ordinance, no more than 26 contracts for vacation rental use of a property shall be allowed or provided in any calendar year. For existing permittees, nNo more than 32 thirty six (36) contracts for vacation rental use of a property shall be allowed or provided in any calendar year; however, up to four additional contracts shall be allowed or provided for the third quarter of a calendar year so long as the entire term of each such contract occurs during such third quarter, subject to reduction in such numbers on and after January 1, 2026. A contract includes any occupancy of a property subject to a vacation rental registration certificate by persons other than the owner when the owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document. For any property for which a Junior vacation rental registration certificate has been issued, no more than six contracts for vacation rental use of that property shall be allowed or provided in any calendar year.
(1) [Intentionally left blank].
(2) [Intentionally left blank].
(3) For Existing Permittees, the 32 + four contract limitation above shall be reduced to 26, on January 1, 2026. For new permittees, on and after the effective date of this ordinance, no more than 26 contracts for vacation rental use of a property shall be allowed or provided in any calendar year.
(4) Notwithstanding the restrictions imposed by this subparagraph, the owner at the time an application or renewal is submitted can designate and file with the enforcement official the names of up to five persons who may occupy the vacation rental unit at no cost and without requiring the presence of the owner on the premises of the vacation rental. Each such occupancy shall fully comply with all other provisions of this chapter, including, without limitation, the requirement to submit a contract summary prior to each applicable occupancy, as set forth in Section 5.25.070(h). *** ”
SECTION 2. Section 5.25.030 (Definitions) of the Palm Springs Municipal Code is hereby amended to delete in their entirety the definitions of “Existing Permittee” and “New Permittee”.
SECTION 3. This Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) and 15060(c)(3) of the State Guidelines, because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a "project," as that term is defined in Section 15378 of the State Guidelines. In addition, the City Council also determines this Ordinance consists of regulations intended to ensure that the incidental short term rental use of residential property remains an ancillary and secondary use of residential property in the City and thereby preserve the residential character of the City's single family and multi-family neighborhoods as identified in the Item 3A - Page 9
55575.18195\44301915.1
Ordinance No. _____
City's adopted General Plan, and its concomitant Environmental Impact Report. Thus, to the extent there is any environmental impact from the adoption of this Ordinance, the City Council finds that the Environmental Impact Report for the adopted General Plan is the controlling environmental document.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, 2025.
Ron deHarte
Mayor
ATTEST:
BRENDA PREE, MMC
CITY CLERK
Item 3A - Page 10
55575.18195\44301915.1
Ordinance No. _____
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on _________ and adopted at a regular meeting of the City Council held on __________ by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.
BRENDA PREE, MMC
CITY CLERK
Item 3A - Page 11
ATTACHMENT B
Item 3A - Page 12
VACATION RENTAL ORDINANCE 2075 - SPECIFIC ORDINANCE
CHANGES and OTHER MODIFICATIONS:
VRON has 13 modifications to the existing Ordinance that we would like Council to consider. They are all relatively straightforward and will make for more efficiency in permit holders managing their homes in compliance with the STR ordinance regulations.
We’ve grouped the following four items together as they all reference the same topic.
VRON ref #57 - Existing Ordinance PSMC 5.25.030 Definitions:
"Local contact person" means the Owner, a local property manager, or agent of the Owner, who is available twenty-four hours per day, seven days per week for the purpose of responding in-person within thirty (30) minutes to complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental, or any agent of the Owner authorized by the Owner to take remedial action and who responds to any violation of this code.
VRON ref #151 + 152 - Existing Ordinance PSMC 5.25.070 (e) Operational Requirements and Standard Conditions:
(e) (1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and (e) (2) responding in-person within thirty (30) minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental.
VRON ref #167 - Existing Ordinance PSMC 5.25.070 (i) Operational Requirements and Standard Conditions:
(i) The Enforcement Official shall be the first responder and have primary responsibility or the enforcement of this Chapter. In the event the Enforcement Official notifies the Owner, or his or her agent, that the responsible person, including any occupant and/or guest of the Vacation Rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the Municipal Code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests, and evict one or more of the guests when requested by the City Item 3A - Page 13
2 Enforcement Official. For the purpose of this Subsection and Subsection (j) below, the phrase "in a timely and appropriate manner'' shall mean inperson contact within thirty (30) minutes for any call from the Enforcement Official.
Proposed VRON Update:
Response time definition is inconsistent throughout the Ordinance and could be more explicitly defined. For example, in Section
5.25.070(e) which states:
(1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and (2) responding in-person within thirty (30) minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental.
Revise 5.25.070(e) to:
(1) responding by telephone within fifteen (15) minutes of complaints from or through the Hotline and after this period has elapsed (2) responding in-person within thirty (30) minutes to any failure to address the complaint of additional or successive complaints regarding the condition, operation, or conduct of occupants of the Vacation Rental.
Repeat this suggested revision to 5.25.030 and 5.25.070(i) Item 3A - Page 14
3 VRON ref #143 - Existing Ordinance PSMC 5.25.070 Operational Requirements and Standard Conditions (c):
No more than one (1) automobile per bedroom shall be allowed for each Vacation Rental.
Proposed VRON Update:
• 2 additional vehicles allowed during daytime occupancy hours (10AM-10PM) for visitors or services.
• No strike against owner’s permit for any citation issued to guest for parking violation.
• VR owner vehicle(s) stored on property do not count toward total vehicle count.
Item 3A - Page 15
4 VRON ref #162 - Existing Ordinance PSMC 5.25.070 Operational Requirements and Standard Conditions (h):
(h) (6) The responsible person provides a list of all guests’ vehicles, including license plate numbers.
Proposed VRON Update:
Responsible person frequently rents a car or does not have access to this information for fellow guests. Additionally, this information is of no use to Code Compliance. VRON would like this to be removed.
Item 3A - Page 16
5 VRON ref #163 - Existing Ordinance PSMC 5.25.070 Operational Requirements and Standard Conditions (h):
(h) (6) Each Contract shall be maintained by the Owner or the Owner's Agent for a minimum of four (4) years and shall be readily available for inspection upon request of the Enforcement Official.
Proposed VRON Update:
Owner must retain a copy of guest’s ID for a minimum of 24 hours after the end of guest’s Rental Term. (FYI: Hotels are not required to retain guest IDs beyond their stay.)
Item 3A - Page 17
6 VRON ref #170 - Existing Ordinance PSMC 5.25.070 Operational Requirements and Standard Conditions (k):
(k) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The Owner of the Vacation Rental unit shall use reasonably prudent business practices to ensure compliance with all the provisions of Chapter
6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide "walk-in service" or as may otherwise be approved by the Enforcement Official.
Proposed VRON Update:
No strike against owner’s permit for any citation issued for trash violation. All permitted VR homes pay for “walk-in service”.
Item 3A - Page 18
7 VRON ref #171 - Existing Ordinance PSMC 5.25.070 Operational Requirements and Standard Conditions:
(I) All home repairs (external and internal), garden and yard maintenance, and pool cleaning and maintenance shall not be performed between the hours of 5:00 pm on Friday through 8:00 am on Monday, except in the case of an emergency or the occurrence of an unexpected event that reasonable warrants a timely or immediate response.
Proposed VRON Update:
Permitted vacation rentals adhere to same maintenance and repair requirements defined in City Ordinances for all Palm Springs residences.
Item 3A - Page 19
8 VRON ref #174 - Existing Ordinance PSMC 5.25.070 Operational Requirements and Standard Conditions (m):
(m) The Owner shall secure the signature of the Responsible Party and all adult guests to a statement of rules and regulations prepared by the City Manager prior to or within twenty-four (24) hours of the arrival of the guest at the Vacation Rental.
Proposed VRON Update:
Only the Responsible Party is required to sign the Statement of Rules and Regulations.
Item 3A - Page 20
9 VRON ref #175 - Existing Ordinance 5.25.070 Operational Requirements and Standard Conditions (n):
(n) The Owner of the Vacation Rental unit shall post a copy of the Registration Certificate and a copy of the conditions set forth in this Section, including all rules and regulations applicable to the use of the property as a Vacation Rental, on the inside of the front door and the primary door to the backyard or in a conspicuous location near each such door.
Proposed VRON Update:
VRON would like to remove all of these requirements. Compliance already has Registration Certificate information and primary guest has been given the Good Neighbor Brochure and the Rules & Regs document.
Item 3A - Page 21
10 VRON ref #234 - Existing Ordinance 5.25.090 Violations + PSMC Section 93.23.16C
Upon a determination by the City Manager of a third qualified violation within any twenty-four (24) month period regarding the vacation rental of an Estate House, the land use permit for such vacation rental shall be subject to revocation or modification by the Planning Commission at a noticed public hearing to be held in the manner provided for in Section 94.09.00 of this Code.
