCKING CONTAINER CHARGE (CUSTOMER PROVIDES LOCK & KEY) $ 76.79 REPLACEMENT LOCKING BAR CHARGE $ 51.23
TEMP/CONSTRUCTION 3yd, per lift $ 165.53
TEMP/CONSTRUCTION 4yd, per lift $ 211.92
NSF / RETURNED CHECK $ 31.42
96 GALLON RECYCLING CONTAINER MONTHLY CHARGE, COMMERCIAL $ 15.81 35 GALLON RECYCLING CONTAINER MONTHLY CHARGE, COMMERCIAL $ 11.29 SATURDAY CHARGE PER BIN (SERVICE LESS THAN 4 DAYS PER WEEK) MONTHLY BILL $ 42.41 190

City of Indian Wells
Rate Increase
Effective July 1, 2022
Commercial Foodwaste Rates
Proposed Rates
2022-23
1-64 Gallon Cart
# Pick -Ups
Per week
1 2
3 4
5 2-64 Gallon Cart
# Pick -Ups
Per week
1 2
3 4
5 3-64 Gallon Cart
# Pick -Ups
Per week
1 2
3 4
5 4-64 Gallon Cart
# Pick -Ups
Per week
1 2
3 4
5 Recycling
Collection
Com ponent
$ 33.99
$ 67.99
$ 101.98
$ 135.99
$ 169.97
Material Franchise
Processing Fee
$ 33.99
$ 67.95
$ 101.94
$ 135.89
$ 169.88
Recycling
Collection Material
Component Processing
$ 54.39 $ 67.95
$ 108.80 $ 135.89
$ 163.18 $ 203.84
$ 217.58 $ 271.80
$ 272.01 $ 339.73
Recycling
Collection
Component
$ 71.40 $
$ 153.00 $
$ 214.19 $
$ 285.57 $
$ 356.97 $
Recycling
Collection
Com ponent
$ 81.59
$ 163.18
$ 244.79
$ 326.39
$ 407.99

12.00 23.99

35.99 47.98

59.97 Franchise
Fee
$ 21.59
$ 43.18
$ 64.77
$ 86.36
$ 107.95
AB -939
Fee

3.49 6.98

10.47 13.96

17.45 AB -939
Fee
$ 6.14
$ 12.28
$ 18.42
$ 24.56
$ 30.70
Material Franchise AB -939
Processing Fee Fee
101.94
203.84
305.78
407.68
509.63
Material
Processing
$ 30.59 $
$ 62.97 $
$ 91.76 $
$ 122.34 $
$ 152.93 $
Franchise
Fee
$ 135.89
$ 271.80
$ 407.68
$ 543.59
$ 679.48
$ 38.38
$ 76.76
$ 115.14
$ 153.53
$ 191.91

8.58 17.16

25.74 34.32

42.90 Total
Monthly
Rate
$ 83.47
$ 166.91
$ 250.38
$ 333.82
$ 417.27
Total
Monthly
Rate
$ 150.07
$ 300.15
$ 450.21
$ 600.30
$ 750.39
Total
Monthly
Rate
$ 212.51
$ 436.97
$ 637.47
$ 849.91
$ 1,062.43
Total
AB -939 Monthly
Fee Rate

10.61 $ 266.47

21.22 $ 532.96

31.83 $ 799.44

42.44 $ 1,065.95

53.05 $ 1,332.43
191

City of Indian Wells
Rate Increase
Effective July 1, 2022
Commercial Foodwaste Rates
Proposed Rates
Rates 2022-23
Additional Cart after
4 Carts Per Week
# of Carts
Per Pick -Up
1 2
3 4
5 Extra Pickup
# of Carts
Per Pick up
1 2
3 4
5 Recycling
Collection
Component
$ 18.85
$ 37.66
$ 56.58
$ 75.45
$ 94.31
Recycling
Collection
Component
$ 11.72
$ 21.09
$ 26.38
$ 35.15
$ 43.96
Material
Processing
$ 33.99
$ 67.95
$ 101.94
$ 135.89
$ 169.88
Material
Processing
$ 7.84
$ 15.69
$ 23.53
$ 31.39
$ 39.24
Franchise
Fee
$ 9.32
$ 18.64
$ 27.97
$ 37.30
$ 46.62
Franchise
Fee
$ 3.45
$ 6.49
$ 8.81
$ 11.74
$ 14.68
AB -939
Fee
$ 2.56 $
$ 5.11 $
$ 7.67 $
$ 10.23 $
$ 12.79 $
AB -939
Fee
$ 1.04 $
$ 1.94 $
$ 2.59 $
$ 3.45 $
$ 4.31 $
Total
Monthly
Rate

64.72 129.36
194.16
258.87
323.60
Total
Monthly
Rate

24.05 45.21

61.31 81.73
102.19
192

PPI Commodity Data
Original Data Value
Series Id: WPUFD49207
Not Seasonally Adjusted
Series PPI Commodity data for Final demand -Finished goods, not Title: seasonally adjusted
Group: Final demand
Item: Finished goods
Base 198200
Date:

Years: 2012 to 2022
Year
Jan
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 192.1 193.0 194.5 195.0 193.8 192.9 193.3 195.5 196.9 196.4 194.5 193.8 2013 194.9 196.4 196.7 196.0 196.9 197.3 197.3 197.9 197.3 196.9 196.1 196.5 2014 198.1 198.9 200.3 202.1 201.8 202.9 203.0 202.5 201.7 200.4 198.2 195.4 2015 192.2 192.6 193.6 193.1 196.0 197.7 197.4 196.3 193.4 192.4 191.6 190.1 2016 189.9 188.8 189.2 190.3 191.7 193.8 193.5 192.6 193.2 193.7 192.4 193.7 2017 195.4 196.0 196.3 198.0 197.0 197.8 197.6 198.4 199.6 199.4 200.4 199.9 2018 201.0 201.3 202.1 202.8 205.0 205.9 206.0 205.8 205.9 206.7 204.4 202.5 2019 201.8 202.4 204.9 207.1 207.6 206.9 207.4 206.4 205.7 206.3 206.4 206.0 2020 206.8 205.0 201.8 196.1 200.9 202.2 203.3 203.2 203.3 203.8 203.8 204.4 2021 207.6 210.1 213.8 215.1 218.4 221.8 223.455 224.950 227.240 229.686 230.954 229.343 2022 233.570 238.999
Change

25.97 12.51%
1 93/2022

Edom Hill Transfer Station
Application for 7/1/2022 Rate Adjustment
Proposed Rate Adjustment - Jul lst 2022
Additiona
Current I Cap 7/1/2021
Rate/Ton CPI Costs Rate/Ton
Transport Rate $ 10.40 (a) 8.59% $ 0.89 $ _ $ 11.29
Loading & Operating $ 6.49 (a) 8.59% $ 0.56 $ 7.05
Facility Fee $ 0.89 $ 0.89
Mitigation Fee $ 1.00 $ 1.00
Disposal Fee $ 32.71 (b) 8.59% $ 2.81 $ 35.52
Total Rate/Ton $ 50.40 8.45% $ 4.26 $ $ 55.75
(a) Dec 2021 CPI
(b) Pass -through of CPI on County Landfill Tipping Fee adjustment effective 7/1/22 194

/ n dian We//s City Council
Staff Repot — Finance
City Developer Fee Updates
RECOMMENDED ACTI ONS:

June 2, 2022
Finance Committee recommends Council AMENDS the City's Developer Fees as presented in the Development Impact Fee Nexus Study.

SUM MARY:

Development impact fees (DI Fs) are commonly imposed by local agencies on new developments as a precondition in the development application process. Revenues generated DI F programs must be used to fund the cost of the expanded capacity of public facilities and infrastructure necessary to mitigate the impacts of new development and assure that new developments pay for their share of capital costs associated with growth.

The City recently reviewed its collection of DI F fees ensuring that the fees are current and reflect the City's needs. The goal of the DI F study is to ensure the City is collecting the proper amount based on its updated needs. It is expected that some fees may increase while some fees decrease. Historically, the City has eliminated the collection of DI F fees when particular projects were completed.

Staff collaborated with a consultant (Willdan Financial Services) and the Desert Valley's Builders Association (DVBA) to develop the Development Impact Fee Nexus Study ("Nexus Study"). The DVBA provided significant guidance, review, practical oversight, and supports the Nexus Study as presented.

The Nexus Study is recommending that the Highway 111 fee be replaced with a Citywide transportation facilities fee, the public improvement facilities fee and the Parks/Quimby fee be lowered, the City resume collecting Storm Drain fees for future improvements, and the establishment of a new recreation facilities fee to expand capacity at the Indian Wells Golf Resort.

Overall, the City's recommended fees remain modest compared to other valley cities slightly above Rancho Mirage but far below La Quinta, Indio, Desert Hot Springs, and Coachella. City comparative data is included in Table (4) of this staff report. 195

The Finance Committee met on April 25, 2022 and on May 4, 2022 to review the DI F fees and has approved the Nexus Study as presented.

BACKGROU N D:

The legal requirements for the enactment of a development impact fee program are set forth in Government Code Sections 66000 through 66025 (also referred to as the "Mitigation Fee Act").

The City of Indian Wells currently imposes DI Fs for the following facility categories: Park- in -Lieu Fees, Citywide Public Improvements Fees, and Highway 111 Circulation Improvement Fees. The Qty also has an Art in Public Places fee, which is not being updated at this time. These fees are currently only charged to residential development in Indian Wells. The City's current fee schedule is shown in Table 1. The fees were established and or updated in 2003.

Table 1: Current Impact Fee Schedule
Park In -Lieu $1,896
Highway 101 Circulation Improvements 975
Citywide Public Improvement Fee 2,489
Total $5,360
Art in Public Places1 Varies
1 Fee is calculated case -by -case at 0.25% of construction valuation.

Since it has been some time since the fees were established, and they no longer generate sufficient revenue to fund new development's anticipated share of future capacity, expanding facility needs, it was determined that an update to the City's DI F Program was appropriate. The City subsequently entered into a Professional Services Agreement with Willdan Financial Services for completion of the Development Impact Fee Nexus Study to update the Qty's existing impact fee program and to investigate three new fees: a recreation facilities fee, a parkland acquisition fee for non -subdivision development, and a storm drain fee.
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DI SCUSSI ON:

The Nexus Study updates the City's existing impact fees based on the Qty's current level of service and investigates three new fees, a recreation facilities fee, a parkland acquisition fee for non -subdivision development and a storm drain fee. Depending on the fee category, the analysis uses either the existing standard methodology or the planned facilities methodology. Under the existing standard approach new development will fund the expansion of facilities at the same standard currently serving existing development.

The existing inventory method results in no facility deficiencies attributable to existing development. Under the planned facilities approach, the identified capacity expanding facilities drive the fee calculation. In this study the planned facilities approach was used for certain fee categories because the identified planned facilities represent a lower facility standard than is currently provided and new development will fully fund the planned facilities through the impact fees.

A summary of the analysis for each facility category is included below:

1. Park -in -lieu: This fee has been updated based on the current assumed cost of land acquisition per acre. It is a fee in -lieu of land dedication charged under the Quimby Act to new residential development occurring in a subdivision at a standard of 3.0 acres per 1,000 residents.

2. Parkland Acquisition: This fee is charged to residential development not occurring in a subdivision (i.e., development not subject to the park in -lieu fee) and hotel development to fund parkland acquisition at the City's existing parkland standard.

3. Recreation Facilities: The City has made considerable improvements to the City owned municipal golf course. As new development occurs the City will need to make additional, capacity expanding improvements to the golf course as demand for use of the facility increases. The recreation facilities fee is calculated so that new residential and hotel development contributes to capacity expanding improvements at the golf course at the same standard that existing development has contributed to date.

4. Transportation Facilities: This fee will replace the Highway 111 Circulation Improvement Fees. This fee will be charged Citywide to new residential and nonresidential development to fund capacity expanding transportation projects.

5. Citywide Public Improvements Fees: This fee is calculated so that new development funds capacity expanding public facilities related to general government and public safety functions.
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6. Storm drain facilities: As new development occurs it generates impervious surface, which then creates storm runoff. New storm drains are needed to mitigate the runoff created by the development. This fee was calculated to ensure that new development contributes to storm drain infrastructure at the same level of service that currently exists in the City today.

Table 2 displays the maximum justified impact fee schedule. The City Council can adopt fees at any level up to the fees shown in this table but cannot exceed these fee levels.

Table 2: Maximum Justified Impact Fee Schedule Summary
Quimby Citywide
Fee In -Lieu Public
Transportation of Land Parkland Recreation Improvement Storm Land Use Facilities Dedication' Acquisition2 Facilities Facilities Drains Residential - Fee per Dwelling Unit
Single Family $ 1,958 $ 1,667 $ 478 $ 3,630 $ 656 $ 292 Multifamily 1,312 858 246 1,869 338 111
Nonresidential - Fee per 1,000 Sq. Ft. or Hotel Room
Commercial $ 2,963 $ - $ - $ - $ 1,277 $ 55
Office 3,104 - 1,956 67
Hotel Room 1,129 482 3,666 335 61
Total - Total - Non -
Subdivisions Subdivisions
$ 8,203 $ 7,014
4,488 3,876
4,295
5,127
5,673
Charged to residential development in subdivisions.
2 Charged to hotels and residential development not occurring in subdivisions.

Sources: Tables 3.7, 4.7, 4.8, 5.6, 6.6 and 7.7.

M PACT FEE COM PARI SON
Willdan conducted a fee comparison survey to evaluate the maximum justified fees and recommended fee schedules for regional competitiveness. The survey summarizes the total impact fee burden for a single-family dwelling unit in Indian Wells and five other local jurisdictions. Only fees charged by the cities are shown in the table. Since some cities are served by local water and wastewater districts, impact fees for utilities have been separated from fees charged for all other facility types.

The City of Indian Well's current fee schedule was the lowest fee burden among all the cities surveyed. The maximum justified fee schedule supported by the Nexus Study falls within the range of the included cities. Table 4 displays the results of the survey. Figure 1 graphically summarizes the results of the survey and highlights Indian Wells' current, and maximum justified fee schedules.
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Table 4: Development Impact Fee Comparison - Single Family Detached Dwelling Unit Fee Category
Indian Wells
(Current)'
Indian Wells
(Maximum
Justified)
Desert Hot
Coachella Springs Indio La Quinta Rancho Mirage
Parks/Quimby
Recreation Facilities
Comm / Cultural
Bus Shelter
Aquatic Center
Library
General Government /
Public Facilities / Civic Center
Maintenance Facilities
Police
Transportation
Art in Public Places
Fire Facilities
Construction Tax
Infrastructure Undergrounding
Local Development Mitigation Fee
Storm Drain
Total
Utilities 2
Water
Sewer
Total
$ 1,896 $ 1,667 $ 9,537 $ 2,214 $ 4,227 $ 2,106 $
2,489
975
805
3,630
85 578
656 2,358
1,958
307
3,357
805 555
1,750
1,027
191
956
1,733
397 1,153
699 1,979 1,230 1,001
313
4,466 1,636 4,009 4,172
565
930
583 205 369 452
272
292 2,293 1,120
$ 6,165 $ 9,008 $ 18,527 $ 12,038 $ 10,097 $ 9,380 $
$ 3,948 $
4,142
$ 8,090 $
- $ 5,870 $
8,783
- $ 5,870 $ - $
1 Art in Public Places calculated based on .25 of 1% of valuation of the structure. Assumes valuation of $140 per square foot and 2,300 square foot unit. 2 Only includes utility impact/connection/capacity fees charged by cities. Local districts provide these services and charge fees if a City does not provide these services, 199

Single Family Dwelling Unit
Development Impact Fee Comparison
(Excludes Utilities)
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$-
Indian Wells (Current) Rancho Mirange Indian Wells La Quinta Indio Desert Hot Springs Coachella (Maximum Justified)
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CALI FORNI A ENVI RONMENTAL QUALI TY ACT (CEQA)
Adopting a nexus study and fee schedules do not constitute a "project" under CEQA pursuant to State CEQA Guidelines Section 15378(b)(4) because these actions involve the creation of a government funding mechanism which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. In addition, these actions are statutorily exempt from CEQA, under CEQA Guidelines Section 15273(a)(4), because these actions and documents are merely establishing fees to obtain funds for those capital projects necessary to maintain service within the City, and these actions do not provide for the creation of new service areas.

The capital projects described in the Nexus Study will maintain the level of service currently provided by the Qty.

Fl SCAL I M PACT:

The update to the City's DI F Program will provide the necessary revenue to fund the capital projects described in the Nexus Study to mitigate the impacts of new development, and to maintain the Oty's level of service for parks, transportation facilities, Citywide public facilities, recreation facilities and storm drains.

ATTACHMENTS:

1. Impact Fee Nexus Study

2. DVBA Letter of Support
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ATTACHMENT #1

CITY OF INDIAN WELLS

DEVELOPMENT IMPACT FEE NEXUS STUDY
FINAL
MAY 2, 2022

WI LLDAN

FINANCIAL SERVICES
Oakland Office
66 Franklin Street
Suite 300
Oakland, CA 94607
Tel: (510) 832-0899
Corporate Office
27368 Via Industria
Suite 200
Temecula, CA 92590
Tel: (800) 755-6864
Fax: (888) 326-6864
www.willdan.com
Other Regional Offices
Aurora, CO
Orlando, FL
Phoenix, AZ
Plano, TX
Seattle, WA
Washington, DC
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TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
Background and Study Objectives 3
Facility Standards and Costs 3
Use of Fee Revenues 4
Development Impact Fee Schedule Summary 4

1. INTRODUCTION 5
Study Objectives 5
Fee Program Maintenance 5
Study Methodology 5
New Development Facility Needs and Costs 6
Organization of the Report 7

2. GROWTH FORECASTS 8
Land Use Types 8
Impact Fees for Accessory Dwelling Units 8
Existing and Future Development 9
Occupant Densities 10

3. TRANSPORTATION FACILITIES 12
Trip Demand 12
Trip Demand Growth 13
Existing Transportation Facilities Inventory 14
Existing Level of Service 14
Planned Facilities 14
Cost Allocation 15
Fee Schedule 15

4. PARK FACILITIES 17
Service Population 17
Existing Park and Recreation Facilities Inventory 17
Parkland Unit Cost 17
Park Facility Standards 18
Facilities Needed to Accommodate New Development 18
Park Facilities Cost per Capita 19
Use of Fee Revenue 20
Fee Schedule 20

5. RECREATION FACILITIES 22
Service Population 22
Existing Facility Inventory 22
Planned Facilities 23
Cost Allocation 23

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Fee Revenue Projection 23
Fee Schedule 24

6. CITYWIDE PUBLIC IMPROVEMENT FEE 25
Service Population 25
Existing Facilities Inventory 26
Existing Level of Service 27
Planned Facilities 28
Cost Allocation 28
Fee Schedule 29

7. STORM DRAIN FACILITIES 30
Storm Drain Demand 30
EDU Generation by New Development 30
Existing Facilities Inventory 31
Existing Level of Service 31
Planned Facilities 32
Projected Fee Revenue 32
Fee Schedule 33

8. AB 602 REQUIREMENTS 34
Compliance with AB 602 34
66016.5. (a) (2) - Level of Service 34
66016.5. (a) (4) — Review of Original Fee Assumptions 34 66016.5. (a) (6) — Capital Improvement Plan 34

9. IMPLEMENTATION 36
Impact Fee Program Adoption Process 36
Inflation Adjustment 36
Reporting Requirements 36
Programming Revenues and Projects with the CIP 38

10. MITIGATION FEE ACT FINDINGS 39
Purpose of Fee 39
Use of Fee Revenues 39
Benefit Relationship 39
Burden Relationship 40
Proportionality 40

11. APPENDIX 41
ii
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Executive Summary
This report summarizes an analysis of development impact fees needed to support future development in the City of Indian Wells through 2040. It is the City's intent that the costs representing future development's share of public facilities and capital improvements be imposed on that development in the form of a development impact fee, also known as a public facilities fee. The public facilities and improvements included in this analysis are divided into the fee categories listed below:
• Transportation Facilities • Recreation Facilities
• Public Facilities • Storm Drain Facilities
• Park Facilities
Background and Study Objectives
The primary policy objective of a development impact fee program is to ensure that new development pays the capital costs associated with growth. Although growth also imposes operating costs, there is not a similar system to generate revenue from new development for services. The primary purpose of this report is to calculate and present fees that will enable the City to expand its inventory of public facilities, as new development creates increases in service demands.

The City collects public facilities fees under authority granted by the Mitigation Fee Act (the Act), contained in California Government Code Sections 66000 et seq. This report provides the necessary findings required by the Act for adoption of the fees presented in the fee schedules contained herein.

The City programs development impact fee -funded capital projects through its Capital Improvement Plan (CIP). Using a CIP allows the City to identify and direct its fee revenue to public facilities projects that will accommodate future growth. By programming fee revenues to specific capital projects, the City can help ensure a reasonable relationship between new development and the use of fee revenues as required by the Mitigation Fee Act.

Facility Standards and Costs
This study uses the existing inventory approach and the planned facilities standard approach to calculate facilities standards and allocate the costs of planned facilities to accommodate growth in compliance with the Mitigation Fee Act requirements in this study.

This existing inventory approach is based on a facility standard derived from the City's existing level of facilities and existing demand for services. This approach results in no facility deficiencies attributable to existing development. This approach is often used when a long-range plan for new facilities is not available. Future facilities to serve growth are identified through the City's CIP and budget process. This approach is used to calculate the park facilities, recreation facilities, and storm drain facilities fees.

The planned facilities approach allocates costs based on the ratio of planned facilities that serve new development to the increase in demand associated with new development. This approach is appropriate when specific planned facilities that only benefit new development can be identified, when the specific share of facilities benefiting new development can be identified, or when capacity expanding improvements represent a lower level of service than is currently provided.

This approach is used for the transportation facilities and public improvement facilities fees.

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Development Impact Fee Nexus Study
Use of Fee Revenues
Impact fee revenue must be spent on new facilities or capacity expansions to existing facilities, that benefit new development. Facilities can be generally defined as capital acquisition items with a useful life greater than five years. Impact fee revenue can be spent on capital facilities to serve new development, including but not limited to land acquisition, construction of buildings, construction of infrastructure, the acquisition of vehicles or equipment, information technology, software licenses and equipment.

In that the City cannot predict with certainty how and when development within the City will occur within planning horizon of this study, the City may need to update and revise the project lists funded by the fees documented in this study. Any substitute projects should be funded within the same facility category, and the substitute projects must still benefit and have a relationship to new development. The City could identify any changes to the projects funded by the impact fees when it updates the CIP. The impact fees could also be updated if significant changes to the projects funded by the fees are anticipated.

Development Impact Fee Schedule Summary
Table E.1 summarizes the development impact fees that meet the City's identified needs and comply with the requirements of the Mitigation Fee Act.

Table E.1: Maximum Justified Impact Fee Schedule Summary Land Use
Quimby Citywide
Fee In -Lieu Public
Transportation of Land Parkland Recreation Improvement Storm Facilities Dedication Acquisition2 Facilities Facilities Drains Total - Total - Non -
Subdivisions Subdivisions
Residential - Fee per Dwelling Unit
Single Family $ 1,958 $ 1,667 $ 478 $ 3,630 $ 656 $ 292 $ 8,203 $ 7,014 Multifamily 1,312 858 246 1,869 338 111 4,488 3,876
Nonresidential - Fee per 1,000 Sq. Ft. or Hotel Room
Commercial $ 2,963 $ - $ - $ - $ 1,277 $ 55 $ - $ 4,295 Office 3,104 1,956 67 - 5,127
Hotel Room 1,129 482 3,666 335 61 5,673
' Charged to residential development in subdivisions.
2 Charged to hotels and residential development not occurring in subdivisions.

Sources: Tables 3.7, 4.7, 4.8, 5.6, 6.6 and 7.7.
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1. Introduction
This report presents an analysis of the need for public facilities to accommodate new development in the City of Indian Wells. This chapter provides background for the study and explains the study approach under the following sections:

Study Objectives;
Fee Program Maintenance;
Study Methodology; and
Organization of the Report.

Study Objectives
The primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs associated with growth. The primary purpose of this report is to update the City's impact fees based on the most current available facility plans and growth projections. The maximum justified fees will enable the City to expand its inventory of public facilities as new development leads to increases in service demands.

Indian Wells is forecast to see moderate growth through this study's planning horizon of 2040.

This growth will create an increase in demand for public services and the facilities required to deliver them. Given the revenue challenges described above, Indian Wells has decided to continue to use a development impact fee program to ensure that new development funds its share of facility costs associated with growth. This report makes use of the most current available growth forecasts and facility plans to update the City's existing fee program to ensure that the fee program accurately represents the facility needs resulting from new development.

Fee Program Maintenance
Once a fee program has been adopted it must be properly maintained to ensure that the revenue collected adequately funds the facilities needed by new development. To avoid collecting inadequate revenue, the inventories of existing facilities and costs for planned facilities must be updated periodically for inflation, and the fees recalculated to reflect the higher costs. The use of established indices for each facility included in the inventories (land, buildings, and equipment), such as the Engineering News -Record, is necessary to accurately adjust the impact fees. For a list of recommended indices, see Chapter 9.

While fee updates using inflation indices are appropriate for annual or periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, it is recommended to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. For further detail on fee program implementation, see Chapter 9.

Study Methodology
Development impact fees are calculated to fund the cost of facilities required to accommodate growth. The six steps followed in this development impact fee study include:

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1. Estimate existing development and future growth: Identify a base year for existing development and a growth forecast that reflects increased demand for public facilities;

2. Identify facility standards: Determine the facility standards used to plan for new and expanded facilities;

3. Determine facilities required to serve new development: Estimate the total amount of planned facilities, and identify the share required to accommodate new development;

4. Determine the cost of facilities required to serve new development: Estimate the total amount and the share of the cost of planned facilities required to accommodate new development;

5. Calculate fee schedule: Allocate facilities costs per unit of new development to calculate the development impact fee schedule; and

6. Identify alternative funding requirements: Determine if any non -fee funding is required to complete projects.

The key public policy issue in development impact fee studies is the identification of facility standards (step #2, above). Facility standards document a reasonable relationship between new development and the need for new facilities. Standards ensure that new development does not fund deficiencies associated with existing development.

New Development Facility Needs and Costs
Several approaches can be used to identify facility needs and costs to serve new development.

This is often a two-step process: (1) identify total facility needs, and (2) allocate to new development its fair share of those needs.

The existing inventory method and planned facilities methods are use calculate the fees in this report.

Existing Inventory Method
The existing inventory method allocates costs based on the ratio of existing facilities to demand from existing development as follows:

Current Value of Existing Facilities
Existing Development Demand
Under this method new development will fund the expansion of facilities at the same standard currently serving existing development. The existing inventory method results in no facility deficiencies attributable to existing development. This method is often used when a long-range plan for new facilities is not available. Future facilities to serve growth are identified through a biennial CIP and budget process, possibly after completion of a new facility master plan. This method is used to calculate the park facilities, recreation facilities and storm drain facilities fees in this report.

Planned Facilities Method
= cost per unit of demand
The planned facilities method allocates costs based on the ratio of planned facility costs to demand from new development as follows:

Cost of Planned Facilities
New Development Demand
This method is appropriate when planned facilities will entirely serve new development, when a fair share allocation of planned facilities to new development can be estimated, or when capacity - $/unit of demand

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expanding improvements represent a lower level of service than is currently provided. This approach is used for the transportation facilities and public improvement facilities fees.

Organization of the Report
The determination of a public facilities fee begins with the selection of a planning horizon and development of growth projections for population and employment. These projections are used throughout the analysis of different facility categories and are summarized in Chapter 2.

Chapters 3 through 7 identify facility standards and planned facilities, allocate the cost of planned facilities between new development and other development, and identify the appropriate development impact fee for each of the following facility categories:
• Transportation Facilities • Recreation Facilities
• Public Facilities • Storm Drain Facilities
• Park Facilities
Chapter 8 describes how this nexus studies complies with the requirements of AB 602.

Chapter 9 details the procedures that the City must follow when implementing a development impact fee program. Impact fee program adoption procedures are found in California Government Code Sections 66016 through 66018.

The five statutory findings required for adoption of the maximum justified public facilities fees in accordance with the Mitigation Fee Act are documented in Chapter 10.

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2. Growth Forecasts
Growth projections are used as indicators of demand to determine facility needs and allocate those needs between existing and new development. This chapter explains the source for the growth projections used in this study based on a 2021 base year and a planning horizon of 2040.

Estimates of existing development and projections of future growth are critical assumptions used throughout this report. These estimates are used as follows:
• The estimate of existing development in 2021 is used as an indicator of existing facility demand and to determine existing facility standards. • The estimate of total development at the 2040 planning horizon is used as an indicator of future demand to determine total facilities needed to accommodate growth and remedy existing facility deficiencies, if any. • Estimates of growth from 2021 through 2040 are used to (1) allocate facility costs between new development and existing development, and (2) estimate total fee revenues.

The demand for public facilities is based on the service population, dwelling units or nonresidential development creating the need for the facilities.

Land Use Types
To ensure a reasonable relationship between each fee and the type of development paying the fee, growth projections distinguish between different land use types. The land use types for which impact fees have been calculated for are defined below. • Single family: Detached and attached one -unit dwellings (Includes single family homes and townhomes).
• Multifamily: All attached multifamily dwellings including duplexes and condominiums. Also includes detached units on multifamily zoned lots. • Commercial: All commercial, retail, educational, lodging, and service development. • Office: All general, professional, and medical office development. • Hotel: All places of lodging that provide sleeping accommodations, including resort hotels, business hotels, motels, bed and breakfast or similar lodging uses. Impact fees are charged by room, excluding common areas.

Some developments may include more than one land use type, such as a mixed -use development with both multifamily and commercial uses. In those cases, the facilities fee would be calculated separately for each land use type.

The City has the discretion to determine which land use type best reflects a development project's characteristics for purposes of imposing an impact fee and may adjust fees for special or unique uses to reflect the impact characteristics of the use. If a project results in the intensification of use, at its discretion, the City can charge the project the difference in fees between the existing low intensity use and the future high intensity use.

Impact Fees for Accessory Dwelling Units
The California State Legislature recently amended requirements on local agencies for the imposition of development impact fees on accessory dwelling units (ADU) with Assembly Bill AB 68 in 2021. The amendment to California Government Code §65852.2(f)(2) stipulates that local

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agencies may not impose any impact fees on ADU less than 750 square feet. ADU greater than 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit.

Calculating Impact Fees for Accessory Dwelling Units
For ADUs greater than 750 square feet, impact fees can be charged as a percentage of the single family impact fee. The formula is:

ADU Square Feet
x Single Family Impact Fee = ADU Impact Fee
Primary Residence Square Feet
In the case of an 800 square foot ADU and a 1,600 square foot primary residence, the impact fees would be 50 percent (800 square feet / 1,600 square feet = 50%) of the single family dwelling unit fee.

Existing and Future Development
Table 2.1 shows the estimated number of residents, dwelling units, employees, building square feet, hotel rooms and average daily hotel visitors in Indian Wells, both in 2021 and in 2040. The base year estimates of household residents and dwelling units comes from the California Department of Finance. Estimates of residents and dwelling units in 2040 are based on the Southern California Association of Government's (SCAG) 2016-2040 RTP/SCS Final Growth Forecast.

Base year employees were estimated based on the latest data from the US Census' OnTheMap application and exclude 186 local government (public administration) employees. Estimates of workers in 2040 are also based on the SCAG growth projections and are allocated to the land use categories based on the current proportion of workers in each general category.

Base year and projected hotel rooms were provided by the City for use in this analysis. Estimated annual occupancy and visitors per room per night were estimated by Willdan.

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Table 2.1: Existing and New Development
2021 2040 Increase
Residents 5,422 7,200 1,778
Dwelling Units2
Single Family 4,821 8,355 3,534
Multifamily 633 1,097 464
Total 5,454 9,452 3,998
Employment3
Commercial 2,788 5,862 3,074
Office 541 1,138 597
Total 3,329 7,000 3,671
Building Square Feet4
Commercial 776 2,325 1,549
Office 166 350 183
Total 942 2,675 1,732
Hotel Rooms 1,506 1,656 150
Average Daily Hotel Visitors5 1,536 1,689 153
1 Current population from California Department of Finance. Projection for 2040 based on SCAG RTP Growth Forecast.
2 Current values from California Department of Finance. Projection for 2040 based on SCAG RTP Growth Forecast of households, adjusted to all housing units using current DOF reported vacancy of 46.6%. Assumes same ratio of single family to multifamily w ill be maintained as development 3 Current estimates of primary jobs from the US Census' OnTheMap.

Projection based on SCAG RTP Grow th Forecast. Assumes current ratio among land uses w ill be maintained.
4 Estimated building square feet calculated based on employment estimates and density factors in Table 2.2. Excludes estimates of equivalent building square feet for accomodations w orkers w hose demand is captured in hotel rooms.
5 Daily hotel visitors assumes 60% annual occupancy and 1.7 visitors per room per night.

Sources: City of Indian Wells; California Department of Finance, Table E-5, 2021; 2016-2040 RTP/SCS Final Growth Forecast by Jurisdiction; OnTheMap Application, http://onthemap.ces.census.gov; Table 2.2, Willdan Financial Services.

Occupant Densities
All fees in this report are calculated based on dwelling units or building square feet. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee.

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Occupant densities (residents per dwelling unit or workers per building square foot) are the most appropriate characteristics to use for most impact fees. The fee imposed should be based on the land use type that most closely represents the probable occupant density of the development.

This conversion is done with average household size factors that vary by dwelling unit square footage, shown in Table 2.2. The residential density factors are based on data for Indian Wells from the 2019 U.S. Census' American Community Survey, the most recent data available. The nonresidential occupancy factors are derived from data from the Institute of Traffic Engineers Trip Generation Manual, 11th Edition. The hotel visitor factor was based on estimates of occupancy rates and average persons per stay by Willdan.

Table 2.2: Occupant Density Assumptions
Residential
Single Family 1.01 Residents Per Dwelling Unit
Multifamily 0.52 Residents Per Dwelling Unit
Nonresidential
Commercial 2.12 Employees per 1,000 square feet
Office 3.26 Employees per 1,000 square feet
Hotel 0.56 Employees per Room
Hotel 1.02 Average Daily Visitors per Room
Sources: U.S. Census Bureau, 2019 American Community Survey 5 -Year Estimates, Tables B25024 and B25033; ITETrip Generation Manual, 11th Edition; Willdan Financial Services.

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3. Transportation Facilities
This chapter details an analysis of the need for transportation facilities to accommodate new development. The chapter documents a reasonable relationship between new development and the impact fee for funding of these facilities. This fee will replace the Highway 111 Circulation Improvement Fee, which will be discontinued once this Citywide transportation facilities fee is adopted. Any fund balances remaining in the Highway 111 Circulation Improvement Fee fund must be spent on the purpose for which they were collected.

Trip Demand
The need for transportation facilities is based on the trip demand placed on the system by development. A reasonable measure of demand is the number of average daily vehicle trips, adjusted for the type of trip. Vehicle trip generation rates are a reasonable measure of demand on the City's system of street improvements across all modes because alternate modes (transit, bicycle, pedestrian) often substitute for vehicle trips.

The two types of trips adjustments made to trip generation rates to calculate trip demand are described below:
■ Pass -by trips are deducted from the trip generation rate. Pass -by trips are intermediates stops between an origin and a destination that require no diversion from the route, such as stopping to get gas on the way to work. ■ The trip generation rate is adjusted by the average length of trips for a specific land use category compared to the average length of all trips on the street system.

These adjustments allow for a holistic quantification of trip demand that takes trip purpose and length into account for fee calculation purposes.

Table 3.1 shows the calculation of trip demand factors by land use category based on the adjustments described above. Data is based on extensive and detailed trip surveys conducted in the Institute of Traffic Engineers (ITE) and by the San Diego Association of Governments (SANDAG). The trip rates come from ITE. The pass -by trip assumptions and trip length assumptions come from SANDAG. The surveys provide one of the most comprehensive databases available of trip generation rates, pass -by trips factors, and average trip length for a wide range of land uses.
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Table 3.1: Trip Rate Adjustment Factors
Primary Diverted
Trips1 Trips1
Total Average
Excluding Trip
Pass -by' Length2
Adjust-
ment
Factor3
ITE Category
PM Peak
Hour
Trips'
Trip
Demand
Factors
A B
C=A+B D
E=CxD
F
G=ExF
Residential
Single Family 86% 11%
97% 7.9

1.11 Single Family Housing (210)

1.00 1.11
Multifamily 86% 11%
97% 7.9

1.11 Apartment (220)

0.67 0.74
Nonresidential - per 1,000 Sq. Ft. or Hotel
Room
Commercial 47% 31%
78% 3.6

0.41 Shopping Center (820)

4.09 1.68
Office 77% 19%
96% 8.8

1.22 General Office (710)

1.44 1.76
Hotel 58% 38%
96% 7.6

1.06 Hotel (310)

0.60 0.64
Percent of total trips. Primary trips are trips w ith no midway stops, or 'links". Dive ted trips are linked trips w hose distance adds at least one mile to the primary trip. Pass -by trips are links that do not add more than one mile to the total trip. Based on SANDAG data. 2 In miles. Based on SANDAG data.
3 The trip adjustment factor equals the percent of non -pass -by trips multiplied by the average trip length and divided by the systemw ide average trip length of 6.9 riles.
'Trips per dw elling unit or per 1,000 building square feet. 5 The trip demand factor is the product of the trip adjustment factor and the trip rate.

Sources: San Diego Association of Governments, Brief Guide of Vehicular Traffic Generation Rates for the San Diego Region, April 2002; Institute of Traffic Engineers, Trip Generation, 11th Edition; Willdan Financial Services.

Trip Demand Growth
The planning horizon for this analysis is 2040. Table 3.2 lists the 2021 and 2040 land use assumptions used in this study. The trip demand factors calculated in are multiplied by the existing and future dwelling units and employment to determine the increase in trip demand attributable to new development.

Table 3.2: Land Use Scenario and Trip Demand
Trip
Demand
Residential Factor
Residential - Dwelling Units
Single Family 1.11
Multifamily 0.74
Subtotal
2021
Units/
KSF/Rooms Trips
4,821 5,351
633 471
5,454 5,822
Nonesidential - 1,000 Square Feet or Hotel Rooms
Commercial 1.68 776 1,304
Office 1.76 166 292
Hotel 0.64 1,506 964
Subtotal 2,560
Total
8,382

53.5%
Sources: Tables 2.1 and 3.1.

Growth 2021 to 2040
Units /
KSF/Rooms Trips
3,534 3,923
464 345
3,998 4,268
1,549
184
150
2,602
324
96 3,022
7,290

46.5%
Total - 2040
Units /
KSF/Rooms Trips
8,355 9,274
1,097 816
9,452 10,090
2,325
350
1,656
3,906
616
1,060
5,582
15,672
100%
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Existing Transportation Facilities Inventory
The City of Indian Wells has made many investments in its transportation infrastructure. Table

3.3 summarizes the book (depreciated) value of the City's existing transportation inventory as of 2021. See Appendix Table A.1 for full asset detail. As new development occurs, that development will need to fund these same types of facilities to ensure that the City can maintain its existing level of service. In total, the City owns $73.3 million worth of worth of transportation facilities.

Table 3.3: Existing Transportation Facilities Inventory 2021 Book
Value
Bridges $ 7,898,988
Street Curbs and Gutters 2,876,804
Citywide Infrastructure (Bike, Ped, Underground Utilities Etc.) 28,203,941 Paved Streets 33,428,210
Traffic Safety 858,798
Total $ 73,266,741
Source: City of Indian Wells, Depreciation Schedule for all Governmental Funds FY Ending 6/30/2021.

3.4Error! Reference source not found. expresses the City's current transportation facilities level of service in terms of an existing cost per trip. The existing facilities replacement cost is divided by the growth in trip demand from Table 3.2 to determine the cost per trip needed to maintain the existing level of service. This cost per capita is not used in the fee calculation, but rather demonstrates the cost per trip needed to maintain the current level of service. This is the maximum justified amount that can be charged through the impact fee.

Table 3.4: Existing Cost per Trip
Existing Facilities Inventory
Existing Trips
Cost per Trip
$73,266,741
8,382
$ 8,741
Sources: Tables 3.2 and 3.3.

Planned Facilities
The City must use transportation impact fee revenue to construct improvements that add capacity to the system of transportation facilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve

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new development. This revenue cannot be used to correct existing transportation facilities deficiencies.

The City's current transportation impact fee CIP is shown in Table 3.5. Projects that are rehabbing or retrofitting existing facilities have been excluded from this list. Only capacity expanding projects that benefit new development are eligible to be funded through impact fee revenue.

Table 3.5: Transportation Facilities CIP
Total Cost
Cook Street Phase II $ 1,125,000
Warner Trail Road Improvements 550,000
IWGR Sidewalk Improvements 150,000
Complete Streets 1,260,000
Fairway Sidewalk 87,000
Capacity Expanding Roadways 9,686,000
Total $12,858,000
Sources: City of Indian Wells Capital Improvement Ran FY 2021/22 to FY 2025/26; , Willdan Financial Services.

Cost Allocation
Rather than use the maximum justified cost per trip from Table 3.4 to drive the fee calculation, this analysis uses a lower cost per trip based on the capacity expanding transportation facilities CIP identified in Table 3.5 to drive the fee schedule calculations. The cost of capacity expanding improvements from Table 3.5 is divided by the increase in trips from Table 3.2 to determine the cost per trip that drives the fee calculation. Fees implemented at this level represent a facility standard that is lower than the existing facility standard. New development will fully fund the identified improvements through the impact fee. Projected fee revenue is equal to the total cost of the CIP. The planned facilities cost per trip calculation is displayed in Table 3.6.

Table 3.6: Planned Facilities Cost per Trip
Total Cost of Capacity Expanding CIP
Growth in Trips
Cost per Trip
$12,858,000
7,290
$ 1,764
Sources: Tables 3.2 and 3.5.

Fee Schedule
Table 3.7 shows the maximum justified transportation facilities fee schedule. The City can adopt any fee up to these amounts. The maximum justified fees are based on the cost per trip identified in Table 3.4. The cost per trip is multiplied by the trip demand factors in Table 3.1 to determine a fee per unit of new development.

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Table 3.7: Maximum Justified Transportation Facilities
Impact Fee Schedule
Land Use
A B C=AxB D=C/1,000
PM Peak
Hour Trip
Cost Per Demand Fee per
Trip Factor Total Feel Sq. Ft.

Residential - per Dwelling Unit
Single Family $ 1,764 1.11 $ 1,958
Multifamily 1,764 0.74 1,312
Nonresidential - per 1,000 Sq. Ft or Hotel Room
Commercial $ 1,764 1.68 $ 2,963 $ 2.96
Office 1,764 1.76 3,104 3.10
Hotel 1,764 0.64 1,129 n/a
1 Fee per dw elling unit, per 1,000 square feet of nonresidential or hotel room.

Sources: Tables 3.1 and 3.4.

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4. Park Facilities
The purpose of the park facilities impact fee is to fund the park facilities needed to serve new development. The maximum justified impact fee is presented based on the City's identified General Plan standard for parks.

Service Population
Park facilities in Indian Wells primarily serve residents and visitors. Therefore, demand for services and associated facilities is based on the City's residential plus visitor population. Table

4.1 shows the existing and future projected service population for park and recreation facilities.

Table 4.1: Park and Recreation
Facilities Service Population
Average
Daily Hotel
Residents Visitors Total
Existing (2021)
Growth (2021 to 2040)
Total (2040)
5,422
1,778
1,536 6,958
153 1,931
7,200 1,689 8,889
Source: Table 2.1.

Existing Park and Recreation Facilities Inventory
The City of Indian Wells maintains several park facilities throughout the city. Table 4.2 summarizes the City's existing parkland inventory in 2021. All facilities are located within the City limits. In total, the inventory includes a total of six acres of City -owned improved parkland, and 340 acres of City -owned golf course land.

Table 4.2: Parkland Inventory
Developed
Name Acres
Public Parks
Indian Wells Golf Course
Total - Parkland

6.00 340.00
346.00
Source: City of Indian Wells.

Parkland Unit Cost
Table 4.3 displays the unit costs necessary to acquire parkland in Indian Wells. The land cost assumption was based on data provided by the City and aligns with the City's recent land

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acquisition history. In total, the analysis assumes a land acquisition cost of $550,000 in Indian Wells.

Table 4.3: Park Facilities Unit Cost
Cost
Per Acre
Land Acquisition $ 550,000
Sources: City of Indian Wells.

Park Facility Standards
Park facility standards establish a reasonable relationship between new development and the need for expanded park facilities. The most common measure in calculating new development's demand for parks is the ratio of park acres per resident. This study uses the City's existing parkland standard of 0.86 acres per 1,000 capita to calculate a fee to be imposed under the Mitigation Fee Act on residential development not occurring in subdivisions and hotel rooms.

The City will also use the Quimby Act to impose a parkland dedication requirement on residential development in subdivisions. The Quimby Act would allow for a minimum standard of 3.0 acres of parkland per 1,000 residents to be used for parkland dedication and/or in lieu fee calculations if that standard was supported by an adopted standard in either a general or specific plan. The Quimby Act only applies to residential subdivisions.

Table 4.4: Facility Standards
Parks Golf Course
Developed Park Acreage
Service Population (2021)1
Existing Standard (Acres per 1,000 Capita)

6.00 340.00
6,958 6,958

0.86 48.86
Quimby Act Standard (Acres per 1,000 Residents) 3.00
1 Service population includes residents plus average daily hotel visitors.

Sources: Tables 4.1 and 4.2.

Facilities Needed to Accommodate New Development
Table 4.5 shows the parkland needed to accommodate new development at the existing standard and at the Quimby standard, respectively. To achieve the standards by the planning horizon, new development must fund the acquisition of between 1.66 and 5.33 acres of parkland. Depending on the amount of development subject to the Quimby Act, the cost total cost would range between $913,000 and $2.9 million.

The fee revenue would be higher if all development occurred in subdivisions because then that development would fund land acquisition at a higher standard. Non -subdivision development is only asked to fund parkland acquisition at the existing standard under the Mitigation Fee Act.

Since the exact amount of development that will be subject to the Quimby fees is unknown at this

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time, presents the range of total facility costs that may be incurred depending on the amount of development occurring in subdivisions.

Table 4.5: Park Facilities to Accommodate New Development Calculation Parkland
Total Range'
Subdivisions
Fee In -Lieu of Parkland Dedication (Quimby Act) 2
Facility Standard (acres/1,000 capita) A 3.00
Service Population Growth (2021 to 2040) 8 1,778
Facility Needs (acres) C =Ax B/1000 5.33
Average Unit Cost (per acre) D $ 550,000
Total Cost of Facilities
E =CxD $ 2,932,000
Non Subdivisions
Parkland Acquisition (Mitigation Fee Act) 3
Facility Standard (acres/1,000 capita) A 0.86
Service Population Growth (2021 to 2040) 8 1,931
Facility Needs (acres) C =A x B/1000 1.66
Average Unit Cost (per acre) D $ 550,000
Total Cost of Facilities E=CxD $ 913,000
$ 2,932,000
$ 913,000
Note: Totals have been rounded to the thousands.
1 Values in this column show the range of the cost of parkland acquisition and development should all development be either subject to the Quimby Act, or to the Mitigation Fee Act, respectively. 2 Cost of parkland to serve new development show n if all development is subject to the Quimby Act (Subdivisions of 50 units or more). Parkland charged at 3.0 acres per 1,000 residents for residential subdivions only. 3 Cost of parkland to serve new development show n if all development is subject to the Mitigation Fee Act. Parkland charged at the existing standard to all residential subdivions and hotel development.

Sources: Tables 4.1, 4.3, and 4.4.

Park Facilities Cost per Capita
Table 4.6 shows the cost per capita of providing new park facilities at the Quimby standard, and the existing facility standard. The cost per capita is shown separately for land acquisition at two different standards. The costs per capita in this table will serve as the basis of two fees:
• A Quimby Act Fee in -lieu of parkland dedication. This fee is payable by residential development occurring in subdivisions.
• A Mitigation Fee Act Fee for parkland acquisition. This fee is payable by residential development not occurring in subdivisions and hotel development.

A development project pays either the Quimby Act Fee in -lieu of land dedication, or the Mitigation Fee Act Fee for land acquisition, not both.

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Qty of Indian V bIIs Development Impact Fee Nexus Study Table 4.6: Park Facilities Cost per Capita
Land
Calculation Quimby Fee OR Impact Fee
Parkland Investment (per acre) A $ 550,000 $ 550,000
Existing Standard (acres per 1,000 capita) B 3.00 0.86
Total Cost Per 1,000 capita C =Ax B $ 1,650,000 $ 473,000 Cost Per Resident
D=C/1,000 $ 1,650 $ 473
Sources: Tables 4.3 and 4.4.

Use of Fee Revenue
The City plans to use Quimby in -lieu fee revenue to acquire parkland and to construct improvements to add to the system of park facilities that serves new development. The City plans to use park impact fee revenue to acquire parkland to serve new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. The City will program fee revenue to capacity expanding projects through its CIP and budget process.

Fee Schedule
To calculate fees by land use type, the investment in park facilities is determined on a per resident basis for parkland acquisition. These investment factors (shown in Table 4.6) are based on the assumed cost of land and the minimum Quimby Act standard, or the City's existing facility standard.

Table 4.7 shows the maximum justified fees in -lieu of parkland dedication based on the Quimby Act standard. The fees in this schedule only apply to residential subdivisions.

Table 4.7: Maximum Justified Quimby Fee
In -Lieu of Parkland Dedication
Land Use
A 8 C=AxB
Cost Per
Capita Density Total Feel
Single Family $ 1,650 1.01 $ 1,667
Multifamily 1,650 0.52 858
Fee per dw elling unit.

Sources: Tables 2.2 and 4.6.

Table 4.8 shows the maximum justified park facilities fees based on the existing standard per capita under the Mitigation Fee Act. The cost per capita is converted to a fee per dwelling unit using the occupancy density factors from Table 2.2. These fees apply to any residential development not occurring in a subdivision and hotel development.

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Table 4.8: Maximum Justified Parkland
Impact Fee Schedule
Land Use
A B C=AxB
Cost Per
Capita Density Total Feel
Residential
Single Family $ 473 1.01 $ 478
Multifamily 473 0.52 246
Nonresidential
Hotel Room2 $ 473 1.02 $ 482
Fee per dw elling unit or hotel room.
2 Hotel visitor density assumes 60% annual occupancy and 1.7 visitors per room per night.

Sources: Tables 2.2 and 4.6.

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5. Recreation Facilities
The purpose of this fee is to ensure that new development funds its fair share of recreation facilities. A fee schedule is presented based on the system standard of recreation facilities in the City of Indian Wells to ensure that new development provides adequate funding to meet its needs.

Service Population
Recreation facilities in Indian Wells primarily serve residents and visitors. Therefore, demand for services and associated facilities are based on the City's service population including residents and hotel visitors. Table 5.1 shows the existing and future projected service population for recreation facilities.

Table 5.1: Recreation Facilities Service
Population
Average
Daily Hotel
Residents Visitors Total
Existing (2021)
Growth (2021 to 2040)
Total (2040)
5,422
1,778
1,536 6,958
153 1,931
7,200 1,689 8,889
Source: Table 2.1.

Existing Facility Inventory
The City's recreation facilities inventory is comprised of numerous improvements at the City - owned Indian Wells Golf Resort. Table 5.2 displays the City's existing inventory of recreation facilities. The total insured value of these facilities is approximately $25 million.

Table 5.2: Existing Recreation Facilities Inventory
Facility Amount Units Unit Cost Value
Indian Wells Golf Resort
Clubhouse 68,940 Sq. Ft. $ 345 $ 23,774,100
Pavilion 5,600 Sq. Ft. 66 368,000
Fairway Grill 957 Sq. Ft. 225 215,200
Maintenance Building Sq. Ft. 502,850
Comfort Station 1 285 Sq. Ft. 250 71,200
Comfort Station 2 306 Sq. Ft. 243 74,500
Total $ 25,005,850
Sources: City of Indian Wells CJPIA Property Schedule, 2021; Willdan Financial Services. 22 W I LLDAN
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Planned Facilities
Table 5.3 summarizes the planned recreation facilities needed to serve the City, as identified by City staff. The City plans to conduct a golf course master plan to identify future facility needs and to undertake a solar efficiency project. The total cost of the identified facilities is $7.5 million.

Table 5.3: Planned Recreation Facilities
Cost
Golf Course Master Plan $ 180,000
Energy Efficiency Solar Project 7,300,000
Total $ 7,480,000
Source: City of Indian Wells.

Cost Allocation
Table 5.4 shows the calculation of the existing facilities standard per capita for public facilities.

This cost is calculated by dividing the total existing value of all recreation facilities by the existing service population.

Table 5.4: Existing Level of Service
Value of Existing Facilities
Existing Service Population
Facility Standard per Capita
$ 25, 005, 850
6,958
$ 3,594
Sources: Tables 5.1 and 5.2; Willdan Financial Services.

Fee Revenue Projection
The City plans to use recreation facilities fee revenue to construct improvements and acquire recreation facilities and equipment to add to the system of recreation facilities to serve new development. Table 5.5 details a projection of fee revenue, based on the service population growth increment identified in Table 5.1. The City should program recreation facilities fee revenue to capacity expanding projects through its CIP and budget process. 23 W I LLDAN
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Qty of Indian V bIIs Development Impact Fee Nexus Study Table 5.5: Revenue Projection
Cost per Capita
Growth in Service Population (2021 - 2040) 1,931
$ 3,594
Fee Revenue $ 6,940,000
Note: Total projected revenue rounded to the nearest thousand.

Sources: Tables 5.1, 5.3 and 5.4.

Fee Schedule
Table 5.6 shows the maximum justified recreation facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development based on dwelling unit and hotel room densities (persons per dwelling unit or average daily visitors per hotel room).

Table 5.6: Maximum Justified Recreation
Facilities Fee Schedule
Land Use
A B C=AxB
Cost Per
Capita Density Total Feel
Residential - per Dwelling Unit
Single Family $ 3,594 1.01 $ 3,630
Multifamily 3,594 0.52 1,869
Nonresidential
Hotel Room
$ 3,594 1.02 $ 3,666
1 Fee per dw elling unit or hotel room.

Sources: Tables 2.2 and 5.4; Willdan Financial Services.

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6. Citywide Public Improvement
Fee
The purpose of this fee is to ensure that new development funds its fair share of Citywide public facilities. A fee schedule is presented based on the existing standard of public facilities in the City of Indian Wells to ensure that new development provides adequate funding to meet its needs.

Service Population
Public facilities serve both residents, visitors, and businesses. Therefore, demand for services and associated facilities are based on the City's service population including residents, visitors, and workers.

Table 6.1 shows the existing and future projected service population for public facilities.

Residents and visitors are assumed to create an equal amount of demand for public facilities.

While specific data is not available to estimate the actual ratio of demand per resident to demand by businesses (per worker) for this service, it is reasonable to assume that demand for these services is less for one employee compared to one resident, because nonresidential buildings are typically occupied less intensively than dwelling units. The 0.31 -weighting factor for workers is based on a 40 -hour workweek divided by the total number of non -work hours in a week (128) and reflects the degree to which nonresidential development yields a lesser demand for public facilities.
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City of Indian V bIls Development Impact Fee Nexus Study Table 6.1: Citywide Public Improvement
Facilities Service Population
A B
Weighting
Persons Factor
AxB=C
Service
Population
Residents
Existing (2021) 5,422 1.00
New Development 1,778 1.00
Total (Buildout) 7,200
Workers
Existing (2021)
New Development
Total (Buildout)
3,329
3,671
7,000

0.31 0.31
5,422
1,778
7,200
1,032
1,138
2,170
Combined Residents and Weighted Workers
Existing (2021)
New Development
Total (Buildout)
6,454
2,916
9,370
1 Workers are w eighted at 0.31 of residents based on a 40 hour w ork week out of a possible 128 non -w ork hours in a w eek (40/128 = 0.31) Sources: Table 2.1; Willdan Financial Services.

