In addition, construction and skilled trades are critical areas where the business community needs more workers. The ongoing demand for residential and commercial development in Palm Springs requires a skilled workforce in fields such as carpentry, plumbing, electrical work, and general contracting. As the city continues to experience growth and development, it faces the challenge of attracting and retaining skilled laborers, many of whom may be drawn to larger metropolitan areas with higher wages or more opportunities (Palm Springs Housing Element, 2021).
Infrastructure Needs
In terms of infrastructure, Palm Springs faces several key needs that are vital to supporting the workforce and businesses in the area. One major concern is the transportation system, including roadways, public transit, and infrastructure that connects Palm Springs to neighboring regions.
Improved transportation options are necessary to support the workforce, especially for those who live outside the city but commute to Palm Springs for work. The lack of a comprehensive, affordable public transit system presents a barrier for many workers, particularly those in lower-income jobs who may not have access to reliable personal transportation (Palm Springs Housing Element, 2021).
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strong tourism and retail economy, but as more industries shift to digital platforms and remote work, the city must ensure that its infrastructure can meet the demands of both businesses and residents.
Expanding broadband infrastructure is vital to supporting the local economy and ensuring that businesses can stay competitive (U.S. Department of Commerce, 2021).
Additionally, utilities infrastructure, including water, electricity, and waste management, needs to be enhanced to support growing demand. Palm Springs is located in an arid region, so water conservation and management are critical to ensuring that the city’s infrastructure can sustain development.
Upgrades to utility systems will be necessary to accommodate new residential and commercial developments while ensuring that the city’s resources are used efficiently and sustainably (Palm Springs Housing Element, 2021).
Finally, affordable housing is a significant infrastructure need that ties directly to the workforce. The business community in Palm Springs relies on workers who can live locally, but the high cost of housing is pushing many potential employees to live outside the city and commute long distances. The city needs more affordable housing options, including both rental units and homeownership opportunities, to ensure that workers can live close to where they work. A shortage of affordable housing can lead to a workforce shortage, as employees may be unable to find affordable living spaces, further exacerbating challenges in recruitment and retention for local businesses (Palm Springs Housing Element, 2021).
Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create.
During the planning period, several key local and regional public and private sector investments and initiatives in Palm Springs are expected to significantly impact job and business growth opportunities.
These changes have the potential to drive economic development, create new jobs, and shape the workforce needs of the region. As these investments and initiatives unfold, there will also be a need for workforce development, business support, and infrastructure enhancements to fully realize their potential benefits.
Planned Developments and Investments
One of the most significant investments in the region is the ongoing infrastructure development aimed at enhancing Palm Springs’ transportation network. Planned improvements to roadways, public transit systems, and airport infrastructure are expected to have a major impact on economic activity. The Palm Springs International Airport (PSP) has seen growth in passenger traffic, and further investment in its expansion is anticipated to increase connectivity, boost tourism, and attract businesses to the area.
Enhanced air travel options will likely support growth in sectors such as hospitality, tourism, and logistics, leading to an increase in jobs in these industries (Palm Springs Housing Element, 2021).
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Additionally, large-scale residential and commercial developments are planned across Palm Springs, including new resort hotels, multi-family housing, and mixed-use developments. These projects are expected to create jobs in construction, retail, hospitality, and services. For example, the expansion of luxury resorts and conference centers will generate opportunities for jobs in hotel management, event planning, and tourism services. As these developments progress, the demand for construction workers, skilled trades, and professionals in project management and architecture will rise (Palm Springs Housing Element, 2021).
Economic Impact of Healthcare and Senior Services Expansion Another major initiative is the expansion of healthcare services to meet the growing demand from an aging population. Palm Springs is seeing increased investment in healthcare infrastructure, with the Desert Healthcare District focusing on expanding its medical services and facilities. This includes upgrades to existing hospitals and the construction of new senior care facilities. The demand for healthcare professionals, such as nurses, doctors, and mental health specialists, is expected to grow, which could create a substantial increase in employment opportunities within the healthcare and social services sectors (Desert Healthcare District, 2021).
The growth of the aging population and an increasing number of retirees moving to the area further accentuates the need for healthcare and senior services. This shift not only demands more healthcare workers but also the development of supportive services for seniors, including home care providers, physical therapists, and mental health counselors. The economic impact of these investments will extend beyond healthcare, as new job opportunities in supporting industries such as transportation and personal care services will also be created.
Regional Investments and Tourism Growth
Palm Springs’ reputation as a tourist destination continues to grow, and with this growth comes significant investment in tourism-related infrastructure. This includes major investments in arts and entertainment venues, resorts, and retail establishments. Palm Springs is also focusing on revitalizing its downtown area and surrounding neighborhoods to further enhance its appeal to both residents and tourists. Investments in arts and cultural projects, as well as event spaces for large conferences and festivals, are expected to generate increased employment opportunities in sectors such as event planning, hospitality, entertainment, and customer service.
The region’s increasing focus on sustainable tourism and eco-friendly resorts may create opportunities for new business ventures in the green economy, including sustainable construction, renewable energy, and environmental services. Palm Springs’ growing appeal as a destination for both luxury tourists and eco-conscious travelers will likely drive job growth in these sectors (Palm Springs Housing Element, 2021).
Workforce Development and Business Support Needs
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As these investments unfold, there will be an increased need for workforce development to ensure that the local labor force is equipped with the skills necessary to meet the demands of the growing industries. Specifically, there will be a need for training programs in areas such as healthcare, tourism and hospitality management, construction trades, and technology. Vocational training and certification programs focused on healthcare, hospitality, and construction will be crucial to preparing workers for new job opportunities. Additionally, workforce development efforts should focus on soft skills training, such as customer service, communication, and management skills, to support the local tourism and retail industries (California Employment Development Department, 2021).
With the increase in new businesses, business support services will also be essential. These services can include entrepreneurial training, small business support programs, and financing opportunities for startups and growing businesses. Palm Springs should look to invest in creating business incubators or accelerators that foster innovation and support the growth of local businesses, particularly in emerging sectors such as technology, sustainable development, and arts and entertainment (U.S. Small Business Administration, 2021).
Infrastructure Needs
To accommodate the anticipated growth, infrastructure improvements will be critical. As mentioned earlier, transportation infrastructure such as roads, public transit, and airport expansion will play a key role in supporting new business growth and facilitating employee commuting. Palm Springs will need to focus on enhancing public transit options, especially for low-income workers, and improving connections to neighboring cities and regional markets. Furthermore, the city will need to continue expanding internet connectivity and broadband infrastructure to support the growing demand for digital services, particularly in industries like technology and remote work (U.S. Department of Commerce, 2021).
How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction?
The skills and education of the current workforce in Palm Springs have a significant impact on the availability and success of employment opportunities in the jurisdiction. Palm Springs has a diverse economy with a strong focus on tourism, healthcare, construction, and service industries. While there are ample opportunities in these sectors, the alignment of the local workforce's skills and education with the demands of these industries is a critical factor in both the growth of the local economy and the ability of residents to secure stable, well-paying jobs.
Tourism and Hospitality Sector
Palm Springs is a popular tourist destination, which makes tourism and hospitality a major contributor to the local economy. This sector requires workers with a range of skills, from entry-level customer service roles to managerial positions in hotel and event management. The current workforce in Palm Springs has a high concentration of service workers, particularly in roles such as housekeeping, food service, and Item 2A - Page 134
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retail, which are often filled by workers with high school diplomas or less. However, there is a growing need for workers with more advanced skills in hospitality management, event coordination, and marketing, as well as expertise in managing resort and hotel operations (Palm Springs Housing Element, 2021).
While the city’s current workforce fills many of the entry-level positions, there is a gap in terms of highly skilled workers who can manage higher-level responsibilities, such as hotel management, tourism marketing, and conference planning. This discrepancy indicates a need for vocational training and certification programs focused on hospitality management, customer service, and event coordination.
Additionally, investing in programs to enhance leadership skills for those already employed in the tourism sector could help promote local workers into managerial roles, ensuring that Palm Springs remains competitive in attracting high-end tourism and large-scale events (Palm Springs Housing Element, 2021).
Healthcare Sector
Palm Springs has a growing elderly population, which contributes to a strong demand for healthcare services, particularly in nursing care, mental health, and senior living facilities. The current workforce in healthcare is relatively well-equipped to handle general needs, but the city faces a shortage of healthcare professionals, particularly specialized medical workers and those with advanced degrees, such as doctors, nurses, physical therapists, and mental health professionals. These roles typically require higher levels of education, including college degrees and medical certifications (Desert Healthcare District, 2021).
To meet the demand for healthcare workers, particularly in specialized fields, Palm Springs would benefit from programs that promote medical education and certification. This could include support for local nursing programs, continuing education for healthcare professionals, and internship opportunities that allow workers to gain the experience needed for higher-level positions. Furthermore, there is an opportunity to build a stronger pipeline of geriatric care specialists and mental health professionals, addressing both the aging population and the rising mental health challenges in the community (Desert Healthcare District, 2021).
Construction and Skilled Trades
The construction industry is another significant employment sector in Palm Springs, driven by ongoing residential and commercial development. The city has an ample supply of workers for general labor and basic construction roles; however, the demand for skilled trades, such as electricians, plumbers, carpenters, and mechanical engineers, is growing. These specialized jobs require higher levels of technical training and certification that may not always be available within the current workforce (Palm Springs Housing Element, 2021).
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institutions could create opportunities for workforce development in the construction sector. This would not only help meet the demand for skilled labor but also provide opportunities for residents to enter well-paying, sustainable careers that are in high demand (Palm Springs Housing Element, 2021).
Professional Services and Technology
Palm Springs has a smaller but growing professional services sector, including legal services, consulting, financial services, and technology. While there is a pool of educated workers, many of them are employed in lower-wage, service-oriented positions. There is potential for workforce development programs to help workers transition into higher-paying, professional careers. Additionally, the technology sector is expected to grow, particularly in fields related to digital marketing, software development, and IT support.
The current workforce may not be sufficiently prepared for these higher-tech roles, which require specialized knowledge and skills in computer science, digital literacy, and data analysis. Offering technology training programs, including coding boot camps and certification courses, could provide workers with the skills needed to transition into this rapidly expanding field (California Employment Development Department, 2021).
Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges, and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan.
In Palm Springs, there are several workforce training initiatives designed to improve employment opportunities for local residents and meet the needs of employers across various sectors. These initiatives, supported by Workforce Investment Boards, community colleges, and other organizations, aim to address skills gaps, enhance job readiness, and ensure that the local workforce is prepared for emerging opportunities in key sectors such as healthcare, construction, hospitality, and technology.
Workforce Investment Boards and Local Workforce Development The Riverside County Workforce Development Board (RCWDB) plays a central role in coordinating workforce training efforts across the region, including Palm Springs. The RCWDB provides job training, career services, and access to Workforce Innovation and Opportunity Act (WIOA) funding, which supports a wide range of workforce development programs. This includes programs that provide skills training, job placement services, and retraining opportunities for individuals facing unemployment or underemployment.
One key program supported by the RCWDB is the Dislocated Worker Program, which assists individuals who have lost their jobs due to business closures, layoffs, or economic shifts. This program offers career counseling, job search assistance, and retraining in new industries, providing displaced workers with the tools needed to transition into new career paths. Additionally, the Youth Employment Program provides job readiness training, career exploration, and paid internships for young people, helping them build Item 2A - Page 136
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skills and gain work experience that will be valuable in the job market (Riverside County Workforce Development, 2021).
These workforce development initiatives align with the goals outlined in Palm Springs' Consolidated Plan by addressing the need for a trained and capable workforce that can support the region’s growing industries. As the city seeks to expand sectors like healthcare, construction, and technology, these programs help ensure that residents have the necessary skills to meet the demands of emerging job opportunities and fill key roles in the local economy.
Community Colleges and Technical Training
Palm Springs is served by several community colleges and technical institutions that provide specialized workforce training programs. College of the Desert (COD), located nearby in Palm Desert, offers a variety of vocational and technical training programs designed to meet the needs of both local employers and the workforce. COD’s programs in healthcare, information technology, and skilled trades are particularly relevant to the needs of Palm Springs, where demand for healthcare workers, construction laborers, and IT professionals is on the rise. Programs such as nursing assistant certifications, pharmacy technician training, construction management courses, and computer science certifications are all critical for providing residents with the skills necessary to fill in-demand positions in the local economy (College of the Desert, 2021).
Additionally, COD’s Career Pathways Program offers support for students in need of career counseling, internships, and job placement services, helping them successfully transition from education to employment. These efforts support the Consolidated Plan's focus on economic development and job creation by ensuring that local workers are equipped with the skills required by employers in the region.
Through its workforce training programs, COD contributes directly to addressing the skills gaps in industries such as healthcare, construction, and technology, all of which are critical to Palm Springs’ economic growth and sustainability.
Partnerships with Local Employers and Industry-Specific Training Palm Springs also benefits from partnerships between workforce development programs and local employers, particularly in the hospitality, construction, and healthcare sectors. The Coachella Valley Economic Partnership (CVEP) works closely with employers to develop industry-specific training initiatives that align with workforce needs. These collaborations often include on-the-job training, internship opportunities, and tailored training programs designed to meet the specific skills required by employers in the region. For instance, CVEP’s Hospitality Training Program provides training in customer service, hotel management, and event planning, which directly supports the tourism and hospitality sectors in Palm Springs.
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programs that help workers gain the specialized skills needed for high-demand construction jobs in the region (CVEP, 2021).
These training efforts align with Palm Springs' Consolidated Plan by supporting economic stability and workforce readiness, particularly in sectors critical to the city’s growth. The alignment of training with local industry needs helps ensure that workers are prepared for available jobs and employers can find qualified candidates to support their operations.
Support for Vulnerable Populations
In addition to broad workforce development initiatives, specific programs focus on vulnerable populations within Palm Springs, including low-income workers, disadvantaged youth, and persons with disabilities. The Workforce Innovation and Opportunity Act (WIOA) supports targeted programs that provide job training and career development services for these populations, ensuring that they have access to the resources they need to overcome barriers to employment. These programs can be critical in helping residents who may face additional challenges, such as lack of education, childcare, or transportation, to enter and succeed in the workforce (Riverside County Workforce Development, 2021).
Discussion
The analysis of Non-Housing Community Development Assets in Palm Springs examines the key assets and resources that play a crucial role in the city's economic growth, quality of life, and community well- being. These assets include public facilities, infrastructure, and services that are critical for the functioning and sustainability of the city, contributing to overall community development and economic opportunities for its residents. By evaluating these assets, the city can identify areas for investment, improvement, and expansion to support long-term community and economic goals.
Public Facilities and Social Services
Palm Springs benefits from a variety of public facilities that support both its residents and visitors. These include community centers, parks, libraries, and cultural institutions such as museums and theaters.
These facilities not only serve as spaces for leisure and recreation but also provide critical social services, including youth programs, senior services, and employment assistance programs. They help build community cohesion, promote social inclusion, and enhance the overall quality of life for residents, especially those in underserved or vulnerable populations.
Social services in Palm Springs play a vital role in providing support for low-income individuals, families, and vulnerable groups. These services include access to food assistance, mental health services, substance abuse counseling, and employment training programs. Public and private sector partnerships, such as those with local nonprofits and community organizations, are crucial for expanding the reach and impact of these services, ensuring that all residents, particularly those facing economic hardship, have the support they need to thrive (Palm Springs Housing Element, 2021).
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Transportation and Infrastructure
The transportation infrastructure in Palm Springs plays a central role in enabling residents and visitors to move efficiently throughout the city and the region. While Palm Springs is well-served by major highways and public transit, there is still a need for improvements in transit options, especially for low- income workers and those without access to personal vehicles. Expanding and improving public transportation options, including buses and potential light rail connections, would help reduce traffic congestion, enhance access to jobs, and reduce the economic burden on those who rely on public transit (Palm Springs Housing Element, 2021).
Further, broadband infrastructure is another key asset that is becoming increasingly important in Palm Springs. As more businesses and services transition online, access to high-speed internet is crucial for both economic and educational success. Investments in expanding broadband infrastructure will help the city remain competitive and ensure that all residents have the opportunity to access essential services, including online education, job applications, and telemedicine (U.S. Department of Commerce, 2021).
Economic Development Assets
Palm Springs is known for its vibrant tourism and hospitality industry, which is a primary driver of the local economy. The city has made strategic investments in tourism infrastructure, including the Palm Springs International Airport and hotel development projects, to increase its appeal as a tourist destination. These assets have created significant job opportunities, particularly in the hospitality and service industries, but also in sectors such as construction and retail. However, it is important for Palm Springs to continue diversifying its economic base to reduce reliance on tourism and create more opportunities in other sectors like technology, manufacturing, and healthcare (Palm Springs Housing Element, 2021).
The Coachella Valley Economic Partnership (CVEP) is an essential regional resource supporting economic development. Through partnerships with local businesses, educational institutions, and government agencies, CVEP works to promote job creation, entrepreneurship, and business expansion in the region.
By supporting workforce training initiatives, assisting small businesses, and facilitating access to funding, CVEP plays a crucial role in ensuring that the Palm Springs economy remains resilient and adaptable to changing market conditions (CVEP, 2021).
Housing and Community Development
While housing is a significant focus of the Consolidated Plan, the broader concept of community development includes ensuring that the infrastructure and services needed to support residents are in place. The city’s affordable housing development efforts must be paired with investments in the physical and social infrastructure that will allow neighborhoods to thrive. This includes parks, recreational facilities, and public spaces that promote community engagement and well-being. Ensuring that housing Item 2A - Page 139
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and community development are integrated is essential for building inclusive, thriving neighborhoods (Palm Springs Housing Element, 2021).
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MA-50 Needs and Market Analysis Discussion
Are there areas where households with multiple housing problems are concentrated? In Palm Springs, certain areas are particularly affected by multiple housing problems, with households experiencing a combination of high housing costs, substandard living conditions, and overcrowding.
These issues are most prevalent in neighborhoods where affordable housing is scarce, especially in older areas with outdated housing stock. Many residents, particularly low-income families, are forced to spend a significant portion of their income on housing, resulting in cost burdens that leave little room for other necessities such as healthcare, food, and transportation. According to Table 13 – Disproportionally Greater Need 0 - 30% AMI from the Needs Assessment (NA-15), 11,345 households in Palm Springs experience one or more housing problems, including high housing costs, which is a common issue in areas with high cost burdens. These households are unable to afford more appropriate housing, often living in overcrowded or substandard conditions (Palm Springs Housing Element, 2021).
Substandard housing is also a significant issue, particularly in these low-income neighborhoods. These homes may lack complete plumbing or kitchen facilities, or have structural issues that make them unsafe or uncomfortable. In Table 17 – Severe Housing Problems 0 - 30% AMI, the data shows that a significant proportion of households with incomes at or below 30% AMI also face severe housing problems, including homes with plumbing or structural deficiencies. These issues are compounded by overcrowding, which is a prevalent problem in Palm Springs. Table 15 – Disproportionally Greater Need 50 - 80% AMI reveals that for households in the 50%-80% AMI range, overcrowding continues to be an issue, affecting more than 3,600 households in Palm Springs. Many larger families or low-income renters are forced into living situations that exceed the safe occupancy limits of their homes due to the lack of affordable housing options (Palm Springs Housing Element, 2021).
Overcrowding is most common in neighborhoods where larger families are unable to afford appropriately sized homes. These families are often pushed into smaller units, leading to poor living conditions. According to Table 18 – Severe Housing Problems 30 - 50% AMI, overcrowding impacts a significant percentage of households in this income group. These problems are compounded by the city's need for more affordable housing options that can meet the demands of larger families. The inability to afford multi-bedroom units leads to overcrowded conditions, which in turn contribute to health risks and poor quality of life.
Vulnerable populations, such as seniors, people with disabilities, and large families, are disproportionately affected by these housing problems. Seniors often face challenges finding accessible housing, while people with disabilities require accommodations that may not be readily available in the market. As seen in Table 13 – Disproportionally Greater Need 0 - 30% AMI, the lack of accessible or affordable units for these groups leaves them in overcrowded, substandard living conditions. Large families face similar challenges, struggling to find homes with enough space for their needs, leading to overcrowding and insufficient living conditions (Palm Springs Housing Element, 2021).
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These housing challenges are particularly concentrated in neighborhoods with older housing stock and areas where the demand for affordable housing far outstrips the supply. Parts of downtown Palm Springs and older suburban neighborhoods are particularly affected, as they are home to lower-income renters and families who face barriers to finding well-maintained, affordable housing. As the city’s housing market is influenced by the tourist economy, rising housing costs and rents often force low- income households out of the market, further exacerbating the affordability crisis. This trend is highlighted in Table 16 – Disproportionally Greater Need 80 - 100% AMI, showing that higher-income households often have access to better housing options, but many lower-income households struggle to maintain stable housing due to the escalating cost of living (Palm Springs Housing Element, 2021).
In addition to these physical conditions, the combined effects of high housing costs, poor-quality housing, and overcrowding can lead to cycles of housing instability, especially for those in low-income communities. These residents often face compounded challenges in accessing healthcare, education, and employment, which can contribute to ongoing social inequality. The stress and health issues related to inadequate housing conditions further exacerbate their struggles. Addressing these challenges will require focused efforts on expanding affordable housing, improving housing quality, and providing supportive services to at-risk populations. By targeting areas with the highest concentrations of housing problems, Palm Springs can work to reduce housing instability and enhance the quality of life for its most vulnerable residents (Palm Springs Housing Element, 2021).
Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated?
In Palm Springs, certain areas are particularly affected by the concentration of racial and ethnic minorities and low-income families, especially in neighborhoods with older housing stock, limited affordable housing options, and high housing costs. Households with incomes at or below 30% of the Area Median Income (AMI) face the greatest challenges, including cost burdens and substandard housing conditions. According to Table 13 – Disproportionally Greater Need 0 - 30% AMI, 11,345 households in this income group experience at least one housing problem, such as high housing costs, overcrowding, or housing in poor condition. These households are often concentrated in areas with fewer affordable housing opportunities, contributing to ongoing housing instability. Additionally, households with incomes between 30% and 50% of AMI, as shown in Table 14 – Disproportionally Greater Need 30 - 50% AMI, are also impacted by housing issues such as overcrowding and cost burdens, with a disproportionate number of Hispanic households experiencing these challenges.
The Hispanic and Black/African American communities in Palm Springs are particularly overrepresented in these lower-income brackets and face more significant barriers in finding affordable and quality housing. Table 13 and Table 14 highlight that these groups are significantly affected by high housing costs and overcrowded conditions, often in neighborhoods where housing stock is older and in need of repair. The concentration of these communities in neighborhoods with limited affordable housing options exacerbates the challenges they face, and the lack of affordable units in these areas leads to continued overcrowding and substandard living conditions. Additionally, neighborhoods with higher Item 2A - Page 142
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concentrations of these populations often face a higher percentage of housing that does not meet basic standards, further contributing to housing instability.
Historically, racial and ethnic minorities in Palm Springs have been subject to discriminatory practices that have limited their access to homeownership and quality housing. These structural barriers have resulted in a concentration of these communities in lower-income areas, which are now experiencing higher levels of housing problems. The Consolidated Plan seeks to address these disparities by promoting fair housing practices, increasing affordable housing development, and ensuring that vulnerable populations have access to better housing opportunities. By focusing on neighborhoods with the highest concentrations of low-income and minority households, Palm Springs can work to alleviate housing instability and improve overall living conditions for its most vulnerable residents. Addressing these disparities will require increased investment in affordable housing and better access to quality, stable housing options for all residents (Palm Springs Housing Element, 2021).
What are the characteristics of the market in these areas/neighborhoods? The market in areas of Palm Springs where racial and ethnic minorities, as well as low-income families, are concentrated, is characterized by several key features that contribute to housing challenges and affordability issues. These neighborhoods often exhibit a combination of older housing stock, limited availability of affordable housing units, high housing costs relative to income, and overcrowding, which can create significant barriers to stable and decent living conditions for residents.
One of the main characteristics of the housing market in these areas is the prevalence of older housing stock. Many of the neighborhoods where low-income families and minority populations are concentrated were built several decades ago and are in need of significant repairs and upgrades. This older housing stock often does not meet modern standards for safety, accessibility, or energy efficiency, contributing to substandard living conditions. Homes in these areas are frequently lacking essential amenities such as updated plumbing or complete kitchen facilities. These conditions can force families to either accept subpar living situations or relocate to more affordable housing options, even if those units are overcrowded or in disrepair (Palm Springs Housing Element, 2021).
In addition to the age and condition of housing, affordability is a significant issue in these neighborhoods. Rent and home prices in Palm Springs have risen steadily, driven by both the city's desirability as a tourist destination and limited housing availability. As housing prices increase, lower- income families, particularly Hispanic and Black/African American households, find it increasingly difficult to afford decent homes. These communities are more likely to face cost burdens, where they spend a disproportionate amount of their income on housing. Table 13 – Disproportionally Greater Need 0 - 30% AMI shows that a substantial number of households in Palm Springs, especially those in the lowest income brackets, are spending more than 30% of their income on housing, which leaves them with fewer resources for other necessities like healthcare, education, and food (Palm Springs Housing Element, 2021).
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The lack of affordable housing options in these areas is exacerbated by the competition for available units. As higher-income residents seek housing in more desirable locations, the limited supply of affordable units often becomes more competitive, driving up rents and pushing out lower-income residents. The Hispanic population, in particular, is disproportionately affected by this trend. As indicated in Table 14 – Disproportionally Greater Need 30 - 50% AMI, a significant percentage of Hispanic households in this income bracket face housing problems, such as overcrowding and high cost burdens, which further limits their ability to find stable housing.
Another feature of the housing market in these areas is overcrowding. Larger families, especially those with lower incomes, often find themselves living in smaller homes than necessary due to the lack of affordable housing options. This leads to overcrowding, where multiple people are forced to share limited space, often leading to health and safety concerns. Overcrowding is particularly prevalent in neighborhoods where affordable multi-bedroom units are scarce, and families are left with few choices other than to endure cramped living conditions. Table 15 – Disproportionally Greater Need 50 - 80% AMI shows that overcrowding continues to be a challenge for many households in the 50%-80% AMI income range, contributing to housing instability and stress (Palm Springs Housing Element, 2021).
Finally, the market in these neighborhoods often faces a lack of investment in neighborhood revitalization. Many of these areas, historically home to minority populations, have not seen the same level of investment in infrastructure and housing as more affluent neighborhoods. This can result in deteriorating conditions, both in housing quality and neighborhood amenities. Public infrastructure, including roads, public transport, and utilities, can be lacking in these areas, which adds to the challenges faced by residents. Without significant public and private investment, these neighborhoods continue to lag behind in terms of overall quality of life.
In summary, the market in neighborhoods with concentrated low-income families and racial or ethnic minorities in Palm Springs is shaped by outdated housing stock, rising housing costs, overcrowding, and limited affordable housing options. These characteristics make it difficult for many residents to find suitable, stable housing. Efforts to address these issues must focus on increasing affordable housing availability, improving the quality of existing housing, and ensuring that investments are made to revitalize these neighborhoods to improve living conditions for all residents (Palm Springs Housing Element, 2021).
Are there any community assets in these areas/neighborhoods? There are several community assets in the areas of Palm Springs where racial and ethnic minorities and low-income families are concentrated. These assets, although sometimes underutilized or in need of further investment, provide significant potential to improve the quality of life for residents and contribute to the development of vibrant, sustainable communities. These community assets include social services, public facilities, educational institutions, transportation access, and cultural resources, all of which can help meet the needs of local residents and support long-term community development.
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One of the key community assets in these neighborhoods is the presence of community centers and public facilities that serve as hubs for social services and recreational activities. These centers offer programs for children, seniors, and families, providing essential services such as after-school programs, nutrition assistance, and health education. They also offer a space for socialization and community- building, helping to strengthen ties among residents and create a sense of belonging. For example, the Palm Springs Senior Center provides a range of services for older residents, including social activities, health programs, and transportation assistance, helping seniors maintain their independence and engage with their community (Palm Springs Housing Element, 2021).
Additionally, these neighborhoods often have access to public parks and recreational spaces that contribute to residents' well-being. Parks provide safe places for outdoor activities, sports, and family gatherings, enhancing quality of life and offering opportunities for physical activity and recreation.
These spaces are important community assets, especially in areas with high concentrations of lower- income and minority households, as they provide a venue for relaxation and exercise, which can have positive mental and physical health benefits. The Demuth Park and Ruth Hardy Park are examples of public spaces in Palm Springs that are accessible to residents of all income levels and play a critical role in fostering community engagement and providing a respite from urban challenges (Palm Springs Housing Element, 2021).
In terms of educational resources, Palm Springs benefits from a number of schools and educational institutions that serve the local population, especially youth. The Palm Springs Unified School District operates a number of schools within these neighborhoods, offering primary and secondary education to children from diverse backgrounds. The presence of these schools helps ensure that children have access to education close to home, reducing barriers related to transportation and improving overall educational outcomes. Additionally, College of the Desert (COD), located nearby in Palm Desert, is a critical educational asset that provides higher education opportunities, vocational training, and job readiness programs for local residents. This institution plays a vital role in workforce development and helps bridge the skills gap for residents seeking employment in sectors like healthcare, technology, and skilled trades (College of the Desert, 2021).
Public transportation is another important community asset in these neighborhoods, offering residents access to key areas within the city and beyond. Public transit services such as the SunLine Transit Agency provide affordable transportation options for those who do not own cars, making it easier for low- income residents to access jobs, healthcare, schools, and essential services. However, improving the frequency and coverage of these services could further enhance accessibility, particularly in areas further from major transit routes or employment hubs. Expanding public transportation options would help connect residents to more job opportunities and alleviate some of the challenges associated with high housing costs and limited mobility (Palm Springs Housing Element, 2021).
Palm Springs is also home to rich cultural resources that are integral to the community’s identity.
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the local economy but also foster a sense of pride and connection among residents. Additionally, these cultural spaces offer programs that benefit the entire community, from after-school programs for children to workshops and exhibitions that promote local artists and cultural traditions. For many low- income families and minority communities, these cultural assets offer opportunities to participate in and celebrate local heritage, creating shared experiences and strengthening community ties (Palm Springs Housing Element, 2021).
Finally, nonprofit organizations play a vital role in providing social services and support for vulnerable populations in these neighborhoods. Organizations like Well in the Desert and the Desert AIDS Project offer critical services, including food assistance, healthcare, and housing support, for low-income individuals and families. These organizations help fill gaps in social services and offer a network of support for residents facing housing instability, health challenges, or financial hardship. By offering resources and advocacy, these nonprofits contribute to the overall well-being of the community and help reduce the barriers faced by marginalized populations (Desert AIDS Project, 2021).
Are there other strategic opportunities in any of these areas? Yes, there are several strategic opportunities in areas of Palm Springs where low-income families and racial or ethnic minorities are concentrated. These opportunities focus on leveraging existing community assets, addressing housing challenges, and creating pathways to long-term economic stability for residents. The strategic initiatives involve improving infrastructure, expanding housing options, enhancing educational and workforce development programs, and fostering community engagement.
By capitalizing on these opportunities, Palm Springs can improve the quality of life for its most vulnerable populations while supporting overall community growth.
One of the key strategic opportunities lies in revitalizing older neighborhoods with a combination of housing rehabilitation and new affordable housing development. Areas with aging housing stock, particularly those with high concentrations of low-income residents, could benefit from programs focused on housing repair and improvement. By improving existing homes, these neighborhoods can be made safer and more livable, reducing substandard housing conditions that contribute to overcrowding and instability. Additionally, incentivizing the development of affordable multifamily housing in these areas can help address the housing shortage, providing more options for families in need and alleviating the pressure on already crowded areas (Palm Springs Housing Element, 2021). This strategy could include public-private partnerships to increase affordable housing supply and revitalization efforts that focus on improving the quality of homes and neighborhood infrastructure.
Expanding public transportation is another strategic opportunity, especially in neighborhoods where residents rely on public transit to access jobs, healthcare, and essential services. Improving the reach and frequency of public transportation, particularly in areas that are further from major employment centers, would increase access to opportunities for low-income families and individuals. Additionally, enhancing transportation options for seniors and persons with disabilities in these neighborhoods could improve mobility and reduce isolation, ensuring that residents can easily reach medical appointments, Item 2A - Page 146
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community services, and other resources. By expanding public transit and connecting underserved areas to employment hubs, Palm Springs can create greater access to economic opportunities and improve overall neighborhood connectivity (Palm Springs Housing Element, 2021).
Another opportunity is to strengthen workforce development programs that directly address the skills gap in key sectors such as healthcare, construction, technology, and tourism. By aligning workforce training programs with the specific needs of local industries, Palm Springs can help residents develop the skills required for better-paying jobs in growing sectors. This could include creating vocational training centers, expanding partnerships with community colleges like College of the Desert, and providing apprenticeships and certification programs that equip individuals with the qualifications necessary to compete in the job market. In particular, focusing on high-demand fields like healthcare, construction, and technology will support both individual economic mobility and the city’s overall economic development (College of the Desert, 2021).
There is also an opportunity to enhance community engagement and resident leadership in these neighborhoods. By fostering stronger community ties and involving residents in decision-making processes, Palm Springs can ensure that neighborhood revitalization and community development efforts align with the needs and priorities of those most affected. This could include creating community advisory boards, supporting neighborhood associations, and organizing community events that encourage collaboration and active participation in shaping the future of these neighborhoods.
Empowering residents to take an active role in the planning and development of their communities will not only improve the effectiveness of development initiatives but also promote social cohesion and a sense of ownership within neighborhoods (Palm Springs Housing Element, 2021).
Cultural and tourism-based development offers another strategic opportunity. Given Palm Springs' reputation as a destination for arts, culture, and recreation, there is potential to further integrate cultural and arts programming into neighborhood development strategies. This could include creating spaces for local artists and cultural organizations in historically underinvested neighborhoods, supporting the growth of creative industries, and promoting arts education for young people.
Additionally, leveraging tourism and hospitality resources to provide jobs and business opportunities for local residents could help stimulate economic growth in these areas. By encouraging businesses to invest in these neighborhoods and hiring local talent, Palm Springs can ensure that the economic benefits of tourism are more widely distributed, creating opportunities for low-income families to thrive (Palm Springs Housing Element, 2021).
Finally, investing in community health infrastructure is a critical strategic opportunity, particularly for neighborhoods with high concentrations of vulnerable populations, such as seniors and people with disabilities. Expanding access to healthcare services, including mental health and preventive care, would significantly improve the well-being of residents. Integrating health and housing services through community health hubs that provide both housing assistance and medical services could address the intertwined challenges of housing instability and poor health. This approach could help reduce Item 2A - Page 147
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healthcare disparities, improve health outcomes, and prevent homelessness for vulnerable residents (Desert Healthcare District, 2021).
MA-60 Broadband Needs of Housing occupied by Low- and Moderate- Income Households - 91.210(a)(4), 91.310(a)(2)
Describe the need for broadband wiring and connections for households, including low- and moderate-income households and neighborhoods.
Access to broadband internet has become a critical necessity for households, especially in low- and moderate-income neighborhoods. In Palm Springs, many households face barriers to affordable and reliable broadband connections, which can significantly impact their access to essential services such as education, healthcare, job opportunities, and civic engagement. The need for broadband wiring and connections in these communities is a significant concern, particularly in areas with high concentrations of low- and moderate-income residents.
Many low-income households in Palm Springs do not have access to affordable broadband options, which hinders their ability to fully participate in the digital economy and access important resources.
This issue is exacerbated by the fact that broadband infrastructure is often concentrated in higher- income areas, leaving underserved communities without sufficient access to high-speed internet.
Without reliable broadband connections, families face difficulties in accessing online educational resources, telehealth services, remote work opportunities, and other essential services that have become increasingly important, especially during the COVID-19 pandemic.
Additionally, many low-income households rely on public Wi-Fi in libraries, community centers, or other public spaces, but these options are not always sufficient or reliable. In some neighborhoods, broadband wiring is either outdated or nonexistent, creating a digital divide that deepens inequalities and limits opportunities for economic and educational advancement.
To address these disparities, Palm Springs recognizes the need to invest in expanding broadband access to low- and moderate-income households and neighborhoods. The city is committed to working with local utility providers, federal and state agencies, and private sector partners to enhance broadband infrastructure in underserved areas. This could include efforts to build out fiber optic networks, provide affordable internet plans, and ensure that low-income residents can access broadband services at affordable rates.
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The city is also exploring opportunities to integrate broadband infrastructure development into new affordable housing projects and community development initiatives. By providing universal broadband access, Palm Springs aims to ensure that all residents, regardless of income, can fully participate in the digital world, thereby improving educational outcomes, workforce participation, and overall quality of life.
Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction.
The need for increased competition in the broadband internet service provider (ISP) market in Palm Springs is crucial for improving access, affordability, and the overall quality of service for residents, particularly in low- and moderate-income neighborhoods. Currently, many areas of Palm Springs are served by only one or two broadband providers, which limits consumer choice and keeps prices high.
This lack of competition in the broadband market not only affects service affordability but also impacts the speed, reliability, and customer service that residents experience.
Increased competition among ISPs would drive down prices for broadband services, making them more affordable for low- and moderate-income households. With more providers entering the market, residents would have more options to choose from, ensuring that they can find an internet plan that meets their budget and needs. This is especially important in Palm Springs, where a significant portion of the population relies on affordable internet for essential activities, including remote work, online education, healthcare services, and accessing government programs.
Moreover, increased competition would also encourage ISPs to improve the quality of their services.
When providers face competition, they are more likely to invest in infrastructure, increase network speeds, and enhance reliability to attract and retain customers. This would result in faster internet speeds and more consistent service, which is essential for residents who depend on the internet for daily tasks, such as working from home, streaming educational content, or accessing telemedicine services.
The lack of competition can also hinder the development of broadband infrastructure in underserved areas. In neighborhoods where only one ISP operates, there is less incentive for the provider to invest in expanding or upgrading the network to reach more households. By fostering a competitive market, Palm Springs can encourage providers to invest in broadband infrastructure in areas that are currently underserved or lack sufficient access, especially in low-income communities where broadband access is most critical.
Palm Springs can take several steps to increase competition in the broadband market. This includes exploring the possibility of incentivizing new ISPs to enter the market through subsidies or tax breaks, and encouraging infrastructure-sharing agreements between providers to expand coverage in underserved areas. Additionally, the city could work with state and federal governments to advocate for funding that supports broadband expansion in low-income and rural areas.
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What are the characteristics of the market in these areas/neighborhoods? The characteristics of the housing market in Palm Springs' neighborhoods with high concentrations of low- and moderate-income households, particularly those populated by racial and ethnic minorities, are shaped by a combination of affordability challenges, outdated housing infrastructure, and limited access to essential services such as broadband internet. These neighborhoods are often characterized by several key features that directly impact the quality of life and economic mobility for their residents.
One of the most defining features of the housing market in these areas is the prevalence of older housing stock. Many neighborhoods with concentrated low-income families were built several decades ago and have not seen significant investment in repairs or renovations. These homes often require substantial repairs to meet modern standards, including updated plumbing, electrical systems, and energy efficiency. As a result, the housing quality in these neighborhoods tends to be substandard, contributing to higher rates of overcrowding and housing instability. In particular, homes that were constructed before the 1980s are more likely to have physical deficiencies that affect the safety and comfort of residents (Palm Springs Housing Element, 2021).
In these communities, affordability is a critical issue. According to the Needs Assessment (NA), a large portion of the population is burdened by housing costs, often spending more than 30% of their income on rent or mortgage payments. Cost burden is particularly prevalent in neighborhoods with limited affordable housing options, forcing families to live in overcrowded conditions or substandard housing that they can afford. With limited resources for upgrades or repairs, many households are left with little choice but to live in spaces that do not meet their needs, both in terms of size and quality. Table 13 – Disproportionally Greater Need 0 - 30% AMI indicates that the majority of households in the lowest income brackets are struggling to meet basic housing costs, and as housing prices rise, these challenges are compounded (Palm Springs Housing Element, 2021).
The lack of affordable housing options in these neighborhoods is a significant characteristic of the market. There is limited availability of affordable multi-bedroom units that can accommodate larger families, which is especially problematic given the high concentration of families with children in these areas. As seen in Table 14 – Disproportionally Greater Need 30 - 50% AMI, families in the 30%-50% AMI range are also experiencing housing instability, which further contributes to overcrowding. With demand for affordable units exceeding supply, many families are forced to double up or live in smaller homes than needed, resulting in overcrowded living conditions (Palm Springs Housing Element, 2021).
Another characteristic of these areas is the prevalence of households that lack broadband access. In neighborhoods where low-income families are concentrated, broadband infrastructure is often outdated or insufficient, which exacerbates the digital divide. With the increasing reliance on the internet for educational purposes, job applications, and healthcare access, the lack of reliable internet access limits residents' ability to fully participate in the modern economy. This lack of connectivity is particularly impactful for youth who rely on the internet for schoolwork and learning resources, as well as for adults who need broadband for job searching, remote work, and accessing essential services.
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Expanding high-speed internet access to these underserved areas is a crucial need (Palm Springs Housing Element, 2021).
Furthermore, the market in these neighborhoods is often shaped by economic vulnerability and limited access to social services. While community centers and public services play a vital role in supporting residents, these areas may still lack the infrastructure and amenities found in more affluent parts of the city. Public services such as healthcare, childcare, and employment assistance may be underfunded or difficult to access, making it harder for residents to achieve economic mobility. As a result, there is a persistent cycle of poverty that affects multiple generations in some of these neighborhoods (Desert Healthcare District, 2021).
In terms of location, many of these neighborhoods are positioned in areas that are further from major employment hubs or public transportation routes. This geographic isolation adds to the challenges of access to employment and community resources. For instance, residents may have to commute longer distances to find work, further adding to their economic strain. Improving transportation infrastructure and access to job centers could significantly enhance economic opportunities for residents in these neighborhoods (Palm Springs Housing Element, 2021).
Are there any community assets in these areas/neighborhoods? There are several community assets in the neighborhoods of Palm Springs that have high concentrations of low- and moderate-income households, particularly those populated by racial and ethnic minorities.
These assets, while sometimes underutilized or in need of further investment, provide a strong foundation for improving the quality of life for residents and offer significant opportunities for community development.
One of the most valuable community assets in these areas is the presence of community centers and public facilities that provide essential services and act as hubs for social interaction and support. For example, the Palm Springs Senior Center offers a range of programs for older adults, including social activities, health services, and transportation assistance. These centers are important not only for providing services but also for fostering social cohesion within neighborhoods. Additionally, community centers often host after-school programs, youth services, and job training, which are critical in supporting the well-being of families, especially those with children. These resources help bridge gaps in services and provide vital support for households facing economic challenges (Palm Springs Housing Element, 2021).
Another important asset is the public parks and recreational facilities in these neighborhoods. For instance, Demuth Park and Ruth Hardy Park provide green spaces for physical activities, sports, and family gatherings. Parks play a key role in promoting community health and well-being by offering safe spaces for residents to engage in outdoor activities. They also serve as venues for community events, bringing people together and fostering a sense of connection. In neighborhoods with high concentrations of low-income families, these parks can become central places where people gather to socialize, exercise, and build community ties.
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Educational institutions are another important asset. Palm Springs Unified School District operates a number of schools in these neighborhoods, providing primary and secondary education to children in the community. These schools are crucial in offering quality education to families in need, helping to break the cycle of poverty and providing children with the skills and opportunities to succeed. In addition, College of the Desert in nearby Palm Desert offers higher education opportunities and vocational training, making it a key asset for workforce development in the region. For low-income residents, this community college provides a pathway to higher-paying jobs in fields such as healthcare, technology, and skilled trades (College of the Desert, 2021).
There are also strong social service networks within these neighborhoods. Nonprofit organizations like Well in the Desert and the Desert AIDS Project provide essential services, including food assistance, healthcare, housing support, and mental health counseling. These organizations play a critical role in supporting vulnerable populations, including seniors, individuals with disabilities, and families facing economic hardship. By providing a safety net for residents, these nonprofits help to stabilize households and ensure access to vital resources that might otherwise be unavailable (Desert AIDS Project, 2021).
Public transportation is another important asset in these neighborhoods, particularly for low-income families that may not have access to private vehicles. The SunLine Transit Agency offers bus services that connect residents to key destinations, including employment centers, medical facilities, and educational institutions. Although there are opportunities for expansion to improve access to more areas, the existing public transit infrastructure plays a significant role in ensuring that residents can access critical services and opportunities across the city (Palm Springs Housing Element, 2021).
In addition, cultural and recreational resources are important assets that contribute to the social fabric of these neighborhoods. Palm Springs' vibrant arts and culture scene includes museums, galleries, and festivals that celebrate the diversity and heritage of the community. These cultural institutions and events help to foster community pride and create opportunities for residents to engage in creative activities. They also provide economic benefits by attracting tourists and creating jobs in the arts, entertainment, and hospitality sectors.
Lastly, the presence of small businesses in these neighborhoods can also be considered a valuable asset.
Local shops, restaurants, and service providers contribute to the economy and provide employment opportunities for residents. Supporting and expanding these small businesses is essential for creating local jobs and strengthening the neighborhood’s economic resilience. Encouraging entrepreneurship and providing business development resources can help local businesses thrive and contribute to community stability (Palm Springs Housing Element, 2021).
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MA-65 Hazard Mitigation - 91.210(a)(5), 91.310(a)(3)
Describe the jurisdiction’s increased natural hazard risks associated with climate change.
Palm Springs, like many other regions, faces increased natural hazard risks associated with climate change. As a desert city, Palm Springs is particularly vulnerable to a variety of climate-related hazards, including heatwaves, drought, wildfires, and flooding, all of which are expected to intensify in the coming years due to climate change. These hazards not only pose immediate threats to the safety and well-being of residents but also present long-term challenges for infrastructure, housing, and public health.
One of the most significant natural hazard risks in Palm Springs is the increase in extreme heat events.
As global temperatures rise, the frequency and intensity of heatwaves are expected to become more pronounced in the region. Palm Springs already experiences high temperatures during the summer months, with daily highs often exceeding 100°F. However, climate change is predicted to increase the severity and duration of these heatwaves, which can have serious health consequences, especially for vulnerable populations such as the elderly, children, and those with preexisting health conditions. Heat- related illnesses such as heatstroke and dehydration are expected to rise, particularly in areas without adequate cooling systems or healthcare access. The risk of heat exposure is compounded by urban heat island effects, where built-up areas with minimal vegetation trap heat, exacerbating temperature extremes in residential areas, particularly in low-income neighborhoods (Palm Springs Housing Element, 2021).
Drought is another growing concern in Palm Springs due to climate change. As a desert city, Palm Springs is already water-scarce, and changing precipitation patterns, coupled with higher evaporation rates from higher temperatures, will likely worsen water shortages in the region. Prolonged drought conditions can lead to reduced water supply for households, agriculture, and other industries, creating stress on both the local economy and the daily lives of residents. Furthermore, the scarcity of water increases the likelihood of conflicts over resources and exacerbates the economic vulnerability of low- income families and those reliant on agriculture for their livelihoods. Water conservation and sustainable management practices will become even more critical in the face of these challenges.
Wildfires are also an increasing risk in the region due to the combination of higher temperatures, prolonged drought, and dry vegetation. Palm Springs is located in a fire-prone zone with nearby wilderness areas and hillsides that are susceptible to wildfire outbreaks, particularly during the hotter months. As climate change leads to more extreme heat and drier conditions, the likelihood of wildfires in the surrounding areas is expected to rise, threatening homes, infrastructure, and natural resources.
Wildfires can cause significant damage to property, disrupt daily life, and have serious environmental impacts, including air quality degradation, loss of wildlife habitats, and erosion of soil. The risk of wildfires is particularly concerning for low-income families who live in or near fire-prone areas and may lack the resources to prepare or recover from such events.
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Flooding is another hazard exacerbated by climate change, particularly in areas prone to flash floods.
Palm Springs is located in an arid region, but periods of intense rainfall are becoming more frequent and unpredictable as climate change affects weather patterns. These extreme weather events can lead to flash floods, especially in the Cahuilla Creek area and other low-lying regions. Additionally, increased urbanization and development in floodplains contribute to the risk of stormwater runoff, overwhelming the city’s drainage infrastructure. The city has already seen instances of localized flooding, and as rainfall patterns become more intense, this risk is likely to increase. Flooding can damage homes, displace families, and disrupt vital infrastructure such as roads, water systems, and power lines, creating further economic hardships, particularly for vulnerable populations living in flood-prone areas.
In addition to these immediate risks, climate change is also likely to have longer-term effects on Palm Springs' economic stability and public health. Increased natural hazards such as extreme heat, drought, and wildfires will place a significant strain on public services, healthcare systems, and local economies.
In particular, low-income communities, including renters and those living in substandard housing, are more vulnerable to the effects of climate change due to their limited access to resources for adaptation and recovery. The impacts of climate change exacerbate existing social inequalities, as those already struggling with housing affordability, job insecurity, and health issues are more likely to be affected by these environmental hazards.
Describe the vulnerability to these risks of housing occupied by low- and moderate-income households based on an analysis of data, findings, and methods.
Housing occupied by low- and moderate-income households in Palm Springs is highly vulnerable to the increased risks associated with climate change. These households face several challenges due to a combination of outdated housing infrastructure, economic limitations, and limited access to adaptive resources, which make them more susceptible to extreme heat, drought, wildfires, and flooding. As global temperatures rise, extreme heat events are expected to become more frequent and severe in the region. Low-income households, particularly in areas with limited green space, often experience the urban heat island effect, where built-up areas trap heat, making these neighborhoods significantly warmer. Many of these households live in older homes without proper cooling systems, such as air conditioning, and may struggle to afford the associated costs. Without these cooling mechanisms, they are at a higher risk of heat-related health problems, including heatstroke and dehydration (Palm Springs Housing Element, 2021).
Drought is another significant risk, as Palm Springs is already a water-scarce region, and climate change is expected to reduce available water resources further. Low-income households in the city are particularly vulnerable to drought because they often live in older homes with inefficient plumbing and may lack the financial means to implement water-saving technologies. Rising water rates due to drought conditions also disproportionately affect these households, making it difficult for them to afford basic water usage. Additionally, drought can have broader economic impacts, particularly for households dependent on agriculture or industries that rely on water, as they may face job instability and reduced income (Palm Springs Housing Element, 2021).
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Wildfires are an increasing risk for these communities, particularly those living in or near fire-prone zones. Palm Springs’ proximity to wildland areas makes it vulnerable to wildfires, and climate change is expected to increase their frequency and intensity. Low-income households living in these areas often lack the resources to protect their homes from fires or evacuate quickly when needed. Many of these households do not have the financial means to implement fire mitigation measures, such as installing fire-resistant materials or creating defensible space around their homes. They also may not have access to personal vehicles or public transportation to evacuate in the event of a wildfire, which further complicates their ability to protect themselves and their families (Palm Springs Housing Element, 2021).
Flooding is another hazard that poses significant risks to low- and moderate-income households, particularly in neighborhoods near floodplains or areas with inadequate stormwater management systems. These households often live in areas with outdated infrastructure that is ill-equipped to handle the increased rainfall and flooding caused by climate change. Without flood protection measures, these households are more likely to suffer property damage, economic hardship, and displacement.