Proposed VRON Update:
There is conclusive data showing Estate Homes receive
proportionally less citations than non-Estate Homes. VRON would like to see a strike duration of 12 months for Estate Homes instead of the existing 24 months to conform with non-Estate Homes.
Item 3A - Page 22
11 VRON ref #260 - Existing Ordinance 5.25.090 Violations Referencing PSMC Section 2.50.080
A person aggrieved by an action taken by an administrative officer of the city as provided in Section 2.50.020 may appeal the action to the board by filing with the city clerk a written notice of appeal within ten days of the action.
Proposed VRON Update:
VRON has observed at multiple Appeals Board hearings that owners are receiving notification close to or even after the 10 day period, not allowing them time to complete due diligence including a PRA to determine what was documented by code enforcement. VRON is requesting that the appeal time frame be changed to 30 days.
Item 3A - Page 23
12 OTHER MODIFICATIONS:
Administrative Regulations:
Compile all existing administrative regulations into the Ordinance.
Administrative Appeals Board (AAB) Discretion:
The AAB currently has no discretion when an Agency/Owner’s Representative is negligent. Over the past few years, there have been several use cases where a penalty to the agent/owner’s rep would have been appropriate. Here are two such cases:
1. VR Homeowner receives a lifetime ban due to Agent/Owner’s Representative advertising/renting property prior to receiving confirmation of an active VR permit.
2. VR Homeowner’s permit is suspended for 2 years after receiving three strikes due to Agent/Owner’s Representative’s failure to evict guests after the first citation. (Example: music citation is issued to the guest on Friday night but Agent does not evict; the following day, two more citations are issued and the Owner’s permit is suspended for 2 years.) VRON would like to recommend that the AAB be given latitude to consider these types of situations. Rather than uphold a lifetime ban or 2 year suspension, the owner is allowed to maintain their permit as long as they take action on recommended changes by the AAB such as changing Agency/Owner Representation. Additionally, the corresponding financial fine for such citations should be directed to the Agency/Owner’s Representative rather than the VR Homeowner.
Emergency Preparedness:
Consider a modification to the Ordinance that would allow for accommodating evacuees during a time of declared emergencies or evacuations where bookings for those affected would not count towards contract limits.
Item 3A - Page 24
ATTACHMENT C
Item 3A - Page 25
1 City of Palm Springs Vacation Rental Administrative Regulations Date Title Purpose Section Staff Recommendation
Dec-2018
Converting Property Certificates for
Apartment Properties re R1
Standards
For the purpose of interpreting and carrying
out requirement associated with Specific
Prohibitions PSMC 5.25.075 5.25.075 Remove
Oct-2018
Authority of the issuance of
Administrative Citations
For the purpose of updating the issuance of
certain administrative citations to Vacation
Rentals owners, owners agents, dated 2014,
and address Homeshare Owners regarding
these citations 5.25.090 Incorporate
Aug-2018
Vacation Rental and Homeshare
Non-Refundable Fees and Charges
To clarify compliance with respect to fees
due and paid under the City's Vacation
Rental and Homeshare program 5.25.060(b) Incorporate
Aug-2018 Business Entities
Defers enforcement of the requirement of
PSMC 5.25.085 for business entities to
transfer each vacation rental ownership to a
natural person by January 1, 2019 or cease
operating as a Vacation Rental 5.25.085 Remove
Sep-2018
Estate Planning Entities Relating to
Vacation Rental and Homeshare
Registration Certificate
Requirements
Clarification when title is held by a legal
entity established by a natural person for
estate or tax planning services 5.25.040(b) Incorporate Mar-2018 Homesharing Authorization
Clarified for the purpose of interpreting and
carrying out requirements associated with
Homesharing and Homesharing interests 5.25.078 Incorporate Mar-2018
No Covenants or Other Deed
Restrictions on Vacation Rental or
Homeshare Properties
Requiring written acknowledgement that
there are no covenants or other deed
restrictions on the property that prohibit or
limit the use of the property as a Vacation
Rental or Homeshare 5.25.060(a)(12) Incorporate
Sep-2017
Displaying of VR City ID Number on
Advertising
The Registration Certificate number (City ID)
satisfies advertisement requirements 5.25.040(f) Incorporate Item 3A - Page 26
2 Date Title Purpose Section Staff Recommendation
Aug-2017
Violation Count for Purposes of
Suspending a Vacation Rental
Certificate
Clarified and facilitated compliance for the
purpose of carrying out enforcement
procedures with respect to violations and
suspensions of the Vacation Rental
Certificate for 2-years 5.25.090(b) Remove
Jul-2017 Operating a Vacation Rental
Clarification for the purpose of
interpretation of advertisement and
operation of a Vacation Rental and
Homeshare interest 5.25.040(a) Incorporate
Sep-2021
In-Person meet with Responsible
Party at the Vacation Rental
Clarified that "in-person" included live
digital video conference and "signature"
must be certificate based digital signature 5.25.070(m) Incorporate Jun-2022
Real Estate Disclosures regarding
Vacation Rentals/Homeshares
within the City of Palm Springs
Clarified to facilitate compliance for the
purpose of notifying new homeowners that
operation of a Vacation Rental or
homeshare interest without a Certificate is
prohibited by completing a real estate
disclosure 5.25.040(a) Incorporate
Oct-2023
Operational Requirements and
Standard Conditions - Refuse
Service at a registered
Homesharing property ("Walk-in"
service)
Clarifies that Homsharing properties can
request to not participate in the "walk-in
service" 5.25.070(k) Incorporate
Oct-2023
Compliance with provisions of
Chapter 5.25 - Vacation
Rentals/Contract Summaries for
"Friends and Family" Stays
clarifies that such stay by one or more
individuals listed on a previously filed
"Friends and Family" list shall not be
counted toward the annual limits on the
number of stays as set forth in PSMC
5.25.070(b). 5.25.070(b) Incorporate
Oct-2023
Operation of a Homeshare Interest
in Violation of PSMC Chapter 5.25,
including without a Registration
Certificate
This administrative regulation clarifies
enforcement penalties, so that penalties for
operating a Homeshare without a
Registration Certificate will be the same as
operating a Vacation Rental without a
Registration Certificate. 5.25.090(c) incorporate
Item 3A - Page 27
ATTACHMENT D
Item 3A - Page 28
Item 3A - Page 29
ADMINISTRATIVE APPEALS BOARD STAFF REPORT
DATE: June 16, 2025
SUBJECT: VACATION RENTAL ORDINANCE UPDATES RECOMMENDED BY THE ADMINISTRATIVE APPEALS ADHOC SUBCOMMITTEE.
FROM: AdHoc Subcommittee
BACKGROUND:
Recent cases where out of town owners of a vacation rental property had assigned responsibility for licensing and management of their short-term vacation rental to a property management company raised some issues, and this sub-committee was asked to explore possible ordinance changes for board approval and subsequent presentation to Council. This discussion also prompted a look at the entire administration process, and we'd like to visit that first.
RECOMMENDATION:
1 . Review and discuss the vacation rental ordinance updates presented by the Administrative Appeals Board Ad Hoc Subcommittee; and,
2. Recommend that the City Council consider the approval of the vacation rental ordinance updates recommended by the Administrative Appeals Board Ad Hoc Subcommittee.
BOARD ANALYSIS:
ADMINISTRATIVE PROCESS
Over the previous two-year period, .05% of cases heard were overturned (2 of 35 cases).
While we're not suggesting the cases upheld were not valid, it does prompt questions about how well the community understands the ordinances and how they are administered, especially considering the fee one pays to appeal a case. As a result, the following process enhancements are put up for discussion for possible recommendation to Council in order to ensure prospective appellants are more aware.