Existing Facilities Inventory
The City's public facilities inventory is comprised of the City Hall, City Hall Fire Station, Police Substation, Emergency Operations Center, Corporation Yard, and Municipal Service Garage. The replacement cost of these facilities is based on the insured valuation of each facility. The land cost assumption was based on data provided by the City, aligns with the City's recent land acquisition history and is consistent with other chapters in this report. In total the City owns approximately $12.5 million worth of public facilities. Table 6.2 displays the City's existing inventory of public facilities.
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Qty of Indian V bIls Development Impact Fee Nexus Study Table 6.2: Existing Citywide Public Improvement Facilities Inventory Replacement
Inventory Units Unit Cost Cost
Land
City Hall
Subtotal

6.30 acres $550,000 $ 3,465,000
$ 3,465,000
Buildings
City Hall 13,975 sq. ft. $ 382 $ 5,343,100
City Hall Fire Station 8,002 sq. ft. 241 1,931,400
Police Substation and EOC 1,444 sq. ft. 223 322,500
Public Works Corparate Yard 3,285 sq. ft. 149 488,600
Public Works Corparate Yard Storage 1,407 sq. ft. 30 41,800 Municipal Service Garage 7,800 sq. ft. 92 718,300
Subtotal $ 8,845,700
Vehicles and Equipment
Mobile Equiment $ 198,479
Subtotal $ 198,479
Total Value - Existing Facilities $ 12,509,179
Sources: City of Indian Wells CJPIA Property Schedule, 2021; Willdan Financial Services.

Existing Level of Service
Per the new nexus study requirements that went into effect of January 1, 2022, a nexus study "shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate." Table 6.3 expresses the City's current public facilities level of service in terms of an existing cost per capita.

This cost per capita is not used in the fee calculation, rather it is shown here for informational purposes only.

Table 6.3: Citywide Public Improvement
Facilities Existing Standard
Value of Existing Facilities
Existing Service Population
Cost per Capita
Facility Standard per Resident
Facility Standard per Worker
$ 12,509,179
6,454
$ 1,938
$ 1,938
601
1 Based on a w eighing factor of 0.31.

Sources: Tables 6.1 and 6.2.

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Planned Facilities
The City must use public improvement facilities impact fee revenue to construct improvements that add capacity to the system of public improvement facilities that serves new development.

The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. This revenue cannot be used to correct existing facilities deficiencies.

The City's current public improvement impact fee CIP is shown in Table 6.4. Only capacity expanding projects that benefit new development are eligible to be funded through impact fee revenue.

Table 6.4: Public Improvement Facilities CIP
Total Cost
Maintenance Yard Redesign $ 130,000
New Vehicle for Additional Public Works Employee 30,000 License Readers 220,000
Public Safety Access 700,000
Maintenance Yard Ground Material 320,000
Maintenance Yard Storage Building 415,000
Fire Station Bay Improvements 80,000
Total $1,895,000
Sources: City of Indian Wells Capital Improvement Ran FY 2021/22 to FY 2025/26; Willdan Financial Services.

Cost Allocation
Rather than use the maximum justified cost per capita from Table 6.3 to drive the fee calculation, this analysis uses a lower cost per capita based on the capacity expanding public improvement facilities CIP identified in Table 6.4 to drive the fee schedule calculations. The cost of capacity expanding improvements from Table 6.4 is divided by the increase in service population from Table 6.1 to determine the cost per capita that drives the fee calculation. Fees implemented at this level represent a facility standard that is lower than the existing facility standard. New development will fully fund the identified improvements through the impact fee. Projected fee revenue is equal to the total cost of the public improvement facilities CIP. The planned facilities cost per capita calculation is displayed in Table 6.5.
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Table 6.5: Planned Facilities Cost per Capita
Value of Planned Facilities Allocated to New $ 1,895,000 Growth in Service Population (2021 to 2040) 2,916
Cost per Capita
Cost Allocation per Resident
Cost Allocation per Worker
$ 650
$ 650
201
1 Based on a w eighting factor of 0.31.

Sources: Tables 6.1 and 6.6.

Fee Schedule
Table 6.6 shows the maximum justified public facilities fee schedule. The City can adopt any fee up to this amount. The cost per capita is converted to a fee per unit of new development based on dwelling unit and employment densities (persons per dwelling unit or employees per 1,000 square feet of nonresidential building space, or per hotel room).

Table 6.6: Maximum Justified Citywide Public
Improvement Facilities Fee Schedule
Land Use
A B C=AxB D=C/1,000
Cost Per Fee per
Capita Density Total Feel Sq. Ft.

Residential - per Dwelling Unit
Single Family $ 650 1.01 $ 656
Multifamily 650 0.52 338
Nonresidential - per 1,000 Sq. Ft. or Hotel Room
Commercial $ 601 2.12 $ 1,277 $ 1.28
Office 601 3.26 1,956 1.96
Hotel Room 601 0.56 335 n/a
1 Fee per dw elling unit, per 1,000 square feet of nonresidential or per hotel room.

Sources: Tables 2.2 and 6.3.

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7. Storm Drain Facilities
This chapter summarizes an analysis of the need for storm drain facilities to accommodate growth within the City of Indian Wells. This chapter documents a reasonable relationship between new development and a storm drain fee to fund storm drain facilities that serve new development.

Storm Drain Demand
Most new development generates storm water runoff that must be controlled through storm drain facilities by increasing the amount of land that is impervious to precipitation. Table 7.1 shows the calculation of equivalent dwelling unit (EDU) demand factors based on impervious surface coefficient by land use category. The impervious surface coefficients are based on from California Environmental Protection Agency data. EDU factors relate demand for storm drain facilities in terms of the demand created by a single-family dwelling unit.

Table 7.1: Storm Drain Facilities Equivalent Dwelling Units A 8 C = (43,560 /A) x B
Average Impervious
DU or 1,000 Percent Square feet per
Sq. Ft. per Impervious DU or 1,000 Sq.
acre per Acre Ft.

D = C / Single Family
Equivalent
Dwelling Unit
(EDU)2
Residential - per Dwelling Unit
Single Family
Multifamily

3.00 12.00
Nonresidential - per 1,000 Sq. Ft. or Hotel Room
Commercial
Office
Hotel Room

32.67 21.78

30.00 41% 5,953
62% 2,251
86%
69%
86%
1,147
1,380
1,249

1.00 0.38

0.19 0.23

0.21 1Dw elling units for residential and thousand building square feet for non-residential. Nonresidential densities are based on floor -area -ratio of 0.75 for commercial and 0.70 for office. 2 EDUs per dwelling unit for residential development and per thousand square feet for nonresidential development.

Sources: City of Indian Wells General Flan; User's Guide for the California Impervious Surface Coefficients, Office of Environmental Health Hazard Assessment California Environmental Protection Agency, December 2010.Willdan Financial Services.

EDU Generation by New Development
Table 7.2 shows the estimated EDU generation from new development through 2040. New development will generate approximately 4,080 new EDUs, representing 42.3 percent of total storm drain demand in 2040.

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2021
Units/

EDU KSF/
Factor Rooms EDUs
Residential - per Dwelling Unit
Single Family 1.00 4,821 4,821
Multifamily 0.38 633 241
Subtotal 5,454 5,062
Nonresidential - per 1,000 Sq. Ft. or Hotel Room
Commercial 0.19 776 147
Office 0.23 166 38
Hotel Rooms 0.21 1,506 316
Subtotal 501
Total
5,563

57.7%
Sources: Tables 2.1 and 7.1.

Growth 2021 to 2040
Units/
KSF/
Rooms EDUs
3,534 3,534
464 176
3,998 3,710
1,549 295
184 43
150 32
370
4,080

42.3%
Tota I - 2040
Units/
KSF/
Rooms EDUs
8,355 8,355
1,097 417
9,452 8,772
2,325 442
350 81
1,656 348
871
9,643
100%
Existing Facilities Inventory
The City of Indian Wells has made many investments in its storm drain infrastructure. Table 7.3 summarizes the book (depreciated) value of the City's existing storm drain inventory as of 2021.

See Appendix Table A.1 for full asset detail. As new development occurs, that development will need to fund these same types of facilities to ensure that the City can maintain its existing level of service. In total, the City owns $1.6 million worth of worth of storm drain facilities.

Table 7.3: Existing Storm Drain
Facilities Inventory
2021 Book
Value
Storm Drains $ 1,624,591
Total $ 1,624,591
Source: City of Indian Wells, Depreciation Schedule
for all Governmental Funds FY Ending 6/30/2021.

Existing Level of Service
Per the new nexus study requirements that went into effect of January 1, 2022, a nexus study "shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate." Table 7.4 expresses the City's current storm drain facilities level of service in terms of an existing cost per EDU. New development will fund storm drain facilities at the same level of service that existing *W I LLDAN
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development has funded to date. This cost per EDU will drive the fee calculation for this facility category.

Table 7.4: Existing Facilities Cost per EDU
Value of Existing Storm Drains $ 1,624,591
Existing EDUs 5,563
Cost per EDU $ 292
Sources: Tables 7.2 and 7.3.

Planned Facilities
Table 7.5 identifies the planned storm drain facilities that are eligible to be funded by the fee. The capacity expanding storm drain facilities were all identified in the City's 2021-22 CIP. Projects that are rehabbing or retrofitting existing facilities have been excluded from this list. Note that the projects shown in the CIP are not intended to be fully funded with storm drain facilities impact fee revenue; rather, they are capacity expanding projects that are eligible for impact fee revenue. The exact amount of impact fee revenue programmed to a given project will be determined though the City's capital planning process.

Table 7.5: Storm Drain Capital Improvements
Total Cost
Trash Capture Devices $ 69,000
Update Drainage Master Plan 187,500
Hwy 111 Drainage Improvements 70,000
Fairway Dr. Drainage Improvements 50,000
Channel Lining Improvements 2,300,000
Total $ 3,212,261
Sources: City of Indian Wells Capital Improvement Ran FY 2021/22 to FY 2025/26; Willdan Financial Services.

Projected Fee Revenue
The City plans to use storm drain facilities fee revenue to construct improvements and infrastructure to add to the system of storm drain facilities to serve new development. Table 7.6 details a projection of fee revenue, based on the EDU growth increment identified in Table 7.2.

The City will program storm drain facilities fee revenue to capacity expanding projects through its CIP and budget process.

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Table 7.6: Projected Fee Revenue
Cost per EDU $ 292
Growth in EDUs 4,080
Total Projected Fee Revenue $ 1,191,360
Sources: Tables 7.2 and 7.4.

Fee Schedule
The maximum justified fee for storm drain facilities is shown in Table 7.7. The City can adopt any fee up to this amount. The cost per EDU from Table 7.4 is converted to a fee per unit of new development based on the EDU factors shown in Table 7.1.

Table 7.7: Maximum Justified Storm Drain Facilities
Fee Schedule
A B C=AxB D=C/1,000
Cost Per Total Fee per
EDU EDU Feel Sq. Ft.

Residential - per Duelling Unit
Single Family $ 292 1.00 $ 292
Multifamily 292 0.38 111
Nonresidential - per 1,000 Sq. Ft. or Hotel Room
Commercial $ 292 0.19 $ 55 $ 0.06
Office 292 0.23 67 0.07
Hotel Room 292 0.21 61 n/a
'Fee per dw elling unit, per 1,000 square feet of nonresidential or per hotel room.

Sources: Tables 7.1 and 7.4.
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8. AB 602 Requirements
On January 1, 2022, new requirements went into effect for California jurisdictions implementing impact fees. Among other changes, AB 602 added Section 66016.5 to, the Government Code, which set guidelines for impact fee nexus studies. Three key requirements from that section which concern the nexus study are reproduced here:
66016.5. (a) (2) When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate.
66016.5. (a) (4) If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee.
66016.5. (a) (6) Large jurisdictions shall adopt a capital improvement plan as a part of the nexus study.

Compliance with AB 602
The following sections describe this study's compliance with the new requirements of AB 602. 66016.5. (a) (2) - Level of Service
Park facilities, recreation facilities, and storm drain facilities fees are calculated under the under the existing standard methodology, which means that the fees are calculated such that new development funds facilities at the existing level of service. The existing level service in terms of the existing facility investment per demand unit is shown in each corresponding chapter.

Fees to fund transportation facilities, and Citywide public improvement facilities are calculated using the planned facility standard at a lower level of service than currently exists. New development will fully fund the identified improvements through the impact fees. 66016.5. (a) (4) — Review of Original Fee Assumptions
The original fee schedules and corresponding revenue generated were reviewed by the City and Willdan prior to conducting the nexus study analysis. The current fee schedule did not generate sufficient revenue to fully fund new development's share of future needed facilities.

Table 8.1 displays annual fee revenue collected, by impact fee fund.

Table 8.1: Annual Collected Impact Fee Revenue
FY Ending: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Prior Years Park In -Lieu Fee Revenue $ 40,194 $ 82,504 $ 49,168 $ 40,376 $ 41,856 $2,022,164 Citywide Public Improvement Fee 79,648 151,829 104,538 82,137 82,137 5,685,576 Highway 111 Circulation Improvement Fee - - 1,950 - 193,278 Source: City of Indian Wells.
66016.5. (a) (6) — Capital Improvement Plan
The Capital Improvement Plan for this nexus study is comprised of the identified planned facilities within each facility fee chapter. Planned facilities identified in this document are sourced from the

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9. Implementation
Impact Fee Program Adoption Process
Impact fee program adoption procedures are found in the California Government Code section 66016. Adoption of an impact fee program requires the City Council to follow certain procedures including holding a public hearing. Data, such as an impact fee report, must be made available at least 30 days prior to the public hearing. The City's legal counsel should be consulted for any other procedural requirements as well as advice regarding adoption of an enabling ordinance and/or a resolution. After adoption there is a mandatory 60 -day waiting period before the fees go into effect.

Inflation Adjustment
The City can keep its impact fee program up to date by periodically adjusting the fees for inflation.

Such adjustments should be completed regularly to ensure that new development will fully fund its share of needed facilities. We recommend that the California Construction Cost Index ( https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real-Estate-Services-Division- Resources-List-Folder/DGS-California-Construction-Cost-Index-CCCI) be used for adjusting fees for inflation. The California Construction Cost Index is based on data from the Engineering News Record and is aggregated and made available for free by the State of California.

The fee amounts can be adjusted based on the change in the index compared to the index in the base year of this study (2022).

While fee updates using inflation indices are appropriate for periodic updates to ensure that fee revenues keep up with increases in the costs of public facilities, the City will also need to conduct more extensive updates of the fee documentation and calculation (such as this study) when significant new data on growth forecasts and/or facility plans become available. Note that decreases in index value will result in decreases to fee amounts.

Reporting Requirements
The City will comply with the annual and five-year reporting requirements of the Mitigation Fee Act. For facilities to be funded by a combination of public fees and other revenues, identification of the source and amount of these non -fee revenues is essential. Identification of the timing of receipt of other revenues to fund the facilities is also important.

Table 9.1 summarizes the annual and five-year reporting requirements identified in the Mitigation Fee Act.
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Table 9.1: Mitigation Fee Act - Annual and Five-year Administrative Requirements CA Gov't Code
Section
Timing
Reporting Requirements'
Recommended
Fee Adjustment
66001.(d)
The fifth fiscal year following the
first deposit into the account or
fund, and every five years
thereafter
(A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements.
(D) Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund.

Comprehensive
Update
66006. (b)
Within 180 days after the last
day of each fiscal year
(A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.
(C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected and the interest earned. (E) An identification of each public improvement on which fees were expended including share funded by fees.
(F) An identification of an approximate date by which the construction of the public improvement will commence.
(G) A description of any potential interfund transfers. (H) The amount of refunds made (if any).

Inflationary
Adjustment
1 Edited for brevity. Refer to the government code for full description.

Sources: California Government Code §6601 and §6606.
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Programming Revenues and Projects with the CIP
The City maintains a Capital Improvement Program (CIP) to plan for future infrastructure needs.

The CIP identifies costs and phasing for specific capital projects. The use of the CIP in this manner documents a reasonable relationship between new development and the use of those revenues.

Impact fee revenues must be sent on capacity expanding projects that benefit new development.

Impact fee revenues cannot be used to correct existing deficiencies or on projects that do not serve new development.

The City may decide to alter the scope of the planned projects or to substitute new projects if those new projects continue to represent an expansion of the City's facilities and provide benefit to new development. If the total cost of facilities varies from the total cost used as a basis for the fees, the City should consider revising the fees accordingly.

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10. Mitigation Fee Act Findings
Public facilities fees are one-time fees typically paid when a building permit is issued and imposed on development projects by local agencies responsible for regulating land use (cities and counties). To guide the widespread imposition of public facilities fees the State Legislature adopted the Mitigation Fee Act (the Act) with Assembly Bill 1600 in 1987 and subsequent amendments. The Act, contained in California Government Code Sections 66000 through 66025, establishes requirements on local agencies for the imposition and administration of fee programs.

The Act requires local agencies to document five findings when adopting a fee.

The five statutory findings required for adoption of the public facilities fees documented in this report are presented in this chapter and supported in detail by the preceding chapters. All statutory references are to the Act.

Purpose of Fee
■ Identify the purpose of the fee (§66001(a)(1) of the Act).

Development impact fees are designed to ensure that new development will not burden the existing service population with the cost of facilities required to accommodate growth. The purpose of the fees documented by this report is to provide a funding source from new development for capital improvements to serve that development. The fees advance a legitimate City interest by enabling the City to provide public facilities to new development.

Use of Fee Revenues
■ Identify the use to which the fees will be put. If the use is financing facilities, the facilities shall be identified. That identification may, but need not, be made by reference to a capital improvement plan as specified in §65403 or §66002, may be made in applicable general or specific plan requirements, or may be made in other public documents that identify the facilities for which the fees are charged (§66001(a)(2) of the Act).

Fees documented in this report, if enacted by the City, would be used to fund expanded facilities to serve new development. Facilities funded by these fees are designated to be located within the City's sphere of influence. Fees addressed in this report have been identified by the City to be restricted to funding the following facility categories: transportation facilities, park facilities, recreation facilities, citywide public improvement facilities, and storm drain facilities.

Benefit Relationship
• Determine the reasonable relationship between the fees' use and the type of development project on which the fees are imposed (§66001(a)(3) of the Act).

The City will restrict fee revenue to the acquisition of land, construction of facilities, infrastructure and buildings, and purchase of related equipment, furnishings, vehicles, and services used to serve new development. Facilities funded by the fees are expected to provide a citywide network of facilities accessible to the additional residents and workers associated with new development.

Under the Act, fees are not intended to fund planned facilities needed to correct existing deficiencies. Thus, a reasonable relationship can be shown between the use of fee revenue and the new development residential and non-residential use classifications that will pay the fees.

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Burden Relationship
• Determine the reasonable relationship between the need for the public facilities and the types of development on which the fees are imposed (§66001(a)(4) of the Act).

Facilities need is based on a facility standard that represents the demand generated by new development for those facilities. For each facility category, demand is measured by a single facility standard that can be applied across land use types to ensure a reasonable relationship to the type of development. Transportation demand is measured in terms of trips generation. Strom drain demand in measured in terms of impervious surface generated. For some facility categories service population standards are calculated based upon the number of residents associated with residential development and the number of workers associated with non-residential development.

To calculate a single, per capita standard, one worker is weighted differently than one resident based on an analysis of the relative use demand between residential and non-residential development.

The standards used to identify growth needs are also used to determine if planned facilities will partially serve the existing service population by correcting existing deficiencies. This approach ensures that new development will only be responsible for its fair share of planned facilities, and that the fees will not unfairly burden new development with the cost of facilities associated with serving the existing service population.

Chapter 2, Growth Forecasts provides a description of how service population and growth forecasts are calculated. Facility standards are described in the Facility Standard sections of each facility category chapter.

Proportionality
• Determine how there is a reasonable relationship between the fees amount and the cost of the facilities or portion of the facilities attributable to the development on which the fee is imposed (§66001(b) of the Act).

The reasonable relationship between each facilities fee for a specific new development project and the cost of the facilities attributable to that project is based on the estimated new development growth the project will accommodate. Fees for a specific project are based on the project's size. Larger new development projects can result in a higher service population resulting in higher fee revenue than smaller projects in the same land use classification. Thus, the fees ensure a reasonable relationship between a specific new development project and the cost of the facilities attributable to that project.

See Chapter 2, Growth Forecasts, or the Trip Demand, Service Population or Storm Drain Demand sections in each facility category chapter for a description of how service populations or other factors are determined for different types of land uses. See the Fee Schedule section of each facility category chapter for a presentation of the maximum justified facilities fees.

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11. Appendix
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Appendix Table A.1: Fixed Assets Schedule
Asset #:

Date Orignial Cost Book Value
Bridges
707 MILES AVENUE - BRIDGES 6/30/1998 $ 600,000 $ 370,000 94009307 FRED WARING BRIDGE - BRIDGES 6/30/1993 3,048,521 1,625,878 758 ALL WEATHER CROSSING AT MILES-WHITEWATER 12/1/2000 476,453 340,292 776 ALL WEATHER CROSSING WHITEWATER CHANNEL 6/30/2003 837,020 - 95009604 ELDORADO DRIVE BRIDGE - BRIDGES 5/1/1995 1,300,000 733,056 767 MILES AVE BRIDGE - BRIDGES 6/30/2003 6,706,581 4,806,383 316 MILES AVE BRIDGE - 2/19 STORM IMPROVEMENTS 6/30/2021 23,380 23,380 Total $ 12,991,954 $ 7,898,988
Curb and Gutter
473 ABRIGO WAY CURB & GUTTER 2/1/1982 $ 7,260 $ 2,491
475 ALTA COLINA WAY PAINTED DESERT CURB&GUTT 5/1/1978 3,986 1,118 477 ALTA COLINA @ CIELITO - CURB & GUTTER 6/1/1989 9,434 4,389 479 ALTA MIRA DRIVE- CURB & GUTTER 6/1/1989 23,360 10,869 482 APACHE ROAD - CURB 8, GUTTER 7/1/1961 6,719 0
484 AZURE HILLS LANE CURB& GUTTER 7/1/1989 5,728 2,673
486 BLACK RABBIT ROAD - CURB & GUTTER 4/1/1981 2,323 765 488 BLACKFOOT WAY - CURB & GUTTER 3/1/1978 6,350 1,764
490 CALLE TRANQUILIDAD - CURB & GUTTER 6/1/1986 3,867 1,606 492 CAMINO DEL RAY - CURB & GUTTER 7/10/1978 12,700 3,598 494 CAMINO DEL REY - CURBS & GUTTERS 6/1/1979 20,316 6,067 498 CHOLAME WAY - CURB & GUTTER 6/1/1959 1,280
500 CIELITO DRIVE - CURB & GUTTER 6/1/1961 1,731 -
502 CIELITO DRIVE / OSAGE - CURB & GUTTER 6/30/1989 43,013 20,073 505 COCOPATH CIRCLE - CURB & GUTTER 12/1/1977 2,257 618 507 COOK STREET NB - CURB & GUTTER 6/30/1980 79,875 25,294 510 COOK STREET NB - CURB & GUTTER 6/30/1979 66,647 19,994 513 COOK STREET SB - CURB & GUTTER 6/30/1979 74,101 22,230 516 COOK STREET SB - CURB & GUTTER 6/30/1979 66,647 19,994 519 DEBBY LANE - CURB & GUTTER 6/30/1989 12,129 5,660
521 DESERT PARK DRIVE - CURB & GUTTER 6/30/1989 35,264 16,457 524 DESERT VALLEY LANE - CURBS & GUTTER 6/30/1989 7,974 3,721 526 DESIERTO DRIVE - CURB & GUTTER 6/30/1979 6,869 2,061 528 EL DORADO DRIVE - CURB & GUTTER 6/30/1980 10,634 3,367 531 ELDORADO DRIVE - CURB & GUTTER 1/1/1999 21,236 13,273 534 ELDORADO DRIVE NB - CURB & GUTTER 6/30/1979 49,693 14,908 536 ELDORADO DRIVE NB - CURB & GUTTER 6/30/1982 53,615 18,765 539 ELDORADO DRIVE SB - CURB & GUTTER 6/30/1979 49,985 14,996 541 ELDORADO DRIVE SB - CURB & GUTTER 6/30/1982 53,615 18,765 543 FAIRWAY DRIVE - CURB & GUTTER 8/30/1980 42,064 13,437 545 FAIRWAY DRIVE - CURB & GUTTER 8/30/1980 37,259 11,902 547 FAIRWAY DRIVE - CURB & GUTTER 8/30/1980 24,656 7,876 549 FAIRWAY DRIVE - CURB & GUTTER 8/30/1980 22,056 7,046 551 FRED WARING DR EB - CURB & GUTTER 6/30/1990 47,213 22,820 553 FRED WARING DR. EB - CURB & GUTTER 6/30/1990 47,213 22,820 555 FRED WARING DRIVE EB - CURB & GUTTER 6/30/1990 53,200 25,713 557 FRED WARING DRIVE - CURB & GUTTER 6/30/1990 49,055 23,710 559 INDIAN WELLS LANE - CURB & GUTTER 7/1/1989 34,029 15,880 Source: City of Indian Wells Depreciation Schedule for all Governmental Funds Fiscal Year Ending 6/30/2021.

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Appendix Table A.1: Fixed Assets Schedule Continued
Asset #: Date Orignial Cost Book Value
561 KACHINA CIRCLE - CURB & GUTTER 12/1/1977 $ 2,257 $ 618 563 KAWEA WAY - CURBS & GUTTER 6/30/1959 1,396
565 MANZO ROAD - CURB & GUTTER 6/30/1989 19,766 9,224
567 MARY LANE - CURB & GUTTER 6/30/1989 21,001 9,800
569 MAIM! CIRCLE - CURB & GUTTER 3/31/1963 745 22
571 MOCKINGBIRD TRAIL - CURB & GUTTER 4/30/1981 15,312 5,061 574 MOHICAN CIRCLE - CURB & GUTTER 3/1/1963 1,316 37
576 MONTECITO - CURB & GUTTER 6/30/1990 30,285 14,638
602 MONTECITO DR/STARDUST- CURBS & GUTTERS 6/1/1989 3,145 1,463 604 MORONGO WAY - CURBS & GUTTERS 6/30/1978 12,970 3,675 606 NANCY COURT - CURBS & GUTTERS 6/30/1989 3,931 1,834 608 NAVAJO DR - CURBS & GUTTERS 6/30/1962 3,883 65
610 OSAGE TRAIL - CURBS & GUTTERS 3/1/1998 25,825 15,782 612 OSAGE TRAIL - CURBS & GUTTERS 3/1/1978 2,499 694
614 OSAGE TRAIL EB - CURBS & GUTTERS 3/1/1963 3,990 111 616 OSAGE TRAIL WB - CURBS & GUTTERS 3/1/1963 3,990 111 618 PAINTED DESERT DR - CURBS & GUTTERS 6/30/1989 34,590 16,142 622 PAINTED DESERT DRIVE - CURBS & GUTTERS 6/30/1979 4,677 1,403 625 PAINTED DESERT DRIVE - CURBS & GUTTERS 6/30/1989 4,829 2,254 627 PAINTED DESERT DRIVE - CURBS & GUTTERS 6/30/1978 20,131 5,704 629 PAINTED DESERT DRIVE - CURBS & GUTTERS 3/1/1995 25,429 14,268 631 PALA PALMS DRIVE - CURBS & GUTTERS 6/30/1959 2,250
633 PALM SHADOW DRIVE - CURBS & GUTTERS 6/30/1989 27,402 12,788 635 PALM VILLA LANE - CURBS & GUTTERS 6/30/1989 5,391 2,516 637 PARADISE VALLEY ROAD - CURBS & GUTTERS 6/30/1989 15,046 7,021 639 PASEO CORONADO - CURBS & GUTTERS 6/30/1963 1,951 65 641 PAWNEE CIRCLE - CURBS & GUTTERS 3/1/1963 1,316 37
643 PURPLE HILL ROAD - CURBS & GUTTERS 6/30/1989 20,889 9,748 645 RANCHO PALMERAS DRIVE - CURBS & GUTTERS 8/1/1964 6,924 356 655 REINA COURT- CURBS & GUTTERS 6/30/1980 5,199 1,646
657 SHAWNEE CIRCLE - CURBS & GUTTERS 3/1/1963 745 21
659 SHOSHONE DR - CURBS & GUTTERS 6/30/1959 5,101
661 SKYLARK TRAIL - CURBS & GUTTERS 6/30/1989 20,215 9,434 663 STARDUST LANE - CURBS & GUTTERS 6/30/1989 29,536 13,783 665 TECOPA CIRCLE - CURBS & GUTTERS 6/30/1959 543
667 VIA CORONA - CURBS & GUTTERS 3/1/1963 5,679 158
669 VIA CORONA - CURBS & GUTTERS 3/1/1963 1,842 51
671 VIA MARIPOSA - CURBS & GUTTERS 6/30/1979 5,992 1,798 673 VIA MARIPOSA - CURBS & GUTTERS 6/30/1963 3,925 131
675 VIA SERENA - CURBS & GUTTERS 6/30/1998 5,330 3,287
677 VISTA DORADO DRIVE - CURBS & GUTTERS 6/30/1989 18,418 8,595 679 WILLIAMS ROAD - CURBS & GUTTERS 6/30/1989 25,606 11,949 681 ZUNI ROAD - CURBS & GUTTERS 3/1/1963 4,561 127
684 COCHISE WAY - CURB & GUTTER 6/30/1962 489 8
HWY 111 RELINQUISHMENT -CURB & GUTTER 6/30/2008 2,836,294 2,174,492 316.92.15 ADA Curb Ramp Replacement 6/30/2019 114,916 109,170 Total $ 4,502,880 $ 2,876,804
Source: City of Indian Wells Depreciation Schedule for all Governmental Funds Fiscal Year Ending 6/30/2021. *W I LLDAN
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Appendix Table A.1: Fixed Assets Schedule Continued
Asset #: Date Orignial Cost Book Value
Citywide Infrastructure
738 PEDESTRIAN BIKE CROSSING
95009908 BIKE LANES
97009118 ADA UPGRADES
775 PEDESTRIAN BIKE BRDGE
777 WIDENING PROJECT - FRED WARING
777 WIDENING PROJECT - FRED WARING
202.99.07
337.93.12
316.93.12
316.93.12
337.93.14
337.93.97
247.99.12
316.99.99
316.99.15

FAIRWAY DRIVE LIGHTING
HWY 111 IMPROVEMENTS
HWY 111 IMPROVEMENTS
HWY 111 IMPROVEMENTS
HWY 111 IMPROVEMENTS - SOUNDWALLS

FRED WARING WIDENING

DUAL DUMPSTER RECYCLING BINS

WHITEWATER SLOPE PAVING REPAIR

FRED WARING DRAINAGE REPAIR
316.99.08 WALK OF HONOR FOUNTAIN REMODEL
202.99.16 LED SAFETY LIGHTING AT TRAFFIC SIGNALS
316.93.07 IW VILLAGE UNDERGROUND UTILITIES
316.93.18 Ped Bridge/Slope Protection
209.96.09 FAMD MANITOU BASIN (DESILITING)
Total
Paved Streets
474 ABRIGO WAY STREET PAVEMENT
476 ALTA COLINA WAY PAVEMENT PAINTED DESERT
478 ALTA COLINA @ CIELITO PAVEMENT
481 ALTA MIRA DRIVE -PAVEMENT
483 APACHE ROAD- PAVEMENT
485 AZURE HILLS LANE- PAVEMENT
487
489
491
493
495
497
499
501
504
506
509
512
515
518
316.93.41
520
523
525
527
530
533
535
538
540

BLACK RABBIT ROAD - PAVEMENT

BLACKFOOT WAY - PAVEMENT

CALLE TRANQUILIDAD -PAYMENT

CAMINO DEL RAY - PAVEMENT

CAMINO DEL REY - PAVEMENT

COCHISE WAY - PAVEMENT

CHOLAME WAY - PAVEMENT

CIELTO DRIVE - PAVEMENT

CIELITO DRIVE/OSAGE - PAVEMENT

COCOPATH CIRCLE - PAVEMENT
COOK STREET NB - HWY 111 TO FRED WARING
COOK STREET NB - FAIRWAY TO HWY 111
COOK STREET SB - HWY 111 TO FRED WARING
COOK STREET SB - HWY 111 TO FRED WARING
COOK STREET NB & SB -HWY 111 TO FRED WARING

DEBBY LANE - PAVEMENT

DESERT PARK DRIVE - PAVEMENT

DESERT VALLEY LANE - PAVEMENT

DESIERTO DRIVE - PAVEMENT

EL DORADO DR - PAVEMENT

EL DORADO DRIVE - PAVEMENT

ELDORADO DRIVE NB - PAVEMENT

ELDORADO DRIVE SB - PAVEMENT
5/1/2000
6/30/1997
6/30/2001
6/30/2003
6/30/2003
6/30/2003
6/30/2007
7/1/2005
7/1/2005
6/30/2009
6/30/2009
6/30/2011
6/30/2011
6/30/2011
6/30/2011
6/30/2011
6/30/2010
6/30/2017
6/30/2020
2/1/1982
5/1/1978
7/1/1989
6/1/1989
7/1/1961
7/1/1989
4/1/1981
3/1/1978
7/1/1986
6/10/1978
6/1/1979
6/1/1962
6/1/1959
6/1/1961
6/30/1989
12/1/1977
6/30/1980
6/30/1979
6/30/1979
6/30/1979
6/30/2016
6/30/1989
6/30/1989
6/30/1989
6/30/1979
6/30/1980
1/1/1999
6/30/1979
6/30/1982
6/30/1982
$ 315,921 $
29,353
147,165
410,859
427,551
12,952,464
140,908
12,904,007
571,043
4,082,611
283,013
1,151,212
101,071
1,760
60,239
1,900
77,797
2,819,423
71,840
28,324
$ 36,578,461
$ 10,508
6,293
14,071
35,855
9,726
8,042
3,158
10,304
7,633
15,594
31,189
900
1,796
2,962
62,259
4,157
120,945
91,136
112,202
85,436
74,129
17,555
51,043
11,544
11,752
50,894
116,149
72,194
74,016
68,349
313,537
9,525,743
10, 622, 798
475,869
3,525,490
222,665
913,894
49,195
2,490,504
35,920
28,324
$ 28,203,941
$ 3,605
1,766
6,566
16,683
3,753
1,040
2,862
3,180
4,397
9,313
14 29,054
1,137
38,299
27,341
33,661
25,631
74,129
8,192
23,820
5,387
3,526
16,116
72,593
21,658
25,906
23,922
Source: City of Indian Wells Depreciation Schedule for all Governmental Funds Fiscal Year Ending 6/30/2021.

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aty of Indian Vds Development Impact Fee Nexus Study
Appendix Table A.1: Fixed Assets Schedule Continued
Asset #: Date Orignial Cost Book Value
542 ELDORADO DRIVE SB - PAVEMENT 6/30/1982 $ 74,016 $ 25,906 544 FAIRWAY DRIVE - PAVEMENT 8/30/1980 125,817 40,192
546 FAIRWAY DRIVE - PAVEMENT 8/30/1980 130,555 41,705
548 FAIRWAY DRIVE - PAVEMENT 8/30/1980 73,748 23,558
550 FAIRWAY DRIVE - PAVEMENT 8/30/1980 77,286 24,689
552 FRED WARING DRIVE EB - PAVEMENT 6/30/1990 168,200 81,297 554 FRED WARING DRIVE EB - PAVEMENT 6/30/1990 168,200 81,297 556 FRED WARING DRIVE EB - PAVEMENT 6/30/1990 123,192 59,543 558 FRED WARING DRIVE EB - PAVEMENT 6/30/1990 152,914 73,908 560 INDIAN WELLS LANE - PAVEMENT 7/1/1989 50,742 23,680 562 KACHINA CIRCLE - PAVEMENT 12/10/1977 3,563 975
564 KAWEA WAY - PAVEMENT 6/30/1959 1,899
566 MANZO ROAD - PAVEMENT 7/30/1989 30,341 14,201
568 MARY LANE - PAVEMENT 6/30/1989 30,394 14,184
570 MIAMI CIRCLE - PAVEMENT 3/1/1963 1,210 34
572 MOCKINGBIRD TRAIL -PAVEMENT 4/1/1981 20,823 6,854
573 MOHAWK CIRCLE - PAVEMENT 6/30/1963 2,254 75
575 MOCHICAN CIRCLE - PAVEMENT 3/1/1963 1,961 54
601 MONTECITO DRIVE - PAVEMENT 6/30/1990 41,174 19,901
603 MONTECITO DR/STARDUST- PAVEMENT 6/1/1989 4,274 1,989 605 MORONGO WAY - PAVEMENT 6/30/1978 21,616 6,125
607 NANCY COURT- PAVEMENT 6/30/1989 7,066 3,297
609 NAVAJO DR - PAVEMENT 6/30/1962 4,939 82
611 OSAGE TRAIL - PAVEMENT 3/1/1995 41,917 23,520
613 OSAGE TRAIL - PAVEMENT 3/1/1978 5,920 1,644
615 OSAGE TRAIL EB - PAVEMENT 3/1/1993 5,602 2,957
617 OSAGE TRAIL WB - PAVEMENT 3/1/1963 5,951 165
621 PAINTED DESERT DR - PAVEMENT 6/30/1989 50,068 23,365 624 PAINTED DESERT DR - PAVEMENT 6/30/1979 7,385 2,216
626 PAINTED DESERT DRIVE - PAVEMENT 6/30/1989 78,768 36,758 628 PAINTED DESERT DRIVE - PAVEMENT 6/30/1978 31,786 9,006 630 PAINTED DESERT DRIVE - PAVEMENT 3/1/1995 40,152 22,530 632 PALA PALMS DRIVE - PAVEMENT 6/30/1959 2,762
634 PALM SHADOW DRIVE - PAVEMENT 6/30/1989 39,659 18,508 636 PALM VILLA LANE - PAVEMENT 6/30/1989 7,802 3,641
638 PARADISE VALLEY ROAD - PAVEMENT 6/30/1989 27,725 12,938 640 PASEO CORONADO - PAVEMENT 6/30/1963 2,738 91
642 PAWNEE CIRCLE - PAVEMENT 3/1/1963 1,961 54
644 PURPLE HILL ROAD - PAVEMENT 6/30/1989 31,147 14,535 648 RANCHO PALMERAS DRIVE - PAVEMENT 8/1/1964 31,363 1,612 651 RANCHO PALMERAS DRIVE NB - PAVEMENT 6/30/1989 38,422 17,930 654 RANCHO PALMERA DR SB - PAVEMENT 6/30/1989 34,932 16,302 656 REINA COURT- PAVEMENT 6/30/1980 9,123 2,889
658 SHAWNEE CIRCLE - PAVEMENT 3/1/1963 1,210 34
660 SHOSHONE DR - PAVEMENT 6/30/1959 6,264
662 SKYLARK TRAIL - PAVEMENT 6/30/1989 28,372 13,240
664 STARDUST LANE - PAVEMENT 6/30/1989 40,156 18,739
666 TECOPA CIRCLE - PAVEMENT 6/30/1959 882
668 VIA CORONA - PAVEMENT 3/1/1963 6,725 187
670 VIA CORONA - PAVEMENT 3/1/1963 2,505 70
Source: City of Indian Wells Depreciation Schedule for all Governmental Funds Fiscal Year Ending 6/30/2021. '/W I LLDAN
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aty of Indian Vds Development Impact Fee Nexus Study
Appendix Table A.1: Fixed Assets Schedule Continued
Asset #: Date Orignial Cost Book Value
672 VIA MARIPOSA - PAVEMENT
674 VIA MARIPOSA - PAVEMENT
676 VIA SERENA - PAVEMENT
678 VISTA DORADO DR - PAVEMENT
680 WILLIAMS ROAD - PAVEMENT
737 ZUNI ROAD - PAVEMENT

IW LANE WIDENING - PAVEMENT
767 FRED WARNING WIDENING -PAVEMENT REPAIR
739 WASHINGTON STREET WIDENING
209.93.99 FAMD REHABILATION PROJECT
337.93.94 IW VILLAGE ROADWAY IMPROVEMENTS
319.93.11 COOK STREET IMPROVEMENTS
HWY 111 RELINQUISHMENT -PAVED STREET
337.97.2-4 IW LANE REHABILATION PROJECT
316.98.83 CLUB DRIVE REHABILATION PROJECT
209 FAMD ROADWAY SLURRY SEAL
209
316.93.33
316.93.01
316.93.01
316.93.01
316.93.01
316.93.01
316.93.10
Total

FAMD ROADWAY IMPROVEMENTS
JEFFERSON ST/I-10 INTERCHANGE
Street Rehabilitation
Cook Street Pavement Project
Slurry Seal Project - Various City Street
Palm Desert - Slurry Seal Project - IW Share
Pavement Rehabilitation
Intersection Improvements - Washington/Fred Waring
Traffic Safety
708 COOK STREET - TRAFFIC SIGNALS
709 ELDORADO - TRAFFIC SIGNALS
710 WARNER TRAIL - TRAFFIC SIGNALS
769 WARNER TRAIL/MILES - TRAFFIC SIGNALS
711 WASHINGTON - TRAFFIC SIGNALS
202.99.09 HWY 111 Emergency Vehicle Pre-emp. Sensors
316.92.15 Traffic Signal Upgrade/Wiring
316.92.20 Washington St Sidewalk
316.92.15 ADA Curb Ramp Replacement
316.92.15 Gerald Ford Circulation Improvements - CIP
316.92.26 Curb & Gutter (Storm Drain Installation)
Total
Storm Drains
480 ALTA MIRA DRIVE - STORM DRAIN
503 CIELTO DRIVE - STORM DRAIN
508 COOK STREET NB - STORM DRAIN
511 COOK STREET NB - STORM DRAINS
514 COOK STREET SB - STORM DRAINS
517 COOK STREET SB -STORM DRAIN
522 DESERT PARK DRIVE - STORM DRAIN
529 EL DORADO DRIVE - STORM DRAINS
532 ELDORADO DRIVE - STORM DRAIN
6/30/1979
6/30/1963
6/30/1998
6/30/1989
6/30/1989
3/1/1963
5/1/2000
7/1/2000
5/1/2000
6/30/2007
7/1/2003
6/30/2008
6/30/2008
6/30/2008
6/30/2011
6/30/2011
6/30/2010
6/30/2015
6/30/2018
6/30/2019
6/30/2019
6/30/2019
6/30/2020
Tripl 6/30/2020
$ 8,671 $ 2,601
5,164 172
10,759 6,635
27,468 12,818
41,556 19,393
6,200 172
477,702 309,465
50,441 35,716
260,000 168,400
1,777,963 1,422,370
13, 073, 536 9,800,363
20,930 16,395
19,854,058 15,221,444
2,574,392 2,016,607
20,998 17,148
272,708 224,151
138,673 110,939
49,282 46,831
1,175,155 1,096,811
655,363 622,594
570,762 542,224
194,734 184,997
187,864 181,602
100,000 98,333
$ 44,633,651 $ 33,428,210
6/30/1986 $ 52,259 $ 21,775
6/30/1987 89,349 38,718
6/30/1992 50,546 26,115
7/1/2000 7,355 4,781
12/30/1998 36,016 22,510
11/15/2007 87,393 39,327
6/30/2017 622,335 579,605
6/30/2017 83,150 76,228
6/30/2020 11,650 11,262
6/30/2020 2,620 2,620
6/30/2020 37,095 35,859
$ 1,079,768 $ 858,798
1/1/1978 $ 23,153 $ 6,367
6/30/1995 27,959 15,843
6/30/1988 46,627 20,982
6/30/1988 1,320 594
6/30/1988 8,578 3,860
6/30/1988 34,310 15,440
6/30/1981 22,160 7,387
6/30/1981 16,132 5,377
6/30/1980 105,029 33,259
Source: City of Indian Wells Depreciation Schedule for all Governmental Funds Fiscal Year Ending 6/30/2021. 'W I LLDAN
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aty of Indian Vds Development Impact Fee Nexus Study
Appendix Table A.1: Fixed Assets Schedule Continued
Asset #: Date Orignial Cost Book Value
537 ELDORADO DRIVE - STORM DRAIN 6/30/1989 $ 7,412 $ 3,459 619 PAINTED DESERT DRIVE - STORM DRAIN 6/30/1993 27,233 14,524 620 PAINTED DESERT DR - STORM DRAIN 6/30/1993 5,325 2,840 623 PAINTED DESERT DRIVE - STORM DRAINS 6/30/1993 11,563 6,167 646 RANCHO PALMERAS DRIVE - STORM DRAIN 6/30/1987 51,144 22,162 647 RANCHO PALMERAS DRIVE - STORM DRAIN 6/30/1987 65,383 28,333 649 RANCHO PALMERAS DR NB - STORM DRAIN 6/30/1981 1,720 573 650 RANCHO PALMERAS DR NB - STORM DRAINS 6/30/1988 10,007 4,503 652 RANCHO PALMERA DR SB - STORM DRAIN 6/30/1987 22,130 9,590 653 RANCHO PALMERA DR SB - STORM DRAIN 6/30/1987 24,267 10,516 683 EL DORADO DR - STORM DRAIN 6/30/1985 4,621 1,848
685 CIELITO DRIVE - STORM DRAIN 6/30/1998 12,111 7,468
686 ELDORADO DRIVE - STORM DRAINS 6/30/1988 21,994 9,897 687 ELDORADO DR. NORTH BOUND - STORM DRAINS 6/30/1988 23,753 10,689 688 ELDORADO DR SB - STORM DRAINS 6/30/1988 18,489 8,320 689 FRED WARING DR EB - STORM DRAINS 6/30/1992 20,380 10,530 690 FRED WARING DR EB - STORM DRAINS 6/30/1992 251,029 129,698 691 FRED WARING DR EB - STORM DRAINS 6/30/1992 21,836 11,282 692 COMANCHE - STORM DRAINS 6/30/1989 10,781 5,031
693 DESERT HORIZON - STORM DRAIN 6/30/1979 56,708 17,012 694 ELDORADO - STORM DRAIN 6/30/1979 33,937 10,181
695 HWY 111 - STORM DRAIN 6/30/1986 5,644 2,352
696 HWY 111 - STORM DRAIN 6/30/1986 7,943 3,310
697 HWY 111 - STORM DRAIN 6/30/1980 4,686 1,484
698 HWY 111 - STORM DRAIN 6/30/1978 10,921 3,094
699 HWY 111 - STORM DRAIN 6/30/1985 5,145 2,058
700 HWY 111 - STORM DRAIN 6/30/1980 914,306 289,530
701 IW LANE - STORM DRAIN 6/30/1985 14,088 5,635
702 IW LANE - STORM DRAIN 6/30/1985 73,909 29,564
703 IW LANE - STORM DRAIN 6/30/1980 17,393 5,508
704 MILES - STORM DRAIN 6/30/1985 15,498 6,199
705 PALA PALMS - STORM DRAIN 6/30/1985 17,763 7,105
706 TORO (ALL) - STORM DRAIN 6/30/1995 1,076,509 610,022 316.96.01 LOS LAGOS 6/30/2015 21,236 18,758
316.95.05 Whitewater River Drop Structure 6/30/2017 111,208 102,803 316.96.06 Dakota Trail Drainage Improvement - City Contribution Ass 6/30/2019 99,839 94,847 316.96.08 Warner Trail - Storm Drain 6/30/2019 9,040 8,588 Total $ 3,392,218 $ 1,624,591
Source: City of Indian Wells Depreciation Schedule for all Governmental Funds Fiscal Year Ending 6/30/2021.

WWILLDAN
,NAN- AL Sri VI,I,
47 250

ATTACHMENT #2
2022 BOARD OF fllttEc'rofts

PRESIDENT
Todd looks
Ague Caliente Hand of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern California Gas Company
Pt VICE PRESIDENT
T em Dubose
Dubose Design Group, Inc.

SECRETARY/TREASURER
Pedro Rincon
Osborne Rincon CPAs

VICE PRESIDENT

OF ASSOCIATES
Allan Levin
Allan Levin & Associates

CHIEF EXECUTIVE OFFICER
Gretchen Gutierrez

DIRECTORS
Fred Bell
Nobell Energy Solutions
Brian Benedetti
Brian Benedetti Construction
Mark Benedetti
Oedl"e Cn anon
North American Title
Mario Gonzales
GM Companies
inc Hayes
First Bank
Dave Lippert
Lippert Construction, Inc
Paul Mahoney
PAM ,1�1L9"trs�n
Bruce Maize
Robert Green Company
Russ Martin
Mission Springs Water
District
Dan Olivier
Nethery Mueller Olivier
Alan Pace
Petra GeoSciences
John Powell, Jr,
Coachella Valley Water District
Phil Smith
Sunrise Company
Jeff Wattenbarger
Wattenbarger Construction
desert valleys builders association
May 25, 2022
City of Indian Wells
Kevin McCarthy, Finance Director
44-950 El Dorado Drive
Indian Wells, CA 92210-7497
Dear Mr. McCarthy,
Thank you for providing the Desert Valleys Builders Association (DVBA) the opportunity to review the City of Indian Wells' Developer Impact Fee Study, dated May 2, 2022.

The DVBA appreciates the opportunities to work with the City to establish a fee study that meets the requisites of the Mitigation Fee Act.

The DVBA supports the adoption of this study and the related development impact fees.
incerely,
n Gutie rez
xec Officer
34360 Gateway Drive • Palm Desert • CA 92211
(760) 776-7001 office • (760) 776-7002 fax
www.TheDVBA.org
251

/ n dian We//s City Council
Staff Report - Community Development May 26 2022
Resolution Recommending Approval of General Plan Amendment No. 2022-01 for Adoption of the 2021-2029 Housing Element, and Finding the Action to be Exempt under the California
Environmental Quality Act (CEQA)
RECOMMENDED ACTI ONS:

Council OPENS the Public Hearing, takes any public testimony, and CLOSES the Public Hearing; and
ADOPTS Resolution No. 2022-31, approving General Plan Amendment No. 2022-01 for the 6th Cycle 2021-2029 Housing Element; and
Fl NDS the action exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines.

REPORT -I N-BRI EF:

The Housing Element is a state -mandated element of the City's General Plan and is required to identify and analyze existing and projected housing needs for Indian Wells.

The document includes the Qty's goals, policies, quantified objectives, and programs for the preservation, improvement, and development of housing. The Housing Element is the only element that must be updated at regular intervals or cycles (every 8 years). The current adopted Housing Element for the 5th Cycle covers the period 2013-2021.

Prior to adoption, the 2021-2029 Housing Element must be reviewed by HCD and the Qty must consider and respond to the Department's comments by making necessary modifications to comply with State Housing Law. City staff and the City's consultant completed the Draft 2021-2029 Housing Element and submitted it to HCD on December 2, 2021, for the State -mandated 60 -day review period. The 30 -day public review period began on December 3, 2021, during which time City residents and other stakeholders were afforded an opportunity to comment on the content of the Draft Housing Element.

Generally, the updates to the existing Housing Element include compliance with state - mandated programs (e.g., Affirmatively Furthering Fair Housing), updates to the housing unit counts, and other modifications to ensure that the document is in compliance with Housing Element law. State law also requires the Housing Element to identify sites suitable for development of all housing types, with capacity to satisfy the City's housing needs for the period 2021-2029 (6th Cycle). The Sites Inventory is an assessment of the 252

City's capacity for new housing development, which must demonstrate that the Regional Housing Needs Assessment (RHNA) target of 382 housing units, including 198 lower - income (very low and low) affordable units can be reasonably achieved under the City's current land use plans and zoning regulations, or with planned amendments thereto. As of November 2021, 250 housing units had already been constructed, were under construction, or were approved/entitled since the beginning of the RHNA planning period (July 1, 2021). However, the majority of these units are only affordable to above - moderate income households (a category for which the City has already exceeded its RHNA by 99 units). When considering the remaining RHNA by income category, the City has a remaining RHNA of 231 units (115 extremely low/very low-income units, 80 low- income units, and 36 moderate -income units). Through the Sites Inventory for the 6th Cycle, the City has demonstrated that it has sufficient capacity to accommodate its remaining RHNA, including all income categories.

BACKGROUND:

The Housing Element is one of eight mandatory elements of the City's General Plan — Land Use, Housing, Circulation, Conservation and Open Space (combined), Community Safety, Noise, and Environmental Justice (new). Housing Element law, enacted in 1969, mandates that local governments adequately plan to meet the existing and projected housing needs of all economic segments of the community. The law acknowledges that in order for the private market to adequately address housing needs and demands, local governments must adopt land use plans and regulatory systems which provide opportunities and incentives to encourage, not constrain, the development of new housing, especially providing housing opportunities for low-income and special needs populations.

State law requires the Housing Element be updated at regular intervals and requires the Housing Element be reviewed by the State Department of Housing and Community Development (HCD). For the purposes of the Housing Element Update, the State is organized into regions, with each region on a separate Housing Element cycle. The City of Indian Wells is within the Southern California Association of Governments (SLAG) Region. The current Housing Element Update cycle began in early 2021 when SCAG adopted the Regional Housing Needs Assessment (RHNA) and kicked off a one-year timeframe for preparation of the Housing Element Update.

In May 2020, the City Council authorized a contract with De Novo Planning Group to prepare a comprehensive General Ran Update, which included preparation of the Housing Element. Since that time, staff and the consultant have done extensive public outreach (see Public Engagement Summary in Attachment 2) and prepared a Draft Housing Element for adoption.

On May 18, 2022, a public hearing on the General Ran Amendment for the 6th Cycle 2021-2029 Housing Element was held by the Panning Commission who recommended approval to the Qty Council by a vote of 3 to 0, with 1 abstention and 1 excused absence. 253

DI SCUSSI ON:

Regional Housing Needs Assessment ("RHNA")
The RHNA allocation is an important component of the Housing Element. HCD is responsible for determining the Regional Housing Needs Assessment (segmented by income levels) for each region's planning body known as a "council of governments" (COG). As stated above, Indian Wells is within SCAG's planning region/COG.

For the 6th Cycle, HCD has determined the housing need for the SCAG region to be 1,341,827 units. HCD starts with demographic population information from the California Department of Finance and uses a formula to calculate a figure for each region/COG.

SCAG has taken this number and allocated each city and county in the region with its fair share using their developed methodology. Indian Wells was allocated a total of 382 units for the period 2021-2029. The following table represents the City's RHNA allocation for the 6th Cycle by household income level based on Aera Median Income ("AMI").

TABLE 1: REGIONAL HOUSING NEEDS ALLOCATION - 6TH CYCLE
Very Low Low Moderate Above Moderate
(50% of AMI) (51-80% of AMI) (81-120% of AMI) (121%+ of AMI) TOTAL
117
81 91
Source: Southern California Association of Governments, 2021 Note: AMI is Area Median Income.
93 382
The City must demonstrate "sufficient capacity" to accommodate the new housing needs identified in the RHNA. Sufficient capacity is demonstrated by showing that the City has an adequate amount of land with appropriate allowable densities and development standards (i.e. with the appropriate General Plan designation and zoning) to accommodate their fair share of RHNA.

Housing Element Organization and Overview
In accordance with the timelines set by HCD, City staff and the City's consultant have completed the Draft 2021-2029 Housing Element. The Draft 2021-2029 Housing Element is included as Attachment 2. The document includes the following components:

Part 1: Housing P/an
The Housing Plan includes the goals and policies that guide the City's housing programs and activities. The City's objective is to ensure that decent and safe housing is available to all current and future residents at a cost that is within the reach of the diverse economic segments which comprise Indian Wells. The goals and polices in the Housing Ran address the following issues: (1) conservation and improvement of housing, (2) development of housing, (3) removal of government constraints, (4) equal housing opportunities, and (5) energy conservation.

The Housing Ran includes programs and quantified objectives that the City will implement to address the goals and policies identified (above) and to comply with State Housing 254

Law. Many of the programs are required by the State and have been modified/updated from the 5th Cycle or were added to the draft document for compliance with State law. A list of all programs can be found on pages HP -7 through HP -17 of the Draft Housing Element (Attachment 2).

Part 2: Background Report
The Background Report identifies the nature and extent of Indian Wells' housing needs, including those of special populations, potential constraints to housing production, potential housing resources (land and funds), and energy conservation opportunities. An overview of the Background Report is provided below:

1. Introduction: The Introduction outlines the setting and history of the City and sets an outline of State Housing Law assessment and inventory requirements.

2. Accomplishments Under 5th Cycle Housing Element: This section reviews and evaluates the City's progress in implementing the 2013-2021 Housing Element.

It reviews the results and effectiveness of programs, policies, and objectives from the previous Housing Element planning period (5th Cycle). This section also analyzes the difference between projected housing needs and actual housing production.