Additionally, low-income families may lack flood insurance, further exacerbating their vulnerability to this risk (Palm Springs Housing Element, 2021).
In sum, the combined effects of climate change on Palm Springs’ low- and moderate-income households are considerable. These households are often exposed to extreme heat, drought, wildfires, and flooding due to their living conditions, location, and economic vulnerability. Their lack of access to adequate resources for climate adaptation, such as energy-efficient cooling systems, fire-resistant materials, and flood protection, makes them particularly susceptible to climate-related hazards. To mitigate these risks, Palm Springs must prioritize investments in infrastructure, affordable housing improvements, and targeted assistance for vulnerable populations, ensuring that these households are equipped to withstand the impacts of climate change and remain resilient in the face of these growing challenges (Palm Springs Housing Element, 2021).
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Strategic Plan
SP-05 Overview
Strategic Plan Overview
The Strategic Plan Overview outlines Palm Springs’ approach to addressing housing and community development needs over the course of the planning period. It serves as a guiding framework for how the city will utilize available resources to support affordable housing, improve infrastructure, and strengthen community services. The primary goal of the Strategic Plan is to ensure that all residents, particularly low- and moderate-income families, have access to safe, affordable housing, economic opportunities, and vital community services.
Palm Springs’ Strategic Plan prioritizes addressing the critical needs of its most vulnerable populations, including families with children, seniors, persons with disabilities, minority groups, and homeless individuals. By focusing on these groups, the plan aims to reduce housing instability, eliminate barriers to accessing essential services, and improve quality of life in neighborhoods that are most at risk.
Additionally, the plan will promote sustainable growth by emphasizing energy-efficient housing, the expansion of public transit, and better disaster resilience.
A core element of the Strategic Plan is expanding the supply of affordable housing. This includes new construction, rehabilitation of existing housing, and increasing housing options for special populations, such as seniors and persons with disabilities. The city is committed to addressing housing affordability challenges by working with local developers, nonprofits, and housing authorities to increase the availability of affordable units and prevent displacement.
Another key objective of the Strategic Plan is to enhance community development by improving public infrastructure, expanding access to health and social services, and increasing economic opportunities.
The plan will support programs designed to increase workforce development, small business support, and access to education for residents, helping them build the skills needed to thrive in a rapidly changing economy.
Through a combination of direct investments, partnerships, and innovative strategies, the Strategic Plan seeks to ensure that Palm Springs becomes a more inclusive, resilient, and sustainable city. The plan’s implementation will rely on coordinated efforts between local government, community organizations, the private sector, and residents to address the city’s most pressing housing and community development challenges effectively.
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SP-10 Geographic Priorities – 91.215 (a)(1)
Geographic Area
Table 52 - Geographic Priority Areas
Field Description
Area Name Downtown Palm Springs
Area Type Low-Income Neighborhood
Other Target Area
Description
Central business district with a high concentration of low- and moderate-income residents.
HUD Approval Date March 27, 2020
% of Low/Mod Approximately 60% of households
Revitalization Type Neighborhood Revitalization
Other Revitalization
Description
Focus on affordable housing development, infrastructure improvements, and economic empowerment programs.
Neighborhood Boundaries Bounded by 1st Street (north), Highway 111 (west), Palm Canyon Drive (south), and Sunrise Way (east).
Housing and Commercial
Characteristics
Predominantly older residential units with a mix of small retail businesses; areas of economic distress with significant vacancy rates.
Consultation and Citizen
Participation
Public hearings and surveys conducted in to gather input from residents and stakeholders.
Identified Needs Affordable housing, job training programs, public facility upgrades, and enhanced public services.
Opportunities for
Improvement
Development of mixed-income housing, streetscape enhancements, and support for local businesses.
Barriers to Improvement High land costs, limited funding, and regulatory constraints.
Table 41 - Geographic Priority Areas
General Allocation Priorities
Describe the basis for allocating investments geographically within the jurisdiction (or within the EMSA for HOPWA)
In Palm Springs, investments are strategically allocated to areas with the greatest need to enhance the quality of life for low- and moderate-income residents. This targeted approach ensures that federal funds, such as the Community Development Block Grant (CDBG), are utilized effectively to address specific community challenges.
Identification of Priority Areas
The city identifies priority areas based on several factors:
• Concentration of Low- and Moderate-Income Households: Areas with a higher percentage of residents earning below 80% of the area median income are prioritized. This focus aligns with CDBG's national objective to benefit low- and moderate-income persons.
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• Housing Quality and Affordability: Neighborhoods with aging housing stock and a shortage of affordable housing options receive attention to improve living conditions and prevent displacement.
• Economic Development Potential: Investments are directed toward areas with opportunities for economic growth, aiming to create jobs and stimulate local economies. • Community Input and Needs Assessment: The city engages with residents and stakeholders through public hearings and surveys to identify pressing needs and tailor investments accordingly. For example, the 2020-2025 Consolidated Plan was developed with extensive community participation to ensure alignment with residents' priorities.
Alignment with Federal Objectives
Palm Springs adheres to federal guidelines by ensuring that investments meet at least one of the following CDBG national objectives:
• Benefiting Low- and Moderate-Income Persons: Allocating funds to projects that serve individuals and families earning below 80% of the area median income. • Eliminating Slums or Blight: Investing in areas where deterioration is prevalent, aiming to revitalize and renew these communities.
• Meeting Urgent Community Development Needs: Addressing critical issues that pose a serious and immediate threat to the health or welfare of residents.
Coordination with Regional Plans
Palm Springs' investment strategy is also informed by regional planning efforts. For instance, the Riverside County Comprehensive Economic Development Strategy highlights the importance of infrastructure improvements, such as enhancements along the Interstate 10 Coachella Valley corridor, which influences local investment decisions.
By integrating these factors—community needs, federal objectives, and regional considerations—Palm Springs ensures that its investments are both strategic and impactful, fostering equitable development and improved quality of life for all residents.
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SP-25 Priority Needs - 91.215(a)(2)
Priority Needs
SP-25 Priority Needs - 91.215(a)(2)
Priority Need
Name
Priority
Level
Population Geographic
Areas Affected
Associated
Goals
Description Basis for Relative
Priority
Affordable
Housing
High Low-income
households
Low-income
neighborhoods
Increase
Affordable
Housing
Focus on creating new
affordable units and
rehabilitating existing
ones to meet the demand
of low-income
households.
High demand for
affordable
housing, limited
availability, and
increasing housing
costs for low-
income families in
Palm Springs.
Homelessness
Assistance
High Homeless
individuals
Citywide, with
a focus on
downtown
Reduce
Homelessness
Address homelessness
through emergency
shelters, transitional
housing, and supportive
services, including mental
health and addiction
treatment programs.
Increasing rates of
homelessness in
the region, with a
particular focus
on families with
children and
veterans in need
of housing and
supportive
services.
Supportive
Services
Medium Seniors,
disabled, and
households
with children
High-density
areas of Palm
Springs
Provide
Supportive
Services
Expand access to social
services, such as
healthcare, education, job
training, and senior
support, to improve
overall quality of life and
reduce poverty.
Vulnerable
populations facing
barriers to
healthcare and
employment,
exacerbating
existing economic
challenges.
Infrastructure
Improvement
Medium General
population
Low-income
neighborhoods
Enhance
Community
Infrastructure
Improve infrastructure,
such as public
transportation, utilities,
and parks, to enhance
quality of life and attract
investment in
underserved areas.
Aging
infrastructure,
lack of green
space, and public
transit access,
which
disproportionately
affect low-income
households.
Economic
Development
Medium Low-income
individuals and
families
Economic
zones in
downtown
and
surrounding
areas
Enhance
Economic
Opportunities
Encourage job creation,
small business support,
and vocational training to
stimulate the local
economy and provide
pathways out of poverty.
High
unemployment
rates in low-
income
communities,
need for job
training and
economic
resilience
programs.
Table 42 – Priority Needs Summary
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Narrative (Optional)
The Priority Needs Summary for Palm Springs highlights several key areas where the city must focus its efforts to improve housing, economic opportunity, and community infrastructure. Each of these needs is critical to addressing the challenges faced by the city’s low- and moderate-income residents, with an emphasis on expanding affordable housing, reducing homelessness, enhancing community infrastructure, and promoting economic development. The relative priority of these needs is determined based on the current and projected demand, the specific challenges of underserved populations, and the city’s ability to implement effective solutions.
Affordable housing emerges as the highest priority need. There is a significant shortage of affordable housing in Palm Springs, with a large number of low-income households struggling to find safe and stable homes. As housing costs continue to rise, many residents are forced into overcrowded or substandard conditions. In response to this growing demand, the city aims to increase the supply of affordable housing by constructing new units and rehabilitating existing properties. This initiative is critical to ensuring that low-income residents, including families with children and seniors, can access homes that meet their needs and remain financially stable. The city's goal is to prevent displacement and create housing opportunities that are accessible to all residents, particularly those in neighborhoods with the highest concentrations of poverty.
The second high priority need is homelessness assistance. With homelessness rising in Palm Springs, particularly among families with children, veterans, and individuals with disabilities, addressing this issue is essential to maintaining community stability and well-being. The city plans to expand emergency shelters, transitional housing, and supportive services aimed at helping individuals and families exit homelessness. The focus will be on creating pathways out of homelessness by providing a combination of temporary housing, case management, mental health support, addiction services, and long-term housing solutions. The strategic allocation of resources to homeless assistance will help reduce the number of people living on the streets and ensure that those experiencing homelessness have access to the services needed to regain independence.
Supportive services for vulnerable populations such as seniors, individuals with disabilities, and families with children are moderate priority in Palm Springs. These groups face unique challenges related to accessing healthcare, education, and job opportunities. The city recognizes that by enhancing the availability of supportive services, it can significantly improve the quality of life for these residents and help them overcome barriers to success. Services include healthcare, job training programs, education, and senior support, which are essential for ensuring that these populations can live independently and participate fully in the community. Providing these services is a critical step toward reducing poverty and ensuring that all residents have the resources to thrive.
Economic development is another key area where Palm Springs plans to focus its efforts. The city aims to create more economic opportunities for its residents by supporting job creation, small businesses, Item 2A - Page 160
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and workforce development initiatives. Investments will be made in local business support programs, vocational training, and infrastructure projects to stimulate the local economy and reduce unemployment, particularly in low-income neighborhoods. These efforts are intended to provide pathways out of poverty, increase financial stability, and reduce income inequality. Additionally, economic development efforts will focus on revitalizing key areas of the city to attract new businesses and ensure sustainable growth that benefits all residents.
Lastly, infrastructure improvement is identified as a medium-priority need. The city’s aging infrastructure, including public transportation systems, utilities, and public spaces, requires significant upgrades to meet the needs of its growing population. The city plans to improve transportation access, enhance public facilities, and invest in green spaces to create a more livable environment for residents.
These improvements will not only enhance the quality of life but also stimulate local economic development by making the city a more attractive place to live, work, and invest.
Palm Springs is focused on addressing the most urgent needs within its community by prioritizing affordable housing, homelessness assistance, economic development, and supportive services. These priorities reflect the city's commitment to improving the quality of life for all residents, ensuring that vulnerable populations receive the support they need, and creating a sustainable, equitable future for the community. Through targeted investments and collaborative efforts, Palm Springs aims to address these needs and foster a thriving, resilient community for all its residents.
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SP-30 Influence of Market Conditions – 91.215 (b)
Influence of Market Conditions
Affordable
Housing Type
Market Characteristics Influencing Fund Allocation
Tenant-Based
Rental Assistance
(TBRA)
High demand for affordable rental units and limited availability of housing options. Rent increases and housing cost burdens push more low-income households to rely on TBRA to afford rental housing. Limited rental vacancies in low-income areas make TBRA a crucial tool for housing stability.
TBRA for Non-
Homeless Special
Needs
Market limitations in the availability of suitable housing for individuals with special needs, such as those with disabilities or chronic health issues. There is a lack of accessible housing and supportive services that can accommodate these populations without the assistance of TBRA.
New Unit
Production
Limited availability of land and high construction costs influence the ability to develop new affordable housing units. The high cost of land in some neighborhoods limits new developments, especially for families with lower income levels.
Rehabilitation Older housing stock in some neighborhoods leads to the need for rehabilitation, especially in communities with aging housing infrastructure.
Rising costs of labor and materials may slow down rehabilitation efforts, creating a backlog of needed repairs in affordable housing.
Acquisition,
including
Preservation
Increasing property values and a competitive real estate market make the acquisition of affordable housing units more difficult. Preservation of existing affordable housing stock is critical as gentrification and rising costs lead to the risk of displacement. A focus on preserving affordable units through strategic acquisitions helps mitigate this issue.
Table 43 – Influence of Market Conditions
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SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2) Introduction
The Anticipated Resources section of Palm Springs' strategic plan outlines the funding and resources expected to be available to address the city's housing and community development needs. This includes a detailed look at the financial tools and funding sources, both federal and local, that will be allocated for affordable housing projects, homelessness prevention, community development initiatives, and related services over the course of the planning period.
These resources will be critical in advancing the goals of the Consolidated Plan and the Housing Element by addressing the needs of the most vulnerable populations in Palm Springs, such as low-income households, individuals experiencing homelessness, seniors, persons with disabilities, and families with children. The city will primarily rely on Community Development Block Grants (CDBG) and other local and state funding sources to support these initiatives.
The strategic allocation of these resources will ensure that Palm Springs can continue its efforts to provide safe, affordable housing, enhance economic opportunities, improve community infrastructure, and support services for those in need. These investments will be carefully prioritized to reflect the most pressing needs as identified through community engagement, needs assessments, and demographic trends, with a focus on addressing housing affordability, homelessness, and economic development within the city's most at-risk neighborhoods.
Additionally, the city will pursue partnerships with local nonprofits, developers, and community organizations to enhance the effectiveness and reach of these resources. The goal is to create a more inclusive, sustainable community where residents of all income levels have access to affordable housing, essential services, and opportunities to thrive. By maximizing available funding and resources, Palm Springs aims to meet its long-term housing and community development goals while fostering greater resilience to future challenges.
Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount
Available Year 1
Expected Amount
Available
Remainder of
ConPlan
Narrative Description
CDBG Federal Public Services,
Administration
$679,019 $3,395,095) The CDBG program funds
public services and
administrative costs to benefit
low- and moderate-income
residents.
Note: The amounts for the remainder of the Consolidated Plan period are estimated based on historical Table 44 - Anticipated Resources
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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Federal funds, such as the Community Development Block Grant (CDBG), serve as a catalyst for enhancing housing and community development initiatives in Palm Springs. The city strategically combines these federal resources with private, state, and local funds to maximize their impact, ensuring a comprehensive and sustainable development strategy.
Leveraging Federal Funds with Additional Resources
Palm Springs utilizes private funds to complement federal grants, particularly in affordable housing projects. Developers often combine federal Low-Income Housing Tax Credits with private capital to finance affordable housing initiatives, encouraging private investment in areas that serve low- and moderate-income residents. In economic development, public-private partnerships enable the pooling of federal funds with private investments to revitalize commercial districts, enhance infrastructure, and stimulate local economies.
State funds are also integrated with federal resources to address housing assistance and infrastructure development. State housing trust funds are matched with federal grants to provide rental assistance, homebuyer education, and foreclosure prevention services. Additionally, state transportation and public works funds, when combined with federal resources, facilitate comprehensive infrastructure projects, including road repairs, public transit enhancements, and utility upgrades.
At the local level, Palm Springs enhances community facilities and public safety through the strategic use of federal funds. Local government budgets are augmented with federal resources to construct or renovate community centers, libraries, and recreational facilities, ensuring they meet the diverse needs of residents. Allocating local funds alongside federal grants supports the procurement of equipment, training, and technology for public safety departments, enhancing community well-being.
Satisfying Matching Requirements
While the CDBG program does not impose matching fund requirements on entitlement communities, Palm Springs enhances its projects by incorporating additional resources. The city offers in-kind contributions, such as services, staff time, or facilities, as non-monetary matches, reducing the need for cash contributions while still enhancing program effectiveness. By aligning federal grants with state and local funding sources, Palm Springs effectively expands its program reach. Encouraging private entities to invest in community projects allows the city to foster a collaborative development environment.
This strategic blending of federal, private, state, and local funds exemplifies Palm Springs' commitment to fostering inclusive growth and addressing the multifaceted needs of its community. By effectively leveraging these resources, the city ensures that federal investments lead to substantial, lasting improvements in housing, infrastructure, and public services.
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Discussion
The challenges associated with meeting the housing and community development needs in Palm Spring often surpass the available resources. To bridge this gap, the city is proactive in seeking and securing additional funding from local, state, federal, and private sources. By leveraging CDBG funds alongside these supplementary resources, Palm Spring enhances its capacity to undertake and complete projects that might otherwise be unfeasible. This collaborative and resourceful approach underscores the city's dedication to fostering a vibrant, inclusive, and sustainable community for all its residents.
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SP-40 Institutional Delivery Structure – 91.215(k)
Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions.
Table 56 - Institutional Delivery Structure
Responsible
Entity
Responsible
Entity Type
Role Geographic Area
Served
City of Palm
Springs
Public
Institution
Lead agency for overseeing the implementation
of the Consolidated Plan, coordinating housing,
community development, and homelessness
programs.
City of Palm
Springs
Riverside County
Housing Authority
Public
Institution
Administers federal housing programs, including
Section 8 and public housing assistance, as well as
affordable housing development.
Palm Springs,
Riverside County
Palm Springs
Housing Authority
Public
Institution
Administers affordable housing programs,
including the management of public housing, rent
subsidies, and development of new affordable
housing units.
City of Palm
Springs
Coachella Valley
Housing Coalition
Non-profit
Organization
Provides affordable housing development,
homelessness prevention services, and housing
counseling for low-income individuals and
families.
Coachella Valley,
including Palm
Springs
Desert Healthcare
District
Public
Institution
Provides funding and oversight for health-related
services, including supportive housing for
individuals with mental health issues or
substance abuse problems.
Palm Springs and
Coachella Valley
United Way of
the Desert
Non-profit
Organization
Works with local organizations to address
homelessness, hunger, and other critical
community issues, ensuring residents' basic
needs are met.
Palm Springs and
Coachella Valley
Palm Springs
Unified School
District
Public
Institution
Partners in providing educational services and
programs that assist low-income families and
children, including after-school and summer
programs.
Palm Springs
Local developers
and private
industry
Private
Industry
Contributes to the development of affordable
housing through partnerships, tax credit
programs, and financing mechanisms.
City of Palm
Springs
This table illustrates the variety of entities involved in the implementation of the Consoli Table 45 - Institutional Delivery Structure
Assess of Strengths and Gaps in the Institutional Delivery System The institutional delivery system in Palm Springs, as outlined in the Consolidated Plan and the Housing Element (HE), is built on a strong foundation of partnerships between public institutions, non-profit organizations, and private industry. These collaborations are critical for ensuring the successful implementation of housing and community development initiatives. However, despite the strengths of Item 2A - Page 166
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this system, there are some gaps that need to be addressed to enhance service delivery and improve outcomes for the community.
Strengths of the Institutional Delivery System:
1. Collaborative Efforts Between Public and Private Sectors: Palm Springs benefits from strong collaboration between the city government, regional public institutions such as the Riverside County Housing Authority, and non-profit organizations like the Coachella Valley Housing Coalition. These entities work together to create affordable housing, manage homelessness programs, and offer supportive services to low-income residents. Public-private partnerships have been particularly effective in leveraging both federal and local funding to expand housing opportunities and provide much-needed services.
2. Diverse Range of Service Providers: The involvement of diverse service providers—from the Palm Springs Housing Authority to local non-profits and healthcare providers—ensures that there is a broad spectrum of services available for residents. This includes not only affordable housing but also support for homeless prevention, health services, education, and employment assistance. These partnerships help address the multifaceted needs of the low- and moderate- income population in Palm Springs.
3. Comprehensive Homeless Services Network: The Coachella Valley Continuum of Care (CVCoC) works with a network of providers to address homelessness and housing instability. This collaboration has resulted in better coordination of emergency shelter, transitional housing, and rapid rehousing programs. The city’s outreach efforts, supported by non-profits and service providers, have been critical in engaging homeless individuals and connecting them with needed services (Palm Springs Housing Element, 2021).
4. Clear Role of the City as the Lead Agency: The City of Palm Springs plays a central role in overseeing the implementation of the Consolidated Plan and ensuring that resources are allocated effectively. This centralized coordination streamlines decision-making and ensures alignment with the city's strategic goals related to affordable housing and community development.
Gaps in the Institutional Delivery System:
1. Limited Availability of Affordable Housing: Despite the strengths of Palm Springs' institutional framework, there is still a significant gap in the availability of affordable housing. High demand, coupled with rising land costs and zoning restrictions, limits the city’s ability to create enough affordable housing units to meet the growing need. While there are public-private partnerships in place, additional investments in housing production and rehabilitation are necessary to meet the demand for affordable units. This challenge is particularly acute in neighborhoods where low-income families face the highest risk of displacement.
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2. Insufficient Support for Special Populations: While there are many services available for the general low-income population, there is a gap in the support offered to special populations, such as individuals with disabilities, seniors, and veterans. Services for those with chronic mental health or substance use disorders also require additional attention. The existing institutions and services do not always have the capacity or specialized resources to fully meet the unique needs of these vulnerable groups. Increased investment in supportive housing and tailored services is essential to bridge this gap (Palm Springs Housing Element, 2021).
3. Access to Affordable Broadband: The lack of adequate broadband access in certain parts of Palm Springs, especially in low-income neighborhoods, remains a barrier. The digital divide hinders residents' ability to access educational resources, telemedicine, and job opportunities. There is a need for additional efforts to expand broadband infrastructure, particularly for low- and moderate-income families, and for policies that support affordability and access (Palm Springs Housing Element, 2021).
4. Coordination Challenges Between Agencies: While there is significant collaboration between different service providers, there are instances where coordination between local, regional, and state agencies can be improved. For example, some housing projects experience delays due to miscommunication between funding sources, local zoning regulations, and infrastructure development. Strengthening inter-agency collaboration and improving data sharing would help streamline housing and service delivery, making the system more efficient.
5. Insufficient Funding for Homelessness Programs: Although Palm Springs has made strides in addressing homelessness, there are ongoing challenges with securing sufficient funding for long- term solutions. Homelessness programs rely heavily on federal and state resources, and with increasing competition for these funds, the city faces difficulties in scaling up programs to meet the rising demand. Increased funding for homeless services, alongside the expansion of affordable housing, is needed to ensure that the city can meet the needs of the homeless population effectively.
Palm Springs has a robust institutional delivery system, marked by strong partnerships between public, private, and non-profit organizations. However, gaps in affordable housing availability, services for special populations, and broadband access need to be addressed to ensure that the city can fully meet the needs of its residents. The city’s strategy moving forward should focus on increasing resources for affordable housing production, expanding support for vulnerable populations, and enhancing coordination between agencies to ensure effective and efficient service delivery. Addressing these gaps will enable Palm Springs to improve the overall quality of life for its residents and better meet the goals outlined in the Consolidated Plan and Housing Element.
Availability of services targeted to homeless persons and persons with HIV and mainstream services
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Palm Springs is committed to providing a comprehensive range of services targeted specifically at homeless individuals and families, persons living with HIV/AIDS, and other vulnerable populations. These services aim to address the immediate needs of these individuals while helping them transition into stable housing, access medical care, and achieve long-term self-sufficiency.
Services for Homeless Persons
Palm Springs has established a robust network of services to support homeless individuals, as outlined in the Housing Element (HE) and the Consolidated Plan. These services are provided through a combination of public agencies, non-profit organizations, and local shelters. The Coachella Valley Continuum of Care (CVCoC) is a key partner in coordinating services and ensuring that homeless individuals have access to a continuum of care, which includes emergency shelter, transitional housing, rapid rehousing, and permanent supportive housing.
Emergency shelters provide a safe place for individuals experiencing homelessness to receive basic services, including food, showers, and medical care. Case management services are available to help clients navigate the housing system and connect to necessary resources, such as mental health services, substance use treatment, and employment training. Transitional housing programs offer longer stays for individuals who need more time to regain stability before moving into permanent housing. The Palm Springs Housing Authority and Coachella Valley Rescue Mission are key service providers in the region, offering supportive housing and homelessness prevention services (Palm Springs Housing Element, 2021).
Services for Persons with HIV/AIDS
Persons living with HIV/AIDS in Palm Springs benefit from specialized services designed to meet their unique needs. These services include access to medical care, mental health counseling, case management, and housing assistance. The Ryan White Program is a primary source of funding for medical care and treatment services for individuals with HIV/AIDS. These services are delivered through partnerships with local healthcare providers, including Desert AIDS Project, which offers comprehensive care, including primary medical care, case management, dental services, and mental health support for individuals living with HIV/AIDS.
Additionally, the Housing Opportunities for Persons with AIDS (HOPWA) program provides funding to support housing stability for people living with HIV/AIDS. In Palm Springs, the Desert AIDS Project is a key organization that administers housing assistance, which includes short-term rent, mortgage, and utility assistance, as well as supportive housing services. These services are designed to help people with HIV/AIDS maintain stable housing while receiving the necessary medical and support services to manage their health.
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In addition to specialized services for homeless persons and those with HIV/AIDS, Palm Springs provides a range of mainstream services that are available to low-income individuals and families, regardless of their specific challenges. These services include healthcare, food assistance, job training, and educational programs.
The Coachella Valley Community Action Partnership (CVCAP) and Palm Springs Unified School District work together to provide food assistance, job training, after-school programs, and other essential services to low-income families and individuals. The Desert Healthcare District and Riverside County Public Health also play a critical role in offering health services, including mental health care, substance abuse treatment, and preventive healthcare to low-income populations.
Palm Springs has also strengthened its healthcare infrastructure, with many mainstream health services provided through Desert Regional Medical Center and other local clinics. These facilities are essential for providing comprehensive healthcare to homeless individuals, those with HIV/AIDS, and low-income households. Mainstream services also include CalFresh (food assistance), Medi-Cal (healthcare), and General Assistance programs, which are essential for supporting individuals and families in need.
Coordination of Services
The coordination of services is a key aspect of Palm Springs' strategy to address the needs of homeless individuals, persons with HIV/AIDS, and low-income populations. The city collaborates with local, regional, and state agencies to ensure that individuals can access the full range of services they need, from emergency shelter to long-term healthcare. The Coachella Valley Continuum of Care ensures that housing and support services are seamlessly connected, and that individuals receive the appropriate services at every stage of their journey out of homelessness.
Collaboration with the California Department of Housing and Community Development and Riverside County also ensures that Palm Springs’ efforts align with state and regional homelessness initiatives. The availability of services is regularly assessed to ensure that gaps in care are identified and addressed, and the city works to expand capacity where needed, particularly in underserved communities.
The availability of services for homeless persons, individuals with HIV/AIDS, and low-income households in Palm Springs is robust and growing. Through strategic partnerships with non-profits, public health agencies, and private sector partners, the city is able to provide a comprehensive array of housing, healthcare, mental health, and employment services. The continued development of these services, along with enhanced coordination, will ensure that Palm Springs can effectively address the needs of its most vulnerable residents, helping them transition to stable housing and self-sufficiency.
Service Available in the
Community
Targeted to
Homeless
Targeted to People
with HIV
Homelessness Prevention
Services
Counseling/Advocacy Yes Yes Yes
Legal Assistance Yes Yes Yes
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Mortgage Assistance Yes No No
Rental Assistance Yes Yes Yes
Utilities Assistance Yes Yes Yes
Street Outreach Services
Street Outreach Services Yes Yes Yes
Law Enforcement Yes Yes Yes
Mobile Clinics Yes Yes Yes
Other Street Outreach Services Yes Yes Yes
Supportive Services
Alcohol & Drug Abuse Yes Yes Yes
Child Care Yes Yes Yes
Education Yes Yes Yes
Employment and Employment
Training
Yes Yes Yes
Healthcare Yes Yes Yes
HIV/AIDS Yes Yes Yes
Life Skills Yes Yes Yes
Mental Health Counseling Yes Yes Yes
Transportation Yes Yes Yes
Other Yes Yes Yes
Key Service Providers in Palm Springs:
Table 46 - Homeless Prevention Services Summary
Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) Palm Springs has developed a robust service delivery system to meet the diverse needs of homeless individuals and families, particularly those who are chronically homeless, veterans, families with children, and unaccompanied youth. Through a combination of public, private, and nonprofit service providers, Palm Springs ensures that these populations receive targeted support. The Coachella Valley Continuum of Care (CVCoC) coordinates homelessness services, offering a continuum of care that includes emergency shelter, transitional housing, and permanent supportive housing. This coordinated approach ensures that homeless individuals are not only provided immediate relief, but also have access to case management, healthcare, mental health services, substance abuse treatment, and other critical support services that help them transition to stable housing.
For chronically homeless individuals, the Housing First model plays a crucial role in the service delivery system. By prioritizing stable housing without preconditions, Palm Springs offers individuals immediate access to housing, followed by comprehensive supportive services. This model has been shown to be particularly effective for people with mental health or substance abuse issues. Palm Springs has implemented this model for individuals with long-term homelessness histories, ensuring that services Item 2A - Page 171
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such as medical care, mental health counseling, substance abuse treatment, and job training are available to help individuals regain self-sufficiency. The Desert AIDS Project and Martha’s Village and Kitchen provide essential services, including mental health care, addiction counseling, and housing support, tailored to meet the specific needs of chronically homeless individuals.
For families with children, veterans, and unaccompanied youth, Palm Springs has targeted programs that offer shelter, stability, and wraparound services. Veterans and their families benefit from programs such as Veterans Affairs Supportive Housing (VASH), which provides housing assistance along with dedicated case management. Similarly, youth programs, such as those offered by The Well in the Desert, provide shelter and services to unaccompanied youth, with a focus on educational support, job training, and mental health services. Families with children are provided with both temporary shelter and services to help with employment, childcare, and educational support, ensuring that both parents and children receive the help they need to regain stability and avoid future homelessness.
Describe the strengths and gaps of the service delivery system for special needs populations and persons experiencing homelessness, including, but not limited to, the services listed above The service delivery system in Palm Springs demonstrates several strengths in addressing the needs of special populations and individuals experiencing homelessness. One of the key strengths is the wide range of services available, including emergency shelter, transitional housing, mental health care, substance abuse treatment, healthcare, job training, and legal services. The Coachella Valley Continuum of Care (CVCoC) and local service providers, such as Martha’s Village and Kitchen and the Desert AIDS Project, offer a well-rounded set of resources that target both immediate needs and long-term stability.
Palm Springs’ coordination of services, particularly through partnerships with nonprofits, ensures that the homeless population, including those with special needs such as mental health or HIV/AIDS, receives comprehensive care.
Another strength is the city’s use of the Housing First approach, which has been effective in addressing chronic homelessness and providing immediate stability. By focusing on securing permanent housing for individuals before addressing other issues, Palm Springs enables residents to stabilize in housing and access the services they need, such as healthcare, job training, and substance abuse treatment. The collaboration between service providers ensures that individuals are connected to appropriate resources, minimizing service gaps and maximizing the effectiveness of interventions. Additionally, the Palm Springs Housing Authority and other local entities are focused on creating and maintaining affordable housing, further addressing housing instability and homelessness.
However, there are notable gaps in the service delivery system for certain populations. While Palm Springs has a strong network of services, there is limited capacity for housing units for individuals with severe mental health issues or complex medical needs. The lack of specialized housing for these individuals results in longer stays in emergency shelters or transitional housing. Another gap is the insufficient availability of resources for unaccompanied youth, who often face challenges accessing housing and services tailored to their needs. Additionally, while services are available for many low- Item 2A - Page 172
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income individuals and families, there is a shortage of supportive housing options for families with children and veterans, who require more intensive support to transition out of homelessness. These gaps highlight the need for additional funding, housing, and specialized services to fully meet the needs of vulnerable populations.
Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs Palm Springs recognizes the importance of addressing the gaps in its institutional structure and service delivery system to effectively meet the needs of its homeless population and special needs communities. To overcome these gaps, the city’s strategy includes expanding access to affordable housing, improving coordination between service providers, and increasing funding for supportive services. The city plans to collaborate with regional partners and leverage state and federal resources to increase the availability of permanent supportive housing units, particularly for individuals with severe mental health or medical conditions. By expanding the availability of such housing, Palm Springs can reduce reliance on emergency shelters and provide more stable living environments for individuals who need long-term care.
To address the needs of unaccompanied youth, Palm Springs will work with community organizations, such as The Well in the Desert and Desert AIDS Project, to develop targeted outreach programs and housing options specifically designed for this population. This includes increasing access to educational support, employment training, and mental health services. The city will also strengthen partnerships with local school districts to ensure that unaccompanied youth receive the support they need to succeed academically and transition into independent adulthood. Increasing the availability of transitional housing for youth, coupled with comprehensive case management, will ensure they have a path out of homelessness.
Finally, Palm Springs will focus on improving service coordination and integrating resources across agencies. By using data sharing and case management tools, the city can ensure that individuals and families are connected to the right services at the right time. Strengthening the capacity of non-profit organizations and service providers through additional funding and training will ensure that all populations, including veterans and families, receive the support they need. This holistic approach, which includes expanding housing opportunities, improving service delivery, and strengthening partnerships, will ensure Palm Springs can effectively meet the needs of its most vulnerable residents and address the priority needs identified in the Consolidated Plan.
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SP-45 Goals Summary – 91.215(a)(4)
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding
Source
Goal Outcome
Indicator
1 Affordable
Housing
Development
2025 2029 Affordable
Housing
Citywide Increase
affordable
housing units
CDBG, Construction of
new rental units;
assistance to
homebuyers
2 Homelessness
Prevention
2025 2029 Homeless
Services
Citywide Reduce
homelessness
CDBG, Homelessness
prevention
services; rapid
re-housing
assistance
3 Economic
Development
2025 2029 Economic
Development
Target
Areas
Job creation
and retention
CDBG Number of jobs
created or
retained;
businesses
assisted
4 Public
Facilities and
Infrastructure
2025 2029 Community
Development
Low-
Income
Areas
Improve
public
facilities
CDBG Public facility or
infrastructure
activities
benefiting low-
and moderate-
income persons
5 Public Services 2025 2029 Community
Services
Citywide Provide
essential
services
CDBG Public service
activities
benefiting low-
and moderate-
income persons
Table 47 – Goals Summary
Goal Descriptions
Goal Name Goal Description
Affordable Housing
Development
Increase the availability of affordable housing units through new construction and homebuyer assistance programs.
Homelessness
Prevention
Implement programs aimed at preventing homelessness, including emergency assistance and rapid re-housing initiatives.
Economic
Development
Promote economic growth by supporting job creation, retention, and providing assistance to local businesses.
Public Facilities and
Infrastructure
Enhance public facilities and infrastructure in low-income neighborhoods to improve the quality of life for residents.
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Public Services Offer essential services such as healthcare, education, and recreational programs to support low- and moderate-income individuals and families.
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) The HOME Program classifies income categories as follows: extremely low-income families earn 30% or less of the Area Median Income (AMI), low-income families earn between 31% and 50% of AMI, and moderate-income families earn between 51% and 80% of AMI. These income categories are critical for understanding the level of affordability that Palm Springs aims to address through its affordable housing initiatives.
According to the Palm Springs Consolidated Plan, the city is focusing on providing affordable housing for these income groups over the next five years. For extremely low-income households, Palm Springs aims to provide affordable housing to approximately 1,000 to 1,200 families. These households often face the most significant barriers to accessing affordable housing, and Palm Springs will prioritize programs such as rental assistance and supportive housing to address the needs of this group. For low-income households earning between 31% and 50% of AMI, the city anticipates providing housing for approximately 1,500 to 2,000 families. Palm Springs will expand affordable rental housing options, rehabilitate existing units, and leverage funding from programs like the Affordable Housing Fund to support this income group. Additionally, for moderate-income families earning between 51% and 80% of AMI, the city expects to provide affordable housing to approximately 2,000 to 2,500 families. Palm Springs plans to focus on increasing opportunities for homeownership through down payment assistance programs, creating moderate-income rental units, and collaborating with developers to build mixed-income housing.
Palm Springs is committed to addressing the housing needs of these income groups through targeted programs and policies. The city will prioritize providing housing for extremely low-income and low- income households while expanding opportunities for moderate-income families to access affordable housing. The city’s efforts will include utilizing public-private partnerships, federal and state resources, and strong community engagement to reduce housing instability and increase affordable housing options for residents over the next five years.
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SP-50 Public Housing Accessibility and Involvement – 91.215(c) Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement):
The SP-50 Public Housing Accessibility and Involvement section of Palm Springs’ Consolidated Plan outlines the city’s commitment to increasing the number of accessible public housing units in accordance with Section 504 of the Rehabilitation Act. Section 504 mandates that public housing agencies (PHAs) ensure that a sufficient number of their housing units are accessible to individuals with disabilities. This includes both physical accessibility—such as wheelchair ramps, wider doorways, and accessible bathrooms—as well as programmatic accessibility, which ensures that people with disabilities can fully participate in housing programs and services.
Palm Springs has recognized the need to increase the number of accessible public housing units to meet the growing demand from residents with disabilities. Currently, a portion of public housing units in Palm Springs is already accessible, but there is a recognized gap in the availability of units designed for individuals with mobility impairments or other disabilities. As part of the Section 504 Voluntary Compliance Agreement, Palm Springs is working to meet federal accessibility requirements by identifying existing public housing units that can be renovated or retrofitted to accommodate individuals with disabilities. This includes modifications to units that were not originally designed to be accessible, such as installing accessible bathrooms, kitchens, and entryways.
In addition to physical renovations, Palm Springs is also working to ensure that new public housing developments comply with Section 504 standards. The city is focused on incorporating universal design principles into new projects, which ensure that housing units are accessible to individuals with a variety of disabilities from the outset. This approach aims to reduce the need for future retrofitting and provides a more inclusive environment for all residents. Palm Springs plans to increase the availability of fully accessible units through partnerships with developers, the use of Low-Income Housing Tax Credits (LIHTC), and other funding mechanisms to build affordable, accessible housing that meets the needs of people with disabilities.
The city is also committed to maintaining ongoing communication with advocacy groups, residents, and disability organizations to ensure that its accessibility efforts meet the needs of the community. These stakeholders play a key role in identifying gaps in service and ensuring that the city’s efforts to increase accessible housing are both effective and responsive. Palm Springs’ strategy focuses on both expanding the physical availability of accessible housing units and ensuring that these units are integrated into the broader community, offering individuals with disabilities the opportunity to live independently and participate fully in community life.
Activities to Increase Resident Involvement:
Palm Springs is committed to enhancing resident involvement in public housing and community development activities as part of its strategy to foster more inclusive and participatory decision-making.
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Increasing resident involvement is essential to ensuring that the voices of public housing tenants are heard and their needs are addressed in the planning and execution of housing and community programs.
To achieve this, the city will implement a variety of strategies to engage residents and encourage active participation in housing decisions. One of the key activities will be the creation of resident councils or tenant associations within public housing developments. These groups will serve as a platform for residents to express their concerns, provide input on housing conditions, and participate in discussions about improvements and community-building activities. By empowering residents through these councils, Palm Springs aims to create a collaborative environment where tenants have a meaningful role in shaping the policies and services that affect their lives.
In addition, the city plans to hold regular community meetings and forums, where residents can meet with housing officials, share their experiences, and discuss potential changes or enhancements to public housing. These meetings will be inclusive and accessible, with efforts to ensure participation from underrepresented groups, such as seniors, individuals with disabilities, and non-English speakers. The city will also use surveys and feedback tools to gather residents' opinions on housing conditions, service delivery, and the effectiveness of various programs.
Furthermore, Palm Springs will provide opportunities for residents to be involved in the design and implementation of public housing improvement projects. This could include seeking tenant feedback on proposed renovations, involving residents in neighborhood beautification efforts, or providing opportunities for residents to take part in local job training and development programs related to housing construction and maintenance.
By increasing resident involvement in these activities, Palm Springs aims to create a more responsive and community-oriented public housing system. This approach not only improves the quality of housing and services but also strengthens the social fabric of the community, promoting a sense of ownership and pride among residents. The city’s commitment to resident involvement is an integral part of its efforts to enhance public housing and ensure that it serves the needs of all tenants.
Is the Public Housing Agency Designated as Troubled under 24 CFR Part 902? The Housing Authority of the County of Riverside (HACR) serves the City of Palm Springs. There is no indication that HACR is designated as a "troubled" agency under 24 CFR Part 902. HACR continues to administer various programs, including the Housing Choice Voucher Program (Section 8), to assist low- income families, the elderly, and individuals with disabilities in obtaining affordable housing.
Plan to Remove the 'Troubled' Designation:
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assistance and continues to implement programs that benefit the residents of Palm Springs and the broader Riverside County area.
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SP-55 Barriers to affordable housing – 91.215(h)
Barriers to Affordable Housing
The SP-55 Barriers to Affordable Housing section of the Palm Springs Housing Element (HE) identifies the key obstacles that impede the development and availability of affordable housing within the city. These barriers affect both the supply of and access to affordable housing, which are essential for ensuring that low- and moderate-income households can secure safe, stable, and affordable places to live.
One of the primary barriers to affordable housing in Palm Springs is the high cost of land and construction. As a desirable location in California with strong tourism and a growing population, Palm Springs faces significant competition for land, driving up property values. This increases the cost of developing new affordable housing projects. Additionally, rising construction costs, driven by inflation, materials shortages, and labor challenges, make it more difficult for developers to build affordable units without substantial subsidies or government assistance.
Another significant barrier is zoning and land use regulations. While Palm Springs has made strides to encourage affordable housing, restrictive zoning laws and land-use policies still create challenges. For instance, zoning regulations in some areas limit the types of housing that can be built, restricting the development of multi-family housing units in certain neighborhoods. Additionally, minimum lot sizes and height restrictions in some zoning districts further limit the ability to build higher-density housing, which is often more cost-effective for accommodating low-income families.
The lack of adequate financing and funding sources is also a critical barrier to affordable housing development. Although Palm Springs receives federal funding through programs like CDBG, the city faces competition for these funds at the state and federal levels, which can result in limited resources for housing development. Moreover, developers of affordable housing often struggle to secure private financing without substantial public support, and the gap between development costs and what low- income residents can afford continues to widen.
NIMBYism (Not In My Backyard) also poses a barrier. There is often resistance from local communities to the construction of affordable housing projects in certain neighborhoods. Concerns about increased density, property values, and potential changes to the neighborhood’s character can lead to opposition, even when such projects are essential for meeting the needs of lower-income residents.
Finally, inadequate access to transportation is another barrier to affordable housing in Palm Springs.
Many affordable housing developments are located in areas with limited public transit options, which restricts access to job opportunities, healthcare, education, and other essential services. Lack of convenient transportation exacerbates the challenges faced by low-income families, who may not have access to private vehicles.
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density housing, seeking additional funding sources for affordable housing development, incentivizing the construction of affordable units through tax credits and subsidies, and improving public transportation networks to increase access to jobs and services. By tackling these barriers, Palm Springs aims to create a more inclusive and equitable housing environment that meets the needs of its diverse population.
Strategy to Remove or Ameliorate the Barriers to Affordable Housing To remove or ameliorate the barriers to affordable housing in Palm Springs, the city has developed a comprehensive strategy that addresses the key obstacles identified in the Housing Element (HE). This strategy focuses on improving affordability through policy changes, leveraging available funding, and promoting community collaboration.
One of the primary components of this strategy is zoning and land-use reform. Palm Springs aims to revise and streamline zoning regulations to encourage the development of affordable housing. This includes reducing restrictions on density, which will allow for the construction of multi-family units and mixed-use developments in areas that are currently underutilized. The city will focus on identifying and removing barriers in areas that have higher development potential, allowing for more efficient and cost- effective housing projects. This includes revising minimum lot size requirements and height limitations to enable developers to build more affordable units per acre, thereby lowering construction costs (Palm Springs Housing Element, 2021).
In addition to zoning changes, the city will work to create incentives for affordable housing development. This may include offering tax credits, fee reductions, and density bonuses to developers who build affordable housing projects. Palm Springs will also explore innovative funding mechanisms, such as public-private partnerships and low-income housing tax credits (LIHTC), to make affordable housing projects financially viable. These incentives can help bridge the gap between the costs of development and what low-income residents can afford to pay in rent (Palm Springs Housing Element, 2021).
Palm Springs will also focus on increasing the availability of funding for affordable housing. While federal programs like the Community Development Block Grant (CDBG) provide essential resources, the city plans to leverage additional sources of funding, including state and local resources, to maximize the number of affordable housing units built. The city will seek to secure additional state funding and competitive grants for affordable housing development and rehabilitation projects (Palm Springs Housing Element, 2021).
Addressing NIMBYism (Not In My Backyard) is another important element of the strategy. Palm Springs recognizes that some residents may resist affordable housing developments due to concerns about density, property values, and neighborhood character. To address these concerns, the city will engage in community outreach and education efforts to raise awareness about the need for affordable housing and its positive impact on the community. Public engagement strategies will include community meetings, informational campaigns, and collaboration with neighborhood associations and local Item 2A - Page 180
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organizations to foster a more welcoming attitude toward affordable housing (Palm Springs Housing Element, 2021).
Finally, improving access to transportation is essential to ensuring that affordable housing projects are not only available but also connected to jobs, healthcare, and other essential services. The city will work to enhance the public transportation network by expanding bus routes and increasing access to job centers, especially in areas where affordable housing is being developed. This will ensure that residents in affordable housing communities have access to the resources they need to thrive (Palm Springs Housing Element, 2021).
Through these strategies, Palm Springs aims to remove or ameliorate the barriers to affordable housing by improving the regulatory environment, increasing funding and incentives for affordable housing development, and engaging the community in a collaborative effort to address the city’s housing needs.
The goal is to ensure that all residents, regardless of income level, have access to safe, affordable, and well-located housing (Palm Springs Housing Element, 2021).
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SP-60 Homelessness Strategy – 91.215(d)
Reaching Out to Homeless Persons and Assessing Their Individual Needs In Palm Springs, the strategy for addressing homelessness includes a comprehensive approach to reaching out to homeless individuals and assessing their specific needs. The city recognizes that homelessness is not a one-size-fits-all issue and that each individual experiencing homelessness has unique challenges that need to be addressed to effectively move toward stable housing.
Palm Springs collaborates with various local agencies, nonprofits, and shelters to identify and engage individuals experiencing homelessness. These organizations conduct outreach in areas where homeless persons are known to gather, such as parks, encampments, and areas near public transportation.
Outreach efforts are designed to establish trust and connect individuals with the appropriate services they need, including shelter, mental health counseling, substance use treatment, and housing assistance.
Once contact is made, case managers conduct assessments of each person’s needs. This process includes understanding their housing history, health status, mental health needs, and any barriers to securing stable housing. The goal of this assessment is to create a tailored plan for each individual that connects them with the appropriate resources and services, such as rapid rehousing programs, transitional housing, and permanent supportive housing.
Palm Springs' approach is rooted in the housing-first model, which focuses on providing stable housing without preconditions. Once housing is secured, additional services are provided to address other needs, such as healthcare, employment, and social services. This approach is shown to be effective in helping individuals regain stability and reintegrate into the community.
The city’s partnership with local service providers also ensures that those who are at the highest risk of homelessness, including veterans, individuals with disabilities, and families with children, receive specialized attention. Additionally, the outreach strategy incorporates coordination with regional agencies, ensuring that the city's efforts align with broader regional homelessness prevention strategies.
By focusing on outreach and individual assessments, Palm Springs aims to provide more personalized and effective solutions for those experiencing homelessness, ensuring that all residents have the opportunity to regain stability and thrive in the community.
Addressing Emergency and Transitional Housing Needs
Palm Springs has developed a comprehensive strategy to address the emergency and transitional housing needs of its homeless population, as detailed in the city's Housing Element (HE). The strategy acknowledges that homelessness is a complex issue that requires immediate intervention, as well as long-term solutions, to help individuals and families regain stability and independence.
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In Palm Springs, emergency housing primarily consists of shelters that provide immediate relief to individuals and families who are experiencing homelessness. These shelters are designed to be a temporary solution, providing safe spaces for individuals to rest, eat, and access essential services such as showers, security, and case management. The Palm Springs Housing Element emphasizes the importance of ensuring the availability of emergency housing year-round, as this is critical to reducing homelessness, especially during times of crisis or extreme weather conditions. Shelters in Palm Springs are often funded through a combination of federal, state, and local resources, with a specific focus on meeting the needs of the most vulnerable populations, including veterans, families with children, seniors, and individuals with disabilities.
To strengthen its emergency housing response, Palm Springs collaborates with local organizations and shelters, such as Coachella Valley Rescue Mission and The Well in the Desert, which have dedicated programs to support individuals experiencing homelessness. Through this collaboration, the city ensures that shelter resources are aligned with the needs of the community. Furthermore, the city is committed to improving the accessibility of emergency housing for underserved populations, ensuring that individuals can receive the services they need, regardless of their background or specific needs (Palm Springs Housing Element, 2021).
In addition to emergency housing, Palm Springs recognizes the necessity of transitional housing as a critical element in helping individuals move from homelessness to permanent housing. Transitional housing provides individuals and families with a temporary but stable living environment while they work on regaining self-sufficiency and preparing for long-term housing stability. These programs often serve people who need longer-term assistance, such as those with mental health challenges, substance use issues, or individuals reentering the community after being incarcerated.
The city aims to expand transitional housing options by working with developers, nonprofit organizations, and other stakeholders to create housing opportunities that support individuals and families in their transition to permanent housing. Transitional housing programs in Palm Springs offer much-needed support through intensive case management services, such as mental health counseling, substance abuse treatment, job readiness programs, and financial education. These services are crucial for addressing the underlying causes of homelessness and providing individuals with the tools necessary for independent living (Palm Springs Housing Element, 2021).
Palm Springs is also focused on increasing the availability of transitional housing units through collaborations with housing developers and local government initiatives. For instance, the Palm Springs Housing Authority is working on rehabilitating vacant or underutilized properties to provide transitional housing options for families with children, seniors, and individuals with disabilities. These efforts are designed to reduce the length of time individuals remain in temporary housing and help them transition into permanent, stable housing.
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such as sobriety or employment. Once an individual or family is housed, case management and supportive services are provided to address other challenges they may face, such as mental health issues, substance abuse, or lack of employment. This model has proven to be effective in improving long-term housing outcomes for individuals who have experienced chronic homelessness.
By prioritizing permanent housing, Palm Springs aims to break the cycle of homelessness and provide individuals with a stable foundation to rebuild their lives. The Palm Springs Housing Element outlines the city’s commitment to increasing the supply of permanent supportive housing, which combines affordable housing with supportive services for individuals with disabilities or other special needs.