We recommend the following approaches:
1. Ask escrow & title companies to add a document to the buyers closing package titled "WHAT TO DO IF YOU ARE PLANNING ON RENTING YOUR PROPERTY" the document will list the two types of rentals; 1- long term 28 nights or more with Item 8 - Page 1
Item 3A - Page 30
Administrative Appeals Board Staff Report
June 16, 2025 -- Page 2
no certificate required, 2- short term less than 28 nights requires a short term rental certificate - for more information and requirements on applying for a short term certificate go to the city's website at:
https://www.palmspringsca.gov/government/departments/special-programcompliance/vacation-rentals/applying-for-a-vr-certificate . Also, the document will recommend that the buyer check with their local HOA to see what type of rentals are allowed: (Long or Short)
2. The city of Palm Springs will do an outreach program at the local Realtor's MLS meetings - titled "Short Term Rental Requirements" how to be a better agent to your investors who are thinking of purchasing a property as a rental. There will be mention of the two types of rentals and their requirements; long term 28 nights or more no rental certificate required or short term less than 28 nights requiring a short term vacation rental certificate for more click on the following link https://www.palmspringsca.gov/government/departments/special-programcompliance/vacation-rentals/applying-for-a-vr-certificate
3. Every quarter the city conducts a public announcement regarding "IS YOUR SHORT-TERM RENTAL PROPERTY LEGAL". Suggestions for handling announcements:
i. Newspaper ads that explain how to register your property with the city and the requirements for STRs, i.e., paying TOT taxes, submitting a contract summary prior to any guest checking into the property. Invite the reader to visit the city's website ii. TV Ad
iii. Seminars held at PS library or City Hall.
BENEFITS TO PROPERTY OWNERS WITH NO VIOLATIONS
We propose providing a benefit to homeowner's who follow the rules and have not had a violation.
In 2026, properties that have not had a citation in 2025 will remain at 36 maximum contracts. The same would happen in each subsequent year.
RENTAL PLATFORMS & PROPERTY MANAGEMENT COMPANY
ENHANCEMENTS
In addition to property owners, we recommend establishing rules, standards and guidelines for rental platform sites (AirBNB, VRBO, etc), and property management companies (the "Company").
The city of Palm Springs is currently working with the Attorney to have a "online advertisement" ordinance so we can force the listing requirements of a permit ID for any and all platforms, not just specific to vacation rentals. Other municipalities, such as LaQuinta are currently holding the platform responsible to do this.
Item 8 - Page 2
Item 3A - Page 31
Administrative Appeals Board Staff Report
June 16, 2025 -- Page 3
For individual property management companies, we recommend:
1. Have property management company that manage units in Palm Springs register with the City and agree to follow the City's Short Term Vacation Rental Ordinance (the "ordinance"). This would exclude internet companies who are only involved in advertising and booking clients based upon the direction of the Owner/Company.
2. When an Owner registers or renews the Unit's license, any Company involved in the rental must be identified and the type of management offered. The following terms will define how rentals are being managed:
o Owner Management - Owner takes full responsibility for registering the Unit with the City and for the managing and renting of the property. o Agent Management - Owner assigns the responsibility for managing all or part of the Unit to a Company.
For those Units designated as Agent Management category, the following processes would apply:
1. Require any Company before placing advertisements for a short-term rental ensure they obtain a copy of the short-term rental certificate from the property owner.
2. If a Company advertises a Unit that is not licensed, or in full compliance, the penalty is split between the Company and the Owner. The first violation would be a $2,500 fine to the owner (in addition to lifetime suspension from operating a short-term rental). The Company would also be fined $2,500. The second violation on a property managed by the same Company will be $5,000 and the third and each subsequent violation will be $10,000 each occurrence.
Attachments:
A. Chapter 5.25 - Vacation Rentals - Proposed Code Amendments Item 8 - Page 3
Item 3A - Page 32
ATTACHMENT A
Item 8 - Page 4
Item 3A - Page 33
CHAPTER 5 .25
VACATION RENTALS
§ 5.25.010. Title.
This chapter shall be referred to as the "Vacation Rental Ordinance." (Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022;) § 5.25.020. Findings.
The city council finds and determines as follows:
(a) The primary use of single-family and multifamily dwelling units in the city of Palm Springs is the provision of permanent housing for full time and part time residents of the city who live and/or work in the city. Vacation rentals and homesharing are not uses specifically recognized in the city's zoning ordinance, nor are these uses expressly identified as uses permitted in single-family or multifamily zones. Vacation rentals and homesharing are similar in character and use as hotels and other commercial short term uses and can only be permitted in single-family or multifamily zones if such uses are ancillary and secondary to the residential use of property. This chapter confirms vacation rentals and homesharing are only allowed as ancillary and secondary uses of residential property in the city. (b) The purpose of this chapter is to establish a regulatory program for vacation rental and homesharing lodging, with appropriate standards that regulate vacation rental of residential property, minimize adverse effects of vacation rental uses on surrounding residential neighborhoods, ensure that vacation rentals and homesharing are ancillary and secondary uses of residential property consistent with the provisions of the city's zoning ordinance, preserve the character of neighborhoods in which vacation rental and homesharing uses occur, and provide an administrative procedure to preserve existing visitor serving opportunities and increase and enhance public access to areas of the city and other visitor destinations.
(c) Limiting vacation rental and homesharing lodging to single-family dwelling units subject to the regulations provided in this chapter and prohibiting vacation rental and homesharing lodging in apartments will safeguard, preserve, and protect residential housing stock in the city.
( d) The adoption of a comprehensive code to regulate issuance of, and attach conditions to, registration certificates for vacation rental and homesharing lodging within single-family residential neighborhoods and the related use of residential property preserves the public health, safety, and welfare. This chapter provides a permitting process and imposes operational requirements consistent with the ancillary and secondary status of vacation rentals and homesharing, for the purpose of minimizing the potential adverse impacts of transient uses on residential neighborhoods. A vacation rental registration certificate is a privilege; not a right. Furthermore, vacation rental registration certificates may be revoked or not renewed based on non-compliance with the requirements of this chapter. 55575.18195\43409096.2
Item 8 - Page 5
Item 3A - Page 34
( e) This chapter is not intended to regulate hotels, motels, inns, time-share units, or nonvacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitation homes. (Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1891 § 1, 2016; Ord. 1902 § 1, 2016; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.030. Definitions.
For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section:
"Apartment" means: (a) a residential unit in a multifamily development of two dwelling units where both dwelling units are rented or leased for occupancy as a residence for individual families, and (b) a residential unit in a multifamily development of three or more dwelling units. "Applicant" means the owner.
"Bedroom" means an area of a vacation rental normally occupied and being heated or cooled by any equipment for human habitation, which is 120 square feet and greater in size, consists of four walls to the ceiling, at least one of which is located along an exterior wall with a window, and contains a built-in closet.
"Business entity" means a corporation, partnership, or other legal entity that is not a natural person or a personal or family trust. In addition, the following shall not be considered a "business entity" under this chapter: any partnership, limited liability partnership, or limited liability company consisting solely of natural persons, the number of whom does not exceed four. "Change of property ownership" means the transfer of title from one person to another. "Cluster or compound" means any two or more vacation rentals that operate on a unified or shared basis where residents of such vacation rentals have exclusive access to more than one vacation rental and/or the facilities of such vacation rentals, including by way of example, a swimming pool, tennis court, or cooking facilities.
"Contract" means an agreement or evidence of any tenancy that allows or provides for the vacation rental of property.
"Daytime occupancy" means the hours between 10:00 a.m. and 10:00 p.m. "Daytime occupants" mean the guests who may occupy a vacation rental during a daytime occupancy.
"Enforcement official" means the city manager, the police chief, the fire marshal, the building official, or one or more of their respective designees. 55575.18195\43409096.2
Item 8 - Page 6
Item 3A - Page 35
"Existing permittee" means a property for which a vacation rental registration certificate has been issued, or for which a complete application has been filed with the city, on or before October 17, 2022.
"Exclusive listing arrangement" means a written agreement between an owner and an agent or representative where the agent or representative has the sole and exclusive right to rent or lease a vacation rental unit to any person and the owner is prohibited from renting or leasing the vacation rental unit except through the owner's agent or representative. "Estate home" means a single family dwelling with five or more bedrooms. "Good cause" for the purposes of denial, suspension, revocation, imposition of conditions, renewal, and reinstatement of a vacation rental registration certificate, means: (1) the applicant, owner, the owner's agent, or the local contact person has failed to comply with any of the terms, conditions, or provisions of this chapter or any relevant provision of this code, state law, or any rule or regulation promulgated thereunder; (2) the applicant, owner, owner's agent, or local contact person has failed to comply with any special conditions that were placed upon the vacation rental registration certificate by the enforcement official; or (3) the vacation rental has been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the vacation rental is located.
"Good neighbor brochure" means a document prepared by the enforcement official that summarizes general rules of conduct, consideration, and respect, including without limitation provisions of the Palm Springs Municipal Code applicable to or expected of guests to the city. "Homeshare interest" means a portion of an owner's home that is subject to homesharing as provided in this chapter.
"Homesharing" means an activity whereby the owner hosts visitors in the owner's home, for compensation, for periods of 28 consecutive days or less, while the owner lives on site and in the home, throughout the visitor's stay.