In the 5th Cycle for 2013-2021, the City was allocated a RHNA of 160 units. Of these, 40 were very low, 27 low, 31 moderate, and 62 above moderate. During the 2013-2021 RHNA period, 309 units were constructed in the City, nearly twice the total RHNA allocation for the 5th Cycle; however, all of the new units were in the above -moderate income category (refer to Table 5-1, page BR -63 of Attachment 2).

In evaluating the 5th Cycle Housing Programs, it can be shown that the Oty took several significant steps to promote housing during the prior planning period. As was demonstrated throughout the State, it was difficult for local governments to meet their fair share housing goals for lower and moderate - income housing (i.e. the lower income RHNA allocation). Cities generally have limited financial and staffing resources and require substantial state and/or federal assistance to implement such programs. These resources have not been available at the levels necessary to support the City's lower income housing needs, or for-profit and non-profit housing developers and agencies. Even with these challenges, the Background Report justifies how the City's programs were successfully implemented and the Oty accomplished the majority of its Housing Plan goals and objectives.

For example, 5th Cycle Program I I B1.A Rehabilitation and Preservation, the City's housing rehabilitation program, continued to refer property owners for rehabilitation assistance including rebates, grants, and loans through outside programs provided by utility providers and other organizations. This program has been included as Program 1 in the 6th Cycle.
255

1. Housing Needs Assessment: The Housing Needs Assessment is intended to assist Indian Wells in developing housing goals and formulating policies and programs that address local housing needs. This section examines general population and household characteristics and trends, such as age, race and ethnicity, employment, household characteristics and size, household income, and special needs. Characteristics of the existing housing stock (e.g., housing type, vacancy rate, housing age and condition, overcrowding, and costs) are also addressed. The Housing Needs Assessment also addresses whether assisted housing projects are at risk of converting to market -rate projects.

Lastly, the City's projected housing growth needs based on the adopted Regional Housing Needs Assessment are examined.

The data for this section focuses on the 5th Cycle period 2013-2021 and utilizes several sources, such as U.S. Census, interviews with key agencies and organizations, and SCAG and HCD data to describe demographic and housing conditions. Overall, the data indicates that population growth has increased since 2010 (9%) albeit at a lower growth rate than Riverside County. The median age of City residents remained steady but is significantly higher than the County (67.9 years vs. 35.3 years). Race/ethnicity is mostly all white (94.1%). Homeowner households are generally headed by someone above middle -age, with 65.3% of homeowner households headed by a resident over 65 years of age. In 2018, the majority of households consisted of 2 to 4 persons with an average of 1.92 persons per household in Indian Wells compared to

3.27 persons in the County. From 2000 to 2018, the median household income increased by 11.2% to $104,522 and the per capita income increased by 30.2% to $99,206.

The level of poverty in a jurisdiction often influences the need for housing to accommodate those persons and families in the very low and low-income categories. The 2014-2018 ACS data indicates that 80 (4.3%) of all Indian Wells families and 364 individuals (6.8%) had incomes at or below the poverty level. To address the range of needs for low-income households, the City will implement targeted programs (refer to the Housing Flan in Attachment 2). For example:
• Program 15: Section 8 Housing Choice Vouchers
• Program 16: Support for Persons Experiencing Homelessness

4. Constraints: This section provides a review of potential constraints to housing development or conditions that limit the amount or timing of residential development based on both governmental and non -governmental conditions.

Government regulations can constrain the supply of housing available in a community if the regulations limit the opportunities to develop housing, impose requirements that unnecessarily increase the cost to develop housing, or make the development process so arduous as to discourage housing development.

Non -governmental constraints may include land prices, construction costs, and financing. While local governments cannot control prices or costs, identification of these constraints can be helpful in formulating housing programs. 256

The constraints section outlines the City's zoning for permitted residential uses.

The City currently accommodates a wide variety of conventional and special needs housing, including single-family dwellings, duplexes, multifamily, ADUs, manufactured housing, senior housing, transitional and supportive housing, and single -room occupancy housing. Parking requirements for residential uses are based on the type of use and are consistent with neighboring cities. The City provides development incentives for projects that include affordable housing units and may waive or reduce the parking requirements for such projects.

The time and cost of permit processing and project review can be a constraint to housing development if significant review is required. While review time is required for projects based on complexity and environmental status, less complex and small infill projects can often be approved administratively and/or take a shorter time to obtain appropriate approvals. The Qty has and continues to take proactive steps to facilitate an efficient development review process.

5. Housing Resources: This section provides an overview of the land resources available for housing development and adequate sites to address the City's RHNA allocation. It also describes the financial and administrative resources available to support the development of housing.

Since the RHNA uses July 1, 2021 as the baseline for growth projections for the 2021-2029 planning period, the Qty may count housing units that have been developed, are under construction, and/or have received their building permits after July 1, 2021, toward their RHNA obligation. The City may also count projects that are approved/entitled but not yet built or under construction. Since July 1, 2021, 17 housing units have been developed, are under construction, or have received building permits. Additionally, 233 units have been approved/entitled and are expected to be developed within the planning period of the 6th Cycle. These credits toward meeting the City's RHNA obligation amount to a total of 250 units. These can be deducted from the total allocation of 382 units. However, a surplus of 99 above moderate -income units cannot be deducted from the remaining allocation; therefore, 231 units remain for the 6th Cycle (refer to Table 5-3 on page BR -70 of Attachment 2). As of November 2021, the City has already achieved approximately 40% of its overall RHNA obligation with housing units constructed, under construction, or approved/entitled.

In the draft Housing Element presented to the public and to the State for review, the City identified an opportunity to accommodate a portion of its RHNA through the preservation of affordable units at Indian Wells Villas potentially at -risk of converting to market -rate units during the planning period (October 15, 2021 through October 15, 2029). Upon further review of State law, the City has decided to remove the preservation of at -risk units as part of the City's strategy towards meeting its 6th Cycle RHNA. The affordability restrictions for 257

these units have an earliest date of expiration of 2031, which falls outside of the housing element planning period. Although it may be possible that these units could qualify, the City is not confident that it can meet all State -required findings to credit these units towards its 6th Cycle RHNA and in preparation to receive State certification of its Housing Element, the Qty believes that not relying on these units is the most acceptable approach.

In addition, in the draft Housing Element presented to the public and to the State for review, the City identified a 12 -acre Oty-owned property near the Indian Wells Tennis Garden as a site available to meet a portion of the City's remaining RHNA. Based on comments provided by HCD, this site is not feasible for development during the planning period and has been removed from the inventory.

After removing these strategies, the Oty has determined that there is not sufficient land available with the required land use and zoning designations to accommodate its remaining RHNA. The City has updated the draft Housing Element to include a new program to create an Housing Opportunity Site Overlay, which will allow a maximum density of 24 du/ac for projects that are 100% affordable, and apply this overlay to at least 8 acre of APN 633360002, a 34 -acre vacant and undeveloped parcel located at the northeast corner of Miles Avenue and Warner Trail designated for Medium Density Residential. The application of this new Overlay is projected to yield a capacity of 128 units.

HCD recommends that the Oty maintain a surplus of approximately 10% of units, especially in the lower -income categories, to facilitate ongoing compliance with No Net Loss requirements.

TABLE 2: UPDATED RHNA

SITE INVENTORY
(SEE TABLE
5-4 IN DRAFT

HOUSING ELEMENT)
Extremely Very
Lowery Low
Income (0-50%
AMI)
Low Income
(51-80%
AMI)
Moderate
Income (81-
120%AMI)
Above Moderate
income (121%+
AMI)
Total
2021-2029 RHNA Targets
117
81 91
93 382
Credits (Entitled/Under
Construction Projects with
occupancy post 6/30/21)
2 1
55 194
252
Strategy 1: Proposed Project
(Abode Communities)
50 36
13 1
100
Strategy 2: ADUs
6 8
8 2
24 Existing Site Capacity
58 45
76 197
376
RHNA Shortfall
(59)
(36)
(15)
0 (s 1rOpl j s of
110
Strategy 3: Rezone
Opportunity Site
64 46
17 1
128
Total Capacity for the 6th Cycle
122
91 93
198
504
258

(Existing and Rezone Site)
Surplus
5 10
2 105
122
Percent Surplus
6%
112%
31%

6. Affirmatively Furthering Fair Housing: All housing elements due on or after January 1, 2021, must contain an Assessment of Fair Housing (AFH). Public agencies must now examine existing and future policies, plans, programs, rules, practices, and related activities and make proactive changes to promote more inclusive communities. This includes race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. This section includes outreach, an assessment of fair housing issues, a site inventory analysis (also se Appendix A of Attachment 2), identification of contributing factors, and goals and actions.

A robust outreach and public participation effort was undertaken as part of the Housing Element update, including a community workshop held in April 2022 to review findings provided by HCD and to further discuss fair housing issues in Indian Wells. This included the following outreach: a project website dedicated to the larger General Ran update, but which focused in part on the Housing Element, virtual and in -person community workshops, stakeholder interviews, advertisements, and emails. The City staff and consultant solicited input from the public throughout the year -long process. Interviews were conducted with and notification was ongoing to local housing service providers that represent lower income and special needs populations, such as the organization Lift to Rise.

An overview of available federal, state, and local data to analyze fair housing issues in Indian Wells is provided in the Affirmatively Furthering Fair Housing (AFFH) Analysis section of the draft. This data and existing conditions in the community provided an informed perspective that allowed the goals, policies, and programs in the Housing Ran to affirmatively further fair housing. For example, Program 14: Fair Housing Policy Procedures and Program 18:

Affirmatively Furthering Fair Housing Outreach and Coordination Program include objectives to facilitate equal and fair housing opportunities by implementing actions to fair housing for all through provision of information, coordination, and education to address fair housing issues.

Appendix A:

Housing Sites Inventory: State law requires local governments to prepare an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. The inventory of land suitable for residential development is used to identify sites that can be developed for housing within the planning period.
259

The City of Indian Wells' 6th Cycle residential capacity falls into three categories (after the preservation strategy and Qty -owned site were removed, see the discussion of Housing Resources as part of the Background Report overview):

1. Proposed project: Abode Communities Affordable Housing;

2. Accessory dwelling units;

3. Housing Opportunity Site Overlay (New)
Appendix B:

Public Engagement Summary: The summary outlines the opportunities for the community and key stakeholders to have provided feedback on existing housing conditions, housing priorities, priority areas for new residential growth, and topics related to fair housing. It is noted that the City worked diligently to engage the community in safe and appropriate ways during the COVI D-19 pandemic when traditional in -person activities were not possible to conduct.

As indicated above, City staff and the consultants undertook outreach dedicated to meeting the future housing needs of Indian Wells residents. This outreach was completed as part of the City's ongoing comprehensive General Plan Update, which was includes a series of community workshops and stakeholder interviews.

Schedule
The Draft Housing Element was submitted to HCD on December 2, 2021. HCD had 60 days to review the document and comments were received on January 31, 2022. These have been incorporated into the updated draft. Once the Housing Element is adopted, the final document will be submitted back to HCD for review, and ultimately, certification.

Until recently, there was no penalty for not submitting the Housing Element by October 15, 2021, as long as the City had an adopted Housing Element within 120 days, or by February 12, 2022. However, AB 1398 was approved during the last legislative session and became effective on January 1, 2022. This bill modifies the penalties for not having an adopted and certified housing element within the 120 -day period. Cities that have not received a letter from HCD finding the housing element in substantial compliance with State law (i.e. a certification letter) and adopted the housing element by February 12, 2022, will be required to complete any necessary rezoning by October 15, 2022. This is a change from recent regulations which provided up to three years for cities to complete rezoning of sites to accommodate the RHNA. The City of Indian Wells has identified the need to rezone 8 acres using the new Housing Opportunity Site Overlay to accommodate its remaining RHNA, and as such this penalty does apply. It should be noted that of the 197 jurisdictions in the SCAG region, only six had an adopted and certified Housing Element by the February 12, 2022 deadline; the remaining 191 jurisdictions, including Indian Wells, are subject to this new accelerated rezoning requirement. The Qty continues to work expeditiously to adopt its updated Housing Element and receive certification in a timely manner to comply with State Housing Law and remain competitive for future grant funding opportunities.
260

EN VI RONMENTAL:

This action has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the environmental regulations of the City. The City acting as lead agency has determined the Housing Element Update to be exempt from CEQA in accordance with Section 15061(b)(3) of the CEQA Guidelines because the activity is governed by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the adoption of this policy document would have a significant effect on the environment, directly or indirectly.

ATTACH M EN TS:

1. Resolution 2022-31

2. Draft 2021-2029 Housing Element
261

At Dais: Public Hearing Item #9C
Housing Element
Draft2o21-
2029 Housing
Element
Indian Wells City Council
June 2, 2022

Housing
Element
Update
(GPA 22-01)
Timeline
Housing Element Update Timeline
• Work with
SCAG to
determine
local housing
responsibilities
• Virtual
Community
Workshop
• Evaluate
existing
conditions
• Review
existing plans
and programs
• Prepare Draft
Housing
Element
• Public Review
of Draft
Housing
Element
• State Review
of Draft
Housing
Element
• Community
Meeting
• Prepare
Revised Draft
2020 Jan -Mar 2021 Apr -Dec 2021 Jan -April 2022
Key Dates:

Virtual CommunityVisioning Workshop: November 18, 2020
Public Review of Draft: Dec 2, 2021 — Jan 3, 2022
HCD Review of Draft: Dec 3, 2021— Jan 31, 2022
Receipt of HCD Findings on Draft: Jan 31, 2022
CommunityWorkshop:April 11, 2022
• Circulate for
Revised Draft
for Public
Review
• Public
Hearings
• State Review
of Adopted
Element and
Certification
Spring/
Summer 2022

Opportunities
for Public
Involvement
The City has creatively implemented a meaningful outreach program while adhering to public health and safety measures :

Advertisements (social media/hard copy)
Stakeholder list to solicit input
Housing Survey (electronic and hard copy)
Public Draft Housing Element
Community Workshop in -person at the Indian Wells Golf
Resort on April 11, 2022 (sites inventory and fair housing)

Housing
Element
Background

Whatisa
Housing
Element?
The Housing Element is part of the General Plan and looks at housing needs within Indian Wells
It lays out the City's housing policies and identifies goals and programs that guide housing related actions
Each City and County in California is required to update its Housing Element periodically; Indian Wells must update it every eight years
As part of the Housing Element, Indian Wells must plan to accommodate its "fair share" of regional housing (RHNA)

Our Role in
Regional
Housing
Indian Wells RHNA for the 2021-2029 Planning Period is 382 units Half of the City's RHNA is dedicated to Very Low or Low -Income Households
Very Low -Income Households (inclusive of 117
extremely low-income households)
Low -Income Households
81 Moderate -Income Households
93 Above Moderate -Income Households 83
Tota l
382
Source: Southern California Association of Governments, 6th Cycle Final RHNA Allocation Plan

7 Structure of
the Draft 2021-
2029 Housing
Element
Part 1— Housing Plan
Goals and Policies
Housing Programs
Quantified Objectives
Part 2 — Background Report
5th Cycle Accomplishments
Housing Needs Assessment
• Constraints to Housing Development
• Housing Resources (describes RHNA strategy)
Assessment of Fair Housing and AFFH Analysis

Structure of
the Draft 2021-
2029 Housing
Element
Appendix A: Site Inventory
Parcel list of sites to accommodate the RHNA
Appendix B: Public Engagement Summary
List of efforts to engage the public in preparation and review of the Draft Housing Element

Housing
Programs
The Housing Plan includes 20 Programs to implement the City's housing goals and policies
Organized into five topic areas:

Conservation and Improvement

2. Development of Housing

3. Remove Government Constraints

4. Promote Equal Housing Opportunities

5. Energy Conservation
11 programs carry-over from 5th Cycle Housing Element
9 new programs to address State requirements

State Findings
Findings letter received on
January 31, 2022
Identifies revisions
necessary to comply with
State Housing Law
STA"E OF CALI-ORNIA-BUSINESS CONSUMER SERVICES AND HOUSING AGENC4

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2920 W EE Camino Nome . Suite 5'O
Sacramento CA 95935
(918) 7f13.%911 I FAX (9181?85-7453
January 31, 2022
Jon Berg, Director
Community Development Department
City of Indian Wells
44-950 El Dorado Drive
Indian Wells, CA 92210
Dear Jon Berg:

GAVIN NEVJSOM Gamtp/ l`
RE: City of Indian Welts' 6t" Cycle (2021.2029) Draft Housing Element Update Thank you for submitting the City of Indian Wells' draft housing element received' for review on December 2, 2021. Pursuant to Government Code section 65565, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review.

The draft element addresses many statutory requirements, however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

As a reminder, the City's 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 61h cycle. The City's 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

For your information. pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower -income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government's housing element will no longercomply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bit (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD's

HCD Findings
on Draft
Housing
Element
3 4
Findings can generally be grouped into four categories
RHNA Strategy/Sites Inventory
Fair Housing
Additional Required Analysis
Modifications to Programs

Current Progress Towards the RHNA
Projects constructed/under construction since 7/1/2021
Projects approved/entitled but not yet built
Accommodating Remaining RHNA
Proposed Project (Abode Communities)
Accessory dwelling units/junior accessory dwelling units Housing Opportunity Site
The City has updated its draft RHNA Strategy to remove Strategy 3: Preservation of At -Risk Units and Strategy 4: City -Owned Parcel due to new guidance from the State

State Review
of Site
Inventory
GENERAL PLAN 2040
IL

INDIAN WELLS
0 a

EL PACE'
RRsrRr��`
VI4 Arse
Housing Element Sites
Circulated for Public Review
IA'�aRuRRR
4014,01
aaTM nvr rlarvzE
9N GSYDR —
n�
UANsrIEI➢ °R

FAI WAY DR
11 t--`•FRED•WARINA DR --

INDIAN WELLS
HWY 111
a

MILES AVE
o AVENUE 5°
Legend
L_I City of Indian Wells
Other Incorporated Area
Housing Element Site
Proposed Project, Adobe
A I Gommun11losAffordable
Housing, 633-410-039
HCD finds that
Strategy B:

Preservation of At -
Risk Units at Indian
Wells Villas
(potential for 65
units) and Strategy
C: City -Owned 12 -
acre site (potential
for 102 units) are
not acceptable

Updated Housing Element Sites
GENERAL PLAN 2040
NM ttil

INDIAN 'WELLS
.1
NurCsa`w
,I�ML[rMHw ..ti ss7
tee,
1AW;l"M�1' 4UIIAVL
ND DR

FAIRWAY DR
4 5AIf1NA
N''''ltt -•FRPf).WARING Otk.

INDIAN WLLLS
marl.,
i1
Legend
1! 1 fey of Indian Welts
L_1
Other Incorporated
LiHonking Element Site
• Imam
New Program to
create Housing
Opportunity Site
Overlay and apply it
to 8 acres at Site A

Updated
Extremely
Very
Low/Very
Low Income
(o-50% AMI)
Low
Income
(51-80%
AMI)
Moderate
Income
(81-120%
AMI)
Above
Moderate
income
(121%+ AMI)
Total
2021-2029 RHNATargets 117
81 91 93 382
Credits (Entitled/Under
Construction Projects
with occupancy post
6/30/21)
Strategy 1: Proposed
Project (Abode
Communities)
Strategy 2: ADUs
2 8
55 8
194
1 2
252
100
24 Existing Site Capacity
58 45
76 197
376
RHNA Shortfall
(59)
(36)
(15)
o (surplus of
104)
110
Strategy 3: Rezone
Opportunity Site
64 46
1 128
Total Capacity for the 6th
Cycle (Existing and Rezone
Site)
122
91 93
198
504
Surplus
5 10
2 105
122
Percent Surplus
6%
112%
31%

1 Review and
Adoption
Process

Next Steps
State Department of Housing and Community Development
revises all Housing Elements before adoption
Submitted Draft Housing Element to HCD on December 3, 2021 Received comments on January 31, 2022
Planning Commission Hearing on May 18, 2022 (publicly noticed) City Council Hearing in June 2022
City will send Adopted Housing Element back to the State for a second review (required by State law)

Recommended
Action
Adopt:

A RESOLUTION OFTHE CITY COUNCIL OFTHE CITY OF INDIAN

WELLS, CALIFORNIA, APPROVING GENERAL PLAN
AMENDMENT NO. 2022-01 FOR THE 6TH CYCLE 2021- 2029

HOUSING ELEMENT AND FINDING THE PROJECTTO BE

EXEMPT FROM CEQA

ATTACHMENT #1
RESOLUTI ON NO. 2022-31

A RESOLUTI ON OF THE CI TY COUNCIL OF THE CI TY OF INDIAN

WELLS, CALI FORN I A, APPROVING GENERAL PLAN AMENDMENT
NO. 2022-01 FOR THE 6TH CYCLE 2021-2029 HOUSI NG ELEMENT AND Fl NDI NG THE PROJECT TO BE EXEMPT FROM CEQA
WHEREAS, the California Government Code requires that cities review and update their Housing Elements every eight (8) years, according to a schedule set forth by the State Department of Housing and Community Development ("HOD"); and WHEREAS, the Housing Element sets forth the housing policies for the Qty, facilitates the preservation and development of housing, and establishes programs to accommodate the Oty's share of the regional housing needs in southern California; and WHEREAS, the Qty of Indian Wells has been assigned an allocation of 382 new housing units as its share of the Regional Housing Needs Assessment ("RHNA") in southern California; and
WHEREAS, in accordance with State law, the Oty of Indian Wells has prepared a Draft Housing Element for the 6th Cycle covering the 2021-2029 period in accordance with California Government Code Sections 65580-65589.8 attached hereto as Exhibit A; and WHEREAS, the 2021-2029 Housing Element complies with the requirements of State law and conforms to the purposes, intent, and provisions of all the elements of the City's General Ran; and
WHEREAS, in accordance with Government Code Section 65583, the Qty finds that the 2021-2029 Housing Element complies with the duty to Affirmatively Further Fair Housing; and
WHEREAS, the Qty of Indian Wells shall comply with its responsibility to maintain adequate sites to accommodate its remaining Reginal Housing Needs Assessment (RHNA) at all income levels for the duration of the planning period; and WHEREAS, the Oty has reviewed the project's potential effects on the environment and has recommended that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3) of the CEQA Guidelines because the activity is governed by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment; and WHEREAS, in preparation of the 2021-2029 Housing Element, and in conjunction with the Qty's ongoing comprehensive General Ran update, the Qty developed a public engagement program that included a project website dedicated to the General Ran Update including the Housing Element, virtual community workshops, stakeholder 26529.00000\33932745.2
262

Qty of Indian Wells
Resolution No. 2022-31

Page 2 ends

interviews, advertisements, and emails, all in an effort to educate the community about housing issues and provide opportunities and to gather input on housing -related topics; and
WHEREAS, on December 2, 2021, pursuant to Government Code section 65585(b)(1), the Qty submitted the Draft 2021-2029 Housing Element to the State of California Department of Housing and Community Development ("HCD"); and WHEREAS, HOD must review and provide comments on the Draft 2021-2029 Housing Element and the Qty must update the Draft 2021-2029 Housing Element in response to those comments in order to comply with State Housing Law; and WHEREAS, the 30 -day public review period began on December 3, 2021, during which time Qty residents and other stakeholders were afforded an opportunity to comment on the content of the Draft Housing Element; and WHEREAS, on May 18, 2022, at a duly noticed public hearing, the Ranning Commission recommended Qty Council Approval of the General Flan Amendment for the 6th Cycle 2021-2029 Housing Element; and
WHEREAS, notice of a public hearing of the Planning Commission of the Qty of Indian Wells to consider the General Ran Amendment for the 6th Cycle 2021-2029 Housing Element was given in accordance with applicable law; and WHEREAS, on June 2, 2022, a duly noticed public hearing on the General Ran Amendment for the 6th Cycle 2021-2029 Housing Element was held by the Qty Council; and
WHEREAS, after careful consideration of the staff report, public testimony, and all of the information presented at the hearing, including project materials and exhibits, the Ranning Commission finds as follows:

1. The proposed General Ran Amendment for the 6th Cycle 2021-2029 Housing Element is internally consistent with the General Plan; and

2. The proposed General Plan Amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City; and

3. The proposed G neral Ran Amendment will maintain the appropriate balance of land uses within the City.

NOW, THEREFORE, BE I T RESOLVED, DETERMI NED AND ORDERED BY THE CI TY COUNCI L OF THE CI TY OF I NDI AN WELLS AS FOLLOWS:
26529.00000\33932745.2
263

Qty of Indian Wells
Resolution No. 2022-31

Page 3 ends

SECTI ON 1. The Recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.

SECTI ON 2. The City Council Fl NDS that the General Plan Amendment is exempt from the California Environmental Quality Act in accordance with Section 15061(b)(3) of the CEQA Guidelines because the activity is governed by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the adoption of this policy document would have a significant effect on the environment, directly or indirectly.

SECTI ON 3. The City Council ADOPTS Resolution No. 2022-31 approving General Ran Amendment No. 2022-01 for the 6th Cycle 2021-2029 Housing Element inclusive of revisions necessary in order to comply with State Housing Law, attached hereto as Exhibit "A" and incorporated herein by reference.

SECTI ON 4. The Qty Manager or his designee is authorized to make minor modifications to the Housing Element to address comments provided by the Department of Housing and Community Development on this Housing Element, provided that the modifications would not exceed the total amount of development accommodated by the Housing Element prior to revisions and would not result in new actions by the Qty that would require a commitment of $20,000 or greater.

SECTI ON 5. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED by the City Council of the Qty of Indian Wells, California, at a regular meeting held on this 2nd day of June 2022.

DANA REED
MAYOR
26529.00000\33932745.2
264

Qty of Indian Wells
Resolution No. 2022-31

Page 4 ends

CERTI Fl CATI ON FOR RESOLUTI ON NO. 2022-31
I, Angelica Avila, Qty Clerk of the City Council of the Oty of Indian Wells, California, DO HEREBY CERTI FY that the whole number of the members of the Qty Council is five (5); that the above and foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the Qty of Indian Wells on the 2nd day of June 2022, by the following vote:

AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELI CA AVI LA TODD LEI SHMAN

CI TY CLERK CI TY ATTORNEY
26529.00000\33932745.2
265

Qty of Indian Wells
Resolution No. 2022-31

Page 5 ends

EXHIBIT "A"
DRAFT 2021-2029 HOUSING ELEMENT
(Following this page)
26529.00000\33932745.2
266

isik '1°11
2021-2029

HOUSING

ELEMENT
May 2022
Yle�6 0./1. '. ti 14, Yf
144°411 141
Final Draft
W
41110:

City of Indian Wells
44-950 Eldorado Drive
Indian Wells, CA 92210
Fm .,
_ 4aisg
*41

268

FINAL DRAFT
2021-2029

HOUSING ELEMENT
PREPARED FOR: CI TY OF I NDI AN WELLS
44-950 Eldorado Drive
Indian Wells, CA 92210
Contact: Jon Berg 1 Community Development Director
(760) 776-0229
www.cityofindianwells.org
PREPARED BY: DE NOVO PLANNI NG GROUP
180 E Main Street Suite 108
Tustin, CA 92780
269

270

2021-2029 HOUSING ELEMENT ORGANIZATION
Part 1: Housing Plan
Part 1 of the 2021-2029 Housing Element is the City's "Housing Plan", which includes the goals, policies, and programs the City will implement to address constraints and needs. The City's overarching objective is to ensure that decent, safe housing is available to all current and future residents at a cost that is within the reach of the diverse economic segments which comprise Indian Wells.

Part 2: Background Report
Part 2 of the 2021-2029 Housing Element is the "Background Report" which identifies the nature and extent of Indian Wells' housing needs, including those of special populations, potential housing resources (land and funds), potential constraints to housing production, and energy conservation opportunities. By examining the City's housings, resources, and constraints, the City can then determine a plan of action for providing adequate housing, as presented in Part 1: Housing Plan. In addition to identifying housing needs, the Background Report also presents information regarding the setting in which these needs occur. This information is instrumental in providing a better understanding of the community, which in turn is essential for the planning of future housing needs.

Appendix A: Housing Sites Inventory
The Housing Element must include an inventory of land suitable and available for residential development to meet the City's regional housing need by income level. The California Department of Housing and Community Development (HCD) requires that the Housing Sites Inventory be prepared using a State -approved format, included here as Appendix A.

Appendix B: Public Engagement Summary
As part of the Housing Element Update the process, the City hosted numerous opportunities for the community and key stakeholders to provide feedback on existing housing conditions, housing priorities, priority areas for new residential growth, and topics related to fair housing. Public engagement was facilitated in both English and Spanish to further engage the Indian Wells community. Public participation played an important role in the refinement of the City's housing goals and policies and in the development of new housing programs, as included in Part 1: Housing Plan. The public's input also helped to validate and expand upon the contextual information included in Part 2: Background Report. The City's efforts to engage the community in a meaningful and comprehensive way are summarized in Appendix B.
271

272

GENERAL PLAN 2040
PART 1

HOUSING PLAN

INDIAN WELLS
273

274

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Table of Contents

1. HOUSING PLAN INTRODUCTION 3

2. GOALS AND POLICIES 3
A. CONSERVATION AND IMPROVEMENT OF HOUSING 3
B. DEVELOPMENT OF HOUSING 4
C. REMOVAL OF GOVERNMENT CONSTRAINTS 5
D. EQUAL HOUSING OPPORTUNITIES 6
E. ENERGY CONSERVATION 6

3. HOUSING PROGRAMS 7
CONSERVATION AND IMPROVEMENT IMPLEMENTATION PROGRAMS 7
DEVELOPMENT OF HOUSING PROGRAMS 10
REMOVE GOVERNMENTAL CONSTRAINTS 16
PROMOTE EQUAL HOUSING OPPORTUNITIES 19
ENERGY CONSERVATION 22

4. QUANTIFIED OBJECTIVES 23
Housing Element Housing Plan I Page HP -1
275

City of Indian Wells 2021-2029 Final Draft Housing Element This page intentionally left blank.

Housing Element Housing Plan I Page HP -2
276

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

1. Housing Plan Introduction
The Background Report of the Housing Element establishes the housing needs, opportunities, and constraints in the City of Indian Wells. The Housing Plan presented in this section sets forth the City's goals, policies and programs to address Indian Wells' identified housing needs.

2. Goals and Policies
The following goals and policies focus on the maintenance and provision of a variety of housing in terms of type, affordability, and style. The Housing Plan sets forth goals and policies to address the following issue areas: 1) conserving and improving existing housing; 2) development of housing; 3) removing constraints; 4) promoting equal housing opportunity; and 5) energy conservation.

A. Conservation and Improvement of Housing
GOAL 1: Conserve and improve the condition of the existing housing stock.

Policy 1 .1 : Continue enforcement of the codes and regulations establishing minimum construction standards.

Policy 1.2: Encourage maintenance and repair of existing housing to prevent deterioration within the City.

Policy 1.3: Monitor the status of at -risk affordable rental housing units, proactively work with potential nonprofit purchasers/managers as appropriate and explore funding sources available to preserve the at -risk units.

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GOAL 2: Support and encourage the development of housing affordable for all income segments of the population.

Policy 2.1: Maintain adequate capacity to accommodate the City's unmet Regional Housing Needs Allocation (RHNA) for all income categories throughout the planning period.

Policy 2.2: Continue to provide affordable housing opportunities in Indian Wells through a density bonus incentive for the development of lower and moderate -income units.

Policy 2.3: Encourage private entities (both non-profit and for-profit) to participate in attaining housing goals.

Policy 2.4: Encourage residential development that provides a range of housing types in terms of cost, density, unit size, and configuration.

Policy 2.5: Continue to allow accessory dwelling units and junior accessory dwelling units as a means of providing additional affordable rental housing opportunities.

Policy 2.6: Assist with the development of housing that targets the needs of special populations, including the elderly, disabled, farmworkers, and homeless.

Policy 2.7:

Allow by -right approval for housing developments proposed for non -vacant sites included in one previous housing element inventory and vacant sites included in two previous housing elements, provided that the proposed housing development consists of at least 20 percent lower income and affordable housing units.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element C. Removal of Government Constraints
GOAL 3:

Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement and development of housing.

Policy 3.1: Continue to utilize zoning standards and overlay districts that facilitate the development of affordable housing units.

Policy 3.2: Provide reasonable accommodation for housing for persons with disabilities.

Policy 3.3:

Periodically review City development standards to ensure consistency with the General Plan and to ensure high -quality affordable housing.

Policy 3.4: Monitor State and federal housing -related legislation, and update City plans, ordinances, and processes as appropriate to remove or reduce governmental constraints.

Policy 3.5:

Regularly identify and evaluate the impact of nongovernmental constraints on housing development and implement programs to reduce negative impacts.

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City of Indian Wells 2021-2029 Final Draft Housing Element D. Equal Housing Opportunities
GOAL 4:

Policy 4.1:

Policy 4.2:

Policy 4.3:

Policy 4.4:

Promote housing opportunities for all persons regardless of race, religion, sex, age, marital status, familial status, ancestry, national origin, color, source of income, sexual orientation, or any other arbitrary factors.

Promote fair housing practices throughout the City.

Promote a variety of housing types to meet the special needs of persons with physical and developmental disabilities, elderly households, and others who may need specialized residential living arrangements.

Strengthen opportunities for participation in the approval process for all housing projects, including affordable housing.

Assist in affirmatively furthering and enforcing fair housing laws by providing support to organizations that provide outreach and education regarding fair housing rights, receive and investigate fair housing allegations, monitor compliance with fair housing laws, and refer possible violations to enforcing agencies.

E. Energy Conservation
GOAL 5: Encourage energy conservation in new and existing housing stock.

Policy 5.1:

Incorporate into City codes, when feasible, planning and building standards that contribute to minimizing the consumption of non-renewable resources for housing construction and rehabilitation.

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3. Housing Programs
This section describes the programs that will implement Housing Element goals and policies.

The housing programs define the specific actions the City will undertake in order to achieve the goals for the current planning period. Pursuant to State law, the programs address the following issue areas:

1. Conserve and improve the existing housing stock;

2. Develop housing;

3. Minimize the impact of constraints on housing production; and

4. Assure equal housing opportunity for all residents.

Conservation and Improvement Implementation Programs

1. Rehabilitation
Although no housing units were determined to need major rehabilitation during this planning period, there are properties in need of minor repairs.- Property owners may be eligible for rehabilitation assistance including rebates, grants and loans, through outside programs provided by utility providers and other organizations. The City will refer property owners to these programs upon inquiry or with proactively through code enforcement programs.

The City will prepare a "Good Neighbor Guide" that describes how residents can be good neighbors by maintaining a property in good condition. In this guide, the City will identify common types of minor repairs that residents might be interested in completing and connecting the type of repair with a specific funding opportunity. Through this process, the City will also proactively outreach out to nonprofit organizations to solicit feedback and support in preparing the guide as well as identify potential additional partnerships and resources available to help residents complete minor repairs. The Good Neighbor Guide will be distributed to all residents of Indian Wells and shared online and in hard copy.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Community Development Department
General Fund; Low Moderate Income Housing Asset Fund
(LMI HAF)
Refer property owners to applicable agencies/organizations for rehabilitation assistance
OngoingPrepare and distribute Good Neighbor Guide by
December 2022; update funding and resource information to address common minor repairs on the City's website; annual proactive outreach to nonprofit organizations to solicit support in helping to inform and implement minor repairs; encourage the rehabilitation of at least 4 homes pera year (32 during the planning period) distributed across very low, low, and moderate income households.

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2. Preservation of At -Risk Units
he Indian
Wells Villas projects as follows.
that thc Indian Wclls Villas units arc prcscrvcd as affordablc housing.

B. A minimum of 29 vcry low, 20 low, and 13 modcratc incomc units will be prcscrvcd. required subsidy Icvcls identified in Scction 31 of thc Background Rcport to providc these units at affordablc rcnts.
follows:

At thc time of prcscrvation, thc City will require long term affordability and reserved for occupancy by, persons of the same or lower income group as the current occupants for a period of at (cast 55 ycars.

Scction 65863.10(a)(3)(M)(iii) as it is a multifamily rcntal housing development bclow markct ratcs and which includes a multifamily rcntal housing of thc unit, as reflected by a rccordcd agreement with thc county or city.

The Housing Authority's affordable housing project, Indian Wclls Villas, affordablc low and vcry low
improvements nccdcd to maintain Indian Wells Villas in a safc and sanitary condition ovcr thc next 8 ycars. It is highly likely that thc Housing Authority will nccd to convcy thc property to a private entity who will convert to markct rate housing in 2031, or look at partncring with a non profit entity in thc 644 commit to rchabbing the property to maintain safe and sanitary conditions. iv. Thc Indian Wells Villas arc in decent, safe, and sanitary condition and t-h-re-ughout thc affordability period identificd in paragraph (i) above. v. Thc Indian Wclls Villas currcntly providcs affordable housing and the 29 vcry low, 20 low, and 13 modcratc incomc units identified for prcscrvation arc currcntly affordable to income qualificd households at thcsc incomc Icvcls.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Responsible A-gcncy:

City of Indian Wells H
�chcdu
Low Moderate Income Housing Assct Fund
c: October 1, 2024
The City of Indian Wells will implement the following programs on an ongoing basis to conserve the community's affordable housing stock.
a. Monitor Units At Risk: Monitor projects at risk of converting to market rate within the planning period.
b. Work with Potential Purchasers: Establish contact with public and nonprofit agencies interested in purchasing and/or managing units at risk. c. Tenant Education: The California Legislature passed AB 1701 in 1998, requiring that property owners give a nine -month notice of their intent to opt out of low-income restrictions. The City will work with tenants of at -risk units and provide them with information regarding tenant rights and conversion procedures. The City will also provide tenants with information regarding Section 8 rent subsidies through the Riverside County Housing Authority and other affordable housing opportunities. The City will implement State Preservation Notice Law (Gov. Code 65863.10, 65863.11, 65863.13) which requires owners to provide tenants and affected public entities (including the City) notices regarding expiring rental restrictions starting three years before expiration.
d. Proactive Contact: The City will contact property owners of units at risk of converting to market -rate housing within one year of affordability expiration to discuss the City's desire to preserve complexes as affordable housing. Participation from agencies interested in purchasing and/or managing at -risk units will be sought.

Coordinate with owners of expiring subsidies to ensure tenants receive the required notices at 3 years, 6 months, and 12 months, and 6 months, p -e -Fin accordance with California law.
e. Assist Tenants of Existing Rent -Restricted Units to Obtain Priority Status on Section 8 Waiting List: Work with the Riverside Housing Authority to place tenants displaced from at -risk units on a priority list for Section 8 rental assistance.

Responsible Agency: Community Development Department
Financing: CDBG Funds, and Section 8 Vouchers/ Certificates Program Objectives:

Monitor the status of affordable projects at risk of converting to market rate; will identify nonprofit organizations as potential purchasers/managers of at -risk housing units; explore funding sources available to preserve the affordability of projects at risk of converting to market rate or to provide replacement units; assist qualified tenants to apply for priority status on the Section 8 voucher/certificate program immediately should the owners of the at -risk project choose not to enter into additional Housing Element Housing Plan I Page HP -9
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City of Indian Wells 2021-2029 Final Draft Housing Element restrictions.

Schedule: Monitor at -risk units annually
Development of Housing Programs

3. Production of New Housing Units through Rezoning (Shortfall Program) The City has a 2021-2029 projected RHNA need of 382 housing units including 198 housing units for extremely low, very low, and low income households. The City will continue to monitor the sites currently designated by the City to accommodate its projected growth needs and use of the Affordable Housing Overlay. In addition, the City will prepare and adopt a new Housing Opportunity Site Overlay zone to accommodate residential development at densities of up to 24 du/ac for 100% affordable projects and to permit owner -occupied and rental multi -family uses by -right for projects with 20% or more units affordable to lower income households.

The City will rezone a site of at least 8 acres with the Housing Opportunity Site Overlay. The site identified for rezoning is at least 8 acres and no more than 10 acres of::APN 633360002, a vacant and undeveloped 34 -acre parcel located at the northeast cc ner of:Miles Avenue and Warner Trail. Pursuant to State Housing Element statutes (Govt Code section 65583.2(h)), sites identified for rezoning to address the City's lower income RHNA shortfall shall meet the following requirements:
• Permit owner -occupied and rental multi -family uses by-riaht for projects with 20% or more units affordable to lower income households
• Permit a minimum density of 20 units:per acre
• Allow a minimum of 16 units per site
• Accommodate at least 50 percent of the lower income
residential use only
need on sites designated for
Additionally the City will continue to provide incentives and flexibility in development standards to encourage affordable housing development as outlined in Section 21.12.040 of the City's Municipal Code and will continue to explore potential incentives and flexibility in development standards to encourage new housing construction within one year of the Housing Element Adoption. The City will proactively of reach out to the housing development community to assist in the evaluation of potential incentives.

The City understands the housing challenges of extremely low-income households, which are a subset of very low income households who earn 30 percent or less of the median income.

This income group is most likely to experience a housing crisis when faced with rent increases, foreclosure, or other adverse event. The City will collaborate with housing developers to seek state, federal, and other appropriate funds and incentives targeted for the development of housing affordable to extremely low-income households through this strategy and the strategy developed in Program 6.

Responsible Agency:

Financing:

Program Objectives:

Community Development Department
General Fund
Expand the locations for higher -density affordable housing development in the City; Eencourage the development of at least 30 extremely low income units; 80 very low income units, 72 Housing Element Housing Plan I Page HP -10
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element low income units; 54 moderate income units; and 93 above moderate income units.

Schedule:

OngoingWithin three years of Housing Element adoption, and no later than October 2024, amend the General Plan and Zoning Code to establish the Housing Opportunity Site Overlay in order to designate adequate candidate sites with the objective of meeting the City's remaining RHNA of 110 units. Annual
identification of available funding and proactive distribution of information to the development community; updates to the City's website to highlight incentives and flexibility in development standards available to affordable housing_
developers by October 2022.

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4. Residential Development Monitoring (No Net Loss)
To ensure adequate sites are available throughout the planning period to meet the City's RHNA at all income levels, and to assist developers in identifying appropriate sites for residential and mixed use developments, the City will monitor the depletion of residential acreage, and review proposed General Plan amendments, Zone Changes, Specific Plan Amendments, and development projects, to ensure an adequate inventory is available to meet the City's 2021- 2029 RHNA obligations. To ensure sufficient residential development capacity is maintained to accommodate the City's RHNA allocation, the City will develop and implement a formal ongoing (project -by -project) evaluation procedure pursuant to Government Code Section 65863 and will make the findings required by that code section if a site is proposed for development with fewer units or at a different income level(s) than shown in the Housing Element Site Inventory.

Should an approval of development result in a reduction of residential development capacity below the capacity needed to accommodate the remaining need for lower -income, moderate - income, or above -moderate -income households, the City, and potentially the applicant (in accordance with State law), will identify and, if necessary, rezone sufficient sites within 180 days to accommodate the shortfall and ensure "no net loss" in capacity to accommodate the RHNA allocation, consistent with State law. Any rezoned site(s) will satisfy the adequate site requirements of Government Code Section 65583.2 and will be consistent with the City's obligation to affirmatively further fair housing.

Responsible Agency: Planning Department
Financing: General fund
Program Objectives: Annually monitor the City's sites inventory and continued ability to accommodate the remaining RHNA.

Schedule: Ongoing implementation and annual monitoring and reporting throughout the planning period
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5. General Plan Update
The City of Indian Wells embarked on an update to its General Plan in 2020. As part of this effort, the City is undertaking a comprehensive update to its policy document and will prepare a program -level environmental impact report (El R) to streamline future development in Indian Wells. As part of this project, the City will identify vacant and underutilized sites in the City suitable for residential development and make this information publicly available by posting to the City's website and maintaining information at City Hall. This includes identification of City - owned sites identified to accommodate a portion of the City's RHNA. The updated General Plan will reflect the Housing Element's commitment to affordable housing. As the property owner, the City of Indian Wells has maximum control over its sites and is committed to encouraging the development of affordable housing. Through preparation and certification of the Program EIR associated with the General Plan, the City can streamline future development of affordable units on City -owned sites and on other properties that, by proximity to transit, schools, and other amenities, are preferred for affordable housing development. Specifically, the City's Land Use Element will designate these sites as suitable for the develolment of affordable housing and all Elements of the General Plan will recognize the City's responsibility to maintain adequate sites to accommodate its remaining RHNA at all income levels for the duration of the planning period in accordance with state law. The General Plan will also identify new goals, policies, and programs to support new development in the City, including residential development, to promote a more sustainable and equitable community.

Responsible Agency: Community Development Department
Financing: General Fund, grant programs, as available
Program Objectives: Updated General Plan and Program EIR Schedule: December 2022
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6. Evaluate Alternative Funding and Financing Mechanisms The City of Indian Wells will collaborate with private, non-profit, state and federal entities to investigate alternative methods for funding and financing the construction of new housing units and rehabilitation and preservation of existing units citywide. Indian Wells will establish continued communication with local, state and federal legislators to encourage the establishment of alternative funding and financing mechanisms. The City will identify an initial list of potential funding and financing mechanisms within six months of the Housing Element adoption and within one year prepare a strategy to seek for funding for housing construction and rehabilitation when appropriate and available. On a bi annualbiennial basis, the City will review and update the strategy as appropriate.

Through its General Plan Update, the City will work with an economic consultant to analyze the viability of different funding and financing mechanisms and will present the information to the City Council for consideration and direction. The results of this analysis will be included in the General Plan Update Economic Development Element and included as a program associated with implementation of the General Plan.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Community Development Department
General Fund
Update Stratcgy Bi Annuallyldentify and pursue alternative funding and financing mechanisms.

Evaluate Alternative Funding and Financing Mechanisms within 6 Months of the Housing Element Adoption; Develop Strategy within 1 Year of the Housing Element Adoption; Review and Update Strategy Bi-AnnuallyOngoing

7. Replacement of Affordable Units
Consistent with the requirements of Government Code Section 65583.2(g), development projects on sites in the housing inventory (Appendix A) that have, or have had within the past five years preceding the application, residential uses restricted with rents affordable to low- or very low-income households or residential uses occupied by low- or very low-income households, shall be conditioned to replace all such units at the same or lower income level as a condition of any development on the site, and such replacement requirements shall be consistent with Section 65915(c)(3).

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Community Development Department
General Fund
For all project applications, identify need for replacement of affordable housing units and ensure replacement, if required, occu rs.

Ongoing implementation and annual monitoring and reporting throughout the planning period
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

8. Accessory Dwelling Units
Accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) help meet the City's housing needs for all income levels and also provide a housing resource for seniors and low- and moderate -income households throughout the entire community, not just in any single geographic area.

The City of Indian Wells will amend its ADU Ordinance to be consistent with California Government Code Sections 65852.150 and 65852.2 and submit its Ordinance to HCD for review as required by state law. The City will continue to monitor and amend the ordinance as needed based on future changes to State law. The City will also continue to monitor the extent of ADU production to ensure that the ordinance modifications are successful and that the Housing Element goals can be met.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Planning Department
General fund
Amend the City's ADU Ordinance, send to HCD for review; survey and evaluate potential methods to encourage ADU
development throughout the community and adopt appropriate procedures, policies, and regulatory provisions. Monitor State law for future updates to ADU regulations and update the City's Development Code to be consistent with future updates as needed. Continue educating the community on the opportunity to develop ADUs and promote the development of ADUs
affordable to lower -income households. Continue to provide information about ADUs on the City's website and on public counters.

Amend ADU Ordinance and submit to HCD by October 2022.
biennial review of ADU production and affordability projections and based on the review of production and affordability, evaluate the City's housing inventory and, if projections are not consistent with those included in the Housing Element, take action within six months to maintain adequate ability to accommodate the City's remaining RHNA by income level
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9. Public Property Conversion to Housing Program/ City Owned Sites The City will maintain a list of surplus City -owned lands, including identification of address, APN, General Plan land use designation, zoning, current use, parcel size, and status of surplus land or exempt surplus land. The City will work with non -profits and other public agencies to evaluate the feasibility of transferring City -owned surplus lands that are identified as feasible for conversion to affordable housing and that are not committed to other City purposes for development of affordable housing by the private sector. The City will also etrtreach out to developers to advertise available sites, as they are identified. The inventory will be updated annually in conjunction with the APR. Any disposition of surplus lands shall be conducted consistently with the requirements of state law.

Responsible Agency: Planning Department
Financing: General fund
Program Objectives:

Schedule:

Maintain a list of surplus City -owned lands for the duration of the planning period; collaborate with developers of affordable housing to explore opportunities to develop affordable housing at City -owned lands.

Prior to disposing of any of the City -owned sites, the City shall comply with applicable Surplus Land laws and Surplus Land Guidelines issued by HCD, and consult with HCD regarding any questions. The City will evaluate whether to sell the sites or ground lease them to one or more developers.

Remove Governmental Constraints

10. Monitoring Potential Constraints
The City will periodically review City regulations, procedures and fees to identify any potential constraints to the development and maintenance of housing. The City will outreach to the development community to assist in this review. If the City finds that regulations, procedures and/or fees are a constraint to housing, the City will revise requirements or policies as necessary.

Responsible Agency:

Funding:

Program Objectives:

Schedule:

Community Development Department
General Fund
Review and revise the zoning and development standards if needed.

Ongoing implcmcntation and annual monitoring and rcporting throughout the planning periodAnnual review of City regulations, procedures, and fees to identify constraints; if constraints are identified, work to reduce or remove constraints within 1 year of identification.
1 1 . Monitoring Reasonable Accommodation Procedures
The City will evaluate adopted reasonable accommodation procedures annually and revise as appropriate to ensure consistency with fair housing requirements.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Responsible Agency:

Funding:

Program Objectives:

Community Development Department
General Fund
Review and revise reasonable accommodation procedures if needed.

Schedule: Annually

12. Development Guidelines and Procedures
The City shall maintain existing development guidelines, which specify the procedures, materials, time frames, and costs associated with various zoning and subdivision applications.

The objective is to provide potential developers with an informational package clearly explaining the development review procedure as well as the possible incentives available for affordable housing development.

Responsible Agency: Community Development Department
Funding: General Fund
Program Objectives: Provide information online and at the public counter.

Schedule: Annually

13. Development Code Amendments — Housing Constraints
The City shall update the Development Code to remove constraints to a variety of housing types and ensure the City's standards and permitting requirements are consistent with State law. The update shall address the following.

1. Low barrier navigation centers: The Development Code shall be updated to define and permit low barrier navigation centers consistent with the requirements of Government Code Sections 65660 through 65668, including treating low barrier navigation centers as a use by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses.

2. Agricultural worker housing: The Development Code will be updated to define agricultural worker housing and to identify that any agricultural worker housing consisting of no more than 36 beds in a group quarters or 12 units or spaces shall be deemed an agricultural land use and permitted in the same manner as agricultural uses consistent with Health and Safety Code Section 17021.6. The Development Code will also be updated to provide for streamlined, ministerial approval of agricultural worker housing that meets the requirements of Health and Safety Code Section 17021.8.

3. Streamlined and ministerial review for eligible affordable housing projects: The Development Code will be updated to ensure that eligible multifamily projects with an affordable component are provided streamlined review and are only subject to objective design standards consistent with relevant provisions of SB 35 and SB 330 as provided by applicable sections of the Government Code, including but not limited to Sections 65905.5, 65913.4, 65940, 65941.1, 65950, and 66300. State law defines objective design standards as those that "involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark Housing Element Housing Plan Page HP -17
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City of Indian Wells 2021-2029 Final Draft Housing Element or criterion available and knowable by both the development applicant and public official prior to submittal."

4. Transitional and Supportive: The Zoning Code shall be revised as necessary to ensure that transitional and supportive housing are allowed in residential and mixed -use zones in accordance with Government Code Section 65583(c)(3), and to allow eligible supportive housing in zones where multi -family and mixed uses are permitted in accordance with Government Code Sections 65650 through 65656.

5. Emergency shelter parking: The Development Code will be updated to require 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, in compliance with AB 139.

6. Employee Housing for Six or Fewer Employees. The DevelopmentCode will be updated in accordance with Health and Safety Code Section 17021.5 which requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. r7. Small Residential Care Home. The Development Code will be amended to define a small residential care home as a single-family residential ug ;..and itiorefore permitted in the NPR zone subject to a CUP, in order to maintain compliance with applicable state laws.

Responsible Agency:

Funding:

Program Objectives:

Schedule:

Community Development Department
General Fund
Revise the Development Code in accordance with this program by October 2023.

Development Code adoption in 2023
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14. Density Bonus Ordinance
The City will amend its Density Bonus Ordinance consistent with State law, including density bonuses and incentives for projects that contain 100% very low- and low-income units. The City will monitor State law updates which impact density bonuses and will update local plans and programs as necessary.

Responsible Agency:

Funding:

Program Objectives:

Schedule:

Planning Department
General fund
Update the Development Code; Promote the use of density bonus incentives to developers and provide technical assistance to developers in utilizing density bonus for maximize feasibility and meet local housing needs.

Development Code adoption in 2023; Ongoing implementation and annual monitoring and reporting throughout the planning period
Promote Equal Housing Opportunities

15. Fair Housing Policy Procedures
The City will maintain a listing of fair housing groups serving Riverside County and refer fair housing -related complaints to these groups. Fair housing policy procedures will be made available at City Hall, on the City's website and advertised in the City Newsletter on a periodic basis.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Community Development Department
General Fund
Provide information on fair housing services and policy at public counters and at City website and refer complaints to appropriate organizations.

Ongoing
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16. Section 8 Housing Choice Vouchers
The County of Riverside currently administers the Section 8 Rental Assistance program on behalf of the City. Based on future congressional appropriations, the County Housing Authority will apply for additional funding which will enable the Housing Authority to administer additional vouchers for families, elderly, and persons with disabilities over the Housing Element planning period. While the City is not authorized to administer a Section 8 program, the City will continue to provide referral services on behalf of the County and disseminate information to City residents. Qualified residents at both of the City's affordable housing properties (Indian Wells Villas and Mountain View Villas) currently use Section 8 rental assistance.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

County of Riverside
HUD
Provide information on Section 8 Housing Choice Vouchers at City Hall and on the City's website and refer inquiries to the County of Riverside.

Ongoing

17. Support for Persons Experiencing Homelessness
The City will coordinate with the County of Riverside, the Coachella Valley Associations of Government, adjacent jurisdictions and local non -profits and service providers to address the needs of persons experiencing homelessness in the Coachella Valley.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Community Development Department
General Fund
Address issues of homelessness
Ongoing Meet at least annually with key organizations and stakeholders involved in addressing the needs of persons experiencing homelessness in the Coachella Valley; provide a presentation to the City Council following annual meetings.

18. Support for Persons with Developmental Disabilities The City shall support the ability of persons with developmental disabilities to live in integrated community settings by coordinating with the Inland Regional Center to identify the housing needs of persons served by the Center, promote opportunities for supportive living services and support efforts to eliminate barriers to housing for persons with developmental disabilities.

Responsible Agency:

Financing:

Program Objectives:

Schedule:

Community Development Department
General Fund
Adequate housing for persons with developmental disabilities Ongoing Meet with the Inland Regional Center at least annually to discuss the needs of persons with developmental disabilities; Housing Element Housing Plan I Page HP -20
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element provide information on the City's website and in hard copy at City Hall by October 2022; update information at least annually; proactively advertise available resources using the City website and other media platforms.

19. Affirmatively Furthering Fair Housing Outreach and Coordination Program To comply with California Government Code Sections 8899.50, 65583(c)(5), 65583(c)(10), 65583.2(a) (AB 686), the City will develop a plan to Affirmatively Further Fair Housing (AFFH).

The AFFH Plan shall take actions to address significant disparities in housing access and needs for all persons regardless of race, color, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, familial status, source of income, or disability, and any other characteristic protected by the California Fair Employment and Housing Act (Part 2.8, commencing with Section 12900, of Division 3 of Title 2), Government Code Section 65008, and any other state and federal fair housing and planning law. Specific actions include:

Fair Housing Education and Outreach (Addresses Moderate Priorty Contributing Factor) • In conjunction with the City's comprehensive General Plan Update, educate the community on what affordable/attainable housing means and who it benefits. • Annual training of City staff, including through coordination with local advocacy groups or the Fair Housing Council of Riverside County, on how to receive, log, refer, and follow-up on fair housing complaints. If resolution was not obtained for any complaints, refer complaint to HCD to ensure that affordable housing laws are actively enforced. • Biennial fair housing update to the City Council.
• Meet with developers annually to identify special housing needs in the City (i.e., housing for seniors or persons with disabilities) and encourage development of special needs housing that accesses the population of Indian Wells.
• Meet with disability service providers, including Desert Arc, to identify whether there is unmet demand anywhere in the City by March 2022. If an unmet demand is realized, work with providers to secure funding to expand services by March 2023.