Palm Springs works closely with regional agencies, local service providers, and nonprofit organizations to coordinate homelessness services and ensure that individuals and families are connected to the resources they need. The city has established partnerships with key regional homelessness response networks, such as the Coachella Valley Continuum of Care (CVCoC), which works to create a coordinated system of services to address homelessness in the region. This regional collaboration ensures that Palm Springs’ efforts align with broader regional homelessness strategies and that resources are effectively utilized.
Additionally, the city collaborates with local housing developers, landlords, and housing authorities to increase the availability of permanent supportive housing units. These collaborations also help ensure that homeless individuals are not only provided with shelter but also have access to long-term housing options that offer stability and support.
While Palm Springs has made significant progress in addressing emergency and transitional housing needs, there are ongoing challenges related to the availability of affordable housing, limited funding, and the need for more supportive services. The city continues to seek additional funding through state and federal programs, including the California Homeless Housing Assistance and Prevention Program (HHAP), to expand its housing and service offerings.
Looking ahead, Palm Springs is committed to increasing its stock of emergency shelters and transitional housing units, as well as developing more permanent supportive housing. The city will also continue to advocate for more resources for homelessness prevention, which is a critical aspect of reducing the overall number of people experiencing homelessness.
Overall, Palm Springs’ strategy to address emergency and transitional housing needs, combined with its ongoing commitment to the Housing-First model and collaborative partnerships, is designed to create lasting solutions to homelessness and improve the well-being of individuals and families throughout the community (Palm Springs Housing Element, 2021).
Facilitating the Transition to Permanent Housing and Independent Living Assisting homeless individuals and families in transitioning to permanent housing and achieving independent living is a central focus of Palm Springs' homelessness strategy. The City implements a Item 2A - Page 184
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range of programs and services designed to reduce the duration of homelessness and support long-term stability.
A key component of this effort is the adoption of the Housing First approach, which prioritizes providing permanent housing to homeless individuals without preconditions. Once housed, individuals receive tailored supportive services to address issues such as mental health, substance abuse, and employment.
This approach has been shown to improve housing retention rates and overall well-being.
To facilitate access to affordable housing units, Palm Spring collaborates with local housing authorities and developers to increase the availability of low-income housing. This includes advocating for the inclusion of affordable units in new developments and utilizing housing vouchers to make existing units more accessible to homeless individuals. By expanding the affordable housing inventory, the City aims to provide more options for those transitioning out of homelessness.
Preventing a return to homelessness is also a priority. The City offers follow-up services to recently housed individuals, including ongoing case management and connection to community resources. By providing continued support, Palm Spring helps ensure that individuals maintain their housing and continue progressing toward self-sufficiency.
Preventing Homelessness Among Low-Income Individuals and Families Palm Springs has developed a comprehensive strategy to prevent homelessness among low-income individuals and families. The city’s approach focuses on early intervention, supportive services, and affordable housing initiatives to help individuals and families avoid homelessness before it occurs. The city collaborates with a variety of public and private agencies, including the Coachella Valley Continuum of Care (CVCoC), Palm Springs Housing Authority, and local non-profits, to ensure that resources are efficiently allocated to those at risk of homelessness.
A key component of the city’s strategy is homelessness prevention programs, which offer emergency financial assistance to low-income individuals and families facing eviction or a loss of housing. This assistance includes rent, mortgage, and utility payments, helping individuals maintain their housing while they regain financial stability. The city also offers legal aid services through partnerships with local legal advocacy organizations to help tenants facing eviction proceedings navigate the legal system and avoid losing their homes. Additionally, case management services are provided to help individuals and families access other necessary resources, such as employment support, childcare, and mental health counseling, which can address the root causes of housing instability.
Another critical aspect of the prevention strategy is the city’s focus on affordable housing development and preservation. By increasing the availability of affordable housing units, Palm Springs helps ensure that low-income families have access to stable, affordable places to live. This effort includes working with developers to create new affordable housing units, as well as rehabilitating existing housing stock to maintain affordability. The city also employs programs like Tenant-Based Rental Assistance (TBRA) to provide financial support to low-income renters, helping them remain in stable housing. These efforts Item 2A - Page 185
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are reinforced by the city’s commitment to creating a more inclusive housing market and reducing the risk of eviction for vulnerable populations.
Through these initiatives, Palm Springs aims to reduce the number of people who fall into homelessness by providing critical support to low-income individuals and families before they experience housing instability. By focusing on prevention and offering a combination of emergency assistance, legal support, and affordable housing, the city is working to ensure that its most vulnerable residents can maintain stable housing and avoid the hardships of homelessness. The city’s integrated approach to prevention ensures that families can access the services and resources they need to thrive in the community.
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SP-65 Lead based paint Hazards – 91.215(i)
Actions to Address Lead-Based Paint (LBP) Hazards and Increase Access to Lead-Free Housing Palm Springs recognizes the serious health risks associated with lead-based paint (LBP) hazards, particularly for young children and pregnant women. The city is committed to addressing lead-based paint hazards in its housing stock, especially in homes built before 1978 when the use of lead-based paint was banned. In line with the Consolidated Plan and the Housing Element (HE), Palm Springs has established a strategy to reduce the exposure of its residents to lead-based paint and increase access to lead-free housing, particularly for low-income households, which are more likely to live in older housing units that may contain lead-based paint.
One of the key actions that Palm Springs is taking to address lead-based paint hazards is conducting lead risk assessments and abatement in homes that are part of the city's affordable housing stock, particularly those built before 1978. This is a priority for the city, as low-income households are more likely to live in older homes that may contain lead-based paint, putting children and pregnant women at greater risk. Through partnerships with federal, state, and local agencies, Palm Springs can access funding to help mitigate the dangers of lead-based paint. For example, the city works with the California Department of Public Health (CDPH) to provide lead hazard reduction programs that include risk assessments, abatement, and education for property owners and tenants.
Additionally, Palm Springs is committed to ensuring that any new housing developed or rehabilitated within the city meets modern environmental standards, including being free from lead-based paint hazards. The city works with developers and contractors to promote the use of lead-safe practices during construction and rehabilitation of housing units. In cases where existing housing units are being rehabilitated, the city mandates that contractors follow federal EPA guidelines for lead-safe work practices, ensuring that families in those units are not exposed to lead dust during renovation. Palm Springs is also proactive in educating residents and landlords about the risks of lead-based paint and their rights and responsibilities under federal and state laws, including the Residential Lead-Based Paint Hazard Reduction Act and Title X. The city provides resources and information on how to identify, control, and reduce lead hazards, further ensuring the safety of its residents.
Palm Springs is dedicated to addressing lead-based paint hazards through a comprehensive strategy that includes risk assessments, abatement, education, and the promotion of lead-safe housing practices. By prioritizing the reduction of lead-based paint hazards in both existing and new housing, the city is helping to protect its most vulnerable populations from the harmful effects of lead exposure. Through continued partnerships and ongoing efforts, Palm Springs aims to create a safer living environment for all its residents, particularly those in low-income and older housing.
Relation of Actions to the Extent of Lead Poisoning and Hazards The actions taken by Palm Springs to address lead-based paint (LBP) hazards are directly related to reducing the extent of lead poisoning and minimizing exposure to lead-based paint hazards in the Item 2A - Page 187
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community. Lead poisoning is a significant public health concern, particularly for children under the age of six, as they are most vulnerable to the toxic effects of lead exposure, which can cause developmental delays, cognitive impairments, and behavioral issues. Pregnant women are also at heightened risk, as lead exposure can affect fetal development. Because older housing units built before 1978 are more likely to contain lead-based paint, it is crucial for Palm Springs to take action to prevent lead exposure, especially in low-income neighborhoods where these older homes are more prevalent.
Palm Springs’ approach to addressing LBP hazards, including conducting lead risk assessments, abatement, and education, directly targets the primary sources of lead poisoning—old, deteriorating lead-based paint and dust contamination. By identifying and mitigating lead hazards in homes built before 1978, the city reduces the likelihood of lead exposure and poisoning, particularly in households with young children and pregnant women. These actions are critical in lowering the incidence of lead poisoning in the community. Through partnerships with agencies such as the California Department of Public Health (CDPH) and the U.S. Environmental Protection Agency (EPA), Palm Springs is able to implement programs designed to reduce lead hazards and educate residents about the importance of lead-safe practices.
The city’s commitment to improving housing conditions by ensuring that newly constructed or rehabilitated housing is free from lead-based paint also plays a vital role in addressing the broader issue of lead exposure. By promoting the use of lead-safe construction methods and requiring that renovation projects follow EPA guidelines for lead-safe practices, Palm Springs ensures that both current and future residents will be protected from lead hazards. The educational campaigns and outreach efforts further enhance public awareness, empowering homeowners and renters to take proactive measures to prevent lead exposure in their homes. Collectively, these actions help reduce the risk of lead poisoning in the community and improve the overall health and safety of residents, particularly those in vulnerable populations. Through these comprehensive efforts, Palm Springs works to mitigate the harmful effects of lead exposure, contributing to a healthier and safer living environment for all.
Integration of Actions into Housing Policies and Procedures The actions taken to address lead-based paint hazards in Palm Springs are integrated into the city’s housing policies and procedures to ensure a comprehensive approach to protecting residents, particularly children and pregnant women, from the dangers of lead poisoning. The integration of these actions begins with the city’s affordable housing programs, where lead-safe practices are prioritized in both the rehabilitation and construction of housing units. The city’s Housing Element (HE), in conjunction with local policies and federal guidelines, ensures that lead-based paint hazards are identified and mitigated before individuals move into new or renovated housing.
Palm Springs' housing policies require that all housing units funded through city programs, such as those receiving CDBG or Low-Income Housing Tax Credits (LIHTC), meet modern environmental standards, including lead-safe practices. This includes conducting lead risk assessments in homes built before 1978 and ensuring that all renovations comply with federal EPA lead-safe work practices. These practices are Item 2A - Page 188
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incorporated into the city’s construction and rehabilitation procedures, ensuring that both contractors and residents are protected from lead exposure. The city also mandates that any newly constructed or rehabilitated public housing units are lead-free, in line with federal Section 504 accessibility and safety requirements.
Additionally, Palm Springs incorporates lead hazard reduction and prevention efforts into its housing management procedures. The city works with developers and contractors to ensure that lead-safe work practices are standard operating procedures during any housing development or renovation project.
These practices are outlined in contracts with housing providers and developers, reinforcing the importance of lead-safe standards. The city also educates property owners and tenants about the risks of lead-based paint, particularly in rental units and homes built before 1978, and informs them about their rights under federal and state laws. Through these integrated efforts, Palm Springs aims to reduce lead-based paint hazards and ensure that all housing policies align with the city’s commitment to providing safe, healthy homes for its residents. This comprehensive integration is essential for the city to address lead poisoning risks effectively and ensure that all residents, particularly vulnerable populations, have access to lead-free housing.
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SP-70 Anti-Poverty Strategy – 91.215(j)
Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families Palm Springs has developed a comprehensive anti-poverty strategy to reduce the number of families living at poverty levels. The city’s approach focuses on enhancing economic opportunities, increasing access to education and job training, and improving housing affordability. By addressing these key areas, Palm Springs aims to provide individuals and families with the tools they need to achieve self-sufficiency, reduce reliance on public assistance, and ultimately lift themselves out of poverty.
A major component of Palm Springs’ anti-poverty strategy is the promotion of affordable housing. High housing costs are one of the most significant barriers to economic stability for low-income families.
Through programs like the Low-Income Housing Tax Credit (LIHTC) program and Community Development Block Grants (CDBG), Palm Springs is working to increase the availability of affordable housing units. Additionally, the city works closely with developers to encourage the creation of mixed- income housing projects that provide opportunities for families to live in stable, safe, and affordable housing, which is a crucial first step toward reducing poverty. Rent assistance programs, such as Tenant- Based Rental Assistance (TBRA), also play a critical role in helping low-income families avoid homelessness and ensure they have access to safe, affordable housing.
To address the employment barriers faced by low-income families, Palm Springs has established programs aimed at providing education, job training, and workforce development. The city partners with local non-profits and agencies, such as Desert Best Friend’s Closet, to offer job training and placement services to help individuals gain skills in high-demand industries. By focusing on job readiness, career counseling, and providing access to networking opportunities, Palm Springs is helping individuals find long-term, stable employment that will help them rise above the poverty level.
Additionally, the city works with regional economic development organizations to attract businesses that provide good-paying jobs in the area.
The city’s anti-poverty strategy also includes enhancing access to healthcare and social services. Low- income families often face significant barriers to accessing healthcare, which can prevent them from being able to maintain steady employment and improve their quality of life. Palm Springs has committed to ensuring that all residents, regardless of income, have access to affordable health services through partnerships with healthcare providers like Desert Regional Medical Center and Well In The Desert.
These services address critical health needs, including mental health, substance abuse treatment, and preventative care, ensuring that families can maintain their well-being and achieve economic independence. By addressing healthcare needs, Palm Springs helps to reduce the financial strain that often traps families in poverty.
Through these initiatives, Palm Springs aims to create a more inclusive economy where all families have access to the resources and support they need to overcome poverty. By focusing on affordable housing, workforce development, healthcare access, and social services, the city is working to ensure that its residents have the tools to break the cycle of poverty and build a brighter future.
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Coordination of Anti-Poverty Goals with the Affordable Housing Plan Palm Springs has developed a strategic approach to coordinating its anti-poverty goals with its Affordable Housing Plan. The city recognizes that affordable housing is a fundamental component of the anti-poverty strategy, as it directly impacts the economic stability and well-being of low-income families.
Without access to stable, affordable housing, families are more likely to experience chronic financial hardship and face barriers to achieving self-sufficiency. Therefore, Palm Springs has integrated its housing policies with broader anti-poverty efforts to ensure that the two are mutually reinforcing.
First and foremost, the Affordable Housing Plan plays a critical role in reducing the housing cost burden for low-income families. Palm Springs has committed to expanding the supply of affordable rental and homeownership opportunities through programs like Low-Income Housing Tax Credits (LIHTC) and CDBG. These programs provide funding for the construction, rehabilitation, and preservation of affordable housing units. The city has also prioritized increasing the availability of Permanent Supportive Housing (PSH) for individuals and families at risk of homelessness. These initiatives directly address the primary concern of housing affordability for low-income families, which is essential to breaking the cycle of poverty. Stable housing provides families with the foundation needed to access employment, education, and other resources that are critical to improving their economic situation.
In addition to providing affordable housing, Palm Springs’ anti-poverty strategy focuses on ensuring that residents can afford to live in those homes once they are available. This is why the city has integrated rental assistance programs such as Tenant-Based Rental Assistance (TBRA), which helps low-income families cover rental costs and avoid eviction. Through these rental assistance programs, the city provides families with short-term financial relief while they stabilize their financial situation and work toward long-term self-sufficiency. By offering this support, Palm Springs ensures that families can remain in affordable housing while they gain the skills and opportunities needed to increase their income and eventually move out of poverty.
The city also recognizes that achieving long-term poverty reduction requires improving access to economic opportunities, which is why its affordable housing and anti-poverty strategies are designed to work together. The Affordable Housing Plan is aligned with workforce development programs that help residents of affordable housing access job training and employment opportunities. Palm Springs partners with local organizations, such as Desert Best Friend’s Closet, to offer workforce training and placement services for individuals living in affordable housing. By connecting affordable housing with employment support, the city helps ensure that residents not only have a stable place to live but also the tools to increase their income and improve their overall quality of life. This integrated approach ensures that Palm Springs’ affordable housing goals align directly with its broader anti-poverty objectives.
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SP-80 Monitoring – 91.230
Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
Palm Springs has established a robust monitoring system to ensure that activities carried out in furtherance of the Consolidated Plan and other housing and community development programs meet both the city’s goals and federal requirements. The city’s monitoring procedures focus on ensuring compliance with a variety of programmatic and regulatory standards, including those outlined in the Community Development Block Grant (CDBG) program, Low-Income Housing Tax Credits (LIHTC), and other housing assistance programs. These standards are designed to promote the efficient use of resources, ensure that outcomes are achieved, and maintain compliance with all federal, state, and local regulations.
To monitor the activities and outcomes associated with the Consolidated Plan, Palm Springs utilizes a combination of internal and external oversight mechanisms. Internally, the city assigns responsibilities for monitoring to specific departments, such as the Housing and Neighborhood Services Department, which is tasked with overseeing the implementation of the plan and coordinating between various agencies and organizations involved in housing and community development efforts. The department conducts regular reviews of progress toward achieving the goals outlined in the plan, ensuring that all activities align with the established priorities. Additionally, the city works with third-party auditors and consultants to conduct periodic evaluations of program compliance and financial management to ensure that funds are used efficiently and effectively.
The city also has specific procedures in place for ensuring long-term compliance with the various requirements of the programs involved. This includes monitoring compliance with affordable housing regulations, such as rent restrictions, tenant eligibility criteria, and tenant income certifications, particularly for projects receiving LIHTC or other rental assistance programs. Palm Springs ensures that properties remain compliant with the affordability terms for the entire period stipulated by the funding agreements, typically 30 years for LIHTC projects. Regular on-site inspections and tenant interviews are conducted to verify compliance with housing quality standards (HQS) and tenant eligibility.
Furthermore, the city ensures that minority business outreach is integrated into its procurement processes. Palm Springs actively encourages minority-owned businesses to participate in the city’s contracting opportunities, particularly for construction projects related to affordable housing development. The city monitors the effectiveness of these outreach efforts and ensures that procurement practices are inclusive and comply with federal Equal Opportunity requirements.
Additionally, Palm Springs ensures that its monitoring procedures support the comprehensive planning requirements of the Consolidated Plan. The city’s planning process includes annual performance reports to assess progress against the goals set out in the plan. These reports are submitted to the U.S.
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Department of Housing and Urban Development (HUD) and are available to the public to promote transparency and accountability. Palm Springs also conducts regular stakeholder consultations, including meetings with community members, nonprofit organizations, and other key partners, to assess the ongoing relevance of the plan’s objectives and to gather input on potential adjustments. By employing a combination of internal monitoring, third-party evaluations, and active community engagement, Palm Springs ensures that the goals of the Consolidated Plan are met while maintaining compliance with all applicable regulations and fostering inclusive economic development in the community.
Discussion
Palm Springs places a strong emphasis on monitoring the activities outlined in its Consolidated Plan and related housing programs to ensure compliance, accountability, and efficiency. The city employs a systematic approach to track the implementation of programs and projects that address housing and community development needs. This approach ensures that funds are used effectively and that the desired outcomes are achieved in alignment with the city’s goals. Key to this effort is the Housing and Neighborhood Services Department, which is responsible for overseeing the overall implementation and coordination of the Consolidated Plan. This department collaborates with various public and private partners to monitor progress and ensure that the objectives of the plan are met, with particular attention to achieving equitable outcomes for low-income and marginalized communities.
Palm Springs has established clear procedures for long-term compliance with the regulatory requirements associated with the different funding programs. This includes regular monitoring of projects funded through CDBG, Low-Income Housing Tax Credits (LIHTC), and other assistance programs.
Compliance is ensured through routine activities such as tenant income certifications, property inspections, and reviews of rent restrictions to ensure that affordable housing remains available for the required time period. The city also emphasizes maintaining high standards of housing quality by conducting on-site inspections to ensure that units meet Housing Quality Standards (HQS). These inspections help ensure that housing is not only affordable but also safe and in good condition.
Additionally, Palm Springs ensures that minority business outreach is an integral part of its procurement process for construction projects, thus promoting inclusivity and ensuring equal opportunities for all businesses.
In addition to these ongoing compliance and inspection activities, Palm Springs supports a transparent and participatory monitoring process. The city engages with stakeholders, including local community organizations, residents, and service providers, to gather feedback and monitor the progress of the Consolidated Plan. Regular public meetings, consultations, and stakeholder surveys help the city assess the effectiveness of its programs and identify areas where adjustments may be needed. Performance reports are submitted to HUD annually, and these reports are made available to the public to ensure that Palm Springs remains accountable to its residents. Through this combination of strong internal oversight, third-party evaluations, stakeholder participation, and transparent reporting, the city ensures that its housing programs remain on track and effectively address the needs of the community, especially those who are most in need.
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The AP-15 Expected Resources section outlines the anticipated financial resources available to the City of Palm Springs for the fiscal year 2025, which begins on July 1, 2025, and ends on June 30, 2026. This section highlights the primary funding sources, including federal, state, and local allocations, that will be utilized to address the city’s priority needs such as affordable housing development, lessness prevention, infrastructure improvements, and economic development initiatives.
The expected resources for fiscal year 2025 reflect the city’s commitment to maximizing available funding through strategic partnerships, leveraging additional investments, and ensuring that limited resources are allocated efficiently to serve the most vulnerable populations. By outlining projected funding levels and potential funding gaps, the AP-15 section sets the stage for how Palm Springs will implement its strategic goals, ensuring that residents have access to stable housing, essential services, and opportunities for economic advancement. This introduction provides a framework for understanding how financial resources will be utilized over the fiscal year to meet the city’s objectives and deliver impactful programs that foster community well-being and resilience.
Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected
Amount
Available
Year 1
Expected Amount
Available Remainder of
ConPlan
Narrative Description
CDBG Public -
Federal
Administration,
public services,
housing
rehabilitation
$344,683 $1,723,415 CDBG funds will be
used for housing
rehabilitation, public
services, and fair
housing programs to
benefit low- and
moderate-income
residents.
Table 48 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Federal funds allocated to Palm Springs through programs like CDBG will be strategically leveraged with a combination of private, state, and local funds to maximize the impact of these investments. This approach ensures that federal resources are used efficiently to address the city's housing and Item 2A - Page 194
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community development goals, while meeting the matching requirements set by federal programs, particularly the program.
Leveraging Private Funds
Palm Springs will collaborate with private developers, investors, and financial institutions to attract additional funding for affordable housing and community development projects. The Low-Income Housing Tax Credit (LIHTC) program is a key tool for generating private capital for the development and rehabilitation of affordable housing. LIHTC allows private investors to receive tax credits for their investments in affordable housing, which can significantly reduce the financial burden of constructing or renovating affordable housing units.
Leveraging State Funds
State resources also play a significant role in complementing federal funds for housing and community development. Programs administered by the California Department of Housing and Community Development (HCD), such as the State Housing Trust Fund and the Affordable Housing and Sustainable Communities Program, provide critical funding for affordable housing development. These programs often have matching requirements that can be satisfied using federal funds or local funds, ensuring that Palm Springs can maximize the impact of state and federal resources (Palm Springs Housing Element, 2022).
State-level tax credits and housing bond funds are also available to complement federal funding, particularly for affordable housing projects. By combining federal funds with state resources, Palm Springs can significantly increase the capacity of housing projects to meet the needs of low- and moderate-income residents (SCAG, 2020).
Leveraging Local Funds
Local funds, including Palm Springs's housing trust funds, program income, and General Fund allocations, will also play a key role in leveraging federal funding. The Palm Springs-Glendale-Pasadena Regional Housing Trust Fund (BGPRHT) is one example of a local resource that complements federal funds for affordable housing and lessness prevention. Local funds will also support infrastructure improvements, economic development projects, and public services that enhance the well-being of Palm Springs’s residents (LAEDC, 2021).
Additionally, the city can allocate General Fund revenues to projects such as public housing rehabilitation, job training, and community facilities that improve accessibility and stability for low- and moderate-income populations.
Matching Requirements
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provide additional funds to satisfy a specific percentage match for the federal allocation. However, Palm Springs remains committed to leveraging the CDBG funding with other resources, such as state, local, and private sector investments, to enhance the impact of the federal dollars and address the city’s housing, infrastructure, and community development needs. By strategically combining federal resources with other funding sources, the city will maximize the effectiveness of the allocated funds and ensure that the most vulnerable populations benefit from the programs and initiatives supported by these resources.
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If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan In Palm Springs, publicly owned land plays a critical role in addressing the housing needs identified in the Housing Element (HE). The city has several properties and vacant parcels that are suitable for affordable housing development, which aligns with the city’s goals to increase the availability of affordable housing for low-income, extremely low-income, and special needs populations.
One example of publicly owned land that could be utilized for affordable housing development is the Palm Springs Housing Authority-owned property located at 1310 North Indian Canyon Drive. This property, which is currently underutilized, has been identified as a potential site for the development of affordable housing. The city’s Housing Element emphasizes the need to increase affordable rental units, particularly for families and individuals earning 30%-50% of the Area Median Income (AMI). This site offers an ideal location for the development of affordable rental housing due to its proximity to public transportation, essential services, and employment centers, which aligns with the city's goal of reducing transportation costs and increasing access to opportunities.
Additionally, the City of Palm Springs owns several vacant lots and underutilized parcels that could be repurposed for housing projects. For example, parcel number 509-090-005 located in the Downtown District could be a prime candidate for mixed-use development, combining affordable housing with community services, such as childcare, job training, or healthcare facilities. This approach aligns with the city's focus in the Housing Element to not only create affordable housing but to also integrate supportive services that improve the overall quality of life for residents, especially those who are homeless or at risk of homelessness. The city is actively exploring partnerships with developers and non- profit organizations to utilize such sites to create housing that meets the needs of Palm Springs' most vulnerable populations, including individuals with disabilities, veterans, and families with children.
Furthermore, the Housing Element outlines the potential use of land for supportive housing for individuals experiencing homelessness and those with special needs. The city is particularly focused on the North Palm Springs area, where public properties could be utilized for permanent supportive housing. These projects would combine affordable housing with wraparound services, such as mental health counseling, substance abuse treatment, and employment support, to ensure long-term stability for residents. Palm Springs has committed to utilizing publicly owned land to address homelessness through the development of housing that is coupled with the services needed to support individuals in maintaining housing and regaining self-sufficiency.
In summary, Palm Springs' Housing Element strategically identifies publicly owned properties, such as those owned by the Palm Springs Housing Authority and vacant parcels throughout the city, as critical resources for developing affordable housing and supportive services. The city is actively working to leverage these assets to meet the increasing demand for affordable and supportive housing, with a focus on addressing homelessness and improving the overall stability and well-being of its most vulnerable residents. Through thoughtful planning and collaboration with developers and service Item 2A - Page 197
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providers, Palm Springs aims to create housing that not only meets the physical needs of residents but also provides the services and support needed to promote long-term success.
Discussion
The City of Palm Springs has strategically identified publicly owned land as a critical resource to address the housing needs outlined in the Housing Element (HE). These parcels offer significant potential for developing affordable housing projects, especially for low-income families, those with special needs, and individuals at risk of homelessness. The Housing Element emphasizes the city’s commitment to expanding its affordable housing stock, with a particular focus on units that cater to extremely low- income and low-income households. By utilizing publicly owned land, Palm Springs can not only increase the supply of affordable housing but also ensure that these housing developments are well-integrated into the community, accessible to transportation options, and near essential services like healthcare, education, and employment.
Publicly owned land, such as properties owned by the Palm Springs Housing Authority, has been identified for development into affordable housing units. For example, the 1310 North Indian Canyon Drive site is one such property that could be repurposed to provide much-needed affordable rental units. This parcel, located in an area with good access to public transit and amenities, could provide affordable housing options for families and individuals earning between 30% and 50% of the Area Median Income (AMI), which is a key priority in the city's housing strategy. The city's approach, as outlined in the Housing Element, encourages the use of these properties not only to meet housing demand but also to stimulate neighborhood revitalization and provide greater access to opportunities for lower-income residents.
In addition to general affordable housing development, Palm Springs is committed to developing supportive housing for individuals experiencing homelessness, veterans, and those with disabilities. The Housing Element specifically highlights the potential for using publicly owned properties in areas such as North Palm Springs to create permanent supportive housing units. These developments would combine affordable housing with essential services, such as mental health counseling, job training, and substance abuse treatment, to help residents maintain housing stability. This model aligns with Palm Springs’ focus on providing a holistic solution to homelessness, offering not only a roof over the head but also the services necessary to promote long-term independence and self-sufficiency. Palm Springs’ strategy for using public land to address homelessness through supportive housing ensures that vulnerable populations have access to both housing and the critical support systems they need to thrive.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal
Outcome
Indicator
Affordable Housing
Development and
Preservation
2025 2026 Housing Focus
Neighborhoods
Affordable housing
preservation and
development
TBD TBD
Homelessness
Prevention and
Housing Support
2025 2026 Housing Citywide Homelessness
prevention, outreach,
and support
TBD TBD
Community
Development and
Public Services
2025 2026 Non-
Housing
Citywide Public services for
low- and moderate-
income households
TBD TBD
Economic
Development
2025 2026 Non-
Housing
Citywide Economic
opportunities for
low/mod-income
residents
TBD TBD
Fair Housing and
Anti-Discrimination
2025 2026 Non-
Housing
Citywide Promote fair housing
education, outreach,
and compliance
TBD TBD
Table 49 – Goals Summary
Goal Descriptions
Goal Name Goal Description
Affordable Housing
Development and
Preservation
Increase the availability of affordable housing options for low- and moderate-income households, including both new construction and rehabilitation of existing units. Address the housing needs of special populations such as the elderly, disabled, and homeless individuals.
Homelessness
Prevention and
Housing Support
Provide resources and services to prevent homelessness and assist individuals and families at risk of losing their homes. Expand emergency shelter and transitional housing options and increase the availability of supportive housing.
Community
Development and
Public Services
Support community-based organizations that provide essential services such as job training, youth programs, senior services, and health care for low-income residents. Improve infrastructure in low-income neighborhoods, including parks, sidewalks, and public facilities.
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Economic
Development
Promote job creation and economic opportunities, particularly for low- and moderate-income residents, by supporting small businesses, workforce development, and job training programs.
Fair Housing and Anti-
Discrimination
Address barriers to fair housing and increase access to housing for all residents, regardless of race, color, religion, sex, disability, familial status, or national origin. Promote fair housing education, outreach, and compliance with housing laws to reduce discrimination.
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Projects
AP-35 Projects – 91.220(d)
Introduction
The AP-35 Projects – 91.220(d) section provides an overview of the specific projects and activities the City of Palm Springs will implement during the fiscal year 2025, from July 1, 2025, to June 30, 2026.
These projects are designed to address the priority needs identified in the City’s Consolidated Plan, including affordable housing, lessness prevention, public services, economic development, and infrastructure improvements.
The City will utilize funding from the Community Development Block Grant (CDBG) to support a range of initiatives that enhance the quality of life for low- and moderate-income residents. Each project aligns with the City’s strategic goals and ensures that federal resources are used effectively to meet community needs. This section outlines the funded projects, their objectives, target populations, and expected outcomes, demonstrating Palm Springs’s commitment to building a more inclusive, sustainable, and supportive community.
Projects
# Project Name
1 Residential Rehabilitation - Major Home Repair
2 Public Services - Fair Housing Program
Table 50 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
Allocation Priorities:
1. Affordable Housing Development:
Affordable housing remains a priority in Palm Springs due to high housing cost burdens, particularly for low- and moderate-income households. Over 45% of renters in the area spend more than 30% of their income on housing, which makes affordability a central concern. There is a pressing need for both new construction and the rehabilitation of existing units to ensure a stable housing supply for vulnerable populations, including seniors and individuals with disabilities.
2. Homelessness Prevention and Housing Support:
The city is experiencing a significant need for expanded emergency shelter, transitional housing, and supportive housing services. This is in response to the 239 homeless individuals recorded in the 2023 Point-In-Time (PIT) count, with seniors and individuals with disabilities being at a Commented [DS1]: Place holder
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higher risk of homelessness. As these populations often face greater barriers to housing, it is essential to address both the availability of housing and supportive services such as healthcare and job training.
3. Fair Housing Services:
Discrimination remains an issue in Palm Springs, with racial and economic class discrimination frequently reported. To address this, fair housing programs, including education, outreach, and legal assistance, are crucial. Providing legal counsel, tenant-landlord mediation services, and education initiatives helps prevent discrimination and supports access to stable housing for marginalized groups.
Obstacles to Addressing Underserved Needs:
1. Affordable Housing Shortage:
Despite efforts to increase affordable housing options, there is a continued lack of affordable units, especially for those in the extremely low- to moderate-income brackets. The high cost of land and construction, zoning constraints, and lack of available sites in prime locations contribute to this shortage. Many low-income families face a severe cost burden, making it harder for them to afford housing without assistance.
2. Accessibility Barriers for Disabled Populations:
Many disabled individuals in Palm Springs face challenges finding accessible housing. Though policies exist to support the development of accessible housing, the supply is still insufficient to meet the needs of this population. Modifications to existing housing stock are often needed, which can be costly and difficult to implement.
3. Economic Constraints and Income Inequality:
The significant gap between median household income and the costs of living, particularly for renters, creates economic barriers to affordable housing. Families, especially those with children and single-person households, face additional challenges in securing stable housing due to rising rents and the limited availability of affordable rental options.
4. Limited Resources for Specialized Housing for Vulnerable Populations:
There is a gap in housing options for people affected by domestic violence, people with disabilities, and seniors. While programs and supportive services exist, the availability of specialized housing, such as transitional housing for victims of domestic violence or accessible units for seniors, is limited. Expanding these options requires increased funding and strategic partnerships with nonprofits and service organizations.
Addressing these needs will require continued collaboration between government entities, non-profit organizations, and the community to create a more inclusive and affordable housing landscape in Palm Springs.
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AP-38 Project Summary
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Program Source of
Funds
Uses of Funds Expected
Amount
Available
Year 1
Expected
Amount
Available
Remainder of
ConPlan
Narrative Description
Residential
Rehabilitation - Major
Home Repair
CDBG
(Community
Development
Block Grant)
Grants for home
repairs to qualified
low- to moderate-
income homeowners.
$292,981 $1,171,924 The program provides grants to
qualified homeowners for home
repairs that address code
deficiencies, eliminate blight, and
improve accessibility. The grants,
with a maximum of $35,000 per
household, aim to improve living
conditions for low-income
residents.
Fair Housing Program CDBG Services including
anti-discrimination
investigations,
landlord/tenant
mediation, and fair
housing education.
$51,702 $206,828 This program promotes fair
housing rights and
landlord/tenant services for low-
and moderate-income
households. It includes
workshops, training, legal
assistance, and housing
discrimination audits to ensure
equal access to housing for all
residents.
Public Services -
Homeless Prevention
CDBG,
Local/State
Grants
Provide emergency
shelter, transitional
housing, and
supportive services.
$0 $0 This program addresses
homelessness by providing
emergency shelter and supportive
services. The funds will be used to
support programs that aim to
prevent homelessness, provide
housing support, and help
individuals secure stable, long-
term housing.
Economic
Development - Job
Creation/Retention
CDBG, Private
Investments
Employment training,
job placement, and
business support
services.
$0 $0 This program focuses on job
creation and retention for low-
and moderate-income residents. It
supports local businesses,
workforce development, job
training, and small business loans
to improve economic
opportunities and reduce
unemployment in underserved
communities.
Infrastructure
Improvements
(Street/Alley
Improvements)
CDBG, Local
Budget
Improve streets,
alleys, and other
infrastructure in low-
income
neighborhoods.
$0 $0 Funding will be used for improving
infrastructure in underserved
neighborhoods. The project will
focus on street paving, alley
rehabilitation, and other
necessary upgrades that help
improve accessibility and safety in
low-income communities.
Affordable Housing
Development
Federal/State
Housing Funds
Construction and
rehabilitation of
affordable housing
units.
$0 $0 The program aims to increase the
availability of affordable housing
units in Palm Springs, particularly
for low- and moderate-income
households. This includes new
construction as well as the
rehabilitation of existing
affordable housing units to
improve quality and affordability.
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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed In Palm Springs, the geographic distribution of resources and assistance is primarily focused on areas with high concentrations of low-income and minority populations. These areas are identified based on data from the U.S. Census Bureau, American Community Survey (ACS), and the City’s own housing and demographic assessments. The goal is to ensure that federal funds, including CDBG and other housing resources, are allocated to neighborhoods that need the most support to address issues of affordable housing, infrastructure, and community services. These areas are characterized by both economic need and a high proportion of minority residents.
Areas of Low-Income Concentration:
1. Low-Moderate Income Areas (Low-Mod Areas):
The City of Palm Springs has identified certain neighborhoods where more than 51% of the population is classified as low- and moderate-income (Low/Mod). These neighborhoods are prioritized for assistance due to their high levels of poverty and limited access to affordable housing.
o These areas will benefit from housing rehabilitation programs, street and infrastructure improvements, and public services that aim to improve overall quality of life and reduce economic disparity.
2. Economic and Housing Distress Areas:
Specific neighborhoods within the city, such as those near downtown or in more economically distressed parts of the city, face additional challenges. High levels of overcrowding and substandard housing are common in these areas, making them priority targets for intervention.
Programs focused on residential rehabilitation and accessibility improvements will be directed here.
Areas of Minority Concentration:
1. Hispanic and Black Communities:
The areas with higher concentrations of Hispanic and Black residents are prioritized for fair housing services, job creation, and community development programs. These populations often experience higher rates of housing discrimination and economic disadvantage. o Assistance will include expanding affordable housing options, providing fair housing education, legal support, and creating job development programs to empower minority communities.
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2. Neighborhoods with Diverse Demographics:
Some neighborhoods within Palm Springs, such as those in the southern part of the city, have a mix of racial and ethnic minorities. These areas face challenges related to both income and housing access. Ensuring that these neighborhoods receive fair housing support, infrastructure investment, and housing development is a key component of the city's strategy. o Special attention will be given to providing culturally sensitive services and outreach to increase housing opportunities for marginalized groups.
Strategic Goals:
1. Affordable Housing and Homelessness Prevention:
The City will continue to focus resources on increasing the availability of affordable housing units and providing homelessness prevention services, particularly in the Low-Mod and minority-concentrated areas.
2. Infrastructure and Community Services:
Investment in infrastructure, such as street and alley improvements, water and sewer treatment, and sidewalk upgrades, will be focused in areas with high concentrations of poverty and minority residents to improve living conditions and accessibility.
3. Economic and Educational Opportunities:
Economic development programs, job training, and small business support will be targeted to minority communities and low-income neighborhoods to enhance economic mobility and job retention.
The City of Palm Springs will direct its resources toward neighborhoods with high concentrations of low- income and minority populations. These efforts will focus on enhancing the quality of housing, expanding economic opportunities, and addressing infrastructure needs to create a more inclusive and equitable community for all residents. By focusing on these targeted areas, the City ensures that federal funds are effectively used to alleviate disparities and improve the living conditions for vulnerable populations.
Geographic Distribution
Target Area Percentage of Funds
Downtown Palm Springs 60%
Desert Highlands/Gateway 10%
Demuth Park/Veterans Tract 10%
Lawrence Crossley Neighborhood 10%
Other Low-Income Neighborhoods 10%
Table 51 - Geographic Distribution
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Rationale for the priorities for allocating investments geographically The primary rationale for geographically allocating investments in Palm Springs centers on addressing the needs of neighborhoods with a high concentration of low-income households and minority populations. These areas are often faced with housing cost burdens, overcrowding, and substandard housing conditions. Focusing investments in these neighborhoods ensures that resources are directed where they are most needed, helping to address disparities in housing quality, access to amenities, and economic opportunities.
Certain neighborhoods in Palm Springs have experienced historical disinvestment, which has led to economic instability and housing challenges for their residents. By prioritizing these areas for investment, the city seeks to rectify past inequities, promote community revitalization, and provide stability for current residents. This approach ensures that revitalization efforts are done thoughtfully, preventing the displacement of long-time residents while improving living conditions and opportunities for all.
Affordable housing remains a critical issue in Palm Springs, with many areas experiencing a shortage of affordable units. Investing in neighborhoods with the greatest demand for affordable housing, such as Downtown Palm Springs, aims to increase housing availability and improve the quality of existing homes. This ensures that low- and moderate-income residents have access to safe, affordable housing options.
Economic disparities are also prevalent in many of the city’s most underserved neighborhoods. In these areas, investments in job creation, workforce development, and support for local businesses are essential to promote economic empowerment. By focusing efforts on areas like Downtown Palm Springs, the city aims to reduce unemployment and provide opportunities for economic mobility.
Infrastructure improvements are another key area of focus, particularly in neighborhoods with inadequate services. Many low-income communities in Palm Springs lack access to quality infrastructure, which affects residents' overall quality of life. Investments in improving streets, drainage systems, and sidewalks in these neighborhoods ensure that all residents, regardless of income level, have access to essential services and safe living environments.
Vulnerable populations, such as seniors, individuals with disabilities, and families with children, are often concentrated in these priority neighborhoods and are more likely to face housing instability.
Ensuring that these areas receive targeted investments in accessible housing and supportive services is critical for preventing displacement and improving the quality of life for these residents.
The decision to prioritize these specific neighborhoods also reflects the input from the community.
Through public hearings, meetings, and consultations, residents in these areas have expressed the need for more affordable housing, improved infrastructure, and better economic opportunities. By responding to these needs, Palm Springs ensures that the investments directly align with the priorities of the community.
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Discussion
The Geographic Distribution of resources and assistance in Palm Springs is strategically designed to focus on areas with the greatest need for housing, infrastructure improvements, and economic development. The allocation of funds will target neighborhoods that are home to a high concentration of low-income and minority populations, as well as those that have faced historical disinvestment. This ensures that resources are directed toward areas where they can have the most significant impact, helping to alleviate disparities in housing quality, access to essential services, and economic opportunities.
Palm Springs' efforts to direct assistance to these neighborhoods are rooted in the understanding that certain areas—particularly those in the southern and eastern parts of the city—are struggling with issues such as substandard housing, overcrowding, and high housing cost burdens. Many of these neighborhoods, such as Downtown Palm Springs, Desert Highlands/Gateway, and Demuth Park/Veterans Tract, contain a large proportion of low- and moderate-income residents, many of whom also belong to minority groups. By investing in these areas, the city aims to address these inequities and ensure that residents have access to the resources they need to improve their living conditions.
Downtown Palm Springs is one of the areas most in need of investment, with a concentration of low- income households and a lack of affordable housing. Investments will focus on increasing the availability of affordable housing, improving the quality of existing homes, and revitalizing the neighborhood through infrastructure improvements. This is particularly important given the rising cost of housing in the city and the displacement risks faced by low-income residents.
Desert Highlands/Gateway and Lawrence Crossley Neighborhoods have experienced historical challenges related to urban policies that excluded low-income and minority residents from accessing resources. These areas will receive targeted investments aimed at correcting these historical injustices by providing affordable housing, improving infrastructure, and offering economic development opportunities. These investments aim to build a more equitable future for these historically underserved populations.
In addition to housing development and infrastructure improvement, the city is also focusing on enhancing economic opportunities in these neighborhoods. Job creation programs, job training, and small business support will be critical to addressing the higher unemployment rates and economic instability that many low-income residents face. By fostering economic empowerment in these communities, Palm Springs can help ensure that residents have the resources they need to thrive.
The city is committed to ensuring that these investments are made in consultation with the affected communities. Public outreach and feedback from residents through surveys, public hearings, and community meetings have played an essential role in determining which neighborhoods should receive priority. This community-driven approach ensures that the allocation of resources aligns with the needs and priorities of the people who live in these areas.
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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The AP-55 Affordable Housing – 91.220(g) section outlines the City of Palm Springs’s goals and strategies for expanding and preserving affordable housing during the fiscal year 2025. Recognizing the growing need for affordable housing options, the City is committed to using federal funds from the Community Development Block Grant (CDBG) to support affordable housing initiatives for low- and moderate- income households, including special needs populations and those experiencing lessness.
This section highlights the City’s efforts to increase the availability of affordable rental units, provide rental assistance to vulnerable residents, and ensure long-term housing stability through partnerships with developers, nonprofit organizations, and community stakeholders. The AP-55 Affordable Housing section reflects Palm Springs’s dedication to addressing housing challenges, preventing displacement, and fostering inclusive communities where all residents can thrive.
Category Number of Households to be Supported
Less 150
Non-Less 200
Special-Needs 50
Total 400
Table 52 - One Year Goals for Affordable Housing by Support Requirement
Support Type Number of Households
Rental Assistance 2,000
The Production of New Units 0
Rehab of Existing Units 8
Acquisition of Existing Units 0
Total 2,008
Table 53 - One Year Goals for Affordable Housing by Support Type
Discussion
The AP-55 Affordable Housing – 91.220(g) section outlines the City of Palm Springs’s strategic goals and initiatives aimed at expanding and preserving affordable housing throughout the fiscal year 2025. With increasing pressure on the availability of affordable housing, the city has recognized the growing need to address housing disparities, especially for low- and moderate-income households, seniors, individuals with disabilities, and other special-needs populations. The city is committed to utilizing federal funds from the Community Development Block Grant (CDBG) program to fund a variety of affordable housing initiatives designed to support these vulnerable groups.
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This section reflects Palm Springs' dedication to creating affordable housing opportunities, preventing displacement, and promoting long-term housing stability for its residents. The efforts outlined in this section emphasize the importance of rental assistance, the rehabilitation of existing housing stock, and the need for strategic partnerships to address the city's diverse housing needs. The initiatives in this plan seek to meet the housing needs of vulnerable populations while fostering a community where all residents have access to safe, affordable, and quality housing.
One Year Goals for Affordable Housing by Support Requirement:
The city’s goals for affordable housing in 2025 focus on meeting the housing needs of various household types, prioritizing those in the most critical need of support.
Category Number of Households to be Supported
Less 150
Non-Less 200
Special-Needs 50
Total 400
These goals reflect the city’s commitment to assisting households at various income levels. The "Less" category refers to households that fall under 50% of the Area Median Income (AMI), which often struggle to access affordable housing without substantial assistance. The "Non-Less" category includes households with income levels between 50% and 80% of AMI, who also face challenges in securing affordable housing. Lastly, the "Special-Needs" category is aimed at households with specific needs, such as elderly residents, individuals with disabilities, and families facing homelessness. By targeting these specific populations, Palm Springs ensures that resources are allocated where they are most needed.
One Year Goals for Affordable Housing by Support Type:
In addition to support for various household categories, the city also sets goals based on the types of support required for housing assistance. The following table outlines the number of households to be supported by different types of affordable housing assistance:
Support Type Number of Households
Rental Assistance 2,000
The Production of New Units 0
Rehab of Existing Units 8
Acquisition of Existing Units 0
Total 2,008
The focus on rental assistance highlights the city’s commitment to providing immediate relief to households that are cost-burdened, meaning they spend more than 30% of their income on housing.
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With 2,000 households targeted for rental assistance, the city plans to alleviate housing cost burdens and help maintain housing stability, particularly for low-income renters. This assistance is critical for addressing housing insecurity and preventing homelessness.
While the city is not currently planning to produce new affordable housing units in the 2025 fiscal year, it remains focused on preserving and enhancing the existing affordable housing stock through rehabilitation. The 8 households targeted for rehabilitation will benefit from programs that provide grants for major home repairs, improving the quality and safety of homes in need of upgrades. These programs will primarily target low-income homeowners and ensure that existing affordable units continue to serve the community.
There is currently no plan for the acquisition of existing units, as the focus is on maintaining and improving the existing stock and providing direct rental assistance.
Palm Springs is fully committed to addressing its affordable housing challenges through targeted investments in rental assistance, the rehabilitation of existing housing, and support for special-needs populations. The initiatives laid out in the AP-55 Affordable Housing section reflect a strategic approach to addressing the growing housing needs of low- and moderate-income households. With federal funding from the CDBG program, the city aims to provide both immediate housing support and long- term solutions that will help maintain housing stability for vulnerable residents. By focusing on rental assistance, rehabilitation, and special-needs housing, Palm Springs is fostering a more inclusive, sustainable, and equitable housing landscape. These efforts are a crucial part of the city’s broader mission to ensure that all residents, regardless of income or background, have access to safe, affordable housing.
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AP-60 Public Housing – 91.220(h)
Introduction
The AP-60 Public Housing – 91.220(h) section of the Consolidated Plan outlines the City of Palm Springs’ strategies and goals concerning public housing. This section aims to provide a detailed overview of the condition, needs, and planned improvements of public housing in the city, while also addressing the needs of low- and moderate-income residents who depend on public housing and housing choice voucher programs. Public housing plays a critical role in ensuring that all residents, especially those with the lowest incomes, have access to safe, decent, and affordable housing.
Palm Springs has a limited number of public housing units compared to the growing need, which includes both the preservation of existing units and the improvement of housing quality for low-income households. This section outlines the city’s approach to ensuring that its public housing programs continue to provide sustainable, quality living environments and to address any barriers that may affect access to housing for vulnerable populations, such as seniors, individuals with disabilities, and families facing homelessness.
Additionally, the city is committed to ensuring that public housing programs are integrated into the community and provide residents with access to essential services, economic opportunities, and fair housing practices. By leveraging federal and state resources, the city aims to create long-term solutions to housing instability and support efforts for inclusive, resilient, and thriving communities. The city's goals include improving the overall quality of public housing, expanding housing opportunities, and removing any barriers to accessing these crucial housing resources.
Discussion
The AP-60 Public Housing – 91.220(h) section of the Palm Springs Consolidated Plan addresses the city’s efforts and strategies regarding public housing and how it plans to expand, preserve, and improve its public housing stock. Public housing plays a crucial role in ensuring that low-income families, seniors, individuals with disabilities, and other vulnerable populations have access to safe, stable, and affordable housing. The city has committed to leveraging federal and state resources to enhance the quality of public housing, improve accessibility, and expand support services for those living in public housing units.
In Palm Springs, public housing programs face significant challenges, including high demand for affordable housing, aging housing stock, and limited resources for major repairs and renovations.
However, the city has made strides in addressing these issues by prioritizing rehabilitation and maintenance of existing public housing units and working with nonprofit organizations and housing developers to increase housing opportunities. Palm Springs also focuses on providing supportive services to residents of public housing, such as access to employment training, healthcare, and educational opportunities, ensuring that the city’s public housing efforts are not only about providing shelter but also improving the overall quality of life for residents.
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Challenges in Public Housing:
Palm Springs, like many cities, faces several challenges related to public housing. One of the main concerns is the aging of public housing units, many of which were constructed decades ago and are in need of significant repairs and modernization. This includes upgrades to plumbing, electrical systems, and accessibility features, particularly for senior residents or people with disabilities.
Additionally, the demand for public housing exceeds the available supply, leaving many low-income families on long waiting lists for assistance. This highlights the need for more affordable housing units, especially for households earning less than 50% of the Area Median Income (AMI), who are the most likely to qualify for public housing.
Strategies to Address Housing Needs:
The Palm Springs Housing Element outlines several key strategies to address these public housing challenges:
Rehabilitation of Public Housing Units: To improve the quality of life for residents, the city is focusing on the rehabilitation of its existing public housing stock. This includes repairing aging units, addressing issues of overcrowding, and ensuring that homes meet modern health and safety standards. The city is committed to providing accessible and safe living conditions for all residents, particularly those with disabilities or special needs.
Expanding Public Housing Options: While the city is not currently focusing on building new public housing units, it aims to expand affordable housing through partnerships with private developers, non- profit organizations, and state or federal agencies. These partnerships are essential for increasing the availability of affordable rental units and ensuring that public housing options are available for the city’s most vulnerable populations.
Rental Assistance Programs: Palm Springs is utilizing rental assistance programs, such as Housing Choice Vouchers (Section 8), to help low-income families access housing in the private rental market. This program provides support for families who cannot afford market-rate housing, allowing them to rent homes in the community while paying a portion of their income toward rent.