"Hotline" means the telephonic service operated by or for the city for the purpose of receiving complaints regarding the operation of any vacation rental and the forwarding of such complaints to the appropriate city enforcement officials or, if applicable, the local contact person. For the purposes of this chapter, the term "hotline" also includes any contact in person or by telephone, email, and digital or electronic communication, or correspondence of any kind to and/or from any enforcement official.
"Junior vacation rental registration certificate" means a vacation rental certificate authorizing fewer annual contracts and for which a lower registration fee shall be charged. "Local contact person" means the owner, a local property manager, or agent of the owner, who is available 24 hours per day, seven days per week for the purpose of responding in-person within 30 minutes to complaints regarding the condition, operation, or conduct of occupants of the vacation rental, or any agent of the owner authorized by the owner to take remedial action and who responds to any violation of this code.
55575.18195\43409096.2
Item 8 - Page 7
Item 3A - Page 36
"Neighborhood" means a city-recognized neighborhood, as set forth in Palm Springs Municipal Code Chapter 2.55 (Office of Neighborhoods). For those areas within the city that are not located within a city-recognized neighborhood, the city council may, by ordinance or resolution, determine that, for purposes of this chapter only, such area is contained in a particular city- recognized neighborhood, or the city council may recognize, for purposes of this chapter only, a new neighborhood.
"New permittee" means a property for which a complete application for a vacation rental registration certificate was filed with the city after October 17, 2022. "Owner" means the natural person or persons who is/are the owner of record of the property. The term "owner" also includes a personal or family trust consisting solely of natural persons and the trustees of such trust or the members of any partnership, limited liability partnership, or limited liability company consisting solely of natural persons, the number of whom does not exceed four, so long as the disclosure requirements pursuant to Section 5.25.085 are satisfied. The term "owner" does not include a business entity.
"Property" means a residential legal lot of record on which a vacation rental is located. "Rental term" means the period of time a responsible person rents or leases a vacation rental. to sole
management company" shall not include online travel agencies or internet I latforms, such as Airbnb or Vrbo, that are only involved in advertising vacation rentals and/or booking vacation rental clients at the direction of a ro e owner and do not otherwise la an active role in the management of a vacation rental that is subject to the requirements of this Chapter. corn an to the new or successor o ownershi
entitled "What to Do If You Are Plannin nt does the
following:
(a) -defines the two ypes of rentals as follows:
(])
(2)
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-"Vacation rental" (as defined in this section) means a single-family dwelling, or any portion thereof, utilized for occupancy for dwellinb, lodging, or sleeping pu poses without the owner being present for a period of twen y-eight (28) consecutive days or less, other than ongoing month-tornonth tenancy granted to the same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Section 91.00.10 of this code. The term "vacation rental" is synonymous with "short term rental" and "transient use" and does not include homesharing; and-:- -long term rentals of, twen y-eight (28) consecutive nights or more, with no vacation rental rebistration certificate required for such long-term rentals under this Chapter;
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(b) -provides a link to a Ci y website to access more information and requirements on (c) -recommends that the new or successor owner check with their local HGAhomeowners' association, if any, re
on the property.
es of rentals arc allowed
"Responsible person" means an occupant of a vacation rental who is at least 25 years of age and who shall be legally responsible for compliance of all occupants of the unit and/or their guests with all provisions of this chapter and/or this code.
"Third quarter" means the entire months of July, August, and September in one calendar year. "Vacation rental" means a single-family dwelling, or any portion thereof, utilized for occupancy for dwelling, lodging, or sleeping purposes without the owner being present for a period of 28 consecutive days or less, other than ongoing month-to-month tenancy granted to the same renter for the same unit, occupancy of a time-share basis, or a condominium hotel as defined in Section
91.00.10 of this code. The term "vacation rental" is synonymous with "short term rental" and "transient use" and does not include homesharing.
"Vacation rental registration certificate" or "registration certificate" means the annual permit and/ or a registration for a vacation rental or a homeshare interest issued by the city pursuant to this chapter.
"VR neighborhood percentage" means a percentage derived by dividing the total number of residential dwelling units within a neighborhood that have been issued a vacation rental registration certificate (not counting any junior vacation rental registration certificates) by the total number of residential dwelling units within that neighborhood, and multiplying that quotient by 100.
"VR neighborhood percentage cap" means the maximum VR Neighborhood percentage allowed by the city council in each neighborhood. The VR Neighborhood Percentage Cap is set at 20%.
This VR Neighborhood Percentage Cap may be adjusted by the city council by ordinance or resolution.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1891 § 2, 2016; Ord. 1902 § 2, 2016; Ord. 1918 § 1, 2017; Ord. 1926 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.040. Registration Certificate Required.
(a) The operation of a vacation rental or a homeshare interest without a vacation rental registration certificate is prohibited.
(b) A vacation rental registration certificate shall not be issued to any business entity. A natural person, partnership, limited liability partnership, or limited liability company that does not qualify as a "business entity", or personal or family trust shall not maintain any financial interest in more than one vacation rental. For this purpose, financial interest includes both legal and beneficial ownership as well as any arrangement that provides for receipt of any 55575.18195\43409096.2
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portion of the revenues generated by the vacation rental. For purposes of this section, a person shall be deemed to have a financial interest in any vacation rental that is owned by his or her spouse or registered domestic partner, regardless of the terms of any contractual arrangement, such as any transmutation (i.e., pre or postnuptial) agreement. An owner shall only be issued, and can only maintain, one vacation rental registration certificate at any time.
( c) The provisions of subsection (b) of this section shall not apply to or be enforced against any owner who operates a vacation rental pursuant to a valid vacation rental registration certificate issued prior to January 10, 2017 and shall only apply to each specific vacation rental owned by such owner as of January 10, 2017 and only so long as such owner for each vacation rental complies with the provisions of this code. The purpose of this exception is to afford current owners of vacation rental property a reasonable opportunity to recoup costs reasonably invested for vacation rental use and which may not have been recouped during the period of vacation rental use and which cannot be recouped once the vacation rental use is terminated.
( d) Each owner of a vacation rental who rents, exchanges, trades, gifts, or grants such vacation rental for a period of 28 consecutive days or less shall fully comply with all provisions of this chapter related to the use and occupancy of a vacation rental, and the operational requirements, provided in this chapter. Each rental, exchange, trade, gift, and grant of a stay of less than 28 days shall count as one contract.
( e) No owner of residential property in the city shall rent any homeshare interest for a period of 28 consecutive days or less without a valid rental registration certificate for homesharing pursuant to this chapter for such homesharing interest. (f) A copy of the current registration certificate as issued by the city and the maximum number of guests allowed on the premises shall be displayed in a clear and legible manner in a conspicuous and easily accessible location in the unit and on all advertising related to each vacation rental or homesharing interest, including without limitation, web based advertising, hosting platform, print media, and television. (g) The issuance and or renewal of a registration certificate shall be deemed evidence that the holder of such registration certificate has registered a vacation rental property with the city and that the holder acknowledges the holder's obligation to comply with all provisions of this chapter and the code. The issuance of a registration certificate shall not be construed as bestowing or granting any vested right or entitlement. (Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.045. Caps on Certificates based on Neighborhood.
The city shall not issue any new vacation rental registration certificate, other than junior vacation rental registration certificates, in any neighborhood in which the VR Neighborhood Percentage Cap has been exceeded or would, with the issuance of any such certificate, be exceeded. In the event the VR Neighborhood Percentage Cap has been exceeded for a particular neighborhood, and additional complete applications are on file with the city for vacation rental registration certificates 55575.18195\43409096.2
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within that neighborhood, if and when the VR Neighborhood Percentage falls below the applicable VR Neighborhood Percentage Cap for that neighborhood, any additional certificates for that neighborhood shall be issued in order of the date on which complete applications were filed with the city (i.e., on a "first in time, first in right" basis). (Ord. 2075 § 1, 2022)
§ 5.25.050. Agency.
(a) An owner may retain an agent with an exclusive listing arrangement or a representative to assist in the compliance with the requirements of this chapter, including, without limitation, the filing of a complete vacation rental registration the management of the vacation rental unit or units, and compliance with the requirements of this chapter including the collection and payment to the city of all transient occupancy taxes due and payable on the vacation rental unit. The owner and any such agent or representative of owner must have the authority to evict any tenant, resident, or guest permitted to reside at the vacation rental for violation of any provision of this chapter or regulation thereof. Except as provided in subsection (b) of this section and notwithstanding any agency relationships between an owner and an agent or representative, the owner of the vacation rental unit or units shall execute all applications and documentary requirements as provided in this chapter and shall remain responsible for compliance with the provisions of this chapter. The failure of an agent to comply with this chapter shall not relieve the owner of the owner's obligations under the provisions of this chapter.