Housing Mobility Enhancement
• Work with local orgaizptions and non -profits to encourage, expand. and publicize fair housing requirements°'as part of programs that provide rental assistance to lower income households.
• Actively recruiting residents from neighborhoods of concentrated poverty to serve or participate on boards. committees. and other local government bodies as positions are made available due to the regular appointment process or vacancies. • Provide education to the community on the importance of participating in the planning and decision -making process and completing Census questionnaires.

New Housing Choices (Addresses High Priority Contributing Factors) • Implement Program 3: Production of New Housing Units
• Implement Program 5: General Plan Update
• Implement Program 8: Accessory Dwelling Units
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City of Indian Wells 2021-2029 Final Draft Housing Element • On an ongoing basis, and at least annually, review land use and planning proposals to ensure that the City is replacing segregated living patterns with integrated and balanced living patterns, where applicable and feasible, and working to transform racially and ethnically concentrated areas of poverty into areas of opportunity without displacement.
• Implement Program 1: Rehabilitation
• Implement Program 20: Green Building Program
Displacement Protection
• Target community revitalization efforts to areas with lower opportunities levels and develop strategies to enhance mobility and reduce displacement. • Implement Program 2: Preservation of At -Risk Units
• Implement Program 7: Replacement of Affordable Units
• Implement Program 9: Public Property Conversion to Affordable Housing I ntcgration/ Segregation
income households.
cncurc that tnc city is replacing cegrcgatc Ewing patterns with intcgrateo an Asscss to Opportunity
made available duc t the regular app intmcnt pr cccc r vacancies. and decici n making pr cec., and c mplcting Census questi al es.

Responsible Agency:

Financing:

Program Objectives:

Timing:

Energy Conservation
Community Development Department; Housing Rights Center.

CDBG funds
Improve fair housing opportunities and response to complaints through implementing above actions. Follow-up on 100% of com plaints.

Ongoing implementation and annual monitoring and reporting throughout the planning period.

20. Green Building Program
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element The City will continue to support the development of green building practices in housing and sustainability programs by participating in the CVAG Green for Life Program and evaluate the feasibility of implementing local policies and programs consistent with the CVAG Green Building Program and the City's Climate Action Plan.

Responsible Agency:

Financing:

Program Objectives:

Timeline:

Community Development Department
General Fund; grant programs, as available
Promote energy conservation and green building.

Implementation throughout the planning period

4. Quantified Objectives
State law requires the Housing Element to include quantified objectives for the maximum number of units that can be constructed, rehabilitated or conserved. Policies and programs in the Housing Element establish the strategies to achieve these objectives. The City's quantified objectives are described under each program, and represent the City's best effort in implementing each of the programs. Assumptions are based on past program performance and funding availability, construction trends, land availability, and future programs that will enhance program effectiveness and achieve full implementation of the City's housing goals.

The new construction objectives shown in the table below represent a portion of the City's overall RHNA for the 2021-2029 planning period for all income levels. The objective identified for each income level is based on historic trends and patterns of development; units affordable to lower -income households are historically more difficult to develop due to extremely limited available funding for affordable housing projects. Moderate- and above -moderate income units are more likely to be developed by the private market.

The table below summarizes the City's quantified objectives for housing during the 2021-2029 planning period.

TABLE 1: QUANTIFIED HOUSING OBJECTIVES: 2021-2029
New
Construction
Rehabilitation
Conservation/
Preservation
Extremely Low Income
30 -4
N/A
Very Low Income
80 12-
31 Low Income
72 -10
45 Moderate Income
54 -6
13 Above Moderate Income
93 -
All Existing Units
Total
319
3?
89 Existing
Affordable Units;
All Existing Above -
Moderate Units
* No units hove bccn idcntificd as in nccd of rehabilitation during the planning period.

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GENERAL PLAN 2040
PART 2

BACKGROUND REPORT

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

CONTENTS

1. INTRODUCTION 5

2. ACCOMPLI SHMENTS UNDER 5TH CYCLE HOUSING ELEMENT 7
2A. Review of 2013 Housing Element 7
2B. Housing Production During 5th Cycle RHNA Period 7
2C. Appropriateness and Effectiveness of 2013 Housing Element 8

3. Housi NG NFFnS ASSESSMENT 13
3A. Introduction and Background 13
3B. Population Trends and Characteristics 13
3C. Household Characteristics 17
3D. Income 19
3E. Housing Characteristics 22
3F. Housing Costs 25
3G. Future Housing Needs 31
3H. Special Needs Groups 32

31. Units at Risk of Conversion 41
3J. Estimates of Housing Need 43

4. CONSTRAI NTS 45
4A. Governmental Constraints 45
4A.1 Land Use Controls 45
4A.2 Development Review Process 55
4A.3 Development Fees 60
4B. Non -Governmental Constraints 62
4C. Environmental Constraints 64
4D. Infrastructure Constraints 65

5. Housi NG RESOURCES 67
5A. Regional Housing Needs Allocation (RHNA) 67
5B. Progress Towards the RHNA 67
5C. Strategy to Accommodate Remaining RHNA 70
5D. Financial Resources 77
5E. Administrative Resources 79
5F. Energy Conservation Opportunities 79
5G. Consistency with the General Ran 80

6. AFFI RMATI VELY FURTHERI NG FAI R HOuSI NG (AFFH) ANALYST S 81 6A Outreach 81
6B. Assessment of Fair Housing Issues 82
6C. Analysis of Contributing Factors 100
TABLES
Table 2-1: Regional Housing Needs Allocation - 5th Cycle Progress 7 Table 2-2: Evaluation of the 2013 Indian Wells Housing Element Programs 10 Table 3-1: Population Trends - Neighboring Jurisdictions 14 Table 3-2: Population by Age (2018) 14
Table 3-3: Race and Ethnicity (2018) 15
Table 3-4: Job Growth and Employment Status 15
Table 3-5: Jobs by Industry (2018) 16
Table 3-6: Jobs by Occupation (2018) 16
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Table 3-7: Travel Time to Work (2018) 17
Table 3-8: Commute Method (2018) 17
Table 3-9: Households by Tenure and Age (2018) 18
Table 3-10: Household Size by Tenure (2018) 19
Table 3-11: Median Household and Per Capita Income 19
Table 3-12: Household Income for All Households and by Tenure (2018) 20 Table 3-13: Households by Income Group (2017) 20
Table 3-14: Occupations with Wages for Extremely Low -Income Households (2020) 21 Table 3-15: Housing Stock by Type and Vacancy (2020) 22 Table 3-16: Vacancy by Type (2018) 23
Table 3-17: Housing Stock Conditions (2018) 23
Table 3-18: Overcrowding by Tenure (2018) 24
Table 3-19: Household Size by Tenure (2018) 25
Table 3-20: Number of Bedrooms by Tenure (2018) 25
Table 3-21: Homes for Sale (May 2021) 25
Table 3-22: Rental Costs According to the US Census (2018) 26 Table 3-23: Actual Rental Rates by Number of Bedrooms 27 Table 3-24: State Income Limits — Riverside County (2021) 27 Table 3-25: Housing Affordability by Income Group 28
Table 3-26: Households by Income Level and Overpayment (2017) 30 Table 3-27: Deed Restricted Affordable Housing Units 31 Table 3-28: Regional Housing Needs Allocation — 6th Cycle 31 Table 3-29: Senior Population and Households (2010 & 2018) 32 Table 3-30: Householder Age by Tenure (2018) 33
Table 3-31: Disabilities by Disability Type (2018) 34
Table 3-32: Disabled Persons by Employment Status (2018) 35 Table 3-33: Developmentally Disabled Persons by Residence Type (2018) 35 Table 3-34: Facilities and Services for Disabled Persons 36 Table 3-35: Median Income By Household Size (2019) 37
Table 3-36: Household Size versus Bedroom Size by Tenure (2018) 37 Table 3-37: Families and Female Householder with Children Under 18 (2018) 38 Table 3-38: Homeless Facilities (2020)* 40
Table 3-39: Facilities and Services for the Homeless 41 Table 3-40: Summary of at -Risk Subsidized Housing Units 41 Table 3-41: Qualified Entities in Riverside County, 2021 43 Table 3-42: Summary of Needs 44
Table 4-1: General Ran Residential Land Use Designations 46 Table 4-2: Residential Development Standards — 47
Table 4-3: Permitted Residential Uses by Zone 48
Table 4-4: Basic Residential Development Standards 53
Table 4-5: Residential Parking Requirements 54
Table 4-6: Typical Permit Processing Times and Reviewing Body 56 Table 4-7: Development Project Processing Fees (Effective 07/01/2021) 61 Table 4-8: Total Processing and Fees for Typical Single- and Multi -Family Units 61 Table 5-1: RHNA 2021-2029 67
Table 5-2: Credits Towards the RHNA 69
Table 5-3: Remaining RHNA 70
Table 5-4: RHNA Site Inventory 73
Table 6-1: Compliance with Fair Housing Laws 84
Table 6-2: Racial/Ethnic Dissimilarity Trends 87
Table 6-3: Demographic Trends 88
Table 6-4: Median Household Income 92
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Table 6-5: Domains and List of Indicators by Factors 93 Table 6-6: Opportunity Resource Levels by Census Tract 93 Table 6-7: Fair Housing Contributing Factors 100

FIGURES
Figure 3-1: Median Home Sales Price 26
Figure 5-1: Housing Sites 75
Figure 6-1: Census Tract Boundaries 101
Figure 6-2: Diversity Index by Census Block Group 2018 103 Figure 6-3: Diversity Index by Census Block Group 2010 105 Figure 6-4: Diversity Index by Census Block Group - Countywide 107 Figure 6-5: Proportion of Population with Disabilities by Census Tract 109 Figure 6-6: Proportion of Population with Disabilities by Census Tract - Countywide 111 Figure 6-7: Percent of Population 18 Years and Over in Households Living with Spouse 113 Figure 6-8: Percent of Population 18 Years and Over in Households Living with Spouse - Countywide 115 Figure 6-9: Percent of Children in Married Couple Housholds 117 Figure 6-10: Percent of Children in Married Couple Housholds - Countywide 119 Figure 6-11: Female -Headed Households by Proportion of Children Present by Census Tract 121 Figure 6-12: Female -Headed Households by Proportion of Children Present by Census Tract Countywide 123
Figure 6-13: Proportion of Senior Residents by Census Tract 125 Figure 6-14: Proportion of Senior Residents by Census Tract Countywide 127 Figure 6-15: Median Household Income by Block Group 129 Figure 6-16: Median Household Income by Block Group - Countywide 131 Figure 6-17: Very Low and Low Income Population 133
Figure 6-18: Very Low and Low Income Population - Countywide 135 Figure 6-19: Ethnicity Analysis - Racial Concentrations 137 Figure 6-20: Ethnicity Analysis - Racial Concentrations - Countywide 139 Figure 6-21: TCAC Economic Score by Census Tract 141
Figure 6-22: Job Proximity Index by Block Group 143
Figure 6-23: TCAC Educational Score by Census Tract 145 Figure 6-24: TCAC Environmental Score by Census Tract 147 Figure 6-25: TCAC Opportunity Areas by Census Tract 149 Figure 6-26: Overcrowded Households 151
Figure 6-27: Overcrowded Households - Countywide 153
Figure 6-28: Cost -Burdened Renter Households by Census Tract 155 Figure 6-29: Cost -Burdened Owner Households by Census Tract 157 Figure 6-30: Cost -Burdened Renter Households by Census Tract - Countywide 159 Figure 6-31: Cost -Burdened Owner Households by Census Tract - Countywide 161 Figure 6-32: Sensitive Communities 163
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1. Introduction
The City of Indian Wells, incorporated in 1967, is located in the western Coachella Valley in Riverside County.

Indian Wells is bounded by Palm Desert on the north and west, La Quinta on the east, and unincorporated County lands to the south. The southern city limits include a portion of the Santa Rosa Mountains, an area which is designated as open space. The area is bisected by Highway 111 which provides regional access.

Indian Wells has a population of 5,403 (Department of Finance, 2020) and is approximately 15 square miles in size. The City's Sphere of Influence is coterminous with its boundary.

The Qty is a world-renowned resort destination with a strong tourism market; resort hotel properties, restaurants, and general retail centers are the three primary economic components of the tax base. Residents of Indian Wells enjoy a high quality of life with an abundance of recreation facilities and amenities.

State Housing Law (Government Code Section 65583) requires that a "housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory -built housing, and mobile homes, and shall make adequate provision for the existing and projected needs of all economic segments of the community." This report is an update of the Qty's 2013- 2021 Housing Element (5th Cycle), adopted in November 2013.

The assessment and inventory must include all of the following:
• Analysis of population and employment trends, documentation of projections, and a quantification of the locality's existing and projected housing needs for all income levels. Such existing and projected needs shall include the locality's share of the regional housing need in accordance with Section 65584 of the Government Code.
• Analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. • An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship between zoning, public facilities, and city services to these sites.
• Analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels and for persons with disabilities, 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. • Analysis of potential and actual non -governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, requests to develop housing at densities below the minimum densities in the inventory of sites, and the length of time between receiving approval for a housing development and submittal of an application for building permits that hinder the construction of a locality's share of the regional housing need.
• Analysis of any special housing needs, such as those of the elderly, disabled, including developmentally disabled, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element • Analysis of opportunities for energy conservation with respect to residential development. • Analysis of existing assisted multifamily rental housing developments that are eligible to change from low-income housing to market -rate during the next 10 years.

The Background Report of this housing element identifies the nature and extent of Indian Wells' housing needs, including those of special populations, potential housing resources (land and funds), potential constraints to housing production, and energy conservation opportunities. By examining the Qty's housings, resources, and constraints, the Qty can then determine a plan of action for providing adequate housing. This plan is presented in the Housing Plan, which is the policy component of the Housing Element. In addition to identifying housing needs, the Background Report also presents information regarding the setting in which these needs occur. This information is instrumental in providing a better understanding of the community, which in turn is essential for the planning of future housing needs.

Since the update of the aty's last Housing Element, statutory changes have occurred that must be included in the 2021-2029 Indian Wells Housing Element (6th Cycle). These laws have been incorporated in the appropriate sections throughout this Background Report as well as in its accompanying Policy Document.

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2. Accomplishments Under 5th Cycle Housing Element
The following section reviews and evaluates the Qty's progress in implementing the 2013 Housing Element.

It reviews the results and effectiveness of programs, policies, and objectives from the previous Housing Element planning period, which covered 2013 through 2021. This section also analyzes the difference between projected housing need and actual housing production. 2A. Review of 2013 Housing Element
The 2013 Housing Element program strategy focused on the accomplishment of policies and implementation of programs to ensure adequate housing sites, to encourage the production of new housing, including affordable and special needs housing, to encourage the maintenance and preservation of existing housing, to remove various constraints to housing, including housing for special needs populations, and to encourage fair housing and non-discrimination. The 2013 Housing Element identified the following goals:
• Goal II B1 : Conserve and improve the condition of the existing housing stock. • Goal II B2: Support and encourage the development of housing affordable for all income segments of the population.
• Goal I I B3: Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement and development of housing. • Goal 11 B4: Promote housing opportunities for all persons regardless of race, religion, sex, age, marital status, familial status, ancestry, national origin, color, source of income, sexual orientation, or any other arbitrary factors. • Goal 1 1 B5: Encourage energy conservation in new and existing housing stock. 2B. Housing Production During 5th Cycle RHNA Period
The City's 5th Cycle Housing Element specifically addressed housing needs for Indian Wells from October 15, 2013 through October 15, 2021, in line with the Regional Housing Needs Allocation (RHNA) planning period adopted by the Southern California Association of Governments (SCAG).

Table 2-1 shows the total number of housing units built in the Qty during the 5th RHNA cycle to date and compares these units with the units required to be accommodated under the Regional Housing Needs Allocation. Housing development in Indian Wells during the 5th cycle exceeded the City's RHNA allocation, however all new development (309 units) during the prior planning period was in the above -moderate income category.

TABLE 2-1: REGIONAL HOUSING NEEDS ALLOCATION - 5TH CYCLE PROGRESS Status
Extremely Very Low Low Moderate
Low
Above
Moderate
TOTAL
RHNA Allocation
20 20
27 31
62 160
Built
0 0
0 0
309
309
Remaining Allocation
20 20
27 31
0 98
Sources: Q'ty of Indian Wells 2013 Housing Element; 2019 Genera/ Ran Annual Progress Report Housing Element Background Report 1 Page BR -7
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element 2C. Appropriateness and Effectiveness of 2013 Housing Element The overarching goals and policies of the 2013 Housing Element continue to be appropriate to encourage the Qty's housing goals. While the majority of goals, policies, and programs included in the 2013 Housing Element continue to be appropriate to address the Qty's housing needs, the Housing Plan will be updated to provide clearer guidance and more specific direction to encourage affordable and special needs housing. The Housing Ran will also be updated to streamline programs so that they are easier for staff to implement and to include a matrix of programs that includes timing to make it easier to identify the applicability and timing of programs. In order to improve the ease of use of the Housing Ran, the housing programs will be presented as a user-friendly table.

As discussed in Table 2-2, most housing programs have been effective or are necessary. The intent of these programs will be kept in the Housing Plan, with revisions to address identified specific housing needs, constraints, or other concerns identified as part of this update, and to affirmatively furthering fair housing.

The Qty implemented many of the housing programs in the last several years and anticipates that these changes will further encourage affordable and special needs housing.

The Housing Ran included in this 2021-2029 Housing Element includes modifications to make programs more effective, clarify objectives, and ensure that the programs are implementable. See the Housing Plan for the goals, policies, and programs of this Housing Element.

While the City took a number of significant steps to promote housing during the prior planning period, the experience of most communities throughout the state demonstrates that it is very difficult for local governments to meet their fair share housing goals for lower and moderate -income housing when working alone. All cities, including Indian Wells, have limited financial and staffing resources and require substantial state and/or federal assistance, which is not available at the levels necessary to support the Oty's housing needs, as well as the technical assistance of area non-profit housing developers and agencies.

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CUMULATIVE EFFORTS TO ADDRESS SPECIAL HOUSING NEEDS
Government Code Section 65588 requires that local governments review the effectiveness of the housing element goals, policies, and related actions to meet the community's special housing needs (e.g., low income households, elderly, persons with disabilities, large households, female headed households, farmworkers, and persons experiencing homelessness). As shown in Table 2-2, during the 2014-2021 RHNA period, the Qty worked diligently to continuously promote housing for special needs groups in a variety of ways by:
• Continuing to permit emergency shelters in accordance with State law and providing resources to persons seeking shelter;
• Assisting low income and elderly residents that apply for Section 8 rental assistance; • Continuing to ensure that transitional/supportive housing be subject to the same permit processing procedures as other housing in the same zone;
• Continuing to allow for the development of ADUs, a unique housing option well -suited to meet the needs of the City's lower -income and elderly populations; • Adoption of a Reasonable Accommodation Ordinance to continue to support and provide resources for individual homeowners requesting exemptions to zoning and development standards in order to accommodate a disability thereby assisting persons with disabilities.

The City has considered the cumulative efforts to address special housing needs and finds that the City's existing programs to address the community's special housing needs, particularly for lower income households, the elderly, persons experiencing homelessness, and persons with disabilities, continue to be relevant and will be continued in the next planning period. Through this review, the City has identified the need to amend specific Housing Programs to more thoroughly address the needs of large households, female headed households, and farmworkers. Programs 8 (Accessory Dwelling Units), 13 (Development Code Amendments — Housing Constraints), 14 (Density Bonus Ordinance), 17 (Support for Persons Experiencing Homelessness), and 19 (Affirmatively Furthering Fair Housing Outreach and Coordination Program) have been added or amended to further address the community's special housing needs. The City will continue to review progress towards addressing these needs as part of each Housing Element Annual Progress Report.

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TABLE 2-2: EVALUATION OF THE 2013 INDIAN WELLS HOUSING ELEMENT PROGRAMS Program Accomplishments
Goal 11131: Conserve and improve the condition of the existing housing stock.

Program IIB1.A Rehabilitation and Preservation. Although no housing units were determined to need major
rehabilitation during this planning period, property owners may be eligible for rehabilitation assistance induding rebates, grants and loans, through outside programs provided by
utility providers and other organizations. The City will provide refer property owners to these programs upon inquiry or with code enforcement programs.

Result/Evaluation: The Oty continues to refer property owners for rehabilitation assistance induding rebates, grants and loans, through outside programs provided by utility providers and other organizations.

Conti nue&Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

Goal IIB2: Support and encourage the development of housing affordable for all income segments of the population.

Program IIB2.A Production of New Housing Units. The
City has a 2014-2021 projected RHNA need of 160 housing units including 67 housing units for extremely low, very low, and love income households. The Oty will continue to monitor the sites currently designated by the Qty to accommodate its projected growth needs and use of the Affordable Housing Overlay. If during the planning period, the Oty finds that the sites are no longer available to meet the City's RHNA
allocation, the Oty will ensure additional altemative sites are made available in locations at appropriate densities to perrrit housing at the necessary affordability level. Additionally the City will continue to provide incentives and flexibility in development standards to encourage affordable housing
development as outlined in Section 21.12.040 of the City's Municipal Code and will evaluate potential incentives and flexibility in development standards to encourage new
housing construction within one year of the Housing Element Adoption. The City will proactively outreach to the housing development community to assist in the evaluation of
potential incentives. This program will be in conjunction with the evaluation of altemative funding and financing in Program I I2.C. Upon completion of the evaluation, the City shall establish additional incentives and flexibility in development standards, as appropriate, and promote the benefits of this program to the development carmunity by posting
information on its web page and distributing information during pre -development application rruetings. The Oty
understands the housing challenges of extremely low-income households, which are a subset of very low income
households who ear 30 percent or less of the median
income. This income group is most likely to experience a housing crisis wren faced with rent increases, foredosure, or other adverse event. The City will collaborate with housing developers to seek state, federal, and other appropriate funds and incentives targeted for the development of housing
affordable to extrerrely low-income households through this Result/Evaluation: The Oty continues to provide incentives and flexibility in development standards to encourage affordable housing development as outlined in Section 21.12.040 of the City's Munidpal Cade. The Oty also continues to monitor available sites for development of affordable housing and proactively works with the development corrrtunity to encourage the production of new housing units at all income categories. The City has entered into an Exdusive Negotiating Agreerrent with Abode Communities to develop approxir i ralely 6 acres of vacant Housing Authority land into 100 affordable units; this development is expected to help acconrnxlate a portion of the Ot /s 6th Cyde RHNA
Conti nue/IVbdify/Delete: This program is continued in the 2021-2029 Housing Element, with modifications to the City's current RHNA Housing Element Background Report 1 Page BR -10
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City of Indian Wells 2021-2029 Final Draft Housing Element Program
Accomplishments
strategy and the strategy developed in Program 112.0.

Program IIB2.B Vacant and Underutilized Land Survey.

The City will maintain a comprehensive land use survey
identifying vacant and underutilized parcels suitable for residential development.

Result/Evaluation: The City continues to maintain a comprehensive land use survey identifying vacant and underutilized parcels suitable for residential development.

Conti nue&Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

Program IB2.0 Evaluate Alternative Funding and
Financing Mechanisms. The City of Indian Wells will
collaborate with private, non-profit, state and federal entities to investigate altemative methods for funding and financing the construction of new housing units and rehabilitation and prcecrvation of existing units citywide. Indian Yells will establish continued communication with local, state and federal legislators to encourage the establishment of
altemative funding and financing mechanisms. The City will identify an initial list of potential funding and financing mechanisms within six months of the Housing Element
adoption and within one year prepare a strategy to seek for funding for housing construction and rehabilitation when appropriate and available. On a bi-annual basis, the Oty will review and update the strategy as appropriate.

Result/Evaluation: The City worked with the City of Indian Wells Housing Authority to analyze potential affordable housing developments within the City. Preliminary concepts were vetted and the Housing Authority is seeking mixed -affordability units within residential developments prior to 2021. The Oty was able to procure SB2 and LEAP funding in 2020. The city continues to review and apply for grants and altemative funding sources to facilitate housing program and rehabilitation efforts.

Conti nue/Modify/Delete: This program is continued in the 2021-2029 Housing Element.

Goal IIB3: Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement and development of housing.

Program 11B3.A Nbnitoring Potential Constraints. The Oty will periodically review Oty regulations, procedures and fees to identify any potential constraints to the development and maintenance of housing. The Oty will outreach to the
development oommunity to assist in this review. If the City finds that regulations, procedures and/or fees are a constraint to housing, the City will revise requirements or policies as necessary.

Result/Evaluation: The City continues to monitor regulations, procedures and fees to identify any potential constraints to the development and maintenance of housing.

Conti nue/Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

Program I1B3.B Monitoring Raa: onable Accommodation
Procedures. The City will evaluate adopted reasonable
accorrmodation procedures annually and revise as
appropriate to ensure consistency with fair housing
requirements.

Result/Evaluation: The Oty and 1 -busing Authority continue to maintain written policies for reviewing and approving requests for reasonable accommodations. The City passed an Ordinance to update reasonable accommodation in October 2021 to maintain consistency with fair housing requirements.

Conti nue/Nbdify/Delete: This program is o ntinued in the 2021-2029 1 -busing Element.

Program IIB3.0 Development Guidelines and Procedures.

The City shall maintain existing development guidelines, which specify the procedures, rmterials, time frames, and costs associated with various zoning and subdivision
applications. The objective is to provide potential developers with an informational package dearly explaining the
Result/Evaluation: The City maintains existing development guidelines online and at the public counter which specify the procedures, materials, time frames, and costs associated with various zoning and subdivision applications.

Continue/Modify/Delete: This program is continued in the 2021-2029 Housing Element Background Report 1 Page BR 11
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development review procedure as MI as the possible
incentives available for affordable housing development.

Housing Element.

Goal IIB4: Promote housing opportunities for all persons regardless of race, religion, sex, age, marital status, familial status, ancestry, national origin, color, source of income, sexual orientation, or any other arbitrary factors.

Program IIIB4.A Fair Housing Policy Procedures. The Qty will maintain a listing of fair housing groups serving Riverside County and refer fair housing -related complaints to these groups. Fair housing policy procedures will be made available at Oty Hall, on the City's website and advertised in the City Newsletter on a periodic basis.

Result/Evaluation: The City continues to provide information about fair housing to inquiring parties through City Hall and Housing Authority owned affordable senior housing developments.

Conti nue/Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

Program I IB4.B Section 8 Housing Choice Vouchers. The
County of Riverside currently adrrinisters the Section 8 Rental Assistance program on behalf of the City. Based on future congressional appropriations, the County Housing Authority will apply for additional funding which will enable the Housing Authority to administer additional vouchers for farrilies, elderly, and persons with disabilities over the Housing Element planning period. While the City is not
authorized to administer a Section 8 programs the City will continue to provide referral services on behalf of the County and disseminate information to Qty residents.

Result/Evaluation: The City continues to provide referrals to Riverside County for Section 8 information. Additionally, the I -busing Authority provides information to prospective tenants about Section 8. Qualified tenants at both Mountain View Villas and Indian V\eIIs Villas receive Section 8 vouchers.

Conti nue/Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

Program IIB4.0 Coordination on Homeless Issues. The
Oty wuill 000rdinate with the County of Riverside, adjacent jurisdictions and applicable service providers to adders, homeless issues in the Coachella Valley.

Result/Evaluation: The City and Housing Authority fund regional homeless service providers in partnership with adjacent jurisdictions in the Coachella Valley.

Conti nue/Nbdify/Delete: This program is continued in the 2021-2029 Housing Bement.

Program 11B4.D Support for Persons with Developmental
Disabilities. The Qty shall support the ability of persons with developmental disabilities to live in integrated oormhunity settings by coordinating with the Inland Regional Center to identify the housing needs of persons served by the Center, promote opportunities for supportive living services and support efforts to eliminate barters to housing for persons with developmental disabilities.

Result/Evaluation: The Oty supports the elimination of barriers to housing for persons with developmental disabilities and funds non-profit organizations that provide services.

Conti nue/Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

Goal IIB5: Encourage energy conservation in new and existing housing stock.

Program 111B5.A Green Building Program. The Cityvuill
continue to support the development of green building
practices in housing and sustainability programs by
participating in the CVAG Green for Life Program and
evaluate the feasibility of implementing local policies and programs consistent with the CVAG Green Building Program and the Qty's Ciir r rate Action Plan.

Result/Evaluation: The City continues to support the development of green building practices in housing and sustainability programs by partidpating in the CVAG Green for Life Program and acress to PACE financing.

Conti nue&Nbdify/Delete: This program is continued in the 2021-2029 Housing Element.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

3. Housing Needs Assessment
3A. Introduction and Background
The purpose of the Housing Needs Assessment is to describe housing, economic, and demographic conditions in Indian Wells, assess the demand for housing for households at all income levels, and document the demand for housing to serve various special needs populations. The Housing Needs Assessment also addresses whether assisted housing projects are at risk of converting to market rate projects. The Housing Needs Assessment is intended to assist Indian Wells in developing housing goals and formulating policies and programs that address local housing needs.

Several sources of data were used to describe existing demographic and housing conditions, including the following:
• Pre -Certified Local Housing Data package for the aty of Indian Wells developed by the Southern California Association of Governments (SLAG) and pre -certified by the California Department of Housing and Community Development (HCD) for use in 6th cycle housing elements. • Data from the 2010 U.S. Census, 2014-2018 U.S. Census American Community Survey (ACS), California Department of Finance (DOF), California Employee Development Department (EDD), and U.S. Department of Housing and Urban Development (HUD) is included to provide information on population, household, housing, income, employment, and other demographic characteristics. • Regional information from the Fair Housing Council of Riverside County. • Other sources of economic data such as information from the websites Zi//ow.com and Apartments.com, and other published data are used where current Census, ACS, DOF, HUD, and other standard data sources do not provide relevant data. • Interviews with key agencies and organizations were conducted to obtain information on housing needs and, in particular, needs of populations with special housing needs. • Research and data related to fair housing, including Census Scope, Social Science Data Analysis Network, the UC Davis Center for Regional Change and Rabobank, N.A., and the California Fair Housing Task Force.

Due to the use of multiple data sources (with some varying dates), there are slight variations in some of the information, such as total population and total household numbers, presented in this document. However, these variations do not significantly affect the discussion of overall housing trends and changes. 3B. Population Trends and Characteristics

POPULATION GROWTH
Table 3-1 shows population growth for Indian Wells and other jurisdictions in the region from 2000 through 2020. According to data prepared by the California DOF, the population of Indian Wells in 2020 was 5,403 persons, an increase of approximately 9% since 2010. During the previous decade (2000 to 2010), the Oty's population increased by 29.9%. Indian Wells' growth rate has been lower than the countywide growth rate, with Riverside County experiencing drastically higher population growth rates than Indian Wells during the 2000 to 2010 period, and slightly higher population growth rates than Indian Wells during the 2010 to 2020 period, as shown in Table 3-1. This population growth in Riverside County is due in large part to pressure from surrounding counties; as Riverside, Los Angeles, and San Diego Counties became overcrowded, residents turned to less expensive options in Riverside County. Of neighboring jurisdictions, the aty of Indio had the greatest numeric change in population (41,635 persons) and the City of Coachella had the largest percentage change in population (107.6%).

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-1: POPULATION TRENDS - NEIGHBORING JURISDICTIONS Jurisdiction
2000
2010
2020
Change
2000-20
% Change
2000-20
Indian Wells
3,816
4,958
5,403
1,587

41.6%
Coachella
22,724
40,704
47,186
24,462
107.6%
Indio
49,116
76,036
90,751
41,635

84.8%
La Quinta
23,694
37,467
40,660
16,966

71.6%
Palm Desert
41,155
48,145
52,986
11,831

28.7%
Palm Springs
42,807
44,552
47,427
4,620

10.8%
Rancho Mirage
13,249
17,218
19,114
5,865

44.3%
Hemet
58,812
78,657
85,175
26,363

44.8%
Riverside County
1,545,387
2,189,641
2,442,304
896,917

58.0%
Sources: US Census, 2000 and 2010; DOF, 2020
AGE
Changes in the age groups can indicate future housing needs. Table 3-2 compares age cohort sizes in 2018 for Indian Wells and Riverside County. In Indian Wells, children under 15 comprise 3.9% of the Qty's population, teens and young adults (15 - 24) represent 3.6%, and adults in family -forming age groups (25 - 44) comprise 6.2%. Adults aged 45 to 64 represent 27.4% of the population and seniors (65 and over) comprise the overwhelming majority at 58.9%. In 2018, the median age in Indian Wells (67.9 years) was approximately thirty-three years higher than that of Riverside County (35.3 years) and thirty-two years above the statewide median age (36.3 years). The median age of Qty residents continues stay relatively stable (down slightly from 68 years in 2010).

TABLE 3-2: POPULATION BY AGE (2018)
Age
Indian Wells
Number
Percent
Riverside
Number
County
Percent
Under 5 Years
15 0.30%
158,008

6.6%
5 to 9
88 1.70%
169,403

7.1 %
10 to 14
105

2.00%
177,796

7.5%
15 to 19
64 1.20%
177,697

7.5%
20 to 24
127

2.40%
170,153

7.1%
25 to 34
187

3.5%
328,917

13.8%
35 to 44
145

2.7%
303,627

12.7%
45 to 54
370

7.0%
303,884

12.8%
55 to 64
1,086

20.4%
265,192

11.1%
65 to 74
1,432

26.9%
186,772

7.8%
75 to 84
1,311

24.6%
101,900

4.3%
85 and Over
387

7.3%
39,937

1.7%
TOTAL
5,317
100%
2,383,286
100%
Source: US Census, 2014-2018 ACS

RACE/ETHNICITY
Table 3-3 shows the ethnic composition of Indian Wells' population. Nearly all (94.1%) of the City's population identify as White. The next largest racial group is "some other race" (1.7%) and Asian (1.7%), followed by "two or more races" (1.4%), and Black or African American (1.1%). Nobody identifies as either Housing Element Background Report I Page BR -14
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element American Indian or Alaska Native, or Native Hawaiian and Pacific Islander. A small proportion of the population (5.3%) is of Hispanic or Latino origin. Indian Wells has a higher proportion of groups that identify as White than the County, and fewer who identify as Black or African American, American Indian or Alaska Native, Asian, Native Hawaiian and Pacific Islander, "some other race" or "two or more races." Indian Wells is a less culturally diverse community than the County as a whole, which can influence buying preferences and the demand for special needs housing (e.g., multigenerational housing).

TABLE 3-3: RACE AND ETHNICITY (2018)
Race/Ethnicity
White
Indian
Number
5,002
Wells
Percent

94.1%
Riverside
Number
1,450,134
County
Percent

60.8%
Black or African American
58 1.1%
153,545

6.4%
American Indian or Alaska Native
0 0.0%
19,281

0.8%
Asian
92 1.7%
152,130

6.4%
Native Hawaiian and Pacific Islander
0 0.0%
6,843

0.3%
Some Other Race
91 1.7%
495,241

20.8%
Two or More Races
74 1.4%
106,112

4.5%
TOTAL
5,317
100%
2,383, 286
100%
Hispanic or Latino (of any race)
282

5.3%
1,154,517

48.4%
Source: US Census, 2014-2018 ACS

EMPLOYMENT
One of the factors that can contribute to an increase in demand for housing is expansion of the employment base. Table 3-4 shows the employment and unemployment rates for persons 16 years and older that were in the labor force in 2010 and 2018. In 2018, ACS data indicated that there were 1,697 employed persons in the Indian Wells labor force and that the unemployment rate was approximately 7.2%, an increase from

5.8% in 2010. According to the labor report data compiled by the California EDD, the Riverside -San Bernardino -Ontario Metropolitan Area's average annual unemployment rate in 2018 was estimated at 4.3%, Riverside County's rate was 4.5%, while California's was 4.1%.

TABLE 3-4: JOB GROWTH AND EMPLOYMENT STATUS
2010 2018
Number Percent Number Percent
Total Persons in Labor Force
1,668
100%
1,828
100%
Employed
1,571

94.2%
1,697

92.8%
Unemployed
97 5.8%
131

7.2%
Sources: US Census, 2006-2010 ACS and 2014-2018 ACS

INDUSTRY AND OCCUPATION
Of Indian Wells' employed residents, the "Professional, scientific, management, administrative, waste mgmt." industry employed the most people at 18.6%. The second largest employment sector was the "Finance and insurance, real estate and rental and leasing" industry, which had 15.9% of the total employed persons in Indian Wells. The top two employment categories in Riverside County were the "Educational services, health care and social assistance" industry at 20.7% and the "Retail trade" industry at 12.9%.

The City's workforce holds a variety of types of jobs as shown in Table 3-6, with the largest sector (56%) working in management, business, science, and arts occupations, followed by 28.9% in sales and office occupations. Employment and occupation trends play an important role in defining housing needs. This Housing Element Background Report 1 Page BR -15
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element relationship extends beyond the impact of employment growth on housing demand in the Qty and includes how wage levels and median earnings affect the type of housing affordable to workers and households in Indian Wells. There is a significant gap, for example, between the median earnings of a resident employed in management and a resident employed in a service occupation, and this translates into the type of housing that is needed in the aty.

TABLE 3-5: JOBS BY INDUSTRY (2018)
Industry
Number
Percent
Agriculture, forestry, fishing and hunting, mining
47 2.8%
Construction
55 3.2%
Manufacturing
144

8.5%
Wholesale trade
40 2.4%
Retail trade
119

7.0%
Transportation, warehousing, utilities
49 2.9%
Information
29 1.7%
Finance and insurance, real estate and rental and leasing 269

15.9%
Professional, scientific, management, administrative, waste mgmt. 316

18.6%
Educational services, health care and social assistance 262

15.4%
Arts, entertainment, recreation, accommodation, food services 165

9.7%
Other services
149

8.8%
Public administration
53 3.1%
TOTAL (Civilian Labor Force)
1,697
100%
Armed Forces
0 -
Source: US Census, 2014-2018 ACS
TABLE 3-6: JOBS BY OCCUPATION (2018)
Occupation Number Percent Median
Earnings*
Management, business, science, and arts occupations
951
56%
$81,667
Service occupations
139

8.2%
$20,052
Sales and office occupations
490

28.9%
$69,435
Natural resources, construction, and maintenance occupations 65 3.8%
$103,220
Production, transportation, and material moving
52 3.1%
$139,583
*Median earnings in previous 12 months prior to survey
Sources: SLAG 6th Cycle Data Package; US Census, 2014-2018 ACS

TRAVEL TO WORK
More than three-quarters (82.7%) of Indian Wells workers 16 years and over travelled less than 30 minutes to work. Comparatively, about one -tenth (10.9%) of workers drive more than 60 minutes to work. Most Indian Wells workers, 74.2%, drive alone to work and 5.1% carpool. Table 3-7 identifies travel time to work and Table 3-8 identifies commute methods for Indian Wells workers in 2018.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-7: TRAVEL TIME TO WORK (2018)
Les than 10 minutes
10-19 mnutes
20-29 minutes
30-44 nnutes
45-59 nnutes
60 + minutes
Number Percent
125
747
321
92 0
157

8.7%

51.8%

22.3%

6.4%

0.0%

10.9%
Source: US Census, 2014-2018 ACS
3C. Household Characteristics
TABLE 3-8: COMMUTE METHOD (2018)
Number Percent
Drive Alone 1,243 74.2%
Carpooled 85 5.1%
Public Transportation 73 4.4%
VValk 6 0.4%
Other 35 2.1%
Work at Home 234 14.0%
Source: US Census, 2014-2018 ACS
According to the Census, a household is defined as all persons living in a housing unit. This definition includes families (related individuals living together), unrelated individuals living together, and individuals living alone.

A housing unit is defined by the Census as a house, an apartment, a mobile home, a group of rooms, or a single room that is occupied (or if vacant, is intended for occupancy) as separate living quarters. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and which have direct access from the outside of the building or through a common hall. The occupants may be a single family, one person living alone, two or more families living together, or any other group of related or unrelated persons who share living arrangements.

People living in retirement homes or other group living situations are not considered "households" for the purpose of the U.S. Census count. The household characteristics in a community, including household size, income, and the presence of special needs households, are important factors in determining the size and type of housing needed in the City.

Table 3-9 below identifies the ages of householders in Indian Wells and Riverside County in 2018 based on ACS data from 2014-2018. Homeowner households are generally headed by someone above middle -age, with 65.3% of homeowner households headed by a resident over 65 years of age; however, about a fifth (20.3%) are headed by early middle-aged to middle-aged residents (35-59 years of age). Households who rent their homes trend slightly older; about 91.9% of renter households are headed by a person over 65 years of age, with the remaining 8.1% falling within the 25-54 age range.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-9: HOUSEHOLDS BY TENURE AND AGE (2018)
Indian
Number
Wells
%
Riverside
Number
County
%
Total:
2,759
-
718,349
-
Owner Occupied: l
2,354
85,3%
472,401
1 65.8% 1
Householder 15 to 24 years
0 0.0%
2,850

0.4%
Householder 25 to 34 years
25 0.9%
43,381

6.0%
Householder 35 to 44 years
89 3.2%
77,261

10.8%
Householder 45 to 54 years
181

6.6%
101,801

14.2%
Householder 55 to 59 years
208

7.5%
54,048

7.5%
Householder 60 to 64 years
314

11.4%
49,348

6.9%
Householder 65 to 74 years
607

22.0%
80,773

11.2%
Householder 75 to 84 years
675

24.5%
46,189

6.4%
Householder 85 years and older
255

9.2%
16,750

2.3%
-- t -r • cu•i-•:
0 1A7%
A •fa®
12,648
A2%

1.8%
Householder 15 to 24 years

0.0%
Householder 25 to 34 years
25 0.9%
56,200

7.8%
Householder 35 to 44 years
0 0.0%
60,241

8.4%
Householder 45 to 54 years
8 0.3%
47,171

6.6%
Householder 55 to 59 years
0 0.0%
18,293
25%
Householder 60 to 64 years
0 0.0%
14,055

2.0%
Householder 65 to 74 years
157

5.7%
21,041

2.9%
Householder 75 to 84 years
187

6.8%
10,839

1.5%
Householder 85 years and older
28 1.0%
5,460

0.8%
Source: US Census, 2014-2018 ACS 5 -Year Data Profile (Table B25007) Table 3-10 identifies the household sizes by housing tenure. In 2018, the majority of households consisted of 2 to 4 persons, which is consistent with the County's profile. Only 2.1% of large households of 5 or more persons made up the total households in Indian Wells- a small percentage of total households and smaller proportion when compared to the County. The average household size was 1.92 persons in Indian Wells, compared to 3.27 persons for the County. Additionally, the average household size in 2018 for an owner - occupied unit was 2.02 persons per household and 1.37 persons per household for a renter -occupied unit.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-10: HOUSEHOLD SIZE BY TENURE (2018)
Number
Indian Wells
%
Riverside County
Number ok
Owner Households _
2,354
103.0%
472,401
94,214
•
100.0°//

19.9%
Householder living alone
544

23.1%
Households 2-4 persons
1,761

74.8%
297,075

62.9%
Large households 5+ persons
49 2.1%
81,112

17.2%
Average Household Size

2.02 persons

3.25 persons
Householder living alone
267

65.9%
61,899

25.2%
Households 2-4 persons
138

34.1%
135,765

55.2%
Large households 5+ persons
0 0.0%
48,284

19.6%
Average Household Size

1.37 persons

3.3 persons
Total Households
i
100.0%
718,349
100.0%
Householder living alone
811

29.4%
156,113

21.7%
Households 2-4 persons
1,899

68.8%
432,840

60.3%
Large households 5+ persons
49 1.8%
129,396

18.0%
Average Household Size

1.92 persons

3.27 persons
Sources: SLAG 6th Cycle Data Package; U.S. Census Bureau, 2014-2018 ACS; 2014-2018 ACS 5 -Year Data Profile (Table B25009) 3D. Income

HOUSEHOLD INCOME
From 2000 to 2018, the median household income increased by 11.2% to $104,522 and the per capita income increased by 30.2% to $99,206. From 2010 to 2018, there was a decrease in both per capita and median household incomes. Table 3-11 identifies the per capita and median household incomes.

TABLE 3-11: MEDIAN HOUSEHOLD AND PER CAPITA INCOME
2000
2010 2018
Median Household Income
$93,986
Per Capita Inoome
$76,187
$131,250
$110,590
$104,522
$99,206
Sources: US Census, 2000; US Census, 2014-2018 ACS
In 2018, more than two-thirds (69.2%) of Indian Wells' households earned in excess of $50,000 per year.

The incidence of households earning less than $35,000 per year was significantly higher among renter households (80.5%) than owner households (16%). Table 3-12 identifies household income by tenure. As shown in Table 3-12, the median income of owner households is approximately $106,000 more than renter households. Compared to the County, median household incomes are significantly higher for owner households (65.9%) but significantly lower for renter households (45.7%).

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-12: HOUSEHOLD INCOME FOR ALL HOUSEHOLDS AND BY TENURE (2018) Income
All Households
Number
Percent
Owner Households
Number
Percent
Renter Households
Number
Percent
Lacs than $5,000
88 3.2%
88 3.7%
0 0.0%
$5,000 to $9,999
66 2.4%
30 1.3%
36 8.9%
$10,000 to $14,999
53 1.9%
21 0.9%
32 7.9%
$15,000 to $19,999
151

5.5%
92 3.9%
59 14.6%
$20,000 to $24,999
122

4.4%
31 1.3%
91 22.5%
$25,000 to $34,999
223

8.1%
115

4.9%
108

26.7%
$35,000 to $49,999
148

5.4%
127

5.4%
21 5.2%
$50,000 to $74,999
314

11.4%
286

12.1%
28 6.9%
$75,000 to $99,999
181

6.6%
173

7.3%
8 2.0%
$100,000 to $149,999
368

13.3%
352

15.0%
16 4.0%
$150,000 or more
1045

37.9%
1,039

44.1%
6 1.5%
Median Household
Income - Indian Wells
$104,522
$129,397
$23,063
Median Household
Income - Riverside
County
$63,948
$77,991
$42,445
Source: US Census, 2014-2018 ACS

HOUSEHOLDS BY INCOME GROUP
A special aggregation of 2013-2017 ACS data performed by HUD - titled the Comprehensive Housing Affordability Strategy (CHAS) data - provides a breakdown of households by income group by tenure. The number of households in extremely low, very low, low, and moderate/above moderate -income groups is shown in Table 3-13. Approximately three-quarters (76.1%) of all households are at or above moderate income. However, there is a stark difference between households who own and households who rent, particularly among households in the moderate to above moderate -income group (85.4% for owners and

22.3% for renters). The HUD CHAS data indicates the extremely low-income group represents only 5.5% of households, and a higher proportion are renters (13.8%) than owners (4.1%). The very low-income group represents 8.4% of households and the low-income group represents 9.9% of households. The City's RHNA (see Table 3-28) identifies the Qty's share of regional housing needs for extremely low, very low, and low- income households, as well as for moderate and above moderate -income households. As shown in Table 3- 13, there is a larger proportion of renters in the extremely low, very low, and low-income groups, while there is a larger proportion of moderate and above moderate -income groups in owner households.

TABLE 3-13: HOUSEHOLDS BY INCOME GROUP (2017)
Income Group
Extremely Low ( 80% AMI )
2,074

76.1%
1,985

85.4%
89 22.3%
TOTAL
2,725
100.0%
2,325
100.0%
400
100.0%
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017 Availab/e: https.// www.huduser.gov/porta//datasets✓ cp.html Housing Element Background Report 1 Page BR -20
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

POVERTY LEVELS
The 2014-2018 ACS data indicates that 80 (4.3%) of all Indian Wells families and 364 individuals (6.8%) had incomes at or below the poverty level. According to the ACS data, poverty rates are disparate between races and economic indicators are particularly severe for those identified as Asian and "two or more races." In 2018, those identified as Asian had a poverty rate of 26.1% compared to 23% for "two or more races,"

14.9% for Hispanic/Latino, and 6.5% for Whites. There were no (0%) individuals with incomes at or below the poverty level who identified as Black or African American alone or "some other race alone." The level of poverty in a jurisdiction often influences the need for housing to accommodate those persons and families in the very low and low-income categories. The U.S. Census Bureau measures poverty by using a set of money income thresholds that vary by family size and composition of who is in poverty. If a family's total income is less than the family's threshold, then that family and every individual in it is considered in poverty. For example, the poverty threshold for a family of two with no children would be $17,120, a household of two with a householder aged 65 or older and no children has a poverty threshold of $15,453, and the poverty threshold of a family of four with two children under the age of 18 would be $25,926. (U..S.

Census Bureau, 2019).

Extremely Low -Income Households
Extremely low-income (ELI) households are defined as those earning up to 30% of the area median household income. For Riverside County, the median household income in 2020 was $75,300. For ELI households in Indian Wells (and the rest of Riverside County), this results in an income of $26,200 or less for a four -person household or $15,850 for a one -person household. ELI households have a variety of housing situations and needs. For example, most families and individuals receiving only public assistance, such as social security disability insurance or disability insurance, qualify as ELI households.

TABLE 3-14: OCCUPATIONS WITH WAGES FOR EXTREMELY LOW-INCOME HOUSEHOLDS (2020) Occupation Title
Median Hourly Wage
$12.67
Cleaners of Vehides and Equipment
Bartenders
$12.64
Gaming Change Persons and Booth Cashiers
$12.63
Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop $12.59
Cooks, Fast Food
$12.58
Pressers, Textile, Garment, and Related Materials
$12.57
Amusement and Recreation Attendants
$12.56
Waiters and Waitresses
$12.56
Dishwashers
$12.40
Farming, Fishing, and Forestry Occupations
$12.36
Graders and Sorters, Agricultural Products
$12.33
Ushers, Lobby Attendants, and Ticket Takers
$12.32
Gaming Dealers
$12.23
Door -to -Door Sales Workers, News and Street Vendors, and Related Workers $12.20
Farrr orkers and Laborers, Crop, Nursery, and Greenhouse $12.20
Dining Room and Cafeteria Attendants and Bartender Helpers $12.15
Source: Employment Development Department, Long -Term Occupational Projections 2018-2028 (accessed May 2021) Pursuant to Government Code Section 65583(a)(1), 50% of Indian Wells' very low-income regional housing needs assigned by HCD are projected to be extremely low-income households. As a result, from the very low-income need of 117 units (see Table 3-28), the Qty has a projected need of 58 units for extremely low - Housing Element Background Report 1 Page BR -21
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element income households (i.e. households earning 30% or less of the area median income). Based on current figures, extremely low-income households will most likely be facing an overpayment, overcrowding, or substandard housing conditions. Some extremely low-income households could include individuals with mental or other disabilities and special needs. To address the range of needs of ELI households, the Qty will implement several programs including the following programs (refer to the Housing Ran for more detailed descriptions of these programs):
• Program 3: Production of New Housing Units
• Program 6: Evaluate Alternative Funding and Financing Mechanisms • Program 7: Replacement of Affordable Units
• Program 8: Density Bonus Program
• Program X16: Section 8 Housing Choice Vouchers
• Program X617: Support for Persons Experiencing Homelessness 3E. Housing Characteristics

HOUSING TYPE
Table 3-15 identifies the types of housing units in Indian Wells in 2020. The table summarizes total housing stock according to the type of structure. As shown in the table, the majority of housing in Indian Wells is single-family detached housing, which accounted for 67.1% of units in 2020. Mobile homes represent none (0%) of the housing stock. Multifamily units represent 11.7% of the housing stock, with duplex through fourplex units accounting for 4.9% and multifamily developments with five or more units accounting for

6.8%. Single-family attached homes represent 21.1% of housing units.

TABLE 3-15: HOUSING STOCK BY TYPE AND VACANCY (2020)
Units
Percent
Total
5,395
100%
Single Family
Detached Attached
3,622

67.1%
1,140

21.1%
Multifamily
2-4 5+Units
266

4.9%
367

6.8%
IVbbile
I-bmes
0 0%
Occupied Vacant
2,905

53.8%
2,490

46.2%
Sources: SC.4G 6th Cycle Data Package; DOFE-5 Report 2020

VACANCY RATE
Table 3-15 also shows the number and percentage of occupied units and the percentage of vacant units. It is important to note that these counts include all vacant units, including those units that are newly constructed but not yet occupied. In order for the housing market to function properly in a city there should always be some level of housing vacancy, otherwise rents or housing prices could skyrocket. The 46.2% vacancy in Indian Wells is considered extremely high (the historical equilibrium in California is 5.5% for rental vacancy and 1.2% for homeownership vacancy).'
The 2014-2018 ACS data indicates that there were 2,935 vacant units in 2018. As shown in Table 3-16, of the total vacant units in 2018, the vast majority (2,438 or 83.1%) were for seasonal, recreational, or occasional use. Of the remainder, 26 were for rent, 268 were for sale, and 70 were rented or sold but not yet occupied. The overall vacancy rate in Indian Wells in 2018 was 51.5%, revealing a feature atypical of most California communities in that only roughly half of the total population resides in the City on a year- round basis.
1 "California's low residential vacancy rates signal more construction," first tuesday Journal (February 15, 2021).

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-16: VACANCY BY TYPE (2018)
Rented, not occupied
0 0.0%
For sale only
268

9.1%
Sold, not occupied
70 2.4%
For seasonal, recreational, or occasional use
2,438

83.1%
For migrant workers
0 0.0%
Other vacant
133

4.5%
TOTAL
2,935
100%
Source: US Census, 2014-2018 ACS

HOUSING CONDITIONS
The U.S. Census provides only limited data that can be used to infer the condition of Indian Wells' housing stock. In most cases, the age of a community's housing stock is a good indicator of the condition of the housing stock. Moreover, many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs. Typically, housing over 30 years of age is more likely to have rehabilitation needs that may include plumbing, roof repairs, electrical repairs, foundation rehabilitation, or other significant improvements.

The 2014-2018 ACS data indicates that a small percentage (18.8%) of the housing in the City is greater than 50 years old (i.e. built before 1970). Another 14.7% of units were built between 1970 and 1979. The majority of housing in the city (66.4%) was built after 1980. The age of the housing stock indicates that while need for maintenance and rehabilitation assistance may grow during the planning period, it will likely account for a small proportion of total housing. Units built prior to 1970 may require aesthetic and maintenance repairs including roof, window, and paint improvements and some units in this age range may also require significant upgrades to structural, foundation, electrical, plumbing, and other systems. When examining a housing stock to determine what condition it is in, there are certain factors that the Census considers. For example, older units may not have plumbing that is fully functional or the plumbing might be substandard. Table 3-17 indicates that no occupied dwelling units (0%) lacked complete plumbing facilities in 2018.

TABLE 3-17: HOUSING STOCK CONDITIONS (2018)
Year Structure Built
Owner -Occupied
Number Percent
Renter -Occupied
Number
Percent
Total
Number Percent
2014 or later
0 0.0%
0 0.0%
0 1 0.0%
2010 to 2013
19 0.8%
0 0.0%
19 1 0.7%
2000 to 2009
415

18.9%
166 41.0%
611

22.1%
1990 to 1999
316

13.4%
147 36.3%
463

16.8%
1980 to 1989
688

29.2%
52 12.8%
740

26.8%
1970 to 1979
395

16.8%
11 2.7%
406

14.7%
1960 to 1969
422

17.9%
12 3.0%
434

15.7%
1950 to 1959
69 2.9%
0 0.0%
69 2.5%
1940 to 1949
0 0.0%
0 0.0%
0 0.0%
1939 or earlier
0 0.0%
17 4.2%
17 0.6%
TOTAL
2,354
100%
405
100%
2,759
100%
Plumbing
Facilities
(Occupied
Units)
Units with Complete Plumbing Facilities
2,354
100.0%
405
100.0%
2,759
100.0%
Units Lacking Complete Plumbing Facilities
0 0.0%
0 L 0.0%
0 0.0%
Source: US Census, 2014-2018 ACS (Table B25036)
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element As noted, the Qty's housing stock is aging with 37.6% of dwelling units in Indian Wells having been constructed prior to 1980, and as such, structural deterioration and maintenance problems may be prevalent.