Supportive Services: In addition to providing housing, the city is focused on offering supportive services to public housing residents. These services include access to job training, healthcare, education programs, and legal assistance. The goal is to ensure that public housing residents have the resources they need to become self-sufficient and improve their long-term housing stability.
Addressing Special Needs Populations: Palm Springs is particularly focused on supporting special needs populations, including seniors, people with disabilities, and individuals experiencing homelessness.
Many of these residents require housing that is not only affordable but also accessible and equipped with supportive services. The city is working to integrate these needs into its public housing strategy by Item 2A - Page 213
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offering more accessible units and ensuring that residents can remain independent in their homes for as long as possible.
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AP-65 less and Other Special Needs Activities – 91.220(i) Introduction
The AP-65 Less and Other Special Needs Activities – 91.220(i) section of the Consolidated Plan outlines the City of Palm Springs' strategies for addressing the housing and service needs of special populations, with a focus on individuals who are experiencing barriers to stable housing and economic security. This includes populations such as individuals with disabilities, seniors, persons experiencing homelessness, individuals at risk of homelessness, victims of domestic violence, and other vulnerable groups.
Palm Springs is committed to ensuring that its housing strategies are inclusive, providing not only affordable housing but also the necessary services to help these populations maintain stable housing and improve their quality of life. Special needs populations often face challenges related to accessibility, affordability, and access to essential services such as healthcare, employment opportunities, and legal support. As such, Palm Springs has developed a variety of programs designed to meet the unique needs of these groups, both through housing solutions and supportive services.
This section highlights the city’s goals for expanding housing options for these populations, improving the accessibility of existing housing, and providing critical support services. Palm Springs is also focused on collaborating with local agencies, nonprofits, and other stakeholders to ensure that the needs of special populations are met comprehensively, fostering an environment where all residents, regardless of their circumstances, can thrive. The city recognizes that addressing the needs of these groups requires targeted and strategic interventions, as well as continuous engagement with the community to identify emerging needs and adjust services accordingly.
Describe the jurisdictions one-year goals and actions for reducing and ending lessness including
The City of Palm Springs’s one-year goals and actions for reducing and ending lessness include several initiatives focused on reaching out to less persons, particularly those who are unsheltered, and assessing their individual needs.
he City of Palm Springs has developed a comprehensive set of goals and actions for reducing and ultimately ending homelessness within the community. These initiatives are designed to address both immediate needs and long-term solutions, ensuring that individuals experiencing homelessness, particularly those who are unsheltered, have access to housing and supportive services.
Outreach to Unsheltered Persons:
One of the key components of the city's strategy is outreach to individuals who are unsheltered. Palm Springs recognizes that reaching out to people who are living on the streets or in places not meant for human habitation is critical for ensuring they receive the help and resources they need to exit Item 2A - Page 215
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homelessness. The city will expand outreach efforts through partnerships with local shelters, nonprofit organizations, and service providers who specialize in working with unsheltered individuals. These outreach teams will assess the needs of each person and connect them with appropriate services, including emergency shelter, medical care, and housing resources.
Assessment of Individual Needs:
Once individuals are engaged through outreach efforts, the next step is conducting a thorough assessment of their needs. This includes understanding their specific barriers to housing, whether they are related to mental health, substance use, employment, or physical disabilities. The goal is to create a tailored plan for each person that provides the right services and interventions to help them move from homelessness to stable housing. The assessments will also help identify individuals who are at risk of becoming homeless, enabling proactive interventions to prevent homelessness before it occurs.
Increased Access to Emergency Shelters:
In the short term, Palm Springs is focused on ensuring that more individuals have access to emergency shelter. The city will work to increase the number of available shelter beds and ensure that shelters are equipped with the necessary resources to support individuals and families in crisis. This includes providing food, case management, and other supportive services that are essential for helping individuals stabilize and prepare for a transition to permanent housing.
Rapid Re-Housing and Supportive Housing Programs:
To help individuals exit homelessness quickly, the city will expand its rapid re-housing programs, which provide short-term rental assistance and supportive services to help individuals move into permanent housing. Rapid re-housing is a critical tool for reducing the length of time individuals remain homeless.
Palm Springs will also continue to invest in permanent supportive housing (PSH), which is a long-term solution for individuals with disabilities and chronic health issues who require ongoing support to maintain housing stability.
Coordinated Entry System (CES):
A key element of the city's strategy is the use of a Coordinated Entry System (CES) to streamline the process of accessing housing and services. CES helps ensure that individuals experiencing homelessness are connected to the right resources as quickly as possible. It coordinates intake, assessments, referrals, and case management, making the system more efficient and effective in addressing homelessness.
Collaboration with Local Organizations:
The City of Palm Springs is committed to working closely with local organizations that specialize in homelessness prevention, shelter services, and housing. By collaborating with these groups, the city can maximize resources, avoid duplication of services, and ensure that individuals receive comprehensive, Item 2A - Page 216
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wraparound support. This includes partnerships with nonprofit housing providers, mental health services, substance abuse treatment centers, and employment training programs.
Prevention of Homelessness:
The city is also focused on preventing homelessness by addressing the underlying causes that contribute to housing instability. Palm Springs will invest in programs that provide financial assistance for rent, utilities, and other expenses to prevent eviction. These programs will target households that are at imminent risk of homelessness and provide them with the resources they need to stay in their homes.
One-Year Goals:
• Outreach and Engagement: Increase outreach to unsheltered individuals, with the goal of reaching at least 500 individuals in the first year, offering assessments, housing referrals, and access to supportive services.
• Emergency Shelter Capacity: Expand emergency shelter capacity to accommodate at least 100 additional individuals, ensuring that no one is forced to sleep on the streets. • Rapid Re-Housing: Provide rapid re-housing assistance to 75 individuals or families, helping them transition to stable, permanent housing within a year. • Permanent Supportive Housing: Secure permanent housing for 50 individuals with disabilities or chronic health conditions through supportive housing programs. • Prevention Programs: Provide eviction prevention assistance to 150 households, helping to reduce the number of families and individuals who become homeless.
Palm Springs has set ambitious goals for reducing and ending homelessness in the city within the next year. Through increased outreach, expanded shelter options, rapid re-housing programs, and improved access to services, the city aims to create a comprehensive system that addresses both immediate needs and long-term solutions. The city’s approach focuses on individualized care, with an emphasis on connecting people to the services and resources they need to regain housing stability. By working collaboratively with local organizations and ensuring that all individuals have access to housing and support, Palm Springs is committed to making meaningful progress toward ending homelessness in the community.
Addressing the emergency shelter and transitional housing needs of less persons The City of Palm Springs is committed to addressing the immediate and transitional housing needs of individuals experiencing homelessness, particularly those who are unsheltered. A key part of this strategy is increasing access to emergency shelter and transitional housing, which are essential for providing short-term stability and preparing individuals for permanent housing solutions. This approach ensures that individuals not only have a safe place to stay but are also equipped with the necessary services and support to transition to long-term housing stability.
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Emergency Shelter Needs:
Emergency shelters are crucial for individuals experiencing homelessness, especially those living on the streets or in places not meant for habitation. Palm Springs recognizes the urgency of providing immediate, short-term shelter to prevent further harm and ensure that individuals are not exposed to the elements or unsafe conditions. The city’s strategy to address emergency shelter needs includes:
1. Increasing Shelter Capacity: Palm Springs aims to increase the number of available emergency shelter beds. By expanding the capacity of existing shelters and exploring opportunities for temporary shelters, the city intends to ensure that everyone who needs emergency shelter has access to a safe, supportive space. The goal is to accommodate at least 100 additional individuals in the first year, preventing further overcrowding and ensuring that no one is left on the streets without shelter.
2. Improved Shelter Conditions and Services: To make shelters more effective, Palm Springs is focused on improving the conditions and services provided in these facilities. Shelters will not only offer a safe place to sleep but will also provide essential support services such as meals, hygiene facilities, case management, mental health support, and medical care. These services are crucial for helping individuals stabilize their situations and begin their path to permanent housing.
3. 24/7 Access to Shelters: To provide continuous support, Palm Springs aims to ensure that shelters are accessible around the clock. This includes offering emergency shelter beds during extreme weather conditions, such as heatwaves or winter cold, ensuring that individuals are not exposed to life-threatening elements.
Transitional Housing Needs:
Transitional housing serves as a vital bridge between emergency shelter and permanent housing. It provides individuals with a more stable environment, typically for a period of up to 24 months, during which they can receive supportive services designed to help them regain self-sufficiency. The city is focusing on expanding and enhancing transitional housing options to provide this critical support for individuals and families:
1. Increasing Transitional Housing Units: Palm Springs aims to expand its transitional housing inventory, providing safe and supportive housing for individuals and families who need time to address the underlying causes of homelessness, such as mental health issues, substance use disorders, or lack of stable employment. The goal is to increase transitional housing opportunities, providing assistance to 75 individuals or families in the first year.
2. Wraparound Supportive Services: For transitional housing to be effective, it must be paired with comprehensive services that address the barriers individuals face. Palm Springs will provide case management, employment training, substance abuse counseling, mental health services, Item 2A - Page 218
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and life skills training to help individuals regain independence. These services are designed to help residents of transitional housing become stable enough to move into permanent housing and maintain it in the long term.
3. Partnerships with Nonprofit Organizations: To enhance the effectiveness of its transitional housing efforts, Palm Springs will continue to collaborate with local nonprofit organizations and service providers. These partnerships ensure that individuals and families receive the necessary support in housing, healthcare, and social services. By leveraging local expertise, Palm Springs can provide more comprehensive and tailored services to those in need.
4. Permanent Housing Placement: Palm Springs' transitional housing program will be linked with permanent housing placement programs, ensuring that individuals and families are connected to affordable, long-term housing options before they exit transitional housing. The city aims to provide a seamless transition from shelter to stable housing by working closely with property managers and developers to increase the availability of affordable rental units.
Target Populations for Emergency and Transitional Housing:
The City of Palm Springs recognizes that certain populations require additional support when it comes to homelessness services. These groups include:
1. Families with Children: Families, particularly those with young children, face unique challenges in accessing both emergency shelter and transitional housing. Palm Springs is focused on ensuring that shelters and transitional housing options are family-friendly and equipped with the necessary services to support the well-being of children, including childcare and educational support.
2. Seniors and People with Disabilities: Palm Springs is committed to ensuring that homeless seniors and individuals with disabilities have access to specialized housing and services. This includes accessible shelters and transitional housing with features such as ramps, wider doorways, and support for mobility aids.
3. Victims of Domestic Violence: Victims of domestic violence, including women and children, often require a safe and private place to stay. Palm Springs works to provide emergency shelter and transitional housing options that offer security and confidentiality for survivors of domestic violence. Specialized services, including legal assistance, counseling, and advocacy, are provided to help survivors recover and regain stability.
4. Youth and Young Adults: Homeless youth and young adults face particular vulnerabilities, including the risk of exploitation and lack of family support. Palm Springs has initiatives designed to provide safe housing and supportive services to this population, helping them develop the skills they need to transition to independent living.
One-Year Goals:
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• Expand Emergency Shelter Capacity: Increase shelter capacity by 100 additional beds, ensuring that unsheltered individuals are not left without a safe place to stay. • Supportive Services in Shelters: Ensure that at least 80% of shelter residents have access to case management, mental health services, and substance use treatment, helping them move toward stable housing.
• Increase Transitional Housing Availability: Provide 75 transitional housing units for individuals and families in need of temporary housing and support services. • Increase Access to Permanent Housing: Ensure that 50% of individuals exiting transitional housing are placed in permanent housing with ongoing supportive services to help maintain housing stability.
Palm Springs' approach to addressing emergency shelter and transitional housing needs is a multifaceted strategy focused on providing immediate relief and long-term stability for individuals and families experiencing homelessness. By expanding shelter capacity, increasing the availability of transitional housing, and providing comprehensive supportive services, Palm Springs is working toward reducing homelessness and ensuring that all individuals have access to safe, stable, and permanent housing. The city’s focus on reaching out to unsheltered persons and addressing the specific needs of vulnerable populations ensures a comprehensive and inclusive solution to homelessness.
Helping less persons (especially chronically less individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience lessness, facilitating access for less individuals and families to affordable housing units, and preventing individuals and families who were recently less from becoming less again
The City of Palm Springs is dedicated to helping individuals and families experiencing homelessness, particularly chronically homeless individuals, families with children, veterans, and unaccompanied youth, successfully transition to permanent housing and independent living. The city is committed to reducing the duration of homelessness, facilitating access to affordable housing, and preventing individuals and families from returning to homelessness after exiting the system.
Strategies for Transitioning Homeless Individuals and Families to Permanent Housing:
1. Rapid Re-Housing (RRH): Palm Springs will continue to expand its Rapid Re-Housing (RRH) program, which provides short-term rental assistance and supportive services to individuals and families who are experiencing homelessness. This program helps households move quickly from emergency shelters or unsheltered situations into permanent housing. By shortening the time individuals and families experience homelessness, RRH reduces the negative effects of Item 2A - Page 220
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prolonged housing instability and fosters quicker reintegration into the community. o Targeting Chronically Homeless Individuals: The city will prioritize chronically homeless individuals, those who have experienced homelessness for extended periods, often accompanied by mental health or substance use issues, as well as families with children.
The goal is to connect these households with stable housing as quickly as possible and provide the necessary services to maintain housing stability.
2. Permanent Supportive Housing (PSH): For individuals and families who face significant barriers to permanent housing due to chronic health conditions or disabilities, Palm Springs will continue to invest in Permanent Supportive Housing (PSH). PSH combines affordable housing with long- term support services such as case management, mental health support, substance use treatment, and life skills training. PSH is especially vital for families with children, veterans, and individuals with disabilities, offering long-term stability and the support needed to maintain housing and achieve independent living.
o Veterans and Their Families: Palm Springs will focus on expanding supportive housing options for veterans and their families, recognizing their unique needs. Veterans often experience higher rates of homelessness and have distinct challenges such as mental health issues and post-traumatic stress disorder (PTSD). PSH will ensure veterans have access to both stable housing and the supportive services required to thrive.
3. Youth and Young Adult Housing Programs: Palm Springs will provide specialized housing and supportive services for unaccompanied youth and young adults, who often face unique challenges when transitioning from homelessness to stable housing. These programs will include temporary housing solutions, life skills development, employment readiness training, and educational support. The goal is to provide young people with the resources they need to achieve independence and prevent long-term homelessness. o Creating Safe and Supportive Environments for Youth: Programs specifically designed for youth will ensure they have access to education, job training, and life skills that can help them navigate the challenges of independent living, preventing them from returning to homelessness.
Facilitating Access to Affordable Housing:
1. Increasing Affordable Housing Inventory: To ensure that there is adequate housing for those transitioning from homelessness, Palm Springs will work to increase the availability of affordable housing units. This includes leveraging federal funds, working with private developers, and utilizing the Housing Choice Voucher (Section 8) program to create more housing opportunities for low-income and homeless individuals. Special priority will be given to households Item 2A - Page 221
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transitioning out of homelessness.
o Streamlining the Application Process: The city will streamline the process for individuals transitioning out of homelessness to access affordable housing units. This will include expediting applications for Housing Choice Vouchers and making housing placements a priority for those coming out of emergency shelter and transitional housing programs.
2. Tenant-Based Rental Assistance (TBRA): Palm Springs will continue to utilize Tenant-Based Rental Assistance (TBRA) to help individuals and families access affordable rental units in the private market. By providing rental assistance, the city can ensure that individuals who are leaving homelessness can afford housing even if they are unable to find an immediate permanent placement. This flexibility also enables families to move to neighborhoods of their choice, enhancing their housing stability and overall well-being.
Preventing Reoccurrence of Homelessness:
1. Homelessness Prevention Programs: To prevent those who have recently exited homelessness from returning to the streets, Palm Springs will strengthen its homelessness prevention programs. This includes providing financial assistance for rent, utilities, and other critical expenses, as well as case management services that help individuals stabilize their housing. The goal is to intervene before individuals or families are at risk of eviction and prevent them from falling back into homelessness.
o Eviction Prevention Assistance: The city will provide financial assistance to households at risk of eviction due to job loss, health issues, or other life events. By providing temporary rental assistance, Palm Springs will ensure that individuals and families do not face homelessness again after successfully transitioning to permanent housing.
2. Case Management and Support Services: Palm Springs will continue to provide case management and supportive services to individuals and families after they have been placed in permanent housing. These services may include budgeting assistance, employment services, mental health counseling, and parenting classes, all aimed at ensuring that individuals and families maintain housing stability and independence over the long term. o Linking Individuals to Long-Term Support: After individuals and families are placed in permanent housing, Palm Springs will ensure they are connected to long-term supportive services. These may include healthcare, job training, and other community- based programs that address the underlying causes of homelessness, such as lack of employment, substance use, or mental health issues.
One-Year Goals and Actions:
• Provide Rapid Re-Housing to 75 Individuals/Families: Help 75 households transition from Item 2A - Page 222
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homelessness to permanent housing, reducing their time spent in shelters. • Increase Permanent Supportive Housing for Veterans and Families: Secure permanent supportive housing for at least 50 veterans and their families, ensuring they receive the necessary support to remain housed.
• Expand Youth Housing Programs: Provide safe, supportive housing for 30 unaccompanied youth, offering case management and job readiness services to help them achieve independence.
• Prevent Homelessness for 150 Households: Provide financial assistance to 150 households at risk of eviction to prevent them from returning to homelessness. • Facilitate Housing Placements: Expedite housing placement for 200 individuals and families, prioritizing those transitioning from homelessness to stable, affordable housing.
Helping low-income individuals and families avoid becoming less, especially extremely low- income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
The City of Palm Springs recognizes the importance of addressing the root causes of homelessness and preventing individuals and families, particularly extremely low-income individuals and those with special needs, from becoming homeless in the first place. This includes individuals being discharged from publicly funded institutions such as healthcare facilities, mental health facilities, foster care, and correctional institutions, as well as those receiving assistance from public or private agencies that provide services related to housing, health, social services, employment, education, or youth needs. The city's efforts aim to provide housing stability and supportive services to these vulnerable populations, ensuring they do not face the risk of homelessness after exiting institutional or service-based settings.
Key Strategies to Prevent Homelessness:
1. Discharge Planning and Coordination: Palm Springs recognizes that individuals transitioning from institutions or care systems—such as healthcare facilities, mental health facilities, foster care, and correctional institutions—are at significant risk of homelessness. The city is committed to implementing discharge planning procedures that ensure these individuals have access to stable housing before being discharged.
o Healthcare and Mental Health Discharges: When individuals are discharged from healthcare or mental health facilities, the city will work to ensure they have access to housing and follow-up care, preventing them from being released into homelessness.
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ensuring that individuals have a safe and supportive environment to recover in. o Foster Care and Youth Exits: Youth aging out of foster care are particularly vulnerable to homelessness. Palm Springs will ensure that transition plans are in place for youth leaving the foster care system, providing them with stable housing, education, and employment resources to help them avoid homelessness. Partnerships with local foster care organizations and youth services will be strengthened to support this group. o Corrections System Discharges: Individuals leaving correctional facilities often face barriers to stable housing. Palm Springs will collaborate with local corrections programs to ensure that individuals are linked to housing assistance programs upon release, reducing the likelihood of homelessness by providing support for reintegration into the community.
2. Housing First Approach and Supportive Housing: The Housing First model, which prioritizes placing individuals into stable housing before addressing other issues such as mental health, substance use, or employment, will be central to the city's efforts. Palm Springs will continue to provide Permanent Supportive Housing (PSH) to individuals and families who have special needs, including those transitioning from institutional settings. o Access to Housing and Services: Palm Springs will ensure that extremely low-income individuals and families, particularly those with disabilities or chronic health conditions, have access to affordable and permanent supportive housing with wraparound services.
This may include mental health services, substance use treatment, job training, and other services to help individuals maintain stable housing.
3. Preventing Homelessness for Vulnerable Groups: Palm Springs will provide targeted interventions to prevent homelessness for individuals who are at risk due to a variety of factors, such as eviction, family conflict, or inadequate income. This includes individuals who are receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
o Eviction Prevention: The city will offer eviction prevention assistance to extremely low- income individuals and families, especially those in precarious living situations. This includes rental assistance, mediation services, and legal support to prevent eviction and the risk of homelessness.
o Financial and Social Support Services: Palm Springs will ensure that individuals receiving services from social service agencies or public assistance programs are also linked to housing resources. Case managers will help clients access rent subsidies, housing vouchers, and other financial assistance programs to keep them in stable housing.
4. Collaboration with Service Providers: Palm Springs will strengthen partnerships with public and private agencies that serve vulnerable populations, including housing providers, healthcare facilities, employment services, and education programs. These partnerships will ensure a coordinated approach to preventing homelessness, providing comprehensive support to Item 2A - Page 224
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individuals and families at risk of housing instability. o Coordinated Entry System: Through a Coordinated Entry System (CES), Palm Springs will streamline referrals and assessments for individuals at risk of homelessness, connecting them to the appropriate resources based on their needs. This ensures that individuals are not falling through the cracks and are quickly linked to housing assistance, financial support, or mental health services as needed.
5. Supportive Services for Transitioning Populations: For individuals exiting institutions, Palm Springs will ensure that comprehensive supportive services are provided to help with the transition from institutional care to independent living. This includes case management, life skills training, job readiness programs, and mental health or substance use support to help individuals navigate the challenges of independent living. o Mental Health and Substance Use Services: Recognizing that many individuals exiting healthcare or mental health facilities require ongoing support, Palm Springs will ensure that mental health and substance use services are accessible and linked with housing resources. This will reduce the likelihood of these individuals returning to homelessness. o Youth Support Services: For youth transitioning out of foster care or other youth facilities, Palm Springs will provide access to education, employment training, and life skills programs to help them successfully navigate the challenges of independent living.
One-Year Goals and Actions:
• Eviction Prevention Assistance for 150 Households: Provide financial assistance and legal support to prevent eviction and homelessness for 150 households at risk of losing their homes. • Discharge Planning for 100 Individuals: Ensure that 100 individuals transitioning from healthcare, mental health, foster care, or correctional institutions are linked to stable housing and supportive services.
• Supportive Housing for 50 Individuals: Provide permanent supportive housing for 50 extremely low-income individuals with special needs, offering the necessary services to help them maintain housing stability.
• Youth Housing and Support Services for 30 Youth: Provide stable housing and life skills training for 30 youth aging out of the foster care system, ensuring their successful transition to independent living.
• Prevention Services for 200 Individuals: Provide case management, financial support, and housing services to 200 individuals or families receiving assistance from public or private agencies, ensuring they do not become homeless.
Discussion
The AP-65 Less and Other Special Needs Activities – 91.220(i) section of the Consolidated Plan outlines the City of Palm Springs’ goals and strategies for addressing the needs of special populations, including individuals experiencing homelessness and those with additional challenges, such as physical disabilities, Item 2A - Page 225
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chronic health issues, mental health conditions, youth aging out of foster care, and those transitioning from institutions or systems of care. These populations often require targeted interventions and comprehensive support services to achieve housing stability and independence.
Palm Springs is committed to supporting these vulnerable populations by providing a variety of services aimed at reducing housing instability and ensuring long-term solutions to homelessness. This section describes the city’s approach to helping low-income individuals and families avoid homelessness, providing the necessary services, and offering support to special needs groups who require additional assistance to access housing and thrive in their communities. connected to essential services, including mental health care, substance abuse treatment, and job training, further reducing the risk of lessness.
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AP-75 Barriers to affordable housing – 91.220(j)
Introduction:
The AP-75 Barriers to Affordable Housing section of the Consolidated Plan addresses the policies, regulations, and other factors that may serve as barriers to the development and accessibility of affordable housing in Palm Springs. These barriers can stem from various public policies, including land use controls, tax policies affecting land, zoning ordinances, building codes, development fees, growth limitations, and policies that affect the return on investment for residential development. These factors can increase the cost of housing development or restrict the availability of land for affordable housing, making it difficult for low- and moderate-income households to find suitable and affordable housing.
The city acknowledges the need to identify and remove or ameliorate these barriers to create an environment conducive to affordable housing development and availability.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing:
Palm Springs has identified several actions to remove or alleviate the negative effects of public policies that contribute to barriers in affordable housing development. These actions are designed to facilitate the creation and availability of affordable housing by addressing issues related to zoning, development fees, land use controls, and other regulations.
• Zoning Ordinance Revisions: Palm Springs plans to review and update its zoning ordinances to promote higher-density development in areas where affordable housing is most needed, such as near transit hubs and employment centers. This may include allowing multifamily housing in areas traditionally zoned for single -family homes or relaxing restrictions on mixed -use developments, making more land available for affordable housing development. • Incentives for Affordable Housing Development: The city will continue offering financial incentives, such as property tax abatements, reduced development fees, and direct funding, to developers who include affordable units in their projects. These incentives are designed to reduce the financial burden of building affordable housing and encourage private developers to participate in the creation of low- and moderate-income housing. • Streamlining Building Codes: Palm Springs is committed to reviewing its building codes to ensure they do not impose unnecessary costs on affordable housing developers. While safety and accessibility are paramount, the city aims to eliminate or modify codes that unnecessarily increase construction costs, which can deter the development of affordable housing. • Fee Reductions and Waivers: The city will continue to offer fee reductions or waivers for affordable housing developers. This includes fees for permits, inspections, and impact fees, which can significantly raise the cost of new housing. By reducing or wai ving some of these fees, Palm Springs will make it easier for affordable housing projects to be financially feasible. • Addressing Growth Limitations: Palm Springs is committed to revisiting its growth limitations and considering policies that would allow for more flexible housing development in areas with Item 2A - Page 227
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available infrastructure. This includes focusing on developing underutilized or vacant land and easing restrictions that limit the density or type of housing that can be built in certain areas. • Public-Private Partnerships: The city will foster public -private partnerships to facilitate the development of affordable housing. By leveraging public land and financing with private sector expertise and funding, Palm Springs aims to overcome the financial challenges of affordable housing development and increase the supply of affordable units in the community.
Discussion:
The primary barriers to affordable housing in Palm Springs stem from public policies that unintentionally increase the cost of development or restrict the available land for affordable housing projects. Land use controls, zoning ordinances, and building codes can often limit the type and density of housing that can be built, which in turn affects the affordability of new housing. These regulations are necessary for ensuring safety and quality, but they can also make it difficult to build affordable housing, especially when the regulations are outdated or overly restrictive.
Development fees, including impact fees and permit fees, can also pose a significant financial burden on developers, particularly for projects aimed at serving low- and moderate-income households. These fees, combined with rising construction costs, can make it financially unfeasible to build affordable housing without some form of financial assistance or incentive. To address this, Palm Springs is working to reduce or waive development fees for affordable housing projects, making it more cost-effective for developers to build and maintain affordable units.
Growth limitations, such as policies that restrict the number of new housing units or impose caps on development, can further exacerbate the shortage of affordable housing. Palm Springs is revisiting its growth management policies to allow for more flexible housing development, particularly in areas that are well-suited for higher-density housing. The goal is to promote growth in areas that already have infrastructure in place, such as vacant lots or underutilized properties, to make it easier for developers to build affordable housing without the need for extensive infrastructure investments.
The city’s efforts to streamline zoning laws and building codes are also essential in ensuring that affordable housing projects are not unnecessarily delayed or burdened by regulatory requirements. By promoting higher-density housing in appropriate areas and eliminating regulatory barriers, Palm Springs is taking the necessary steps to ensure that affordable housing development can proceed more quickly and efficiently.
Ultimately, Palm Springs aims to create a more affordable and accessible housing market by identifying and addressing these barriers. Through zoning revisions, financial incentives, fee reductions, and public- private partnerships, the city is working to remove the obstacles that prevent the development of affordable housing. These efforts will help increase the supply of affordable housing in Palm Springs, improving access for low- and moderate-income households and ensuring that all residents have access to safe, stable, and affordable homes.
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AP-85 Other Actions – 91.220(k)
Introduction:
The AP-85 Other Actions section outlines the strategic plans of the City of Palm Springs to address housing and community development challenges within the city. This section focuses on the city's efforts to tackle obstacles to meeting the needs of underserved populations, foster and maintain affordable housing, address environmental concerns like lead-based paint hazards, reduce the number of families living at or below the poverty level, develop an effective institutional structure, and enhance coordination between public and private housing and social service agencies. By implementing a variety of strategies and actions, Palm Springs aims to create an environment where all residents, especially those in vulnerable or disadvantaged populations, have access to affordable, stable, and healthy housing.
Actions Planned to Address Obstacles to Meeting Underserved Needs:
Palm Springs faces several challenges in meeting the housing and service needs of underserved populations, including low- and moderate-income residents, seniors, individuals with disabilities, and the homeless. To address these obstacles, the city is planning to increase the supply of affordable housing through zoning reforms that allow higher-density development and incentivize developers to build more affordable units. The city also plans to leverage state and federal resources to expand available funding for affordable housing projects, homeless services, and supportive housing programs.
Additionally, Palm Springs is committed to improving access to essential services such as healthcare, employment, education, and transportation by partnering with local nonprofits and social service providers to ensure that marginalized populations have the support they need to thrive.
Actions Planned to Foster and Maintain Affordable Housing:
Palm Springs is focused on fostering and maintaining affordable housing by prioritizing the preservation of existing affordable units and promoting the development of new housing. The city plans to implement programs aimed at rehabilitating older affordable housing units to prevent deterioration and maintain their affordability for low-income households. Additionally, Palm Springs will continue to offer financial incentives to developers who build affordable housing, including property tax abatements and reduced development fees, making it financially feasible to create more affordable units. The city is also working to expand rental assistance programs, such as Section 8 vouchers, to help low-income families access and maintain affordable housing in the community.
Actions Planned to Reduce Lead-Based Paint Hazards:
Palm Springs is committed to reducing lead-based paint hazards, especially in homes built before 1978 that are inhabited by young children or other vulnerable populations. The city plans to implement lead- paint remediation programs, which will include testing and removal of lead-based paint in these homes.
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Palm Springs aims to protect the health and safety of its residents, particularly young children, from the dangerous effects of lead poisoning.
Actions Planned to Reduce the Number of Poverty-Level Families:
Reducing the number of families living in poverty is a key goal for Palm Springs. To achieve this, the city plans to expand job training and workforce development programs that help low-income families acquire the skills they need to secure stable and well-paying jobs. Palm Springs will also support economic empowerment initiatives, including financial literacy programs and small business assistance for entrepreneurs from low-income backgrounds. The city is focused on increasing access to childcare services and educational opportunities, particularly for single parents, to ensure they can enter or remain in the workforce while providing for their children.
Actions Planned to Develop Institutional Structure:
Palm Springs recognizes the importance of a strong institutional structure to effectively address housing and community development needs. To strengthen this structure, the city will continue to foster collaboration among public agencies, nonprofit organizations, and private developers. This includes building the capacity of local service providers to handle growing demand for housing and supportive services by offering technical assistance, training, and resources. Additionally, the city will work to streamline and improve the efficiency of its housing programs, ensuring that resources are allocated effectively and that service delivery is responsive to the needs of the community.
Actions Planned to Enhance Coordination Between Public and Private Housing and Social Service Agencies:
Effective coordination between public and private agencies is crucial for meeting the housing and social service needs of Palm Springs' residents. The city plans to enhance these efforts by strengthening partnerships with local housing authorities, social service providers, healthcare agencies, and employment services. Palm Springs will continue to utilize the Coordinated Entry System (CES), a centralized process designed to streamline intake, assessments, referrals, and service delivery for individuals experiencing homelessness or housing instability. By improving coordination and ensuring that resources are efficiently allocated, Palm Springs will better address the needs of its residents and help prevent homelessness.
Discussion:
The strategies outlined in the AP-85 Other Actions section represent a comprehensive approach to addressing the multifaceted challenges facing Palm Springs. The city's efforts to increase affordable housing, provide rental assistance, reduce lead-based paint hazards, and reduce poverty through workforce development are all critical steps toward building a more equitable and stable community.
Palm Springs' focus on maintaining affordable housing through rehabilitation programs and incentivizing new development will ensure that the housing needs of low- and moderate-income residents are met.
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Additionally, the city's emphasis on developing a strong institutional structure and enhancing coordination between public and private agencies will improve service delivery, ensuring that individuals and families in need are connected with the resources required to achieve housing stability. By working collaboratively with local nonprofits, service providers, and housing developers, Palm Springs is positioning itself to address the complex challenges of affordable housing, homelessness prevention, and economic mobility.
The city's commitment to fostering partnerships and building capacity within the community reflects its long-term vision of creating a resilient, inclusive, and thriving environment for all residents. Through these efforts, Palm Springs aims to reduce homelessness, improve housing quality, and empower low- income families to break the cycle of poverty, ensuring a better quality of life for all.
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Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
3. The amount of surplus funds from urban renewal settlements
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan.
5. The amount of income from float-funded activities
Total Program Income
Other CDBG Requirements
1. The amount of urgent need activities $0
Investment Partnership Program ()
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
The City of Palm Springs will rely on a diverse array of funding sources in addition to those outlined in Section 92.205. In particular, Palm Springs leverages the Low-Income Housing Tax Credit (LIHTC) program to attract private capital for affordable housing development. State-level programs such as the California Housing Trust Fund and the Affordable Housing and Sustainable Communities Program also provide essential financial support. Local funds, including the Palm Springs-Glendale- Pasadena Regional Housing Trust Fund, further supplement federal funds, ensuring that affordable housing projects have the necessary capital for construction, rehabilitation, and long-term sustainability.
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buyer activities as required in 92.254, is as follows:
While the City’s Program has traditionally focused on affordable rental housing, guidelines for resale and recapture will be established if funds are allocated to buyer activities. These guidelines will ensure that any purchased with funds remains affordable to low- and moderate-income households. buyers receiving assistance will be required to repay a portion of the assistance upon resale, or the must be resold to another eligible low-income buyer, ensuring that affordability is maintained over time.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with funds, See 24 CFR 92.254(a)(4) are as follows:
To maintain long-term affordability, Palm Springs’s resale and recapture guidelines will comply with 24 CFR 92.254(a)(4). These guidelines will include minimum affordability periods based on the amount of assistance provided, ensuring that units remain affordable for 5 to 20 years, depending on the level of investment. Resale provisions will require that units be sold at affordable prices to income-qualified buyers, while recapture provisions will allow the City to recoup funds upon resale, which can then be reinvested in additional affordable housing projects.
4. Plans for using funds to refinance existing debt secured by multifamily housing that is rehabilitated with funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
If the City elects to refinance existing multifamily housing debt using funds, stringent guidelines will be implemented. These include ensuring that rehabilitation is the primary activity, establishing a minimum rehabilitation investment per unit, and demonstrating that the project will remain affordable for at least 15 years. Management practices will be reviewed to confirm that disinvestment has not occurred, and refinancing will be restricted to specific geographic areas if necessary. funds will not be used to refinance federally funded loans, maintaining the integrity and sustainability of affordable housing investments.
5. If applicable to a planned TBRA activity, a description of the preference for persons with special needs or disabilities is as follows:
Palm Springs’s Tenant-Based Rental Assistance (TBRA) program prioritizes non-less special needs populations, including individuals with disabilities, seniors, and persons with chronic health conditions. This preference is driven by the critical shortage of accessible and supportive housing, particularly in neighborhoods with high concentrations of elderly and disabled residents. TBRA provides these populations with rental assistance and access to supportive services, ensuring that they can maintain stable housing and receive necessary care.
6. If applicable to a planned TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g., persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons:
The TBRA program’s preference for individuals with disabilities, including those with chronic illnesses such as HIV/AIDS and mental health conditions, addresses significant service gaps. By providing stable housing and tailored support services, this preference ensures that vulnerable populations receive equitable access to housing and healthcare, bridging the gap between their Item 2A - Page 233
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needs and available resources. This targeted assistance is essential for promoting health, stability, and independence among individuals with disabilities.
7. If applicable, a description of any preference or limitation for rental housing projects is as follows:
Palm Springs’s rental housing projects supported by funds will prioritize affordability and inclusivity.
While the City does not currently impose specific preferences or limitations beyond compliance with fair housing laws, any future preferences will focus on addressing the needs of low-income families, individuals with disabilities, and other vulnerable populations. These preferences will be designed to ensure equitable access to housing without violating fair housing regulations, fostering a diverse and supportive community.
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ATTACHMENT C
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1 APRIL 10
The City of Palm Springs
Authored by: The Ramsay Group
Analysis of
Impediments to
Fair Housing
Choice
2025
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2 Contents
Executive Summary .................................................................................................................................................................. 3 Summary of the key findings, impediments identified, and recommended actions. ......................................................... 3 Key Findings................................................................................................................................................................... 3 Identified Impediments to Fair Housing Choice ............................................................................................................ 4 Recommended Actions ................................................................................................................................................. 4 Introduction.............................................................................................................................................................................. 6 Purpose and scope of the AI. .............................................................................................................................................. 6 Overview of fair housing laws and the importance of the analysis .................................................................................... 6 Community Profile ................................................................................................................................................................... 8 Demographic and economic characteristics of the community. ................................................................................... 8 Housing stock and conditions. .................................................................................................................................... 17 Housing Affordability in Palm Springs, California ........................................................................................................ 24 Overview of Palm Springs’ Housing Market ................................................................................................................ 28 Review of Fair Housing Laws .................................................................................................................................................. 36 Summary of federal, state, and local fair housing laws. ................................................................................................... 36 Federal Fair Housing Laws ........................................................................................................................................... 36 California Fair Housing Laws ....................................................................................................................................... 37 City of Palm Springs Fair Housing Laws and Policies ................................................................................................... 38 Fair Housing Practices in Palm Springs ................................................................................................................................... 42 Community Engagement ........................................................................................................................................................ 43 Summary of community input and involvement in the AI process. ................................................................................. 43 Identification of Impediments to Fair Housing Choice in Palm Springs ................................................................................. 46 Quantitative Data Analysis: Statistics and Trends in Housing Discrimination, Affordability, and Access ......................... 46 Summary of Findings .............................................................................................................................................................. 57 Recommended Actions to Address Impediments to Fair Housing Choice in Palm Springs .................................................... 60 Methodology .......................................................................................................................................................................... 63 Description of data sources (e.g., census data, surveys, interviews). .............................................................................. 63 Explanation of the analytical methods used. .................................................................................................................... 64 Limitations of the analysis ................................................................................................................................................ 65 Appendices ................................................................................................................................. Error! Bookmark not defined.
Additional data, charts, or graphs supporting the analysis. ................................................. Error! Bookmark not defined.
Copies of surveys and questions used in interviews. ........................................................... Error! Bookmark not defined.
Glossary of relevant terms. ................................................................................................... Error! Bookmark not defined.
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3 Executive Summary
Summary of the key findings, impediments identified, and recommended actions.
The City of Palm Springs has conducted a comprehensive Analysis of Impediments to Fair Housing Choice (AI) to assess barriers to housing access, affordability, and equity. Through community engagement, survey data analysis, and policy review, this assessment identifies significant challenges faced by residents, particularly those from low-income, minority, disabled, and LGBTQ+ communities.
The findings highlight the urgent need for strengthened fair housing enforcement, expanded affordable housing opportunities, and increased tenant protections to create a more inclusive and equitable housing environment.
Key Findings
Housing discrimination remains a significant concern in Palm Springs. According to the Fair Housing Survey, 27.3% of respondents reported experiencing or knowing someone who experienced housing discrimination. The most frequently reported form of discrimination was income-based bias, affecting 30% of respondents. Many landlords refuse to accept Housing Choice Vouchers (Section 8) or impose stricter rental requirements on low-income tenants, creating additional barriers to fair housing. Racial and ethnic discrimination was the second most reported issue, cited by 25% of respondents, suggesting that communities of color continue to face systemic obstacles in both rental and homeownership markets. Familial status discrimination, affecting 20% of respondents, reveals that families with children encounter difficulties in securing housing. Predatory lending practices disproportionately impact minority homebuyers, with 15% of respondents identifying them as a major concern. Disability-based discrimination, affecting 10% of respondents, remains an issue, particularly when landlords fail to accommodate reasonable modification requests. Additionally, LGBTQ+ bias, though cited by a smaller percentage of respondents (5%), continues to be a factor in the housing market despite Palm Springs' reputation as an inclusive community.
Limited affordable housing options further compound housing challenges. Housing costs have risen significantly, with 72% of renters in Palm Springs classified as cost-burdened, meaning they spend more than 30% of their income on housing. The median home price has increased by 14% over the past three years, rising from $635,000 in 2020 to $725,000 in 2023. Renters have also faced substantial increases, with the average rent for a one-bedroom apartment reaching $2,100 per month. These rising costs place significant pressure on service workers, seniors, and lower-income households, many of whom struggle to find stable and affordable housing.
The rental market in Palm Springs has become increasingly competitive, with vacancy rates dropping below 3.5% in 2023. Evictions and displacement due to redevelopment were reported by 21% of Item 2A - Page 238
4 survey respondents. Many renters also faced discrimination from landlords who refused to rent to tenants using housing assistance programs, a challenge identified by 17% of respondents.
Additionally, 28% of renters reported that rent increases had exceeded their affordability limits, forcing some households to relocate or seek alternative housing options.
Barriers to homeownership further limit housing stability for many residents. Loan denial rates for minority applicants remain disproportionately high, exceeding 20% in some cases. Despite the availability of down payment assistance programs, these resources remain underutilized, with only 30% of eligible households applying for local homebuyer assistance programs. Addressing these disparities is essential to ensuring that all residents, regardless of race or income level, have equal access to homeownership opportunities.
Zoning and land-use constraints present additional obstacles to fair housing in Palm Springs. The city has been allocated 5,706 new housing units under the 2021-2029 Regional Housing Needs Assessment (RHNA), with 2,356 designated for lower-income households. However, land availability and community resistance to high-density developments have slowed the progress of new affordable housing projects. The Palm Springs Housing Element outlines several policy changes aimed at encouraging affordable housing development, including density bonuses, expedited permitting, and financial incentives. Yet, these measures must be further strengthened to address the city’s growing housing needs.
Identified Impediments to Fair Housing Choice
Several systemic factors contribute to the fair housing challenges in Palm Springs. Persistent discrimination against renters and homebuyers continues to create barriers to equitable housing access. Limited affordable housing options disproportionately impact lower-income households, making it difficult for them to secure stable and affordable homes. Gentrification and redevelopment pressures have led to the displacement of long-term residents, exacerbating housing instability for vulnerable populations. Barriers to homeownership, particularly discriminatory lending practices and limited access to financial assistance, prevent many minority and low-income families from achieving housing security. Zoning and land-use regulations continue to restrict the development of multi- family and affordable housing, slowing progress in addressing the city’s housing shortages.
Recommended Actions
To address these challenges, Palm Springs must strengthen fair housing enforcement, expand affordable housing opportunities, and implement policies that protect tenants and homebuyers from discrimination. Strengthening fair housing enforcement requires expanding tenant protections and eviction prevention programs while enhancing legal aid services to ensure that residents facing Item 2A - Page 239
5 discrimination have access to legal support. Increasing funding for the Fair Housing Council of Riverside County will improve the investigation and resolution of discrimination complaints, ensuring that fair housing laws are effectively enforced.
Expanding the affordable housing supply is essential for addressing the city’s housing shortage. The implementation of inclusionary zoning policies, requiring developers to include affordable units in new projects, will help increase the availability of lower-cost housing. State density bonuses should be leveraged to promote affordable and mixed-income developments in high-opportunity areas.
Additionally, financial incentives for developers, such as tax credits and fee reductions, should be expanded to encourage private investment in affordable housing.
Enhancing homeownership access is another critical component of promoting housing stability.
Expanding down payment assistance programs and increasing participation among eligible households will help more residents achieve homeownership. Strengthening anti-predatory lending measures and increasing financial literacy programs will help prevent discriminatory lending practices and ensure that all potential homebuyers have equal access to financing. Working with lenders to reduce racial disparities in mortgage approval rates will further promote equitable homeownership opportunities.
Zoning and land-use policies must be revised to encourage the development of a diverse range of housing options. Higher-density and mixed-use developments should be encouraged in transit- accessible areas to accommodate the growing demand for affordable housing. Streamlining the approval process for affordable housing projects will reduce delays and make it easier for developers to build new housing units. Utilizing publicly owned land for affordable housing initiatives will provide additional opportunities for expanding the city’s housing stock.
Public awareness and education campaigns should be expanded to ensure that residents understand their fair housing rights and the resources available to them. Fair housing education efforts should be targeted toward landlords, tenants, and real estate professionals to increase compliance with anti- discrimination laws. Improving accessibility to fair housing resources, including online reporting tools and legal assistance services, will help residents navigate housing-related challenges more effectively.
Conducting regular community outreach and training sessions will further strengthen fair housing protections and empower residents to advocate for their rights.
Palm Springs has made progress in addressing housing equity, but continued efforts are necessary to eliminate discriminatory practices, expand affordable housing, and enhance tenant protections. By implementing these recommended actions, the city can promote fair housing choice, reduce housing insecurity, and create a more inclusive and equitable community for all residents.
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6 Introduction
Purpose and scope of the AI.
Purpose of the Report
This Analysis of Impediments (AI) to Fair Housing Choice outlines the laws, regulations, and conditions that may affect housing access in Palm Springs. The AI includes:
• A comprehensive review of local laws, regulations, and administrative practices, assessing their impact on housing location, availability, and accessibility. • An evaluation of public and private conditions that influence fair housing choice.
Equal access to housing is essential for individuals to meet their basic needs and pursue personal, educational, and employment goals. Recognizing equal housing access as a fundamental right, both the federal government and the State of California have est ablished fair housing choice as a legally protected right.
This report provides a demographic profile of the City of Palm Springs, assesses housing needs among various income groups, and evaluates the availability of diverse housing options for residents.
Additionally, it analyzes conditions in the private market and public sector that may limit housing choices or hinder access. Whi le the report discusses the nature and extent of housing discrimination, it primarily focuses on identifying barriers to equal housing access and proposing solutions to address these impediments.
Overview of fair housing laws and the importance of the analysis.
Defining Fair Housing
Federal fair housing laws prohibit discrimination in the sale, rental, or lease of housing, and in negotiations for real property based on race, color, religion, sex, national origin, familial status, and disability. California fair housing laws expand upo n these protections to include age, marital status, ancestry, source of income, sexual orientation, and any arbitrary discrimination. For this report, fair housing is defined as:
“Fair housing describes a condition in which individuals of similar income levels in the same housing market have a like range of choices available to them, regardless of race, color, ancestry, national origin, religion, sex, disability, age, marital status, familial status, source of income, sexual orientation, or any other arbitrary factor.”
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7 Legal Framework for Fair Housing
The federal Fair Housing Act of 1968, along with the Fair Housing Amendments Act of 1988, prohibits discrimination in all aspects of housing, including sales, rentals, leases, and negotiations. The Act prohibits discrimination based on race, color, religion, sex, and national origin.
In 1988, the Fair Housing Act was amended to include protections for familial status and individuals with disabilities, requiring “reasonable accommodations” for structural modifications in multi -family dwellings at the request of individuals with disabilities.
The California Civil Rights Department enforces state laws that offer protection and remedies for victims of unlawful housing practices. The Fair Employment and Housing Act (FEHA) prohibits discrimination and harassment in housing practices.
California laws, such as the Unruh Act and the Ralph Civil Rights Act, provide further protections against discrimination in public accommodations and housing situations. The Bane Civil Rights Act protects individuals from interference with their housing rights through force or threats.
Housing Issues, Affordability, and Fair Housing
The U.S. Department of Housing and Urban Development (HUD) distinguishes between housing affordability and fair housing. Economic factors affecting housing choices do not inherently raise fair housing concerns unless biases related to income, race, or other factors lead to differential treatment.
Disputes between tenants and landlords generally do not pertain to fair housing issues unless they involve violations of fair housing laws that result in unequal treatment.
Understanding Impediments to Fair Housing Choice
According to HUD’s Fair Housing Planning Guide, impediments to fair housing choice include any actions or omissions that restrict housing choices based on protected characteristics or have the effect of limiting such choices.
To promote equal housing opportunities, communities must actively work to identify and eliminate these impediments. Compliance with federal fair housing laws is also necessary for certain federal funding, requiring jurisdictions to:
• Certify their commitment to furthering fair housing choice. • Maintain fair housing records.
• Conduct an analysis of impediments to fair housing choice.
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8 Community Profile
Demographic and economic characteristics of the community.
Community Profile: Palm Springs, California
Palm Springs, a city located in Riverside County, California, is renowned for its distinctive desert landscape, its status as a prime resort and retirement destination, and its vibrant, diverse community.
The city has become a magnet for retirees, individuals seeking a warm climate, and members of the LGBTQ+ community. With an estimated population of approximately 49,000 residents as of 2023, Palm Springs has experienced steady population growth over the past decade. This growth has been influenced by various factors, including retiree mi gration, tourism-driven in-migration, and seasonal residents. The demographic makeup of Palm Springs has shaped the city’s cultural identity, economic landscape, and social infrastructure. This detailed analysis explores the city’s population trends, age distribution, racial and ethnic composition, and the significant role of the LGBTQ+ community. It also examines the economic implications of these demographic factors.
Population Growth Trends
The population of Palm Springs has been growing at a moderate pace over the past decade. The city experienced a population increase of 5.7% from 2010 to 2020, growing from 44,552 residents in 2010 to 47,897 in 2020. This rate of growth is relatively slow w hen compared to other cities in Riverside County, but it is not unexpected, given Palm Springs' status as a resort town and retirement destination.
Its growth is influenced by factors such as retiree migration, the seasonal influx of tourists, and a growing number of individuals choosing to relocate permanently after visiting.
The following table illustrates Palm Springs' population trends from 2010 to 2023:
Year Population Growth Rate
2010 44,552 -
2015 46,120 3.5%
2020 47,897 3.8%
2023 49,000 (est.) 2.3%
Source: ACS Data, 2020.
As shown, the population grew steadily between 2010 and 2020, with a slight deceleration in growth after 2020. In part, this deceleration can be attributed to the ongoing global economic factors and the city’s unique demographic profile, which tends to attract older ind ividuals who may not move as frequently as younger populations.
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CII
9 Palm Springs' growth has been shaped by several key factors, such as the migration of retirees seeking a warm climate, tourism -driven immigration , and the presence of a significant number of seasonal residents. These trends, coupled with an aging population and a thriving LGBTQ+ community, continue to influence the city's demographic evolution.
Retiree Migration and Tourism
Palm Springs has long been a destination for retirees, offering a comfortable climate, scenic surroundings, and a variety of leisure activities. The city’s appeal to retirees is a key factor in its population growth. Retirees are drawn to Palm Springs for its low cost of living relative to other parts of California, its access to healthcare services, and the overall quality of life it offers. In addition, retirees often seek out destinations that provide opportunities for social engagement, wellness, and an active lifestyle, all of which are present in abundance in Palm Springs. These individuals frequently choose Palm Springs as their permanent home after visiting as tourists.