(b) In the event an owner enters into an exclusive listing arrangement, the vacation rental registration certificate may be secured, and the transient occupancy registration certificate requirements provided in this chapter may be performed, by the agent or representative and not by the owner; however, the agent or representative shall separately account all revenues and costs on a per property basis, including without limitation transient occupancy taxes and the gross rent amounts used to calculate such taxes. (Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.060. Vacation Rental Registration Requirements.
(a) Prior to use of a property as a vacation rental, and annually thereafter, the applicant shall register the property as a vacation rental with the city on a registration form furnished by or acceptable to the enforcement official and signed by the applicant under penalty of perjury. Each application shall contain the following information:
(1) The name, address, and telephone number of the owner of the unit for which the vacation rental registration certificate is to be issued. The name, address and telephone numbers of any other natural persons, limited liability companies or personal or family trusts that hold any financial interests in the vacation rental as well as copies of legal documents creating such financial interests. (2) The name, address, and telephone number of the exclusive listing agent, if any, of the owner of the unit.
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(3) The name, address, and 24-hour telephone number of the local contact person and verification that the local contact person can respond in-person to the site of the vacation rental within 30 minutes. The local contact person may only use the address of the vacation rental if the local contact person will be present at the unit for the duration of each contract.
(4) The address of the residential property proposed to be used as a vacation rental. (5) The number of bedrooms and the applicable overnight and daytime occupancy limit of the unit consistent with the provisions of Section 5.25.070(c). ( 6) Evidence of a valid transient occupancy registration certificate issued by the city for the vacation rental unit.
(7) Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a vacation rental.
(8) Executed indemnification and hold harmless agreement in a form approved by the city attorney, agreeing to indemnify, save, protect, hold harmless, and defend the city of Palm Springs, the city council of the city of Palm Springs, individually and collectively, and the city of Palm Springs representatives, officers, officials, employees, agents, and volunteers from any and all claims, demands, damages, fines, obligations, suits, judgments, penalties, causes of action, losses, liabilities, or costs at any time received, incurred, or accrued as a result of, or arising out of owner's actions or inaction in the operation, occupancy, use, and/or maintenance of the property.
(9) Evidence of insurance coverage as required under Section 5.25.070(v) of this chapter.
(10) Completion of building, fire, and safety inspection and completion of any corrections identified by an enforcement official. Such inspections shall include a review of the premises for compliance with the operational requirements of this chapter, including without limitation determining the total number of qualified bedrooms.
(11) Written acknowledgement in a form approved by the enforcement official that there are no covenants or other deed restrictions on the property that prohibit or limit the use of the property as a vacation rental. The enforcement official may accept a written consent from the governing board of a homeowners' association with jurisdiction over the property in satisfaction of this requirement. (12) Such other information as the enforcement official deems reasonably necessary to administer this chapter.
(b) The registration of a vacation rental shall be accompanied by a fee established by resolution of the city council; provided, however, the fee shall be no greater than necessary to defer the cost incurred by the city in administering the provisions of this chapter. 55575.18195\43409096.2
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( c) A vacation rental registration certificate shall be denied if a registration certificate for the same unit and issued to the same owner has previously been revoked pursuant to Section The denial of a registration certificate for any reason may be appealed in accordance with the provisions of Chapter 2.50 of the Municipal Code. ( d) Upon change of property ownership, the registration certificate shall expire and the property shall not be used as a vacation rental until the new or successor owner is issued a vacation registration certificate for the property. The provisions of Section 5.25.040(b) shall be applicable to any such new or successor owner. In the event of a change in agent or the occurrence of any other material fact set forth in the annual registration, a new registration for a vacation rental shall be required to continue operation of the vacation rental and within seven days of said change the owner or his or her exclusive listing agent shall submit the required registration and fee.
( e) The owner or his or her exclusive listing agent shall cancel the vacation rental registration certificate within seven days of the date the vacation rental is sold or otherwise disposed of or after an event that results in the unit no longer in use as a vacation rental. (f) Each applicant for a registration certificate, including, without limitation, the owner and the owner's agent and/or representative, shall annually attend and/or participate in an educational program devised and administered by the city manager for the purpose of training applicants for vacation rental registration certificates, or renewals thereof, on their respective roles and responsibilities in the successful administration and compliance with the city's vacation rental program. Each applicant shall annually take a test prepared and administered by the city manager regarding each applicant's role and responsibilities in the vacation rental program and registration certificates will not be issued or renewed until the applicant has successfully passed such test.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.070. Operational Requirements and Standard Conditions. (a) The owner shall use reasonably prudent property ownership/management practices to ensure that the vacation rental unit complies with all applicable codes regarding fire, building and safety, health and safety, and all other relevant laws. (b) For new permittees, on and after the effective date of this ordinance, no more than 26 contracts for vacation rental use of a property shall be allowed or provided in any calendar year. For existing permittees, no more than 32 contracts for vacation rental use of a property shall be allowed or provided in any calendar year; however, up to four additional contracts shall be allowed or provided for the third quarter of a calendar year so long as the entire term of each such contract occurs during such third quarter, subject to reduction in such numbers on and after January 1, 2026. A contract includes any occupancy of a property subject to a vacation rental registration certificate by persons other than the owner when the owner is not present during such occupancy, regardless of whether compensation is paid for such occupancy or whether occupancy is evidenced in an agreement or document.
For any property for which a Junior vacation rental registration eeJ"l:Hl€al'~Iill~~ has 55575.18195\43409096.2
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been issued, no more than six contracts for vacation rental use of that property shall be allowed or provided in any calendar year.
( 1) [Intentionally left blank].
(2) [Intentionally left blank].
(3) For Existing Perrnittees, the 32 + four contract limitation above shall be reduced to 26, on January 1, 2026. For new perrnittees, on and after the effective date of this ordinance, no more than 26 contracts for vacation rental use of a property shall be allowed or provided in any calendar year.
(4) Notwithstanding the restrictions imposed by this subparagraph, the owner at the time an application or renewal is submitted can designate and file with the enforcement official the names ofup to five persons who may occupy the vacation rental unit at no cost and without requiring the presence of the owner on the premises of the vacation rental. Each such occupancy shall fully comply with all other provisions of this chapter, including, without limitation, the requirement to submit a contract summary prior to each applicable occupancy, as set forth in Section 5.25.070(h).
( c) The owner shall limit overnight occupancy of the vacation rental unit to a specific number of occupants, with the maximum number of occupants as no more than two persons per bedroom within each vacation rental unit and a maximum of no more than eight persons total within the vacation rental unit, except that owner may allow up to two minor children, age 12 or under, to occupy the vacation rental in addition to the maximum number of occupants otherwise provided in this subsection. The number of bedrooms in a vacation rental shall be verified by the enforcement official using county assessor and/or city building records and/ or a physical inspection of the premises, prior to the issuance of a registration certificate. The owner may also allow up to four daytime occupants in addition to the total number of guests allowed for overnight occupancy pursuant to this subsection.
No more than one automobile per bedroom shall be allowed for each vacation rental.
Advertising and/or renting one or more vacation rentals as part of a cluster or compound is prohibited.
( d) The owner of an estate home shall be exempt from the limitations of subsection ( c) of this section for up to two additional bedrooms for housing to accommodate no more than two persons for each additional bedroom approved pursuant to the exemption up to a maximum of 12 guests and up to two minors age 12 and under.
( e) During the rental term each vacation rental unit is rented, the owner, his or her agent, and/or the local contact person designated by the owner, after being contacted by the enforcement official, shall be available 24 hours per day, seven days per week, for the purpose of: (1) responding by telephone within 15 minutes of complaints from or through the hotline; and (2) responding in-person within 30 minutes to any additional or successive complaints regarding the condition, operation, or conduct of occupants of the vacation rental. 55575.18195\43409096.2
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(f) The owner shall use reasonably prudent property ownership/management practices to ensure that the occupants and/or guests of the vacation rental unit do not create unreasonable noise disturbances, engage in disorderly conduct, or violate provisions of the municipal code or any state law.