A citywide housing conditions survey was last performed in 2020 and indicated at the time that approximately 17% of housing units were in need of maintenance and rehabilitation while approximately less than 1% of housing units were in need of replacement. The Oty's Building Division has estimated that 4% of housing units are currently in need of substantial rehabilitation or replacement.

Additionally, the City's Planning Division has identified one area of the city which appears to have aging housing stock in need of general repairs. The area is generally located north of Miles Avenue, west of Warner Trail, and east of Elkhorn Trail, and was primarily developed under Riverside County jurisdiction and later annexed by the city in 2000. The housing stock mainly consist of mid-century homes with low profile flat roof lines. Due to their age, some of these homes could benefit from general maintenance, including facade and roof improvements.

OVERCROWDING
Typically, a housing unit is considered overcrowded if there is more than one person per room and severely overcrowded if there are more than 1.5 persons per room. Table 3-18 summarizes overcrowding data for Indian Wells. It should be noted that kitchenettes, strip or Pullman kitchens, bathrooms, porches, balconies, foyers, halls, half -rooms, utility rooms, unfinished attics, basements, or other space for storage are not defined as rooms for Census purposes.

Overcrowded households are usually a reflection of the lack of affordable housing available. Households that cannot afford housing units suitably sized for their families are often forced to live in housing that is too small for their needs, which may result in poor physical condition of the dwelling unit. In 2018, 7 housing units (0.3% of the total occupied units) were overcrowded, which represented 0% of owner units and 1.7% of renter units.

TABLE 3-18: OVERCROWDING BY TENURE (2018)
Persons per Room
Owner
Number
Percent
Renter
Number
Percent
Total
Number
Percent

1.00 or less
2,354
100%
398

98.3%
2,752

99.7%

1.01 to 1.50
0 0%
0 0.0%
0 0.0%

1.51 or more
0 0%
7 1.7%
7 0.3%
TOTAL
2,354
100%
405
100%
2,759
100%
Overcrowded
0 0%
7 1.7%
7 0.3%
Source: US Census, 2014-2018 ACS
As shown in Table 3-19, the average household size in Indian Wells was 1.92 persons in 2018, which is the same as the Oty's average household size in 2010 (1.92 persons). Table 3-19 shows Indian Wells' household sizes for owner, renter, and all households. The average household size was lower for renters (1.37 persons).

Owner households had an average size of 2.02 persons. The majority (68.8%) of owner households had two to four persons, compared to 74.8% of renter households that were two to four persons in size. Table 3-20 identifies bedrooms by tenure. Owner households are generally larger than renter households, with 31.5% of owner households having four or more bedrooms, compared with 0% of renter households.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-19: HOUSEHOLD SIZE BY TENURE (2018)
Household Size
Number
Owner
Percent
Number
Renter
Percent
Number
Total
Percent
1 -person
544

23.1%
267

65.9%
811

29.4%
2 -person
1,565

66.5%
138

34.1%
1,703

61.7%
3 -person
110

4.7%
0 0.0%
110

4.0%
4 -person
86 3.7%
0 0.0%
86 3.1%
5 -person
30 1.3%
0 0.0%
30 1.1%
6 -person
19 0.8%
0 0.0%
19 0.7%
7 -or -more -person
0 0.0%
0 0.0%
0 0.0%
TOTAL
2'354
100% (85.3%
of total)
405
100% (14.7%
of total)
2,759
100%
Average Household Size

2.02 1.37

1.92 Source: SC4G 6th Cycle Data Package; U.S. Census Bureau, 2014-2018 ACS TABLE 3-20: NUMBER OF BEDROOMS BY TENURE (2018)
Bedroom Type
Owner Renter Total
Number Percent Number Percent Number Percent
No bedroom
1 -bedroom
2 -bedroom
3 -bedroom
4 -bedroom
5 or more bedroom
0 23
353
1,236
639
103

0.0%

1.0%

15.0%

52.5%

27.1%

4.4%
7 265
87 46
0 0

1.7%

65.4%

21.5%

11.4%

0.0%

0.0%
7 288
440
1,282
639
103

0.3%

10.4%

15.9%

46.5%

23.2%

3.7%
TOTAL
2,354 100.0%
405 100.0%
2,759 100.0%
Source: US Census, 2014-2018 ACS
3F. Housing Costs

FOR SALE HOUSING
As shown in Figure 3-1, between 2000 and 2018,
median home sales prices in Indian Wells increased
75% while prices in the SCAG region increased 151 %.

The 2018 median home sales price in Indian Wells
was $717,000 - the highest median sales price
experienced since 2008. Prices in the Qty have
ranged from a low of 122.7% of the SCAG region
median in 2017 to a high of 195.1% in 2012.

In May 2021, there were 37 homes listed for sale on
Ziiow.com with prices ranging from $267,000
(condominium) to $17,975,000 (4 bed, 9 bath single-
family detached home). Of these homes, there were
34 detached single-family homes with sales prices
beginning at $549,000 As shown in Table 3-21, most
homes for sale are in the $700,000 and more price
range (89.2%), with 5.4% of homes in the $500,000-
$599,999 range 2.7% of homes priced under
TABLE 3-21: HOMES FOR SALE (MAY 2021)
Price
Homes Percent
$700,000 and more
$600,000 - $699,999 1
$500,000 - $599,999 2
$400,000- $499,999 0
$300,000- $399,999 0
$200,000- $299,999 1
$100,000 - $199,999 0
$0 - $99,999 0
33 89.2%

2.7%

5.4%
0%
0%

2.7%
0%
0%
Source: Zlllow. com, 2021
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element $500,000. Z///ow identified the April 2021 median sales price as $888,198. While the median sales price is not affordable to lower and moderate -income households (see Table 3-25), the Qty's home sales prices, which are more than $400,000 higher compared to Riverside County (Z///ow reported a median home sales price of $475,454 for the County in April 2021), could result in demand from the above -moderate income group who seek higher priced units that may offer more space or amenities than other homes in the County.

FIGURE 3-1: MEDIAN HOME SALES PRICE
$ 300.000
$800.000
$ 700.000
$600.000
$500.000
$400.000
$ 300.000
$ 200.000
$100.000
Source: SCAG 6th Cycle Data Package
- SCAG — — — Indian Wells Percentage of SCAG Price

RENTAL HOUSING
Table 3-22 summarizes rents paid in Indian Wells in 2018 by rental range according to the US Census. The range with the highest percentage of units rented was between $500 and $999 at 63.9% (255 units). More than three-quarters (85.2%) of all rentals were under $1,500 per month and 14.8% were over $1,500 per month. According to the US Census, no rentals were $3,000 or more.

TABLE 3-22: RENTAL COSTS ACCORDING TO THE US CENSUS (2018) Rent Range
Number
Percent
Less than $500
14 3.5%
$500 to $999
255

63.9%
$1,000 to $1,499
71 17.8%
$1,500 to $1,999
17 4.3%
$2,000 to $2,499
0 0%
$2,500 to $2,999
42 10.5%
$3,000 or more
0 0%
Median (ddlars)
$861
Source: US Census, 2014-2018 ACS
However, based on a review of rental ads on Zi//ow. com, Rentcafe. com, Zumper. com, and Apartments com, the median rent in Indian Wells in May, 2021 was $4,500 per month. While this estimate is significantly different than the data provided by the US Census, the higher rental rate more closely mirrors the real -world experience in Indian Wells. There were 35 rentals available in May, 2021. Rents varied significantly based on the size of home, ranging from $1,400 for 1 bed/ 1 bath homes to $15,000 for a 2 bed/4 bath home. Moreover, Indian Wells is a seasonal destination, and rental rates fluctuate significantly over the course of the year, with "high season" (where rental rates would be most expensive) occurring between January and April (the cooler months).

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INDIAN WELLS
City of Indian Wells 2021-2029 Draft Housing Element
TABLE 3-23: ACTUAL RENTAL RATES BY NUMBER OF BEDROOMS
Bedroom Type
Units
Available
Rental Survey
Range
Average Rent
Studio
0 N/A
N/A
1 bed
1 $1,400-$1,400
$2,500
2 bed
9 $3,500-$15,000
$4,500
3 bed
21 $2,600-$8,500
$6,000
4 bed or more
4 $6,500-$10,000
$8,500
Sources: Zumper. com and Apartments. com, May 2021

INCOME GROUPS
The California Department of Housing and Community Development (HCD) publishes household income data annually for areas in California. Table 3-24 shows the maximum annual income level for each income group adjusted for household size for Riverside County. The maximum annual income data is then utilized to calculate the maximum affordable housing payments for different households (varying by income level) and their eligibility for housing assistance programs.
• Extreme/y Low-/ncome Households have a combined income at or lower than 30% of area median income (AMI), as established by the Department of Housing and Community Development (HCD). • Very Low-/ncome Households have a combined income between 30 and 50% of AMI, as established by HCD.
• Low-/ncome Households have a combined income between 50 and 80% of AMI, as established by HCD.
• Moderate-/ncome Households have a combined income between 80 and 120% of AMI, as established by HCD.
• Above Moderate-/ncome Households have a combined income greater than 120% of AMI, as established by HCD.

TABLE 3-24: STATE INCOME LIMITS - RIVERSIDE COUNTY (2021) Income Group
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
Extrerrely Low
$15,850
$18,100
$21,720
$26,200
$30,680
$35,160
$39,640
$44,120
Very Low
$26,400
$30,150
$33,900
$37,650
$40,700
$43,700
$46,700
$49,700
Low
$42,200
$48,200
$54,250
$60,250
$65,100
$69,900
$74,750
$79,550
Moderate
$63,250
$72,300
$81,300
$90,350
$97,600
$104,800
$112,050
$119,250
Above Moderate
$63,250+
$72,300+
$81,300+
$90,350+
$97,600+
$104,800+
$112,050+
$119,250+
Source: HCD 2021 Riverside County /ncome Limits
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

HOUSING AFFORDABILITY
Table 3-25 shows the estimated maximum rents and sales prices, respectively, that are affordable to very low, low, moderate, and above moderate -income households. Affordability is based on a household spending 30% or less of their total household income for shelter. Affordability is based on the maximum household income levels established by HCD (Table 3-24). The annual income limits established by HCD are similar to those used by the U.S. Department of Housing and Urban Development (HUD) for administering various affordable housing programs. Maximum affordable sales price is based generally on the following assumptions: 4% interest rate, 30 -year fixed loan, and down payments that vary with income level, as described in Table 3-25.

Comparing the maximum affordable housing costs in Table 3-25 to the rental rates in Tables 3-22 and 3-23 is challenging because the US Census rental rates (Table 3-22) and real world rental rates advertised online in 2021 are significantly different. Based on information provided by the US Census, rental rates in Indian Wells would be generally affordable most households, regardless of income category. However, in practice, real rental rates would price -out the majority of lower -income households and only be affordable to moderate and above -moderate income households, depending on household size.

Although there is at least one home for sale in Indian Wells available to lower -income households based on a comparison of Tables 3-21 and 3-25, the majority of homes (i.e., in the $700,000+ range) are affordable to only above moderate -income households.

TABLE 3-25: HOUSING AFFORDABILITY BY INCOME GROUP
Income Group
Home
Sale
Price*
One Person
Monthly
Rent or
Housing
Cost
Home
Sale
Price*
Two Person
Monthly
Rent or
Housing
Cost
Home
Sale
Price*
Four Person
Monthly
Rent or
Housing
Cost
Home
Sale
Price*
Six Person
IVbnthly
Rent or
Housing
Cost
Extremely Low
$55,163
$396
$63,941
$453
$92,887
$655
$126,874
$879
Very Low
$100,051
$660
$114,682
$754
$143,945
$941
$167,550
$1,093
Low
$165,423
$1,055
$188,833
$1,205
$235,848
$1,506
$270,347
$1,748
Moderate
$255,004
$1,581
$290,315
$1,808
$360,740
$2,259
$417,119
$2,620
Above Moderate
$255,004+
$1,581+
$290,315+
$1,808+
$360,740+
$2,259+
$417,119+
$2,620+
`Maximum affordable sa/es price is based on the following assumptions: 4.0% interest rate, 30 -year fixed loan; down payment:
$5,000 - extremely /ow, $10, 000 - very low,- $15,000 - /ow, $25,000 - moderate; property tax, utilities, and homeowners insurance as 30% of monthly housing cost (extremely low/very low), 28% of monthly housing cost (low), and 25% of monthly housing cost (moderate/above moderate). Homes sales prices are rounded to nearest $900.

Source: De Novo Planning Group, 2021
Extremely Low-income Households
As previously described, extremely low-income households earn less than 30% of the County Area Median Income (AMI ). Depending on the household size, these households can afford rents between $396 and $879 per month and homes priced at $55,163 to $126,874. As of May 2021, there were no rental homes listed on Zillow or Apartments.com that would be affordable to extremely low-income households. However, based on US Census data, approximately 68% of renters pay monthly rents affordable to larger extremely low-income households (where the rent is less than $1,000/month). Smaller households (i.e., two -person households) are more typical in Indian Wells, and in this case, only 3.5% of renters pay rents affordable to smaller extremely low-income households. Extremely low-income households are not able to afford to purchase a home in Indian Wells based on current real estate listings.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Very Low-income Households
Very low-income households earn between 31% and 50% of the County Area Median Income (AMI ).

Depending on the household size, these households can afford rents between $660 to $1,093 per month and homes priced at $100,051 and $167,550. As of May 2021, there were no rental homes listed on Zillow or Apartments.com that could be affordable to very low-income households. However, based on US Census data, approximately 68% of renters pay monthly rents affordable to larger very low-income households (where the rent is just above $1,000/month). However, given that many households in Indian Wells are smaller, it is expected that not all of the 68% of renters who spend up to $1,000/month on rental costs can truly afford rental Very low-income households are not able to afford to purchase a home in Indian Wells based on current real estate listings.

Low-income Households
Low-income households earn between 51% and 80% of the County Area Median Income (AMI ). Depending on the household size, these households can afford rents between $1,055 to $1,748 per month and homes priced at $165,423 to $270,347. As of May 2021, only one of the 35 available rentals listed on Zillow or Apartments.com would be affordable to low-income households. Based on US Census data, approximately 85% of renters pay monthly rents affordable to larger low-income households, meaning the rent is less than $1,748 per month. However, it should be noted that most renters are not six -person households, so the actual affordability by household size may be significantly more limited. Some low-income households may be able to afford a home in Indian Wells (a condominium) but this is only available to larger households and there would not be enough bedrooms to accommodate the household without overcrowding.

Moderate -income Households
Moderate -income households earn between 80% and 120% of the County Area Median Income (AMI ).

Depending on the household size, these households can afford rents between $1,581 and $2,620 per month and homes priced at $255,004 to $417,119. As of May 2021, some rental units available were affordable to moderate -income households; these units included one and three -bedroom units. Moderate -income households maybe able to afford a home in Indian Wells (a condominium) but the vast majority of homes (in the $700,000 and up range) are unaffordable.

OVERPAYMENT
As with most communities, the location of the home is one of the biggest factors with regard to price.

Compared to the county, housing in Indian Wells is relatively unaffordable. Housing is not affordable for most income levels, particularly the extremely low, very low, low, and moderate -income households. Housing is only relatively affordable for the above -moderate income group.

As shown in Table 3-26, 75.8% of renters in Indian Wells and 32.7% of homeowners overpay for housing.

The majority of renters that overpay are in the lower income groups, with all renters (100%) in the low- income group and very low-income groups overpaying for housing (over 30% of their monthly income) and

72.7% in the extremely low-income group and 46.2% in the very low-income group severely overpaying for housing (over 50% of their monthly income). Comparatively, 73.7% of extremely low-income owners and 65% of very low-income owners are severely overpaying. Therefore, while overpayment is more predominate among lower income renter households, overpayment is an issue for both renter and owner households.

More than a third (39.1%) of all households in Indian Wells overpay for housing.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-26: HOUSEHOLDS BY INCOME LEVEL AND OVERPAYMENT (2017) Household Overpayment
Renters
Owners
Total
%of
Income Category
Extremely Low -Income
1 Households
55/ 100%
40/72.7%
70/ 73.7%
70/73.7%
150
100.0%
Wth Cost Burden >30%
Wth Cost Burden >50%
125
110

83.3%

73.3%
Very Low -Income Households
130 I
■
1 _ "1OO.O%
Wth Cost Burden >30%
Wth Cost Burden >50%
130/ 100%
60/46.2%
80/ 80%
65 / 65%
cm -Income Households
Wth Cost Burden >30%
Wth Cost Burden >50%
Total Extremely Low, Very
Low, and Low -Income
Households Paying >30%
Moderate and Above Moderate -
Income Households
Wth Cost Burden >30%
With Cost Burden >50%
104 / 83.2%
4/ 3.2%
289 / 93.2%
89 14/ 15.7%
10/ 11.2%
Total Households
Wth Cost Burden >30%
Wth Cost Burden >50%
303 / 75.8%
114/28.5%
135/ 93.1%
90/ 62.1%
285/ 83.8%
1,985
475/ 23.9%
150/7.6%
210
125

91.3%

54.3%
1 240
95 88.9%

35.2%
575 88.5% of lower income households
2,074
100%
490
160

23.6%

7.7%
760/ 32.7%
375/ 16.1%
1,065
489

39.1%

17.9%
Note: Data is rounded to the nearest 5.

Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017

AFFORDABLE HOUSING INVENTORY
The City uses various funding sources to preserve and increase the supply of affordable housing through new construction and the acquisition and/or rehabilitation of renter -occupied units. Affordability covenants in Indian Wells include developments that hold federal subsidy contracts, received tax credits or mortgage revenue bonds, and/or were financed by redevelopment funds or non-profit developers.

Table 3-27 shows assisted units with covenants that require rents to be maintained at affordable levels for various agreed upon periods of time. In 2020, Indian Wells had 218 total deed -restricted affordable units. A recorded deed restriction serves as an affordability covenant that restricts the income level of a person who occupies the property, and ensures the property will remain available for low to moderate -income persons through the foreseeable future.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-27: DEED RESTRICTED AFFORDABLE HOUSING UNITS
Project Name/Address
Address
No. of No. of Total
Type Restricted Units
Units
Indian Wells Villas
74800 Village Center Drive,
Indian Wells, CA 92210
Senior
90 90
Mountain View Villas
78000 Betty Barker Way,
Indian Wells, CA 92210
Senior
128
128
Sources: aty of Indian Wells, AB 987 - Affordable Housing Database, 2021

MOBILE HOMES
Mobile homes offer a more affordable option for those interested in homeownership. The median value of a mobile home in Riverside County in 2018 was $60,200 (2018 ACS 5 -Year Estimates Data Profile). There are no mobile homes located in Indian Wells (DOF, Table 2: E-5, 1/1/2019). 3G. Future Housing Needs
A Regional Housing Needs Ran (RHNP) is mandated by the State of California (Government Code [GC], Section 65584) for regions to address housing issues and needs based on future growth projections for the area. The RHNP for Indian Wells is developed by the Southern California Association of Governments (SLAG), and allocates a "fair share" of regional housing needs to individual cities. The intent of the RHNP is to ensure that local jurisdictions address not only the needs of their immediate areas but also that needs for the entire region are fairly distributed to all communities. A major goal of the RHNP is to assure that every community provides an opportunity for a mix of affordable housing to all economic segments of its population.

This Housing Element addresses SCAG's Regional Housing Needs Allocation (RHNA) schedule for the 6th Cycle, from 2021 through 2029. The City will need to plan to accommodate 382 new units, which includes 58 extremely low-income units, 59 very low, 81 low, 91 moderate, and 93 above moderate -income units.

Pursuant to Government Code Section 65583(a)(1), 50% of Indian Wells' very low-income regional housing needs assigned by HCD are extremely low-income households, and hence the 58 ELI units. Table 3-28 summarizes Indian Wells' fair share, progress to date, and remaining units.

TABLE 3-28: REGIONAL HOUSING NEEDS ALLOCATION - 6TH CYCLE Status
Extremely
Low
Very
Low
Low
Moderate
Above
Moderate
TOTAL
RHNA Allocation
58 59
81 91
93 382
Constructed/
Under Construction/
Permits Issued
(Since 6/30/2020)
0 0
0 0
0 0
Approved/ Entitled/
In Process
0 0
0 0
0 0
Remaining Allocation
58 59
81 91
93 382
Source: Southern California Association of Governments, 2021; aty of Indian Wells, 2021 Housing Element Background Report 1 Page BR -31
331

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element 3H. Special Needs Groups
Government Code Section 65583(a)(7) requires a housing element to address special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The needs of these groups often call for targeted program responses, such as temporary housing, preservation of residential hotels, housing with features to make it more accessible, and the development of four -bedroom apartments. Special needs groups have been identified and, to the degree possible, responsive programs are provided. A principal emphasis in addressing the needs of these groups is to continue to seek state technical assistance grants to identify the extent and location of those with special needs and identify ways and means to assist them. Local government budget limitations may act to limit effectiveness in implementing programs for these groups.

Please refer to Section 5E of this Element for a discussion of agencies and programs that serve special needs populations in I ndian Wells.

SENIORS
Seniors are considered persons age 65 or older in this Housing Bement. However, it must be noted that some funding programs have lower age limits for persons to be eligible for their senior housing projects.

Seniors have special housing needs primarily resulting from physical disabilities and limitations, fixed or limited income, and health care costs. Additionally, senior households also have other needs to preserve their independence including supportive services to maintain their health and safety, in -home support services to perform activities of daily living, conservators to assist with personal care and financial affairs, public administration assistance to manage and resolve estate issues, and networks of care to provide a wide variety of services and daily assistance.

Various portions of the Housing Bement describe characteristics of the senior population, the extent of their needs for affordable housing, housing designated for seniors, and Qty provisions to accommodate their need.

Senior household growth in Indian Wells from 2010 to TABLE 3-29: SENIOR POPULATION AND 2018 is shown in Table 3-29. The increase in elderly
persons is likely due to Indian Wells' position as a resort city paired with residential growth, as well as aging in place of Indian Wells' residents. Senior households
increased by 18% from 2010 to 2018. While seniors
represent approximately 58.9% of the Qty's population,
senior households represent approximately 69.2% of total households, which is primarily due to the smaller senior household size.

Table 3-30 summarizes senior households by age and
tenure. The majority of senior households are owners,
1,537 or approximately 80.5%, whereas approximately 19.5% of senior households, 372, are renters. Indian Wells has a much higher percentage of owner -occupied elderly households than in Riverside County (55.7% vs. 20%) as well as renter -occupied elderly households (13.5% vs. 5.2%). Elderly renters tend to prefer affordable units in smaller single -story structures or multi -story structures with an elevator, close to health facilities, services, transportation, and entertainment.

HOUSEHOLDS (2010 & 2018)
Population
2010
2018
3,130
Number
2,674
Percent Change
-

17.1%
Annual Percent Change
-

2.1 %
Households
2010
2018
Number
1,618
1,909
Percent Change
-
18%
Annual Percent Change
-

2.2%
Source: US Census, 2010; US Census, 2014-2018 ACS
During the planning period, senior households are anticipated to increase at a rate commensurate with overall population and household growth. Senior housing types can include market rate homes, senior single- family housing communities, senior apartments, and mobile homes.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-30: HOUSEHOLDER AGE BY TENURE (2018)
Age Group
65-74 years
75-84 years
85 plus years
TOTAL
Owners
Number Percent
607
675
255
1,537

39.5%

43.9%

16.6%

80.5%
(of total)
Renters
Number Percent
157
187
28 372

42.2%

50.3%

7.5%

19.5%
(of total)
Source: US Census, 2014-2018 ACS (Table B25007)
The median income of households with a head of household that is 65 years and over is $82,188, less (21.4%) than the median household income of $104,522.

Senior Housing
There is increasing variety in the types of housing available to the senior population. This section focuses on three basic types.

I ndependent Living — Housing for healthy seniors who are self-sufficient and want the freedom and privacy of their own separate apartment or house. Many seniors remain in their original homes, and others move to special residential communities which provide a greater level of security and social activities of a senior community.

Group Living — Shared living arrangements in which seniors live in close proximity to their peers and have access to activities and special services.

Assisted Living — Provides the greatest level of support, including meal preparation and assistance with other activities of daily living.

Indian Wells permits residential care facilities serving six or fewer persons by right in all residential zones, and those serving more than six persons by conditional use permit in Low Density Residential, Medium Density Residential, and Medium High Density Residential Zones. Senior housing is permitted by right in Medium High Density Residential in the form of single room occupancy (SRO) units in congregate housing facilities. Indian Wells also established a Senior Housing Overlay Zone in 1996, which provides development incentives for senior housing by conditional use permit. The California Department of Social Services Community Care Licensing Division reports that as of May 2021, one residential care facility serves the elderly in Indian Wells. Seniors and their caregivers also utilize larger scale residential care facilities for the elderly.

There are no commercially operating assisted living residential care facilities for the elderly in the aty.

Several programs address the non -housing needs of seniors in Indian Wells. Additional support for senior residents is provided by the Joslyn Senior Center of the Cove Communities (Senior Center), a non-profit which serves Indian Wells, Palm Desert and Rancho Mirage. Some of the programs and services provided at the Senior Center include nutrition/meal programs, health screening and health care counseling, legal assistance, and recreational activities. Sunline Transit Agency operates within Indian Wells and provides services to seniors such as reduced fares and paratransit services for those who meet Americans with Disabilities Act (ADA) requirements.

DISABLED PERSONS
A "disability" includes, but is not limited to, any physical or mental disability as defined in California Government Code Section 12926. A "mental disability" involves having any mental or psychological disorder or condition that limits a major life activity. A "physical disability" involves having any physiological disease, disorder, condition, cosmetic disfigurement, or anatomical loss that affects body systems. In addition, a Housing Element Background Report 1 Page BR -33
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element mental or physical disability limits a major life activity by making the achievement of major life activities difficult including physical, mental, and social activities and working.

Physical, mental, and/or developmental disabilities could prevent a person from working, restrict a person's mobility, or make caring for oneself difficult. Therefore, disabled persons often require special housing needs related to potential limited earning capacity, the lack of accessible and affordable housing, and higher health costs associated with disabilities. Additionally, people with disabilities require a wide range of different housing, depending on the type and severity of their disability. Housing needs can range from institutional care facilities to facilities that support partial or full independence (i.e., group care homes). Supportive services such as daily living skills and employment assistance need to be integrated in the housing situation. • Individuals with a mobility, visual, or hearing limitation may require housing that is physically accessible. Examples of accessibility in housing include widened doorways and hallways, ramps, bathroom modifications (e.g., lowered countertops, grab bars, adjustable shower heads, etc.) and special sensory devices including smoke alarms and flashing lights. • Individuals with self -care limitations (which can include persons with mobility difficulties) may require residential environments that include in -home or on -site support services ranging from congregate to convalescent care. Support services can include medical therapy, daily living assistance, congregate dining, and related services.
• Individuals with developmental disabilities and other physical and mental conditions that prevent them from functioning independently may require assisted care or group home environments. • Individuals with disabilities may require financial assistance to meet their housing needs because a higher percentage than the population at large are low-income and their special housing needs are often more costly than conventional housing.

According to the 2014-2018 ACS, there were 907 persons with one or more disabilities in Indian Wells. Of the disabled population, 9% were aged 5 to 64, 91% were aged 65 and over, and 0% were aged 5 and under. Table 3-31 identifies disabilities by type of disability.

TABLE 3-31: DISABILITIES BY DISABILITY TYPE (2018)
Type of Disability
Persons
Number
Ages 5-64
Percent
Persons Ages
Number
65+
Percent
Total
Number
Percent
Hearing Difficulty
34 41.5%
373

45.2%
407

44.9%
Vision Difficulty
32 39.0%
264

32.0%
296

32.6%
Cognitive Difficulty
13 15.9%
108

13.1%
121

13.3%
Ambulatory Difficulty
22 26.8%
449

54.4%
471

51.9%
Self -Care Difficulty
10 12.2%
179

21.7%
189

20.8%
Independent Living
Difficulty
37 45.1%
304

36.9%
341

37.6%
Total Persons with One or
More Disabilities1
82 100% / 9% of
disabled
825
100%/ 91%
of disabled
907
100.0%
1A person may have more than one disability, so the total disabilities may exceed the total persons with a disability Source: US Census, 2014-2018 ACS
As shown in Table 3-32, the 2014-2018 ACS indicates that for individuals between the ages of 16 and 64, approximately 43 persons had some form or type of disability and were not in the labor force. This indicates that their disability may impede their ability to earn an adequate income, which in turn could affect their ability to afford suitable housing accommodations to meet their special needs. Therefore, many in this group may be in need of housing assistance.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-32: DISABLED PERSONS BY EMPLOYMENT STATUS (2018) Ages 16 to 64
Percent
Employed with Disability
39 47.6%
Unemployed with Disability
0 0%
Not in Labor Force with Disability
43 52.4%
Total
82 100%
Source: US Census, 2014-2018 ACS
While recent Census data does not provide income levels or overpayment data for persons with a disability, the 2014-2018 ACS survey does report on indicators that relate to a disabled person's or household's income.

The 2014-2018 ACS data indicates that 70 persons with a disability are below the poverty level. It is likely that a portion of these disabled persons are in households that overpay for housing due to their limited income. The 2014-2018 ACS data indicates that 32.1% of households receiving food stamps or similar assistance have a disabled member. Of the 736 households with a disabled member, 18 households receive food stamps or similar assistance.

The persons in the "with a disability" category in Tables 3-32 and 3-33 include persons with developmental disabilities. "Developmental disability" means "a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual." This term includes an intellectual disability, cerebral palsy, epilepsy, autism, and disabling conditions found to be closely related to intellectual disabilities or to require treatment similar to that required for individuals with an intellectual disability, but does not include other handicapping conditions that are solely physical in nature.

While the U.S. Census reports on a broad range of disabilities, the Census does not identify the subpopulation that has a developmental disability. The California Department of Developmental Services (DDS) maintains data regarding people with developmental disabilities, defined as those with severe, life-long disabilities attributable to mental and/or physical impairments. The DDS data is reported by zip code, so the data reflects a larger area than the Qty of I ndian Wells; however, the data was joined at the jurisdiction level by SLAG to approximate the counts for Indian Wells. The DDS/SCAG data indicates that 5 developmentally disabled persons reside in zip code 92210. Table 3-33 breaks down the developmentally disabled population by residence type. Of these persons, all live at home with a parent or guardian and zero live independently.

TABLE 3-33: DEVELOPMENTALLY DISABLED PERSONS BY RESIDENCE TYPE (2018) Home of
Parent/
Guardian
Independent/
Supported
Living
Community Intermediate
Care Facility Care Facility
Foster/
Family Other TOTAL
Home
Indian WelIs*
5 0
0 0
0 0
5 *Data is for the Indian Wells portion of zip code 92210 Sources: C4 DDS, 2019; SC4G 6th Cycle Data Package
Housing for Disabled Persons
Households with a disabled member will require a mixture of housing units with accessibility features, in - home care, or group care housing facilities. Some of these households will have a member with a developmental disability and are expected to have special housing needs. Developmentally disabled persons may live with a family in a typical single-family or multifamily home, but some developmentally disabled persons with more severe disabilities may have special housing needs that may include extended family homes, group homes, small and large residential care facilities, intermediate care, and skilled nursing facilities and affordable housing such as extremely low/very low/low-income housing (both rental and ownership), Section 8/Housing Choice Vouchers, and single room occupancy -type units.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Although there are no assisted living residential care facilities for adults with special needs, including physical, mental, and developmental disabilities in I ndian Wells, there are a number of resources available throughout the county to serve the disabled residents of Indian Wells. Table 3-34 identifies some of the organizations in or near Indian Wells that specialize in providing services for the disabled and developmentally disabled population.

TABLE 3-34: FACILITIES AND SERVICES FOR DISABLED PERSONS Organization Name
Type of Service Provided
Disabled Population Served
Angel View
Residential care, vocational and
life skills training
Developmentally disabled children
and adults
Braille Institute
Orientation and mobility, telephone
reader program, vocational
programs, etc.

Adults and children with vision
impairments
Coachella Valley Autism Society
Educational and social programs
Children and young adults with
autism
Community Access Center (CAC)
Advocacy, assistive technology
Disabled adults
Desert ARC
Vocational and life skills training,
recreation, adult day center,
supported living services
Developmentally disabled adults
Desert Access & Nobility
Transportation and mobility
services
Persons with vision impairments
United Cerebral Palsy of the Inland Empire
In -home care, vocational and life
skills training,
Developmentally disabled children
and adults
Variety — The Children's Charity of the
Desert
Nobility equipment and support
Developmentally disabled children
The 2014-2018 ACS data indicates that for individuals between the ages of 5 and 64, approximately 0.4% of the total population of Indian Wells have an ambulatory difficulty, 0.6% have a vision difficulty, 0.6% have a hearing difficulty, and 0.7% have an independent living difficulty. These types of disabilities may impede their ability to find suitable housing accommodations to meet their special needs. Therefore, many in these groups may be in need of housing assistance. Households containing physically handicapped persons may also need housing with universal design measures or special features to allow better physical mobility for occupants.

The 2014-18 ACS data also indicates that 736 households (26.7%) in Indian Wells had one or more disabled persons, including developmentally disabled persons. It is anticipated that this rate will remain the same during the planning period. Housing needed for persons with a disability during the planning period is anticipated to include community care facilities or at-home supportive services for persons with an independent living difficulty or self -care difficulty (approximately 10% of the population), as well as housing that is equipped to serve persons with ambulatory and sensory disabilities. Approximately 26.7% of the RHNA, 102 units, may be needed to have universal design measures or be accessible to persons with a disability.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

LARGE FAMILY HOUSEHOLDS
Large family households are defined as households of five or more persons. Large family households are considered a special needs group because there is often a limited supply of adequately sized housing to accommodate their needs. The more persons in a household, the more rooms are needed to accommodate that household. Specifically, a five -person household would require three or four bedrooms, a six -person household would require four bedrooms, and a seven -person household would require four to six bedrooms.

In Indian Wells, 49 households, 1.8% of all households, have five or more persons as described in Table 3-

19. Of the large households, all (100%) own their home and zero rent. Typically, there are more owner - occupied large households that are cost burdened when compared to renter households and the population as a whole. However, the 2014-2018 ACS survey does not provide data regarding overpayment for large households. Table 3-35 compares the median income for households with five or more persons to the citywide median income for 2018. No data was provided for five -person households and seven or more person households, suggesting that there were no respondents in those large family categories. For six person households, the median household income was higher versus the citywide median of $104,522.

TABLE 3-35: MEDIAN INCOME BY HOUSEHOLD SIZE (2019)
Size Median Income
5 -Person Households
N/A
6 -Person Households
$250,000+
7 or More Person Households
N/A
Median Household Income (All Households)
$104,522
Source: US Census, 2014-2018 ACS
Large families can have a difficult time finding housing units large enough to meet their needs. In Indian Wells, there appears to be a significant amount of ownership housing available to provide units with enough bedrooms for larger households, but rental housing is limited to three -bedroom units. Table 3-36 identifies the number of large households by household size versus the number of large owner and rental units. While there are adequate units in I ndian Wells to accommodate large owner and renter households, it does not mean that there is a match between housing units that exist and large families. As described in Table 3-18, 0% of owner -occupied homes and 1.7% of renter -occupied homes are overcrowded.

TABLE 3-36: HOUSEHOLD SIZE VERSUS BEDROOM SIZE BY TENURE (2018) Tenure
3 BR
Units
5 Person Households
House-
holds
Shortfall/
Excess
6 Person and Larger
4+ BR Households
Units
House-
holds
Shortfall/
Excess
Owner
Renter
1,236
46 30
0 1,206
46 742
0 19
0 723
0 Source: US Census, 2014-2018 ACS
Large households require housing units with more bedrooms than housing units needed by smaller households. In general, housing for these households should provide safe outdoor play areas for children and should be located to provide convenient access to schools and child care facilities. These types of needs can pose problems particularly for large families that cannot afford to buy or rent single-family houses. Based on the proportion of the City's households that are at least five persons, it is anticipated that approximately

1.8% of the regional housing needs allocation units will be needed to accommodate large households and an emphasis should be placed on ensuring rental units are available to large households.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

SINGLE PARENT AND FEMALE -HEADED HOUSEHOLDS
Single parent households are households with children under the age of 18 at home and include both male - and female -headed households. These households generally have a higher ratio between their income and their living expenses (that is, living expenses take up a larger share of income than is generally the case in two -parent households). Therefore, finding affordable, decent, and safe housing is often more difficult for single parent and female -headed households. Additionally, single parent and female -headed households have special needs involving access to daycare or childcare, health care, and other supportive services.

While the majority of households in Indian Wells are either two -spouse couples or single person households,

7.4% of family households are headed by a single male or single female. There are 48 male heads of household with no wife present and none of these households have children under 18. There is a larger number of female householders with no husband present — 90 households or 4.8% of family households — and 8 of these female -headed households have children under 18. Table 3-37 identifies single parent households by gender of the householder and presence of children.

The median income of female -headed households (no husband present) is $27,969, 58.7% less than the median income of a male -headed, no wife present family ($67,679) and 73.2% less than the median income of all households in the City ($104,522). Approximately 2.9% of all households are under the poverty level; no (0%) female -headed households with related children under 18 are under the poverty level.

TABLE 3-37: FAMILIES AND FEMALE HOUSEHOLDER WITH CHILDREN UNDER 18 (2018)
Category
Number
1,858
Percent
100%
Total Families
Male householder, no wife present
48 2.5%
Wth children under 18
0 0%
Female householder, no husband present
90 4.8%
Wth children under 18
8 0.4%
Source: US Census, 2014-2018 ACS
As Indian Wells' population and households grow, there will be a continued need for supportive services for single parent households with children present. To address both the housing and supportive services needs of female -headed households, additional multifamily housing should be developed that includes childcare facilities (allowing single mothers to actively seek employment).

In addition, the creation of innovative housing for female -headed households could include co -housing developments where childcare and meal preparation responsibilities can be shared. The economies of scale available in this type of housing would be advantageous to this special needs group as well as all other low- income household groups. Limited equity cooperatives sponsored by non-profit housing developers are another financing structure that could be considered for the benefit of all special needs groups.

FARMWORKERS
Farmworkers are traditionally defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. Agricultural lands have historically been one of Riverside County's most important land uses and agriculture continues to play a large role in the local economy. While Riverside County has recently experienced an unprecedented level of population growth leading to a more diverse economic base that includes manufacturing, technology, and service -oriented sectors, it remains strongly tied to an agricultural base.

Despite this fact, the 2014-2018 ACS data estimates that only 47 (2.8%) of the working population) of Indian Wells' residents were employed in agriculture (or related industries — forestry, fishing and hunting, mining) Housing Element Background Report 1 Page BR -38
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element in 2018. It is possible (although statistics are not available) that the number of residents employed in agriculture as opposed to those employed in forestry, fishing and hunting, or mining is smaller than 47. In addition, it is possible (although statistics are not available) that a number of active farmworkers are not full- time residents of Indian Wells, and migrate into the area depending on seasonal crop harvest. The United States Department of Agriculture (USDA) estimates that there were 1,684 migrant farmworkers in Riverside County in 2017. USDA estimates that 5,607 farmworkers worked seasonally (hired for a period of less than 150 days) in Riverside County in 2017, while 5,758 farmworkers in Riverside County were permanent (hired for a period of greater than or equal to 150 days). Such farmworkers may find temporary housing by living with relatives, or short-term rental of a single unit for several families, resulting in overcrowded conditions.

HOMELESS PERSONS
Government Code Section 65583(a)(7) requires that the Housing Element include an analysis of the needs of homeless persons and families. Homeless persons are defined as those who lack a fixed and adequate residence. People who are homeless may be chronically homeless (perhaps due to substance abuse or mental health issues) or situationally homeless (perhaps resulting from job loss or family strife). Homeless people face critical housing challenges due to their very low incomes and lack of appropriate housing. Thus, state law requires jurisdictions to plan to help meet the needs of their homeless populations.

The law also requires that each jurisdiction address community needs and available resources for special housing opportunities known as transitional and supportive housing. These housing types provide the opportunity for families and individuals to "transition" from a homeless condition to permanent housing, often with the assistance of supportive services to assist individuals in gaining necessary life skills in support of independent living.

Homeless Estimates
Counting the homeless population is problematic due to their transient nature; however, through the efforts of the Riverside County Continuum of Care (CoC) estimates have been developed. The Riverside County CoC is a consortium of individuals and organizations with the common purpose of developing and implementing a strategy to address homelessness in Riverside County. The Riverside County CoC is responsible for managing U.S. Department of Housing and Urban Development (HUD) funds for homelessness, and is uniquely positioned to identify system needs and take steps to address them with the collaboration and partnership of community stakeholders.

As the primary coordinating body for homeless issues and assistance for the entire County, the Riverside County CoC accomplishes a host of activities and programs vital to the County, including an annual point -in - time "snapshot" survey to identify and assess the needs of both the sheltered and unsheltered homeless.

Riverside County's 2020 Point -in -Time (PIT) Count was conducted on January 29, 2020 and was planned, coordinated, and carried out by County agencies, city municipalities, non-profit service providers, and volunteers, including those experiencing homelessness.

The 2020 PIT Count identified one (1) person in the City of Indian Wells experiencing homelessness, representing less than one percent of Riverside County's total homeless count (2,884 individuals). For Riverside County, an estimated 729 (25.3%) of the 2,884 homeless individuals were sheltered and an estimated 2,155 (75%) were unsheltered. The person identified in Indian Wells was unsheltered.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Housing Accommodations
The Indian Wells Zoning Code allows emergency shelters by right in Community Commercial Zone, subject to compliance with objective standards consistent with the requirements identified in Government Code Section 65583(a)(4). Currently, transitional and supportive housing are allowed by right in the Very Low Density Residential, Low Density Residential, Medium Density Residential, Medium High Density Residential zones and subject only to the same requirements for residential uses of the same type (e.g., single-family or multifamily) in the same zone. The Qty is updating the Zoning Code to clarify that transitional and supportive housing are considered a residential use of property and are subject to those restrictions that apply to other residential dwellings of the same type in the same zone, in accordance with Government Code Section 65583, subdivision (c)(3). The Housing Ran includes policies and programs directed to encourage the provision of housing and services for the homeless population as well as persons and households at risk of homelessness.

There are currently no homeless shelters or transitional housing facilities operating in the Qty. Instead, Indian Wells supports a regional effort to provide emergency shelters and transitional and supportive housing among the various local agencies making up the Riverside County CoC.

The most recent inventory of resources available within Riverside County for emergency shelters, transitional housing, and permanent supportive housing units comes from the 2020 Housing Inventory reported to HUD by the Riverside County CoC. Table 3-38 shows the total beds offered by homeless facilities in the Riverside County CoC area.

TABLE 3-38: HOMELESS FACILITIES (2020)*
Facility Type
Family Units
Riverside County CoC Region
Family Beds Adult -Only Beds
Total Year -
Round Beds
Emergency Shelter
80 310
505
839
Transitional Housing
11 42
50 92
Permanent Supportive Housing
112
414
1,330
1,744
Rapid Re -Housing
69 238
80 318

TOTAL UNITS/BEDS
272
1,004
1,965
2,993
*Numbers are for the total Riverside County Continuum of Care region for which Indian Wells is a participating member Source: HUD 2020 Continuum of Care Homeless Assistance Programs, Housing Inventory Count Report • Emergency Shelters — An emergency shelter is defined as housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less. Furthermore, no individual or household may be denied emergency shelter because of an inability to pay. • Transitional Housing — Sometimes referred to as "bridge" housing, provides housing accommodations and support services for persons and families, but restricts occupancy to no more than 24 months. In the Riverside County CoC region, a total of 92 transitional housing beds are provided.
• Permanent Supportive Housing — Supportive housing has no limit on length of stay and is linked to onsite or offsite services that assist residents in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. A total of 1,744 permanent housing beds are provided in the Riverside County CoC region. • Rapid Re -Housing — Rapid re -housing provides short-term rental assistance and services. The goals are to help people obtain housing quickly, increase self-sufficiency, and stay housed.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element A network of local and regional service providers operates a number of programs to serve the needs of varied homeless subpopulations. Table 3-39 provides a list of emergency and transitional shelters and available services for the homeless population in and around Indian Wells.

TABLE 3-39: FACILITIES AND SERVICES FOR THE HOMELESS
Organization Name
Type of Service Provided
Homeless
Population
Served
Number of Beds
Coachella Valley Rescue
Mission
Emergency shelter, transitional housing
All
Shelter for 300+ people
through emergency shelter
and residential shelter
Martha's Village & Kitchen
Emergency shelter, food services,
emergency and healthcare services, etc.

All
120
Path of Life Ministries
Emergency housing, pet r ranent
supportive housing, rapid rehousing
program
All
85 Assessment of Need
Based on the available information, there is a countywide homeless population of 2,884 persons and 2,993 beds, indicating sufficient supply for homeless persons. It is noted that the 2020 point -in -time survey identified 729 sheltered homeless persons and 2,155 unsheltered homeless persons. The discrepancy between sheltered homeless persons and the county's total capacity to house homeless persons indicates a need for additional community services resources to assist and match the homeless population with the countywide shelter and housing resources.
3I. Units at Risk of Conversion

ASSISTED HOUSING AT RISK OF CONVERSION
California housing element law requires jurisdictions to provide an analysis of low-income, assisted multifamily housing units that are eligible to change from low-income housing uses during the next 10 years (2021-2031) due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use (Government Code 65583). These units risk the termination of various subsidy groups which could convert certain multifamily housing from affordable to market rate. State law requires housing elements to assess at -risk housing in order to project any potential loss of affordable housing.

The California Housing Partnership (CHP) provides data on assisted housing units, including those in Indian Wells. Table 3-40 indicates the extent of subsidized multifamily rental housing in the City, the subsidy programs that are in place for each project, and the likelihood of current housing assisted projects to convert to market rate projects that would not provide assistance to lower income residents.

TABLE 3-40: SUMMARY OF AT -RISK SUBSIDIZED HOUSING UNITS Project/Address
No. & Type of Type of
Units Subsidy
Current Owner
Earliest
Date of
Conversion
Risk
Indian VVells Villas
78000 Betty Barker Way
89 Senior
Section 8/
LMIHAF Qty Housing Authority
2031
High
Mountain View Villas
8000 Betty Barker Way
128
Senior
Section 8/
LMIHAF
City Housing Authority
2036
Moderate
Sources: Qty of Indian Wells, 2021
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element The Indian Wells Villas project provides 89 affordable units, which include 31 very low, 45 low, and 13 moderate income units, that are at high -risk of conversion during the planning period. Options to preserve these affordable units are explored below.

PRESERVATION OPTIONS
Depending on the circumstances of the at -risk projects, different options may be used to preserve or replace the units. The following discussion highlights ways that the Qty's at -risk units could be preserved as affordable housing.

Replacement Through New Construction
The construction of new lower income housing units is a means of replacing the at -risk units should they be converted to market rate. The cost of developing new housing depends on a variety of factors such as density, size of units, location and related land costs, and type of construction. Assuming an average development cost of $460,000 per unit for multifamily rental housing, replacement of the 89 at -risk units would require approximately $40,940,000, excluding land costs, which vary depending upon location.

Purchase of Replacement Units
One preservation option is for a non-profit organization to purchase similar units. By purchasing similar units, a non-profit organization can secure lower -income restrictions and potentially enable the project to become eligible for a greater range of governmental assistance. The cost of purchasing similar units depends on a number of factors, including the market conditions at the time, occupancy rate, and physical conditions of the units to be acquired.

Current market value for the at -risk units is estimated on the basis of the units' potential annual income, and operating and maintenance expenses. The estimated market value of Indian Wells' current stock of at -risk affordable housing is unknown. The actual market value at time of sale would depend on market and property conditions, lease-out/turnover rates, among other factors.

Extension of Affordability Covenants
Another option to preserve the affordability of at -risk projects is to extend affordability covenants. The Qty of Indian Wells Housing Authority owns and currently maintains the affordability covenants on both existing affordable projects (Indian Wells Villas and Mountain View Villas). The affordability covenant for Indian Wells Villas is at high -risk of conversion and the aty is in a unique position to preserve these units through the extension of the project's affordability covenants.

Qualified Entities
Qualified entities are non-profit or for-profit organizations with the legal and managerial capacity to acquire and manage at -risk properties that agree to maintain the long-term affordability of projects. HCD maintains a list of qualified organizations, and there are many that have an interest in properties located in Indian Wells and Riverside County. Table 3-41 lists the qualified entities in Riverside County. Federal. State, and local financing and subsidy programs that may be considered to preserve at -risk units are listed in the Resources section below.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-41: QUALIFIED ENTITIES IN RIVERSIDE COUNTY, 2021 St. Vincent de Paul Village
San Diego
Neighborhood Housing Services of the Inland Empire, Inc.

San Bernardino
BUILD Leadership Development Inc.

Newport Beach
Coachella Valley Housing Coalition
Indio
Anka Behavioral Health
Concord
Housing Corporation of America
Laguna Beach
Southern California Presbyterian Homes
Glendale
The East Los Angeles Community Union (TELACU)
Los Angeles
Nexus for Affordable Housing
Orange
Orange Housing Development Corporation
Orange
Keller & Company
San Diego
Poker Flats LLC
Los Angeles
Coalition for Economic Survival
Los Angeles
CSI Support & Developrrent Services
Monrovia
ROEM Developrrent Corporation
Santa Clara
Innovative Housing Opportunities, Inc.

Irvine
L + M Fund Management LLC
Westchester
Sources: California Department of Housing and Community Development, 2021 3J. Estimates of Housing Need
Several factors influence the degree of demand, or "need," for housing in Ctantonlndian Wells. The major needs categories considered in this Element include:
• Housing needs resulting from the overcrowding of units • Housing needs that result when households pay more than they can afford for housing • Housing needs of "special needs groups" such as elderly, large families, female -headed households, households with a disabled person, farmworkers, and the homeless State law requires that cities quantify existing housing need in their Housing Element. Table 3-42 summarizes the findings.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 3-42: SUMMARY OF NEEDS
Summary of Households/Persons with Identified Housing Need Percent of Total
Population/Households
Households Overpaying for Housing:

Renter Households Overpaying

11.1%
Owner Households Overpaying

27.9%
Extremely Low-income Households (0-30% AMI) Overpaying

4.6%
Very Low-income Households (0-30%AMI) Overpaying

8.4%
Low-income Households (0-30%AMI) Overpaying

9.9%
Overcrowded Households:

Overcrowded Renter Households
0%
Overcrowded Offer Households

0.3%
All Overcrowded Households

0.3%
Special Needs Groups:

Elderly Households

58.9%
Disabled Persons

17.1%
Developmentally Disabled Persons

0.1%
Large Households

1.8%
Female Headed Households

3.3%
Female Headed Households with Children

0.3%
Farm orkers

1.7%
Homeless
<0.1%
Affordable Housing Units At -Risk of Conversion to Market Rate Costs 089
Sources: US Census, 2014-2018 ACS; Riverside County Regional Analysis of Impediments to Fair Housing Choice Housing Element Background Report 1 Page BR -44
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

4. Constraints
Constraints to housing development are defined as government measures or non -governmental conditions that limit the amount or timing of residential development.

Government regulations can potentially constrain the supply of housing available in a community if the regulations limit the opportunities to develop housing, impose requirements that unnecessarily increase the cost to develop housing, or make the development process so arduous as to discourage housing developers.

State law requires housing elements to contain an analysis of the governmental constraints on housing maintenance, improvement, and development (Government Code Section 65583(a)(4)).

Non -governmental constraints (required to be analyzed under Government Code Section 65583(a)(5)) cover land prices, construction costs, and financing. While local governments cannot control prices or costs, identification of these constraints can be helpful to Indian Wells in formulating housing programs. 4A. Governmental Constraints
Housing affordability is affected by factors in both the private and public sectors. Actions by the aty can have an impact on the price and availability of housing in I ndian Wells. Land use controls, site improvement requirements, building codes, fees, and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. These governmental constraints can limit the operations of the public, private, and non-profit sectors, making it difficult to meet the demand for affordable housing and limiting supply in a region. All Qty zoning regulations, development standards, specific plans, and fees are posted online and available to the public, consistent with the requirements of AB 1483. 4A.1 Land Use Controls
Local land use policies and regulations impact the price and availability of housing, including affordable housing. This section discusses the General Ran land use designations and provisions in the Zoning Code relative to the types of housing allowed within Indian Wells as a potential governmental constraint.

GENERAL PLAN
The General Ran Land Use Element sets forth land use designations that guide the location, type, and intensity or density of permitted uses of land in the Qty of Indian Wells. The Zoning Code (Title 21 of the Municipal Code) implements the General Plan by providing specific direction and development standards for each general land use category. Table 4-1 shows residential land uses, the corresponding zoning designation, and permitted densities allowed for housing.

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INDIAN WELLS
City of Indian Wells 2021-2029 Draft Housing Element
TABLE 4-1: GENERAL PLAN RESIDENTIAL LAND USE DESIGNATIONS General Plan
Designation Description
Zone
Symbol
Zoning Description
Very Low Density
(RVLD)
Single family detached homes on lots a minimum of 12,000 sq. ft. This designation allows a maximum density of 1.0-3.0 du/ac.

RVLD
Very Low Density
Residential (max. 3.0
du/ac)
Low Density (RLD)
Single family detached homes on lots a minimum of 8,500 sq. ft. This designation allows a maximum density of 3.1-4.5 du/ac.

RLD
Low Density
Residential (max. 4.5
du/ac)
Medium Density
(RMD)
developments, - •
Single family detached homes, W'r'
attached designation allows density of
ri •
RMD
Medium Density
Residential (max. 7.0
du/ac)
Medium High Density
(RMHD)
Attached dwelling units such as townhouses, condominiums, and congregate care for seniors. This designation allows a maximum density of 7.1-12.0 du/ac.

RMHD
Medium High Density
Residential (max 12.0
du/ac)
Open Space, Natural
Preserve
Limited residential development permitted subject to the restrictions of the Hillside Management Plan (HMP) and
consistent with the Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP).

NPR
Open Space, Natural
Preserve (max 1
du/40 ac)
Senior Housing
Overlay (SHO)
Overlay zone applied to sites proposed for Senior Housing projects.

SHO
Density subject to
underlying zone
Affordable Housing
Overlay (AHO)
Overlay zone applied to sites proposed for Affordable Housing projects.

AHO
Density subject to
underlying zone
Sources: Qty of Indian Wells General Ran, 2007; Qty of Indian Wells Zoning Code, 2021

SPECIFIC PLANS
A specific plan is a comprehensive planning document that guides the development of a defined geographic area in a mix of uses including residential, commercial, industrial, schools, and parks and open space. Specific plans typically include more detailed information than the General Ran about land use, traffic circulation, development standards, affordable housing programs, resource management strategies, and a comprehensive infrastructure plan. Specific plans are also used as a means of achieving superior design by providing flexibility in development standards beyond those contained in the Zoning Code.

The City Council has adopted three specific plans. Each one contains detailed regulations, conditions, programs, and design criteria unique to a defined geographic area within Indian Wells and is intended to implement the General Ran. The adopted specific plans are consistent with the General Ran. Future specific plans, specific plan amendments, and development projects must be consistent with policies contained in the General Ran, including the General Ran Land Use Element. The following discussion summarizes two primary specific plans that may accommodate a significant portion of the Regional Housing Needs Allocation (RHNA) through the planning period.

Indian Wells Crossing Specific Plan
The I ndian Wells Crossing Specific Ran (formally Miles Crossing Specific Plan) proposes a commercial mixed - use development, luxury hotel and villas, and condominium complex over 34 acres of undeveloped land. The plan outlines a framework for growth and development of the project site, which is comprised of two Ranning Areas on either side of Miles Avenue at the intersection of Highway 111. Planning Area One, an approximately

15.7 -acre lot on the northeast corner of Miles Avenue and Highway 111, is a proposed commercial development with no residential uses. Ranning Area Two, an approximately 15.2 -acre lot on the northwest corner of Miles Avenue and Highway 111, is a proposed resort complex featuring a 139 key luxury hotel, 31 hotel villas, and two six -story condominiums totaling 54 residential units. The development standards and Housing Element Background Report Page BR -46
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element parking requirements that apply to each land use category are those of the underlying zones. For example, the residential units in Panning Area Two are implemented by the Resort Commercial (RC) zoning district. A Zone Text Amendment was approved in 2018 to allow 54 full-time residential condominium units on 1.3 acres within the RC zoning district within Planning Area Two. The applicable development standards are discussed under the Zoning Code section below.