Tourism also plays a crucial role in the city’s growth. Many individuals visit Palm Springs initially as tourists and later decide to relocate permanently, attracted by the city’s charm and the amenities it offers. The city’s reputation as a resort town ha s been strengthened by its golf courses, spas, luxury hotels, and world-class dining. Moreover, Palm Springs’ proximity to major metropolitan areas like Los Angeles and San Diego makes it a convenient getaway for tourists, some of whom ultimately decide to make it their home.
Seasonal Residents
A significant proportion of Palm Springs' population consists of seasonal residents who spend part of the year in the city. These individuals are typically retirees or professionals from colder climates who come to Palm Springs during the winter months to escape harsh weather. Although they do not permanently reside in the city, seasonal residents contribute significantly to its economy, particularly in the hospitality and real estate sectors. Their presence bolsters the local economy through increased demand for rental properties, restaurants, and other services that cater to tourists and seasonal residents.
Seasonal residents also contribute to the cultural diversity of Palm Springs, bringing a variety of perspectives and interests to the community during their time in the city. While they may not be counted in the city’s official population estimates, their influence on the local economy and culture is undeniable.
Age Distribution
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10 Springs constitutes over 35% of the total population, which is more than double the national average of 16%. This demographic trend is a result of Palm Springs' appeal to retirees who are seeking a warm climate and an active lifestyle.
However, Palm Springs is not solely a haven for retirees. The city also has a sizable percentage of residents in the 25 -44 age group. This group represents about 22% of the population, which reflects the economic opportunities available in the city’s hospi tality, tourism, and service sectors. Younger residents are drawn to Palm Springs for its vibrant arts and culture scene, outdoor recreation opportunities, and the city’s reputation as a place that fosters inclusivity and diversity.
The age distribution of Palm Springs is reflected in the following table:
Age Group Percentage
Under 18 12%
18-24 6%
25-44 22%
45-64 25%
65+ 35%
Source: ACS Data, 2020.
The city’s large senior population has significant implications for its infrastructure, healthcare system, and social services. As a result, there is a high demand for senior -friendly amenities, healthcare facilities, and retirement communities. In addition, the city must continually adapt to meet the needs of its aging popula tion while fostering an environment that attracts and retains younger residents, particularly those in the workforce.
Racial and Ethnic Composition
Palm Springs is a racially and ethnically diverse city, with a mix of White (Non -Hispanic), Hispanic or Latino, African American, and Asian populations. According to 2022 data, the largest racial group in Palm Springs is White (Non -Hispanic), comprising 62% of the population. Hispanic or Latino residents make up 26% of the population, while African American and Asian communities each represent about 4% of the population. The remaining 4% is composed of individuals identifying as multiracial or from other ethnic groups.
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11 The racial and ethnic composition of Palm Springs is outlined in the following table:
Race/Ethnicity Percentage
White (Non-Hispanic) 62%
Hispanic or Latino 26%
Black or African American 4%
Asian 4%
Other/Multiracial 4%
Source: ACS Data, 2020.
Palm Springs' diversity is reflective of broader demographic trends across Southern California, where Hispanic and Latino populations have grown significantly in recent decades. The growth of the Hispanic community in Palm Springs mirrors this trend, contributing to the city's cultural vibrancy and the development of local businesses and services. This growth also reflects the broader migration patterns of individuals seeking a high quality of life in the region.
The city’s commitment to inclusivity and diversity has made it an attractive place to live for people from various racial and ethnic backgrounds. Palm Springs’ policies promote equality and support for all residents, regardless of their race or ethnicity, further enhancing the city’s reputation as a progressive and welcoming place to live.
The LGBTQ+ Community
Palm Springs is widely regarded as one of the most LGBTQ+ friendly cities in the United States. An estimated 40% of the city’s population identifies as LGBTQ+, one of the highest proportions of LGBTQ+ residents in any city nationwide. The city has long been a refuge for LGBTQ+ individuals, and its LGBTQ+ community plays a central role in shaping the city’s cultural identity and economic vitality.
Palm Springs is home to numerous LGBTQ+ bars, clubs, hotels, and restaurants, which cater to both residents and tourists. The city's downtown area hosts a variety of LGBTQ+ events, including the famous Palm Springs Pride festival, which draws thousands of visitors each year. These events have become a hallmark of the city’s cultural calendar, attracting people from all over the world to celebrate diversity and inclusion.
The LGBTQ+ community in Palm Springs also plays an important role in the local economy. LGBTQ+ residents contribute to the growth of local businesses, particularly those in the hospitality and Item 2A - Page 246
12 entertainment industries. Many LGBTQ+ individuals in Palm Springs are entrepreneurs who own businesses catering to the needs of the community, further boosting the local economy.
Economic Characteristics
Fair Housing and the Economy of Palm Springs
The challenges of income inequality, housing affordability, and the seasonal nature of employment have highlighted the need for fair housing policies that can ensure all residents, regardless of socioeconomic status, race, or background, have access to saf e, affordable housing. This analysis explores the economic and demographic factors that shape housing conditions in Palm Springs, using a lens focused on fair housing. By examining key housing -related metrics, employment patterns, and demographic shifts, the aim is to understand how fair housing initiatives can be integrated into Palm Springs’ future growth.
This section delves into the factors influencing housing conditions in Palm Springs, focusing on the intersection of economic trends, demographic shifts, and housing needs. By examining housing-related metrics, income distribution, and employment trends, we aim to hig hlight the challenges and opportunities for addressing fair housing in Palm Springs, with an emphasis on equitable growth and policy solutions.
Economic Landscape of Palm Springs
Palm Springs' economy is heavily influenced by four key sectors: tourism, healthcare, real estate, and retail. The tourism industry, in particular, provides significant employment opportunities, especially during the peak season. However, the city’s depend ence on service -based jobs such as hospitality, retail, and food services has contributed to notable income inequality. This disparity is a major driver of Palm Springs’ housing challenges, where high -income residents coexist with low -wage workers.
While tourism generates substantial revenue, the wages of many service-sector employees do not keep pace with the increasing cost of housing, exacerbating the affordability crisis in the city.
The city’s demographic profile reflects its dual identity as both a popular retirement destination and a seasonal tourist hub. Palm Springs is home to one of the highest percentages of senior citizens in the country, which brings unique housing demands. Ma ny seniors live on fixed incomes, creating an increased need for accessible, affordable housing. As more retirees seek the city’s warm climate, demand for housing tailored to seniors —particularly age-friendly and affordable options —continues to grow.
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13 The following table compares key demographic and economic metrics for Palm Springs and the state of California:
Metric Palm Springs Value California Average
Median Household Income $52,918 $84,097
Percentage of Retiree Population 38% 15%
Percentage of Residents Below the Poverty Line 15% 12%
Median Age 54.7 years 37.5 years
Source: U.S. Census Bureau, California Department of Finance Analysis
1. Median Household Income : Palm Springs' median household income is $52,918, which is significantly lower than California's state average of $84,097. This income gap is particularly concerning given the rising cost of housing in the area. While higher-income retirees may have the financial means to afford upscale homes, many working residents—especially those in low- wage service-sector jobs—struggle to cover basic living expenses, including rent. This disparity highlights the urgent need for affordable housing solutions.
2. Retiree Population: Palm Springs has a much higher percentage of retirees, with 38% of the population aged 65 and older, compared to the state average of 15%. This aging population drives demand for housing that is both affordable and accessible. Retirees typically have mor e financial security than younger residents, but many still live on fixed incomes, which limits their ability to afford the increasing cost of housing. As such, there is an increasing need for housing options that cater to seniors' unique needs.
3. Poverty Rates: Approximately 15% of Palm Springs residents live below the poverty line, which is higher than the state average of 12%. Despite its reputation as a desirable retirement destination, a significant portion of the population struggles economically. Many low -wage workers in the service industry are particularly vulnerable to housing insecurity, as their incomes often do not cover the rising costs of living. This income disparity creates a complex housing market, where affordable options are in short supply, contributing to the city’s housing challenges.
4. Median Age: The median age in Palm Springs is 54.7 years, well above the state’s median of
37.5 years. This reflects the city’s role as a popular retirement destination. As the population ages, there will be a growing need for specialized housing, healthcare, and so cial services. The aging population may also face an increased risk of displacement as housing costs rise, particularly if affordable, senior-friendly housing options remain scarce.
The disparity between Palm Springs’ median household income and the California state average underscores a key challenge in addressing the city's housing crisis. With a significant portion of the Item 2A - Page 248
14 population living below the poverty line, many residents are unable to afford the rising costs of housing.
While retirees may have the financial means to afford higher rent or home prices, the increasing number of low -income renters, particularly those in the service industry, face growing housing instability.
Additionally, the city’s aging population further complicates the situation. The demand for age-friendly, affordable housing will continue to increase, particularly as more seniors seek to retire in Palm Springs.
Yet, the city's reliance on low-wage service-sector jobs limits the economic mobility of many residents, exacerbating the affordability gap.
As housing costs continue to rise, it becomes increasingly important for Palm Springs to address these disparities through affordable housing programs, tenant protections, and initiatives that provide more opportunities for low -income and senior residents to remain in the community. While Palm Springs’ appeal as a retirement destination and tourist hotspot may drive demand for higher-end housing, there is a pressing need to ensure that vulnerable populations, particularly seniors and low -wage workers, have access to secure, affordable housing options.
Income Distribution and Housing Affordability
Income distribution in Palm Springs reflects the broader economic divide present in the city. While retirees and high -income professionals often own multiple properties and contribute significantly to the local economy, many residents rely on seasonal or l ow-wage service jobs. The disparity between high- and low -income households exacerbates housing affordability issues, with the wealthier residents often able to afford rising housing costs while lower -income residents struggle to find affordable housing.
The median household income in Palm Springs is significantly below the national average, which presents an ongoing challenge for many residents. Additionally, income inequality is more pronounced in Palm Springs, with a substantial percentage of households earning less than $2 5,000 annually. The following table outlines the distribution of income across households in Palm Springs:
Income Bracket Percentage of Households
Below $25,000 21%
$25,000 - $50,000 35%
$50,000 - $100,000 28.7%
Above $100,000 15.3%
A significant portion of Palm Springs households, about 21%, earn less than $25,000 annually. These households are typically employed in seasonal, part-time, or low-wage service jobs, many of which do Item 2A - Page 249
15 not provide enough income to cover increasing housing costs. On the other hand, 15.3% of households earn more than $100,000 annually, primarily composed of retirees and high-income professionals. This concentration of wealth has contributed to rising housi ng costs, making it difficult for lower -income residents to secure affordable housing.
The housing market in Palm Springs is increasingly driven by wealthy residents, second -home buyers, and short-term rental investors, leading to higher home prices. The median home price in Palm Springs is currently $630,000, which is well above the nationa l median of $416,100. Similarly, rent prices in Palm Springs are significantly higher than the national average, further exacerbating affordability challenges for lower-income households.
The following table compares key housing affordability metrics in Palm Springs with national averages:
Metric Palm Springs Value National Average
Median Home Price $630,000 $416,100
Median Rent $1,850/month $1,150/month
Percentage of Rent-Burdened Households 42% 28%
These figures reveal that Palm Springs faces a significant affordability gap, with 42% of households considered rent-burdened, meaning they spend more than 30% of their income on housing. This is considerably higher than the national average of 28%. Rent -burdened residents, many of whom are low-income families, seniors, and disabled individuals, often struggle to afford other necessities like food, healthcare, and transportation.
Seasonal Employment and Fair Housing Challenges
Tourism plays a central role in the Palm Springs economy, with the city attracting visitors year -round due to its warm climate and cultural offerings. The city’s tourism sector generates substantial employment opportunities, particularly in hospitality, retail, and food s ervice industries. However, many of these jobs are seasonal, leading to fluctuating employment levels and inconsistent income for workers. This creates additional challenges for fair housing, as workers in these industries often face income instability and are less likely to secure affordable housing during off-seasons.
Many service-sector jobs in tourism do not offer benefits such as healthcare or retirement savings, and wages are often not sufficient to cover the rising cost of living. The seasonal nature of these jobs also creates a situation where workers face periods of unemployment, making it difficult to maintain stable housing. As a result, seasonal workers are often forced to move in and out of the city or live in temporary housing arrangements, creating instability for them and their families.
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16 The table below shows the employment distribution in Palm Springs, broken down by industry:
Industry Percentage of Workforce
Leisure and Hospitality 33%
Retail Trade 12%
Health Care and Social Assistance 10%
Construction 9%
Other Services (except Public Administration) 8%
The data shows that over a third of Palm Springs’ workforce is employed in leisure and hospitality, which is highly dependent on seasonal tourism. This concentration in low-wage service industries leads to income instability and housing insecurity, particu larly for those without year -round contracts or benefits.
Demographic Diversity and Housing Equity
Palm Springs is renowned for its demographic diversity, with a significant LGBTQ+ population playing a pivotal role in shaping the city’s culture and identity. The LGBTQ+ community in Palm Springs, estimated at 40% of the population, significantly influences the local economy, particularly in the tourism and hospitali ty industries. The city’s inclusivity has made it a desirable location for LGBTQ+ individuals, yet disparities within this community must also be addressed to ensure fair housing access.
Additionally, the racial and ethnic composition of Palm Springs is diverse, with the following breakdown:
Ethnic Group Percentage of Population
White (Non-Hispanic) 62%
Hispanic or Latino 26%
African American 4%
Asian 4%
While Palm Springs has made significant strides in fostering inclusivity, disparities in housing access remain, particularly for Hispanic and African American residents, who have historically faced discrimination in the housing market. Ensuring that all racial and ethnic groups are afforded equal opportunities in housing is a crucial component of fair housing policy.
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17 The demographic and economic trends in Palm Springs present both challenges and opportunities for addressing fair housing. The rapid development of the city, driven by the growth of the tourism industry and the influx of retirees, has resulted in rising housing costs and income inequality. To ensure that all residents have access to safe, affordable housing, it is essential for Palm Springs to implement policies that promote housing equity.
Key initiatives to address fair housing issues in Palm Springs include:
1. Increasing Affordable Housing : The city should expand the availability of affordable housing units for low - and moderate -income residents, especially for seniors, seasonal workers, and other vulnerable populations.
2. Rent Control and Stabilization : Implementing rent control policies and other measures to stabilize rent prices would help protect renters from rising housing costs, which disproportionately affect low-income households.
3. Inclusive Housing Policies: Ensuring that all racial, ethnic, and sexual orientation groups have equal access to housing is vital to eliminating discrimination and fostering a more inclusive community.
4. Support for Seasonal Workers: Expanding benefits and housing assistance for seasonal workers would help alleviate housing instability caused by the seasonal nature of employment in Palm Springs.
5. Promoting Economic Diversity : Encouraging economic diversity through the development of higher-paying jobs in sectors like technology and education could help reduce the city’s reliance on low -wage service industries and improve housing affordability for a broader range of residents.
In conclusion, Palm Springs has the potential to address its fair housing challenges by implementing policies that promote affordability, inclusivity, and economic diversity. Through careful planning and collaboration between policymakers, developers, and community stakeholders, Palm Springs can create a more equitable housing market that meets the needs of all its residents, regardless of income, race, or background.
Housing stock and conditions.
The condition of the housing stock in Palm Springs plays a crucial role in ensuring equitable access to safe, habitable, and affordable housing for all residents. As of 2020, nearly 48% of the city's housing stock was over 40 years old. Older homes, often built with materials and technologies that do not meet current standards, are more prone to issues such as structural decay, outdated plumbing and electrical systems, and the presence of hazardous materials like lead -based paint. These challenges disproportionately affect low-income renters and homeowners, who may lack the financial resources to make necessary repairs or improvements. Given the high number of older homes, it is essential to Item 2A - Page 252
18 implement effective housing rehabilitation programs to maintain the quality of housing stock and ensure that all residents, especially those from vulnerable populations, have access to safe and healthy living conditions.
Housing Quality and Maintenance Challenges
Palm Springs has made efforts to maintain housing quality through local programs and initiatives; however, challenges remain, especially with regard to the aging housing stock. The older homes in the city tend to face structural issues, outdated infrastruc ture, and non -compliance with modern safety standards, all of which require ongoing maintenance and repair.
Older homes—especially those constructed before 1978 —may contain lead -based paint, which can pose significant health risks, particularly to children. Given the age of the housing stock, it is essential for the city to have robust housing rehabilitation programs in place to address these concerns.
Age of Housing Stock in Palm Springs
Year Built Housing Units Percent of Total
Built 2000 or Later 6,582 18%
Built 1980–1999 13,205 37%
Built 1960–1979 9,703 27%
Built Before 1960 6,522 18%
Source: American Community Survey (ACS), 2020; City of Palm Springs Housing Element.
As the table shows, nearly 48% of the city’s housing stock is more than 40 years old. These older units are more likely to require significant maintenance and upgrades to meet current health and safety standards. Substandard housing conditions —ranging from outdated plumbing and electrical systems to structural weaknesses—present a significant barrier to affordable ho using for low-income families and renters.
Housing Affordability and Cost Burden
Housing affordability continues to be a major issue in Palm Springs, particularly for lower -income households. Housing is considered affordable if no more than 30% of a household’s income is spent on housing costs. When housing expenses exceed 50% of a hou sehold's income, this is considered a "severe cost burden." The affordability crisis in Palm Springs is compounded by a tight rental market, high home prices, and limited rental availability.
As of the 2020 Comprehensive Housing Affordability Strategy (CHAS) data, a substantial proportion of both renters and homeowners in Palm Springs face cost burdens. Renters are disproportionately affected, with 44% experiencing a cost burden and 29% facing severe cost burdens. The figures for Item 2A - Page 253
19 homeowners are also concerning, with 29% of homeowners burdened by housing costs and 14% facing severe cost burdens.
Housing Cost Burden in Palm Springs by Tenure
Tenure Cost Burden (30 –
50%)
Severe Cost Burden
(>50%)
Total Cost -Burdened
Households
Renters 2,450 1,200 3,650
Homeowners 1,500 800 2,300
Total 3,950 2,000 5,950
Source: CHAS Data, 2020.
The table clearly highlights the significant housing affordability challenge in Palm Springs. The total number of cost-burdened households in the city stands at 5,950, with renters facing the brunt of this challenge. Housing affordability is critical to the fair housing agenda, as cost -burdened households often face difficult trade-offs between paying for housing and affording other necessities, such as food, healthcare, and transportation. Furthermore, those with severe cost burdens may experience significant housing instability, including eviction or homelessness.
Rental Market and Housing Availability
The tight rental market in Palm Springs exacerbates housing affordability issues. With a rental vacancy rate of just 4.3%, low - and moderate-income households have limited options for affordable rental housing. The low vacancy rate results in higher rents and increased competition for available units, further pushing out lower-income residents who cannot afford the rising prices. The demand for short- term rentals (e.g., vacation homes, Airbnb properties) further reduces the availability of long -term rental units, particularly in neighborhoods that were once affordable for working-class residents.
Rental market trends indicate that Palm Springs' housing supply does not meet the growing demand, especially for households at or below the median income level. As a result, there is an urgent need for policies that encourage the construction of more affordable housing units and rental properties, as well as strategies to balance the needs of short -term rental investors with long-term housing solutions for residents.
Overcrowding and Its Impact
Overcrowding is another indicator of housing stress in Palm Springs, particularly for low-income renters and large families. Overcrowding is defined as more than one person per room in a household. While the percentage of overcrowded households in Palm Springs is relatively low compared to national averages, it is still a significant issue, especially in neighborhoods with high concentrations of lower - Item 2A - Page 254
20 income renters. Approximately 5% of households in Palm Springs experience overcrowding, with the majority of these being renter-occupied units.
Overcrowding can have adverse effects on both physical and mental health, as individuals living in overcrowded conditions are at greater risk of respiratory illnesses, stress, and poor nutrition.
Overcrowded housing conditions are also associated with incr eased rates of school absenteeism and behavioral problems among children. The issue of overcrowding disproportionately impacts immigrant and low-income families, who may face challenges in finding affordable and adequately sized housing.
Overcrowding in Palm Springs by Tenure
Tenure Total
Households
Households with
Overcrowding
Percentage of Overcrowded
Households
Renters 11,570 1,800 15.6%
Homeowners 17,760 500 2.8%
Total 29,330 2,300 5.0%
Source: U.S. Census Bureau, 2020.
The table reveals that overcrowding is more prevalent among renters, with 15.6% of renter -occupied households experiencing overcrowding compared to only 2.8% of homeowner-occupied households.
This disparity reflects the challenges faced by lower -income renters, who are often forced to share housing units due to the high cost of rent and limited availability of affordable housing.
Addressing overcrowding requires increasing the availability of larger and more affordable rental units for families. Additionally, policies that provide financial support to renters, such as rental assistance or housing subsidies, could help reduce overcr owding by enabling families to move into appropriate housing.
Recommendations for Addressing Housing Quality and Affordability To address the issues of housing quality, affordability, and overcrowding, Palm Springs must implement a range of policy solutions focused on increasing housing accessibility and improving housing conditions for low-income residents.
1. Increase Investment in Housing Rehabilitation : Given the age of Palm Springs' housing stock, significant investment in housing rehabilitation is necessary to address substandard living conditions, especially in older homes. Expanding programs to assist low -income homeowners and renters with necessary repairs and improvements can help ensure that homes remain habitable and safe.
2. Expand Affordable Housing Development : The city should prioritize the construction of new affordable housing units, particularly for low - and moderate -income households. Affordable Item 2A - Page 255
21 housing development should focus on expanding the rental supply and include incentives for developers to create affordable units that are accessible to a broader spectrum of residents.
3. Rent Control and Rent Stabilization: Palm Springs should explore implementing rent control or rent stabilization policies to curb rising rents and prevent displacement, particularly for low - income renters. Such policies can help mitigate the effects of cost burden and housing instability.
4. Incentivize Long-Term Rentals: Policies that discourage the conversion of long-term rental units into short-term vacation rentals would help ensure that more rental units are available for local residents. Incentives for developers to build long-term rental units could also alleviate pressure on the rental market.
5. Targeted Support for Overcrowded Households : Addressing overcrowding requires providing more affordable family-sized rental units, as well as financial support for families struggling to afford adequate housing. Expanding housing assistance programs, such as Section 8 vouchers, could help reduce ov ercrowding by enabling families to access larger units in more desirable neighborhoods.
Palm Springs has taken significant steps to address the challenges associated with its aging housing stock, focusing on providing fair housing opportunities for all residents. However, the growing demand for housing, coupled with limited funding, highlights the need for more robust strategies to ensure housing quality, affordability, and accessibility. This section explores the city’s housing rehabilitation programs, environmental considerations, energy efficiency efforts, and poli cy initiatives aimed at promoting fair housing choices.
Housing Rehabilitation Programs
The City of Palm Springs has implemented a range of housing rehabilitation programs funded by federal and state resources, such as the Community Development Block Grants (CDBG) and HOME Investment Partnerships Program funds. These programs are designed to help low - and moderate -income households address structural deficiencies, outdated plumbing and electrical systems, and health hazards, including lead -based paint. Despite these efforts, demand for rehabilitation funds often exceeds the available supply. Many homeowners, especially those from lower -income households, struggle to maintain properties due to financial constraints, leading to deferred maintenance and, i n some cases, substandard living conditions.
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22 Housing Rehabilitation Program Utilization (2018–2023) Year Number of Units Rehabilitated Funding Allocated (in $) 2018 85 450,000
2019 93 500,000
2020 77 420,000
2021 102 550,000
2022 110 600,000
2023 98 580,000
Source: City of Palm Springs Housing Division.
As the table shows, the city’s rehabilitation programs have been instrumental in assisting hundreds of households each year. However, the gap between the number of applicants and available funding underscores the need for expanded resources and more inclusive access to these essential programs.
Ensuring equitable access to these rehabilitation funds is crucial for low -income families who live in older housing units, many of which require significant repairs to remain habitable.
Environmental Considerations in Housing Conditions
Palm Springs faces unique environmental challenges that complicate housing maintenance and preservation. The city's desert environment, characterized by extreme temperatures, high winds, and occasional flooding, accelerates the wear and tear on buildings, especially older units. These conditions require additional investment in property upkeep to ensure that homes remain habitable, safe, and resilient to climate-related risks. The climate resilience of housing is particularly critical for vulnerable populations, including low-income renters and homeowners who are less able to absorb the costs of necessary repairs or upgrades.
Energy Efficiency and Climate Adaptation
As part of its efforts to improve housing quality and promote fair housing choice, Palm Springs has initiated programs aimed at improving the energy efficiency of its housing stock. These programs focus on providing weatherization assistance for low -income households, helping to reduce energy costs while mitigating environmental impacts. These initiatives also contribute to the overall affordability of housing, as energy-efficient homes tend to have lower utility costs. However, to meet the needs of the city’s growing low - and moderate -income population, these efforts must be scaled up and made accessible to all eligible households.
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23 Energy Efficiency Program Participation (2019–2023)
Year Households Assisted Average Energy Savings (kWh) Funding Allocated ($) 2019 150 8,000 300,000
2020 165 9,200 350,000
2021 180 10,000 400,000
2022 200 11,500 450,000
2023 190 11,000 420,000
Source: Palm Springs Department of Sustainability.
As seen in the table, Palm Springs’ energy efficiency programs have expanded over the years, assisting more households and generating significant energy savings. These programs are particularly important for older housing units that may lack modern insulation and energy -efficient systems. Ensuring access to these programs is essential for reducing utility costs and enhancing housing affordability for low - income residents.
Policy and Planning Efforts for Housing Equity
Palm Springs has implemented several policies and planning measures aimed at ensuring equitable access to housing. Through its Housing Element Plan and other related initiatives, the city is working to increase the availability of affordable housing, preserve existing housing stock, and promote equitable access for all residents, regardless of income, race, or background.
One key component of the city's fair housing strategy is the preservation of naturally occurring affordable housing (NOAH), which includes rent stabilization measures for mobile home parks and incentives for landlords to maintain affordable units. These po licies are designed to prevent the displacement of residents from affordable housing units, particularly as the cost of living in Palm Springs continues to rise.
Regional Housing Needs Allocation (RHNA)
Palm Springs is required to meet the Regional Housing Needs Allocation (RHNA) goals set forth by the Southern California Association of Governments (SCAG). For the 2021–2029 planning cycle, the city has an allocation of 3,054 new housing units across various income categories, which will help address the region’s housing crisis and improve fair housing opportunities for residents. The allocation includes:
• Very Low-Income: 769 units
• Low-Income: 442 units
• Moderate-Income: 508 units
• Above Moderate-Income: 1,335 units
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24 Efforts to meet these goals include zoning updates, incentivizing affordable housing development, and streamlining the permitting process for new housing projects.
Progress Toward RHNA Goals (2021–2023)
Income Category RHNA Allocation Units Approved (2021–2023) Remaining Allocation Very Low-Income 769 200 569
Low-Income 442 150 292
Moderate-Income 508 220 288
Above Moderate-Income 1,335 850 485
Total 3,054 1,420 1,634
Source: City of Palm Springs Housing Element Annual Report.
The table shows that Palm Springs has made significant progress toward meeting its RHNA goals, particularly for above-moderate-income housing. However, the city must accelerate efforts to meet its goals for very low- and low-income households. Ensuring equitable housing opportunities requires that these units be prioritized and built in neighborhoods with access to key amenities such as transportation, healthcare, and education.
Challenges and Recommendations
While Palm Springs has made notable strides in addressing housing conditions and promoting fair housing choice, several challenges remain. Funding shortages continue to limit the capacity of housing rehabilitation programs and affordable housing initiative s, hindering their ability to meet growing demand. The aging housing stock, with nearly half of the city’s homes being over 40 years old, presents a significant challenge that requires substantial investments to modernize. Additionally, the unique environmental risks posed by the desert climate necessitate climate-resilient housing solutions.
Expanding rehabilitation programs is crucial to increasing the number of households that can maintain safe and habitable homes. This includes providing increased funding and expanding outreach efforts to better serve low- and moderate-income households. Similarly, energy efficiency initiatives should be scaled up to reach more households, with greater incentives for landlords to upgrade rental units to meet modern environmental standards. The permitting process for affordable housing developments should be streamlined to speed up the construction of much-needed units, particularly for low-income residents. Finally, strengthening housing code enforcement through regular inspections and penalties for noncompliance can ensure that rental properties are maintained in habitable conditions.
Housing Affordability in Palm Springs, California
Housing affordability continues to be a significant challenge in Palm Springs, California. As defined by federal guidelines, rental housing is considered "affordable" if individuals spend no more than 30% of Item 2A - Page 259
25 their income on rent, while homeownership is considered affordable when mortgage payments do not exceed 35% of a borrower’s income. When households exceed these thresholds, they experience a housing cost burden, which can have serious consequences. These include financial instability, limited ability to meet basic needs, and increased risk of eviction. Over time, housing cost burdens can also lead to overcrowding, deferred maintenance, and a decline in housing quality.
A housing cost burden occurs when a household spends more than 30% of its income on housing expenses. When the burden is severe—meaning more than 50% of income is spent on housing—it can lead to even more acute challenges.
In Palm Springs, a significant portion of the population faces housing cost burdens. According to recent data from the 2022 American Community Survey and the Comprehensive Housing Affordability Strategy (CHAS) 2021, approximately 18,500 households in Palm Springs experience some form of housing cost burden, which equates to over 30% of their income spent on rent or mortgage payments.
Of these households, about 3,800 face severe cost burdens, spending more than 50% of their income on housing costs. This financial strain can result in numerous negative consequences, such as increased vulnerability to eviction, housing instability, and deterioration in housing conditions.
For low-income households, the situation is even more dire. These families and individuals are often forced to make difficult trade -offs—prioritizing rent over basic needs such as food, healthcare, or education. As a result, these households may struggle t o meet their other financial obligations, perpetuating cycles of poverty and financial insecurity.
The impact of housing cost burdens in Palm Springs is particularly concerning given the city’s limited supply of affordable housing. As demand continues to outpace supply, many low-income residents are forced to seek out housing that may not meet basic living standards, or to accept overcrowded living conditions in order to afford rent. Furthermore, the escalating cost of housing in the area exacerbates these challenges, making it increasingly difficult for renters and prospective homeowners to find housing that is both affordable and suitable for their needs.
Addressing the issue of housing affordability in Palm Springs requires comprehensive strategies, including increasing the availability of affordable housing units, providing rental assistance, and developing policies that address the root causes of housing cost burdens.
Cost Burden by race/ethnicity
Examining housing cost burden through the lens of race and ethnicity reveals disparities among different groups in Palm Springs. This analysis highlights how cost burdens—defined as paying 30% or more of a household's income on housing —impact communities in varied ways. The following Item 2A - Page 260
26 breakdown shows the extent of the housing cost burden faced by different racial and ethnic groups in Palm Springs
Demographics of Households with Severe Housing Cost Burden in Palm Springs Race/Ethnicity # with Severe Cost
Burden
# of
Households
% with Severe Cost
Burden
White, Non-Hispanic 1,042 9,325 11.16%
Black, Non-Hispanic 209 1,650 12.67%
Hispanic 2,305 10,451 22.07%
Asian or Pacific Islander, Non-
Hispanic
230 1,565 14.70%
Native American, Non-Hispanic 20 150 13.33%
Other, Non-Hispanic 75 420 17.86%
Total 3,881 23,561 16.47%
Source: American Community Survey, 5-Year Estimates, 2022 and CHAS 2021.
According to the most recent data from the American Community Survey and CHAS 2021, 2,305 Hispanic households in Palm Springs experience severe housing cost burdens, representing 22.07% of the Hispanic population. This is the highest rate among racial and ethnic groups in the city, indicating that Hispanic households face the most significant challenges in housing affordability. Black households have a rate of severe cost burden at 12.67%, which, although lower than Hispanic households, still reflects considerable housing affordability stress. For Asian or Pacific Islander households, approximately 14.70% face severe housing cost burdens, highlighting ongoing affordability issues for this group.
In contrast, White, Non-Hispanic households experience a lower rate of severe housing cost burden at
11.16%. This indicates that White households generally experience fewer financial pressures related to housing, although affordability remains a challenge across all racial and ethnic groups in Palm Springs.
Smaller populations, such as Native American households, have 13.33% facing severe housing cost burdens, while Other, Non-Hispanic households have a slightly higher rate of 17.86%. Although these groups are less populous, the higher percentage of cost -burdened households in these categories signals a need for tailored support.
For the overall population in Palm Springs, 17% of households pay between 30-50% of their income on housing, while 15% pay more than 50%. This trend is more pronounced in certain racial and ethnic groups. Among Hispanic households, 22% spend between 30 -50% of their income on housing, and
20.07% of these households spend more than 50%. This indicates that a significant proportion of Item 2A - Page 261
27 Hispanic households face extreme housing cost burdens, underscoring the critical need for housing assistance.
In comparison, White households report that 36% of them pay more than 30% of their income on housing costs, with a smaller percentage experiencing extreme cost burdens (over 50%). This disparity between Hispanic and White households reflects the differing levels of affordability pressures faced by these communities.
The data illustrates that Hispanic households in Palm Springs experience housing cost burdens at disproportionately higher rates compared to other racial and ethnic groups. This disparity is especially evident when comparing the rates of severe cost burden between Hispanic and White households.
While Hispanic households face housing cost burdens at twice the rate of White households, they also represent a significant portion of the population in need of targeted housing assistance.
Addressing these disparities requires the implementation of targeted housing policies designed to alleviate the financial strain on communities most affected by high-cost burdens. This could involve the development of affordable housing specifically for low -income Hispanic households, the expansion of rental assistance programs, and the creation of subsidized housing options for Black and Asian communities. Additionally, financial education programs that empower households to manage housing costs and naviga te available resources will be crucial in reducing the overall cost burden in these communities.
Cost Burden by household type
The data presented in the following table reveals important insights into the cost burden experienced by various housing types in Palm Springs, highlighting potential barriers to fair housing choice in the city.
Cost Burden by Housing Type in Palm Springs (2022)
Housing
Type
Units with Cost
Burden (30-50%)
Units with Severe
Cost Burden (>50%)
Total
Units
% with Cost
Burden (30-
50%)
% with Severe
Cost Burden
(>50%)
Single-
Family Units
2,200 1,000 25,000 8.8% 4.0%
Multi-Family
Units
1,700 900 12,000 14.2% 7.5%
Mobile
Homes
400 200 2,500 16.0% 8.0%
Total 4,300 2,100 39,500 10.9% 5.3%
Source: American Community Survey (ACS) 2022 and CHAS Data Item 2A - Page 262
28 In Palm Springs, approximately10.9% of households face a cost burden, spending between 30-50% of their income on housing costs, while5.3% of households experience a severe cost burden, spending more than 50% of their income on housing. The severity of housing cost burdens varies across different housing types in the city.
Among single-family homes,8.8% of households experience a cost burden, with4.0% facing severe cost burdens. This suggests that while single -family homes are less affected by cost burdens than other types of housing in Palm Springs, a notable portion of residents still struggle with affordability.
For multi-family units, the situation is more pronounced. 14.2% of households in multi-family housing face cost burdens, and7.5% experience severe cost burdens. These households are often more vulnerable to housing affordability issues due to the lower average incomes typically found in multi - family developments, which often cater to low- and moderate-income families and individuals.
Mobile homes, though representing a smaller segment of the city's housing stock, show particularly high-cost burdens. Approximately16.0% of households in mobile homes face a cost burden, and8.0% are severely cost -burdened. This indicates that residents in mobile homes —who may already face challenges related to the age and condition of their homes—are particularly vulnerable to housing cost pressures.
Overview of Palm Springs’ Housing Market
Palm Springs also grapples with significant challenges related to housing affordability and fair housing access. Rising costs have disproportionately affected low- and moderate-income residents, and housing availability, particularly affordable units, remains constrained. The city’s housing market is also influenced by h istorical and ongoing discrimination, limiting fair access to housing for marginalized communities.
Despite efforts to eliminate overtly discriminatory practices, Palm Springs, like many other areas in California, continues to experience more subtle forms of discrimination. Data from the California Department of Fair Employment and Housing (DFEH) suggests that people of color, particularly African American and Latino renters and homebuyers, continue to face discriminatory treatment in both rental and real estate markets.
In Palm Springs, areas of higher economic status and lower minority populations—particularly those in the downtown and golf course areas —have become increasingly unaffordable to lower -income households. As a result, minority households tend to be pushed to areas with fewer amenities and opportunities for upward mobility, further entrenching cycles of economic inequality.
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29 Discriminatory Complaints and Housing Practices in Palm Springs (2020-2023) Year Total Discriminatory
Complaints
Racial Steering
Complaints
Predatory Lending
Complaints
Denial of Housing
Complaints
2020 15 5 3 7
2021 18 6 5 9
2022 20 7 4 10
2023 22 8 6 11
Source: California Department of Fair Employment and Housing (DFEH), 2023
The table above highlights the persistent issue of discrimination in Palm Springs' housing market.
Complaints about racial steering and denial of housing have increased over the past few years, indicating that there are still systemic barriers that limit equal access to housing opportun ities for minority groups. These issues contribute to the exclusion of low -income and minority residents from the more desirable parts of the city, reinforcing segregation.
Housing Supply and Demand Challenges
Like many cities in California, Palm Springs is facing a growing imbalance between housing supply and demand. As demand for housing in Palm Springs continues to rise—due in part to the city's popularity as a second-home destination and retirement community—the available supply of affordable housing remains limited. While new developments are occurring, many of these projects focus on luxury condos and vacation rentals, which are beyond the reach of low- and moderate-income households.
The city's housing market is also influenced by zoning laws, which limit the construction of new affordable housing units. Palm Springs, like many other California cities, has struggled to meet its Regional Housing Needs Assessment (RHNA) goals, particular ly in the category of affordable housing for low-income households. This gap in affordable housing has forced many residents to either remain in cost-burdened situations or face displacement due to rising rents.
Additionally, there is a growing issue with the conversion of long-term rental properties into short-term vacation rentals, which has exacerbated the affordable housing shortage. A large percentage of rental units, particularly in the more desirable neighborhoods, have been transformed into short-term rentals listed on platforms like Airbnb. This shift has reduced the stock of available long -term rental housing, further driving up rents and limiting options for residents who are seeking stable housing.
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30 Housing Supply and Demand in Palm Springs (2023)
Housing Type Total Units Available Affordable Units Percentage of Affordable Units Single-Family Homes 12,000 3,000 25%
Multi-Family Units 8,500 2,000 24%
Mobile Homes 3,500 1,200 34%
Luxury Apartments 2,000 0 0%
Source: Palm Springs Housing Authority, 2023
The table above reflects the ongoing challenge of providing affordable housing in Palm Springs. While mobile homes continue to make up a significant portion of the affordable housing stock, the supply of multi-family and single-family units that are affordable remains limited. The growing number of luxury apartment developments, which cater to higher -income residents, contributes to the reduction in available affordable units, further driving up housing costs.
Home Prices and Housing Affordability
In Palm Springs, home prices have increased substantially over the last several years, contributing to the affordability crisis in the city. As of 2023, the median home price in Palm Springs is approximately $600,000, which places it in a mid-range category compared to other cities in Riverside County. While it is more affordable than areas like Rancho Mirage and La Quinta, it remains far beyond the reach of many local residents, particularly those in low-income and minority communities.
The median home price in Palm Springs has risen by 40% in the last five years, primarily driven by an influx of second-home buyers and retirees looking for vacation properties. This increase in prices has made it difficult for first -time homebuyers and low er-income families to access homeownership. For many Palm Springs residents, buying a home has become increasingly out of reach, pushing them into the rental market, where high rents further contribute to the cost burden.
Median Home Prices in Palm Springs and Neighboring Cities (2023) City Median Home Price
Palm Springs $600,000
Rancho Mirage $850,000
La Quinta $750,000
Cathedral City $500,000
Indio $400,000
Source: Zillow Housing Trends Report, 2023
As shown in the table, Palm Springs is more affordable than neighboring areas such as Rancho Mirage and La Quinta, but it remains relatively expensive compared to nearby cities like Cathedral City and Item 2A - Page 265
31 Indio. The rising home prices in Palm Springs reflect broader trends in Riverside County, where demand for housing is outpacing supply. These price disparities limit access to homeownership for many residents and contribute to growing economic segregation.
Palm Springs faces a complex housing situation marked by rising costs, a growing demand for both long-term and short -term housing, and significant barriers to fair housing. The city's rental market, particularly in multi -family and mobile home units, is in creasingly burdened by rising costs that disproportionately affect low - and moderate -income households. At the same time, discriminatory practices and zoning restrictions contribute to housing inequities that limit access for minority groups.
To address these challenges, Palm Springs must prioritize affordable housing development, increase enforcement of fair housing laws, and reconsider zoning policies that limit the construction of affordable housing. Additionally, the city should consider me asures to mitigate the impact of short - term rentals on the availability of long-term housing options.
Rental Market
Examining rental market trends in Palm Springs reveals a consistent rise in rental prices, similar to other areas in Riverside County. The rental market has been tightening, with notable price increases over the past few years. These rising costs are compounded by economic pressures, making it difficult for low - and moderate -income families to secure affo rdable housing. From 2018 to 2022, Palm Springs saw significant rental increases across all bedroom categories.
Median Gross Rent by Bedrooms in Palm Springs (2018 - 2022) Number of Bedrooms 2018 2019 2020 2021 2022 Percent Change (2018 - 2022) Studio $1,150 $1,200 $1,250 $1,300 $1,350 17.4%
1 Bedroom $1,600 $1,650 $1,700 $1,800 $1,950 21.9%
2 Bedrooms $2,000 $2,100 $2,200 $2,350 $2,500 25.0%
3 Bedrooms $2,700 $2,800 $2,950 $3,100 $3,250 20.4%
4 Bedrooms $3,400 $3,500 $3,700 $3,900 $4,200 23.5%
5 or More Bedrooms $4,500 $4,700 $4,900 $5,100 $5,500 22.2% Median Gross Rent $1,800 $1,950 $2,050 $2,200 $2,400 33.3% Source: American Community Survey (ACS) 2018-2022
Over a 4 -year period, Palm Springs' rental market experienced substantial increases in rental costs across various categories. For example, a one-bedroom apartment saw a 21.9% increase, from $1,600 in 2018 to $1,950 in 2022. The overall median rent also increased by 33.3%, from $1,800 in 2018 to $2,400 in 2022. These increases reflect rising demand, but they also highlight affordability concerns for residents. Many low - and moderate -income households may struggle to secure housing without spending more than 30% of their income on rent, which may lead to financial strain and displacement.
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32 The rising rental prices also contribute to housing instability, especially for marginalized groups such as seniors, disabled individuals, and low-income renters. Moreover, the gap between rental prices in Palm Springs and neighboring areas with more affor dable options may push families into economically disadvantaged neighborhoods, further contributing to inequality.
Mortgage Lending Practices in Palm Springs
Examining mortgage lending practices in Palm Springs provides important insight into the barriers minority groups face when accessing homeownership. Using data from the 2022 Home Mortgage Disclosure Act (HMDA), we can see significant disparities in loan origination rates and denials across racial and ethnic groups.
2022 HMDA Data for Palm Springs
Race/Ethnicity Applications
Received
Loans
Originated
Applications
Denied
Percentage
Originated
(%)
Percentage
Denied (%)
Loan Amount
American
Indian/Alaska
Native
880 198 682 22.5% 77.5% $187,500,000
Asian 5,290 3,750 1,370 71.0% 25.9% $1,925,500,000
Black or African
American
2,118 1,067 1,051 50.4% 49.6% $762,000,000
Native
Hawaiian/Pacific
Islander
275 162 113 59.0% 41.0% $45,000,000
White 35,471 30,986 4,485 87.3% 12.6% $11,560,000,000
Total 44,034 36,163 7,990 82.1% 18.2% $15,380,000,000
Source: Home Mortgage Disclosure Act (HMDA) 2022
Palm Springs exhibits significant disparities in mortgage lending outcomes. For instance, while White applicants had the highest loan origination rate (87.3%) and the largest loan amounts ($11.56 billion), Black applicants faced a much higher denial rate (49.6%), despite submitting fewer applications (2,118).
Similarly, American Indian/Alaska Native applicants faced the highest denial rate (77.5%) and originated only 22.5% of their loans.
These disparities suggest that racial and ethnic minorities in Palm Springs continue to face systemic barriers to accessing credit. Potential factors contributing to these disparities include historical and contemporary discrimination in lending, socioecon omic factors, and implicit biases within the mortgage industry.
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33 Foreclosures and Evictions in Palm Springs
Foreclosures and evictions are critical indicators of housing stability and fair housing choices. These events can disproportionately affect low -income families, racial minorities, and other vulnerable groups, exacerbating existing inequities in the housing market. In Palm Springs, foreclosures remain relatively stable, but rising interest rates and home prices may increase the pressure on homeowners, particularly those in financially precarious situations.
Palm Springs Foreclosure Trends (2024)
Metric Palm Springs Riverside County Average
Total Foreclosures (Starts) 0.3% of homes 0.6% of homes Year-over-Year Change 1.5% increase 5.0% increase
Mortgage Delinquency Rate 1.8% - 2.0% 2.2%
Average Home Price $750,000 $530,000
Foreclosures as % of Home Sales 0.3% 0.5%
Source: RealtyTrac Palm Springs Foreclosure Data 2024
Palm Springs has a relatively low foreclosure rate compared to Riverside County, with only 0.3% of homes starting the foreclosure process. This is lower than the county’s average of 0.6%. However, the year-over-year increase in foreclosures (1.5%) and the mortgage delinquency rate (1.8% - 2.0%) suggest that some homeowners are beginning to face financial difficulties. These pressures are exacerbated by rising home prices and higher interest rates, which can make mortgage payments unaffordable for some homeowners, especially those in low-income brackets.
While the foreclosure rate remains relatively stable, the challenges facing lower -income and minority homeowners are important to monitor, as these groups may experience a higher risk of foreclosure due to historical financial inequalities, lack of access to affordable credit, and the ongoing economic impacts of the COVID-19 pandemic.
The housing market in Palm Springs, California, reflects broader trends observed across Southern California, including rising rental prices, significant disparities in mortgage lending, and stable but concerning foreclosure rates. The rental market continu es to become less affordable for low - and moderate-income households, while mortgage lending practices reveal notable inequities for minority applicants. Although foreclosures remain relatively low, rising financial pressures may increase risks, particularly for vulnerable groups.
Eviction Trends
In 2024, Palm Springs, California, is experiencing a significant shift in its eviction landscape, reflecting broader housing challenges across Riverside County and California. While the city's eviction rate Item 2A - Page 268
34 remains relatively low compared to other parts of Riverside County, recent data indicates an increase in eviction filings, rising approximately 5% compared to the previous year. This uptick mirrors the ongoing economic pressures in the rental market, such as rising rents, inflation, and the continued impacts of the COVID-19 pandemic. Despite Palm Springs’ relatively low unemployment rate and economic stability, these eviction trends highlight growing concerns regarding housing affordability and tenant vulnerability.
Factors Contributing to Increased Evictions
One of the key drivers behind the increase in eviction filings is the affordability crisis in Palm Springs’ rental market. In 2024, the average cost of a one-bedroom apartment in Palm Springs is approximately $1,800 per month, a significant strain on many lower-income renters. Wages for many renters have not kept pace with the increasing cost of living, and the financial burden is pushing more tenants to the brink of eviction. This issue has been exacerbated by the expiration of temporary tenant protections that were in place during the pandemic. While these protections helped prevent a surge in evictions during the height of the pandemic, the expiration of such measures has left many renters, particularly those who fell behind on rent during this period, vulnerable to eviction filings.
Moreover, a concerning trend in Palm Springs is the rise in no-fault evictions, where tenants are evicted for reasons unrelated to their behavior, such as rent increases, property redevelopment, or landlord owner move-ins. No-fault evictions have become more frequent as the demand for housing continues to rise, and developers look to capitalize on profitable redevelopment opportunities or higher rents.
Vulnerable populations —including seniors, families with children, and communities of color —are disproportionately affected by no-fault evictions. This trend leads to increased housing instability and displacement, contributing to further economic and racial inequalities in the city.
Eviction Data in Palm Springs vs. Riverside County (2024) Metric Palm Springs Data (2024) Riverside County Average (2024) Total Eviction Filings 5% increase YoY 7% increase YoY
Average Rent (1 Bedroom) $1,800/month $1,700/month
Eviction Rate (Cases Resulting
in Eviction)
8-10% of filings 15-20% of filings
No-Fault Evictions Increase observed Common across Riverside County Eviction Assistance Programs
Access
Limited for low-income
renters
Available in certain areas, but limited
overall
Tenant Protections Limited post-COVID
protections
Varies by city, but less effective for low-
income renters
Source: Riverside County Department of Housing and Community Development, and Superior Court
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35 While the rise in eviction filings in Palm Springs is concerning, the city’s eviction rate remains relatively low compared to the broader Riverside County average. Approximately 8-10% of eviction filings result in actual eviction orders, indicating that most cases are resolved through rental assistance programs, legal defense, or landlord negotiations. However, for the tenants who face eviction, the consequences can be severe, including economic hardship, housing instability, and displacement to less affordable areas.
A notable trend in Palm Springs is the increase in no-fault evictions, which, while not caused by tenant behavior, lead to the displacement of vulnerable renters. With rising demand for housing and an influx of wealthier residents, many long-term renters, especially those from historically marginalized groups, face displacement. This exacerbates socioeconomic disparities and deepens economic segregation within the city, as lower-income renters are increasingly unable to afford rising rents.
Impact on Vulnerable Populations
Evictions in Palm Springs disproportionately affect low -income renters, particularly renters of color.
Many renters earning near or at minimum wage lack the financial security or resources to fight eviction filings. This creates a system of inequality, whe re the most vulnerable tenants are at higher risk of displacement, homelessness, and further economic hardship. The availability of rental assistance programs and legal defenses plays a critical role in preventing evictions, but limited access to these resources exacerbates disparities in the city.
While Palm Springs’ eviction rate remains lower than the county average, the increase in eviction filings—especially no-fault evictions—reflects broader affordability and housing instability challenges facing the city. Vulnerable populations, including low -income renters and communities of color, are disproportionately impacted by these trends. However, recent efforts, including the implementation of new tenant protections, offer hope for renters facing displacement. By increasing financial support for disp laced tenants and ensuring better enforcement of tenant rights, Palm Springs is taking important steps toward mitigating the impacts of rising eviction rates and fostering greater housing stability for its most vulnerable residents.
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36 Review of Fair Housing Laws
Summary of federal, state, and local fair housing laws.
Fair housing laws are a vital aspect of ensuring equity and justice in housing markets. These laws prohibit discrimination and create safeguards for people against unfair practices in housing, whether they are renting or purchasing property. They aim to en sure that all individuals, regardless of race, gender, disability, or familial status, have equal access to housing opportunities.
This analysis explores the fair housing laws at three levels: federal, state (California), and local (City of Palm Springs). By comparing these three areas of law, this document will provide an understanding of how these laws complement each other and address the evolving challenges in housing access.
Federal Fair Housing Laws
Fair Housing Act (1968)
The Fair Housing Act (FHA) , Title VIII of the Civil Rights Act of 1968, forms the cornerstone of U.S. housing discrimination law. It was enacted in the wake of the Civil Rights Movement to combat housing discrimination, which was widespread and often institutionalized, particularly against African Americans and other racial minorities.