(g) Notwithstanding the provisions of Section 11.74.043, any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall be conducted within a fully enclosed vacation rental unit and shall not be audible at the property line of the vacation rental. (h) Prior to occupancy pursuant to each separate occasion of rental of a vacation rental, the owner or the owner's agent or representative shall enter into a written contract with a responsible person where: (1) the responsible person will provide the responsible person's name, age, address, and a copy of a government issued identification; (2) establishes and sets out the terms and conditions of the contract, including without limitation, occupancy limits, noise prohibitions, and vehicle parking requirements; (3) requires the responsible person to acknowledge and agree that he or she is legally responsible for compliance of all occupants of the vacation rental or their guests with all provisions of this chapter and/or the municipal code; (4) the owner or the owner's agent provides a copy of the "Good Neighbor Brochure" to the responsible person; (5) the responsible person provides a list of all guests by name; and the responsible person provides a list of all guests' vehicles, including license plate numbers. Each contract shall be maintained by the owner or the owner's agent for a minimum of four years and shall be readily available for inspection upon request of the enforcement official. A summary or abstract of the written contract, in a form approved by the enforcement official, shall be filed with the enforcement official prior to each applicable occupancy, in a manner approved by the enforcement official, and shall be posted in a conspicuous location on the vacation rental property and shall be made available on site at the request of an enforcement official. (i) The enforcement official shall be the first responder and have primary responsibility for the enforcement of this chapter. In the event the enforcement official notifies the owner, or his or her agent, the owner, or his or her agent, that the responsible person, including any occupant and/or guest of the vacation rental unit, has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of provisions of the municipal code or any state law, shall promptly respond in a timely and appropriate manner to prevent a recurrence of such conduct by those occupants or guests, and evict one or more of the guests when requested by the enforcement official. For the purpose of this subsection and subsection G) below, the phrase "in a timely and appropriate manner" shall mean in person contact within 30 minutes for any call from the enforcement official. (j) Failure of the owner or his or her agent to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the vacation rental in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this chapter.
It is not intended that an owner, agent, or local contact person act as a peace officer or place himself or herself in an at-risk situation.
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(k) Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the collectors and between the hours of five a.m. and eight p.m. on scheduled trash collection days. The owner of the vacation rental unit shall use reasonably prudent property ownership/management practices to ensure compliance with all the provisions of Chapter 6.04 of the Municipal Code (Waste Disposal and Diversion), and shall provide "walk-in service" or as may otherwise be approved by the enforcement official.
(1) All home repairs ( external and internal), garden and yard maintenance, and pool cleaning and maintenance shall not be performed between the hours of 5:00 p.m. on Friday through 8:00a.m. on Monday, except in the case of an emergency or the occurrence of an unexpected event that reasonably warrants a timely or immediate response. Repairs and maintenance shall not be scheduled in advance to occur during the days and time specified in this subsection.
(m) The owner or the owner's agent or representative shall meet the responsible party in person at the vacation rental or the owner's or owner's agent's office prior to, or within 24 hours of, the commencement of the occupancy and verbally explain and describe all rules and regulations applicable to the use of the property as a vacation rental and the responsibilities of the responsible party to the neighbors and the City as well as the owner. The owner shall secure the signature of the responsible party and all adult guests to a statement of rules and regulations prepared by the city manager prior to or within 24 hours of the arrival of the guest at the vacation rental.
(n) The owner of the vacation rental unit shall post a copy of the registration certificate and a copy of the conditions set forth in this section, including all rules and regulations applicable to the use of the property as a vacation rental, on the inside of the front door and the primary door to the backyard or in a conspicuous location near each such door. ( o) The owner shall provide each occupant of a vacation rental with the following information prior to occupancy of the unit and/or post such information in a conspicuous place within the unit:
(1) The name of the managing agency, agent, rental manager, local contact person, or owner of the unit, and a telephone number at which that party may be reached on a twenty- four-hour basis;
(2) The maximum number of occupants permitted to stay in the unit; (3) The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property; ( 4) Notification that any radio receiver, musical instrument, phonograph, loudspeaker, sound amplifier, or any machine or device for the producing or reproducing of any sound shall only be operated within a fully enclosed vacation rental unit and shall not be audible at the property line of the vacation rental; 55575.18195\43409096.2
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(5) Notification that the occupant may be cited or fined by the city and/or immediately evicted by the owner pursuant to state law, in addition to any other remedies available at law, for creating a disturbance or for violating any provision of this chapter;
(6) Notification that failure to conform to the occupancy requirements of the vacation rental unit is a violation of this chapter;
(7) A copy of this chapter of the Palm Springs Municipal Code, as may be amended from time to time.
(p) The use of a vacation rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property.
(q) The owner shall comply with all provisions of Chapter 3.24 of the Municipal Code concerning transient occupancy taxes, including, but not limited to, submission of a monthly return for each vacation rental in accordance with Section 3.24.080. The monthly return shall be filed each month regardless of whether the vacation rental unit was rented or not during each such month.
(r) The city manager shall have the authority to impose additional standard conditions, applicable to all vacation rental units or identifiable classes of vacation rentals, as necessary, to achieve the objectives of this chapter. A list of all such additional standard conditions shall be maintained and on file in the office of the city clerk and such offices as the city manager designates.
(s) Notwithstanding the provisions of subsection (p) above, upon a determination of good cause, the city manager may impose additional or special standards or requirements for placement or imposition of special conditions or performance standards for owners, owner's agents, local contact persons, and their affected vacation rentals. The standard conditions may be modified by the enforcement official upon request of the owner or his or her agent based on site-specific circumstances for the purpose of allowing reasonable accommodation of a vacation rental. All requests must be in writing and shall identify how the strict application of the standard conditions creates an unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a vacation rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of to the standard conditions shall not further exacerbate an already existing problem. (t) The city manager shall have the authority to establish administrative rules and regulations, which may include, but are not limited to, registration conditions, reporting requirements, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, or insurance requirements, consistent with the provisions of this chapter, for the purpose of implementing, interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this chapter. No person shall fail to comply with any such regulation. A copy of such administrative rules and regulations shall be on file in the office of the city clerk.
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(u) Owner shall procure, maintain, and pay premiums for commercial insurance policies that cover short term rental of property for each vacation rental with minimum limits as may be established by the city manager from time to time.
(v) Owner shall annually secure a building and fire and safety inspection prior to renewal of the vacation registration certificate.
(w) For any vacation rental, including any junior vacation rental, that is also used as an event house, as that term is used in Palm Springs Municipal Code Chapter 5.75, each event shall be counted as a Contract, for purposes of Section 5.25.070's annual caps on the number of contracts, for such property.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.075. Specific Prohibitions.
(a) No person or entity shall offer or provide an apartment, or any portion thereof, for rent for 28 consecutive days or less to any person.
(b) No person or entity shall maintain any advertisement of a vacation rental that is in violation of any provision of this chapter.
( c) No person, including, without limitation, an apartment owner, an apartment manager, or a representative of the apartment owner or manager, shall evict any tenant or otherwise terminate a lease for the purpose of converting an apartment to a vacation rental or in anticipation of converting an apartment to a vacation rental. In addition to any other remedy provided under the Palm Springs Municipal Code, failure to comply with this provision may be asserted as an affirmative defense in an action brought by or on behalf of the apartment owner, apartment manager, or representative to recover possession of the unit.
Any attempt to recover possession of a unit in violation of this chapter shall render the apartment owner, apartment manager, or representative liable to the tenant for actual or punitive damages, including damages for emotional distress, in a civil action for wrongful eviction. The tenant may seek injunctive relief and money damages for wrongful eviction and the prevailing party in an action for wrongful eviction shall recover costs and reasonable attorneys' fees.
( d) The provisions of subsection (a) of this section shall not apply to or be enforced against any person or entity who rents an apartment or portion thereof pursuant to a valid vacation registration certificate issued prior to April 15, 2016 for the period of time between April 15, 2016 through January 1, 2019. The purpose of this deferral of the enforcement of the provisions of this section is for persons or entities issued valid vacation registration certificates prior to April 15, 2016 to be afforded a reasonable opportunity to recoup costs reasonably invested for vacation rental use of apartments and which may not have been recouped during the period of vacation rental use of the apartment and which cannot be recouped once the vacation rental use is terminated.
(e) The provisions of subsection (a) of this section, subsection 5.25.040(b) [limits on number of units], and subsection 5.25.070(b) [limits on number of contracts] shall also not apply 55575.18195\43409096.2
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to any building in which an apartment is located that meets all requirements of an R-1 occupancy under the city's building and fire code and for which such apartment has a valid vacation rental registration certificat issued prior to April 15, 2016.
Ed. Note. Subsection (d) of Section 5.25.075 shall be deemed repealed and no longer in effect as of 12:01 a.m. on January 1, 2019 and all persons and entities shall fully comply with the provisions of Subsection (a) of Section 5.25.075 of this Code. See§ 4 of Ord. 1902 (2016).
(Ord. 1891 § 3, 2016; Ord. 1902 § 3, 2016; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.078. Homesharing Authorization.