Indian Wells Town Center Specific Plan
The Indian Wells Town Center Specific Ran (I WTCSP) proposes a resort hotel, retail and restaurant commercial space, and resort residential across a currently undeveloped 70.15 -acre site on the northwestern and southwestern corners of Miles Avenue and Washington Street. The I WTCSP serves as the guiding document to provide policy, regulatory, and design guidance within the project area, which consists of four planning areas. Planning Area Three is the portion of the Ran identified as suitable for detached single-family residential units on a 25.21 -acre site that will be split into 65 lots a minimum of 8,500 square feet. The IWTCSP proposes a change in zoning from Sports Complex (SPX) to Resort Commercial (RC) along Miles Avenue.

Table 4-2 outlines the site development standards established for residential units within the Indian Wells Town Center Specific Flan.

TABLE 4-2: RESIDENTIAL DEVELOPMENT STANDARDS -

INDIAN WELLS TOWN CENTER SPECIFIC PLAN
Development Standard
IWTCSP
IVinimum Project Size
Minimum Lot Dimensions (width, depth)
Setbacks
Front
Side (interior)
Side (street)
Rear
Maximum Building Height
8,500
70'x121'
20 5', minimum combined 16'
15' (comer lots)
10'
16' or 20' for any tower
element
Source: Indian Wells Town Center Specific Flan, 2013.

ZONING CODE
Land use policies in the General Flan are implemented primarily through the Zoning Code. The Zoning Code provides for a range of densities and residential uses and is designed to protect and promote the health, safety, and general welfare of residents, which includes preserving the character and integrity of established residential neighborhoods. To that end, the Qty has established specific development standards that apply to residential construction in various districts. These include density, lot coverage, building height, parking standards, and other applicable requirements.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Provisions for a Variety of Housing Types
State housing element law requires that jurisdictions facilitate and encourage a range of housing types for all economic segments of the community. This includes the production of housing to meet the needs of different types of households with incomes ranging from low to above moderate. The Housing Element is the Qty's plan for achieving this objective.

As shown in Table 4-3, the City's Zoning Code accommodates a wide variety of conventional and special needs housing, including single-family dwellings, duplexes, multifamily, ADUs, manufactured housing, mobile home parks, residential care facilities (small and large), and transitional and supportive housing.

TABLE 4-3: PERMITTED RESIDENTIAL USES BY ZONE
Housing Type
RVLD
Residential
RLD
Zones
RMD
RMHD
Open
Space
NPR
Commercial
CC
RC
Single -Family (Detached)
P
P
P
P
C
—
-
Single -Family (Attached)
—
P
P
P
--
—
—
Residential Cluster Development
C
C
C
C
C
—
—
Multi -Family
—
—
C
C
--
—
—
Accessory Dwelling Unit
P
P
P
P
P
--
—
Mobile/Manufactured Housing
P
P
P
P
P
C
—
Single Room Occupancy (SRO)
—
—
—
P
—
—
--
Boarding House/Rooming House
—
—
—
—
—
C
—
Senior Housing
C
C
C
C
--
—
--
Emergency Shelter
—
—
—
--
--
P
--
Transitional Housing
P
P
P
P
--
—
—
Supportive Housing
P
P
P
P
—
—
--
Source: Q"ty of Indian Wells Zoning Code, 2021
Notes: "P' = Perm/tied; "C' = Conditional Use Permit; and "--" = Not Permitted Single -Family: Detached single-family dwellings and subdivisions are permitted by right within RVLD, RLD, RMD, RMHD zones and in the NPR zone subject to a Conditional Use Permit (CUP). Attached single-family dwellings, which are units that are attached side by side, are permitted by right within the RMD and RMHD zones and in the RVLD and RLD zones subject to a CUP. Single-family projects where a CUP is not required are subject to a ministerial review. Single-family projects that require a CUP are reviewed by the Planning Commission.

Multi -Family: Multifamily developments are permitted in the RMD and RMHD zone subject to a CUP. Multi- family developments without a Home Owners Association (HOA) and Covenants, Conditions, and Restrictions (CC&Rs) are permitted with a site plan review and approval by the Community Development Director or designee. Multi -family developments with HOAs and CC&Rs are subject to the Subdivision Map Act and the Conditional Use Permit process.

Accessory Dwelling Unit (ADU): Government Code Section 65852.2(a)(1) allows local agencies to designate areas within a city where accessory dwelling units (ADU) may be permitted and to impose development standards addressing issues such as unit size, height, setbacks, lot coverage, parking, landscaping, and architectural review. Program 8 in the Housing Plan requires the Zoning Code to be updated to be consistent with California Government Code Sections 65852.150 and 65852.2, which establish regulations for accessory dwelling units.

Indian Wells Municipal Code (I WMC) Chapter 21.80 addresses development standards for Ancillary Quarters, which is the overall term used in the Zoning Code to describe additional living quarters provided on a lot with Housing Element Background Report 1 Page BR -48
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element a primary unit. This definition encompasses Second Dwelling Unit and/or Accessory Living Quarters which are also used in the Zoning Code. Currently, the zoning code permits second dwelling units in all residential zones where a primary single-family unit already exists.

Government Code Section 65852.2(j)(1) defines an accessory dwelling unit as "an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated."
Construction of an ADU or JADU (junior accessory dwelling unit) is permitted on a lot in a residential or mixed -use zone that allows residential uses and includes a proposed or existing dwelling. A building permit is required for an ADU and JADU pursuant to compliance with the minimum requirements described below and in HMC Scction 17.21.0401 WMC Section 21.80.060. Construction of ADUs shall be permitted on any residential or mixed -use zone that allows residential units, subject to the following criteria, which include (but are not limited to):
• Sites developed or proposed to be developed with a single-family residence shall not be permitted more than one ADU.
• Sites developed with a multifamily building may convert existing non -habitable square footage within the building to a minimum one ADU and a maximum that shall not exceed twenty-five percent of the number of units on the site. Sites developed with a multifamily building are also permitted to construct two ADUs or to convert detached accessory buildings, garages, carports, or covered parking structures to a maximum of two ADUs.
• A maximum of one JADU shall be permitted on a site developed or proposed to be developed with a single-family residence, unless the subject site proposes or contains an attached ADU. In such cases, a JADU shall not be permitted.

The approval process is ministerial in nature, and the Qty must approve or deny an application for a building permit to construct an ADU or JADU within 60 days after receiving a complete application. If a complete application for a building permit to construct an ADU or JADU is submitted in connection with an application to construct a new primary dwelling on a lot, the application may not be approved until the application is approved for the new dwelling. The application for the ADU or JADU must be processed ministerially regardless of the approvals required for the primary dwelling.

Manufactured Housing: State law requires that manufactured housing, when constructed as a single- family dwelling on a permanent foundation, be treated as a conventional single-family home subject to the same development standards as a single-family residential dwelling on the same lot would require, except for architectural requirements limited to its roof overhang, roofing material, and siding material.

Manufactured homes may be placed on individual lots that allow single-family residential uses provided that the homes are attached to a foundation system in compliance with all applicable building regulations and Section 18551 of the Health and Safety Code and occupied only as a residential use. Manufactured homes are subject to all Zoning Code provisions applicable to residential structures.

Residential Care Facility: Residential care facilities are subject to the same development standards and permit processing requirements as other residential uses in those zones, pursuant to the California Lanterman Developmental Disabilities Services Act.

Senior Housing: The Oty established the Senior Housing Overlay Zone to provide standard incentives for the development of a wide variety of specialized housing designed for and restricted to residents over the age of 55. This includes congregate living, independent living, and active retirement communities. Housing Housing Element Background Report 1 Page BR -49
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element forms include single-family dwellings, town homes, and other attached housing. All development in this overlay zone shall be in accordance with an approved site plan and CUP.

Emergency Shelter: Emergency shelters are permitted in the Community Commercial (CC) zone, subject to ministerial review and approval and compliance with objective standards consistent with the requirements identified in Government Code Section 65583(a)(4). To better address the special needs of homeless individuals and to ensure compatibility with adjacent properties and uses, Section 21.30.075 of the City's Zoning Code establishes use and development standards for emergency shelters as follows:
• An emergency shelter shall contain a maximum of twenty (20) beds; • The shelter shall operate only from 5:00 p.m. to 8:00 a.m; • The objective of the shelter is to assist clients in obtaining permanent housing, income and services; • Residency at the shelter is limited to a maximum of one hundred eighty (180) days; • The shelter shall have a written Management Plan that details staffing, training and qualifications, neighborhood outreach, transportation, security, volunteers and donation procedures, intake screening, treatment programs, and emergency plans;
• Attention to the size and location of interior and exterior waiting areas shall be included in the design of the facility; and
• Exterior security lighting and appropriate off-street parking are required.

No emergency shelters are currently located within Indian Wells. The City has identified several vacant sites with CC zoning that are suitable for emergency shelters, including: property on the northeast corner of Miles Avenue and Highway 111; a portion of the partially developed 39.46 -acre Southwest Community Church property generally located Southwest of Fred Waring and Washington; and 0.69 acres within the Indian Wells Plaza commercial center. Assuming a gross floor area of 125 square feet per bed, all of the sites identified would be adequate to accommodate the one emergency shelter bed needed to serve Indian Wells' unhoused population, based on the Riverside County 2020 PIT Count. The CC zone is suitable for emergency shelters because:
• Shelters are compatible with a range of uses that are common in suburban communities and allowed in commercial zones (e.g., clinics, day care centers, office buildings, general retail, convalescent home, etc.);
• The CC zone is located along major corridors (Highway 111 and Fred Waring Drive) with easy access to public transit (Sunline bus Route 1 and Route 6);
• There is a mixture of existing uses in the CC zone that include restaurants, retail, office uses, and health care uses; and
• Although hazardous materials may be present and used on some of the properties within the CC zone, the majority of parcels are not known to be constrained by the presence of hazardous materials.

Low Barrier Navigation Center: A low barrier navigation center is 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. AB 2162 requires jurisdictions to further streamline approval of eligible low barrier navigation center applications in areas zoned for mixed -use and residential zones permitting multifamily uses, subject to specific criteria. The City's Zoning Code does not conform to these recent requirements; however, Program 12 13 in the Housing Ran requires the Zoning Code to be updated to address AB 2162.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Transitional and Supportive Housing: Transitional housing is a type of housing used to facilitate the movement of homeless individuals and families to permanent housing. Transitional housing can take several forms, including group quarters with beds, single-family homes, and multifamily apartments and typically offers case management and support services to return people to independent living (usually between 6-24 months). The Zoning Code defines transitional housing to have the same meaning as Government Code Section 65582(j).

According to the National Housing Institute, supportive housing is permanent housing with a service component, which can be provided either on -site or off -site. The Zoning Code defines supportive housing to have the same meaning as Government Code Section 65650(a). The Qty's definition is consistent with Government Code Section 65582(g).

Senate Bill 2 provides that transitional housing and supportive housing that is a rental housing development constitutes a residential use. It requires zoning to treat such uses as a residential use and subject only to those restrictions that apply to other residential uses of the same type in the same zone. The Zoning Code allows transitional and supportive housing as a residential use, subject to the same permitting process and development standards as other residential uses in the residential zones.

Sing/e Room Occupancy (SRO): Single room occupancy (SRO) facilities are a housing type that is considered suitable to meet the needs of extremely low, very low, and low-income households. With high housing costs, many communities in California are exploring the use of single -room occupancy housing to fulfill the affordable housing needs of certain segments of the community, such as seniors, students, and single workers. The Indian Wells Zoning Code defines SRO units as "a structure that provides living units that have separate sleeping areas and some combination of shared bath or toilet facilities. The structure may or may not have separate or shared cooking facilities for the residents. SRO units includes structures commonly called residential hotels." SRO units are permitted by right in the RMHD zone.

Housing for Disabled Persons: On January 1, 2002, SB 520 became effective and required local jurisdictions to analyze local government constraints on developing, maintaining, and improving housing for persons with disabilities. In accordance with SB 520 and Government Code 65583(a)(7), the aty recognizes the importance of providing housing for persons with disabilities. Persons with disabilities have a number of specific housing needs, including those related to design and location. Design needs generally include the removal of architectural barriers that limit the accessibility of dwelling units and construction of wheelchair ramps, railings, etc. Location needs include accessibility to public transportation, commercial services, health care, and supportive services. Some persons with disabilities need group housing opportunities, especially those who are lower -income or homeless. The following discussion addresses these issues and determines that no specific City policy or regulation serves to impede the access that persons with disabilities have to housing that suits their specific needs.

Zoning and Land Use: The General Ran and Zoning Code provide for the development of attached homes in the RMD and RMHD zones by right, and multi -family housing in the RMD and RMHD zones by CUP. Traditional single- and multi -family housing for persons with special needs, such as apartments for the disabled, are considered regular residential uses permitted in these zones. The City's land use policies and zoning provisions do not constrain the development of such housing.

Under the Lanterman Developmental Disabilities Services Act (Lanterman Act), small State -licensed residential care facilities for six or fewer persons must be permitted in all zones that allow single or multifamily uses, subject to the same permit processing requirements and development standards. The City of Indian.

Wel+shas included Program 13, Development Code Amendments — Housing Constraints, to will amend the Zoning Code to define a small residential care home as a single-family residential use, and therefore permitted in the NPR zone subject to a CUP, in order to maintain compliance state laws and regulations.

Large residential care facilities serving seven or more clients are allowed in the RMD and RMHD zones subject Housing Element Background Report 1 Page BR -51
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element to a CUP. Conditions are similar to those for other similar uses in the same zones and would not serve to unduly constrain the development of residential care facilities for more than six persons. To date no CUP has been processed for a group home. Occupancy standards for residential care facilities are the same as occupancy standards for all other residential uses. The Zoning Code also accommodates transitional and supportive housing in all residential zoning districts and subject only to the same requirements for residential uses of the same type (e.g., single-family or multifamily) in the same zone. These facilities may serve persons with disabilities. The City does not have a local definition of "family" utilized in zoning and land use and thus does not distinguish between family and nonfamily households.

Building Code: Building construction and procedures within Indian Wells are required to conform to the 2019 California Building Code, as adopted in Title 16 of the Qty's Municipal Code. Standards within the Building Code include provisions to ensure accessibility for persons with disabilities. These standards are consistent with the Americans with Disabilities Act (ADA). No local amendments that would constrain accessibility or increase the cost of housing for persons with disabilities have been adopted and aty officials are not aware of any instances in which an applicant experienced delays or rejection of a retrofitting proposal for accessibility to persons with disabilities.

Reasonable Accommodation: Both the federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodation (i.e., modifications or exceptions) in their zoning laws and other land use regulations to allow disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be a reasonable accommodation to waive a setback requirement so that elevated ramping can be constructed to provide access to a dwelling unit for a resident who has mobility impairments. Whether a particular modification is reasonable depends on the circumstances and must be decided on a case -by -case basis.

Reasonable accommodation refers to flexibility in standards and policies to accommodate the needs of persons with disabilities. The aty's zoning and building codes, as well as approach to code enforcement, allow for special provisions that meet the needs of persons with disabilities without the need for variances.

The Qty's Reasonable Accommodation Ordinance is codified in Chapter 1.24 of the City's Municipal Code.

The aty's Planning Director has administrative/ministerial authority to hear and decide applications for reasonable accommodation to allow reasonable remedy from zoning and other land use regulations, policies, and procedures for individuals with physical or mental impairment. A request for reasonable accommodation may include a modification or exception to the rules, standards, and practices for the siting, development, and use of housing or housing -related facilities that would eliminate regulatory barriers and provide a person with a disability equal opportunity to housing of their choice.

Reasonable accommodation applications are not charged a fee for review and the reviewing authority must consider all of the following factors:

1. When housing is the subject of the request for Reasonable Accommodation, the housing will be used by a person with disabilities protected under fair housing laws;

2. As applicable, the requested accommodation is necessary to make housing available to a person with disabilities protected under the fair housing laws;

3. The requested accommodation would not impose an undue financial or administrative burden on the aty;

4. The requested accommodation would not require a fundamental alteration in the nature of the aty's policies, practices or procedures, including consideration of alternatives which may provide an equal level of benefit; and

5. The requested accommodation will not result in a direct and significant threat to the health or safety of other persons or substantial physical damage to the property of others.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Conclusion: Current planning policies and zoning regulations have mitigated potential constraints to the availability of housing for persons with disabilities. The Qty has analyzed its Zoning Code and procedures to ensure that it is providing flexibility in, and not constraining the development of, housing for persons with disabilities.

Development Standards
Development standards directly shape the form and intensity of residential development by providing controls over land use, heights and volumes of buildings, open space on a site, etc. Ste development standards also ensure a quality living environment for all household groups in the City, including special groups such as lower and moderate -income households and senior citizens. Table 4-4 summarizes development standards in the residential zones (RVLD, RLD, RMD, and RMHD) and Open Space, Natural Preserve (NPR) zone, including density, minimum lot size, setbacks, lot coverage, and building height, by zoning district.

TABLE 4-4: BASIC RESIDENTIAL DEVELOPMENT STANDARDS
Development Standard
Density Maximum (units per acre)
RVLD

3.0 RLD

4.5 RMD

7.0 RMHD

12.0 NPR
1 du/40
ac
Minimum Lot Area
40 (square feet)
12,000
8,500
12,000
12,000
acres
Minimum Lot Dimensions (width/depth)
100' x
100'
80' x 100'
100' x
100'
100' x
100'
Minimum Dwelling Unit Size (square feet)
2,000
2,000
1,000
1,000
2,000
Front
20 20
20 20
50 Setbacks (feet)
Rear
10 10
10 20
100
Interior Side Yard
8 8
8 10
25 Street Side Yard
15 15
15 15
—
Maximum Dwelling Height (feet)
1 story
1 story
2 story
2 story
1 story
18'/15'1
18'/15'1
30'/25'1
30'/25'1
18'/15'1
Sources: aty of Indian Wells Zoning Code, 2021.

1. For at least 70% of roof area.

To facilitate housing development, the City allows reduced minimum unit sizes within the Senior Housing Overlay Zone. Reduced minimum unit sizes vary by the number of bedrooms as follows:
• studio: 360 to 450 square feet;
• one -bedroom: 500 to 600 square feet; and
• two -bedroom: 700 to 800 square feet.

The City has not received any negative feedback from the development community regarding its land use controls, including height limits or minimum unit size. The aty has analyzed all other development standards for their impact on housing supply, costs, timing, and ability to achieve the maximum densities and concluded that they do not pose a significant constraint on housing. In addition, the City offers flexibility in standards through variance requests, in which the City works cooperatively with the proiect applicant to understand the nature of the requests and how granting of the variance could positively impact the availability of housing, reduce costs, reduce time, and improve an applicant's ability to achieve maximum densities. As part of the City's General Ran and Development Code Update, the City is exploring updates to its development standards intended to reduce government constraints and promote housing development and affordability; this may include form -based standards to provide additional development flexibility. As part of the Housing Ran, the aty has also included Program 14, Density Bonus Ordinance, to amend its Density Bonus Ordinance Housing Element Background Report 1 Page BR 53
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element consistent with State law, including density bonuses and incentives for projects that contain 100% very low - and low-income units. The Qty continues to monitor development standards and provide flexibility, such as variance requests and density bonus development incentives, as needed.

Residential Parking Requirements
Parking standards are an important development regulation in communities. The aty's parking requirements are intended to ensure that adequate off-street parking and loading facilities are provided in proportion to the need created by the type of use. Adequate parking for residential projects contributes to the value of a project, the safety of residents, and the quality of a project's appearance. However, excessive parking standards can pose a significant constraint to the development of housing because they can reduce the buildable area on a site and impact the funding available for project amenities or additional units. The parking requirements for residential and mixed -use developments are shown in Table 4-5.

TABLE 4-5: RESIDENTIAL PARKING REQUIREMENTS
Use
Detached Single-Fanily
Dwelling
Requirement
• 2 spaces located within a garage attached
to the structure
Additional Regulations
__
• Studio/1-bdrm 2 spaces located within a
• An additional 1 space for guest
Multi-Fanily (Apartments
garage
parking provided for every 4 units
and Condominiums)
• 2+ bdrm: 2 spaces located within a garage
unless guest partdng can be
+ 0.5 guest spaces per unit
provided on private streets
No parking is required if ADU is:
• Located within 0.5 mile walking
distance of public transit
• Located within an architecturally
and historically significant
historic district
Accessory Dwelling Unit
• 1 space per ADU
• Part of the proposed or existing
(based on State law)
• No spaces required for JADU
primary residence or an
accessory structure
• Wien on -street parking permits
are required but not offered to
the occupant of the ADU
• When there is a car share
vehide located within one block
of the ADU
Sources: aty of Indian Wells Zoning Code, 2021; Qty of Indian We//s Design Guide for Hghest Density Residential and Mixed Use Development, 2012

1. When a garage, carport, or covered parking structure is demolished In conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.

The City has provisions within the Senior Housing Overlay Zone and Affordable Housing Overlay Zone to waive or reduce the parking requirements for projects that include affordable housing units, and also allows for parking reductions for senior housing developments. Moreover, affordable housing developments that are eligible for a density bonus pursuant to Government Code Section 65915-65918 are eligible to use parking standards established by State Density Bonus law. The City has included Program 13, Development Code Amendments — Housing Constraints, to update the Oty's emergency shelter parking requirements consistent with AB 139.

The City has not received any feedback from the development community regarding parking standards in Housing Element Background Report 1 Page BR -54
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element the RMD or RMHD zones. The Oty has analyzed all other parking standards, including requirements in zones allowing multifamily uses, and concluded that they do not pose a significant constraint on housing. The Qty continues to monitor parking requirements and provide flexibility, such as variance requests or parking reductions for senior and affordable housing projects, as needed.

On/Off Site Improvements
On- and off -site improvement requirements for residential development in the Oty may be imposed when necessary for the proper development of the area. As a condition of approval of a tentative map, the City Council may require the subdivider to dedicate property for public use or benefit, including local streets and arterial highways; alleys; trails, paths and pedestrian ways; rights -of -way for drainage and erosion -control facilities; flood -control facilities; parks; open space; easements for landscaping maintenance; public utility easements; and other public easements. Requirements for site improvements are at a level necessary to meet the Qty's costs and are necessary to protect health, safety, and welfare.

Section 20.80.010 of the City's Municipal Code sets street width standards within Indian Wells. In many areas of the Oty, sidewalks and curbs are already in place. The City's street standards are consistent with those of surrounding areas, and include the following:
• Collector Streets — Minimum right-of-way width is 72 feet and concrete curbs and gutters with 48 feet between curbs.
• General Local Streets — Minimum right-of-way width is 60 feet and concrete curbs and gutters with 40 feet between curbs.
• Restricted Local — Minimum right-of-way width is 50 feet and concrete curbs and gutters with 32 feet between curbs.
• Alleys — Minimum right of way width is 20 feet and asphalt pavement full width.

The City allows deviation from these standards in certain cases due to physical constraints or where circumstances dictate special treatment. On- and off -site improvements have not been determined to be a constraint on housing supply and affordability.
4A.2 Development Review Process
The time and cost of permit processing and review can be a constraint to housing development if significant development review is required. Project review and permit processing are necessary steps to ensure that residential construction proceeds in an orderly manner. The time required for project approval is often not so much a factor of the approval body (Director versus Planning Commission), but the complexity of the project and associated environmental issues. However, small infill projects that can be approved administratively are generally less complex and take a shorter time to obtain appropriate approvals. Large mixed -use projects or residential subdivision maps, subject to the California Environmental Quality Act (CEQA), require a public hearing before the Planning Commission.

The Qty reviews all applications for development to ensure the construction of projects that contribute in a positive manner to the community and improve quality of life. Residential development projects typically undergo several types of approvals — ministerial, discretionary actions (either with or without a public hearing), and legislative actions. This section outlines the timeline for typical residential development review and describes the permitting requirements and procedures for Design Review, Conditional Use Permits (CUP), Subdivision Maps, etc. Given the development activity during the 5th Cycle RHNA period, the Qty's processing and permit procedures do not appear to unduly constrain the development of housing.

TIMEFRAMES
Processing times for applications in Indian Wells vary based upon the scope and type of project. The amount of time involved in processing applications depends on the type of project, the applicant's compliance with Housing Element Background Report 1 Page BR -55
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element the Qty's ordinances, and the completeness of the applications. Certain types of applications/permits are discretionary and require a public hearing, while others are processed administratively. Through administrative approval, the applicant bypasses the public hearing requirement and shortens the processing time.

Some projects may take an extended period for final approval. However, these projects generally have significant environmental impacts, involve General Flan or specific plan amendments, rezoning, or need additional community workshops. Developers may be responsible for delays by failing to provide information or requesting continuances. Permit approval under these circumstances requires more time for public notice, public hearings, and negotiation of design modifications to resolve problems.

On average, the typical processing time for a single-family home ranges from 30-60 days, which assumes plan check and building permits with no additional entitlements required. These residential projects tend not to create substantial environmental impacts, thereby greatly reducing the time needed for review. The typical processing time for a multifamily unit is 3-6 months, which assumes that additional entitlements are required, a moderate level of environmental analysis is necessary, and public hearings with the Planning Commission and/or City Council will occur.

Table 4-6 outlines the typical permit processing times and associated reviewing body by the type of approval or permit. It should be noted that many projects require multiple entitlements, which are often processed concurrently, thereby shortening the overall processing time. The Qty has established a list of standard permits that apply to residential development projects ranging from building permits to use permits.

TABLE 4-6: TYPICAL PERMIT PROCESSING TIMES AND REVIEWING BODY Type of Approval or Permit
Director
Review
PC
Authority
CC
Public
Hearing
Processing
Times
Administrative Design Review
D
A
A
No
2-4 Weeks
Design Review
D
A
Yes
3-6 Weeks
Development Agreement
R
D
Yes
3-6 Weeks
Conditional Use Permit
R
D
Yes
3-6 Months
Variance
R
D
Yes
2-4 Months
Zoning Amendment or Zone Change
R
D
Yes
3-6 Months
General Plan Amendment
R
D
Yes
3-6 Months
Tentative Map/Parcel Map
R
D
Yes
3-6 Months
Source: Qty of Indian Wells, 2021
D = Deciding body whose decision is final unless appealed R = Advisory body required to make recommendations
A = Appeal authority
Administrative Design Review
A review to determine zoning compliance is conducted for all developments in the City to ensure that a proposed development complies with all applicable City Codes and any previously approved plans or maps for the site. Regulations checked during this review include setbacks, landscaping, building height, parking, and other requirements of this Zoning Code. In addition, this review checks all previously applied conditions of approval to ensure that the development meets these requirements. This review is conducted by the Director of Community Development prior to the issuance of building permits.

Architecture and Landscape Review
I n accordance with Chapter 21.60 of the Zoning Code, all development is required to comply with the Oty's architecture and landscape review procedures. The Design Review Committee reviews all building proposals to determine whether the proposed standards meet the basic zoning and design parameters set forth in the Housing Element Background Report 1 Page BR -56
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Zoning Code and applicable design guidelines established by the Qty, or if applicable, a Homeowners Association's Architectural Guidelines. Factors for consideration include, but are not limited to, site layout, site design, and ensuring the general appearance of structures, buildings and other constructed and erected objects is compatible with the existing built and landscaped environment and to ensure harmony between the structure and landscape.

Conditional Use Permit (CUP)
Chapter 21.06, Section 21.06.040 of the Zoning Code regulates the issuance of Conditional Use Permits (CUP). Land uses that require a CUP generally have a unique and distinct impact on the area in which they are located or are capable of impacts to adjacent properties unless given special review and conditions. The following residential uses require a CUP:
• Single -Family attached homes in the RVLD and RLD zones; • Residential Cluster Development in RVLD, RLD, RMD, RMHD, and NPR zones; • Multi -Family units in the RMD and RMHD zones; and
• Large (7 or more clients) residential care facilities in the RMD and RMHD zones.

The Planning Commission may approve, conditionally approve, or deny a CUP application unless the application includes concurrent processing of a permit that requires Qty Council action, in which case the Panning Commission makes a recommendation to the City Council. The approving body must make the following findings prior to approval, pursuant to Section 21.06.040 of the Zoning Code:

1. That the proposed location of the conditional use is in accord with the objectives of this Zoning Code and the purpose of the General Ran and zoning land use category in which the site is located;

2. That the proposed conditional use will not be detrimental to the public health, safety or welfare, or be materially injurious to properties or improvements in the vicinity;

3. That the proposed conditional use will comply with each of the applicable provisions of this Zoning Code except for approved Variances.

The following applies to applications for Conditional Use Permits on property located in a residential zone:

1. The Planning Commission shall hold at least one (1) public hearing and shall approve, approve with conditions, or deny, the Conditional Use Permit by resolution based on the findings in Section

21.06.040(d).

2. If the Planning Commission approves, or approves with conditions, the Conditional Use Permit, the Clerk of the Planning Commission shall forward the approval or approval with conditions to the Qty Council for review and approval through the following process. The item shall be placed on the Qty Council's Consent Calendar. Any Qty Council Member or any interested person may remove the item from the Council's Consent Calendar and request that the item be scheduled for a public hearing before the City Council.

3. If the item is so removed from the Consent Calendar, the City Council shall hold at least one (1) public hearing and shall approve, conditionally approve, or deny the Conditional Use Permit by resolution based on the findings in Section 21.06.040(d).

4. If the item remains on the Consent Calendar, the "date of decision of the Qty Council" for purposes of Section 21.06.040(1) shall be the date the Consent Calendar containing the item is approved by the Qty Council. City Council action either by (i) removal of the item, Council public hearing, and Council approval, or (ii) acceptance by approval of the item on the Consent Calendar, shall constitute granting of the permit by the Qty Council in accordance with Section 21.06.040(a).

5. In the event the Planning Commission denies the application or imposes a condition with which the Housing Element Background Report 1 Page BR -57
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element applicant disagrees, the applicant may appeal the Planning Commission's decision to the City Council in accordance with the appeal procedures set forth in Section 21.06.110.

6. Nothing herein shall prevent the Planning Commission from requesting that the City Council hold a public hearing on a Conditional Use Permit application.

Subdivisions
This review process applies to all residential land divisions within the Qty. Title 20 of the Indian Wells Municipal Code includes the standards and processes for subdivisions. It is based primarily on the State Subdivision Map Act. As it relates to residential development, the regulations apply to all land divisions that create lots for single-family homes and lots, or condominiums, for multifamily development. As part of the review process for subdivisions, the Oty reviews applications for compliance with lot size and shape standards, the general layout of the subdivision, and infrastructure requirements. If the project complies with the subdivision standards and General Plan density, the project can proceed through the approval process.

The Oty has not denied any CUPs involving residential projects. Further, the City has not received any feedback from the development community that the CUP process is a constraint to residential development.

As described in Program 10, Monitoring Potential Constraints, in the Housing Plan, the Oty will continue to monitor Oty regulations, including development review processes, to remove potential impacts on housing supply, cost, timing and approval certainty.

Reasonable Accommodation
The Qty's process for providing reasonable accommodation allows individuals, or their representatives, to make requests for reasonable accommodations for persons with disabilities as part of the permit process. No additional permits are required or additional fees charged by the City. Requests for reasonable accommodation to meet the needs of persons with disabilities are approved administratively, and a use permit is not required. Qty staff is available to provide assistance regarding the processing of requests for the construction of accessory structures intended to accommodate persons with disabilities. Information regarding the approval of these structures is included within all public notices and agendas, as applicable.

Indian Wells' reasonable accommodation procedure complies with Housing Element law and provides an accessible way for disabled residents to make necessary changes to their properties.

FACILITATED ENVIRONMENTAL REVIEW
The Qty has adopted uniform procedures for complying with the requirements of the California Environmental Quality Act (CEQA) for assessing the potential environmental impacts of those development applications determined to be a "project" as defined by Public Resources Code 21000-21177. Environmental review is required for most discretionary actions including Design Review, Conditional Use Permits, Subdivision Maps, and legislative actions including General Ran or Specific Flan amendments, zone changes, and code amendments. Environmental review occurs while the application is being processed. An environmental determination by City staff for a project is made in order to prepare the appropriate environmental document that can be considered by the decision -making authority with the legislative or discretionary application.

In addition to the requirements of CEQA, the Oty of Indian Wells Zoning Code contains additional environmental standards for the City's environmental review process in HMC Section 17.06.040.

DEVELOPED DENSITIES AND PERMIT TIMES
The Qty has not received any requests during the prior planning period to develop housing at densities below those anticipated. Based on a typical residential project, the City estimates that the Building Plan check is about two weeks for initial review and one week for each subsequent review thereafter. The Oty finds that this is a reasonable timeline and works diligently with applicants once they submit material for review.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

STREAMLINING APPROVALS
Lower Income Sites Included in Previous Elements
While the Design Review process is not considered a constraint to housing, Program 12 13 has been included to comply with Government Code 65583.2. This program will provide for ministerial approval (e.g., Planning Director approval of Design Review and entitlements other than a subdivision map) of housing projects with a minimum of 20% of units affordable to lower income households and will increase certainty for affordable and multifamily developers related to residential sites throughout the community.

Senate Bill (SB) 35
SB 35 provides provisions for streamlining projects based on a jurisdiction's progress towards its RHNA and timely submittal of the Housing Element Annual Progress Report. When jurisdictions have insufficient progress toward their above moderate -income RHNA and/or have not submitted the latest Housing Element Annual Progress Report, these jurisdictions are subject to the streamlined ministerial approval process (SB 35 (Chapter 366, Statutes of 2017) streamlining) for proposed developments with at least 10% affordability.

HCD reviews the annual progress report deadlines and RHNA progress on an annual basis. Indian Wells is currently subject to SB 35 streamlining provisions when proposed developments include 50% affordability.

Program 4--13 in the Housing Ran has been provided to incorporate the mandatory streamlining provisions into the Qty's Zoning Code. These streamlining provisions will reduce approval requirements for projects that include a minimum of 50% of units affordable to lower income households and that meet the criteria specified by State law.

FLEXIBILITY IN DEVELOPMENT STANDARDS
Development standards affect the financials of a residential project, both from the revenue side (through achievable density) and through the costs of accommodating specific development standards. However, there is no specific threshold that determines whether a particular standard or combination constrains the affordability or supply of housing. Many factors determine project feasibility. While prior sections discussed how to reduce development costs, the following describes ways that the Zoning Code offers flexibility in development standards.

Residential Density Bonus
In 1996, the Qty updated the Zoning Code to establish two residential overlay districts, the Affordable Housing Overlay Zone and the Senior Housing Overlay Zone, that allow for density bonuses for affordable and senior residential projects in accordance with State Density Bonus law. Section 21.12.040 of the Zoning Code addresses density bonus requirements for affordable housing and senior residential projects. Program 13 14 in the Housing Plan requires the Zoning Code to be updated to address density bonuses and other incentives for housing and/or child care facilities in accordance with the requirements of State law, including Government Code Title 7, Division 1, Chapter 4.3 (Density Bonuses and Other Incentives).

Inclusionary Housing
The Qty does not have any requirements that obligate developers to provide or fund housing at specific affordability levels.

Short -Term Rentals
Chapter 5.20 of the I WMC addresses short-term rentals. I WMC Section 5.20.040 requires an owner to obtain a valid business permit and short-term residential rental permit from the Qty before renting a dwelling unit as a short-term rental or advertising the availability of a short-term rental. There were 14 short-term rentals in Indian Wells listed on Airbnb.com in July 2021. All 14 rentals were to rent the entire home or condominium unit. It is difficult to determine if this decreases the amount of housing stock available for permanent occupancy, as the units may be used primarily as vacation homes.

BUILDING CODES AND ENFORCEMENT
New construction in Indian Wells, including additions and remodels, must comply with the 2019 California Housing Dement Background Report 1 Page BR -59
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Building Code (CBC). The Oty adopted the 2019 California Building Code with all required updates. The Building Code establishes construction standards necessary to protect public health, safety, and welfare, and the local enforcement of this code does not unduly constrain development of housing. The 2019 California Building Code, Title 24, Part 2, Volumes 1 and 2, published by the International Code Council, was adopted by the City by reference as Title 16 of the Qty's Municipal Code and subject to the amendments contained in that Title.

Amendments have been made to the California Building Code, Mechanical Code, Plumbing Code, Electrical Code, and Fire Code, as detailed in Title 16 of the City's Municipal Code. No local amendment to the Building Code has either been initiated or approved that directly impacts housing standards or processes. Further, these amendments have been assessed for their impact on the production of market rate and affordable housing and there are no constraints as a result. Code enforcement is conducted by the Oty and is based upon issues identified by the community and reported to City staff. The City maintains general records of neighborhoods where code complaints are most prevalent and works proactively with these neighborhoods to address potential issues before they become significant concerns. The City enforces its code requirements equitably throughout the community, as necessary. Program 1 in the Housing Plan has been included to help support homeowners with rehabilitating substandard housing. The Code Enforcement Department works with property owners and renters to assist in meeting State health and safety codes. 4A.3 Development Fees
The City of I ndian Wells charges fees to process plans submitted for residential projects and to fund the provision of important services that are needed to accommodate housing and population growth. Fees and exactions are used to finance public facilities, roadways, water and sewer infrastructure, schools, and other community services. Nearly all these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or the extent of the benefit that will be derived. Failure to adequately plan for residential development is a key reason why jurisdictions are so financially constrained today. I n general, these fees can be a constraint on housing development and compromise market -rate affordability because the additional cost borne by developers contributes to overall increased housing unit cost. However, the fees are necessary to maintain adequate planning services and other public services and facilities in the City.

For new residential projects, developers in I ndian Wells may be required to pay one or more of the following fees depending on the location, type, and size of the project:

Planning, Building, and Environmental Fees: The City of Indian Wells charges developers standard plan check fees, fees for processing applications, building permits, tentative tract maps, environmental initial study, variance, conditional use permit, or other permits to pay for the cost of processing applications and conducting inspections for specific projects. This does not include additional fees paid by the developer for project -specific environmental impact reports.

City Impact Fees: The Oty charges impact fees to finance new or expanded infrastructure and public facilities required to serve residents. The fee must have a reasonable relationship to the infrastructure costs and represent the marginal cost of improvements required to serve residents of the new residential projects. The City charges fees to offset impacts to public streets, drainage facilities, water quality, and parks. Other fees and assessments may apply depending on the location.

Regional Impact Fees: Regional impact fees include water and sewer fees collected by the water district and sanitation district, and school impact fees collected by the school districts as allowed by State law to finance the construction and expansion of schools to accommodate student enrollment. The water, sanitation, and school districts have the authority to set the fee levels; the City does not have any ability to adjust these fees.

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INDIAN WFLLS City of Indian Wells 2021-2029 Draft Housing Element Panning and permitting fees are charged on an at -cost basis to cover staff services and administrative expenses for processing development applications. Development impact fees are required to provide essential services and infrastructure to serve new residents. Impact fees are governed by State law to 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. The Qty recognizes that planning/permitting and development fees add to the cost of residential development. To mitigate the impact of planning/permitting and impact fees on the cost of residential development, the Oty uses HOME, CDBG, as well as other funding sources to gap -finance affordable housing development.

Table 4-7 details the City's Planning Department processing fees for development project entitlements. One or more of the entitlements would be required to process a residential project depending on the scale and complexity of the project and a building permit is required for each residential structure.

TABLE 4-7: DEVELOPMENT PROJECT PROCESSING FEES (EFFECTIVE 07/01/2021) Entitlements
Planning and Application Fees
General Plan Amendment
$6,180.03
Specific Ran
$6,010.47
Zone Change
$6,180.03
Conditional Use Permit (New Use)
$6,904.62
Conditional Use Perrrit (Existing Single-Farrily Residential Lot)
$3,131.09
Conditional Use Permit (Modify Existing)
$4,145.30
Variance
$2,029.47
Subdivisions
Tentative Tract Map
$5,731.38
Tentative Parcel Map
$4,749.82
Environmental Review
Categorical Exemption
$403.37
Environmental Assessment — Negative Declaration
Cost + %35 M. Chrg
EIR Expanding Study, Mitigated Negative Dedaration
Cost + %35 Ad. Chrg
Source: Qty of Indian Wells, 2021
Note: This is only a partial list of typical Planning fees.

Table 4-8 provides the ratio of typical development cost to fees per unit for single and multi -family developments in Indian Wells, based on recent projects within the City. As shown in Table 4-8, there is no significant difference in the total fees (development impact fees and permit fees) for single- versus multifamily development. The exact fees associated with an individual project will vary greatly based on the exact project parameters. However, the Oty reviews its fees annually to confirm that its fees are in line with those charged by other agencies in the region and that they do not present a constraint to development.

TABLE 4-8: TOTAL PROCESSING AND FEES FOR TYPICAL SINGLE- AND MULTI -FAMILY UNITS Housing Type
t ti id eu tSihiiid 6u rlopoi tic —J(1 Oa i-ee
Total Fees Development Cost per to Development Costs per Unit Unit
Single Farrily
$7,221.28
$250,000
Multi -Family
$7,221.28
$301,740
Source: Qty of Indian Wells, 2021
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element As part of this Housing Element Update, the City has considered all fees incurred by the development community and considered these fees as a potential constraint on housing supply and affordability. As demonstrated throughout this Background Report, the City of Indian Wells has a strong history of housing production at all income levels and proactively coordinates with the development community on a regular (at least annual) basis (see Housing Program 10). The City continues to see applications for housing development and provides incentives for the production of affordable housing (see Programs 3, 12, and 14).

The City has reviewed its fees and considered the fees of neighboring jurisdictions and, in concert with ongoing development and input from development community, has determined that the City's fees do not constrain housing supply or affordability.
4B. Non -Governmental Constraints
Non -governmental constraints refer to market factors such as the demand for housing, the price of land, construction costs, availability of financing, and other factors that increase the cost of housing development.

DEVELOPMENT COSTS
Land Prices
The cost to develop housing is influenced by the cost of the raw land, the cost of holding the land during the development process, and the cost of providing services to meet aty standards for development. The cost of raw land is influenced by variables such as scarcity, location, availability of public utilities, zoning, and unique features like trees and adjoining uses. In Riverside County, land prices have generally increased to reflect the demand of a rapidly growing population. A review of lots for sale and recently sold (within the last 36 months), using Zillow and LoopNet listings, found 60 vacant lots zoned for residential use in Indian Wells ranging from $230,000 to $2,200,00 or approximately $21 to $95 per square foot.

A small number of underdeveloped parcels with a single-family unit that could be redeveloped with larger, single-family homes (with ADUs) have been sold for $250,000 to $575,000 or approximately $34 to $72 per square foot, largely depending on the location within the community.

It is difficult to ascertain the cost of raw land for multifamily development since a review of multifamily developments for sale and recently sold using Zillow and LoopNet listings found no properties.

Cost of Construction
Construction cost is determined primarily by the cost of labor and materials. The relative importance of each is a function of the complexity of the construction job and the desired quality of the finished product. As a result, builders are under constant pressure to complete a project for as low a price as possible while still providing a quality product. This pressure has led (and is still leading) to an emphasis on labor-saving materials and construction techniques.

The International Code Council (I CC) provides estimates for the average cost of labor and materials for typical Type VA protected, wood -frame housing. Estimates are based on "good -quality" construction, providing for materials and fixtures well above the minimum required by state and local building codes. In the 2018 edition of the Building Safety Journal, the ICC estimated that the average per square foot cost for good -quality housing in the Indian Wells area was approximately $113 for multifamily housing and $139 — $206 per square foot for single-family homes. Although construction costs are a substantial portion of the overall development cost, they are consistent throughout the region and therefore are not considered a major constraint to housing production. The 2020 COVI D-19 pandemic social distancing guidelines may increase constructions costs for an unknown period.

Construction cost increases, like land cost increases, affect the ability of consumers to pay for housing.

Construction cost increases occur due to the cost of materials, labor, and higher government -imposed standards (e.g., energy conservation requirements). The development community is currently producing market rate for -sale housing that is affordable to moderate and above moderate -income households.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Cost and Availability of Financing
Financing is critical to the housing market. Developers require construction financing and buyers require permanent financing. The two principal ways in which financing can serve as a constraint to new residential development are the availability and cost of construction financing and the availability and cost of permanent financing.
• If financing is not easily available, then more equity may be required for developing new projects and fewer homebuyers can purchase homes, since higher down payments are required. • Higher construction period interest rates for developers result in higher development costs. For homebuyers, higher interest rates translate into higher mortgage payments (for the same loan amount), which therefore reduces the purchasing power of homebuyers.

On May 6, 2021, the reported average rate for a 30 -year mortgage was 2.96% with 0.6 fees/points (Freddie Mac, 2021). From 2005 through 2021, average monthly mortgage rates have ranged from a high of 6.76% in July 2006 to today's record lows. For homebuyers, it is necessary to pay a higher down payment than in the recent past, and demonstrate credit worthiness and adequate incomes, so that loan applications meet standard underwriting criteria. While adherence to strict underwriting criteria was not required during the early and mid -2000s, the return to stricter standards is consistent with loan standards prior to 2001.

Approved and Built Densities
While the Qty's zoning regulations identify minimum and maximum densities that can be developed in Indian Wells, individual developers may opt to build at the lower, mid -range, or higher end of allowed densities.

Recent projects in Indian Wells that are built or are under construction are consistent with the densities anticipated by the City's General Ran and Zoning Code and typically built within 10% of the maximum allowable density. The City has received feedback from the development community that the maximum density levels are realistic and achievable, and the Qty expects to continue to see projects built at or around the maximum allowable density.

AFFORDABLE HOUSING DEVELOPMENT CONSTRAINTS
In addition to the constraints to market rate housing development discussed above, affordable housing projects face other constraints. While there is a range of sites available for potential affordable housing projects, as well as projects that focus on special needs populations, financial assistance for the development of affordable housing is limited and highly competitive.

Multiple funding sources are typically needed to construct an affordable housing project since substantial subsidies are required to make the units affordable to extremely low, very low, and low-income households.

It is not unusual to see five or more funding sources assembled to make a project financially feasible. Each of these sources may have different requirements and application deadlines, and some sources may require that the project has already successfully secured financing commitments. Since financing is so critical and is also generally competitive, organizations and agencies that provide funding can often effectively dictate the type and size of projects. Thus, in some years senior housing may be favored by financing programs, while in other years family housing may be preferred. Target income levels can also vary from year to year.

This situation has worsened in recent years. Federal and state funding has decreased and limited amounts of housing funds are available. Tax credits, often a fundamental source of financing for affordable housing, are no longer selling on a one for one basis. In other words, once a project has received authorization to sell a specified amount of tax credits to equity investors, the investors are no longer purchasing the credits at face value but are purchasing them at a discount.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Nonetheless, the Qty has had success in collaborating with other stakeholders for the development of affordable housing in Indian Wells. The Qty has entered into an Exclusive Negotiating Agreement (ENA) with Abode Communities to develop 99 deed restricted affordable housing units plus 1 manager unit (all multifamily units), on approx. 6 -acres of Housing Authority property along HWY 111, immediately west of Mountain View Villas. The Housing Authority would lease the property with affordable covenants for a 55 - year term. The Housing Authority owns one additional parcel west of the I ndian Wells Tennis Garden; this approximately 12.64 -acre sites is an a long-term opportunity for the Qty to continue working with developers of affordable housing to expand the housing choices in Indian Wells. 4C. Environmental Constraints
According to the Qty's 2019 Local Hazard Mitigation Ran, environmental hazards affecting residential development in the Qty include flood hazards and geologic and seismic conditions, which provide the greatest threat to the built environment. These natural hazards may constrain residential development by threatening public safety and infrastructure. To protect the health, safety, and welfare of residents in Indian Wells, the Qty has adopted regulations that limit development within areas of high risk and/or require design standards that can withstand natural hazards. In preparing the City's inventory of sites designated for residential development (Appendix A), the aty considered the extent to which sites were constrained by hazards, and potential hazards are accounted for as part of the capacity study. There are no known environmental constraints or other constraints that would preclude housing development on identified sites in the planning period or reduce the potential capacity of a site to a level lower than what has been assumed in Appendix A. The following hazards may impact development of residential units in Indian Wells.

Geologic and Seismic Hazards
Similar to other southern California cities, the City of Indian Wells is located in an area of high seismic activity.

Although no active or potentially active faults traverse the aty, Indian Wells is located within twenty miles of two faults: the San Andreas Fault to the north and the Indian Wells to the south. Surface rupture in Indian Wells is unlikely since no faults have been identified within the city boundaries. However, the City is likely to experience ground shaking, the degree to which would be based on the fault from which the earthquake occurs, distance from the City, and the magnitude. Impacts of an earthquake include potential liquefaction, which occurs when the strength and stiffness of a soil is reduced by intense ground shaking. Structures particularly susceptible to earthquake damage include tilt -up structures, unreinforced masonry buildings, older buildings, and mobile homes. After the 1971 San Fernando earthquake, building codes and design criteria were updated to address seismic occurrences.

Flood Hazards
Indian Wells and the surrounding desert area are subject to intense storms which result in substantial runoff and flash flooding. Two major flood control channels exist in Indian Wells: the Whitewater River flood control channel, running in an easterly direction just north of Highway 111; and the Deep Canyon flood control channel, running in an easterly direction just south of Fairway Drive and Iroquois Drive. Parts of Indian Wells lie within 100 -year and 500 -year flood zones published by the Federal Emergency Management Agency (FEMA). Within the 100 -year and 500 -year flood zones, there is a 1.0 -percent and 0.2 -percent or greater chance of flooding in any given year, respectively. The 100 -year flood zone is generally restricted to the Whitewater flood control channel and Deep Canyon flood control channel, whereas the 500 -year flood zone exists generally within the central and western parts of the City. Residential development within these areas is subject to specific standards outlined in the aty's Floodplain Management Ordinance to minimize flood hazard damage and risk. These standards do not pose a significant constraint to housing.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Extreme Weather
Indian Wells and the surrounding desert area are subject to periods of extreme heat and cold, as well as high winds and dust storms. The Oty utilizes a community -wide email blast and Nixle emergency notification system (ENS) to notify residents in advance of any impending severe weather event. Extreme heat significantly increases the potential for heat -related illnesses, particularly for those working or participating in outdoor activities. Although there are no cooling stations located within the Qty, cooling stations exist throughout the Coachella Valley, with the closest located at the La Quinta Wellness Center. The cost of installation of heating and cooling systems (HVAC) in residential developments does not pose a significant constraint to housing.

Archaeological, Historic, and Native American Cultural Resources Indian Wells has a rich history with many archaeological, historic, and Native American cultural resources identified within and surrounding its boundaries. While many of these historic and pre -historic and resources have been formally recorded, there may still be properties that contain buried cultural and archaeological resources and unrecorded structures. Because of the confidentiality of these resources, especially archaeological and Native American sites, the City will follow State law requirements with regards to analysis of these resources and consultation with local tribes.
4D. Infrastructure Constraints
Another factor adding to the cost of new construction is the provision of adequate infrastructure: major and local streets; curbs, gutters, and sidewalks; water and sewer lines; storm drains; and street lighting. All these improvements are required to be built or installed in conjunction with new development. In most cases, these improvements are dedicated to the Qty, which is then responsible for their maintenance. The cost of these facilities is borne by developers, added to the cost of new housing units, and eventually passed on to the homebuyer or property owner. As noted in the Resources chapter of this Housing Element, public infrastructure and services are available, or are programmed to be made available, for all the sites included in the sites inventory, including the capacity to accommodate Indian Wells's total share of the regional housing need (RHNA).

Senate Bill 1087 (enacted 2006) requires that water providers develop written policies that grant priority to proposed development that includes housing affordable to lower income households. The legislation also prohibits water providers from denying or conditioning the approval of development that includes housing affordable to lower income households, unless specific written findings are made. Senate Bill 1087 also mandates priority sewage collection and treatment service to housing developments providing units affordable to lower income households. The Qty will provide a copy of the Housing Element to its water and sewer providers in compliance with Government Code Section 65589.7 and SB 1087. As well, the Planning Department will continue to coordinate with the water and sewer providers to ensure priority service provision to affordable housing developments.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Water Capacity
Water supply and distribution in Indian Wells is provided by Coachella Valley Water District (CVWD) in the West Valley division of the Indio Subbasin. Water delivered to customers in the Qty is a combination of groundwater from the Coachella Valley Groundwater Basin (DWR Basin No. 7-21), recycled water, and imported water from the Colorado River through the Coachella Channel and through an exchange agreement with the Metropolitan Water District of Southern California (MWD).

The 2020 Coachella Valley Regional Urban Water Management Plan (RUWMP) states that it will be able to serve 100 percent of projected demands for the City of Indian Wells in normal, single -dry and multiple -dry years. Collectively, water supplies are projected to be sufficient to meet demands in all year types through the planning horizon (20 years).2
Sewer Capacity
Wastewater services within Indian Wells are provided by CVWD. CVWD operates and maintains five water reclamation plants (WRPs), three of which are equipped to treat wastewater to meet state standards for non -potable water for irrigation. Wastewater in the Qty collect in the citywide network of gravity sewers and lift stations and are conveyed to the WRPs. Wastewater conveyed to the WRPs receives secondary treatment before it is either disposed of by evaporation -infiltration basins, released to the Coachella Valley Stormwater Channel, or receives tertiary treatment at one of two of the WRPs. The WRPs have a combined design capacity of approximately 30 million gallons per day (mgd) and currently process an average daily flow (DWF) of 17 mgd. The WRPs have a remaining capacity of about 13 mgd.' The local system of collector and lateral sewer lines is operated and maintained by CVWD, while overall wastewater collection system is regulated under the jurisdiction of the Regional Water Quality Control Board, the State Water Resources Control Board, and the U.S. Environmental Protection Agency. CVWD's wastewater collection system consists of approximately 1,160 miles of 6 -inch through 36 -inch diameter sewers, and includes 28 sewage lift stations and associated force mains. No deficiencies have been identified in the District's regional facilities that serve Indian Wells.

Electric, Gas, and Telecommunications
Southern California Edison (SCE) provides electrical service and Southern California Gas Company (SoCalGas) provides natural gas services to residences and businesses throughout the Qty of Indian Wells. SCE provides electricity service to 15 million people over an approximately 50,000 square mile area throughout southern California.3 SoCalGas provides natural gas service to approximately 21.6 million customers, spanning roughly 20,000 miles.4 Infrastructure to deliver electricity and natural gas throughout Indian Wells is currently in place. SCE and SoCalGas can generally can provide these services to newer development on request.

Telecommunications services in Indian Wells are provided by a variety of service providers including AT&T and Spectrum. Infrastructure to deliver telecommunications throughout Indian Wells is currently in place and can generally be provided to newer development upon request. 2 "2020 Coachella Valley Regional Urban Water Management Ran," Coachella Valley Water District et. a/ (June 2021). 3 "About Us," Southern California Edison, https://www.sce.com/about-us (November 2021). 4 "Company Profile," Southern California Gas Company, https://www.socalgas.com/about-us/company-profile (November 2021).

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

5. Housing Resources
This section of the Housing Element describes resources available for housing development. Resources include land designated for housing development and financial resources to assist with the development of housing.
5A. Regional Housing Needs Allocation (RHNA)
The Qty of Indian Wells falls under the jurisdiction of the Southern California Association of Governments (SCAG). SCAG is responsible for developing a Regional Housing Needs Flan (RHNP) allocating the region's share of the statewide housing needs to lower -level councils of governments, which then allocate the needs to cities and counties in the region. The Regional Housing Need Assessment (RHNA) is a minimum projection of additional housing units needed to accommodate projected household growth of all income levels by the end of the Housing Element's statutory planning period.

This RHNA covers an 8 -year planning period (2021 through 2029) and is divided into four income categories:
very low, low, moderate, and above moderate. The Qty's 2021-2029 RHNA is 382 units, as shown in Table 5-1. Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low- income households (0-30% Area Median Income (AMI)). In estimating the number of extremely low-income households, a jurisdiction can use 50% of the very low-income allocation; therefore, the Qty's very low income RHNA of 117 units can be split into 59 extremely low income and 58 very low-income units.

TABLE 5-1: RHNA 2021-2029
Income Group
Total Housing Units
Al l ocated
Percentage of Units
Extremely/Very Low
117
31%
Low
81 21%
Moderate
91 24%
Above Moderate
83 24%
Total
382
100%
Source: Southern California Association of Governments, 2021 Housing Element law does not require the aty to ensure that the numbers of dwelling units identified in the RHNA are built within the planning period. The law does, however, require that the City provide an inventory of land suitably zoned and with available infrastructure and utilities to meet that need. 5B. Progress Towards the RHNA
Since the RHNA uses June 30, 2021 as the baseline for growth projections for the 2021-2029 planning period, jurisdictions may count housing units that have been developed, are under construction, and/or have received their building permits after June 30, 2021 and units that have been approved/entitled but are not yet built toward their RHNA obligation. These credits are described below.