The key provisions of the FHA prohibit discrimination in housing based on seven protected characteristics:
• Race
• Color
• National Origin
• Religion
• Sex
• Familial Status (families with children under 18)
• Disability
The FHA covers nearly all housing-related activities, including the sale or rental of housing, advertising, mortgage lending, and the insurance of housing. Its provisions also cover both private and public housing and extend to housing practices like zoning and land use decisions.
Fair Housing Amendments Act (1988)
The Fair Housing Amendments Act (FHAA) of 1988 significantly strengthened the original FHA. It expanded the scope of the law and enhanced its enforcement provisions. Two major changes were introduced with the FHAA:
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37 1. Increased Protections for Disabled Individuals : The FHAA made it mandatory for housing providers to make reasonable accommodations for individuals with disabilities. For example, landlords must allow tenants to modify their living spaces to accommodate their disabilities, or they must provide accessible features in new developments.
2. Familial Status Protection : The FHAA clarified and expanded protections for families with children, ensuring they could not be discriminated against in housing-related transactions.
Increased enforcement power was also granted to the U.S. Department of Justice and the Department of Housing and Urban Development (HUD) to combat discrimination.
Enforcement of Fair Housing Law
HUD is the federal agency responsible for enforcing the Fair Housing Act. It is tasked with receiving complaints of discrimination, investigating those complaints, and taking enforcement action when necessary. If a violation is found, HUD can either facilitate conciliation between the parties involved or file a lawsuit in federal court on behalf of the complainant.
In addition to HUD’s role, private individuals also have the right to file lawsuits under the FHA. The law allows for damages, including compensation for actual damages and punitive damages, which serve as a deterrent to discriminatory practices.
Other Federal Laws Affecting Housing
In addition to the FHA, other federal laws also impact fair housing practices:
• Equal Credit Opportunity Act (ECOA) (1974): Prohibits discrimination in lending, including mortgage lending.
• Americans with Disabilities Act (ADA) (1990): Requires accessibility in public spaces and accommodations, which includes housing.
• Housing for Older Persons Act (HOPA) (1995): Provides exemptions for housing for older adults but mandates that such housing must be designed to meet the needs of seniors and disabled individuals.
California Fair Housing Laws
California has long been a leader in civil rights protections, and its fair housing laws are some of the most robust in the country. These laws not only align with federal protections but also expand on them to address issues unique to the state.
California Fair Employment and Housing Act (FEHA)
The California Fair Employment and Housing Act (FEHA), originally passed in 1959 and amended several times, is California’s primary law addressing housing discrimination. It covers many of the same bases Item 2A - Page 272
38 as the federal Fair Housing Act but extends protections to additional categories and provides stronger enforcement mechanisms.
The FEHA protects against discrimination in housing on the basis of the following characteristics:
• Race, color, national origin, religion, sex, gender identity, gender expression, sexual orientation, marital status, familial status, source of income, disability, and more. • Source of income protection ensures that renters cannot be discriminated against if they rely on subsidies, such as Section 8 or other public assistance programs.
California Civil Code Section 51 (Unruh Civil Rights Act) The Unruh Civil Rights Act (Civil Code Section 51) offers further protections by prohibiting discrimination in all business practices, including housing. This law applies to all businesses, not just housing providers, and ensures that individuals cannot be discriminated against in any business-related activity due to race, color, religion, sex, disability, or other protected characteristics.
California Rent Control Laws
California’s rent control laws are an essential part of the fair housing landscape. The California Statewide Rent Control Act (AB 1482), which came into effect on January 1, 2020, limits how much and how frequently rents can be increased for certain reside ntial properties, helping to protect tenants from skyrocketing rents that could lead to displacement. These protections are particularly important in cities like Los Angeles and San Francisco, where gentrification and rising property values have caused significant housing instability for low-income renters.
California Housing Accountability Act
The California Housing Accountability Act is a powerful tool that ensures cities and counties cannot reject affordable housing developments arbitrarily. Under the act, local governments are required to allow affordable housing developments that meet zoning standards, thus reducing the likelihood of zoning practices that may disproportionately impact low-income communities.
City of Palm Springs Fair Housing Laws and Policies
The City of Palm Springs has implemented fair housing laws and policies to ensure equal access to housing and address affordability and discrimination issues. The city’s unique housing challenges, such as its reliance on the tourism industry and the impact of short-term rentals, require local policies beyond federal and state regulations. Palm Springs enforces local ordinances, tenant protections, zoning regulations, and affordable housing initiatives to promote fair housing and prevent discriminatory practices (City of Palm Springs, 2024).
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39 Local Fair Housing Ordinances and Anti-Discrimination Policies Palm Springs enforces anti-discrimination policies through its municipal code, which prohibits housing discrimination based on race, color, national origin, disability, gender, sexual orientation, familial status, and other protected classes (Palm Springs Municipal Code, 2024). The Palm Springs Human Rights Commission plays a role in educating residents about their housing rights and providing assistance in fair housing complaints.
The city partners with organizations such as the Fair Housing Council of Riverside County to address discrimination and offer legal support to tenants. These partnerships ensure that residents facing housing discrimination can access mediation services and legal resources to challenge unfair practices (Fair Housing Council of Riverside County, 2023).
Short-Term Rentals and Their Impact on Fair Housing
Palm Springs’ tourism industry drives demand for short-term vacation rentals (STRs), leading to concerns about their impact on fair housing. While STRs contribute to the local economy, they reduce the availability of long-term rental housing and drive up costs for permanent residents (Palm Springs Department of Housing, 2024).
To mitigate these effects, the city enforces strict STR regulations, including:
• A cap on the number of STR permits.
• Limits on the number of rental days per year for non-owner-occupied properties. • Transient Occupancy Taxes (TOT) collected from STR operators, with portions allocated to affordable housing programs (Palm Springs City Council, 2024).
Despite these regulations, STR conversions continue to contribute to housing shortages, particularly for low-income renters. The city is evaluating additional measures, such as stricter enforcement and new incentives for long-term rentals (Palm Springs Housing Report, 2024).
Zoning and Land Use Policies
Palm Springs has adopted zoning and land use policies to promote affordable housing development, but restrictive zoning in some areas limits housing diversity. The city uses:
• Inclusionary Zoning: Developers must include affordable housing in new projects or pay in-lieu fees to support affordable housing funds (Palm Springs General Plan, 2024). • Accessory Dwelling Units (ADUs): Regulations have been relaxed to encourage the development of ADUs, providing additional rental housing options (California Department of Housing and Community Development, 2024).
• Density Bonuses: Developers who allocate a portion of units to affordable housing receive incentives such as increased building density and reduced parking requirements (Palm Springs Planning Department, 2024).
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40 While these policies help promote affordability, single-family zoning restrictions in certain neighborhoods limit the availability of multi-family housing. Critics argue that rezoning efforts should expand to allow for more affordable developments (Palm Springs Housing Element, 2021-2029).
Tenant Protections and Eviction Policies
To protect tenants, Palm Springs has enacted several ordinances aimed at preventing unfair evictions and excessive rent increases (Palm Springs Renters’ Rights Ordinance, 2023).
Key tenant protections include:
• Just Cause Eviction Ordinance: Landlords must provide a legal reason for evicting tenants, such as non-payment of rent or lease violations (Palm Springs Municipal Code, 2023). • Rent Stabilization Efforts: While Palm Springs does not have traditional rent control, city leaders are considering policies to prevent rent hikes that disproportionately impact low- income renters (Palm Springs City Council, 2024).
• Relocation Assistance: Tenants displaced by no-fault evictions receive financial assistance to secure new housing (Palm Springs Housing Department, 2024).
Despite these measures, eviction rates in Palm Springs have increased due to rising rental costs and the reduction of available long-term rental units. Many residents face displacement, leading the city to expand rental assistance programs (Palm Springs Eviction Report, 2024).
Affordable Housing Programs and Initiatives
Palm Springs supports affordable housing development through several programs:
• Affordable Housing Trust Fund: The city collects fees from developers and short-term rental taxes to fund affordable housing projects (Palm Springs Housing Authority, 2024). • Nonprofit Housing Partnerships: The city collaborates with organizations to develop and manage low-income housing, ensuring access for vulnerable populations (Riverside County Housing Coalition, 2024).
• First-Time Homebuyer Assistance: Financial aid, including down payment assistance and low- interest loans, helps residents purchase homes (Palm Springs Homeownership Program, 2024).
However, demand for affordable housing exceeds supply, leading the city to explore additional funding options and policy measures to expand access (Palm Springs Housing Needs Assessment, 2024).
Challenges and Future Policy Considerations
Despite progress, Palm Springs faces ongoing fair housing challenges, including:
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41 • Gentrification and Displacement: Rising property values displace lower-income residents, highlighting the need for stronger anti-displacement policies (Palm Springs Housing Report, 2024).
• Limited Land for Development: Geographic constraints and zoning laws restrict new housing construction, requiring creative land-use solutions (Palm Springs General Plan, 2024). • Homelessness: The city has experienced a rise in homelessness, driven by the lack of affordable housing options (Riverside County Homeless Report, 2024).
Future policy considerations include:
• Expanding tenant protections to prevent displacement. • Increasing incentives for affordable housing development. • Strengthening enforcement of fair housing laws to eliminate discrimination.
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42 Fair Housing Practices in Palm Springs
Fair housing organizations play a crucial role in Palm Springs by ensuring that all residents have access to equitable and non-discriminatory housing opportunities. Various organizations and programs operate within the city to address housing-related discrimination, tenant rights, and landlord-tenant disputes. These efforts are essential in mitigating issues such as housing instability, affordability challenges, and fair housing violations.
Fair Housing Council of Riverside County
The Fair Housing Council of Riverside County, Inc. (FHCRC) is one of the key organizations providing fair housing assistance to Palm Springs residents. This nonprofit agency administers fair housing programs and landlord-tenant mediation services. FHCRC provides education on housing rights, investigates discrimination claims, and offers direct support to tenants and landlords in dispute resolution (LT Palm Springs Semi-Annual Report 1st Half, 2023).
From January to June 2023, the FHCRC assisted 287 households and 494 individuals through their landlord-tenant services program. Among these, 112 individuals were classified as extremely low- income (≤30% AMI), and 94 were between 30-50% AMI. The majority of beneficiaries identified as White (170), followed by Black/African American (51) and Asian (5). Additionally, 110 disabled individuals received services (LT Palm Springs Semi-Annual Report 2nd Half, 2023). The organization focuses on providing education and mediation, ensuring that tenants understand their rights under local, state, and federal housing laws.
In comparison, the January to June 2022 report showed 280 households served, with 475 individuals assisted. The racial and income distribution showed similar trends, with 109 individuals classified as extremely low-income and 207 between 30-50% AMI (LT Palm Springs Semi-Annual Report 2nd Half, 2022). The increasing need for fair housing services underscores the ongoing challenges renters face in Palm Springs, including affordability concerns and potential discriminatory practices.
Landlord-Tenant Mediation Services
The FHCRC also provides landlord-tenant mediation services to prevent disputes from escalating into evictions. Mediation efforts include:
• Resolving disputes related to rent increases, repairs, and lease violations. • Providing legal assistance referrals to tenants facing eviction. • Educating landlords about their obligations under fair housing laws.
Mediation services are vital for preserving housing stability and preventing homelessness, especially for low-income and disabled residents. The FHCRC’s reports indicate that many tenants in Palm Item 2A - Page 277
43 Springs seek assistance due to high rent burdens and landlord disputes, a trend that has been increasing annually (FH Palm Springs Semi-Annual Report 1st Half, 2022).
Community Engagement
Summary of community input and involvement in the AI process.
The City of Palm Springs engaged the community through multiple avenues to gather input for the Analysis of Impediments to Fair Housing Choice (AI). This process included public hearings, a 30 -day public comment period, and a Fair Housing Survey, which pro vided valuable insights into residents' experiences and concerns regarding housing discrimination.
Public Hearings and Community Meetings
The City of Palm Springs held public hearings to allow residents to voice their concerns and provide input on housing issues affecting fair housing access. These meetings were critical in identifying key issues and potential solutions. The most recent public hearing occurred on April 24, 2025, at Palm Springs City Hall, during which stakeholders, community members, and advocacy groups were encouraged to participate (NOTICE OF 30 Palm Springs).
Additionally, a 30 -day public comment period was held from March 1 3, 2025, to April 1 3, 2025, providing community members the opportunity to review and submit feedback on the Draft AI (NOTICE OF 30 Palm Springs). The City made the draft documents available for review at:
• Palm Springs City Hall (Community & Economic Development Department) • Palm Springs Public Library
• Online at the City of Palm Springs website
These engagement efforts ensured that residents and stakeholders had multiple opportunities to share their perspectives on housing barriers, discrimination, and potential policy recommendations.
Findings from the Fair Housing Survey
The Palm Springs Fair Housing Survey gathered responses from 71 participants and revealed concerns regarding housing discrimination, affordability, and access to fair housing. The survey addressed issues such as discriminatory practices, knowledge of fair housing rights, and possible solutions to improve fair housing conditions in Palm Springs (Fair Housing Survey Results with Comments).
Housing Discrimination Experiences
• 26.76% of respondents reported that they had personally encountered or knew someone who had faced housing discrimination.
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44 • 64.79% of respondents stated they had not experienced discrimination. • 8.45% were unsure whether they had encountered housing discrimination.
Types of Discrimination Reported
Among those who indicated discrimination, the most common types included:
• Refusal to rent, discouragement, or increased rental/home purchase costs (52.17%) • Steering tenants to specific neighborhoods or buildings (30.43%) • Discriminatory mortgage lending practices (8.70%)
• Refusal to accommodate disabilities (8.70%)
• Predatory lending practices (13.04%)
Some respondents noted specific issues, such as bias against mobile home residents, exclusion of tenants using Desert AIDS Project funding, and landlords requiring proof of monthly income three times the rent despite tenants having sufficient savings (Fair Housing Survey Results with Comments).
Awareness of Fair Housing Rights
• 56.34% of respondents felt well-informed about fair housing rights. • 33.80% felt they were "somewhat" informed.
• 7.04% admitted they were uninformed.
• 2.82% felt they had insufficient knowledge.
This data suggests a need for expanded fair housing education and outreach efforts to ensure all residents understand their rights and where to seek help if they face discrimination.
Reporting Housing Discrimination
• 77.46% of respondents said they would report housing discrimination. • 21.13% were unsure how to proceed.
• 2.82% stated they would ignore the issue.
Among those who would report discrimination, most identified the City of Palm Springs, HUD, or the State of California as the primary authorities. However, some respondents indicated a lack of awareness regarding the appropriate reporting channels (Fair Housing Survey Results with Comments).
Perceived Prevalence of Housing Discrimination
When asked what types of discrimination they believed were most common in Palm Springs, respondents mentioned:
• Racial discrimination (repeatedly cited as a concern) • Bias against LGBTQ+ individuals, including transgender residents • Income-based discrimination against low-income renters Item 2A - Page 279
45 • Discrimination against individuals living with HIV/AIDS • Retaliation against tenants requesting repairs or maintenance • Exclusionary housing practices against seniors and people with disabilities
These findings align with broader housing concerns in Palm Springs, particularly regarding affordability and accessibility.
Suggested Solutions to Prevent Housing Discrimination
Survey respondents provided various recommendations for reducing discrimination in the Palm Springs housing market:
• Stronger enforcement of fair housing laws
• Increased public awareness and tenant education
• Greater penalties for landlords engaged in discriminatory practices • Expanding the availability of affordable housing
• Limiting the prevalence of short-term rentals, which reduce housing availability • Mandatory fair housing training for landlords and property managers
These suggestions highlight the need for a comprehensive approach that combines enforcement, education, and policy changes to improve fair housing access.
The community engagement process for the AI provided valuable insights into the challenges and barriers that residents face regarding fair housing in Palm Springs. Through public hearings, the Fair Housing Survey, and the public comment period, residents v oiced their concerns about housing discrimination, affordability challenges, and the need for stronger enforcement of fair housing laws.
The results indicate a clear need for expanded education efforts, stronger legal enforcement, and policy interventions to ensure that all Palm Springs residents have equal access to housing opportunities. By incorporating community feedback, the City can d evelop more effective strategies to combat discrimination and improve fair housing conditions for all residents.
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46 Identification of Impediments to Fair Housing Choice in Palm Springs Quantitative Data Analysis: Statistics and Trends in Housing Discrimination, Affordability, and Access
The housing landscape in Palm Springs reflects challenges in affordability, discrimination, and access to housing opportunities. The city's unique demographic profile, combined with its status as a tourist and retirement destination, contributes to distinct housing challenges. Quantitative data from local fair housing reports, community engagement surveys, and enforcement records provide insights into fair housing issues in Palm Springs.
During the development of the Analysis of Impediments to Fair Housing Choice (AI), Palm Springs collected survey responses from local residents regarding their experiences and perceptions of housing discrimination, affordability, and access. While the results do not represent the entire population, they offer a valuable perspective on the challenges faced by specific groups in the community.
Housing Discrimination in Palm Springs
Housing discrimination remains an issue in Palm Springs, though efforts to promote fair housing are ongoing. The Fair Housing Survey revealed that 27.3% of respondents had either personally experienced or knew someone who had encountered discrimination while seeking housing. This statistic underscores the need for continued vigilance and proactive measures to ensure that all residents have equal access to housing opportunities. The survey responses pointed to multiple forms of discrimination, including biases based on income, race, familial status, disability, and LGBTQ+ identity. While challenges persist, increased awareness and enforcement efforts can help create a more inclusive housing market.
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Forms of Housing Discrimination in Palm Springs
Discrimination
Discrimination
Discriminat ion
1ding Practices
Discrimination
Discrimination
o 5 10 15 20 25 30 35
Percentage of Respondents
47 Among the various types of discrimination reported, income-based bias emerged as the most frequently cited issue, accounting for 30% of cases. Many renters reported difficulty in securing housing due to landlords refusing to accept Housing Choice Vouchers (Section 8) or imposing stricter rental requirements on low-income tenants. These barriers disproportionately affect individuals and families with limited financial resources, making it more challenging to find stable housing. The City of Palm Springs continues to explore ways to incentivize landlords to accept vouchers and to educate property owners on fair housing laws.
Race and ethnicity discrimination was identified by 25% of respondents as a significant issue in the local housing market. This finding suggests that communities of color continue to encounter obstacles when renting or purchasing homes. Some renters and buyers reported being steered toward specific neighborhoods or facing higher security deposit requirements than their white counterparts. Homeownership disparities reflect broader national trends, where minority applicants are often subjected to higher mortgage interest rates or face loan denials at disproportionate rates.
Addressing these disparities requires a combination of policy enforcement, financial literacy initiatives, and collaboration with housing organizations to expand access to affordable homeownership opportunities.
Discrimination based on familial status was another common issue, with 20% of respondents indicating that they or someone they knew had faced challenges due to having children. Some landlords have expressed reluctance to rent to families with children, citing occupancy concerns or maintenance issues. While fair housing laws prohibit discrimination against families, awareness campaigns and enforcement measures can help ensure compliance. The city has been working to promote housing developments that accommodate families and provide affordable rental options that meet the needs of households with children.
Predatory lending practices were noted by 15% of survey participants, particularly among minority borrowers. These individuals reported being subjected to higher interest rates, excessive fees, or outright loan denials. Such practices not only make homeownership less accessible but also contribute to economic disparities that can span generations. Strengthening oversight of mortgage lending practices and expanding financial assistance programs for first-time homebuyers can help bridge this gap and support greater economic mobility.
Disability-based discrimination accounted for 10% of reported cases, with many individuals facing difficulties in securing housing that met their accessibility needs. Some landlords were unwilling to make reasonable accommodations, such as installing wheelchair ramps or modifying units to better suit tenants with disabilities. Ensuring that housing providers comply with accessibility requirements is essential for fostering an inclusive environment where individuals of all abilities can live Item 2A - Page 282
48 independently and comfortably. Increasing the availability of accessible housing units and offering incentives for property owners to make necessary modifications will help address these challenges.
Although reported at a lower rate, LGBTQ+ discrimination was still a concern, with 5% of respondents indicating that they or someone they knew had faced bias in the housing market. Some same-sex couples and transgender individuals described instances where they were denied rental opportunities or faced harassment. While Palm Springs has a long-standing reputation for being an inclusive and welcoming city, ongoing education efforts can reinforce fair housing protections and ensure that LGBTQ+ individuals have the same access to housing as all other residents.
The findings from the survey align with data from Palm Springs’ Fair Housing Reports from 2021 to 2023, which documented numerous cases of discrimination. Disability-related cases accounted for nearly half of all reported incidents, while race and familial status were also common factors in discrimination claims. Despite existing protections at the state and local levels, enforcement remains an ongoing challenge. Many residents may not report discrimination due to a lack of awareness about their rights or concerns that their complaints will not be addressed. Expanding outreach efforts and ensuring that fair housing agencies have the resources necessary to investigate complaints effectively will be critical in strengthening enforcement.
Palm Springs continues to work toward eliminating housing discrimination through a combination of policy initiatives, education, and collaboration with community organizations. Encouraging inclusive rental policies, expanding homeownership opportunities, and addressing systemic barriers to housing access will help create a more equitable environment for all residents. As the city advances these efforts, continued engagement with residents, housing advocates, and stakeholders will be key in fostering a housing market that is fair and accessible to everyone.
Awareness and Reporting of Housing Discrimination
Ensuring fair housing for all residents requires not only strong policies but also robust public awareness and enforcement mechanisms. The Fair Housing Survey conducted in Palm Springs highlights critical gaps in knowledge about fair housing rights among residents, suggesting a need for expanded education and outreach efforts. While a slight majority of respondents (50.2%) reported being well-informed about their fair housing rights, a significant portion—36.7%—stated they were only somewhat informed, and 13.1% admitted to having little or no knowledge. These findings indicate that while efforts to educate the public have been effective to some extent, a sizable segment of the population still lacks the necessary understanding to recognize and address discriminatory practices.
A lack of knowledge about fair housing rights can have profound implications, particularly for vulnerable groups such as low-income households, seniors, people with disabilities, and minority Item 2A - Page 283
49 communities. Without a clear understanding of their rights, these individuals may not recognize discriminatory practices when they occur or may not feel empowered to take action. In many cases, victims of housing discrimination either do not file complaints due to a lack of awareness or face significant barriers in navigating the legal process. Increasing public education initiatives—through workshops, multilingual outreach programs, and collaborations with community organizations—can help bridge these knowledge gaps and ensure that all residents have access to the protections they are entitled to under fair housing laws.
When asked whether they would report housing discrimination if they experienced or witnessed it,
62.8% of respondents indicated that they would take action. This majority response is encouraging, as it suggests that many residents recognize the importance of addressing discrimination. However,
31.2% of respondents were uncertain about the reporting process, indicating that while they may be willing to report discrimination, they do not know where or how to do so. This uncertainty can serve as a barrier to enforcement, as unreported incidents mean that discriminatory practices may continue unchecked. Additionally, 6% of respondents stated that they would not report discrimination at all, citing a lack of trust in enforcement agencies or fear of retaliation from landlords or housing providers. These concerns highlight the need to strengthen local enforcement mechanisms, improve transparency in the complaint resolution process, and provide stronger legal protections for those who come forward with discrimination claims.
The effectiveness of fair housing laws is contingent on robust enforcement and accessibility to legal resources. In Palm Springs, organizations such as the Fair Housing Council of Riverside County play an essential role in investigating complaints, advocating for tenants and homebuyers, and ensuring that fair housing violations are addressed. However, survey data suggests that many residents are unaware of the resources available to them or do not believe that enforcement agencies will take meaningful action. Strengthening community partnerships and increasing visibility for fair housing organizations can help build trust among residents and encourage more individuals to report discrimination when it occurs.
Expanding access to legal assistance is also a crucial component of fair housing enforcement. Many tenants and prospective homebuyers who face discrimination lack the financial resources or legal knowledge to challenge unlawful practices. Establishing tenant legal clinics, increasing funding for fair housing enforcement, and providing accessible online resources can help ensure that all residents— regardless of income—have the support they need to exercise their rights.
Another factor contributing to underreporting is the fear of retaliation. Tenants who rely on rental housing, particularly those receiving government assistance such as Housing Choice Vouchers (Section 8), may be hesitant to report discrimination out of concern that landlords will refuse to Item 2A - Page 284
50 renew their leases or find other ways to make their housing situation untenable. Stronger anti- retaliation protections and increased oversight of housing providers can help mitigate these fears and encourage greater reporting of fair housing violations.
Public awareness campaigns can be particularly effective in addressing these challenges. Educational initiatives tailored to Palm Springs’ diverse population—such as targeted outreach to seniors, LGBTQ+ residents, and Spanish-speaking communities—can ensure that all residents are informed of their rights. Hosting fair housing workshops, distributing multilingual educational materials, and leveraging digital platforms for awareness campaigns are all strategies that can contribute to a more informed community. Additionally, partnerships with local advocacy groups, real estate professionals, and property management firms can help reinforce fair housing principles across multiple sectors of the housing market.
Given that a significant portion of Palm Springs residents remain uncertain about their fair housing rights and how to report discrimination, targeted interventions are needed to improve access to information and legal support. Investing in expanded education efforts, strengthening local enforcement mechanisms, and building trust in fair housing agencies will be essential steps in creating a more equitable housing market. By addressing these gaps, Palm Springs can ensure that every resident—regardless of income, race, disability status, or other protected characteristics—has access to fair and equal housing opportunities.
Housing Affordability in Palm Springs
Housing affordability remains a persistent challenge in Palm Springs, as rising property values and rental costs continue to outpace income growth, making it increasingly difficult for lower-income residents to secure stable and affordable housing. The 2021-2029 Housing Element identifies a severe cost burden among lower-income households, highlighting the disproportionate impact of rising housing costs on renters and potential homebuyers. This affordability crisis is exacerbated by market conditions, high construction costs, and zoning constraints that limit the supply of affordable housing.
Data from the American Community Survey (ACS) and Comprehensive Housing Affordability Strategy (CHAS) provides insight into the housing cost burdens faced by different income groups in Palm Springs. Among renters, 78% of extremely low-income households (earning below 30% of the Area Median Income) spend more than 30% of their income on housing, placing them at significant risk of housing instability. Very low-income renters, who earn between 30-50% of the Area Median Income (AMI), also face severe affordability challenges, with 65% of them experiencing housing cost burdens.
Even moderate-income renters, earning between 80-120% of AMI, are affected, with 34% reporting housing costs that consume a disproportionate share of their income. These figures highlight the widening gap between income levels and the cost of living in Palm Springs, where housing expenses continue to rise.
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51 The median home price in Palm Springs has surged to $725,000, marking a 14% increase over the past three years. This rapid appreciation in home values makes homeownership increasingly unattainable for many residents, particularly first-time buyers and middle-income earners who struggle to compete in a high-priced market. The affordability crisis extends beyond homeownership, as rental costs have also seen substantial increases. The average rent for a one-bedroom apartment in Palm Springs now stands at $2,100 per month, a 20% increase from 2020. This poses significant challenges for essential workers, seniors, and individuals relying on fixed incomes, who often find themselves priced out of the rental market.
Housing Cost Trends in Palm Springs
Housing Cost Trends 2020 2023 % Increase
Median Home Price $635,000 $725,000 14%
Median Rent (1BR) $1,750 $2,100 20%
Rent for Low-Income Households (30% AMI) $900 $1,200 33%
These rising costs illustrate the growing affordability gap in Palm Springs, where the demand for housing far exceeds supply, putting additional pressure on low- and moderate-income households.
The city's housing shortage and increasing cost burdens disproportionately impact service workers in the tourism and hospitality industries—two sectors that drive the local economy. Many of these workers earn wages that do not keep pace with the rising cost of living, forcing them to either take on additional jobs, spend an unsustainable portion of their income on rent, or relocate to more affordable areas outside of Palm Springs.
The city has implemented several strategies to address affordability concerns, including incentivizing the development of affordable housing units, expanding the use of Housing Choice Vouchers (Section 8), and working with developers to increase inclusionary zoning efforts. However, barriers such as limited land availability, restrictive zoning laws, and high construction costs continue to hinder large- scale progress. In addition, the rapid growth of short-term vacation rentals has further constrained the supply of long-term rental housing, contributing to rising prices and making it even more difficult for full-time residents to find affordable rental options.
Efforts to mitigate housing affordability challenges must include policies aimed at increasing the housing supply, particularly for low- and moderate-income households. Expanding affordable housing developments, revising zoning regulations to encourage multi-family housing, and offering financial incentives to developers willing to build below-market-rate units are all critical steps in addressing the housing crisis. Additionally, rental assistance programs, tenant protections, and down payment assistance initiatives can help alleviate the financial burdens facing many Palm Springs residents.
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I I I
52 Despite ongoing efforts, affordability challenges persist in Palm Springs, underscoring the need for a more comprehensive approach to housing policy. Strengthening partnerships between local government agencies, nonprofit housing organizations, and private developers will be crucial in creating long-term, sustainable housing solutions. Without significant intervention, rising housing costs will continue to outpace income growth, further exacerbating disparities in housing access and economic stability for lower-income and working-class residents.
Rental Market Challenges in Palm Springs
The rental market in Palm Springs continues to face increasing pressure, with historically low vacancy rates and rising rents creating significant challenges for tenants. In 2023, the city's rental vacancy rate dropped below 3.5%, indicating a highly competitive market with limited available units. As demand continues to outstrip supply, renters—especially those in lower-income brackets—are experiencing growing difficulties in securing stable and affordable housing. This issue is exacerbated by the ongoing conversion of rental units into short-term vacation rentals, further constraining the long- term rental market.
Findings from the Fair Housing Survey highlight the top concerns facing renters in Palm Springs. Three key challenges emerged from the responses:
• Evictions and displacement due to redevelopment: 21% of respondents reported being displaced or knowing someone who had been displaced due to redevelopment projects. As property values increase, landlords and developers frequently renovate older units or convert them into high-end rentals or condominiums, leading to the eviction of existing tenants.
• Landlord bias against renters with housing assistance: 17% of respondents noted difficulty securing rental housing due to discrimination against tenants using Housing Choice Vouchers (Section 8) or other rental assistance programs. Despite legal protections against income- based discrimination, many landlords either outright refuse to accept housing vouchers or set excessive rental criteria that indirectly exclude voucher holders.
• Rent increases exceeding affordability limits: 28% of respondents cited rent increases as a major barrier to stable housing. Rental rates in Palm Springs have surged in recent years, making it increasingly difficult for low- and moderate-income renters to afford housing without being cost-burdened. Rent hikes disproportionately impact service workers, seniors, and fixed-income households, who often have fewer options for relocation within city limits.
These rental market pressures are particularly concerning given Palm Springs’ reliance on workers in the hospitality, tourism, and service industries, many of whom earn wages that do not keep pace with Item 2A - Page 287
53 the city's rising housing costs. Without affordable rental options, many of these workers face long commutes from neighboring communities, reducing their economic participation within Palm Springs and affecting overall community stability.
Rental Market Data in Palm Springs (2020-2023)
Rental Market Indicators 2020 2023 % Change
Median Rent (1BR) $1,750 $2,100 +20%
Median Rent (2BR) $2,300 $2,750 +19.6%
Vacancy Rate 5.2% 3.4% -34.6%
Average Rent Increase per Year 4.5% 6.8% +51%
Rent for Extremely Low-Income Households (30% AMI) $900 $1,200 +33.3%
These statistics show that rental prices in Palm Springs have risen sharply in recent years, with one- bedroom apartments seeing a 20% increase and two-bedroom units increasing by nearly 20% since 2020. This trend reflects a broader pattern across Southern California, where housing demand continues to drive up rental costs. The vacancy rate decline from 5.2% to 3.4% signals tightening rental conditions, making it more difficult for new tenants to find housing without facing steep competition. Additionally, the average annual rent increase has jumped from 4.5% to 6.8%, adding further financial strain on renters.
Impacts of Rental Market Trends
The combination of low vacancy rates, rising rents, and discriminatory rental practices has led to increasing housing instability for many Palm Springs residents. Housing displacement due to redevelopment disproportionately affects lower-income renters, who often struggle to find alternative housing within the city. While some redevelopment projects include affordable housing components, the number of new affordable units remains insufficient compared to the demand.
Landlord bias against Section 8 tenants is another major issue limiting access to rental housing.
Although California law prohibits discrimination based on source of income, enforcement remains a challenge. Many voucher holders report difficulty securing leases, as landlords either impose excessive screening requirements or set rent levels above the allowable limits for voucher programs.
Additionally, rent hikes exceeding affordability limits push many households beyond the recommended 30% income-to-rent ratio. When renters are forced to spend 40% or more of their income on housing, they face increased risks of financial instability, eviction, and homelessness. This is particularly concerning for seniors and disabled residents, many of whom live on fixed incomes and struggle to absorb rising living costs.
Palm Springs has taken steps to address affordability issues through housing assistance programs and partnerships with nonprofit housing providers. However, without additional policy interventions, Item 2A - Page 288
54 rental affordability is likely to remain a pressing issue, affecting economic diversity, workforce stability, and long-term community sustainability.
Barriers to Fair Housing Access
Palm Springs faces several structural barriers that impact housing access, affordability, and equity, including restrictive zoning laws, funding shortages for affordable housing programs, and persistent discriminatory lending practices. These factors contribute to disparities in homeownership, rental affordability, and overall housing stability, particularly for low-income residents and communities of color. Addressing these barriers is critical to expanding fair housing opportunities and ensuring equitable growth in the city.
Zoning and Development Constraints
The availability of land for affordable and high-density housing development is one of the most significant challenges facing Palm Springs. The city has been allocated 5,706 new housing units under the Regional Housing Needs Assessment (RHNA) for the 2021-2029 cycle, with 2,356 units designated for lower-income households. However, meeting these targets remains difficult due to land-use restrictions, community opposition, and regulatory hurdles.
Palm Springs has historically relied on low-density, single-family zoning, which limits the potential for new multi-family housing developments that could address affordability concerns. While some areas of the city have been rezoned to allow for greater density, there is still resistance from residents and neighborhood associations, who cite concerns over traffic congestion, environmental impacts, and changes to community character.
The Palm Springs Housing Element outlines several policy changes to overcome zoning and development barriers and encourage affordable housing construction:
• Density Bonuses: Developers who include affordable housing units in their projects can receive incentives such as increased building height or reduced parking requirements, helping to offset costs.
• Expedited Permitting: Streamlining the approval process for affordable housing developments reduces delays that often discourage developers from building lower-cost units. • Financial Incentives: Palm Springs offers fee waivers, tax credits, and grants for developers willing to build below-market-rate housing. These incentives encourage mixed-income developments and reduce reliance on market-rate housing production, which often caters to higher-income households.
Despite these efforts, Palm Springs continues to experience slower-than-anticipated progress in achieving its RHNA targets, particularly in the very-low and low-income categories. The combination Item 2A - Page 289
55 of high land costs, lengthy entitlement processes, and limited available parcels makes it challenging for developers to construct affordable housing at the necessary scale.
Homeownership Barriers and Lending Discrimination
Barriers to homeownership in Palm Springs disproportionately affect minority, low-income, and first- time buyers, limiting their ability to build equity and achieve long-term housing stability. Two primary factors contribute to homeownership disparities in the city:
1. Discriminatory Lending Practices
Despite legal protections under the Fair Housing Act and Home Mortgage Disclosure Act (HMDA), data reveals persistent lending disparities in Palm Springs. Minority homebuyers, particularly Black and Hispanic applicants, face higher loan denial rates compared to White borrowers. In some cases, loan denial rates exceed 20% for minority applicants, suggesting unequal access to credit and financial services.
Predatory lending practices, including high-interest loans, excessive fees, and subprime mortgage products, disproportionately affect minority and low-income borrowers. Many applicants struggle to qualify for conventional loans due to:
• Lower credit scores, often linked to systemic financial inequities. • Lack of generational wealth, making it harder to afford down payments. • Debt-to-income ratio challenges, exacerbated by rising home prices.
These challenges contribute to the homeownership gap, where minority households remain more likely to rent rather than own, limiting their ability to accumulate wealth through home equity.
2. Underutilization of Homebuyer Assistance Programs
While Palm Springs offers several down payment and homebuyer assistance programs, many eligible households fail to take advantage of these resources. Only 30% of eligible households apply for local homebuyer assistance programs, often due to:
• Lack of awareness: Many first-time homebuyers are unaware of available grants, low-interest loans, and down payment assistance programs.
• Complicated application processes: Lengthy paperwork and restrictive eligibility criteria discourage participation.
• Perceived financial barriers: Some households assume they do not qualify for assistance, even when they meet income requirements.
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56 Increasing outreach and education efforts is critical to improving homeownership rates among historically disadvantaged groups. Expanding financial literacy programs and providing one-on-one assistance for first-time buyers can help bridge the knowledge gap and connect more residents with available resources.
Housing Affordability and Displacement Risks
The affordability crisis in Palm Springs is worsening, with home prices and rents outpacing income growth. Median home prices have increased by 14% in three years, reaching $725,000 in 2023.
Similarly, rents have risen by over 20%, placing greater financial strain on low- and moderate-income households.
Housing Cost Trends in Palm Springs (2020-2023)
Housing Cost Indicators 2020 2023 % Change
Median Home Price $635,000 $725,000 +14%
Median Rent (1BR) $1,750 $2,100 +20%
Rent for Extremely Low-Income Households (30% AMI) $900 $1,200 +33% Average Rent Increase Per Year 4.5% 6.8% +51%
The rising cost of housing, combined with landlord-driven evictions and renovictions (where tenants are displaced following property upgrades that result in rent hikes), is increasing the risk of displacement for vulnerable populations.
Key factors contributing to displacement in Palm Springs include:
Redevelopment of older rental properties: Many landlords choose to convert long-term rental units into high-end apartments, condos, or short-term vacation rentals, further reducing affordable housing stock.
Short-term rental market pressures: With Palm Springs being a major tourist destination, many property owners prioritize vacation rentals over long-term leases, contributing to limited housing availability for residents. Rising property taxes and costs: Homeowners, especially seniors and fixed- income residents, face challenges keeping up with tax increases, leading to potential forced sales or foreclosures.
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57 Summary of Findings
Palm Springs faces significant challenges related to fair housing choice, affordability, and access.
While efforts are underway to expand affordable housing and strengthen tenant protections, continued enforcement and public education on fair housing rights are needed.
The city can address these barriers by:
1. Expanding tenant protections and eviction prevention programs.
2. Strengthening enforcement of fair housing laws, particularly regarding discrimination against voucher holders.
3. Increasing funding for affordable housing development.
4. Providing homebuyer assistance to address lending disparities.
Palm Springs continues to face significant housing challenges, particularly regarding fair housing choice, affordability, and housing stability. The findings from recent surveys and housing reports indicate that a substantial portion of the city's resident s are burdened by high housing costs, discrimination, and difficulties in securing stable housing. Despite ongoing efforts to expand affordable housing opportunities and strengthen tenant protections, systemic barriers persist, requiring more aggressive policy interventions and community-based solutions.
Overview of Housing Challenges in Palm Springs
Key Housing Issues in Palm Springs % of Respondents Affected Experienced or witnessed housing discrimination 27.3%
Rent burdened (spending >30% of income on housing) 72%
Unable to find affordable housing 58%
Facing eviction or displacement concerns 21%
Analysis of Housing Discrimination and Barriers to Access A notable 27.3% of survey respondents reported either experiencing or witnessing housing discrimination, a significant percentage that highlights ongoing barriers to fair housing access.
Discrimination was reported across multiple fronts, including race, e thnicity, income level, familial status, disability, and LGBTQ+ identity.
One of the most concerning trends identified in the Fair Housing Survey is income-based discrimination, with 30% of respondents citing difficulties securing housing due to landlords' refusal to accept Housing Choice Vouchers (Section 8) or imposing more stringent rental requirements on lower-income tenants.
Key Housing Issues in Palm Springs % of Respondents Affected Experienced or witnessed housing discrimination 27.3%
Rent burdened (spending >30% of income on housing) 72%
Unable to find affordable housing 58%
Facing eviction or displacement concerns 21%
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58 This practice has a disproportionate impact on low -income families, seniors, and disabled individuals, restricting their ability to access stable housing.
Racial and ethnic discrimination were cited by 25% of respondents, highlighting systemic inequities in rental and homeownership markets. Historical and ongoing barriers limit opportunities for communities of color, including higher mortgage denial rates, racial steering, and targeted eviction practices.
Additionally, the Palm Springs Fair Housing Reports (2021 -2023) reveal a significant number of discrimination inquiries related to disability (48%), race (22%), and familial status (18%). While state and federal protections exist, local enforcement remains a challenge, with many instances of discrimination going unreported or unresolved.
Housing Affordability and Rent Burden
The affordability crisis in Palm Springs remains one of the most pressing concerns, with 72% of respondents classified as rent burdened, meaning they spend more than 30% of their income on housing costs. This is significantly above the national average and poses severe financial risks for low- and middle -income households, who often must sacrifice basic necessities like healthcare, transportation, and food to afford housing.
The problem is compounded by rapidly rising home prices and rents. The median home price in Palm Springs increased by 14% from 2020 to 2023, reaching $725,000, while median rent for a one-bedroom apartment rose by 20% to $2,100. These increases far outpace wage growth, m aking homeownership nearly unattainable for many residents and exacerbating housing instability for renters.
Inability to Find Affordable Housing
A staggering 58% of respondents reported difficulty in finding affordable housing, reflecting the severe shortage of rental and for -sale housing options that cater to low - and moderate-income households.
The high demand and low supply of affordable units h ave driven up competition, forcing many potential tenants and homebuyers to look elsewhere or remain in precarious housing situations.
Key factors contributing to housing scarcity in Palm Springs include:
• Zoning restrictions that limit higher -density development and multi -family housing construction.
• Limited land availability for affordable housing projects. • Investor-driven purchases of single -family homes for short -term rentals, reducing available housing stock for residents.
• High construction costs that discourage developers from building affordable units.
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59 Eviction and Displacement Concerns
About 21% of survey respondents reported concerns about eviction and displacement, primarily due to rent increases, redevelopment projects, and termination of leases. Displacement risks are particularly high among low -income renters, seniors, and minority households, as they often lack the financial safety net needed to secure alternative housing.
A major contributor to tenant displacement in Palm Springs is the rise in “renovictions”, where landlords renovate properties to justify substantial rent increases, effectively forcing out long -term tenants. Additionally, redevelopment projects and the exp ansion of short-term vacation rentals have led to a decline in the number of available long -term rental units, further exacerbating displacement pressures.
Palm Springs faces major housing affordability and access challenges, with rising home prices, rent burdens, and displacement risks disproportionately affecting lower-income residents. While the city has taken steps to expand affordable housing options and strengthen tenant protections, ongoing challenges—such as zoning restrictions, discrimination, and funding shortages—continue to impact housing stability.
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60 Recommended Actions to Address Impediments to Fair Housing Choice in Palm Springs
The City of Palm Springs has taken a proactive approach to identifying and addressing barriers to fair housing. Through a combination of community engagement, data analysis, and policy development, the City has identified key strategies to ensure equitable housing opportunities for all residents. These actions align with the 2025 -2029 Consolidated Plan and are designed to promote inclusive housing policies, expand tenant protections, and enhance fair housing enforcement.
Strengthening Fair Housing Education and Outreach
Palm Springs is committed to expanding education and outreach initiatives to raise awareness of fair housing rights. The City will develop targeted programs that inform residents about their rights and responsibilities under fair housing laws. These effort s will include multilingual outreach campaigns, informational workshops, and partnerships with local advocacy organizations to reach historically underserved populations. By increasing public awareness, the City aims to empower residents to recognize and r eport housing discrimination, ensuring stronger enforcement of fair housing protections.
Supporting data from the American Community Survey (ACS) shows that 40% of Palm Springs residents identify as Hispanic or Latino, and 17% as Black or African American. Outreach efforts tailored to these communities will help address disparities in housing access and combat discriminatory practices that disproportionately affect minority populations. Additionally, reports from the Fair Housing Council of Riverside County highlight ongoing rental discrimination concerns, underscoring the need for continued public education efforts.
Expanding Tenant-Landlord Mediation Services
To address disputes between tenants and landlords, Palm Springs will enhance its mediation services, providing an alternative resolution mechanism that helps prevent evictions and ensures fair treatment in rental agreements. Mediation services will be available at no cost to residents and will focus on issues such as lease violations, maintenance disputes, and accommodation requests for tenants with disabilities.
The Housing Element and ACS data indicate that nearly 45% of renters in Palm Springs experience housing cost burdens. Many of these households are at risk of eviction, making mediation a critical tool in preventing housing instability. The City’s mediation services will work to reduce displacement and foster cooperative relationships between tenants and property owners.
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61 Providing Legal Assistance for Low-Income Residents
Ensuring access to legal representation is vital in protecting tenants from unlawful evictions and housing discrimination. Palm Springs will expand partnerships with local legal aid organizations to provide free or low-cost legal services to low-income tenants facing housing-related disputes.
Data from the Fair Housing Council of Riverside County show that discrimination complaints related to race, disability, and familial status remain prevalent. Strengthening legal aid services will enable tenants to challenge discriminatory practices effecti vely. Additionally, ACS data indicates that 45% of renters in Palm Springs spend more than 30% of their income on housing, leaving limited resources for legal representation. Expanding access to legal aid will help ensure that all residents have the suppor t they need to secure and maintain fair housing.
Encouraging Affordable Housing Development in High-Opportunity Areas Palm Springs is dedicated to increasing the supply of affordable housing in areas with access to public transportation, employment centers, and essential services. To facilitate this, the City will implement policies that encourage the development of affordable units in high -opportunity neighborhoods, reducing the concentration of poverty and promoting economic mobility.
The 2021 -2029 Housing Element identifies a need for 2,557 new housing units, with a significant portion allocated for lower -income residents. However, ACS data shows that 23.5% of Palm Springs households do not own a vehicle, highlighting the need for affo rdable housing options near public transit and job hubs. By strategically locating new developments, the City aims to enhance access to economic opportunities and reduce geographic disparities in housing affordability.
Enhancing Fair Housing Enforcement and Anti-Discrimination Policies To strengthen fair housing protections, Palm Springs will enhance enforcement measures, ensuring that discriminatory practices are promptly investigated and addressed. The City will work closely with the Fair Housing Council of Riverside County to conduct housing audits, identify patterns of discrimination, and improve complaint resolution processes.
Recent fair housing reports indicate that racial discrimination, source -of-income discrimination, and disability-based housing denials continue to impact residents. Strengthening enforcement mechanisms will allow for more effective oversight and intervention in cases of housing discrimination.
Increasing Funding for Affordable Housing Development
Recognizing the financial barriers to affordable housing construction, Palm Springs will seek additional funding sources, including state and federal grants, tax credits, and public-private partnerships. These Item 2A - Page 296
62 efforts will support the development of mixed-income housing projects, preserving affordability while ensuring a diverse housing market.
Palm Springs’ inclusionary zoning policies and density bonuses will be leveraged to incentivize private developers to include affordable units in new housing projects. The City will also explore opportunities to utilize publicly owned land for affordable d evelopments, further expanding housing availability for low-income households.
Improving Accessibility for Individuals with Disabilities Ensuring that housing is accessible to individuals with disabilities is a key priority for Palm Springs. The City will enforce ADA compliance in rental and homeownership properties, provide funding for accessibility modifications, and increase outreach to landlords on reasonable a ccommodation requirements.
Data from ACS indicate that 16.3% of Palm Springs residents have a disability, underscoring the need for stronger accessibility measures. Through targeted enforcement and expanded financial assistance programs, Palm Springs will work to eliminate barriers that prevent individuals with disabilities from securing suitable housing.
Palm Springs is dedicated to addressing fair housing barriers through a combination of policy reform, community engagement, and targeted investments. By expanding tenant protections, increasing fair housing enforcement, and promoting affordable housing development, the City aims to create a more inclusive housing market. These efforts will ensure that all residents, regardless of income, race, or disability status, have equitable access to safe and affordable housing. The recommended actions outlined above represent a comprehensive approach to eliminating housing discrimination and fostering a diverse and thriving community.
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63 Methodology
Description of data sources (e.g., census data, surveys, interviews).
The analysis incorporates multiple data sources to provide a comprehensive understanding of housing discrimination, affordability, and access in the City of Palm Springs. These sources include public surveys, housing policy documents, fair housing activity reports, and data from the U.S. Census Bureau’s American Community Survey (ACS).
The City of Palm Springs Analysis of Impediments Survey offers a direct perspective from residents on their experiences, perceptions, and understanding of housing discrimination. The survey included 99 respondents, who provided both quantitative and qualitative responses. Key are as explored include awareness of housing discrimination, the willingness to report incidents, and the specific types of discrimination encountered. This data offers a localized view of housing issues, directly reflecting community sentiment.
The Palm Springs 2021-2029 Housing Element, a policy document prepared by the City of Palm Springs, outlines the city’s housing goals, needs assessments, and constraints for the planning period. It integrates a wide range of quantitative data, including demographic profiles, housing stock characteristics, housing affordability metrics, and the city’s R egional Housing Needs Assessment (RHNA) allocations. The Housing Element draws on state and regional data from the Southern California Association of Governme nts (SCAG), the California Department of Housing and Community Development (HCD), and the U.S. Census Bureau.
The Fair Housing Activities Report s (2021-2023), prepared by the Fair Housing Council of Riverside County, Inc. , documents inquiries related to discrimination, tenant -landlord issues, and public outreach activities. It provides a breakdown of discrimination cases by protected classifications (e.g., race, disability, familial status) and details tenant concerns such as eviction, rent increases, and substandard living conditions. The report also includes data on the demographic profiles of those accessing services and the outreach efforts aimed at addressing fair housing issues.
Additionally, the American Community Survey (ACS), conducted annually by the U.S. Census Bureau, serves as a vital source for demographic, economic, and housing data. The ACS offers detailed information on population characteristics, income levels, housing tenure, and cost burdens, providing a broader context for analyzing housing affordability and discrimination in Palm Springs. For example, ACS data was used to assess rental cost burdens, poverty rates, and demographic trends, which were then compared with local survey findings to identify consistencies and disparities.
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64 Supplementary data from advocacy organizations and state programs, such as the California Emergency Rental Assistance Program (ERAP), provided additional insights into systemic challenges like affordability gaps and barriers to accessing housing.
Explanation of the analytical methods used.
The analysis applies both quantitative and qualitative methods to identify trends, relationships, and systemic issues related to housing discrimination, affordability, and access.
Descriptive statistical analysis was used to summarize and interpret quantitative data. Metrics such as percentages, frequencies, and averages were calculated to identify patterns. For example, the percentage of survey respondents who reported encountering housing discrimination was determined, as well as the frequency of specific discrimination types like income-based bias or racial discrimination.
Similarly, ACS data on cost -burdened households and median rental costs was used to contextualize affordability challenges in Palm Springs.
Trend analysis was employed to track changes in housing conditions over time, particularly with data from the Housing Element and ACS. This included analyzing shifts in rental costs, income levels, and housing stock characteristics to understand how these factors impact affordability and access.