(a) Notwithstanding any provision of this chapter to the contrary, homesharing shall be authorized in the city, provided that the owner complies with each of the following requirements:
(1) Obtains and maintains at all times a vacation rental registration certificate for homesharing;
(2) Operates the homesharing interest in compliance with all vacation registration certificate for homesharing conditions, which may be imposed by the Enforcement Official to effectuate the purpose of this chapter;
(3) Collects and remits transient occupancy tax to the city and complies with all city transient occupancy tax requirements as set forth in this code; (4) Takes responsibility for and actively prevents any nuisance activities that may take place as a result of homesharing activities;
(5) Complies with all applicable laws, including all health, safety, building, and fire protections laws;
( 6) Complies with the regulations promulgated pursuant to this chapter. (b) In the event the owner of a homeshare interest does not live on-site, in the home, and is not able to respond within 30 minutes to complaints regarding the condition, operation, or conduct of occupants of the homesharing interest, the property shall be deemed a vacation rental and owner shall be required to fully comply with the provisions of this chapter relating to vacation rentals, including without limitation, securing a vacation rental registration certificat.
(Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
§ 5.25.080. Audit.
Each owner and agent or representative of any owner shall provide the enforcement official with access to each vacation rental and the books, records, documents, papers, tax returns, and bank 55575.18195\43409096.2
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accounts at any time during normal business hours as the enforcement official may determine are necessary or convenient for the purpose of inspection or audit to determine that the objectives and conditions of this chapter are being fulfilled.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.085. Disclosure of Business Entities, Limited Liability Companies, and Personal or Family Trusts.
On or before June 1, 2017, all business entities, limited liability companies, and personal or family trusts owning one or more vacation rentals shall disclose to the enforcement official the names, relevant contact information, and any such other information as may be requested by the enforcement official of each natural person holding the legal, equitable, and/or beneficial interest of each such business entity, limited liability company, or personal or family trust and the address of each vacation rental owned by each such business entity, limited liability company, or personal or family trust. Each business entity that complies with the provisions of this section prior to June 1, 2017, shall, prior to June 1, 2018 transfer each vacation rental to a natural person who can otherwise comply with the provisions of this chapter or cease operating any vacation rental properties owned by the business entity as vacation rentals. Any business entity that fails to comply with the disclosure requirements provided in this subsection, shall cease operating all vacation rental properties owned by the business entity as vacation rentals no later than June 1, 2017. (Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022)
Eve ~ ro e mana ement com an that manages vacation rental unit(s) in the Ci y shall be subject to the following requirements:
(a)
(b)
(c)
The property management company must register with the Ci y, on a form approved by the Ci Mana er or his or her desi nee and acknowled e and a ee to4e abide b the terms of this Chapter.
isters or renews the unit's license the owner
shall apply: (1) "Owner Manage t" me akes full responsibili y for re isterin the unit with the • • •
Units desig ated as subject to "Agent Management" are subject to the following additional requirements:
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(d)
(1) The pro1 e y owner must provide an affidavit executed b the prope y management company that affirms the company's management of the vacation rental and the company's awareness of the requirements of this Chapter. (2) Prior to placing any advertisement(s) for a vacation rental, the prope y management company managing the rental must ensure that it has they- btained a copy of a-valid and current short term vacation rental reg· strati on certificate for the vacation rental from the ro e owner.
(3) If a cGompany advertises a unit that is not licensed, or is not otherwise operated in full compliance with the requirements of this Chapter, the company shall be subject to the fine(s) and penal y(ies) set forth in subsection (c)(2) of Section 5.25.100 of this Chapter.
with an t of this ter or from associated with a
violati uirement a cable to the
§ 5.25.100. Violations.
(a) Any person who violates a provision of this chapter is subject to criminal sanctions and administrative penalties pursuant to Chapters 1.01 and 1.06 of this code and the specific penalties as provided in this chapter. Any person who uses, or allows the use of, residential property in violation of the provisions in this chapter is guilty of a misdemeanor for each day in which such residential property is used, or allowed to be used, in violation of this chapter. An administrative citation issued pursuant to Chapter 1.06 for a first violation shall be $500.00 and each subsequent violation shall be $1,000.00. Each administrative citation for a violation of any provision of this chapter shall be levied or assessed against the owner. (b) Upon the third violation in any twelve month period, the city manager shall suspend the vacation registration certificate for two years. Notwithstanding the preceding sentence, failure by any person who is responsible to remit to the city the city's transient occupancy tax pursuant to Chapter 3.24 following written notice to do so, shall result in a suspension for 12 months of that person's vacation registration certificate for the applicable property. ( c) Any person who operates a vacation rental without a vacation registration certificate, shall be liable to the city for the payment of transient occupancy tax pursuant to the provisions of the Palm Springs Municipal Code Chapter 3.24, including, without limitation, penalties and interest, payment of an administrative fine in the amount of $5,000.00, and permanent ineligibility to operate a vacation rental in the city. In the event the person continues to operate a vacation rental without a vacation registration certificate, the person shall be liable for an administrative fine in the amount of $10,000.00 and any successive violations shall be subject to fines provided in an escalation formula established by the city council by resolution.
55575.18195\43409096.2
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Item 3A - Page 50
(d)
(e)
Any person who advertises a vacation rental without including the vacation registration certificate in any advertising for such vacation rental, or operates a vacation rental without a contract, or without providing the city with a summary or abstract of such contract prior to each applicable occupancy, or without timely tendering full monthly payments of transient occupancy tax, shall pay a fine in the amount of $2,500.00 and the owner's vacation registration certificate shall be suspended for six months for a first offense and shall pay a fine in the amount of $5,000.00 and the owner's vacation registration certificate shall be revoked for a second offense. Any subsequent violations will be subject to the provisions of subsection ( c) of this section.
or advertised without a valid, current vacation registration certificate while under the corn an 's mana ernent shall be liable to the ci for the a rnent of an administrative fine in the amount of 2 500.00 for a first violation 5 000.00 for a second violation and 10 000.00 for an and eve subse uent violation. These fines shall be in addition to the fine(s) and penal y(ies) imposed pursuant to subsection (c) of this section. fe}ffi_The failure of an owner or the owner's agent or representative to comply with an order of any police officer shall result in the revocation of the vacation registration certificate. fB(gl_The appeal and hearing provisions of Chapter 2.50 shall apply to any revocation or suspension of a registration certificate.
fgj.(hLAny person who fails to pay any fee or charge provided in this chapter within the time required, shall pay a penalty in the amounts established by the city council by resolution.
Such penalty may also include interest from the date on which the fee or charge became due and payable to the city until the date of payment.
Will_ The filing of knowingly false claims against a vacation rental or the guests staying in a vacation rental is prohibited and shall be punishable by administrative fines as provided in Chapter 1.06 of this code.
ftj.(jl__In addition to, and not in lieu of, any other remedy allowed by law, all remedies prescribed under this chapter are cumulative and the election of one or more remedies does not bar the city from the pursuit of any other remedy, criminal, civil, or administrative which may be pursued by the city to enforce this chapter and/or address any violation of this code or to remedy any other public nuisance.
(Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) § 5.25.110. Ci y blieationsutreach Program
The City shall develop and conduct an outreach prog am at the local Realtor's Multiple Listing Service ("MLS") meetings. This prog am shall include, but not be limited to, guidance on (a) the definition descri tion and re uirements of the two es of rental mana emcnt under Section
5.25.090 of this Chapter, and (b) the application process for a vacation rental registration certificate. This prog am shall be conducted annually.
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§ 5.25.120. Requirements Not Exclusive.
The requirements of this chapter shall be in addition to any license, permit, or fee required under any other provision of this code. The issuance of any permit pursuant to this chapter shall not relieve any person of the obligation to comply with all other provisions of this code pertaining to the use and occupancy of vacation rental or the property on which it is located. (Ord. 1748 § 1, 2008; Ord. 1848 § 2, 2014; Ord. 1918 § 1, 2017; Ord. 2075 § 1, 2022) 55575.18195\43409096.2
Item 8 - Page 23
CITY COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2025 BUSINESS & LEGISLATIVE
SUBJECT: AWARD EXCLUSIVE NEGOTIATION AGREEMENT WITH WEST
HOLLYWOOD COMMUNITY HOUSING CORPORATION FOR
DISPOSITION OF REAL PROPERTY AND DEVELOPMENT OF
AFFORDABLE AND SPECIAL NEEDS HOUSING
FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development Department
SUMMARY:
Staff requests that the City Council award an Exclusive Negotiation Agreement (ENA, Attachment A) to the West Hollywood Community Housing Corporation (WHCHC). This agreement will facilitate negotiations for the disposition of two City-owned parcels via a long-term ground lease for the development of "Juniper Mission," a proposed 203-unit affordable and special needs housing community.