UNITS UNDER CONSTRUCTION/BUILT SINCE JULY 1, 2021
Since this date, 17 housing units have been developed, are under construction, or have received building permits in Indian Wells (Table 5-2Table ). These units include 12 single-family residences projected to be affordable to above -moderate income households and 5 accessory dwelling units (ADUs). Consistent with SCAG's affordability assumptions for ADUs in the Riverside/San Bernardino County Region, the Qty has assumed that 2 of the ADUs are affordable to very low income households, 1 affordable to low income households, 1 affordable to moderate income households, and 1 affordable to above -moderate income Housing Element Background Report 1 Page BR -67
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INDIAN ',NFLLS City of Indian Wells 2021-2029 Draft Housing Element households. Moving forward, the City has included Program 8 in the Housing Plan to monitor the affordability of ADUs developed in Indian Wells to more accurately account for their role in helping achieve the City's housing goals by income level.

UNITS APPROVED/ENTITLED TO BE DEVELOPED DURING THE PLANNING PERIOD Jurisdictions may also count projects that are approved/entitled but not yet built or under construction; 233 units serving moderate- and above -moderate income households are expected to be developed during the planning period. Three separate projects comprise these units: Province, Toscana, and Indian Wells Crossing Specific Plan. These projects are described below:

Province: The Province project has been entitled for a total of 133 single-family units. Based on market sales prices for similar new single-family units, the City assumes that all of these units will serve the City's above -moderate income needs. Prior to the planning period, 12 units were developed, and project went dormant for several years. However, Lennar Development is now currently working on revising architecture for remaining 119 units and plans to develop them in near future. The City has credited 119 units from the Province project towards helping meet its above -moderate income RHNA.

Toscana: The Toscana project is in its final phase of development and has 60 single-family homes remaining to be built (53 traditional single-family homes and 7 custom homes). Based on market sales prices for similar new single-family units, the City assumes that all of these units will serve the City's above -moderate income needs. all of these homes should be considered Above Mod 120+% and are expected to have building permits pulled after July 1, 2021, and complete construction within 4-5 years. The City has credited 60 units from the Toscana project towards helping meet its above -moderate income RHNA.

I ndian Wells Crossing: Specific Plan Project - Planning Area No. 2 (i.e. Indian Wells Crossing) has been entitled and has a current Development Agreement to build a hotel with hotel villas and 54 residential condominiums with individual ownership. Vvhiie the exact sales price for the condominium units has not yet been established, based on project -specific information and market trends, the aty has projected that the units will be affordable to moderate -income households. Moderate income households can afford to purchase homes up to approximately $417,000. There are no comparable projects in Indian Wells that reflect the development pattern, unit size, or style of the 54 condominium units planned at Indian Wells Crossing. However, the City has inventoried condominiums for sale in nearby communities and finds that condominium units similar to those approved at Indian Wells Crossing sell for prices affordable to moderate -income households. This includes studio to 3 -bedroom condominiums for sale in Cathedral City, Rancho Mirage, Palm Desert, Bermuda Dunes, and La Quinta. Based on discussions with the project developer, buildout of residential condos are expected prior to end of 6th Housing Cycle. The City has credited 54 units from the I ndian Wells Crossing project towards helping meet its moderate income RHNA. As part of Programs 3 and 4, the City is committed to maintaining an adequate inventory of sites available to accommodate its RHNA at all income levels for the entire planning period. As part of the City's annual reporting process, the City will record the actual sales price of the condominium units at Indian Wells Crossing, and if the units, based on market rents, are not affordable to moderate -income households the City is obligated, through Program 4, to identify alternatives sites to accommodate its remaining unmet RHNA.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element SUMMARY OF PROGRESS TOWARDS MEETING 6TH CYCLE RHNA
These credits towards meeting the City's RHNA obligation are specified in Table 5-2. Units at Indian Wells Crossing identified as being affordable to moderate -income households arc is based on market evidence as described above; all other units are identified as being affordable to above -moderate income households.

TABLE 5-2: CREDITS TOWARDS THE RHNA
Project 2 ' r +
c v o
t- L
g 'a' 0 a — c 8 a > 0¢
W 0 a .0
Units Constructed/Under Construction/Building Permits Issued since June 30, 2021 Various Single -Family Lots
0 0
0 12
12 Accessory Duelling Units
2 1
1 1
5 Subtotal
2 1
1 13
17 Approved/Entitled Units Not Yet Under Construction
Province
0 0
0 119
119
Toscana
0 0
0 60
60 Indian Wells Crossing
0 0
54 0
54 Subtotal
0 0
54 179
233
Total
2 1
55 192
250
Source: Qty of Indian Wells, 2021
As of November 2021, the Qty has achieved approximately 66% of its overall RHNA obligation with housing units constructed, under construction, or approved/entitled (250 units). However, the majority of these units are affordable to above -moderate income households (a category for which the Qty has already exceeded its RHNA by 99 units). When considering the remaining RHNA by income category, the City has a remaining RHNA of 231 units as shown in Table 5-3 (115 extremely low/very low-income units, 80 low-income units, and 36 moderate -income units).

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 5-3: REMAINING RHNA
Project
TD tb-,,o2
c Q
2 -o
X�C
oQ
c o
`6,
a) N-
N U Q
-8 o o
U
a�Q
oo N 0+
o a o 8
g
2021-2029 RHNA
117
81 91
93 382
Completed/Under
Construction/Permits Issued
2 1
1 13
17 Units Approved/ Entitled
0 0
54 179
233
Subtotal
2 1
55 192
250
Remaining Allocation
115
80 36
0 (surplus of
99 units)
231
Source: Qty of Indian Wells, 2021, SC4G, 2021
5C. Strategy to Accommodate Remaining RHNA
Housing element law requires an inventory of land suitable for residential development (Government Code Section 65583(a)(3)). An important purpose of this inventory is to determine whether a jurisdiction has sufficient land allocated for the development of housing to meet the jurisdiction's share of the regional housing need, including housing to accommodate households of all income levels.

This section provides an analysis of the land available within the Qty for residential development. In addition to assessing the quantity of land available to accommodate the Qty's total housing needs, this section also considers the availability of sites to accommodate a variety of housing types suitable for households with a range of income levels and housing needs.

The Qty of Indian Wells' 6th Cycle residential capacity falls into few -three categories:
1) Proposed project: Abode Communities Affordable Housing; 2) Accessory dwelling units;
3} —Rezone Prcscrvation of cxisting affordablc units at risk of convcrsion; 4}3) eopportunity site for rczonitig.

As described throughout this section, the Qty has identified a strategy to accommodate its RHNA allocation at all income categories for the 2021-2029 planning period. Moreover, Indian Wells has a recent track record of supporting development of affordable housing, working with affordable housing developers, and addressing needs of the community's vulnerable populations, including seniors.

1. PROPOSED PROJECT: ABODE COMMUNITIES AFFORDABLE HOUSING The Qty of Indian Wells has entered into an Exclusive Negotiating Agreement (ENA) with Abode Communities to develop 99 deed -restricted affordable housing units plus 1 manager unit (for a total of 100 multifamily units) on approximately 6 -acres of Housing Authority property along HWY 111, immediately west of Mountain View Villas. The Housing Authority would lease the property with affordable covenants for a 55 -year term.

The project is expected to be approved and built during the planning period. The Qty has identified the proposed Abode Communities Affordable Housing project as meeting a portion of the aty's lower-, moderate- , and above -moderate income RHNA. Consistent with the ENA, 50 of the proposed units will be deed - restricted to very low-income households, 36 will be deed -restricted to low-income households, 13 will be deed -restricted to moderate -income households, and the manager's unit is expected to be affordable to above -moderate income households.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

2. ACCESSORY DWELLING UNITS
As of January 2020, newly adopted State of California legislation pertaining to Accessory Dwelling Units (ADUs) went into effect. The legislation changes specifically amended Government Code Sections 65852.2 and 65852.22. I n response to these legislative changes, the Qty of Indian Wells updated its zoning ordinance to be consistent with State law. The details of the Qty's Zoning Ordinance relevant to ADUs are included in the Constraints section of this Background Report.

The Qty of Indian Wells did not approve any ADUs in 2018 or 2019. However, once the Qty updated and began implementing its ADU Ordinance, at least 4 ADU applications were submitted in 2020 and one ADU was approved, constructed and occupied (this unit is recorded in the City's 2020 Housing Element Annual Progress Report)s-9vere-approved. In 2021, the aty has permitted at least 5 ADUs (which will be recorded in the Oty's 2021 Housing Element Annual Progress Report) and this trend is expected to continue. The Qty recognizes that ADUs are an excellent opportunity to supplement the Qty's existing housing stock and provide more affordable housing choices in existing neighborhoods, especially high -resource neighborhoods with limited or no vacant land remaining.

Given that ADU production in Indian Wells has only been reasonably possible since 2020 upon the Qty's update to its ADU Ordinance, the aty has used an average of the production of ADUs over the past two years (2020 and 2021) to project future production during the planning period. Having produced 4-1 ADUs in 2020 and 5 ADUs in 2021, the Qty has identified an annual production of 4-53 units, for a total projection of 36 24 ADUs during the 8 -year planning period. Additionally, the income level of these ADUs has been assumed to be consistent with the findings of SCAG's ADU affordability study, and the income of these units are allocated consistent with SCAG's findings for Riverside/San Bernardino Counties.

3. PRESERVATION OF EXISTING AFFORDABLE UNITS AT RISK OF CONVERSION Cycle RHNA existing affordable units at risk of conversion to market rate units during the to 25 perccnt of thc City's RHNA by incomc category. Based on this methodology and thc Oty's RHNA as inel-aeleel-i-a-Tael-e-5-4-Tthe-Gity-199-ay-ee-n-sieler-u-p-te-2-9-pfeser-veel-H-Rit-s-as-Fneeting its very low incomc RHNA, 20 preserved units as meeting its low income RHNA, and 22 preserved units as meeting its moderate income unit preserved at affordable housing costs to persons or families of low or very low incomes with committed thc unit shall not be deemed preserved unless thc following occur:

Thc unit has long term affordability covenants and restrictions that require thc unit to be affordable illas to ensure that thc
income group as thc current occupants for a period of at least 55 y ars. tt� Thc unit is within an "assisted housing development," as defined in paragraph (3) of subdivision (a) 65863.10(a)(3)(M)(iii) as it is a multifamily rental housing dcvclopmcnt that has received assistance y
rental housing dcvclopmcnt that receives thc following assistance provided by countics or cities in Housing Element Background Report 1 Page BR 71
371

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element income as a condition of eligibility for occupancy of thc unit, as reflected by a rccordcd agreement with thc county or city.
to change from housing affordable to low and very low income households to any othcr use during the next tight y ars due to termination of subsidy contracts, mortgage prepayment, or expiration of of thc Housing Authority that the available funds in thc LMIHAF arc not sufficient to finance the I lousing Authority's partnership with Abodc Communities to develop 100 affordable units and fund mcnts nccdcd to maintain Indian Wells Villas in a safe and sanitary condition over thc ncxt 8 years. It is highly likely that thc Housing Authority will nccd to convey thc property to a private cntity who will convert to market rate housing in 2031, or look at partnering with a non profit cntity in thc 6th housing cycle who can cxtcnd thc affordable covenants for 55 years and commit to rehabbing thc property to maintain safe and sanitary conditions. The Oty will conducted a public expected to change from housing affordable to low and very low incomc households during thc ncxt cight y ars.
+v
v
in the Indian Wells Villas available to persons or households in those incomc brackets. Of these units, thc Qty will receive credit for preserving 29 very low, 20 low, and 13 moderate incomc units.

Program 2 ensures that thc City of Indian Wells will commit assistance for thc preservation of 29 very low, 20 low, and-1-3-199efieFate-rneerffie-tintts-ffi€1--en-sufes-thet-t-h-e-Feettffeffleat-s-Itsteel-at-Gever-FH99ei94-Ged-e-Seet. 65583.1(c)(2)(C) arc mct.

43. OPPORTUNITY SITE FOR REZONING
After accounting for the units at the proposed Abode Communities project and the future development of ADUs and JADUs, the City has identified a shortfall of sites with zoning in place to address the City's very low, low, and moderate income regional housing needs (RHNA). As presented Table 5-4, the City has a current shortfall of zoning for 110 units, requiring an additional 8 acres of land zoned for 20 units/acre (lower income). The Oty conducted a thorough analysis of all remaining vacant, undeveloped, and unentitled land in the Oty to evaluate the feasibility of rezoning at least eight acres to allow for higher -density residential development to accommodate the City's remaining RHNA. Through this process, the Oty identified two potential sites (Sites A and B) based on the following required criteria:
• Vacant
• Undeveloped/unimproved
• Outside of an approved Specific Plan
• No long-term lease or other encumbrance that would preclude development during the planning period
Site A, located at the northeast corner of Miles Avenue and Warner Trail, is 8 to 10 acres located on a 34 - acre parcel currently designated as Medium Density Residential (with a maximum density of 7 du/ac). Site B, located on the south side of Miles Avenue across from the Indian Wells Tennis Garden, is comprised of two separate parcels totaling 27 acres, and is currently designated for Resort Commercial. Site A is vacant and Site B is mostly vacant, with a small improved parking lot on one parcel. The Oty hosted a community Housing Element Background Report 1 Page BR -72
372

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element workshop on the Housing Element to discuss the opportunities and challenges associated with rezoning a site of at least 8 acres at either Area A or Area B to accommodate the Oty's remaining RHNA. At this meeting, hosted in April 2022, the public provided feedback that while both sites were generally acceptable locations, given that Area A is already designated for residential development and Area B is not, AreaA would be the more preferable location to accommodate the required rezoning of 8 acres to accommodate the City's remaining RHNA. Through this process, the Oty has identified Area A (APN 633360002) as the most appropriate location in the City to accommodate the rezoning of 8 acres, through the application of a new Housing Opportunity Site Overlay, in order to accommodate the Oty's remaining RHNA of 110 units.

As previously described, this site is undeveloped and vacant. The property owner has expressed interest in developing the site, including developing a portion of the site specifically for affordable housing, and has met with the City to evaluate preliminary ideas. Through the application of the City's new Housing Opportunity Site Overlay to 8 -acres of the site, the Oty has identified a potential capacity of 128 units based on a realistic capacity of 16 du/acre (as proposed by Abode Communities, a project which has been determined to be financially feasible and developable in Indian Wells). The City has assumed a distribution of units by affordability level consistent with the proposed affordable Abode Communities project. This results in the distribution of the total capacity of 128 units as follows: 64 very low income units, 46 low income units, 17 moderate income units, and 1 above -moderate income unit.

The City has included Program 3 which commits the City to prepare and adopt a new Housing Opportunity Site Overlay to provide the opportunity for 100% affordable projects to achieve a density of up to 24 du/ac and to apply this Overlay to at least 8 acres to the 34 -acre vacant and undeveloped property located at the northeast corner of Miles Avenue and Warner Trail (APN 633360002). Further, as part of Program 4, the City is committed to completely a comprehensive update to its General Plan, which will include amendments to allow for the application of the Housing Opportunity Site Overlay to parcels designated as Medium Density Residential in the General Plan.
35 ADEQUACY OF SITES TOWARD THE RHNA
Including the proposed Abode Communities project (100 units), ADU projections (36 24 units), preserved at risk afferdablc units (62 units), and opportunity site for rezoning (1-9§-128 units), the sites inventory identifies capacity for at least 304 504 units, 242-212 of which have been identified as being able to meet the City's remaining lower -income RHNA of 195 units.
approvcd/cntiticd but not yct built, tThe City has demonstrated the ability to exceed its RHNA by X122 units, a 4931% overall surplus. Overall, the City has the ability to adequately accommodate the remaining RHNA at all income levels through implementation of its Housing Plan (Table 5-4).

TABLE 5-4: RHNA SITE INVENTORY
Extremely Very
Low/Very Low
Income (0-50%
AM)
Low I ncorre
(51-80%
AMI)
Moderate
Income (81-
120% AMI)
Above Moderate
income (121%+
AMI)
Total
2021-2029 RHNA Targets
117
81 91
93 382
Credits (Entitled/Under
2 1
55 194
252
Construction Projects with
occupancy post 6/30/21)
Strategy 1: Proposed Project
(Abode Communities)
50 36
13 1
100
Strategy 2: ADUs
86 128
428
42 3624
Existing Site Capacity
58 45
76 197
376
Housing Element Background Report 1 Page BR -73
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,,
INDIAN r' WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element RHNA Shortfall
(59)
(36)
(15)
0 (surplus of
104)
110
Strategy 3: Rezone
Opportunity Site
64 46
17 1
128
Total Capacity for the 6th Cycle
(Existing and Rezone Site)
04 Surplus
5 10
2 105
122
Percent Surplus
6%
112%
31%
Source: Qty of Indian Wells, 20212022
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GENERAL PLAN 2040
WELLS
INDIAN

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FIGURE 5-1: HOUSING ELEMENT SITES
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Housing Element Background Report I Page BR -76
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element 5D. Financial Resources
The Qty's primary financial resource for affordable housing development was previously the redevelopment housing set -aside fund. With the dissolution of the Indian Wells Redevelopment Agency, those funds are no longer available. The Qty is not an entitlement jurisdiction for Federal CDBG and HOME funds. The Qty receives a suballocation of CDBG funds through the County of Riverside Economic Development Agency.

Indian Wells receives approximately $30,000 annually and uses the funds for maintenance and modifications to existing affordable senior housing projects within the Qty.

City and Regional Resources
Coachella Valley Housing Coalition (CVHC) Program: The Self Help Homeownership Rrogram consists of families helping other families achieve home ownership. Families form an informal association and agree to help each other build their homes with technical assistance provided by a competent construction supervisor.

CVHC was recently awarded a $6 million federal grant from the U.S. Department of Agriculture (USDA) in April 2021.

Finance Agency Lease -Purchase Program: Riverside/San Bernardino County Housing Finance Agency Lease Purchase Program provides down payment assistance and closing costs for eligible households up to 140 percent of the area median income.

Mortgage Credit Certificate: The Riverside County Mortgage Credit Certificate Program is designed to assist low and moderate income first time homebuyers. Under the Mortgage Credit Certificate Program, first-time homebuyers receive a tax credit based on a percentage of the interest paid on their mortgage. This tax credit allows the buyer to qualify more easily for home loans, as it increases the effective income of the buyer.

Under federal legislation, 20 percent of the funds must be set aside for buyers with incomes between 75 and 80 percent of the county median income.

Riverside County First -Time Homebuyers Program: The Qty participates in the Riverside County First -Time Homebuyers (FTHB) Program for low- and moderate -income households. The FTHB program provides down payment and homebuyer loan assistance of up to 20 percent of the purchase prices of the home with an assistance cap of $75,000. To qualify, homebuyers must not earn more than the specified income limit; the home must be located in Indian Wells, and the homebuyer must occupy the home as their primary residence.

The program is funded by a grant from the State's Permanent Local Housing Allocation (PLHA) Program.

State Resources
Affordable Housing and Sustainable Communities Program (AHSC): Administered by the Strategic Growth Council, this program provides grants and/or loans to fund land -use, housing, transportation, or land preservation projects that support infill and compact development that reduce greenhouse gas emissions California Emergency Solutions and Housing (CESH): This program provides funds for a variety of activities to assist persons experiencing or at risk of homelessness, such as housing relocation and stabilization services (including rental assistance), operating subsidies for permanent housing, flexible housing subsidies, emergency housing operating support, and homeless delivery systems California Housing Finance Agency Program: The California Housing Finance Agency (CHFA) has three single- family programs for primarily moderate and middle income homebuyers: the Home Ownership Assistance Program and the Affordable Housing Partnership Program. Each provides permanent mortgage financing for first-time homebuyers at below -market interest rates.

CaIHFA First Mortgage Loan Programs: The California Housing Finance Agency (CaIHFA) offers a variety of loan programs for low and moderate income first-time homebuyers who secure a CaIHFA 30 -year fixed mortgage.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element CaIFHA Downpayment Assistance Program: Moderate income households may receive a deferred loan of up to the lesser of 3.5% of the purchase price or appraised value of a home, to be applied to the down payment and/or the closing costs for the residence, with a cap of $10,000.

Golden State Acquisition Fund (GSAF): A financing program aimed at supporting the creation and preservation of affordable housing throughout the State of California. Financing is available for rental housing and homeownership opportunities in urban and rural communities.

HomeChoice Program: This State program provides disabled low and moderate income households with a low -interest 30 -year mortgage for a first-time homebuyer.

Housing Choice Voucher (formerly Section 8): The Riverside County Housing Authority administers the Housing Choice Voucher rental assistance program to lower income renters within the County. Housing Choice Vouchers allow lower income households to use rental subsidies anywhere in the County, including Indian Wells.

Housing for a Healthy California (HHC) Program: This program creates supportive housing for recipients of or those eligible for health care provided through the California Department of Health Care Services' Medi- Cal program.

Federal Resources
Choice Neighborhoods Grants: Funds to address distressed neighborhoods and public and assisted projects to transform them into viable and sustainable mixed -income neighborhoods by linking housing improvements with appropriate services, schools, public assets, transportation, and access to jobs. Planning grants and implementation grants are available.

Community Reinvestment Act: The Community Reinvestment Act provides favorable financing to affordable housing developers. The Redevelopment Agency, development community, and local, regional, and national banks are encouraged to work together to meet their obligations pursuant to the Community Reinvestment Act.

Low Income Tax Credits: Low Income Housing Tax 0 -edit (LI HTC) provides federal tax credits for private developers and investors that agree to set aside all or a portion of their units for low-income households. A minimum of 20 percent of the units must be affordable to low income households and 40 percent of the units must be affordable to moderate income households.

Neighborhood Stabilization Program: HUD's Neighborhood Stabilization Program makes emergency assistance grants available to local governments for the acquisition, redevelopment, and renting or resale of foreclosed properties at -risk of abandonment.

Section 202 Housing for Seniors: HUD provides capital advances to finance the construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low- income elderly persons, including the frail elderly, and provides rent subsidies for the projects to help make them affordable.

Section 811 Housing for Persons with Disabilities: Grants to non-profit developers of supportive housing for persons with disabilities, including group homes, independent living facilities and intermediate care facilities.

U.S. Department of Agriculture (USDA) Housing Programs: This program provides homeownership opportunities for individuals and below market -rate loans/grants to public and non-profit organizations for new construction, preservation, or rehabilitation of farmworker/rural multi -family rental housing.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element 5E. Administrative Resources
Coachella Valley Housing Coalition (CVHC): CVHC provides community programs, credit counseling, and homeowner education to assist renters and homeowners in the Coachella Valley.

Coachella Valley Association of Governments (CVAG): The Qty works with CVAG on a variety of issues to address homelessness. CVAG provides homelessness services such as rapid re -housing and crisis stabilization units.

Fair Housing Council of Riverside County: The Qty works with the Fair Housing Council of Riverside County (FHCRC) to provide anti -discrimination services, landlord -tenant mediation, fair housing training and technical assistance, enforcement of housing rights, administrative hearings, home buyer workshops, lead - based paint programs, and other housing related services for Qty residents.

Housing Authority of the County of Riverside (HACR) Family Self -Sufficiency (FSS) Program: This program assists families receiving rental assistance move to economic independence. This program includes workshops on financial assistance for higher education, credit repair/home ownership, self-esteem, resume writing, parenting, and stress management.

HACR Homeownership Program: This program assists with cleaning up credit problems for eligible residents and works closely with the FSS program to obtain the goal of homeownership while earning an escrow account.
5F. Energy Conservation Opportunities
In relation to new residential development, and especially affordable housing, construction of energy efficient buildings does add to the original production costs of ownership and rental housing. Over time, however, housing with energy conservation features should result in reduced occupancy costs as the consumption of fuel and electricity is decreased. This means the monthly housing costs may be equal to or less than what they otherwise would have been if no energy conservation devices were incorporated in the new residential buildings. Reduced energy consumption in new residential structures, then, is one way of achieving more affordable housing, as those costs are measured in monthly carrying costs as contrasted to original sales price or production costs. Generally speaking, utility costs are among the highest components of ongoing carrying costs. The Qty implements California Building Code Article 24 requirements as mandated by State law. Indian Wells is located in Zone 15, which is one of the strictest energy conservation zones in California.

In 2009, the Qty updated the Conservation and Open Space Element of the General Ran to include additional policies for energy conservation. Goal 11B7 and Objective A-5 requires that the Qty include energy conservation measures in the construction of housing.

Since 2009, the Qty of Indian Wells has partnered with the Coachella Valley Association of Governments (CVAG) as part of its Desert Cities Energy Partnership. In the fall of 2011, CVAG developed a "green government initiative" on behalf of member jurisdictions to promote energy efficiency, green building and sustainability, with funding received from Southern California Edison and the California Public Utilities Commission. As part of this initiative, the Green for Life Program, Qty staff has participated in ongoing coordination and review with CVAG and the Green for Life consultant team on various program elements.

The Green for Life Program, adopted on June 6, 2013 includes:
• Voluntary Green Building Program. The Green Building Program is a voluntary program to increase building efficiency 15 percent over current state requirements. It has been adopted by the cities of Desert Hot Springs, Cathedral City, Palm Springs, and Rancho Mirage and will be considered for adoption by Indian Wells.
• Climate Action Ran. A 2010 greenhouse gas (GHG) inventory has been completed and a aimate Housing Element Background Report 1 Page BR -79
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Action Ran, a greenhouse gas reduction plan, has been prepared. The Climate Action Ran is the strategic blueprint for the City to reach the GHG reduction targets identified through the GHG inventory.
5G. Consistency with the General Plan
Government Code Section 65300.5 states: "In construing the provisions of this article, the Legislature intends that the general plan and elements and parts thereof comprise an integrated, internally consistent and compatible statement of policies for the adopting agency." Additionally, Government Code Section 65583 (c)(7) requires the identification of "means by which consistency will be achieved with other general plan elements and community goals."
The Housing Element of a general plan sets out a city's overall long-range planning strate•y for providing housing for all segments of the community. The California Government Code requires general plans to contain an integrated, consistent set of goals and policies. The Housing Element is, therefore, affected by policies contained in other elements of a general plan. The Housing Element is most intricately related to the Land Use Element. The Land Use Element establishes the framework for development of housing by laying out the land use designations for residential development and indicating the type and density permitted by a city. As previously discussed, the City is undertaking a comprehensive update to its General Plan, including its Land Use Element.

Working within this framework, the City of Indian Wells' Housing Element identifies priority goals, objectives, and program actions for the 2021-2029 planning period that directly address the housing needs of Indian Wells' existing and future residents. The policies contained in other elements of the City's General Plan affect many aspects of life that residents enjoy such as the amount and variety of open space; the preservation of natural, historic and cultural resources; permitted noise levels in residential areas; and the safety of the residents in the event of a natural or man-made disaster. The Housing Element Update is being prepared concurrent with the City's comprehensive General Ran Update to ensure that all elements of the General Ran are internally consistent and that the policies and programs in this Element do not, and will not, conflict with the policy direction contained in other parts of the General Ran.

As the City moves forward with preparing and reviewing its General Ran Update, the Housing Element will be reviewed to ensure that internal consistency is maintained. The General Plan Update will address all requirements of State law related to the scope and content of a General Plan, including updated goals, policies, and programs to address complete streets, environmental justice, climate adaptation and resiliency, and air quality.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

6. Affirmatively Furthering Fair Housing (AFFH)
Analysis
Assembly Bill (AB) 686 requires that all housing elements due on or after January 1, 2021, must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015. Under state law, AFFH means "taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics." In order to comply with AB 686, the Qty has completed the following outreach and analysis. 6A. Outreach
As discussed in the Public Engagement Summary (Appendix B), the Qty has worked diligently to engage the public as part of its comprehensive General Ran Update, a project which necessarily includes the Housing Bement. The community outreach and public input process are fundamental to the General Ran Update.

This process seeks meaningful and comprehensive feedback from the entire Indian Wells community, helping to ensure the General Ran Update represents a shared vision that the community will take pride in. The Qty provided ongoing notification to local housing service providers that represent lower income and special needs populations, such as the Fair Housing Council of Riverside County, and to affordable housing developers. Appendix B to the Housing Element provides a summary of the key comments received during the Housing Bement update process, and how they have been considered and addressed in the Bement.

The Qty implemented the following public outreach program.

PROJECT WEBSITE
The City's dedicated project website for the General Ran Update encapsulates the Housing Element Update as well( www.indianwells.generalplan.org) . The website serves as the main conduit of information for individuals who can access material online. The project website launched in July 2020 (associated with the City's General Ran Update) and is regularly updated to reflect ongoing community input opportunities, advertise draft work products, and answer commonly asked questions.

VIRTUAL COMMUNITY WORKSHOPS
The Qty hosted a series of virtual community workshops throughout the project to provide updates on the preparation of the Draft Housing Bement (and the General Plan). Two virtual community workshops were held between November 2020 and February 2021. Workshop 1 focused on Visioning and Workshop 2 on Community Health and Wellness.

The Visioning Workshop, held on November 18, 2020, focused on what residents want to see from their community and the input received at this meeting directly informed preparation of the Draft Housing Dement and this fair housing analysis. The workshop used the interactive online platform, Poll Everywhere, to ask questions about I ndian Wells. Questions were displayed onscreen and answers appeared onscreen as participants responded, allowing feedback from all attendees to be visible and encouraging community members to think about a range of issues. Key themes that emerged included:
• Residents appreciated the aesthetic beauty of the Qty • Residents wanted to keep the small-town feel of the community The Community Health and Wellness Workshop, held on February 22, 2021, addressed the topic of healthy communities, which encompasses a host of issues related to housing. The workshop used the interactive online platform, Poll Everywhere, to ask questions related to community health and wellness in I ndian Wells.

Questions were displayed onscreen and answers appeared onscreen as participants responded, allowing feedback from all attendees to be visible and encouraging community members to think about a range of Housing Bement Background Report 1 Page BR -81
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element issues. Key themes that emerged related to housing and land use included:
• Residents value community health and acknowledge a range of topics related to health in their community, including physical, social, and mental health, as well as environmental protection and reducing homelessness
• Residents feel a need for multi -generational recreational activities • Residents value a sense of community and see public spaces and events as a way of fostering this The Qty is scheduled to host a community open house on the Public Draft Housing Element in December 2021. At this open house, the Qty will present the Public Draft 2021-2029 Housing Bement and solicit feedback on the Element that will be considered and reflected in the final document. The Qty will specifically present information related to fair housing and describe the goals, policies, and programs that the Qty has added to the Housing Element to address this topic.

ADVERTISEMENTS
The Qty of Indian Wells maintains various social media accounts including Facebook, I nstagram, and Nextdoor. Starting in the latter half of 2020, and continuing throughout the project, the Qty posted updates to its social media platforms advertising opportunities to provide input and alerting the public to upcoming meetings and workshops related to the Housing Element Update.

EMAILS
The project team compiled a database of community members and stakeholders who registered to be notified via email of future public engagement opportunities and key deliverables. Direct emails were sent to these individuals to publicize the Virtual Community Workshops, the Housing Survey, and the Public Review Draft 2021-2029 Housing Element.
6B. Assessment of Fair Housing Issues
This section presents an overview of available federal, state, and local data to analyze fair housing issues in Indian Wells. This data is supplemented with local knowledge of existing conditions in the community to present a more accurate depiction of fair housing issues in Indian Wells, and a more informed perspective from which to base goals, policies, and programs to affirmatively further fair housing.

KEY DATA AND BACKGROUND INFORMATION
The County of Riverside Analysis of Impediments to Fair Housing Choice (A.I.) serves as the fair housing planning document for the County of Riverside Public Housing Authority (PHA) programs that address the entire County, and the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG) programs that address the unincorporated areas of the County, the aty of Lake Elsinore (Metro City), and the following Cooperating Cities: I ndian Wells, Banning, Beaumont, Blythe, Coachella, Canyon Lake, Desert Hot Springs, Eastvale, La Quinta, Murrieta, Norco, San Jacinto, and Wildomar. Prepared in 2019 to address the time period of 2019-2024, the A.I. is one source of information regarding fair housing issues in Indian Wells and the region.

As part of the development of the County Al, four community meetings were held in various locations throughout the County, and the feedback solicited from residents and stakeholders who attended the meetings were considered in the development of the Al. Additionally, in November 2018, the County released an "Analysis of Impediments to Fair Housing Choice Survey" to residents. The survey consisted of 34 questions related to fair housing issues, community planning needs (such as access to healthcare and transportation), questions regarding schools and questions about the job market. The survey was published in English and in Spanish. Links to the survey were publicized in public notices for community participation and through email distribution. 150 responses were received in the 75 days the survey was available. After preparing the draft Al document, the County published a notice of availability and request for written and Housing Element Background Report 1 Page BR -82
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element oral comments.

The Oty's demographic and income profile, household and housing characteristics, housing cost and availability, and special needs populations are discussed in previous sections of this Background Report. No barriers to fair housing choice specific to the Oty of Indian Wells were identified in the County Al.

Supplemental data analysis was conducted to further understand potential fair housing issues, within the context of AFH topics, at the city -level. Indian Wells is comprised of 7 census tracts, although several are only partially located in Indian Wells. Figure 6-1 shows the tract boundaries.

Demographic, Economic, and Real Estate Profile
The City produced a Demographic, Economic and Real Estate Profile (Profile) as part of the Oty of Indian Wells General Plan Update effort. The Profile summarizes and analyzes the economic, demographic, and real estate conditions and trends that will inform the land use policies and alternatives considered as part of the Oty of Indian Wells (City) General Plan Update. It has been prepared for the City by Economic 8, Panning Systems, Inc. (EPS) in September 2020.

Key findings in the Profile include that Indian Wells is a relatively small city that has established a strong brand as a luxury retirement community and visitor destination with a demographic profile that diverges sharply from regional and even national norms. Indian Well residents are significantly older, more affluent, and well-educated than the rest of Eastern Riverside County, or the nation as a whole. One of the more salient features of Indian Wells' demographic profile is the City's median age, which in 2018 was almost 68 years old, over 50 percent higher than the median age of Eastern Riverside County at 42. Meanwhile, the City's median household income of about $104,000 is more than double the average for the region. Finally, nearly a quarter of City residents hold graduate professional degrees, and almost 60 percent hold a bachelor's degree, compared to 21 percent in Eastern Riverside County and 33 percent nationally.

While Indian Wells has grown significantly over the last 20 years as a high value single-family market, population increases have slowed since 2008 and home values have not recovered to pre - "Great -Recession" levels. The housing stock is overwhelmingly made up by single-family, owner -occupied units, though a very high proportion are used as second homes and /or vacation rentals, contributing to large seasonal fluctuations in population and economic activity. Reflecting the affluence of its citizens, Indian Wells' home prices are consistently double that of Eastern Riverside County. The City has recently seen a surge in permits for single-family homes, with 30 approved in 2019, up from seven in 2018, mostly linked to several new subdivisions.

The housing units in Indian Wells are overwhelmingly single-family (88 percent) and owner -occupied (85 percent). This market composition significantly departs from the Trade Area and Eastern Riverside County where single-family units make up between 70 and 75 percent of the total and owner -occupancy rates hover around 65 percent. Another noteworthy feature of the City's housing stock is the extremely high vacancy rate (about 45 percent), which reflects a high proportion of second homes (homes used for 'seasonal, recreational or occasional use' are classified as vacant).

As is often the case for higher cost, tourist -oriented communities, the profile of Indian Wells residents does not match the local job market. This results in "crisscross" commute patterns with the small proportion of City residents who do have jobs leaving in the morning as workers arrive from elsewhere. The vast majority of those holding jobs in the City commute from elsewhere, mostly from relatively short distances such as the Southern Coachella Valley cities of Indio, Palm Desert, and La Quinta where home prices are lower.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

FAIR HOUSING ENFORCEMENT AND OUTREACH CAPACITY
The Oty enforces fair housing and complies with fair housing laws and regulation through a twofold process:
review of City policies and code for compliance with state law and referring fair housing complaints to appropriate agencies, specifically the Fair Housing Council of Riverside County (FHCRC). The FHCRC provides services to residents of Riverside County and its Cooperating Cities to promote fair housing and protect the housing rights of all individuals. In December 2020, FHCRC reported that they receive an average of 60 to 90 calls per day from residents throughout the county regarding discrimination complaints and housing disputes. Where possible, FHCRC provides mediation services before submitting complaints to HUD. The most common type of complaint throughout Riverside County comes from people with disabilities requesting reasonable accommodations; however, since the start of the COVI D-19 pandemic, FHCRC has seen an increase in complaints regarding discrimination and sexual harassment. The most common type of complaints received by FHCRC regarding the physical condition of homes are infestation of insects and cases of mold.

In their 2019 Annual Report, the California Department of Fair Employment and Housing (DFEH) reported that they received 36 housing complaints from residents of Riverside County, approximately 3.9 percent of the total number of cases in the state that year (934). Program 18 19 has been included to work with fair housing enforcement organizations and agencies to track issues and identify patterns in the Oty.

The City of Indian Wells complies with fair housing laws and regulations as described in Table 6-1.

TABLE 6-1: COMPLIANCE WITH

FAIR HOUSING LAWS
California Fair Employment and
The Fair Employment and Housing Act (FEHA)
Compliance is achieved through strict
Housing Act (FEHA)
applies to public and private employers, labor
enforcement in hiring practices and
organizations and employment agencies. It is
regular training of and by Human
illegal for employers of 5 or more employees to
Resources staff.
discriminate against lob applicants and
employees because of a protected category or
retaliate against them because they have
asserted their rights under the law. The FEHA
prohibits harassment based on a protected
category against an employee, an applicant, an
unpaid intern or volunteer, or a contractor.

Harassment is prohibited in all workplaces, even
those with fewer than five employees.

Government Code Section 65008
Covers actions of a city, county, city and
Compliance is achieved by uniform
county, or other local government agency, and
application of the City's codes,
makes those actions null and void if the action
regulations, policies and practices,
denies an individual or group of individuals the
induding development standards, design
enjoyment of residence, landownership,
guidelines, application submittal
tenancy, or other land use in the state because
requirements, fees and approval findings.
of membership in a protected dass, the
method of financing, and/or the intended
occupancy. For example, a violation under
Government Code section 65008 may occur if
a jurisdiction applied more scrutiny to
reviewing and approving an affordable
development as compared to market -rate
developments, or multifamily housing as
compared to single family homes.

Government Code Section
Requires all public agencies to administer
Compliance is achieved through
8899.50
programs and activities relating to housing and
consultations with col in unity
community development in a manner to
stakeholders and support agencies as
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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element affirmatively further fair housing and avoid any
part of program evaluating and funding
action that is materially inconsistent with its
decisions. The 6th Cycle Housing Element
obligation to affirmatively further fair housing.

Housing Plan describes how each
Program addresses fair housing issues
and contributing factors.

Government Code Section 11135
Requires full and equal access to all programs
Compliance is achieved through
et seq.
and activities operated, administered, or
promotion/availability of activities and
funded with financial assistance from the state,
programs to all persons of all
regardless of one's membership or perceived
backgrounds to participate equally in
membership in a protected class.
community programs and activities.

Density Bonus Law (Gov. Code, §
Density bonus law is intended to support the
Compliance is achieved by administration
65915.)
construction of affordable housing by offering
of the City's Density Bonus Ordinance,
developers the ability to construct additional
which provides for compliance with
housing units above an agency's otherwise
Government Code Section 65915 et seq.
applicable density range, in exchange for
The Housing Plan includes Program 13,
offering to build or donate land for affordable or
Density Bonus Ordinance which requires
senior units. Density Bonus Law also provides
the City to amend its Density Conus
for incentives intended to help rake the
Ordinance consistent with State law,
development of affordable and senior housing
including density bonuses and incentives
economically feasible.
for projects that contain 100%very low -
and low-income units. The City will
monitor State law updates which impact
density bonuses and will update local
plans and programs as necessary.

Housing Accountability Act (Gov.

Provides that a local agency shall not
Compliance is achieved through the
Code, § 65589.5.)
disapprove a housing development project, for
development review process with is
very low, low-, or moderate -income
completed consistent with the Housing
households, or an emergency shelter, or
Accountability Pct. Additionally, the
condition approval in ailranner that renders the
Housing Plan indudes Program 12,
housing development project infeasible for
Development Code Amendments —
development for the use of very low, low-, or
Housing Constraints, which requires the
moderate -income households, or an
City to update the Zoning Code to remove
emergency shelter, including through the use
constraints to a variety of housing t pes
of design review standards, unless it makes
and ensure the City's standards and
certain written findings, based upon a
permitting requirements are consistent
preponderance of the evidence in the record.
with State law. This includes allowing
supportive housing by right, and updating
the Zoning Code to ensure eligible multi-
family projects with an affordable
component are provided streamlined
review.

No -Net -Loss Law (Gov. Code, §
Ensures development opportunities remain
The City's draft Housing Element
65863)
available throughout the planning period to
identifies a surplus of sites with a capacity
accommodate a jurisdiction's regional housing
to accommodate the City's RHNA
need assessment (RHNA) allocation,
allocation. The Housing Plan indudes
especially for lower- and moderate- income
Program 4, Residential Development
households.

Monitoring (No Net Loss), which to ensure
adequate sites are available throughout
the planning period to meet the City's
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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element RHNA at all income levels, the City will
monitor the depletion of residential
acreage, and review proposed General
Plan amendments, Zone Changes,
Specific Ran Amendments, and
development projects, to ensure an
adequate inventory is available to meet
the City's 2021-2029 RHNA obligations.

Least Cost Zoning Law (Gov.

Provides that, in exercising its authority to zone
Compliance is achieved through the
Code, § 65913.1)
for land uses and in revising its housing
implementation of Housing Element
element, a city, county, or city and county shall
Housing Plan Program 5, General Plan
designate and zone sufficient vacant land for
Update, in which the City is undertaking a
residential use with appropriate standards, in
comprehensive update to its policy
relation to zoning for nonresidential use, and in
document and will identify vacant and
relation to growth projections of the general
underutilized sites in the City suitable for
plan to meet housing needs for all income
residential development and make this
categories as identified in the housing element
information publicly available by posting
of the general plan.
to the City's website and maintaining
information at City Hall. It will also identify
new goals, policies, and programs to
support new development in the City,
including residential development.

Excessive Subdivision Standards
Provides that, in exercising its authority to
Compliance is achieved through the
(Gov. Code, § 65913.2.)
regulate subdivisions a city, county, or city and
implementation of a fair and equitable
county shall:
development review process which is
(a) Refrain from imposing criteria for design, as
administrated consistent with the
defined in Section 66418, or iirjrovements, as
Excessive Subdivision Standards Act.
defined in Section 66419, for the purpose of
rendering infeasible the development of
housing for any and all econorric segments of
the community. However, nothing in this
section shall be construed to enlarge or
diminish the authority of a city, county, or city
and county under other provisions of law to
perrrit a developer to construct such housing.
(b) Consider the effect of ordinances adopted
and actions taken by it with respect to the
housing needs of the region in which the local
jurisdiction is situated.
(c) Refrain from imposing standards and
criteria for public improvements including, but
not limited to, streets, sewers, fire stations,
schools, or parks, which exceed the standards
and criteria being applied by the city, county, or
city and county at that time to its publicly
financed improvements located in similarly
zoned districts within that city, county, or city
and county.

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PATTERNS OF INTEGRATION AND SEGREGATION
To inform priorities, policies, and actions, Indian Wells has included an analysis of integration and segregation, including patterns and trends, related to people with protected characteristics. Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area. Conversely, integration refers to a condition in which there is a not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area. The following analyzes levels of segregation and integration for race and ethnicity, persons with disabilities, familial status, age, and income to identify the groups in Indian Wells that experience the highest levels of segregation.

Dissimilarity Index
The dissimilarity index is the most commonly used measure of segregation between two groups, reflecting their relative distributions across neighborhoods (as defined by census tracts). The index represents the percentage of the minority group that would have to move to new neighborhoods to achieve perfect integration of that group. An index score can range in value from 0 percent, indicating complete integration, to 100 percent, indicating complete segregation. An index number between 30 and 60 indicates moderate similarity and community segregation while an index number above 60 is considered to show high similarity and a segregated community. There are a number of reasons why patterns of racial segregation exist (or don't exist) within a community. Some of these reasons may be institutional (discriminatory lending practices) while others can be cultural (persons of similar backgrounds or lifestyles choosing to live near one another to provide support and familiarity). As such, discussions regarding segregation are complicated and there is not a "one size fits all" approach to addressing patterns of racial segregation.

Table 6-2 shows the dissimilarity between each of the identified race and ethnic groups and White population for the County of Riverside and the Riverside -San Bernardino -Ontario, CA metropolitan area. The higher scores indicate higher levels of segregation among those race and ethnic groups. The County does not have any racial or ethnic groups with scores higher than 60 (indicating high similarity and segregation). All race and ethnic groups exhibit moderate levels of dissimilarity and segregation in Riverside County (scores between 30 and 60). The highest levels of segregation within Riverside County are Black residents (44.89%) and Hispanic residents (42.61%), both of which fall within the moderate similarity and segregation range.

When compared to the Riverside -San Bernardino -Ontario, CA metropolitan area, the County exhibits lower levels of dissimilarity and segregation than the region as a whole for all race and ethnic groups. For both the County and larger region, there has been an increase in most groups in levels of dissimilarity, except for Black/White at the County level. This analysis suggests that patterns of segregation at the local level reflect those at the regional level as well, and that partnerships with regional agencies and advocates may be an effective way to address local issues of moderate segregation.

TABLE 6-2: RACIAL/ETHNIC DISSIMILARITY TRENDS
Racial/Ethnic Dissimilarity
Index
1990
County of Riverside
20W
2010
Riverside -San Bernardino -Ontario, CA
1990
Region
2000
2010
O.irrentt
irren
Non-Mite/Wife

32.16 38.18

36.71 39.53

32.92 38.90

38.95 41.29
Black/Wiite

46.72 47.08

40.59 44.89

43.74 43.74

43.96 47.66
Hispanic/VN-lite

34.33 41.31

40.66 42.61

35.57 35.57

42.36 43.96
Asian or Pacific Islander/White

34.92 35.99

36.36 40.80

33.17 33.17

38.31 43.07
Source: County of Riverside, Analysis of Impediments to Fair Housing Choice, June 2019 Diversity
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element As shown in Figure 6-2, in 2018 the Qty of Indian Wells had a cimilar slightly lower diversity index score/pattern compared to much of the surrounding areas. While the majority of Indian Wells is considered lower diversity, these census block groups are generally located in areas with little or low: -density residential development, particularly in areas designated Open Space and Natural Preserve in the General Ran Land Use Element. Comparing diversity in 2010 to 2018 (see Figure 6-3), there has been little change in diversity in the City, accept that two census tracts located in east Indian Wells which became more diverse. The Qty of Palm Desert (to the west and north) similarly has pockets of lower levels of diversity, as does the Qty of La Quinta (to the east). I n the Southern California Association of Governments (SCAG) region, northern areas in Los Angeles and San Bernardino Counties have a higher percentage of residents that identify as Hispanic than White. This trend differs from more central areas of the SCAG region, including Indian Wells, as illustrated in Figure 6-4. Indian Wells more closely reflects the patterns of diversity found in the Coachella Valley of Riverside County, where the diversity index is consistent across the more affluent communities, showing that there are concentrated areas of more or less diversity. For Indian Wells, areas of concentrated lower diversity typically cover the residential -resort communities, whereas the census block groups with moderate diversity scores (40-55 and 55-70) run along the north side of Highway 111. As shown in Figure 6-2, a similar pattern is also identifiable in the neighboring cities suggesting that Indian Wells is not an outlier in this regard.

Table 6-3 shows the demographic trends over time for the Qty and the County of Riverside. Since 1990, the percentage of population that are Hispanic residents has increased slightly in the Qty from 2% to 5.3% compared to the County which has increased from 26.3% to 48.4%. Generally there has been little change in the race and ethnicity of the residents of the City, especially when compared to Riverside County.

TABLE 6-3: DEMOGRAPHIC TRENDS
Indian Wells
White

97.9%

93.9%

94.2%

94.1%
Black or African American

0.3%

0.4%

1.8%

1.1%
American Indian or Alaska Native
-

0.2%
0%
0%
Asian

1.4%

1.5%

0.9%

1.7%
Native Hawaiian and Pacific Islander
-
-
0%
0%
Some Other Race

0.4%

1.1%

1.2%

1.7%
Two or More Races
-
-

1.9%

1.4%
TOTAL
100%
100%
100%
100%
Hispanic or Latino (of any race)

2.0%

3.0%

7.6%

5.3%
County of Riverside
White

76.4%

65.4%

67.4%

60.8%
Black or African American
5A%

6.2%

6.1%

6.4%
American Indian or Alaska Native

1.0%

1.2%

1.0%

0.8%
Asian

3.3%

3.5%

6.0%

6.4%
Native Hawaiian and Pacific Islander
.2%

0.2%

0.4%

0.3%
Some Other Race

13.6%

18.7%

14.9%

20.8%
Two or More Races
-

4.7%

4.2%

4.5%
TOTAL
100%
100%
100%
100%
Hispanic or Latino (of any race)

26.3%

36.1%

45.6%

48.4%
Source: US Census; 1990 US Census; 2000 US Census; 2010 US Census, 2014-2018 ALS Housing Element Background Report 1 Page BR -88
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INDIAN WELLS
City of Indian Wells 2021-2029 [ _1 , Draft Housing Element iving in verty. In the SCAG
ocatea in maj r cities an uninc r rated areas. t t wever, tnere are n c.ce
sus IOCK g
Income and Race
pu
ation identifies as n n -White and 110 percent r m re f residents are regi n, there are sever
•
ca
y
y t t n Ian vvctls cast.
wncrc m rc than half f resi en arc t very t w r t w income. t wcvcr, rest en la acvci pmcnt in tni� •
income populations.
wer evets r meaIan n use
income arc generally evtaent in the same areas wttn ntgncr c ncentratl n,, 1 wcat mc i n €(3@,
enttrciy r tnc ntry uo an its corres natng restacnttat cvct men +. t ne Luxury n mes tnat arc built in this census bl ck gr up seem t conf ict with the I wer me ian h useh I Inc mes It is Ikely cn +brit Ir4nr rnci
pen entry weattny,
located in c astal c mmunitics while in and suburban communities d not reflect this pattern Whic e fixed inc me f many 1 er rest en s, technically the h useh 1 Inc mes arc 1 wcr than w u Persons with Disabilities
As discussed in the Needs Assessment section of the Housing Element Background Report, approximately 17% perccnt of Indian Wells' population in 2018 had at least one disability, and 91% -percent of those individuals were seniors, who are more likely to have an ambulatory disability (this is consistent with the overall fact that Indian Wells' residents are older in general, and therefore it would be expected that the majority of persons with disabilities would also be senior residents). Since 2014, the percent of the population with a disability has increased slightly across the Qty, but still reflects the SCAG region and the rate of disability is generally even across the Qty at 10-20% (Figure 6-5). The rate of disability in Indian Wells is similar to all incorporated jurisdictions in Riverside County and most suburban communities in the SLAG region, as illustrated in Figure 6-6. Disability rates are higher further inland in the region, indicating that the aty of Indian Wells does not have a disproportionate concentration of persons with disabilities when compared to the region or a smaller percentage of persons with disabilities that would indicate barriers to this population. The Qty permits small residential care facilities by right in all residential zones and works proactively with service providers to address the needs of the Qty's persons with disabilities.

Familial Status
Family makeup, including married couples (with or without children), persons over the age of 18 living alone and female headed households can provide insight into potential segregation issues in the community. As shown in Figure 6-7, there is not a significant concentration of population in married couples in the Qty.

There is a slightly lower concentration of married couple in the eastern and western census tracts of the Qty Housing Element Background Report 1 Page BR -89
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element and a slightly higher concretion in the census tracts located in the northern and southern portions of the Qty. Overall, as shown in Figure 6-8, the pattern of distribution of married couples continues in the surrounding communities. As seen in Figures 6-9, there is a slightly lower concentration of married couples with children located in census tracts to the west that include portions of the City of Palm Desert and census tracts in the northern portion of the City. This pattern is mirrored in the surrounding communities, as illustrated in Figure 6-10.

Indian Wells is also home to a number of female -headed households located throughout the community, with slightly higher concentrations of this familial type in the census tract at the north end of the City in the Toscana Country aub (Figurc 6 6Figure 6-11). There are no known historic patterns of segregation by familial status, including by household gender, which the City finds as contributing factors to continued segregation in Indian Wells. Figurc 6 6 Figure 6-11 indicates that female -headed households are located in a variety of census tracts with different incomes, access to opportunities, and resource levels. Moreover, the pattern present in Indian Wells mirrors neighboring jurisdictions, which also have smaller areas where the concentration of female -headed households is slightly higher than the rest of the jurisdiction.

Seniors
As described further in the Needs Assessment, Indian Wells has a large senior population (58.9% of residents and 69.2% of households). The community's older residents, persons 65 years of age or older, are spread throughout the Qty and not concentrated in any particular area (Figure 6 7Figure 6-13). Unlike other communities where seniors might be choosing to age in place or choose to locate closer to goods, services, and transit in order to have easier access to these opportunities, Indian Wells is a resort community with many residents choosing to retire there, and hence the even distribution of seniors who, based on median incomes, have the means to do so. The Demographic, Economic and Real Estate Profile for the Qty of Indian Well's General Plan Update determined that the Oty's median age, which in 2018 was almost 68 years old was over 50% higher than the median age of Eastern Riverside County at 42. As shown in Figure 6-14, the City of Indian Wells and surrounding cities, including Palm Desert and La Quinta, which are also resort communities, have a much higher concentration of senior residents when compared to the cities of Indio and Coachella, which have more affordable housing.

Median Income
Figure 6-15 show the median income in the City by census block groups and how the median income in those groups compare to the median State income of $87,100. Lower levels of median household income are generally evident in the same areas with higher concentrations of residents classified as very low and low income (Figure 6-15). Two block groups exhibit the community's lowest median household income ($30,000 — $55,000 per year), one of which is described in more detail below and is also an area where very low and low-income residents are most concentrated. The other block group consists entirely of the Toscana Country Oub and its corresponding residential development. The luxury homes that are built in this census block group seem to conflict with the lower median household incomes. It is likely the case that older residents on fixed incomes live in these homes; while independently wealthy, smaller fixed incomes result in lower median household income data, which is not a true representation of the occupant's wealth/economic status.

As shown in Figure 6-16, the pattern in income in Indian Wells, is similar to the surrounding communities.

However, Indian Wells and the surrounding communities have higher median income than the rest of Riverside County. As discussed in the Needs Assessment section of this Background Report, the median household income in Indian Wells is $104,522 compared to the County median income of $69,948.

According to the City's Demographic, Economic and Real Estate Profile, the City's median household income is markedly higher than that of Eastern Riverside County. Indian Well's status as the wealthiest municipality in the region is in line with its status as one of the most highly educated, given the general correlation between educational attainment and income. Additionally, the high proportion of the population over the age Housing Element Background Report 1 Page BR -90
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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element of 50 suggests that those who are still working have had the opportunity to advance in their careers, or have achieved financial independence.

As described throughout this Housing Element, the Oty is committed to supporting the development of housing affordable to lower income households in locations throughout the Oty and has identified sites for future growth and development which are designed to promote a more balanced and integrated pattern of household incomes.

INCOME AND R CERACIALLY OR ETHNICALLY CONCENTRATED AREAS OF POVERTY (R/ECAP) R/ECAP
A racially or ethnically concentrated area of poverty (R/ECAP) is an area in which 50 percent or more of the lation identifies as non-White and 40 percent or more of residents are livina.n poverty. In th region. there are several R/ECAPs located in major cities and unincorporated areas. However, there are no R/ECAPs located in the Qty of Indian Wells. The closest R/ECAF5 are in the cities of La Quinta and Indio, directly to Indian Wells' east. While there are no R/ECAPs in Indian Wells, there is one census block grouo where more than half of residents are of very low or low income. However, residential development in this block group is sparse with the block group largely dominated by the I ndian Wells Tennis Garden, Southwest urch, -n• -r-I. F•r• �-m-nt- Sch••I. Th- m-'•rit •f In•i-n W-IIs, inclu•in• its n -w -r -r--s and areas that are largely undeveloped) have fewer residents of very low and low income, consistent with the patterns seen by the immediately surrounding cities. Figure 6-317 shows the pattern of very low and low- income populations. As discussed above, the Oty of Indian Wells has fewer residents of very low and low income, compared to Eastern Riverside County. As shown in Figure 6-18, there are concentrations of very low- and low-income households throughout Eastern Riverside County, with higher contractions in the communities surrounding the Salton Sea to the south. According to the County Al , Hispanic residents make up 72.28% of residents within RECAPS within the County.