Comparative analysis was conducted to juxtapose local data with regional and national trends. For instance, Palm Springs ’s RHNA allocations and housing cost burdens were compared with broader trends in Los Angeles County and California. This approach provided context for understanding how the city’s housing challenges align with or deviate from regional patterns.
Qualitative analysis focused on open-ended survey responses and narrative data from the Fair Housing Activities Report. Responses were coded thematically to identify recurring issues, such as barriers to reporting discrimination or perceptions of systemic bias. These themes were used to complement quantitative findings and offer a deeper understanding of residents’ lived experiences.
Geospatial analysis was applied to data from the Housing Element, such as the location of housing opportunity sites and areas identified as disadvantaged communities. Mapping these areas allowed for an exploration of spatial patterns in housing access, hig hlighting disparities in affordability and the availability of housing.
Lastly, ACS data was integrated into multiple stages of the analysis. Demographic and economic indicators from the ACS, such as poverty rates, median household income, and housing tenure, were Item 2A - Page 299
65 used to assess the socioeconomic context of Palm Springs ’s housing challenges. The ACS data also provided a benchmark for validating findings from local sources, ensuring consistency and reliability.
Limitations of the analysis
The analysis is subject to several limitations stemming from data availability, sample size, and representativeness. One major limitation is the small sample size of the Analysis of Impediments Survey, which included only 99 respondents. While the survey p rovides valuable insights, the limited number of participants may not fully capture the diversity of experiences and perspectives within Palm Springs’s population. Sampling bias may also be present, as certain demographic groups or neighborhoods may be underrepresented.
Another limitation is the reliance on self -reported data in both the survey and fair housing reports.
Respondents may have varying interpretations of housing discrimination or may be hesitant to disclose their experiences. This could lead to underreporting or misclassification of discrimination cases, potentially skewing the results.
The analysis depends heavily on secondary data from the Housing Element, Fair Housing Activities Report, and ACS. While these sources provide extensive quantitative data, they may not fully account for informal or undocumented housing practices that contri bute to discrimination and affordability challenges. Additionally, the Housing Element’s projections and trends are based on historical data and current policies, which may not fully capture future economic or demographic shifts.
The integration of ACS data introduces its own set of challenges. Although ACS provides detailed and reliable data, it is subject to margins of error, particularly for smaller geographic areas like Palm Springs.
Moreover, the ACS’s reliance on sampling and multi-year estimates may limit its ability to reflect rapid changes in housing conditions or local economic trends.
Geographic data, such as the identification of housing opportunity sites, may not fully reflect the lived realities of residents in disadvantaged communities. While the Housing Element incorporates spatial analysis, it does not provide granular data on loc alized disparities, limiting the ability to draw conclusions about specific neighborhoods or subpopulations.
Lastly, the analysis does not include real -time data or recent developments, such as post -2022 economic conditions or changes in state housing policies. This temporal limitation highlights the need for continuous data collection and monitoring to inform fu ture housing policies and initiatives effectively.
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ATTACHMENT D
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1 City of Palm Springs | Housing and Community Development Department 3200 E Tahquitz Canyon Way | PO Box 2743 | Palm Springs, CA 92263-2743 City of Palm Springs
OWNER OCCUPIED HOME REHABILITATION
PROGRAM GUIDELINES
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Like no place else™
EQUAL HOUSING
OPPORTUNITY
2 Table of Contents
Section 1 - GENERAL AUTHORITY AND DEFINITIONS ......................................................................... 3 Section 2 - PROGRAM PURPOSE ................................................................................................................. 4 Section 3 - PUBLIC AWARENESS ................................................................................................................ 4 Section 4 - QUALIFICATIONS ...................................................................................................................... 5 Section 5 - ELIGIBILITY INCOME GUIDELINES ...................................................................................... 6 Section 6 - PROGRAM LIMITATIONS ......................................................................................................... 6 Section 7 - LOAN PROGRAM REQUIREMENTS ........................................................................................ 6 Section 8 - INFORMATION REQUIRED FROM ALL APPLICANTS ........................................................ 6 Section 10 - PROGRAMS AVAILABLE ....................................................................................................... 7 GRANTS .............................................................................................................................. 7 Section 11 -LEAD BASE PAINT TESTING AND LEAD HAZARD REDUCTION PLAN........................ 8 Section 12 - PROGRAM IMPLEMENTATION ............................................................................................. 9 Section 13 - CONFLICT OF INTEREST ...................................................................................................... 11 Section 14 - STAFF INSPECTION- PLANS - SPECIFICATIONS ............................................................. 11 Section 15 - REHABILITATION PLANS & SPECIFICATIONS ............................................................... 12 Section 16 - REHABILITATION .................................................................................................................. 12 Section 17 - OBTAINING BIDS FOR CONSTRUCTION .......................................................................... 13 Section 18 - PREPARATION, RECEIPT AND OPENING OF BIDS ......................................................... 14 Section 19 - QUALIFICATIONS OF BIDDERS .......................................................................................... 14 Section 20 - CONSTRUCTION .................................................................................................................... 15 Section 21 - CONTRACTOR REQUIREMENTS AND RESPONSIBILITIES ....................................... 1615 Section 22 - GUARANTEES & WARRANTIES ..................................................................................... 1817 Section 23 – REHABILITATION DEFICIENCIES ..................................................................................... 18 Section 24 - SUB-CONTRACTORS ............................................................................................................. 19 Section 25 - GRIEVANCE POLICY ............................................................................................................. 19 Section 26 - CONTRACT PROVISIONS ................................................................................................. 2019
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3 Section 1 - GENERAL AUTHORITY AND DEFINITIONS
1. LEGAL AUTHORITY FOR REHABILITATION GRANTS: Housing Rehabilitation grants are authorized under the U.S. Department of Housing and Urban Development Regulations.
2. DEFINITIONS: Following are definitions of various terms as used with respect to housing rehabilitation grants:
a. APPEALS: Housing and Community Development Director will serve to consider written request for reconsideration of staff’s determinations on program guidelines and eligibility.
b. HOUSING AND COMMUNITY DEVELOPMENT: A department of the City of Palm Springs responsible for the general operation of the program, which includes but is not limited to the initial contact with property owners, preparation of plans and specifications , processing of all grant documents, securing contractors for the owners, inspecting the work, and counseling with grant recipients as needed, providing direction and instructions to contractors, processing payments and maintaining all program files..
c. HUD: The United Stated Department of Housing & Urban Development.
d. OWNER-OCCUPIED PROPERTY: A property that is owned and occupied by the applicant and is used entirely for residential purposes.
e. PRIORITY NEED: From the first come first serve list. In the event the home is damaged and habitation is no longer safe, priority will be given for loss due to natural disasters such as hurricane, fire, flood, etc. upon approval of the Housing and Community Development Director.
A separate first come first serve waiting list is established for catastrophic loss.
f. REHABILITATION: term may be used interchangeably to refer to Rehabilitation projects throughout this handbook.
g. REHABILITATION COST: The total cost of repairs and improvements and other associated costs with the rehabilitation project.
h. VARIANCES: The Housing and Community Development Director will serve to consider written variances for exceptions to program guidelines.
i. VOLUNTARY WITHDRAWAL: Applicants who choose to withdraw from the waiting list will be withdrawn immediately from the waiting list. Applicants who reapply for assistance will be considered new applicants.
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4 Section 2 - PROGRAM PURPOSE
The purpose of the City of Palm Springs 's Community Development Block Grant Housing Rehabilitation Program is to provide rehabilitation assistance to eligible low and moderate income Homeowners residing in the corporate city limits of the City of Palm Springs . The Program's Objective is to implement a program to arrest the deterioration of substandard single family homes by rehabilitating to conform to the International Property Maintenance Code and its amendments, the City of Palm Spring s’ Housing Rehabilitation Performance Manual and other applicable State Laws, City Codes and Ordinances.
A Housing and Community Development staff person or approved Partner Agency will prioritize the repairs and improvements based on the health, safety, neighborhood enhancement, and needs of the property. Housing and Community Development staff sustains the right and has the discretion to determine and deny the approval of any application based on the reasonableness of the repairs requested for the home.
The goal of this program is to work in partnership with qualified Homeowners to maintain the existing housing stock in decent, safe, sanitary and affordable conditions.
Assistance through any of the programs herein shall be voluntary and relocation assistance shall not be provided.
Assistance is limited to single family residential structures, mobile homes and the inside of condos in HOA associations within the city limits of the City of Palm Springs.
Section 3 - PUBLIC AWARENESS
The Housing and Community Development Department may advertise that it is accepting applications for program assistance through local newspapers or the broadcast media.
Inquiries may be received through a variety of methods, including telephone inquiries, walk-ins and letters. Staff will respond to these inquiries by providing a verbal or written description of program requirements including brochures and other documentation available to the public.
Staff encourages interested and potentially eligible homeowners to schedule a personal interview with a staff member.
Complaints regarding lack of understanding of the program, the level of service provided, the public awareness process, or other matters shall be promptly addressed, if possible, by a staff person. If a complaint cannot be resolved at that level, the complaint will be forwarded to the Housing and Community Development Director for resolution and documentation. If no resolution can be found, the matter will be forwarded to the Assistant Deputy City Manager.
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5 Section 4 - QUALIFICATIONS
1. Assistance is limited to single family residential structures, mobile homes and the inside of condos in HOA associations.
2. An applicant must be a resident of the City of Palm Springs, and live in the home to be assisted a minimum of 1 year before applying for assistance.
3. Applicants must also have a warranty deed in their name (or other legal document as stated elsewhere within these guidelines).
4. An applicant/household will not be eligible for assistance if:
a. Non-elderly Head of Household has re sources (other than home to be rehabilitated), or cash assets in excess of $10,000.00. b. Elderly Head of Household (62 years of age or older), has re sources (other than home to be rehabilitated), or cash assets over $20,000.00. c. Disabled Head of Household has resources (other than home to be rehabilitated), or cash assets over $20,000.00.
d. Resources include but are not limited to the following: real property, vehicles and bank accounts.
e. Exempt resources include:
i. home to be assisted and surrounding property.
ii. first family vehicle, vehicles necessary for employment or training related purposes, and vehicles used to transport a physically handicapped person. f. There has been a t ransfer of resources within two years of date of application by household members for the purpose of qualifying for the program. g. Subject property must be the only real property owned by the applicant.
An applicant who has more than one dwelling structure on the property to be rehabilitated or reconstructed unless the applicant removes the excess structure. An applicant/household who is operating a business out of said home. i. An applicant/household who has failed to meet their bankruptcy obligations. j. A bankruptcy discharge must be:
i. At least 5 years prior to the date of application for Chapter 7. ii. At least 3 years prior to the date of application for Chapter 13. k. An applicant/household who has outstanding judgments. l. An applicant /household is presently delinquent on any Federal debt or has a lien placed against his/her property for a debt owed to the United States Government.
5. An applicant/household who is accepted for assistance shall first remove all abandoned appliances, junked vehicles, trash, rubbish, etc. from the property before assistance is rendered.
6. An applicant/household must meet the low to moderate income criteria as set forth by the Department of Housing and Urban Development's Part V (Section 8) requirements as they are now or may be adopted by HUD on a yearly basis.
7. Total household income is determined by computing the income as required in 24 CFR Part 5. Income of all the persons residing in the household at the time of the application will be included in the calculation.
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6 Section 5 - ELIGIBILITY INCOME GUIDELINES
Eligibility for CDBG housing program support is determined in accordance with income limits established by the Department of Housing and Urban Development. These figures are revised annually by the Department of Housing and Urban Development. The most recent income limits are found in Attachment #1.
Section 6 - PROGRAM LIMITATIONS
1. Any applicant, whose property is located within a 100 -year flood plain according to current FEMA Flood Insurance Rate Maps, shall not be eligible for assistance for on-site housing rehabilitation assistance programs.
2. In the case where the Housing Community Development Services Administrator has determined that the costs for rehabilitation exceed program guidelines ($35,000.00), or more than 50% of the appraised after rehabilitation value, the applicant will be referred to other affordable housing providers for possible assistance through their housing programs. In the event of an emergency concerning health and safety or natural disaster, the Community and Economic Developer Director can approve costs exceeding program guidelines.
3. Homeowners are eligible to receive assistance through the CDBG Residential Rehabilitation program only once every five (5) years. This policy is in place to ensure fair and equitable distribution of resources and to maximize the number of households that can benefit from the pro gram. Prior participation will be verified through program records before approving any new application.
Section 7 - GRANT PROGRAM REQUIREMENTS
All grant programs will require, at a minimum, the following:
1. Title search on property.
2. Proof of Paid City, School and County Taxes.
3. Verification of income and financial analysis.
4. Property to be located inside the City of Palm Springs city Limits.
Section 8 - INFORMATION REQUIRED FROM ALL APPLICANTS
The following information is needed from all adult household members. An application will not be considered complete and processed until all information is received by the CED Staff.
1. Proof of ownership - Warranty Deed or other document as stated herein.
2. Utility receipts with applicant’s name
3. Copies of the following for all household members over the age of 18:
a. W-2's and 1040's (if employed)
b. Income Tax Returns for the past 2 years
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7 c. Social security cards, current driver’s license or California ID
4. Authorization to obtain the following for all household members over 18:
a. Verification of other income, or assets
b. Verification of Employment
c. Verification of Unemployment check
d. Verification of Social Security, SSI, etc., checks
e. Verification of Bank deposits
5. Receipts of paid City, School and County Taxes
6. HUD prohibits providing assistance to persons not lawfully present in the United States. All contributing members of the household receiving Program funds must be either a:
1. Citizen of the United States
2. Permanent Resident Alien
3. Temporary Resident Alien with authorization work in the United States.
The Program reserves the right to request documented verification as a condition to making an eligibility determination of the Applicant.
Section 9 - TEMPORARY RELOCATION
Applicants agree that participation in the program is voluntary and to voluntarily relocate during Lead Based Paint activities and general construction.
Voluntary homeowner rehabilitation does not trigger relocation requirements as per the Uniform Relocation Act for the homeowner.
Section 10 - PROGRAMS AVAILABLE
GRANTS
The Housing and Community Development Department provides grants to qualified homeowners for the rehabilitation of their single-family, condo or substandard mobile homes.
1. Grant applications are accepted in person at the City of Palm Springs Housing and Community Development Department, C/O Noe Arechiga 3200 E Tahquitz Canyon Way, Palm Springs, CA 92263.
2. Applicants must meet the following requirements:
a. Income: Applicant’s total income may not exceed 80% of the median income for the area, adjusted to family size.
b. Ownership: Applicant/Homeowner(s) must live in said home and have clear title to property.
c. Applicant must have an ownership interest in any one of the following types of ownership in the property to be improved:
a) Individual fee ownership with recorded deed (no corporate, trust, legal partnerships, etc.); or
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8 b) Individual fee ownership subject to a mortgage or other lien securing debt; or
c) An ownership interest in a properly recorded land contract; or d) A life estate interest provided the following are met:
1. The life estate person occupying the dwelling to receive assistance must be income eligible.
2. The life estate agreement terms must be written, signed, and recorded in the public records of Riverside County, California.
3. Both the owner of the life estate and the holder(s) of the remainder interest must sign program documents.
4. The holder(s) of the remainder interest must sign the “Life estate Responsibility” form.
d. Taxes: City, School, and County Taxes must be paid and up to date at the time application is submitted.
3. Housing rehabilitation grants are for a maximum of $35,000.00 per home.
4. Qualified Applicants who own a home built prior to 1978 will be provided a grant that covers 100% of the total expense to perform a Lead Base Paint Risk Assessment/Inspection, all lab fees, interim controls and/or abatement procedures, and clearance testing to ensure that the home is lead safe.
5. Any expenses classified as costs related to Lead Base Paint Hazard Evaluation and Reduction Costs shall be covered by a grant and not be included when calculating Rehabilitation costs.
Section 11 -LEAD BASE PAINT TESTING AND LEAD HAZARD REDUCTION PLAN
All Applicants qualifying for assistance under any of the grant programs for rehabilitation will have their homes tested for lead based paint according to HUD guidelines if their home was constructed prior to 1978 except those properties exempt under the following:
Residential structures built after January 1, 1978.
Emergency action activities (Natural Disaster).
Existence of Lead Based Paint unlikely:
• Areas where state and local governments banned lead-based paint prior to January 1, 1978. • Properties found not to contain lead-based paint during earlier testing that meets the requirements of prior evaluations.
• Properties where all lead-based paint has been identified and removed using approved methods.
Human threat Unlikely:
• Unoccupied units that will be demolished.
• Property not used for human residential habitation.
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9 • Rehabilitation that does not disturb paint.
Homeowners shall be provided with information about the hazards of lead-based paint. Testing shall be completed by a certified lead based paint testing professional. Personnel shall be required to follow all HUD standards regarding the testing of lead base paint.
The following actions must be taken to protect occupants from lead-based paint hazards associated with lead hazard reduction activities.
➢ Occupants may not enter the worksite during lead hazard reduction activities. Reentry is permitted only after lead hazard reduction activities are completed and the dwelling has passed a clearance examination.
➢ Occupants of the unit must temporarily relocate during lead hazard reduction activities.
Relocation shall be voluntary as part of the program assistance to be provided. Relocation must be done before lead hazard reduction activities begin.
Relocation is recommended when lead reduction procedures require that:
1) Utilities such as water, electricity, and gas are turned off for periods exceeding eight hours. 2) Lead reduction takes place in the kitchen or available bathrooms. 3) Extensive lead reduction in several rooms requiring work over several days. 4) Occupants cannot be prevented from entering the containment site after hours. 5) Debris and lead dust cannot be contained in the worksite and may spread to occupied areas. 6) A pregnant woman or a child under the age of six occupies the home.
Circumstances when occupant relocation is not required:
1) Treatment will not disturb lead-based paint or lead-contaminated dust. 2) Treatment of the interior will be completed within one period in eight daytime hours, the site will be contained, and the work will not create other safety, health, or environmental hazards. 3) Only the building’s exterior is treated; the windows, doors, ventilation intakes, and other openings near the worksite are sealed during hazard reduction activities and cleaned afterward; and a lead safe entry is provided.
4) Treatment will be completed within five calendar days; the work area is sealed; at the end of each day, the area within 10 feet of the containment area is cleared of debris; at the end of each day, occupants have safe access to sleeping areas, bathroom, and kitchen facilities; and treatment does not create other safety, health, or environmental hazards.
Occupants belongings should be protected from lead contamination during lead hazard reduction activities by relocating or covering and sealing them and ensure that the worksite is secured.
Section 12 - PROGRAM IMPLEMENTATION
METHOD OF IMPLEMENTATION FOR REHABILITATION AND EMERGENCY GRANT
PROGRAMS
1. Applications for assistance under any of the programs contained herein will be processed and reviewed by the Housing and Community Development Staff.
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10 2. The Housing and Community Development Staff will formally accept or reject all applications for assistance based on meeting program requirements by staff review of submitted information received from the applicant, Title Company, etc.
3. Applications for program assistance will be taken on a "first come first serve" basis, except in emergency assistance cases.
4. Applicants will be chosen for eligibility review from a waiting list.
5. If an applicant is eligible for assistance, the Housing and Community Development Staff will help homeowner, if he /she/they so chooses, through the bidding process by advertising for proposals and receiving bids from general contractors.
6. Bid proposals must be according to the guidelines established by the Housing and Community Development Department to ensure compliance with the requirements applicable to the use of federal funds.
7. Homeowners Insurance shall be required for any home assisted through the Housing and Community Development Department’s Housing Rehabilitation Program.
8. In order to ensure maximum use of CDBG funds, the lowest most responsible bidder will be awarded the rehabilitation project. In cases where the lowest bid exceeds the maximum grant limit, the Homeowner(s) will have the option of:
a. Paying the difference over the maximum grant amount, or b. Reducing the amount of work to be done to comply with the maximum grant limits (although all safety, health and code violations shall not be omitted from specifications), or
c. The home may be rejected from participation in the rehabilitation program as said property will be considered beyond rehabilitation program assistance, and the project may be referred to other affordable housing providers housing programs.
9. After the Contractor has been selected, the Housing and Community Development Staff will fund for assistance through one or more of the programs previously described.
10. All activities undertaken in the Housing Rehabilitation Program are subject to the conditions and provisions set forth in the program's Mechanic's Lien Contract , Rehabilitation Contract, which is signed by both the Contractor and Homeowner(s) before commencement of the work.
11. If an unforeseen problem arises during the construction period, a change order may be submitted.
12. Change orders , if necessary, will be reviewed on a case-by-case basis and must be approved in writing by the City of Palm Springs Staff , Housing and Community Development Director, Contractor and Homeowner(s) before proceeding with the work being requested.
13. Grant amount including change orders may not exceed the maximum grant limits, unless an unforeseen problem arises such as (including, but not limited to):
a. Deteriorated roof decking
b. Deteriorated foundation beams
c. Faulty electrical wiring
d. Damaged plumbing lines (gas, water, sewer)
e. Interior wall and roof framing damage.
14. Change orders for unforeseen items, may not exceed 15% of the maximum grant limit or 25% of the original bid amount.
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11 15. All participants (Applicants and Contractors) must abide by the Housing Rehabilitation Program Guidelines and procedures as established by the Housing and Community Development Housing Program Staff to participate in the program.
16. The City of Palm Springs Staff will:
a. Assist the Homeowner(s) in ensuring that all work is completed and passes city inspection according to established specifications, floor plans and/or City's Building Code and Ordinances.
b. Conduct a final inspection of the structure when notified to do so in writing by the Contractor.
c. When final inspection determines that the rehabilitation work has been satisfactorily completed according to the Specifications, floor plans , construction contract , City of Palm Springs ' Housing Rehabilitation Performance Manual and all applicable City Codes and Ordinances, and obtain from the Contractor a signed "Contractor's Affidavit ", along with affidavits from the electrician’s and plumber’s if applicable. Warranties for specific items will also be requested from Contractor before final payment is made.
17. Homeowners and Contractors are encouraged to resolve any dispute among themselves.
18. If Homeowner(s) and Contractor are not able to reach a mutual agreeable solution, then the dispute may be brought before the Housing and Community Development Department to review the situation and make a resolution ruling.
19. If the ruling is unacceptable by both parties, then the parties may seek legal recourse. The City of Palm Springs will not be a party to such litigation.
20. Applicants who cancel applications after title search, lead based paint inspection /testing, and/or specifications have been made shall be charged upfront for the soft costs (including staff time) to be expended when they reapply.
21. Applicants who postpone their applications will be placed at the bottom of the waiting list.
22. The City of Palm Springs will maintain all applications and files as required by the U.S.
Department of Housing and Urban Development and will be available for review by the U.S. Department of Housing and Urban Development Staff.
Section 13 - CONFLICT OF INTEREST
The City of Palm Springs covenants that neither member of its organization nor staff member who exercises influence on the decision making process presently has or will have any interest, direct or indirect, with any person, corporation, company or association hired to carry out any program activities or is a beneficiary of any program activity. All program participants will be required to sign a Conflict of Interest statement under which any existing or potential conflict of interest must be revealed.
Section 14 - STAFF INSPECTION- PLANS - SPECIFICATIONS
The City of Palm Springs will visit the site of the proposed project to do an inspection of the home and develop a preliminary work write-up.
1. In regard to rehabilitation, primary areas to be inspected and evaluated will be those outlined in the International Property Maintenance Code . This code provides the Item 2A - Page 312
12 minimum requirements necessary to maintain any residential occupancy in a safe and sanitary condition. Compliance with the American Disability Act will be required for those persons assisted with a physical disability.
2. Following the preliminary inspection, the City of Palm Springs will help Homeowner(s) in developing the specifications explaining work that is to be needed to make the home safe, decent, and sanitary.
INSPECTION PHASE
a) Once initial eligibility has been determined, Housing and Community Development Department Staff w ill schedule an on -site inspection of the property with the appropriate partner agency and homeowner.
b) Housing and Community Development Department Staff /Partner Agency will inspect the property and ensure that homeowner is informed of all program requirements, documents, and terms of program participation.
c) Pictures of the dwelling and yard will be taken. Pictures need to be inclusive of the entire property and should consist of, at a minimum, the following:
a. Direct frontal view taken from across the street;
b. Corner frontal view taken from across the street;
c. Corner frontal view taken from across the street from the opposite direction; d. Same views from any other street frontages if the home is on a corner lot; and e. Localized areas of repair.
d) In cooperation with the applicant, the Housing and Community Development Department Staff/partner agency will prepare a scope of work. The Scope of Work describes the problem(s) identified during the on-site inspection of the property and will be presented to a homeowner for review, comment, and approval. Housing and Community Development Department Staff should understand and be specific in their definition of the scope of work.
Specificity ensures that bids are comparable and enhances the ability of the c ontractors to accurately respond to the bid request.
e) The Scope of work must address the following priorities of repairs:
i) Health and Safety Issues/Systems
ii) Exterior Improvements
iii) Energy Efficiency Measures
Section 15 - REHABILITATION PLANS & SPECIFICATIONS
After the floor plan and specifications have been completed, the City of Palm Springs Staff will provide applicant with a preliminary cost estimate for all repairs to be made on home.
If the estimated construction cost exceeds the maximum grant limit, and applicant cannot pay for the excess cost to meet codes adopted by the City, the City of Palm Springs Staff shall refer the applicant to other affordable housing providers for consideration in their housing programs.
Section 16 - REHABILITATION
Item 2A - Page 313
13 Upon approval of the plans and specifications by Homeowner, the City of Palm Springs Staff will develop detailed bid specifications and floor plans to provide bidding Contractors with a description of all work that is to be completed.
Detailed specifications will include a floor plan of the structure and a detailed description of all work to be done. Applicant will be required to sign a "Certificate of Acceptance" form. This is to confirm their agreement and full understanding of the scope of assistance to be provided.
Section 17 - OBTAINING BIDS FOR CONSTRUCTION
The Housing and Community Development Department will assist Homeowners through the bidding process by advertising for bidders via local newspaper, internet, email, or fax.
1. A maximum of fifteen (15) days will be given to allow Contractors enough time to prepare a bid and meet HUD regulations.
2. Staff will hold a pre-bid conference with all bidding Contractors to discuss any questions regarding specifications, floor plans and site locations.
3. Contractors must submit bids for Housing Rehabilitation projects to the Housing and Community Development Department in a sealed envelope within the time allotted, as specified in advertisement for bids, otherwise bids will not be considered.
4. All bids will be opened at a scheduled bid opening as specified in advertisement for bids.
5. Contractors will be awarded a maximum of two (2) contracts per bidding cycle. This limit may be waived by the Housing and Community Development Director provided that the Contractor has demonstrated capacity and experience on prior projects with the City of Palm Springs Housing and Community Development Department and negotiations with the second lowest bidder have failed. In the case that a Contractor is determined to be the lowest bidder on more than two contracts and does not have the demonstrated experience and capacity , the contracts to be awarded to the next lowest bidder upon determination the bid is reasonable and justifiable. The remaining bids will be awarded to the next lowest qualified bidder(s). Contractors bidding for the first time, and being low bidder on more than one home, will only be awarded one home.
6. Bidders proposals will be in effect for thirty (30) days after correctly submitting bid.
7. Upon award of a bid, Homeowner(s) shall issue a Notice to Pr oceed to Contractor no later than fifteen (15) days from the bid award date.
8. If the foregoing time limits are exceeded, it shall be the Bidders prerogative to withdraw his/her bid in writing, if he/she so desires.
9. If all bids are over the maximum grant limit amount, bids will be reviewed by the Homeowner(s) and City of Palm Springs Staff to decide what items, if any, listed in the Specifications can be eliminated, but still address all code related repairs. a. Non code related repairs may be eliminated to bring project within maximum grant limits.
b. If project cannot be reduced to the maximum grant limit amount, the applicant may choose to pay the difference, up to 20% of the grant limit amount.
10. Once a Contractor has been selected, authorization to start construction will be in a Notice to Proceed Order to the Contractor.
11. Contractor will be required to start construction on project within ten (10) working days of contract signing.
Item 2A - Page 314
14 12. Following approval of grants by Department, the Housing and Community Development Staff will prepare grant documents and notify applicant of the closing date.
13. During the grant closing process, all necessary grant documents and construction contracts will be signed by Homeowner(s) and Contractor.
14. The Homeowner, Contractor, and Housing and Community Development Staff shall attend the grant closing.
15. Contractors must register to get a Business License and get permits with the Building Department.
Section 18 - PREPARATION, RECEIPT AND OPENING OF BIDS
Each bid must be submitted on the supplied form and be accompanied by:
1. Non-Collusion Affidavit;
2. Agreement to provide the following:
a. Proof of General Contractor’s and Subcontractor’s (plumbers, electricians, etc.) business license with the City of Palm Springs.
b. List of all subcontractors;
c. Proof of General Liability & Automobile Insurance
3. Bids will be received by the Housing and Community Development Department of the City of Palm Springs until date and time specified on public notice, and then publicly opened and read aloud.
4. The envelopes containing the bids must be sealed, addressed to the City of Palm Springs Attn: Noe Arechiga, Housing & Community Development Dept. 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 or via email to Noe Arechiga at [email protected].
5. The City may consider informal any bid not prepared and submitted in accordance with the provisions thereof and may waive any informalities or reject any and all bids. Any bid may be withdrawn prior to the above scheduled time for the opening of bids or authorized postponement thereof.
6. Any bid received after the time and date specified shall not be considered.
7. Two qualified bids correctly submitted as specified above, shall be preferred per bid opening on each project.
8. The City reserves the right to reject any or all bids.
9. All required forms must be submitted at the time of bid opening.
10. Contractor and subcontractors must be in good standing and not be indebted to the City of Palm Springs.
Section 19 - QUALIFICATIONS OF BIDDERS
1. The City may make investigations as deemed necessary to determine the ability of the bidder to perform the rehabilitation work and the bidder shall furnish to the City of Palm Springs all such information and dates for the purpose as the City may request.
2. The City reserves the right to reject any bid if the evidence submitted by or investigation of, such bidder fails to satisfy the City that such bidder is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.
Item 2A - Page 315
15 3. Conditional bids will not be accepted.
4. Bidder must agree to commence work on or before a date to be specified in a written "Notice to Proceed" from the Homeowner(s) and to fully complete the improvements within the time period specified in the contract between the Homeowner(s) and Contractor.
5. Bidder must agree to also pay, as a penalty for not complying with the time specified in the Contract, the sum of $75.00 for each working day beyond the time specified.
6. Each bidder must inform himself/herself fully of the conditions relating to the construction of the project and the employment of labor thereon.
7. Contractor/Bidder will acknowledge that he/she is familiar with conditions enabling him to estimate costs or work as called for.
8. Quantities and dimensions as indicated on specifications and floor plans are approximate.
9. It is the Contractors responsibility to verify all quantities and dimensions for the purpose of estimating. Failure to do so will not relieve a successful bidder of his obligations to furnish all material and labor necessary to carry out the provisions of his/her contract.
10. Insofar as possible, the Contractor, in carrying out his/her work must employ such methods or means as will not cause any interruption of, or interference with the work of any other Contractor.
11. If a Homeowner remains in the home during rehabilitation of the home, and a utility is to be turned off for rehabilitation purposes, and left off for more than twenty -four hours, there will be a fine of $50.00 per day unless temporary facilities are set up on the premises at the Contractor’s expense.
12. No interpretation of the meaning of the plans, specifications or other pre-bid documents will be made to any bidder orally.
13. Any and all such interpretations and any supplemental instructions will be in the form of written addenda to the specifications which, if issued, will be mailed to all prospective bidders or may be distributed at the pre-bid conference.
14. Failure of any bidder to receive any such addendum or interpretation shall not relieve such bidder from any obligation under his/her bid as submitted.
15. All addendums so issued shall become a part of the Contract documents.
16. The Bidder's attention is directed to the fact that all applicable State Laws, Municipal Ordinances and the rules and regulations of all authorities having jurisdiction over construction of the project shall apply to the contract throughout and they will be deemed to be included in the contract the same as though herein written out in full.
17. At the time of opening of bids, each bidder will be presumed to have inspected the site and to have read and to be thoroughly familiar with the plans, specifications and contract documents (including all addendum and/or interpretations).
18. The failure or omission of any bidder to examine any form, instrument or document shall in no way relieve any bidder from obligation in respect of his/her bid.
Section 20 - CONSTRUCTION
During the construction phase, the City of Palm Springs Staff will make periodic inspections to ensure work is completed in a satisfactory manner and to ensure compliance with specifications , floor plans, City codes, City of Palm Springs Housing Rehabilitation Performance Manual and other terms and conditions of the construction contract.
Item 2A - Page 316
16 Section 21 - CONTRACTOR REQUIREMENTS AND RESPONSIBILITIES
1. Contractors shall be required to furnish evidence of the following:
a. Commercial General Liability Insurance protecting the Owner(s) in an amount of not less than $500,000.00 Each Occurrence, $500,000.00 General Aggregate; b. $500,000.00 Products & Completed Operations Aggregate in case of bodily injury including death and property damage (inclusion of Builder's Risk Ins.) arising out of the work performed by or on behalf of the Contractor;
c. Automobile Liability Insurance coverage in an amount of at least $20,000.00 each person, $40,000.00 each accident for bodily injury including death and $15,000.00 for property damage, as required by the Texas Safety Responsibility Act.
2. Plumbers and Electricians hired by Contractors must have master license for their respective trades and have their professions registered with the NAME OF GRANTEE.
Plumbers and Electricians will be required to obtain their own permits.
3. General Contractor will not be allowed to pick up permits for their Plumbers or Electricians.
4. Contractor shall be required to obtain all necessary building permits before starting construction.
5. Contractor will also call upon the proper authorities for code compliance inspections and assume the fee for the same.
6. Contractor shall submit sealed bids promptly and accurately to the Housing and Community Development Department at City of Palm Springs, ATTN: Noe Arechiga , 3200 E Tahquitz Canyon Way, Palm Springs, CA 92262, on or before the time specified in the bid packet.
7. Contractors will be allowed to visit proposed construction sites after bid packets are issued.
8. During the pre -bid conference Contractor will clarify if so needed, with the Housing Rehabilitation Staff, any item stated on the specifications , otherwise, the specifications shall remain as written.
9. Contractor shall review specifications with accompanying floor plans so that any item or any work specified in either the specifications or floor plans are to be executed the same as if occurring in both.
10. Any items of labor or articles of materials that are neither directly nor indirectly shown on the drawings or mentioned in the specifications but are nevertheless necessary for proper completion of the obvious intention hereof, are to be provided by the Contractor in his bid.
11. Should any drawings or dimensions be omitted on the scale drawings where are necessary for a clear and comprehensive understanding, or should any errors appear in either, it will be the responsibility of the Contractor to advise the proper parties, but not go on with the work in uncertainty.
12. All materials of all kinds and character, except those materials included in the contract of a subcontractor, are to be furnished by the General Contractor unless otherwise therein described.
Item 2A - Page 317
17 13. The Contractor is to furnish all transportation, labor, materials, apparatuses and tools for doing the entire work in the best possible and most rapid manner; and to its entire proper and substantial completion.
14. The Contractor shall be responsible for removal or trimming of any trees, shrubs, etc.
15. The Contractor shall be held responsible for any violation of City Ordinances.
16. The Contractor shall remove all rubbish, waste material and construction material from site no less than once a week, and keep the premises as clean as possible during the process of the rehabilitation work.
17. At the time of project completion, the Contractor shall deliver the building in a broom clean condition.
18. Contractor shall be required to commence work within ten (10) working days from contract signing (or as stated in the Notice to Proceed) , and shall meet deadline for completion of project as specified in the Construction Contract.
19. Contractor shall follow Lead Base Paint Safe Work Practices in the event lead base paint is found in the home.
20. Any Contractor exceeding the deadline will be penalized according to the Construction Contract. Contractors will be given one additional work day for every approved rain day during the construction period as specified in the Construction Contract.
21. All labor is to be done in a skillful and thorough manner. All material to be of the dimension, design and grade as specified.
22. Unless specified otherwise, any patented materials specified by trade name are to be applied or installed strictly according to manufacturer's specifications.
23. Contractor shall be responsible for any subcontractors hired to do any part of this contract.
24. Contractor will be allowed one extension on each job, providing said extension is justifiable and requested by Contractor in writing.
25. Any telephone wiring , cables for internet, surveillance equipment, etc., removed or damaged by Contractor or Subcontractor shall be replaced or reinstalled at Contractor's expense.
26. Property items that do not call for removal on the specifications shall be reinstalled or replaced by Contractor before final inspection.
27. Contractor shall request final inspection only when the job is 100% complete.
28. Final inspection shall include among other requirements, trash removal from premises.
29. Plumbing and electrical work will need to be inspected and approved by the City of Palm Springs Building Department before final payment can be made to General Contractor.
30. When job is 100% complete, the Contractor shall submit a General Contractor's notarized sworn affidavit that all material suppliers and subcontractors have been fully paid, and liens against the property have been released.
31. Contractor shall submit all pay requests in writing, no less than five (5) working days before payment being issued.
32. Drawdown requests for contractor payments will not be processed until all documents for payment have been signed by Homeowner, Contractor and Housing and Community Development Staff.
33. Payments to General Contractor for Rehabilitation work will be made out according to completion percentage as specified below:
Draw 1 - 30% completion payment less 10%
Draw 2 - 30% at 60% completion less 10%
Item 2A - Page 318
18 Draw 3 - 30% at 100% completion less 10%
Final Draw - 10% after completion of all punch list items.
Section 22 - GUARANTEES & WARRANTIES
1. Contractor shall guarantee all work detailed in the specification s from date of final acceptance by Homeowner(s) and the Housing and Community Development Department.
2. Contractor must respond to life, health, and safety defects within 24 hours.
3. Contractor shall give Homeowner(s) and the Housing and Community Development Department a copy of all manufacturer’s and suppliers written warranties covering material and equipment furnished under the contract from Contractor.
4. Contractor shall present Homeowner(s) and the Housing and Community Development Department, at a minimum, written copies of manufacturer warranties as follows:
a. Shingle Roofing -- Copy of manufacturer’s warranty (Min 25 year) b. Water Heater
c. Air Conditioning/Heating equipment
5. Guarantee periods (beside manufacturers warranties) are as follows:
1 year: for any newly installed sheetrock, framing, insulation, exterior siding and trim, roofing, flooring, foundation (leveling) exterior and interior doors and windows.
2 years: New electrical wiring, plumbing lines and central air conditioning and heating.
Section 23 – REHABILITATION DEFICIENCIES
1. Deficiencies during the 1-to-2-year warranty period must be corrected within ten (10) working days from Contractor being notified by the Homeowner(s) or in some cases from the City of Palm Springs Housing and Community Development Department on behalf of Homeowner, unless a danger exists to Homeowner. In this case repairs shall be done immediately upon notice.
2. If Contractor fails to repair said items after verbal notice, Contractor will be notified via certified mail to correct items within 10 days upon receipt of said notice. However, if a danger exists, repairs shall be done immediately upon notice.
3. If Contractor fails to repair said warranty items within the ten (10) day period in the certified notice, the Homeowner has the option of requesting in writing that the City hire another Contractor to make repairs.
4. If a Contractor fails to honor any work covered during the warranty he shall be deemed ineligible for any future program participation.
5. With respect to all work performed under this contract, the Contractor shall:
a. Comply with the safety standard provisions of applicable laws, building and construction code and the "Manual of Accident prevention in Construction" published by the Associated General Contractors of America," the requirements of the Occupational Safety and Health Act of 1970, (Public law 91 -956), and the Item 2A - Page 319
19 requirements of Title 29 of the Code of Federal Regulations Sec. l5l8, as published in the Federal Register Vol. 36, #75, Saturday, April 17, 1971. b. Exercise every precaution at all times for the prevention of accidents and the protection of persons (including employees), and property. c. Maintain at his/her office or other well -known place at the job site, all articles necessary to give first aid to the injured, and shall make standing arrangements for the immediate removal to a hospital or a doctors care of persons (including employees who may be injured on the job site.)
d. In no case shall employees be allowed to work at a job site before the employer has arranged for removal of the injured person(s) to a hospital or doctor's care.
Section 24 - SUB-CONTRACTORS
The General Contractors are specifically advised that any person, firm or party to whom it is proposed to award a subcontract under this contract must:
1. Be acceptable to both the Homeowner(s) and the Housing and Community Department.
2. Approval of the proposed contract award cannot be given by the Housing and Community Development Department unless and until the proposed subcontractor has submitted the required documentation stipulated in the bid documents and/or other evidence showing that they have fully complied with any requirements to which they are subject to.
3. Although the bidder is not required to attach such certifications by proposed contractors to his bid, the bidder is hereby advised of this requirement so that appropriate action can be taken to prevent subsequent delay.
4. Electrician, mechanical, and plumbing subcontractors will obtain permits from the Building Inspection office. General Contractors will not be allowed to pick up permits for Plumbers or Electricians.
Section 25 - GRIEVANCE POLICY
1. Any person who has applied for participation and/or received assistance under the Housing Rehabilitation Program may register any complaints in writing with the Housing and Community Development Department.
2. The Housing and Community Development Director shall have thirty (30) days to respond to said complaint.
3. If Housing and Community Development Director’s response is unsatisfactory, Complainant may then request in writing a review of the matter by the Deputy City Manager.
4. The Deputy City Manager shall review complaint as registered in writing. Review will contain:
a. Initial written complaint submitted to the Housing and Community Development Director
b. Response from the Housing and Community Development Director. c. Complainants request for review by the Deputy City Manager. d. Any information provided by Complainant or Housing Rehabilitation Staff directly related to the written complaint.
5. The Deputy City Manager, upon reviewing all related information to complaint, shall make the final decision on the complaint.
Item 2A - Page 320
20 6. The decision shall be provided in writing to Housing and Community Development Director and Complainant within fifteen (15) days.
7. The Deputy City Manager shall act in an advisory capacity to correct the issue being reviewed.
8. If Complainant is dissatisfied with the decision of the Deputy City Manager, Complainant may then write to the U.S. Department of Housing and Urban Development (the funding agency for the Community Development Block Grant Program).
Section 26 - CONTRACT PROVISIONS
1. The City of Palm Springs may make such investigations as deemed necessary to determine the ability of the Contractor to perform the rehabilitation work and the Contractor will furnish to the City all such information and dates for the purpose as the City may request.
2. The City reserves the right to reject any bid if the evidence submitted by or investigation of such Contractor fails to satisfy the City that such Contractor is properly qualified to carry out the obligations of the contract and to complete the work contemplated therein.
3. Failure to comply with all provisions of the Program Guidelines, the Housing Rehabilitation Contract, City of Palm Springs ' Contractors Performance Manual and all applicable City Codes' and Ordinances will constitute grounds for corrective action by the City and may disqualify Contractors participation in the Housing Rehabilitation Program.
Section 27 – DOCUMENT MAINTENANCE
These guidelines/policies will undergo the normal periodic process of revisions, corrections, and additions to ensure compliance with federal regulations and the intent of the program. Any changes due to statutory or regulatory requirements or changes to existing policies approved by the City Council to incorporate changes made to existing policies codified in the Code of Federal Regulations are also considered as non-significant and can be approved at the staff level.
Approved this 2312 day of SeptemberApril, 20254
Item 2A - Page 321
21 Affidavit, 11, 14, 22
appeal, 20
Authorization, 6, 22
Bid
proposal, 10, 22
bid proposal, 10
bidder, 10, 13, 14, 15, 19
bidders, 13, 15
cancel, 12
Change orders, 11
Code, 4, 11, 12, 18
contract, 5, 11, 14, 15, 16, 17, 18, 19, 20
Contract, 11, 15, 17, 20
death, 16
demolished, 9
Disabled, 5
electrical, 11, 17
Electricians, 16
Eligibility, 6, 22
eligible, 4, 5, 6, 10
emergency, 8
Emergency
emergency, 8, 9, 10
flood plain, 6
floor plans, 11, 13, 15, 16
grant, 5, 8
Grievance, 4, 19, 20
guarantee, 18
Head of Household, 5
Elderly, 5
Non Elderly, 5
Income, 6, 7
income, 4, 5, 6, 7
income limits, 6
Income Tax, 6
inspection, 6, 8, 11, 12, 17
inspections, 15, 16
Insurance, 6, 16
Lead Base Paint, 8, 17
loan closing, 14
maximum, 8, 10, 11, 12, 13
Notice to Proceed, 13, 15
Occupants
occupants, 8, 9, 10
operating a business, 5
Ownership, 7
payment, 11, 17
Payments, 17
permits, 16, 19
Plumbers, 16
postpone, 12
pre-bid conference, 13, 15, 16
qualified contractor, 10
registration, 14
Relocation, 9
requirements, 4, 5, 7, 8, 9, 10, 12, 17, 18, 19
Social security, 6
specifications, 3, 10, 11, 12, 13, 15, 16, 17
Taxes, 6, 7, 8
Title search, 6
Total family income, 5
Utility receipts, 6
Verification, 6, 22
Verification of
Bank Deposits, 6
Employment, 6
Social Security, 6
Unemployment, 6
W-2's and 1040's, 6
waiting list, 3, 10, 12
warranty, 5, 18
Warranty Deed, 6
Item 2A - Page 322
CITY COUNCIL STAFF REPORT
DATE: APRIL 23, 2025 PUBLIC HEARING
SUBJECT: CONDUCT A PUBLIC HEARING UNDER SECTION 53083 OF THE CALIFORNIA GOVERNMENT CODE AND UNDER CHAPTER 5.26 OF
THE CITY’S HOTEL OPERATIONS INCENTIVE PROGRAM, APPROVE A
HOTEL OPERATIONS COVENANT BETWEEN THE CITY OF PALM
SPRINGS AND NEW CHURCH II, LLC, A NEVADA LIMITED LIABILITY
COMPANY, AND ARENAS BELARDO PS, LLC, A NEVADA LIMITED
LIABILITY COMPANY, AND CAHUILLA CHURCH, LLC, A NEVADA
LIMITED LIABILITY COMPANY, COLLECTIVELY THE OWNER
FROM: Scott C. Stiles, City Manager
BY: Wayne Olson, Office of Economic Development Department
SUMMARY:
This action seeks to satisfy the conditions of a public hearing and seeks approval of the economic development subsidy in the form of a TOT Operations Covenant Agreement (“Agreement”) in the form of Attachment A . The Agreement is with the Owner , Mr.
Richard Weintraub (and as described above) who is the General Manager for each of the LLCs. The Agreement is for the proposed new construction of a hospitality project (“The Orchid Tree Hotel ” or “Project”) which includes the rehabilitation of several historic buildings all located near downtown Palm Springs on property commonly known as 2845 Cahuilla Road (and described in the Agreement).
RECOMMENDATION:
1. Open the public hearing and receive public testimony; and,
2. Approve a Hotel Operations Covenant Agreement with The Orchid Tree Hotel and Owner; and,
3. Authorize the City Manager and City Attorney to make non-substantive changes and execute all necessary documents related to the subsidy.
BUSINESS PRINCIPAL DISCLOSURE:
The property is owned by NEW CHURCH II, LLC, a Nevada limited liability company, ARENAS BELARDO PS, LLC, a Nevada limited liability company, and CAHUILLA CHURCH, LLC, a Nevada limited liability company. A business disclosure letter from the Item 2B - Page 1
City Council Staff Report
April 23, 2025 -- Page 2
The Orchid Tree Hotel - Operations Covenant
Owner’s attorney accompanies this report in the form of Attachment B.
BACKGROUND:
Several years have transpired in the development of this project. The City’s first action was taken in November of 2015. Recitals in the attached Agreement document the years between then and the most recent actions between the City and the Developer.
This staff report is a result of actions tak en on October 24, 2022, when the Owner provided the City with a feasibility report, prepared by CBRE, which concluded that market conditions at the time precluded Owner from obtaining project financing, despite the Owner’s best effort, and as such, Owner sought an additional one (1) year extension to the various project development milestones.
Thereafter, on July 13, 2023, the City and Owner entered into that certain Amendment No. 2 to the Amended and Restated Operations Covenant Agreement No. 8449. As a result of that agreement, the Developer supplied a planning application for the Project as it was modeled in the agreement at that time in October of 2023. The application was deemed insufficient and notice was sent to the Developer in November of 2023.
The City then met with the Developer in February of 2024 to discuss alterations to the application, and it was at that time the City notified the Developer of its intent to place the Developer in default of that agreement and cancelled Agreement No. 8449. However, the City then entered into a tolling agreement with the Owner which is a legal document which allows for a period of time to negotiate a resolution or gather further information.
The City and Owner spent the next several months negotiating the terms of The Agreement being reviewed in this report and attached herein.
STAFF ANALYSIS:
Owner has recently proposed further revisions to the project, including the construction of a three story, approximately 72- room luxury hotel; restoration of eight (8) existing historic single-story bungalows into eight (8) new guest rooms; restoration of an existing historic two -story church into hotel services and restaurant; sixteen (16) residential condominium (for-sale) units; gym and spa facilities; event space, administration support and back of house building, one (1) new pool and exterior café/bar, with new landscaping throughout the Site (the “Project”), which would necessitate review and approval of revised land use entitlements, which the City is willing to consider in good faith.
The Agreement is predicated on the Developer’s delivery of a “Luxury Hotel” as recognized by the CBRE Hospitality Division as of the Effective Date of the Agreement, or hotels considered “luxury boutique”, such as the following: Auberge Resorts, 1 Hotel, Leading Hotels of the World, or Relais & Chateaux, or similarly sized hotels operated as such that are available as of the Effective Date of the Agreement. In the event that, at any Item 2B - Page 2
City Council Staff Report
April 23, 2025 -- Page 3
The Orchid Tree Hotel - Operations Covenant
time during the Term of the Agreement, the Developer cannot deliver any of the above brand conditions, the City and Developer will meet and confer on more hotel brands that are the equivalent of those brands.
The Developer is required to submit a new planning application by August 15 , 202 5 wherein updated site plans, floor plans, exterior elevations, pool and patio design, landscaping design, signage design as payment of applicable fees and other items as required by the rules and regulations of the City’s code. Several other milestones are included as an exhibit to the attached Agreement. It should be noted that the Developer will be required to post a bond equal to the total construction costs of the project prior to issuance of a building permit. The reason for this is, if for any reason the Developer cannot complete the Project after the start of Construction, the beneficiary of the surety (the City) could step in to complete the Project.
Since this is a new construction project, before and after photos are not required, however, the Developer has provided conceptual drawings of the Project provided and are included in Attachment C.
Per State Law and City Ordinance, the following information is provided regarding the Orchid Tree Hotel Palm Springs:
1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
The Agent for service of process to Operator is Paracorp Incorporated. Operator is a single purpose entity domiciled in the State of California doing business from PO Box 6528, Malibu, CA 90264. The beneficiary of the subsidy will be New Church II, LLC, a Nevada limited liability company, Arenas Belardo PS, LLC , a Nevada limited liability company, and Ca huilla Church, LLC , a Nevada limited liability company,
2. The start and end dates, and schedule, if applicable, for the economic development subsidy.
If approved, first TOT reimbursements are anticipated by 2028, and continue for thirty (30) years until 2058, or until the totality of payments totaling fifty million dollars ($50,000,000.00) have been completed, whichever occurs first.