Figure 6-19 provides an ethnicity analysis identifying the majority racial concentrations in the Oty. As shown, the vast majority of the City contains a predominant White majority (gap > 50%), with two census tracts with a smaller White resident majority. The racial/ethnic concentrations in the City follow a similar pattern to the surrounding communities. Overall, however, it appears that the Oty does not exhibit significant patterns or trends of greater racial/ethnic concentrations correlating to increased poverty, unless viewed in the context of the larger region, as illustrated in Figure 6-20. According to Figure 6-20, and the County Al, there is a high concentration of White residents in the County in the northwest region, particularly along the SR -91 corridor, as well as along the 1-15 corridor, through the communities of Lake Elsinore, Wildomar, Murrieta, and Temecula. Concentration of Hispanic residents in the County are found in the extreme northwest of Riverside County in the communities of Mira Loma, Glen Avon, and Rubidoux. Another concentration of Hispanic residents is found more to the east, radiating out from the Perris area, which also have concentration of Black residents.

Racially Concentrated Areas of Affluence (RCAA)Lower levels of median household income are generally evident in the same areas with higher concentrations of residents clansificd as very low and low incomc (Figure 6 4). w. •1• kgroups exhi•i h •mmu ity' I•w nt •' n h• n •I• inc•m ($ 1,110 $ 5,001 p ry r), one f uihinh Pc rionnrihord .hn.,n nn moron whore .,nrj, Inui onrr Inui innnmo re,cirinntn nrn n,nc+ conccntratcd. Thc other block group consists entirely of the Toscana Country Club and its corresponding residential development. Thc luxury homcs that arc built in this census block group seem to conflict with the lower median household incomes. It is like)
the case that older residents on fixed incomes live in these homes; while independently wealthy. smaller fixed incomes result in lower median household income data. which is not a truc representation of the occupant's wealth/economic status.

In contrast to a R/ECAP, a racially concentrated area of affluence (RCAA) is defined as a census tract in which 80 percent or more of the population is White and has a median income greater than $125,000 Housing Element Background Report 1 Page BR -91
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element annually. -Table 6-4 looks at the median household incomes of White, non -Hispanic residents in Indian Wells, as well as the Riverside County as a whole. As shown in Table 6-4, there is significantly less difference in median income between White households and all households in the Qty when compared to the County.

However, since over 90% of households in Indian Wells are White, compared to only 35.9% in the County, this is to be expected. There are no areas of Indian Wells that aualifv as a RCAA. Most RCAAs in the SCAG region are located in coastal communities while inland suburban communities do not reflect this pattern.

While technically there are no RCAAs in Indian Wells, Indian Wells is a very affluent community. However, due to the fixed income of many older residents, technically the household incomes are lower than would be "expected" for an affluent community which has resulted in the misconception that there are not concentrated areas of affluence in Indian Wells, which there are. The Housing Ran includes programs to encourage increased diversity and housing opportunities in the Qty and to provide education related to fair housing rights. This includes Program 3, Production of New Housing Units in which the Qty will continue to provide incentives and flexibility in development standards to encourage affordable housing development.

Additionally, The Qty will collaborate with housing developers to seek state, federal, and other appropriate funds and incentives targeted for the development of housing affordable to extremely low-income households through this strategy and the strategy developed in Program 6 of the Housing Ran.

TABLE 6-4: MEDIAN HOUSEHOLD INCOME
Source: US Census, AGS2094-2098

ACCESS TO OPPORTUNITY
The Department of Housing and Community Development together with the California Tax Credit Allocation Committee (TCAC) established the California Fair Housing Task Force to provide research, evidence -based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments to further the fair housing goals (as defined by HCD). The Task Force developed the 2021 ICAO/HOD Opportunity Area Maps to understand how public and private resources are spatially distributed. The Task Force defines opportunities as pathways to better lives, including health, education, and employment. Overall, opportunity maps are intended to display which areas, according to research, offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health.

The opportunity maps are made from composite scores of three different domains made up of a set of indicators. Based on these domain scores, census tracts are categorized as Highest Resource, High Resource, Moderate Resource, Moderate Resource (Rapidly Changing), Low Resource, or areas of High Segregation and Poverty. Table 6-5 shows the full list of indicators.

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INDIAN WELLS
City of Indian Wells 2021-2029 Final Draft Housing Element TABLE 6-5: DOMAINS AND LIST OF INDICATORS BY FACTORS
Domain
Economic
Indicator
• Poverty
• Adult education
• Employment
• Job proxirrity
• Median home value
Education
• Math proficiency
• Reading proficiency
• High school graduation rates
• Student poverty rates
Environmental
• CalEnviroScreen 3.0 pollution indicators and values
Source: California Fair Housing Task Force, Methodology for TC4C/HCD Opportunity Maps, December 2020 Table 6 6 identifies the resources levels by census tract and the correspondingllScores for economic, educational and environmental indicators. As shown in Table 6-6, one of the census tracts is a high resource area and the remaining census tracts within the Qty are located in the highest resource areas.

TABLE 6-6: OPPORTUNITY RESOURCE LEVELS BY CENSUS TRACT
Resource Level
449.11
Highest
0_58
0_89

0.91 449.28
Highest

0.64 (194

0.77 451.08
High
(138
(190
(184
451.17
Iiighest

0.61 0.94

0.84 451.22
Highest
(186

0.73 (182
451.23
Highest
(188
(194

0.84 451.25
Highest

0.90 0.90

0.62 Source: California Housing and Community Development, AFFH Mapping Tool, https//affh-data-resources-cahcd. hub. arcais. com, accessed January 27, 2022.

Economic Opportunity
As described above, the Fair Housing Task Force calculates economic scores based on poverty, adult education, employment, job proximity, and median home values. As shown in Table 6-6, the overall economic scores in Indian Wells range from 0.38 to 0.90. According to the 2021 Task Force map (Fi a-rc 6 BFiciure 6-21), the Qty is primarily a community of more positive economic outcomes (>0.75). However, there are two census tracts with moderate economic scores (0.50-0.75), both on the north side of the Whitewater River wash, and each corresponding with the lower median household income scores identified in Figurc 6 4Figure 6-15. A third census tract, along the western edge of the City and mostly outside of the City's boundaries, has a low economic score (0.25-0.50), which may be more attributable to the conditions in Palm Desert since the portion of the census tract in Indian Wells encapsulates a gated community. This pattern is similar to the City of La Quinta.

As shown in Figure 6-22, the job proximity index is high in most of Indian Wells (>80), except for the census tract in the south that is primarily undeveloped and the census tract to the east, which still has a job proximity index score between 60-80. In the Coachella Valley, job proximity scores are generally higher in the north and are lower to the south. According to the Southern California Association of Governments' (SCAG) local profile for the Qty, approximately 18.2% of Indian Wells residents commuted to the Qty of Palm Desert for Housing Element Background Report 1 Page BR -93
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element work in 2016. Only 7.9% of residents commuted within the City of Indian Wells. The SCAG local profile of Indian Wells lists 5,282 total jobs in the Qty in 2017, an increase of 33.6% from 2007.5 The Demographic, Economic and Real Estate Profile for the City of Indian Well's General Plan Update determined that Indian Wells has a high proportion of jobs to households at 1.23. This ratio is much greater than those of Eastern Riverside County, which has a jobs to household ration of 0.75. Typical of many tourist destination communities, Indian Wells provides housing for some of the wealthier residents of the Coachella Valley, while also serving as an employment hub for workers in hospitality and recreation industries.

Educational Opportunity
The Fair Housing Task Force determines education scores based on math and reading proficiency, high school graduation rates, and student poverty rates. All around, the Qty performs well in regard to education scores (Figurc 6 9Figure 6-23), with census tracts receiving either moderate (0.50-0.75) or higher (>0.75).

As shown in Table 6-6, the overall education opportunity scores in Indian Wells range from 0.62 to 0.91.

This pattern is also evident in Palm Desert. The SCAG local profile of I ndian Wells shows that the kindergarten through 12th grade public school enrollment in the City decreased by 4.2% or 33 students between 2000 and 2018. With approximately 759 students enrolled in 2018, Indian Well's student population comprised of 0.2% of the County's total, which is the same percentage that the population of Indian Wells represents of the County's total population.

The City of Indian Wells is served by the Desert Sands Unified School District (DSUSD) for kindergarten through 12th grade. DSUSD primarily serves the communities of Bermuda Dunes, Indian Wells, Indio, La Quinta, and Palm Desert and consists of 18 elementary schools, one charter elementary school, six middle schools, one charter middle school, four comprehensive high schools, two continuation high schools, one alternative education school, and preschool.6 Gerald Ford Elementary School is the only school in the District located in Indian Wells. According to the California Department of Education's California School Dashboard, in 2019 DSUSD had an enrollment of 26,356 students. The ethnic/racial make-up was: 76.5% Hispanic,

15.9% White, 1.6% African American, 0.3% American Indian 1.7% Asian, 0.8% Filipino, 0.1% Pacific Islander, and 1.5% two or more races. A total of 70% of the District's students come from socioeconomically disadvantaged backgrounds, 23.5% are English learners and 11.1°/0 are students with disabilities. The District has a graduation rate of 92.1%.7
Environmental Opportunity
Environmental health scores are determined by the Fair Housing Task Force based on CalEnviroScreen 3.0 pollution indicators and values. The California Office of Environmental Health Hazard Assessment (OEHHA) compiles these scores to help identify California communities disproportionately burdened by multiple sources of pollution. I n addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. As shown in Table 6-6, the overall environmental scores in Indian Wells range from 0.73 to 0.94. As with the neighboring Coachella Valley communities on the southwest side of the 10 Freeway, Indian Wells largely has areas with the most positive environmental outcomes (Figure 6 10Figure 6-24) although one census tract has a moderate environmental health score (0.50-0.75). This census tract is one of the more densely populated tracts in Indian Wells and is positioned between Highway 111 and the Santa Rosa Mountains. I n Riverside County, generally the more remote and rural portions of the County have higher environmental health scores when compared to the denser more urban portions of the County. Particularly, the transportation corridors have the lowest environmental health scores.
5 Southern California Association of Governments, Profile of the Oty of Indian Wells, May 2019. 6 Desert Sands Unified School District, Schools, https://www.dsusd.US/SCnOOIS , accessed January 27, 2022. 7 California Department of Education, California School Dashboard, https://www.caschooldashboard.org/ , accessed January 27, 2022.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Transportation
Availability of efficient, affordable transportation can be used to measure fair housing and access to opportunities. According to All Transit, the City of Indian Wells has a score of 4.9 out of 10 (low combination of trips per week and number of jobs accessible enabling few people to take transit to work), with a score of 10 being high connectivity, access to jobs and frequency of service.8 Bus service is provided by SunLine Transit Agency, which runs bus service throughout Coachella Valley and provides commuter link to transit centers and Metrolink train stations. There are currently three bus routes that provide transit in Indian Wells and connect the City with the neighboring communities in the Coachella Valley.

The SCAG local profile states that in 2018, 72.2% residents drove alone to work and the mean travel time to work was 21.9 minutes. Between 2000 and 2018, the average travel time to work increased by approximately 3 minutes. In comparison, the mean travel time to work in Riverside County was 33.1 minutes and 77.2% of County residents drove alone to work. According to the SCAG Indian Wells Profile, between 2000 and 2018 the percentage of individuals who traveled to work by driving decreased by 15.9%.

Overall Opportunity
Overall opportunity map scores for Indian Wells census tracts are presented in Figure 6 11 Figure 6-25 along with the City's sites inventory. The majority of Indian Wells is classified as Highest Resource with only a small area identified as High Resource (which corresponds to the census tract with the low economic score described above). Compared to the neighboring jurisdictions, Indian Wells has better composite scores for its census tracts than any other city, with Palm Desert being closest to Indian Wells. These scores reflect excellent access to economic and educational opportunities for Indian Wells residents, and very positive health outcomes for the large majority of the community.

DISPROPORTIONATE HOUSING NEED AND DISPLACEMENT RISK
Overcrowding and Overpayment
Typically, a housing unit is considered overcrowded if there is more than one person per room and severely overcrowded if there are more than 1.5 persons per room. As discussed in the Needs Assessment of the Housing Bement, overcrowding is not an issue in the City of Indian Wells as only seven housing units (0.3% of the total occupied units) were overcrowded in 2018 (i.e. more than one person per room). As Figure 6 12 Figure 6-26 indicates, all areas in the Oty are below the statewide average for overcrowding ( https://alltransit.cnt.org/ , accessed January 28, 2022.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element -To address displacement risks due to overpayment, the Qty will provide incentives to encourage affordable development (Program 3) and will develop a targeted program to connect lower income residents with affordable homeownership and rental opportunities within the Qty. The Qty's incentives to develop affordable housing and senior housing are defined in Section 21.12.040 of the Development Code.

Additionally, the Qty partners with the County of Riverside in the Urban County for Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and the Emergency Solutions Grant (ESG). The City's participation continues through Fiscal Year 2023. This partnership with the County of Riverside provides access to rental assistance for eligible I ndian Wells residents, especially those at the I ndian Wells and Mountain View Villas. The funding from the County uses a blend of CARES Act, CDBG and ESG funding.

Housing Condition
In addition to extensive overpayment, approximately two-thirds of the housing stock in Indian Wells is older than 30 years, which in a typical suburban community, could indicate that they would be in need of repairs.

Typically, housing over 30 years of age is more likely to have rehabilitation needs that may include plumbing, roof repairs, electrical repairs, foundation rehabilitation, or other significant improvements. However e City has not obscrvcd any homc in nccd of substantial rchabilitationAs discussed in the Needs Assessment, a citywide housing conditions survey was last performed in 2020 and indicated at the tirne that approximately 17% of housing units were in need of maintenance and rehabilitation while approximately less than 1% of housing units were in need of replacement. The Oty's Building Division has estimated that 4% of housing units are currently in need of substantial rehabilitation or replacement. —The Oty finds pride of ownership extremely high in Indian Wells, and the vast majority of homeowners proactively maintain and update their property. It is possible that some homes are in need of minor repairs (cracked stucco, new paint), but there are no indications that home conditions in Indian Wells impact the health or safety of the community. In some cases, the cost of major repairs, if necessary, can be prohibitive, resulting in the owner or renter living in substandard housing conditions or being displaced if the house is designated as uninhabitable or during rehabilitation. According to Comprehensive Housing Affordability Strategy (CHAS) data compiled by the U.S. Census Bureau, approximately 40 percent of Indian Wells households have at least one housing problem, which may include overcrowding, lack of a complete kitchen, lack of complete plumbing, or cost burden. As identified above, many homeowners and renters in Indian Wells are cost burdened, and may represent a large percentage of the 40 percent of households with a housing problem identified in CHAS. There is no evidence that there are patterns of overcrowding or homes without complete kitchens or plumbing. The Housing Ran includes Program 1, Rehabilitation which refers property owners to applicable agencies/organizations for rehabilitation assistance.

Persons Experiencing Homelessness
As discussed in Section 3 of the Background Report, the 2020 Point -In -Time Report identified one person in the City of Indian Wells experiencing homelessness, representing less than one percent of Riverside County's total homeless count {2,884 individuals). From the 2016 to the 2020 Homeless Count, there was an increase of homeless individuals counted in Riverside County from 2,165 to 2,884, which is a 33.2% increase.

According to the 2020 Point in Time Report for Riverside County, from 2019 to 2020, the count of homeless individuals in Riverside County increase only 3% (2,811). Compared to 2019, the sheltered count decreased 5% (766 to 729), while the unsheltered count increased 5% (2,045 to 2,155).9 The person identified in Indian Wells was unsheltered.

The Housing Plan includes Program 17, Support for Persons Experiencing Homelessness. The City will coordinate with the County of Riverside, the Coachella Valley Association of Governments, adjacent jurisdictions and local non -profits and service providers to address the needs of persons experiencing homelessness in the Coachella Valley.

Riverside County Department of Public Social Services, 2020 Homeless Point -in -Time Count and Survey, June 2020.

Housing Element Background Report 1 Page BR -96
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element Displacement Risk
The annual rate of increase in average home value or rental prices compared with annual changes in the average income in the City also indicates an increased risk of displacement due to housing costs outpacing wage increase, a trend that is felt throughout the region, state, and nation. According to Zillow, the average home value in Indian Wells has increased steadily since 2009, increasing from $500,000 to $888,198 in April 2021. Based on a review of rental ads on Ziiiow. com, Rentcafe.com, Zumper.com, and Apartments.com, the median rent in Indian Wells in May 2021 was $4,500 per month. While this estimate is significantly different than the data provided by the U.S. Census, the higher rental rate more closely mirrors the real -world experience in Indian Wells. There were 35 rentals available in May, 2021. Rents varied significantly based on the size of home, ranging from $1,400 for 1 bed/1 bath homes to $15,000 for a 2 bed/4 bath home. As shown in Figure 6-32, only one census tract in the City is designated as a "Sensitive Community" where residents may be particularly vulnerable to displacement in the event of increased redevelopment and shifts in housing costs. Communities were designated sensitive if they currently have populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. Vulnerability is defined as share of very low-income residents is above 20% in 2017 and the tract meets one other criteria related to renters, diversity, and housing burden.

In order to address affordability challenges, the Oty will encourage and incentivize development of affordable housing units and will develop a program to connect lower income residents with affordable housing opportunities. The City owns and maintains two affordable housing projects (Indian Wells Villas and Mountain View Villas). The City has identified Indian Wells Villas, which provides 90 affordable units, to be at_ high risk of converting to market rate units in the next 10 years. The Oty has included Program 2 to proactively pr-c.:,crvc monitor and preserve the affordability units at the Indian Wells Villages project to prevent displacement of these residents.

Displacement risk increases when a household is paying more for housing than their income can support, their housing condition is unstable or unsafe, and when the household is overcrowded. Each of these presents barriers to stable housing for the occupants. In Indian Wells, overpayment is only loosely linked to median income. Nonetheless, taken together, the risk of displacement is highest for lower income households, including those that are currently overpaying for housing. With programs to incentivize new affordable development, and programs to support existing residents, the City will proactively work to address and prevent risks associated with displacement.

Research has shown that low-income renter populations are disproportionately exposed to environmental hazards and that housing tenure is a telling determinant of social vulnerability to disasters. Renters bear the brunt of the existing affordable housing shortage, and their adaptive capacity to cope and recover from the impacts of environmental hazards may be reduced due to systemic inequities and limited resources. As discussed in the Constraints section under Environmental Constraints, environmental hazards affecting residential development in the. City include geologic and seismic conditions, which provide the greatest threat to the built environment, and flood hazards. Structures particularly susceptible to earthquake damage include tilt -up structures, unreinforced masonry buildings, older buildings, and mobile homes. After the 1971 San Fernando earthquake, building codes and design criteria were updated to address seismic occurrences.

Residential development within 100 -year and 500 -year flood zones are subject to specific standards outlined in the City's Floodplain Management Ordinance to minimize flood hazard damage and risk.

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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element

SITE INVENTORY ANALYSIS
AB 686 requires that jurisdictions identify sites throughout the community in a manner that is consistent with its duty to affirmatively further fair housing. The site identification includes not only an analysis of site capacity to accommodate the RHNA (provided in the Housing Resources section), but also considers whether the identified sites serve the purpose of replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity. This section analyzes the role of all sites, regardless of income level, in assisting to affirmatively further fair housing. However, special attention is paid to those sites identified to accommodate a portion of the City's lower -income RHNA to ensure that the City is thinking carefully about how the development of new affordable housing options can promote patterns of equality and inclusiveness.

As previously stated, the City finds that there are no known historic patterns of segregation by race and ethnicity, persons with disabilities, familial status, age, or income. Nonetheless, as described throughout this Housing Element, the City is committed to supporting the development of housing to promote a balanced and integrated community. This is highlighted in Table 5-4 in the Housing Resources chapter, as the City has identified a surplus of sites and excess development capacity for housing for all income levels. The location of new development to meet the City's lower income RHNA is not expected to contribute to patterns of isolation or segregation for lower income households.

Figure 6-2 shows the sites identified to meet I ndian Wells RHNA allocation in relation to racial/ethnic diversity.

As shown, proposed lower income RHNA sites are located throughout the community and are not concentrated in areas of low diversity. The majority of sites are located in areas of moderate diversity, and no sites are located in areas of lower diversity.

Figure 6-5 shows the sites designated to meet Indian Wells RHNA allocation in relation to the concentration of persons with disabilities. As shown, proposed lower income RHNA sites are located throughout the community and are not concentrated in areas with high proportions of persons with disabilities. The locations of sites designated to meet the City's lower income RHNA allocation are not expected to contribute to patterns of isolation or segregation for persons with disabilities.

Figure 6-11 shows the sites designated to meet Indian Wells RHNA allocation in relation to female -headed households. As shown, proposed lower income RHNA sites are located throughout the community and are not concentrated in areas with high levels of female -headed households. The locations of sites designated to meet the City's lower income RHNA allocation are not expected to contribute to patterns of isolation or segregation for female -headed households.

Figure 6-13 shows the sites designated to meet Indian Wells RHNA allocation in relation to concentration of senior residents. As shown, proposed lower income RHNA sites are located throughout the community and are not concentrated in areas with high proportions of senior residents. The locations of sites designated to meet the City's lower income RHNA allocation are not expected to contribute to patterns of isolation or segregation for senior households.

Figure 6-15 shows the sites designated to meet Indian Wells RHNA allocation in relation to median household income. As shown, proposed lower income RHNA sites are located throughout the community and are not concentrated in areas with low median household income. Some candidate sites are located in the City's lowest median household income census tracts, but the overall distribution is spread amongst census tracts with varying levels of median household income. As discussed above, for one of the census tracts with lower median incomes, older residents on fixed incomes live in these homes; while independently wealthy, smaller fixed incomes result in lower median household income data, which is not a true representation of the occupant's wealth/economic status. The location of new development to meet the City's lower income RHNA is not expected to contribute to patterns of isolation or segregation for lower income households.

Housing Element Background Report 1 Page BR -98
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element The City does not have any racially or ethnically concentrated areas of poverty and the identification of sites to accommodate the City's RHNA is not expected to alter this finding.

The Qty examined the Opportunity Areas Map prepared by HCD and TCAC (Figure 6 11 Figure 6-25). The Opportunity Areas Map identifies areas in every region of the state whose characteristics have been shown by research to support positive economic, educational, and environmental health outcomes for low-income families — particularly long-term outcomes for children. Using the statewide Opportunity Areas Map and indicators of segregation, displacement risk, and access to opportunity as overlays to the Oty's sites inventory, the City was able to identify if the sites included in the inventory to accommodate the lower income Regional Housing Need Allocation (RHNA) affirmatively further fair housing and combat any existing identified patterns.

The aty of Indian Wells' 6th Cycle RHNA is 382 units, including 117 units affordable to very low incomelow- income households, 81 affordable to low incomclow-income households, 91 affordable to moderate income households, and 93 affordable to above -moderate income households.- The Qty has identified 17 units that are under construction or have been constructed since July 1, 2021. In addition, the Qty has three projects that are approved/entitled, but not yet under constructed (but will be constructed during the planning period). These three projects (Province, Toscana, and Indian Wells Crossing Specific Flan) will result in the production of 235 units. With these credits, the Oty has already met its above moderate income RHNA and has a remaining RHNA of 231 units (115 very low income units, 80 low income units, and 36 moderate income units).

To accommodate the Qty's remaining RHNA, Indian Wells has identified three two sites: two one vacant Qty -owned site and another site designated for rezoning via a new Housing Opportunity Site Overlay; both sites are located on the eastern side of the Qty, in an area of Highest Opportunity, and Indian Wells Villages, period, which is located in an area of High Opportunity. _One of the vacant sites is proposed to be developed by Abode Communities as a 100 -unit affordable project; the other vacant site is also owned by the City and undeveloped and the most
appropriate location to be rezoned to accommodate the City's remaining RHNA. The Oty has a high degree of confidence that these sites will provide deed -restricted affordable units to current and future Indian Wells residents and will help to serve the housing needs of the local community. To address displacement risks due to overpayment, the City will provide incentives to encourage affordable development (Program 3) and will develop a targeted program to connect lower income residents with affordable homeownership and rental opportunities within the City.

The Oty recognizes that ADUs are an excellent opportunity to supplement the City's existing housing stock and provide more affordable housing choices in existing neighborhoods, especially high -resource neighborhoods with limited or no vacant land remaining. The City has included Program 8 in the Housing Flan to monitor the affordability of ADUs developed in Indian Wells to more accurately account for their role in helping achieve the City's housing goals by income level.

Based on a review of the site inventory proposed to accommodate the City's RHNA, the City finds that the location of these sites affirmatively furthers fair housing by promoting the development of new affordable residential projects at vacant sites where new housing is needed to address existing patterns of overpayment.

As discussed previously, Indian Wells is primarily comprised of senior residents, many of who lived on fixed incomes. While they may have household wealth, many Indian Wells residents (renters and homeowners) overpay for housing. By providing more affordable housing opportunities at city -controlled sites, the Qty seeks to address one of the primary economic impacts experienced by Indian Wells residents. By focusing on new development opportunities on the eastern side of the Qty, where there is vacant land, while also looking to preserve the City's existing affordable units, on the western side of the Qty which is essentially fully developed, the Qty seeks to serve the needs of different geographic areas of the City.

Housing Element Background Report 1 Page BR -99
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INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element 6C. Analysis of Contributing Factors
As shown in_Table 6-7, the aty has identified the risk of displacement as the primary contributing factor to fair housing in Indian Wells, a pattern evident by the current levels of overpayment for housing expenses.

This is a particularly unique situation in Indian Wells were the majority of residents are seniors living on fixed incomes, which results in lower median household incomes. Although many residents overpay for housing based on costs as a proportion of median household income, residents are independently wealthy despite having lower median incomes due to their age/retirement status. The Oty has included actions to address the identified factors, as well as the other issues identified in this assessment, throughout the Housing Element programs and policies. In particular the Qty has identified one of its two affordable senior projects at high -risk of conversion to market rate units during the next 10 years. The Qty has included Program 2 to preserve these units as affordable units. Program 18 19 has been included to affirmatively further fair housing, per AB 686, and take meaningful actions that address significant disparities in housing needs and access to opportunities for all groups protect by state and federal law. Regional coordination efforts outlined in several programs will ensure that the Qty furthers patterns of integration and development of affordable housing in such a way that it will have a positive impact on residents of the Qty and region.

TABLE 6-7: FAIR HOUSING CONTRIBUTING FACTORS
AFH Identified
Fair Housing Issues
Contributing Factors
Meaningful Actions
Protecting Existing
Residents from
Displaoerrent
• Unaffordable rents and
home prices
• Availability of affordable
units in general
Hiqh
Program 2: Preservation of At -
Risk Units
Program 3: Production of New
Housing Units
Program 8: Accessory Dwelling
Units
Program 9: Public Property
Conversion to Housing
Program
Fair Housing Services
Outreach and
Enforcement
• Lack of resources for fair
housing agencies and
organizations
Medium
Program 14: Fair Housing
Policy Procedures
Program 19: Affirmatively
Furthering Fair Housing
Outreach and Coordination
Program
Housing Element Background Report I Page BR -100
400

FIGURE 6-1. CENSUS TRACT BOUNDARIES
Legend
L _ City of Indian Wells
Other Incorporated Area
Census Tract within the City
of Indian Wells
Other Census Tracts
Housing Element Site
O Site A
O Site B
MIRAGE
Miles

PALM DESERT
I Census
I Tract
I 449.28
I
Census Tract
451.08
Census Tract
451.17
Census
Tract
451.23
Census Tract O
449.11

UNINCORPORATED

RIVERSIDE COUNTY
—'111/1.1:L\
-!
I 1 r
I I p \
1 Census
Tract B
451.22

INDIAN WELLS
Census Tract
r 451.25
L

UNINCORPORATED RIVERSIDE COUNTY
I
rr
i
i
-r
r

LA QUINTA
INDIO
GENERAL PLAN 204[3
G
nom'

INDIAN WELLS
401
MUM

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Housing Element Background Report 1 Page BR -102
402

FIGURE 6-2: DIVERSITY INDEX BY CENSUS BLOCK GROUP 2018
Legend
`_1 City of Indian Wells

7.11: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Diversity Index (2018)
- Higher Diversity
55-70
40-55
Lower Diversity

INDIAN WELLS
0 1
Miles
'Data and Mapping Resources. California Department of Housi 3, 2022.

GENERAL PLAN 2040

INDIAN WELLS

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Housing Element Background Report 1 Page BR -104
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FIGURE 6-3: DIVERSITY INDEX BY CENSUS BLOCK GROUP 2010
st
Legend
1-1 City of Indian Wells
; 11: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Diversity Index (2010)
I= Higher Diversity
70-85
55-70
40-55
Lower Diversity
,
•
Miles
bate and Mapping Resources, California Department of Housi r: iay 13, 2022.
/0.
1 1
I I 1.
1 1
1 I 1
1 1 •
Illp I— — — "" 1 L---------,

INDIAN WELLS
•
•
GENERAL PLAN 20
INDIAN

CALIFORNIA
Or N..... Pl.suoiust Group �.■.■
. I.�.I �In Ww..w..t. n.y,,, ...1E .. ..... .. ......
—r V

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Housing Element Background Report 1 Page BR -106
406

FIGURE 6-4: DIVERSITY INDEX BY CENSUS BLOCK GROUP - COUNTYWIDE Legend
r i City of Indian Wells
r=1 County Boundary
Diversity Index (2018)
Higher Diversity
70-85
55-70
40-55
Lower Diversity
-s: AFFH Data and Mapping
ate: May 13,:2022.

SAN BERNARDINO COUNTY
RIVERSIDE COUNTY PalmDesertI b L

SAN DIEGO COUNTY
Indian
Wells

CALIFORNIA
Nnt" Pia un.ug Group
1 N�.1 ilr Wr..r„l.t�•,�.., r iP •n..rw,,..i o.

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Housing Element Background Report 1 Page BR -108
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FIGURE 6-5: PROPORTION OF POPULATION WITH DISABILITIES BY CENSUS TRACT •
Legend
1-1 City of Indian Wells
;111: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Population with a
Disability
40%
.12
Miles
hats and Mapping Resources, California. Department of Hou n22.
1 1
1 1
I I
1 1
1____J
1 Solkel
i
1 0 . O 4,
-, 1
.--r—r 1
r 1
1 1 INDIAN WELLS �'
1 1---'
---
I
1 ,
I
1 1 1
I- `: , 1 1
�1
I
•
•
I
GENERAL PLAN 2040
0 INDIAN WELLS

CALIFORNIA
409w

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Housing Element Background Report 1 Page BR -110
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FIGURE 6-6: PROPORTION OF POPULATION WITH DISABILITIES BY CENSUS TRACT - COUNTYWIDE Legend
r� City of Indian Wells
r=1 County Boundary
Percent of Population with a Disability
40%
Moreno Valley
Perris
Canyon M fee
Lake
e Elsinore
Wildomar
Murrieta
Temecula
2/ 5
Miles
r
Beaumont
San Jacinto
1 Hemet

SAN BERNARDINO COUNTY
Banning
Desert Hot
Springs
Cathedral
City
Palm Springs

RIVERSIDE COUNTY
9 SAN DIEGO COUNTY
GENERAL PLAN 2040
j

INDIAN WELLSY
Resources. California; apartment of Housing and Cony
411
MEM

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Housing Element Background Report 1 Page BR 112
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FIGURE 6-7: PERCENT OF POPULATION 18 YEARS AND OVER IN HOUSEHOLDS LIVING WITH SPOUSE •
•
:f.
•
•
Legend
1-1 City of Indian Wells
_ _; Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Population 18 Years and
Over in Households Living with
Spouse
> 80%

1.11 60% - 80%
40% - 60%
20% - 40%
< 20%
Miles
.-..r-
r-
I INDIAN WELLS f J
1 '
I 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1 I i
I,
L _�
r
11 1
1 1
I 1
Community Development. "FamilyStatus_Tract_2015_19."
e �
1 ,
1 ,
1 1
I
•
GENERAL PLAN 2040
P
e
nQ
/ r..;t1

INDIAN WELLS

CALIFORNIA
Ur �..... PI•uo.u� .roue L■■■■
A

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Housing Element Background Report 1 Page BR -114
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FIGURE 6-8: PERCENT OF POPULATION 18 YEARS AND OVER IN HOUSEHOLDS LIVING WITH SPOUSE - COUNTYWIDE Legend
r� City of Indian Wells
r=1 County Boundary
Percent of Population 18 Years and
Over in Households Living with
Spouse
▪ > 80%
_ 60% - 80%
▪ 40% -60%
III 20% - 40%
< 20%
Perris °I
Canyon Menifee
Lake
e Elsinore
Wildomar UW
Murrieta_4wfwii
4 FE Ar
Temec
2% s
Mmes
sa
Beaumont
r

SAN BERNARDINO COUNTY
Banning
a
Desert Hot
Springs
Cathedral
City
Palm Springs

RIVERSIDE COUNTY
IS

SAN DIEGO COUNTY
Rancho
Mirage
Palm Desert
Indian
Wells
Indio
Coachella
4iniL
GENERAL PLAN 2040 I
WELLS
INDIAN

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Housing Element Background Report 1 Page BR -116
416

FIGURE 6-9: PERCENT OF CHILDREN IN MARRIED COUPLE HOUSEHOLDS Legend
1-1 City of Indian Wells
_ _; Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Children in Married -
Couple Households
_ >80%
Mi 60%-80%
40% - 60%
20% - 40%
< 20%
GENERAL PLAN 2040
0 INDIAN WELLS

CALIFORNIA
Miles
LI1111MNI♦

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Housing Element Background Report 1 Page BR -118
418

FIGURE 6-10: PERCENT OF CHILDREN IN MARRIED COUPLE HOUSEHOLDS - COUNTYWIDE Legend
r� City of Indian Wells
r=1 County Boundary
Housing Element Site
O Site A
O Site B
Percent of Children in Married -
Couple Households
— >80%
▪ 60% - 80%
40% -60%
20% - 40%
< 20%
No Data

SAN DIEGO COUNTY
Cathedral
City
Springs <�—
�`.
-■c Coachella

CALIFORNIA

FIGURE 6-10. PERCENT OF CHILDREN IN MARRIED COUPLE HOUSEH OLDS - COUNTYWIDE Legend
City of Indian Wells
r =I County Boundary
Percent of Children in Married -C ouple
Households
▪ > 80%
▪ 60% - 80%
▪ 40% - 60%
20% - 40%
< 20%
No Data
San Jacin to
Perris
Hemet
Canyon Menifee
Lake
Lake Elsinore
2% 5
M iles
Banning

SAN BERNARDINO COUNT
Desert
Springs
Cathedral
City
Palm Springs
Rancho
Mirage
RIVERSIDE COUNTY Palm Desert

SAN DIEGO COUNT
I ndian
Wells
Indio
La Quinta
Coachella
GENER AL PLAN 2040

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Housing Element Background Report 1 Page BR -120
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FIGURE 6-11: FEMALE -HEADED HOUSEHOLDS BY PROPORTION OF CHILDREN PRESENT Legend
1-1 City of Indian Wells
_, Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Children in Female -
Headed Household in which No
Spouse or Partner Present is
Present
80%
-N4NNG��Oti
O
—
r-

INDIAN WELLS
I I
�; __♦ ♦ 1
1•
• I
♦ 1 1
1 ♦ I I
1 %
♦: 1 1 1
11 Miles�
Sources: AFFHbata and Mapping Resources. California Department of Housing and Community. Development, FamilyStatus Tract 2015 t9.' Map date: May p, 2022.

W
S
.♦
•
•
L
GENERAL PLAN 7040
0 INDIAN WELLS
422

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Housing Element Background Report 1 Page BR -122
423

FIGURE 6-12: FEMALE -HEADED HOUSEHOLDS BY PROPORTION OF CHILDREN PRESENT - COUNTYWIDE Ri
Legend
ri City of Indian Wells
r=1 County Boundary
Percent of Children in Female -
Headed Household in which No
Spouse or Partner Present is
Present
80%
No Data
Perris
yon Menifee
Lake
Elsinore
Wildomar
Murrieta
111111
Temecula
1 0 2% 5
Miles
sa
Beaumont
San Jacinto
Hemet
r

SAN BERNARDINO COUNTY
Banning
1 Desert Hot
Springs
Palm Springs

RIVERSIDE COUNTY
0 SAN DIEGO COUNTY
La Quinta
Coachella
GENERAL PLAN 2040
0 INDIAN WELLS

CALIFORNIA
Dr N..... Pl•un1..g . ..1
Sources: AFFH Data and Mapping Resources, California Department of Housing and Community Development, "FamilyStatus_Tract_2015_19." Map date: May 13, 2022.
424

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Housing Element Background Report 1 Page BR -124
425

FIGURE 6-13: PROPORTION OF SENIOR RESIDENTS BY CENSUS TRACT Legend
L _ 1 City of Indian Wells
;111: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Population At or Over Age 65
30%
No Data
Miles
',sus Bureau's American Community Survey (ACS) 2015-2019 5 -year estimates, Table(s) 501001.

43. 2022.
404,x,
r

INDIAN WELLS
•
GENERAL PLAN 2040

INDIAN WELLS
O
MEM

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Housing Element Background Report 1 Page BR -126
427

FIGURE 6-14: PROPORTION OF SENIOR RESIDENTS BY CENSUS TRACT - COUNTYWIDE Legend
ri City of Indian Wells
r=1 County Boundary
Percent of Population At or Over Age 65
30%
No Data
5 Miles

SAN BERNARDINO COUNTY
Desert Hot
Springs

RIVERSIDE COUNTY

CALIFORNIA

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Housing Element Background Report 1 Page BR -128
429

FIGURE 6-15: MEDIAN HOUSEHOLD INCOME BY BLOCK GROUP
Legend
1_1 City of Indian Wells
Other Incorporated Area
Housing Element Site
O Site A
O Site B
Median Income by Block Group
$125,000
No Data
$87,100 is the HCD State Median Income
0 Miles
bats and Mapping Resources. California I
!3, 2022.
epartment of Housi

INDIAN WELLS
GENERAL PLAN 7040

I NDIAN WELLS

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Housing Element Background Report 1 Page BR 130
431

FIGURE 6-16: MEDIAN HOUSEHOLD INCOME BY BLOCK GROUP - COUNTYWIDE Legend
R,
ri City of Indian Wells
r:i County Boundary
Median Income by Block Group
$125,000
No Data
' $87,100 is the HCD State Median Income
Perris
gra
Canyon Menifee
Lak 1��•�
112
OAt
Elsino �W
Wil r
_4,4
0 22 5
Miles
Sour*:
sa
r
Beaumont
San Jacinto
Hemet

SAN BERNARDINO COUNTY
Banning
Desert Hot
Springs
Cathedral
City
Palm Springs

RIVERSIDE COUNTY

SAN DIEGO COUNTY
I epadmeaiousing and Community Development."Medianlncome_BlockGrp2015_19." Rancho
Mirage
Palm Desert
Indian
Wells
La Quinta
Coachella
GENERAL PLAN 2040

INDIAN WELLS Y

CALIFORNIA
;432

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Housing Element Background Report 1 Page BR -132
433

FIGURE 6-17: VERY LOW AND LOW INCOME POPULATION
Legend
L .1 City of Indian Wells
;111; Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percentage of Very Low and Low
Income Population*
75%
HUD's glow income group data reflects
households barning up to 50% of AMI, which
equates to the State's definition for the very low
income group. HUD's moderate income group
data reflects households earning more than 50%
and up to 90% of AMI, which equates to the
State's definiton for the low income group.
0 Y 1
Miles
H beta and Mapping Resources, California
13, 2022.
1 1 1
O ,
•
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INDIAN WELLS J
e
,
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1 I
1 1 1
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1 GENERAL PLAN 2040
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➢ N D!AN WELLS

CALIFORNIA
O. s..,.. pl. o ug 4n.ap
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■■■

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Housing Element Background Report 1 Page BR -134
435

FIGURE 6-18: VERY LOW AND LOW INCOME POPULATION - COUNTYWIDE R
■
Legend
r i City of Indian Wells
r=1 County Boundary
Percentage of Very Low and Low
Income Population*
75%
low income group data reflects
yvd'Oing up to 50% of AMI, which
equates t pitate's definition for the very low
income grdu HUD's moderate income group
data reflects households earning more than 50%
and u. to 80% of AMI hich equates to the
for income gro
Canyon Menifee
Lake
e Elsinore
Wildomar
Murrieta
D 2'/ 5
Miles
Temecula
sa
Beaumont
r

SAN BERNARDINO COUNTY
Bann t i
011
Hot AA
gs
Palm firing,

RIVERSIDE COUNTY

SAN DIEGO COUNT
Rancho
Mirage
Palm Desert
Indian w w.

Wells
La Quinta
GENERAL PLAN 2040

CALIFORNIA
U. ♦..... Plauo ug .r."1. L.■■■

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Housing Element Background Report 1 Page BR -136
437

FIGURE 6-19: ETHNICITY ANALYSIS - RACIAL CONCENTRATIONS •
Legend
1-1 City of Indian Wells
;111; Other Incorporated Area
Housing Element Site
O Site A
O Site B
Hispanic Majority by Dominance
Slim (gap 50%)
White Majority by Dominance
Slim (gap 50%)
Miles
•
•
G��Oti
9C/F/C'

INDIAN WELLS
• -r—
•
and Community Development,PredominantPop_AfricanAmericanMajority." "Predomina "PredominantPop_WhiteMajority". Map date: May 13, 2022, 0 0
•
1 --
•
• ,1
•
•
•
•
•
•
• -
•
•
GENERAL PLAN 2040

INDIAN WELLS

CALIFORNIA
•0,. " u 1'

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element This page intentionally left blank.

Housing Element Background Report 1 Page BR -138
439

FIGURE 6-20: ETHNICITY ANALYSIS - RACIAL CONCENTRATIONS - COUNTYWIDE •
1 R
Legend
▪ City of Indian Wells
=I County Boundary
Hispanic Majority by Dominance
Slim (gap 50%)
White Majority by Dominance
Slim (gap 50%)
anyon Menifee
Lake
e Elsinore
Wildomar
Murrieta
iri&AvAgieri
Temecula
,6"111"*161
sa
r
Banning

SAN BERNARDINO COUNTY
1 ultip
Desert Hot
Springs
Cathedral
City
Palm Springsj616
ili RMiraganch
e

RIVERSIDE

SAN DIEGO COUNTY
COUNTY
0 21 5
Miles
[liAfa and Mapping Resources. California Department of Housing and Community Development,'PredominanfPop_AfricanAmericanMajority," "PredominantPop_AsianMajority," '7redon-, ...:Yop_HispanicMajority","PredorninantPop_NativeAmericanMajooty" "PredominantPop_WhiteMajority"Map date: May 13, 2022.

Palm Desert
AEU
GENERAL PLAN 2040

INDIAN WELLS Y

CALIFORNIA
Or sot"Plauoiug r.roo �. �.■■■

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Housing Element Background Report 1 Page BR 140
441

FIGURE 6-21: TCAC ECONOMIC SCORE BY CENSUS TRACT
Legend
1-1 City of Indian Wells
Other Incorporated Area
Housing Element Site
O Site A
O Site B
TCAC Economic Score
> 0.75 (More Positive Economic Outcome)

0.50 - 0.75

0.25 - 0.50
< 0.25 (Less Positive Economic Outcome)
Miles
-•
•
1—r—
r-
•
i
.
1 1

INDIAN WELLS
:ng and Community Development. "TCAC OpportunityAreas_Tract 2021." 0 \
•
1 I •I
GENERAL PLAN 2040
0 INDIAN WELLS

CALIFORNIA
' :'_... Plauoiu�t Group �u•uu

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Housing Element Background Report 1 Page BR -142
443

FIGURE 6-22: JOB PROXIMITY INDEX BY BLOCK GROUP
Legend
1-1 City of Indian Wells
;111: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Index Score
> 80 (Closest Proximity)

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Housing Element Background Report 1 Page BR -144
445

FIGURE 6-23: TCAC EDUCATION SCORE BY CENSUS TRACT
Legend
I-1 City of Indian Wells
Other Incorporated Area
Housing Element Site
O Site A
O Site B
TCAC Education Score
> 0.75 (More Positive Education Outcomes)

0.50 - 0.75

0.25 - 0.50
< 0.25 (Less Positive Education Outcomes)
AI
Miles
1--i—
r-
1 1
'"• • !
1 1
I
1 I
•1

INDIAN WELLS
'sirlg and Community Development. "TCAC OpportunityAreas_Tract 2021." 0 O 4��
•
Ns
e -.

GENERAL PLAN 2040
-

INDIAN WELLS
SEM
' 44(i

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Housing Element Background Report 1 Page BR -146
447

FIGURE 6-24: TCAC ENVIRONMENTAL SCORE BY CENSUS TRACT
•
Legend
1-1 City of Indian Wells
Other Incorporated Area
Housing Element Site
O Site A
O Site B
TCAC Environmental Score
< 0.75 (More Positive Environmental Outcomes)

0.50 - 0.75

0.25 - 0.50
<0.25 (Less Positive Environmental Outcomes)
1/4
Miles
beta and Mapping Resources, California,
3, 2022.

I _
1 1 -
1 1 1
--_.1 I_ _
L_, 0 4i

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INDIAN WELLS
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GENERAL PLAN 2040
2, 11..3
-, / A

INDIAN WELLS

CALIFORNIA
t.. ♦..... PI•uoiug Gr•• _AMEN
-r-

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Housing Element Background Report 1 Page BR -148
449

FIGURE 6-25: TCAC OPPORTUNITY AREAS BY CENSUS TRACT
Legend
1-1 City of Indian Wells
;111: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Opportunity Areas
Highest Resource
High Resource
Moderate Resource (Rapidly Changing)
Moderate Resource
Low Resource
High Segregation and Poverty
Miles
g and Community Development, "TCAC OpportunityAreas_Tract 2021." GENERAL PLAN 2040

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Housing Element Background Report 1 Page BR 150
451

FIGURE 6-26: OVERCROWDED HOUSEHOLDS
Legend
I —1 City of Indian Wells
;111; Other Incorporated Area
Housing Element Site
O Site A
O Site B
Overcrowded Households by
Census Tract
20%
v 1
Miles
Z.
.--r—
r-
I
'o

INDIAN WELLS
i•-- -♦ i 1
•
1 ♦ 1•
,
.1
•: . 1
11 GENERAL PLAN 2040
M.7

INDIAN WELLS
Sources: AFFH bata and Mapping Resources. California Department of Housing and Community Development, "OvercrowdedHouseholds_Tract,"and"OvercrowdedHouseholds_S9✓ere_Tract." Map date: May (3, 2022.

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Housing Element Background Report 1 Page BR -152
453

FIGURE 6-27: OVERCROWDED HOUSEHOLDS - COUNTYWIDE
Legend
r� City of Indian Wells
r:i County Boundary
Severely Overcrowded Households
by Census Tract
65%
Overcrowded Households by
Census Tract
20%
1 Menifee
Wildomar
Murrieta
Temecula
GENERAL PLAN 2040
2% 5
Miles
San
cinto
Hemet
r
Beaumont
Banning

SAN BERNARDINO COUNTY
Desert
Hot Springs
Palm
Springs

RIVERSIDE COUNTY

SAN DIEGO COUNTY
Cathedral
City
Rancho
Mirage palm
Desert
Indian
Wells
Indio
La Quinta
Coachella
INDIAN

CALIFORNIA
Or N.,.., Plaun.ug Group
"��
WELLS
/
Sources. ,=H Data and Ma! i .

Map date. May 13, 2022.
ty Development, "OvercrowdedHouseholds_Tract,"and"OvercrowdedHouseholds_Severe_Tract."

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Housing Element Background Report 1 Page BR -154
455

FIGURE 6-28: COST -BURDENED RENTER HOUSEHOLDS BY CENSUS TRACT Legend
1-1 City of Indian Wells
_, Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Renter Households for
whom Gross Rent (Contract Rent
Plus Tenant -Paid Utilities) is 30% or
More of Household Income
80%
0 Miles
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:; - -•
•
•
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r-
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INDIAN WELLS
GENERAL PLAN 2040

INDIAN WELLS
a
.ng and Community Development, "Overpayment Tract_2015-19." SEM

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Housing Element Background Report 1 Page BR -156
457

FIGURE 6-29: COST -BURDENED OWNER HOUSEHOLDS BY CENSUS TRACT Legend
1-1 City of Indian Wells
;:11: Other Incorporated Area
Housing Element Site
O Site A
O Site B
Percent of Owner Households with
Mortgages whose Monthly Owner
Costs are 30% or More of Household
Income
80%
Miles
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•
•
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•
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GENERAL PLAN 2040

INDIAN WELLS

CALIFORNIA
- TIM=
• 458

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Housing Element Background Report 1 Page BR -158
459

FIGURE 6-30: COST -BURDENED RENTER HOUSEHOLDS BY CENSUS TRACT - COUNTYWIDE r
Banning
Legend
ri City of Indian Wells
r=1 County Boundary
Percent of Renter Households for
whom Gross Rent (Contract Rent
Plus Tenant -Paid Utilities) is 30% or
More of Household Income
80%
Perris
Canyon Menifee
Lake
e Elsinore
Wildomar
Murrieta
Temecula
rsa
Beaumont
San Jacinto
Hemet r

SAN BERNARDINO COUNTY
Cathedral
City
Palm Springs

RIVERSIDE COUNTY

SAN DIEGO COUNTY
Rancho
Mirage
Palm Desert
Indian
Wells
La Quinta
Coachella

INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element This page intentionally left blank.

Housing Element Background Report 1 Page BR -160
461

FIGURE 6-31: COST -BURDENED OWNER HOUSEHOLDS BY CENSUS TRACT - COUNTYWIDE Legend
I In
R
sa
r
r� City of Indian Wells
r=1 County Boundary
Percent of Owner Households with
Mortgages whose Monthly Owner
Costs are 30% or More of Household
Income
80%
No Data
Murrieta
0 2Y 5
Miles
Temecula

SAN BERNARDINO COUNTY
Banning
Desert Hot
Springs
Palm Springs
Cathedral
City
me

RIVERSIDE COUNTY

SAN DIEGO COUNT
-m ty Development. "Overpayment Tract_2015-19."
La Quinta
a
Coachella
GENERAL PLAN 2040
j

INDIAN W-ELLSY
62 INDIAN WELLS City of Indian Wells 2021-2029 Final Draft Housing Element This page intentionally left blank.

Housing Element Background Report 1 Page BR -162
463

FIGURE 6-32. SENSITIVE COMMUNITIES
Legend
1-1 City of Indian Wells
_ _; Other Incorporated Area
Housing Element Site
O Site A
O Site B
Sensitive Communities
Vulnerable to Displacement
Other
r:
r
- - — s +
1 1
•
• `I
•_ , 1
a
1 1
1 1 — - -S
I I 1
1 1 I

L-------
I • '
1 • •
•
- '
1 a
mar

INDIAN WELLS
Miles
Bata and Mapping Resources. California Department of Housing and Community Development,"SensitiveCommunities_UrbanDisplacementProjectTract." 43, 2022.
•
8 GENERAL PLAN 2040
1 •

INDIAN WELLS
CALl FI
464
SEM

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Housing Element Background Report 1 Page BR -164
465

GENERAL PLAN 2040

APPENDIX A

SITE INVENTORY

INDIAN WELLS
466

467

Please Start Here, Instructions in Cell A2,
Table in A3:B15 Form Fields
Site Inventory Forms must be submitted to
HCD for a housing element or amendment
adopted on or after January 1, 2021. The
following form is to be used for satisfying
this requirement. To submit the form,
complete the Excel spreadsheet and submit
to HCD at [email protected].

Please send the Excel workbook, not a
scanned or PDF copy of the tables.

General Information
Jurisidiction Name

INDIAN WELLS
Housing Element Cycle
6th
Contact Information
First Name
Jon
Last Name
Berg
Title
unity Development C
Email
[email protected]
Phone
(760) 346-2489
Mailing Address
Street Address
City
Zip Code
Drive
Indian Wells
92210
468

Table A: Housi ng Element Sites Inventory, Table Starts in Cell A2 zo nino Minimum enaParc el Size (A cre
una .o n am Digit ZIP Assessor Par cel Co ns olidat ed G en eral Pla n c Sites 0esi_nal nleurrent owed mils/acre Allowed units/xre) INDIAN WELLS 78000 IIET Y DARNER WAY

INDIAN WELLS

INDIAN WELLS
92210
613410039
De N ew,
us avawn ( nesatrud um Publicly -nw natl Sloe Statu s tls alSstl In LM La e Tws Plmnitg Lyele(s) LZ clr income C". Tot al La ac alone I ntormaeonx I n(om�a�onS Pen nn Pro, N at Used In Pew a uuu ne El ement
100 Prop°

Table B: Candidate Sites Identified to be Rezoned to Accommodate Shortfall Housing Need, Table Starts in Cell A2 Jurisdiction
Name
Site Address/intersecti on
Ass ess or Very Low- Moderate- Ab ove Type of Shortfall 5 Digit ZIP Corte Parcel Number I ncome Low-inc ome I ncome M oderat e - Incom e
Pr opos ed
Par cel Slae C urr ent Gener al Plan Curre Gen eral Pla n Proposed )Acre s) Design ation nt Zoni ng (GP) Zoni ng
Desig natio n
Minimum Des cription
D ensity Maximum T otal C apacity Vacant( of Existing Opti onal Opti onal OPS enai Allowetl De nsity Allowed N anvacant Uses I ntormatio nt Informati on2 I nform alio n3 INDIAN W ELLlMiles Mardi Warner Trail
INDIAN WEL.
92210
633360002
fi4
46 iT
Shortfall of Site s
Medium Doneiry Re aitlentialretlium Density Re s( Medium D ensi H ousing Oppor 0
201
24 128
Va cant
Vacant

Table C: Land Use, Table Starts in A2
Zoning Designation
(From Table A, Column G)
General Land Uses Allowed
Single-family detached homes, cluster
developments, and attached units

21.12.020 Land use categories
Medium Density Residential
471

GENERAL PLAN 2040

APPENDIX B

PUBLIC ENGAGEMENT SUMMARY
-usf-rldrm

INDIAN WELLS
472

473

City of Indian Wells Housing
Element Update
November FebruaryMay 20221
In partnership with De Novo Planning Group
474

Table of Contents
Introduction 3
General Education and Advertisements 4
Project Website 5
Virtual Community Workshops 5
Stakeholder Meetings/Consultation 10
Public Review of Draft Housing Element 10
City of Indian Wells Housing Element Public Engagement Summary B-2
475

Introduction
The City of Indian Wells is updating its Housing Element as part of the 2021-2029 Housing Element Cycle (Cycle 6). Indian Wells is dedicated to meeting the future housing needs of its residents. The Housing Element Update process is a unique opportunity to connect with residents of Indian Wells and learn more about residents' values, priorities, concerns, and ideas.

The City's public engagement program for the Housing Element is directly connected to the City's ongoing effort to comprehensively update its General Plan, including the Housing Element. As part of this work effort, the community has had the opportunity to weigh-in on key issues related to land use planning and housing, including the evaluation of areas for focused future residential and nonresidential growth. The Housing Element is a part of the City's comprehensive General Plan Update and coordinated with the ongoing work on all General Plan topic areas. For more information related to the General Plan public engagement program, please see the project website at indianwells.generalplan.org.

Throughout the process, the City supported meaningful public engagement by sending direct advertisements, posting to social media, facilitating workshops, and sharing summaries of feedback to validate what we heard. Looking forward to the public review period of the Draft Housing Element, the City will continue to engage the community to seek feedback on the goals, policies, and programs included in the Housing Plan as well as input regarding key issues and challenges identified in the Background Report, including the City's plan to accommodate its fair share of future regional housing growth.

Indian Wells City CouncilJune 2, 2022

Indian Wells City Council
June 2, 2022