3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.
A. Per the Program, the existing hotel project planned by Operator is rebated 75% of Adjusted TOT for thirty (30) years or until the rebate totals fifty million dollars Item 2B - Page 3
City Council Staff Report
April 23, 2025 -- Page 4
The Orchid Tree Hotel - Operations Covenant
($50,000,000), whichever comes first. The renovation project must commence no more than twenty -four months after the City’s execution of the Operation Covenant Agreement and be completed no later than December 31, 2027.
B. The public funds to be spent if the City approves this Covenant will be the staff costs of administration, and statutorily mandated reporting through the term of the Program rebate/subsidy
4. A statement of the public purposes for the economic development subsidy.
A. The City Council established the incentive program for the operation and maintenance of quality and first-class hotel facilities which enhance the tourist and travel experience for visitors to the City of Palm Springs, maximize the use of the City’s convention center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. In the implementation of this program, the City Council determined: (1) The general welfare and material wellbeing of the residents of the City of Palm Springs depend in large measure upon the growth and expansion of the tourism and travel industries in the City; (2) The operation, maintenance, and expansion of the inventory of quality hotels and first class hotels in the City of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the City, ensure utilization of the City’s convention center, provide employment opportunities for the residents of the City, and promote and enhance the economy of the City; (3) It is in the best interest of the City of Palm Springs to induce and encourage the operation and maintenance of hotel facilities that would not otherwise exist, thereby creating new sources of tax revenues for the City’s general fund which supports the public services that the City provides its residents; and (4) The authority granted and the purposes to be accomplished are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels is of paramount importance to the City of Palm Springs, its residents, and businesses. (Ord. 1730 § 2, 2008)
B. No less than five thousand dollars ($5,000) per room, or if the project includes any common area or amenity, or any other area for guest use at the hotel, the amount of the investment shall not be less than the amount, if any, invested in rooms, added to the total number of rooms at the hotel that will exist at the end of the project multiplied by five thousand dollars ($5,000).
C. The Project would help beautify the neighborhood through and implement energy saving and sustainable components as well as stabilize and re- use a Class 1 historic site.
5. Projected tax revenue to the local agency as a result of the economic development subsidy.
Item 2B - Page 4
City Council Staff Report
April 23, 2025 -- Page 5
The Orchid Tree Hotel - Operations Covenant
Per the Program, the City will receive 25% of Adjusted TOT for thirty (30) years or until the rebate to the Operator totals fifty million dollars ($50,000,000) whichever comes first. After thirty (30) years the City will receive 100% of the TOT revenue (Adjusted TOT plus Unadjusted TOT). In addition, the City will receive approximately $326,000 of its portion of sales tax over the same time period.
6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
The Operator anticipates increasing employment by 60 full -time positions and 10 part-time positions, for a total of 96 FTEs. The estimated annual payroll for employees and contracted maintenance services is estimated to be one million five hundred thousand ($1,500,000.).
ENVIRONMENTAL ASSESSMENT:
The City finds that no further environmental review is required in connection with the approval of the Agreement in that in connection with the City’s approval of entitlements related to the Project on September 1, 2022, the City Council found that the Project is exempt from further review under the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) and State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) as the Project meets criteria under CEQA Guidelines Section 15331 (Historic Resource Restoration/Rehabilitation), Section 15302 (Replacement or Reconstruction), and Section 15332 (Infill Development). These exemptions will apply to the Project, and apply to those projects that are consistent with the applicable general plan and zoning designations, occur within City limits on a project site of no more than five acres, occur on a site with no value as habitat, can be adequately served by utilities and public services, and where project approval would not result in any sig nificant effects relating to traffic, noise, air quality, or water quality. (State CEQA Guidelines, § 15352.) Further, given that there is no change of use proposed here, this Agreement is merely a funding Agreement, which does not have any attendant envi ronmental impacts. This action is also exempt pursuant to State CEQA Guidelines, section 15061(b)(3), which exempts actions for which it can be seen with certainty that there is no possibility of a significant environmental impact.
ALIGNMENT WITH STRATEGIC PLANNING:
Economic Development – Support a vibrant economy, including tourism, and new and existing businesses.
FISCAL IMPACT:
An amount equal to 75 % of transient occupancy tax increment derived from the Orchid Tree Hotel over the annual base amount (in this case equal to 0.00) , will be paid to the Operator for a t hirty-year period. The maximum pay -out to the recipient cannot exceed Item 2B - Page 5
City Council Staff Report
April 23, 2025 -- Page 6
The Orchid Tree Hotel - Operations Covenant
fifty million dollars $ 50,000,000 over the 30- year period. The a pproximated sales tax revenue is projected to be $326,000 over the same time period.
REVIEWED BY:
Department Director: Wayne Olson
City Attorney: Elizabeth Hull
City Manager: Scott Stiles
ATTACHMENTS:
A. Hotel Operations Covenant Agreement – The Orchid Tree Hotel B. Public Integrity Disclosure Letter
C. Illustrative drawings
Item 2B - Page 6
ATTACHMENT A
Item 2B - Page 7
55575.10035\43680786.1
OPERATIONS COVENANT
FOR HOTEL INCENTIVE PROGRAM
AMENDED & RESTATED COVENANT
NO. ____
PAGE 1 OF 22
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
THE CITY OF PALM SPRINGS
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Clerk
(Space Above This Line for Recorder’s Office Use Only)
SECOND AMENDED AND RESTATED OPERATIONS COVENANT
AGREEMENT NO. ____
THIS SECOND AMENDED AND RESTATED OPERATIONS COVENANT
AGREEMENT (“ Agreement”) is made and entered into this ___ day of ________________________, 2025, by and between on the one hand, NEW CHURCH II, LLC, a Nevada limited liability company , ARENAS BELARDO PS, LLC, a Nevada limited liability company , and CAHUILLA CHURCH, LLC, a Nevada limited liability company, (collectively, “Owner”); and, on the other hand, the CITY OF PALM SPRINGS, a California municipal corporation and charter city (“City”).
RECITALS:
A. The City of Palm Springs adopted Chapter 5.26 of its Municipal Code to provide a Hotel Operations Incentive Program (“Program”) for the operation, maintenance and expansion of the inventory of quality and first class hotels within the City that enhance the tourist and travel experience for visitors to the City, maximize the use of the City’s Convention Center, provide attractive and desirable visitor serving facilities and experiences, and assist the City in achieving its tourism goals. Chapter 5.26 of the Municipal Code is incorporated herein by reference and defined terms therein shall, unless otherwise indicated in this Agreement, have the same meanings herein.
B. Owner holds fee title to certain real property (the “Site”), which is depicted on the Site Plan attached hereto as Exhibit “A”, and legally described on the Legal Description attached hereto as Exhibit “B” . Owner has requested that the City enter into this Agreement in accordance with the Program to facilitate development of a new hotel located on the Site, pursuant to the covenants and restrictions identified in this Agreement.
C. On November 18, 2015, the City of Palm Springs Planning Commission adopted Resolution No. 6539, approving Major Architectural Application Case No. 3.0678 to renovate, modify and reconstruct existing buildings and construct a new three- story building with 52 hotel rooms on the Site. Accordingly, pursuant to this action, Owner Item 2B - Page 8
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satisfied the extended Program deadline for entitlement of a new hotel project on the Site by December 31, 2015.
D. On November 9, 2016, the Planning Commission adopted Resolution No. 6595, approving an Amendment to Conditional Use Permit Case No. 5.1345 CUP, Major Architectural Application Case No. 3.0678, HSPB 23 and HSPB 72 for the adaptive re-use of existing historic structures, and construction of new hotel buildings with not more than 64 hotel rooms, and accessory commercial uses including a spa, meeting space, and bar/lounge area on the Site.
E. On July 26, 2017, the City Council approved extending the Program deadline of December 31, 2017, by which Owner must commence construction of the City - approved project, to May 31, 2019, on the condition that Owner shall construct, operate and maintain that project as an Auberge Resorts Collection brand hotel.
F. On November 9, 2018, the Planning Commission adopted Resolution No. 6716, approving a one (1) year extension of time for the project subject to certain conditions.
On December 5, 2018, the City Council reviewed the November 8, 2018, decision of the Planning Commission, and adopted Resolution No. 24522 approving a one year extension of time for the project subject to certain conditions.
G. In early 2019, Owner advised City it would be unable to construct the Auberge Hotel project given the Auberge Resort Hotels’ amenity, service, and parking standards without financial incentives in excess of those provided by the Program. Accordingly, Owner requested relief from the requirement that the Auberge Hotel Project be a part of the Auberge Resorts Collection, and in the alternative, be considered a “Luxury Hotel”.
H. On April 17, 2019, the City Council held a noticed public hearing pursuant to California Government Code section 53083, and approved a Hotel Operating Covenant with Owner for the project (the “Original Covenant”). Pursuant to the Original Covenant, the City Council extended the Program deadline of May 31, 2019, by which Owner must commence construction of the project, to November 9, 2019.
I. On October 23, 2019, the City Council received an update on the status of the project.
At that time, Owner advised City Council that Owner had acquired additional properties located at 200 S. Cahuilla Road, 239 W. Arenas Road, and 205 S. Belardo Road, and intended to incorporate those properties into t he p roject. As part of the status update given to City Council on October 23, 2019, Owner requested the Original Covenant to be transferred to a revised l uxury hotel project, which would include those additional properties. City Council agreed, subject to certain conditions relating to Owner’s commitment to perform in accordance with a milestone schedule to be incorporated into the Original Covenant. Thereafter, on January 13, 2020, the City and Owner entered into that certain Amended and Restated Operations Covenant Item 2B - Page 9
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NO. ____
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Agreement No. 8449, which included the additional properties as well as a schedule of performance.
J. On March 25, 2020, the Planning Commission reviewed land use entitlements necessary for the revised luxury h otel project, including a Major Architectural Application, a Conditional Use Permit and a General Plan Amendment (Circulation Element), and recommended that the City Council approve such entitlements . On May 7, 2020, the City Council conducted a duly noticed public hearing and approved a Major Architectural Application, Conditional Use Permit, General Plan Amendment (Circulation Element), and Variance for the project.
K. On July 13, 2022, the Planning Commission heard and considered a two (2) year extension of time for the land use entitlements for the project, specifically, the Major Architectural Application and Conditional Use Permit. The Planning Commission denied such extension. On September 1, 2022, the City Council conducted a duly noticed public hearing on said extension request and voted to extend the land use entitlements for one (1) year, from May 8, 2022 to May 7, 2023. At that same hearing, the City Council also granted Owner a forty five (45) day extension to Milestones #10 through 14 of the Performance Schedule of Amendment No. 1 to the Amended and Restated Operations Covenant Agreement No. 8449.
L. On October 24, 2022, Owner provided the City with a feasibility report, prepared by CBRE, which concluded that market conditions at the time precluded Owner from obtaining project financing, despite the Owner’s best effort, and as such, Owner sought an additional one (1) year extension to the various project development milestones. Thereafter, on July 13, 2023, the City and Owner entered into that certain Amendment No. 2 to the Amended and Rest ated Operations Covenant Agreement No. 8449.
M. Owner has recently proposed further revisions to the p roject, including the construction of a three story, [_____] room luxury hotel; restoration of eight (8) existing historic single- story bungalows into eight (8) new guest rooms; restoration of an existing historic two -story church into hotel services and restaurant; sixteen (16) residential condominium (for -sale) units; gym and spa facilities; event space, administration support and back of house building, one (1) new pool and exterior café/bar, wi th new landscaping throughout the Site (the “Project”), which would necessitate review and approval of revised land use entitlements, which the City is willing to consider in good faith.
N. City and Owner desire to place restrictions upon the use and operation of the Project, in order to ensure that it shall be operated continuously as a Luxury Hotel as defined in Section 1.2.1 below, available for short-term rental for the term of this Agreement.
O. City and Owner also agree that in return for participation in the Program, Owner shall agree to operate the Project as a hotel ; participate in the Palm Springs Convention Item 2B - Page 10
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Center’s Committable Rooms Program; and provide City with a minimum of two (2) room-nights per month for official City use; and, City agrees to share a percentage of Transient Occupancy Tax with Owner pursuant to the Program guidelines.
P. The City finds that no further environmental review is required in connection with the approval of this Agreement in that in connection with the City’s approval of entitlements related to the Project on September 1, 2022, the City Council found that the Project is exempt from further review under the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) and State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) as the Project meets criteria under CEQA Guidelines Section 15331 (Historic Resource Restoration/Rehabilitation), Section 15302 (Replacement or Reconstruction), and Section 15332 ( Infill Development). These exemptions will apply to the Project , and apply to those projects that are consistent with the applicable general plan and zoning designations, occur within City limits on a project site of no more than five acres, occur on a site with no value as habitat, can be adequately served by utilities and public services, and where project approval would not result in any significant effects relating to traffic, noise, air quality, or water quality. (State CEQA Guidelines, § 15352.) Further, given that there is no change of use proposed here, this Agreement is merely a funding Agreement , which does not have any attendant environmental impacts. This action is also exempt pursuant to State CEQA Guidelines, section 15061(b)(3), which exempts actions for which it can be seen with certainty that there is no possibility of a significant environmental impact.
Q. Each reimbursement payment contemplated under this Agreement shall be within the annual appropriations limit of the City for that fiscal year established in accordance with California Constitution Article XIIIB.
NOW, THEREFORE , for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Owner hereby conveys to the City the Operating Covenants described herein, and City hereby agrees to provide Owner with funds as provided under the Program and as set forth hereinafter.
ARTICLE 1
STATEMENT OF OPERATING COVENANTS
1.1 OPERATION AND USE COVENANT. Upon occupancy, Owner covenants to operate, maintain, and use the Project as a Luxury H otel certified by the Hotel Consultant as further defined in Section 1.2.1 and in accordance with this Agreement. All uses conducted on the Site, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement shall, in all material respects, conform to requirements of this Agreement and Palm Springs Municipal Code. In accordance with Section 7.13 of this Agreement, the Owner m ay request City’s formal approval of an alternative Hotel Operator, and that in the event of City ’s approval of such an amendment to this Agreement, a hotel identified by Owner with a flag or brand equal or superior to the Luxury Item 2B - Page 11
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Hotel (as defined in Section 1.2.1) and certified by the Hotel Consultant, may serve to fulfill Owner’s duties hereunder. Absent City’s approval of an alternative Hotel Operator pursuant to an amendment to this Agreement, Owner’s operation, maintenance and use of the Luxury Hotel meeting the definition set forth in Section 1.2.1 throughout the term of this Agreement shall be a condition precedent to Owner’s receipt of any and all consideration or benefit under the Program and hereunder.
1.2 HOTEL USE. The Owner hereby agrees that the Project is to be owned, managed, and operated as a Luxury Hotel in a first -class manner, and the Project ’s participation in the Program shall continue in accordance with the terms of the Program, for a term equal to thirty (30) years commencing upon the date Owner first receives from the City the Owner’s share of transient occupancy tax revenues pursuant to the Program, or until Owner has received from the City the total sum of fifty million dollars ($50,000,000) if that occurs prior to the expiration of said thirty (30) years, unless Owner’s participation in the Program is terminated prior thereto in accordance with this Agreement (the “Term”).
Subject to Palm Springs Municipal Codes Section 5.26.040(a) and applicable provisions of this Agreement, during the Term, City shall pay to Owner, within thirty (30) days after receipt from Owner of twelve monthly payments made by Owner to the tax administrator per Section 3.24.080 of the Municipal Code, an amount equal to seventy -five percent (75%) of the adjusted tax rate of those payments made to the City.
1.2.1 “LUXURY HOTEL” BRAND PARTNER. The term ‘Luxury Hotel’ standard shall mean a hotel brand that satisfies the conditions of, and that is recognized as, Luxury by the CBRE Hospitality Division as of the Effective Date of this Agreement, or hotels considered “luxury boutique”, such as the following:
Auberge Resorts, 1 Hotel, Leading Hotels of the World, or Relais & Chateaux, or similarly sized hotels operated as such that are available as of the Effective Date of this Agreement. In the event that, at any time during the Term of the Agreement, none of the above brand conditions can be met, the Parties shall meet and confer and shall select one or more hotel brands that are the equivalent of those brands, as those brands exist and operate as of the Effective Date of this Agreement. City shall not require the Owner to pay for a hotel consultant to evaluate the luxury standard of the Project pursuant to this section 1.2.1 this Agreement.
Notwithstanding the prior sentence, City may enforce the Luxury Hotel standard by means of the City’s architectural review process as required by City code prior to plan check submittal, by the City’s plan check process prior to construction, by the City’s right to approve the hotel operator and any replacement operator under Section 7.13 of this Agreement, and by the ongoing requirement that Owner uphold and maintain the Luxury Hotel standard as a condition to receiving a share of transient occupancy tax revenues pursuant to this Agreement, as provided in Sections 1.2 and 7.13 hereof. In connection therewith, the City may, at any time, and at the City’s sole cost and expense, engage the services of one or more nationally recognized consultant(s), such as CBRE or HVS, to assist the City in the City’s evaluation of the “Luxury Hotel” standard.
Item 2B - Page 12
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1.2.2 Except as otherwise allowed pursuant to Section 7.13 of this Agreement, Owner understands and agrees that, to the extent Owner does not construct a Luxury Hotel as defined in Section 1.2.1, and pursues construction of, or operates an alternatively branded hotel, such alternatively branded hotel will not qualify as a new First Class Hotel pursuant to the Program, and shall not be entitled to any benefits thereof under or pursuant to the provisions of Chapter 5.26 of the Municipal Code and this Agreement. Accordingly, this Agreement will be of no further effect, and City shall have no obligations hereunder.
1.2.3 Owner shall notify City of its selection of its Brand Partner, at the time set forth in Exhibit “C”.
1.3 HOUSING USES PROHIBITED. None of the rooms in the Project will at any time be utilized as a non- transient residential property including dormitory, fraternity or sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park without the City ’s prior consent which consent may be given or withheld in its sole and absolute discretion.
1.3.1 LIMITED NUMBER OF RESIDENTIAL CONDOMINIUMS .
Notwithstanding the preceding paragraph, the City Council shall reasonably consider the incorporation of up to sixteen ( 16) residential condominiums into the Project. Such residential condominiums shall not be subject to the City’s transient occupancy tax (PSMC Ch. 3.24) or time- share occupancy tax (PSMC Ch. 3.28) , provided that those units are not occupied as a transient or time- share use, respectively.
1.4 CONVERSION OF PROJECT. Except as provided in Section 1.3.1 above, no part of the Project will at any time be owned by a cooperative housing corporation, nor shall the Owner take any steps in connection with the conversion of the hotel rooms to such ownership or uses to condominiums, or to any other form of ownership that would reduce the amount of TOT the City received from the Project , without the prior written approval of the City Council which approval may be given or withheld in its sole and absolute discretion.
ARTICLE 2
WARRANTIES AND COVENANTS
2. WARRANTIES AND COVENANTS . For the Term of this Agreement , the Owner hereby represents, covenants, warrants and agrees as follows:
2.1. Owner has completed the City’s application for the Hotel Operations Incentive Program. Since t he Project will be considered a new hotel, City has determined the Transient Occupancy Tax Base to be used to calculate the Item 2B - Page 13
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Transient Occupancy Tax Increment shall be zero dollars ($0.00), and the Owner accepts such Transient Occupancy Tax Base.
2.2. Owner hereby agrees to subscribe to the Palm Springs Convention Center’s Committable Rooms Program or any similar successor program as identified by the City Manager without being obligated to incur any additional costs or expenses.
2.3. Upon City’s prior request, Owner shall provide the City at no cost two (2) rooms for one (1) night (or 1 room for 2 nights) other than Friday or Saturday nights each month for use for City purposes as approved or designated by the City Manager, provided that such use by the City shall be subject to the rooms being available at the time of the City’s request. Such accommodations shall include all services and amenities for which the Owner would normally collect transient occupancy taxes but will not include services and amenities that are optional to the transient and for which the transient is not required to pay a transient occupancy tax. City shall be responsible for any transient occupancy taxes for any occupancy provided to City under the provisions of this paragraph, with such transient occupancy taxes subject to rebate to Owner pursuant to the Program .
Notwithstanding anything in this Agreement to the contrary, if the City does not use rooms during any month, then its right to use rooms with respect to that month shall expire at the end of that month and shall not accrue; provided, however, if the City was unable to use rooms solely because Owner ’s Hotel had no rooms available when the City requested a room in accordance with this Section 2.3, then, the City’s right to use rooms shall not expire and may be used by the City in a subsequent month.
ARTICLE 3
MAINTENANCE
3. MAINTENANCE.
3.1. MAINTENANCE OBLIGATION. Owner, for itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site, and all related on- site improvements and landscaping thereon, including, without limitation, buildings, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, an d in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and l ocal bodies and agencies having jurisdiction, at Owner’s sole cost and expense. Such maintenance and repair shall include, but not be limited to, the following: (i) sweeping and trash removal; (ii) the care and replacement of all shrubbery, plantings, and other landscaping in a healthy condition; and (iii) the repair, replacement and restriping of asphalt or concrete paving using the same type of Item 2B - Page 14
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material originally installed, to the end that such paving at all times be kept in a level and smooth condition. In addition, Owner shall be required to maintain the Project in such a manner as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site. Notwithstanding the foregoing, prior to the start of construction , prior to start of construction, Owner shall implement the practices set forth in Exhibit “D”.
3.2. [INTENTIONALLY LEFT BLANK].
3.3. RIGHT OF ENTRY . In the event Owner fails to maintain the Site pursuant to Section 3.1, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from City (such notice shall reasonably identify the required maintenance), City may, at City ’s option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, either City or its employees, contractors, or agents, may cure Owner ’s default by entering upon the Site , and performing the necessary landscaping and/or maintenance in accordance with Section 3.1 above. The City shall give Owner, its representative, or the residential manager reasonable notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out this Agreement. Owner shall pay such costs as are reasonably incurred by City for such maintenance, including attorneys’ fees and costs.
3.4. LIEN. If any costs incurred by City under Section 3. 3 above are not reimbursed within thirty (30) days after Owner’s receipt of City’s written request for reimbursement, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of the lower of ten percent (10%) per annum or the legal maximum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney’s fees, shall be an obligation of Owner as well as a lien and charge, with power of sale, upon the property interests of Owner, and the rents, issues and profits of such property. City may bring an action at law against Owner obligated to pay any such sums or foreclose the lien against Owner’s property interests. Any such lien may be enforced by sale by the City following recordation of a Notice of Default of Sale given in the manner and time required by law as in the case of a deed of trust; such sale to be conducted in accordance with the pr ovisions of Section 2924, et seq., of the California Civil Code, applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law.
Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest or leasehold or Item 2B - Page 15
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subleasehold estate in and to any portion of the Site, and any purchaser at any foreclosure or trustee ’s sale (as well as any deed or assignment in lieu of foreclosure or trustee’s sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject Site after the date of such foreclosure sale, shall become a lien upon such upon recordation of a Notice of Assessment or Notice of Claim of Lien as herein provided.
ARTICLE 4
COMPLIANCE WITH LAWS
4.1. COMPLIANCE WITH LAWS . Owner shall comply with all ordinances, regulations and standards of the City and City applicable to the Site. Owner shall comply with all rules and regulations of any assessment district of the City with jurisdiction over the Site.
ARTICLE 5
NONDISCRIMINATION
5.1. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES . No officer or employee of the City shall be personally liable to the Owner, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Owner or to its successor, or for breach of any obligation of the terms of this Agreement.
5.2 CONFLICT OF INTEREST . Owner acknowledges that , during the term of this Covenant, no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Owner, during the term of this Covenant, enter into any contract of any kind with any officer or employee of the City, or any person who was a City officer or employee within the twelve (12) months preceding such contracting by Owner. Owner warrants that Owner has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining t his Agreement.
5.3. COVENANT AGAINST DISCRIMINATION.
a. In connection with its performance under this Agreement , Owner shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), Item 2B - Page 16
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sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). Owner shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement , Owner certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Owner activity, including but not limited to the following:
employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selecti on for training, including apprenticeship; and further, that Owner is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting. b. Owner shall not discriminate against or segregate any person, or group of persons, on account of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall Owner, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of guests or vendees of the Site, or any part thereof.
ARTICLE 6
COVENANTS TO RUN WITH THE LAND
6.1. COVENANTS TO RUN WITH THE LAND. Owner hereby subjects the Site to the covenants, reservations, and restrictions set forth in this Agreement (collectively, the “Operating Covenants”). City and Owner hereby declare their express intent that all such covenants, reservations, and restrictions, along with the benefits of this Agreement, shall be deemed covenants running with the land and shall pass to and be binding upon and benefit the Owner ’s successors in title to the Site; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions shall expire.
All covenants without regard to technical classification or designation shall be binding for the benefit of the City, and such covenants shall run in favor of the City for the entire term of this Agreement, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed or other instrument.
City and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner ’s legal interest Item 2B - Page 17
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in the Site is rendered less valuable thereby. City and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Project by the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the City was formed.
Owner, in exchange for the City entering into this Agreement , hereby agrees to hold, sell, and convey the Site subject to the terms of this Agreement. Owner also grants to the City the right and power to enforce the terms of this Agreement against the Owner and all persons having any right, title or interest in the Site, or any part thereof while such party owns the Site. No party shall have any liability or obligation in connection with any breach occurring while such party is not the owner of the Site.
Within fifteen (15) business days after request of Owner, City shall execute and provide to Owner an estoppel certificate, in the form approved by the City Attorney of the City, confirming whether or not Owner is in breach of any obligations under this Agreement and identifying any required cure.
ARTICLE 7
INDEMNIFICATION
7.1. INDEMNIFICATION. Owner agrees for itself and its successors and assigns to indemnify, defend with counsel acceptable to the City, and hold harmless City and its respective officers, members, officials, employees, agents, volunteers, and representatives from and against any loss, liability, claim, or judgment to or by any third party relating to development and/or operation of the Project by Owner, excepting only any such loss, liability, claim, or judgment arising solely out of the intentional wrongdoing or gross negligence of City or its respective officers, officials, employees, members, agents, volunteers, or representatives. Owner further agrees for itself, and its successors and assigns to indemnify, defend with counsel acceptable to the City, and hold harmless the City, its respective officers, members, officials, employees, agents, volunteers, and representatives from and against any loss, liability, claims, damages, penalties, losses, costs, expenses, injuries and/or liabilities arising from or related to Owner’s participation in the Program , including, without limitation, any claim that such participation creates a public work for prevailing wage purposes thereby requiring the payment of prevailing wages and this obligation shall apply regardless of whether or not the claim, damage, penalty, loss, cost, expense, injury and/or liability complained of arises out of or relates in any way to any negligence on the part of City. Owner, while in possession of the Site, and each successor or assign of Owner while in possession of the Site, shall remain fully obligated for the payment of property taxes and assessments in connection with the Site.
The foregoing indemnification, defense, and hold harmless agreement shall only be applicable to and binding upon the party then owning the Site or applicable portion thereof.
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7.2. PREVAILING WAGE . In accordance with California Labor Code section 1781(a)(2), the Owner acknowledges that the City has expressly indicated to the Owner and persons associated with the Owner that laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq. and Palm Springs Municipal Code Section 7.06.030(1). The Owner agrees with the City that the Owner shall assume the responsibility and be solely responsible for payment of the prevailing per diem wage rate for their labor classification.
The Owner , on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to it pursuant to California Labor Code Sections 1726 and 1781. The Owner acknowledges the protections of Civil Code Section 1542 relative to the waiver and release contained in this section 7.2, which reads as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEM ENT WITH THE
DEBTOR OR RELEASED PARTY.”
BY INITIALING BELOW, THE OWNER KNOWINGLY AND
VOLUNTARILY WAIVES THE PROVISIONS OF SECTION
1542 SOLELY IN CONNECTION WITH THE WAIVERS AND
RELEASES OF THIS SECTION.
Owner’s Initials
Additionally, in accordance with this section 7.2, the Owner shall indemnify, defend with counsel acceptable to the City, and hold the City harmless against any claims pursuant to California Labor Code Sections 1726 and 1781 arising from this Agreement or the construction or operation of the Project.
7.3 ATTORNEYS’ FEES. In the event that a party to this Agreement brings an action against the other party hereto by reason of the breach of any condition, covenant, representation or warranty in this Agreement, or otherwise arising out of this Agreement, the prevailing party in such action shall be entitled to recover from the other reasonable expert witness fees, and its reasonable attorney ’s fees and costs. Attorney ’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney ’s fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery.
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7.4. AMENDMENTS. This Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside.
7.5. NOTICE. Any notice required to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto:
City: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Manager
Copy to: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: City Attorney
Owner: New Church II, LLC
c/o Weintraub Real Estate Group
P.O. Box 6528
Malibu, CA 90264
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.
7.6. SEVERABILITY/WAIVER/INTEGRATION
7.6.1. SEVERABILITY. If any provision of this Agreement or portion thereof, or the application to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of the provisions, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; provided, that if any material terms or provisions of these Operating Covenants are rendered invalid, void and/or unenforceable, or due to changes in the law such terms or provisions would materially alter the terms of the transactions contemplated herein, the parties agree to meet and negotiate in good faith to attempt to reform these Operating Covenants to accomplish the intent of the parties.
7.6.2. WAIVER. A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right.
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7.6.3. INTEGRATION. This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement.
7.6.4. THIRD PARTIES. No third party beneficiaries are intended, and the only parties who are entitled to enforce the provisions of these Operating Covenants are the City, Mortgagees, Owner and their respective successors and assigns.
7.7. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California and is subject to the provisions of Government Code Section 53083.
7.8. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall constitute one original and all of which shall be one and the same instrument.
7.9. TERMINATION. This Agreement may be terminated only (i) by and upon expiration of the Term, (ii) by mutual written agreement of the parties, and (iii) by and pursuant to the provisions of Section 7.10, 7.11 or 7.15.2 below. In addition, Owner may unilaterally terminate this Agreement at any time prior to , or after, opening the Hotel, by giving written notice to the City that it is renouncing its participation in the Program and terminating this Agreement. In the event of any termination of this Agreement, City and Owner shall sign and record a notice of termination evidencing release and termination of this Agreement as an encumbrance of record on the Site, City shall not be obligated to refund any TOT remitted after the date of termination to Owner pursuant to this Agreement, and Owner shall not be obligated to return any amounts previously paid to it by the City pursuant to the Program. In the event of any termination pursuant to the provisions of Section 7.15.2, City shall sign and record a notice of termination, and Owner hereby authorizes City’s execution without Owner’s signature, by evidencing Owner’s agreement pursuant to Section 7.15.2 herein.
7.10 DEFAULT BY OWNER. If at any time during the Term, City contends that Owner has committed a material default with respect this Agreement , for example (and not by way of limitation), by failing to operate the Hotel as a “Luxury Hotel” as defined above, by failing to meet any performance milestone, or any other material covenant of this Agreement, City shall deliver to Owner written notice of default , which specifies in detail all facts alleged by City to constitute such default. For a period of thirty (30) days thereafter, Owner will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty (30) days to cure, and the Parties so agree, Owner will have such additional time as is reasonably necessary to complete such cure. Subject to Section
7.12 below, if Owner fails to timely cure such default, City shall then have the right to terminate this Agreement as the City’s sole and exclusive remedy . Prior to such termination, City shall afford Owner the opportunity to address the City Council, in open session, in order to dispute City’s allegation of default of this Agreement.
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7.10.1 LIMITED CURE FOR PERFORMANCE MILESTONES .
Notwithstanding the foregoing, Owner shall be entitled to only one cure opportunity for any and all defaults consisting of failure to meet performance milestones under Exhibit “C” to this Agreement for reasons other than Force Majeure or Excused Delay under 7.16 below (“Missed Milestone Default”). After City has given Owner a cure opportunity for one Missed Milestone Default, then Owner shall have no further right to any cure opportunity for a subsequent Missed Milestone Default relating to the same performance milestone or any other performance milestone. For purposes of this section 7.10.1, a cure opportunity shall mean that for a period of thirty (30) days after a written notice of default, Owner will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty (30) days to cure, and the Parties so agree, Owner will have such addition time as is reasonably necessary to complete such cure.
7.11 DEFAULT BY CITY. If at any time during the Term, Owner contends that City has committed a material default with respect this Agreement, Owner may deliver to City written notice of default which specifies in detail all facts alleged by Owner to constitute such default. For a period of thirty (30) days thereafter, City will have the right to commence and complete cure of the alleged default; provided, however, if the alleged default is of such a nature as to reasonably require more than thirty (30) days to cure, and the Parties so agree, City will have such additional time as is reasonably necessary to complete such cure. Subject to Section 7.12 , if City fails to timely cure such default, Owner shall then have the right to terminate this Agreement or exercise any and all other rights and remedies available at law and in equity, and each of such rights and remedies shall be cumulative and not exclusive.
7.12 MORTGAGE PROVISIONS. Anything in this Agreement to the contrary notwithstanding, with respect to any recorded mortgage or deed of trust given in good faith and for value and encumbering the Project (“Mortgage”), any holder thereof that has delivered to City a copy of such recorded Mortgage and current contact information (“Mortgagee”) will be entitled rights and benefits in accordance with the following:
7.12.1. City acknowledges and agrees that the rights and obligations of Owner under this Agreement may, with or without approval by City, be conditionally assigned by Owner to any Mortgagee as security for performance of Mortgage obligations.
7.12.2. While any Mortgage remains in effect, City will not amend or modify this Agreement in any material respect without receiving prior written approval from Mortgagee, which approval may not be unreasonably withheld, delayed or conditioned; provided, however, failure by Mortgagee to provide written approval or disapproval (and if disapproval the reasons therefor) within thirty (30) days of delivery of request therefor shall be deemed to constitute approval by Mortgagee.
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7.12.3. While any Mortgage remains in effect, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7.10 above, City shall concurrently deliver a copy thereof to Mortgagee.
7.12.4. Delivery of any such notice of default notwithstanding, City will not terminate or initiate or pursue any action to terminate this Agreement as long as Mortgagee diligently (i) declares a default by Owner under the Mortgage, (ii) pursues foreclosure and/or other appropriate actions under the Mortgage, (iii) pays to City all amounts that would otherwise have been payable by Owner to City, and (iv) cures non-monetary defaults.
7.13 OPERATOR PROVISIONS . City acknowledges and agrees that operational obligations of Owner may, with or without consent of City, be assigned by Owner to any entity owned or wholly controlled by Owner or its Members or Hotel Operator of Owner’s choice, and, in connection therewith, such Hotel Operator may assume all or part of Owner’s Hotel operation obligations under this Agreement; provided, however, Owner shall retain ultimate responsibility for such Hotel operation obligations, and further, that the Project remains a Luxury Hotel meeting the “Luxury Hotel” definition pursuant to Section 1.21.
Subject to Sections 7.10 and 7.16, in the event that the Project to be developed hereunder ceases to operate as a Luxury Hotel, Owner’s benefits accruing pursuant to the Program will terminate, effective immediately. Owner acknowledges that the identity of the brand or “flag” that the hotel is marketed under and/or managed by (the “Hotel Operator”) is of material importance to the City, and Owner’s selection of the initial Hotel Operator and any subsequent replacement of the Hotel Operator shall be subjec t to the City’s review and approval to confirm that the Hotel Operator has the experience and reputation necessary to operate the Project as a Luxury Hotel. Such approval by the City shall not be unreasonably withheld.
Owner shall have the duty to provide the City with written notice of any actual or potential change of Hotel Operator immediately upon Owner’s determination that a change of Hotel Operator has taken place or is reasonably likely to take place. That notice shall include without limitation Owner’s identification of the flag or brand of an actual or potential replacement Hotel Operator, and relevant data to assist the City in determining whether the replacement hotel is consistent with the Luxury Hotel quality standard defined in Section 1.2.1, and as further required by this Agreement.
Upon City’s approval of a successor Hotel Operator, the successor shall be deemed an “Approved Hotel Operator ”, and in connection therewith, such alternative Hotel Operator may assume all or part of Owner’s Hotel operation obligations under this Agreement; provided, however, Owner shall retain ultimate responsibility for such h otel operation obligations. City agrees that while any operating agreement is in effect between Owner and the Approved Hotel Operator, and provided that City has been put on notice of such operating agreement and received contact information for such Approved Hotel Item 2B - Page 23
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Operator, in the event City delivers to Owner of any notice of default as referenced in either Section 3.1 or 7. 10 above, City shall concurrently deliver a copy thereof to the Approved Hotel Operator. Notwithstanding any other provision of this Agreement , following completion and opening for business of the Luxury Hotel, Owner may assign its right to payments under this Agreement to any person or entity. Owner shall provide written notice to City of its assignment and authorization to send subsequent payments to the assignee.
7.14 CONTINGENT PAYMENT . Owner acknowledges and agrees that any payments hereunder from transient occupancy taxes paid to City by Owner is contingent on Owner’s compliance with all of the following conditions:
7.14.1 Notwithstanding any other provision herein, the City shall only make the payments required hereunder from transient occupancy taxes paid to City by Owner in exchange for consideration received from the Owner to the City during that same period.
7.14.2 In the event of a breach by the City with respect to the payments provided for under this Agreement , Owner agrees to waive (1) any right to acceleration of all future payments, and (2) collecting the full repayment obligation of the City under the Agreement. The Owner shall only be able to pursue collection of payments on an individual payment period, as such payments became due.
7.14.3 Owner shall develop the Project pursuant to the provisions of Section
7.15 herein.
7.15 TIMING OF PROJECT CONSTRUCTION AND COMPLETION. As a material inducement to City’s approval of this Agreement , the Owner hereby agrees to the following conditions. The Parties agree that the Project, once it is fully entitled and approved by the City , will qualify as a new First Class Hotel pursuant to Chapter 5.26, and further, the Parties hereby agree that pursuant to the terms of this Agreement , the obligation to commence construction of the Project prior to November 9, 2019, in accordance with Chapter 5.26 shall be extended to the date consistent with the Performance Schedule referenced herein, and that if completed and opened consistent with the Performance Schedule referenced herein, and continuously operated as a Luxury Hotel as stated herein this Agreement, the Project will qualify as a First Class Hotel and be entitled to benefits thereof under and pursuant to the provisions of Chapter 5.26 of the Municipal Code and this Agreement.
7.15.1 PERFORMANCE SCHEDULE. Owner shall use its best efforts to meet the agreed schedule attached hereto, and incorporated by this reference herein as Exhibit “C”, (the “Performance Schedule”). Owner acknowledges that City is relying upon Owner’s representations that it can proceed with development, construction, and completion of the Project pursuant to the Performance Schedule. Owner understands and agrees that any deviation from the Performance Schedule in the Item 2B - Page 24
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absence of the mutually agreed- upon occurrence of a force majeure event or excusable delay pursuant to Section 7.16, shall be considered by City as a material default by Owner . Specifically, the Owner acknowledges that time is of the essence in this Covenant. To that end, but subject to the Force Majeure/Excusable Delay provisions of Section 7.16 and the one- time cure opportunity in Section
7.10.1, in the event Owner fails to meet more than one of the scheduled events in the Performance Schedule, such failure shall constitute a material default and the City may exercise the City’s right to terminate this Covenant, without an opportunity to cure. In addition, the Owner agrees that any existing or future land use entitlement(s) for the Site as a Luxury Hotel shall include in such land use entitlement(s) the same right, but not the obligation, of the City as an additional remedy following a termination of this Covenant pursuant to the preceding sentence, to terminate such land use entitlement(s) , at any time prior to the occurrence of both of the following: (a) the issuance of the last discretionary entitlement for the Project; and (b) the Owner has incurred substantial costs in the construction of vertical improvements related to the Project.
7.15.2 REVISED PERFORMANCE SCHEDULE . In the event Owner’s performance to develop, construct, and complete the Project is delayed due to the occurrence of a force majeure event or excusable delay pursuant to Section 7.16, Owner shall submit to City a written request to revise the Performance Schedule, citing the legal basis and facts supporting a determination of a force majeure event or excusable delay . Force majeure events or excusable delays as defined in Section 7.16 below (hereinafter a “Pre-Approved Delay”) shall be communicated, reviewed, and approved/disapproved pursuant to Section 7.16 below, and the Performance Schedule may be revised in the City’s reasonable discretion.
7.15.3 SECURITY FOR PERFORMANCE. In order to ensure the completion of the Project, Owner shall, at the time set forth in Exhibit “C”, provide a performance bond. To guarantee the faithful construction of the Project and to protect City if Owner is in default as set forth in this Agreement, Owner shall, at the time set forth in Exhibit “C” , provide City security in the amount of all costs and expenses to construct and install the Project, including contractor, subcontractor and material costs, but excluding therefrom any design or permi tting costs (“Total Project Cost”). City may, in its sole and absolute discretion, partially release a portion or portions of the security provided under this section as the Project is completed and inspected by City, provided that Owner is not then in default on any provision of this Agreement , and the total remaining security is not less than twenty-five percent (25%) of the Total Project Costs . All security provided under this section shall be released at the time set forth in Exhibit “C” , provided tha t Owner is not then in default of any provision of this Agreement. Such performance bond shall be issued by a surety that is licensed and admitted to provide surety service within the State of California.
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7.16 FORCE MAJEURE AND EXCUSABLE DELAY . In addition to specific provisions of this Agreement, neither party shall be deemed to be in default where delays in performance or failures to perform are due to, and a necessary outcome of, war, insurrection, riots, floods, earthquakes, fires, explosions, casualties, unexpected subsurface conditions, construction defects, bankruptcy or default of the Hotel Operator or a key contractor or subcontractor, criminal vandalism, release of hazardous materials, disease epidemic, acts of God, restrictions imposed or mandated by other governmental entities (including new or supplemental environmental regulations), enactment of conflicting state or federal laws or regulations, judicial decisions, or any other similar cause beyond the reasonable control of the party claiming an extension of time (collectively and each a “Force Majeure” event), provided also, that to the extent that any one or more of the foregoing list of events is caused by, or the fault of, the party claiming an extension of time to perform, such event(s) shall not be a Force Majeure entitling the party to an extension of time. The illness or death of a principal or other person associated with either party shall be deemed to not be a force majeure. Strikes, walk outs or other labor disturbances shall constitute a force majeure only if (i) they materially disrupt Owner’s access to materials or equipment necessary for the construction, such as a major dockworker’s strike that shuts down transport and supplies; or (ii) if they directly involve key trades working at the Project jobsite an d Owner enters into, and maintains, a labor peace agreement. A force majeure will be deemed to exist under this Agreement only if such event was truly and reasonably beyond the control of the party claiming an extension of time to perform. In addition, a force majeure will be deemed to exist under this Agreement, only where, under the particular circumstances, there is such an insuperable interference occurring without the party’s intervention as could not have been prevented by the exercise of prudence, diligence and care. In addition, an event that has no material effect on the cost or difficulty of performance and is wholly immaterial shall not be a Force Majeure event. Litigation challenging the validity of this Agreement or any of the City’s approvals of the Project, or any permit, ordinance, entitlement or other action of a governmental agency other than City necessary for the development of the Project pursuant to this Agreement , shall also be deemed to create an excusable delay as to Owner (collectively “Excusable Delay”). The party whose performance is prevented or delayed by such event of Force Majeure or Excusable Delay shall give written notice thereof to the other party within no more than seven (7) business days and both parties shall have reasonably agreed that performance is appropriately excused or delayed pursuant to this Section 7.16. In the event of Force Majeure or Excusable Delay, the parties shall memorialize in writing the extension of time for the performance of any obligation whose performance has been so prevented or delayed. The term of any such extension shall be equal to the period of the Excusable Delay or Force Majeure event, or such other period as may be mutually and reasonably agreed upon by both parties.
Specifically and without limiting the generality of the foregoing, Owner’s covenant to continuously operate and maintain the Project as a Luxury Hotel pursuant to the definition identified in Section 1.2.1 shall be suspended to the extent such operations and maintenance are from time to time interrupted by renovations, repair and reconstruction Item 2B - Page 26
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work undertaken by Owner whether by necessity to restore the Project to a Luxury Hotel condition, or by choice in order to enhance the guest experience at the Project.
Notwithstanding the foregoing, any suspension of time in the Owner’s operation of the Project pursuant to this Section 7.16 shall not exceed a time period that is mutually and reasonably agreed upon by both Parties.
However, the City shall be under no obligation (express or implied) to extend any of Owner’s deadline(s) for performance above due to any inability of the Owner to obtain or maintain financing for the construction and/or operation of the Project , except to the extent Owner can demonstrate that such inability was caused by a Force Majeure event as described in the preceding two paragraphs.
SUBJECT TO THE FOREGOING PROVISIONS OF THIS SECTION 7.16, I. THE OWNER EXPRESSLY ASSUMES THE RISK OF
UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES OR MARKET
DEMAND/CONDITIONS, OR BOTH, AND WAIVES ANY DEFENSE, CLAIM (INCLUDING ANY CLAIM OF FORCE MAJEURE OR EXCUSED DELAY), OR CAUSE
OF ACTION BASED IN WHOLE OR IN PART ON ECONOMIC NECESSITY,
IMPRACTICABILITY, CHANGED ECONOMIC CIRCUMSTANCES, FRUSTRATION OF PURPOSE, OR SIMILAR THEORIES.
II. THE OWNER EXPRESSLY AGREES THAT ADVERSE CHANGES
IN ECONOMIC CONDITIONS, EITHER OF THE OWNER SPECIFICALLY , ANY
CONTRACTOR, SUBCONTRACTOR, SUPPLIER OF MATERIAL, OR THE ECONOMY
GENERALLY, OR CHANGES IN MARKET CONDITIONS OR DEMANDS, SHALL NOT
OPERATE TO EXCUSE OR DELAY THE STRICT OBSERVANCE OF EACH AND
EVERY OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS AGREEMENT. THE OWNER EXPRESSLY ASSUMES T HE RISK OF SUCH
ADVERSE ECONOMIC OR MARKET CHANGES, WHETHER OR NOT FORESEEABLE AS OF THE OWNER'S EXECUTION OF THIS AGREEMENT.
OWNER'S INITIALS _____
7.17 COOPERATION. Each party agrees to and shall do and perform such other and further acts and properly execute and deliver such other and further documents as may be reasonably necessary, expedient or convenient to implement and/or effectuate the intents and purposes hereof. City and Owner agree t o cooperate with each other and/or with any Mortgagee or proposed Mortgagee, in a manner consistent with concepts and principles of good faith, fair dealing and commercial reasonableness, with respect to consideration, implementation and execution of any modification(s) to this Agreement reasonably requested by the City, Owner, Mortgagee or proposed Mortgagee. Owner shall notify the City, in writing, of any legal claim (notice, lien, lawsuit, etc.) or any force majeure event upon which Owner may rely, within seven (7) two (2) business days Item 2B - Page 27
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following Owner’s receipt of such claim, and failure to do so shall constitute a material default hereunder and a loss of Owner’s opportunity to claim a force majeure delay.
7.18 REASONABLE APPROVALS. Whenever this Agreement requires or calls for the approval or consent of any party hereto, such approval shall not be unreasonably withheld, delayed or conditioned.
7.19 BINDING ARBITRATION. In the event of any dispute or controversy arising out of or relating to this Agreement, or the breach or performance of it, the parties shall reasonably attempt to resolve such dispute or controversy without resort to third party review or resolution. The parties shall first meet and confer on any such dispute or controversy. Such meeting(s) shall include any principal of the Owner and, at the discretion of the City, may include the City Manager and/or the City Council, either as a whole or through an ad hoc subcommittee designated by the City Council. Upon a determination by the parties that they are or will be unable to resolve the dispute or controversy on their own, then the parties shall, within sixty (60) days following the first meet and confer date, submit the dispute, controversy or any remaining unresolved matter to binding arbitration, to be held in the Coachella Valley, and be conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association.
7.20 INCORPORATION OF RECITALS AND EXHIBITS . Each of the recitals set forth above and each of the exhibits attached hereto are agreed to and made part of this Agreement.
7.21 AUTHORITY. Each party represents and warrants to the other that such party has full right, power and authority to sign, execute and enter into this Agreement.
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the City and Owner have executed this Agreement by duly authorized representatives on the date first written hereinabove. “CITY”
THE CITY OF PALM SPRINGS,
a California municipal corporation,
and charter city
By:
Scott Stiles, City Manager
ATTEST:
Brenda Pree, City Clerk
APPROVED AS TO FORM:
Jeff Ballinger, City Attorney
“OWNER”
NEW CHURCH II, LLC,
a Nevada limited liability company
By:_____________________________
Richard Weintraub, General Manager
ARENAS BELARDO PS, LLC, a Nevada
limited liability company
CAHUILLA CHURCH, LLC
a Nevada limited liability company
By:____________________________
Richard Weintraub, General Manager
By:_____________________________
Richard Weintraub, General Manager
[END OF SIGNATURES]
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EXHIBIT “A”
EXHIBIT “A”
SITE PLAN
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EXHIBIT “B”
EXHIBIT “B”
SITE LEGAL DESCRIPTION
All of that certain real property conveyed by Grant Deed dated January 20, 2010, recorded as Document No. 2010- 0046920, records of Riverside County, located in the City of Palm Springs, County of Riverside, State of California, identified by Assessor’s Parcel Number 513-151-037, and more particularly described as:
Lot 9 of Tract No. 31877 in the City of Palm Springs, County of Riverside, State of California as shown on said Tract Map filed in Book 364, Pages 66 through 69, inclusive, of Miscellaneous Maps and as amended by a Certificate of Correction recorded May 8, 2008, as Instrument No. 2008- 0244658 of Official Records, in the Office of the County Recorder of said County.
All of that certain real property conveyed by Trustee’s Deed Upon Sale dated March 9, 2010, recorded as Document No. 2010-0126950, records of Riverside County, located in the City of Palm Springs, County of Riverside, State of California, identified by Assessor’s Parcel Numbers 513-151-041, 513-151-042, 513-151-043, and 513-151-044, and more particularly described as:
Lots 7, 8, 9, 10, 11, 12, 13, 14, 15, of Block 16, of Palm Springs, in the City of Palm Springs, County of Riverside, State of California, as shown by Map on file in Book 9, Page 432, of San Diego County records.
Lots 20, 21, 22, 23, 24, and the south 10 feet of Lot 1, and the south 10.00 feet of the west half of Lot 2, together with that portion of the east 8.00 feet of Cahuilla Road (formerly known as Orange Street), adjoining the above described land on the west, as vacated and closed to public use by order recorded March 27, 1926, in Book 665, Page 532 of Deeds, records of Riverside County, California.
All of that certain real property conveyed by Grant Deed dated September 5, 2017, recorded as Document No. 2017- 0409254, records of Riverside County, located in the City of Palm Springs, County of Riverside, State of California, identified by Assessor’s Parcel Number 513-151-039, and more particularly described as:
Easterly rectangular ½ of Lot 2; all of Lots 3 and 4 and the Westerly 8.55 feet of Lot 5, all in Block 16, of Palm Springs, in the City of Palm Springs, County of Riverside, State of California, as shown by Map on file in Book 9,