RECOMMENDATION:
1. Award Exclusive Negotiation Agreement to West Hollywood Community Housing Corporation, a California corporation, to provide for the sale of real property for development of 203 affordable housing units.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
A Public Integrity Disclosure form is provided as Attachment B. West Hollywood Community Housing Corporation is registered in the state of California.
BACKGROUND:
In July 2019, the City acquired two parcels as part of a legal settlement. The parcels are vacant and undeveloped land with an irregular shape and frontage along Gene Autry Trail to the west, Mission Drive to the south, District Center Drive to the north and San Joaquin Drive along the eastern frontage as shown in Image A on the following page.
Item 3B - Page 1
City Council Staff Report
October 22, 2025 -- Page 2
Award Exclusive Negotiation Agreement
Image A
Site Map
On January 25, 2021, the City released a Request for Proposals for development of the site. No developers were selected at that time.
On March 10, 2025, a new Request for Proposals was released for the development of the site. This RFP was cancelled due to technical issues that arose when the proposals were evaluated.
On July 14, 2025, a revised Request for Proposals was released. The highest ranking bid is being recommended for award of an ENA.
STAFF ANALYSIS:
The Housing and Community Development Department worked with the Procurement and Contracting Department to issue a Request for Proposals (RFP) to find a developer for the needed services. The RFP was advertised in the local newspaper and published on the PlanetBids website. Five proposals were received by the deadline of August 19, 2025, as follows:
Item 3B - Page 2
City Council Staff Report
October 22, 2025 -- Page 3
Award Exclusive Negotiation Agreement
• West Hollywood Community Housing Corporation – West Hollywood, CA • Community Housing Opportunities Corporation – Fairfield, CA • For the Future Housing – San Luis Obispo, CA
• Homes & Hope (Ventura, CA), Cabrillo Economic Development Corporation (Cabrillo, CA), and Neighborhood Partnership Housing Services (Rancho Cucamonga, CA)
• The Pacific Companies – Eagle, ID and Costa Mesa, CA
The evaluation team made up of City staff from the Housing and Development and Planning Departments evaluated the proposals received against published criteria that included the firms experience, the understanding of the scope of work, the firm’s concept, the site plan, architectural and landscaping quality, local preference, and price. West Hollywood Community Housing Corporation was deemed qualified to complete the work.
Staff determined the cost proposal was deemed to be fair and reasonable for the work.
Staff recommends that the City Council award an ENA with West Hollywood Community Housing Corporation for the Juniper Mission proposal.
Juniper Mission is planned to be a unique, intergenerational community that intentionally combines both senior and family housing in one development. Of the 203 homes, 156 are dedicated to families and 47 to seniors, with shared courtyards, community amenities, and resident programs designed to foster daily connection across generations. This model builds on WHCHC’s nationally recognized InterGen Resident Services Program, which reduces isolation for seniors while providing support and mentorship for families.
By integrating seniors and families in the same community, Juniper Mission creates opportunities for mutual support, stronger social ties, and a deeper sense of belonging— something rarely offered at this scale in affordable housing. The unit count and programming are summarized in Table 1 and shown in Image B on the following page.
Table 1
Unit Summary
Household Type Bedroom Count # of Units Approx Sq Ft
Family 1 bd 75 ~550 sq ft
2 bd 39 ~750 sq ft
3 bd 42 ~1000 sq ft
Senior 1 bd 47 ~585 sq ft
Total 203
All units will be affordable to households earning up to 60% of Area Median Income (AMI), with deeper affordability targeted to secure state and county funding.
Item 3B - Page 3
City Council Staff Report
October 22, 2025 -- Page 4
Award Exclusive Negotiation Agreement
Image B
Unit Count and Programming
Juniper Mission development is designed as a thoughtfully planned community with buildings arranged in staggered “shoestring” formations that create open courtyards and buffer views of the nearby airport. At its heart will be a mid-century-inspired amenity building featuring a double-height lobby and porte cochere to welcome residents and visitors. Surrounding this centerpiece are three-story walk-up residential clusters, each with shaded balconies and outdoor stairs that foster neighborly connections. The outdoor environment emphasizes desert-appropriate landscaping, with Juniper and Desert Willow trees, shaded walkways, and multiple courtyards, as well as two playgrounds designed to serve both families and seniors. Inside, the homes will include one-, two-, and threebedroom layouts ranging from approximately 550 to 1,000 square feet, each designed with private patios and abundant natural light to enhance daily comfort. Images C and D on the following page provide additional views of the Project.
Item 3B - Page 4
Legena
Struor BLDG
One Booroom Units 4 7 Units
Subtotal 47 Units
Fllffllll' BLDG
■ One Bedroom Units 75 Units
■ TW<I Bedroom Units 39 Unrls
■ Th,ee Bedroom Units 42 Unils
Subtotal 156 Units
Total Unil Count 203 Units•
Community Space +/-3,600 SF
- Se•b•t~
Parking +/· 133 Sp•ce•
•Note; All A<e,n ond Unit Counu Are
Appra:xfrnote. and Preliminary
SemorBLDGS
City Council Staff Report
October 22, 2025 -- Page 5
Award Exclusive Negotiation Agreement
Image C
Aerial Image
Image D
Site Layout
Item 3B - Page 5
A COMM
B PLAYGR
C LANDSC
,', D PARKING
E LAUNDR
City Council Staff Report
October 22, 2025 -- Page 6
Award Exclusive Negotiation Agreement
This development aims to benefit the City of Palm Springs and low-income households throughout the Coachella Valley. The Juniper Mission project will provide 203 affordable rental homes—156 for families and 47 for seniors—serving households earning up to 60% of the Area Median Income (AMI). The property, which is a City Surplus property, is designated for low-income housing. This proposal fulfills that obligation by delivering deeply affordable, service-enriched housing on a City-owned site. By targeting families and seniors within this income range, the project creates viable rental options for residents who struggle to secure housing within their means, while also fostering an intergenerational community that encourages daily connection, mutual support, and stability. Income limits for Riverside County are shown below:
Riverside County Income Limits
FY 2025 Persons in Family
1 2 3 4 5 6 7 8
Acutely Low
(15%) $10,900 $10,900 $10,900 $10,900 $10,900 $10,900 $10,900 $10,900 Extremely
Low (30%)
$23,500 $23,500 $23,500 $23,500 $23,500 $23,500 $23,500 $23,500 Very Low
Income
(50%)
$39,200 $39,200 $39,200 $39,200 $39,200 $39,200 $39,200 $39,200 Low Income
(80%) $62,650 $71,600 $80,550 $89,500 $96,700 $103,850 $111,000 $118,150 By integrating family and senior housing into a single development, Juniper Mission represents an innovative and unique affordable housing model for Palm Springs. The project also advances local sustainability goals through solar energy, drought-tolerant landscaping, and modular walk-up design that reduces long-term operating costs. In addition to providing safe, affordable homes, the development will deliver resident services and community programming that strengthen household stability, improve quality of life, and ensure the long-term success of residents and the neighborhood.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. However, the requested action is not approval of a Project and constitutes a “preliminary contract” within the meaning of Section 15004 because the Project is subject to compliance with CEQA, and the ENA does not bind any party or commit to any Item 3B - Page 6
City Council Staff Report
October 22, 2025 -- Page 7
Award Exclusive Negotiation Agreement
definitive course of action prior to CEQA compliance, does not restrict the City from considering any feasible mitigation measures or alternatives, does not restrict the City from disapproving entitlements for the Project, and does not create any vested rights to proceed with the Project.
ALIGNMENT WITH STRATEGIC PLANNING:
The Broad Goals in the Strategic Plan Framework that are addressed by this action are Housing and Community Services. This item also addresses the Overarching Principles of Social Equity.
FISCAL IMPACT:
The total development cost is estimated to be between $80 and $85 million. The project will be financed through a complex structure of public and private funding sources. The City’s primary contribution is the land, valued at $3,210,000, which will be structured as a long-term ground lease. This contribution is critical for the project to qualify for state funding programs. In return, the City will receive $40,000 in annual ground lease payments.
WHCHC has secured a $10,000,000 predevelopment loan from the Low Income Investment Fund (Lift to Rise) and has commitments from the County of Riverside for $3 million in soft financing and 51 project-based vouchers. WHCHC will pursue significant additional funding from state and federal sources, including Low-Income Housing Tax Credits (LIHTC). The estimated sources and uses for the project are shown in Table 2 on the following page.
Item 3B - Page 7
City Council Staff Report
October 22, 2025 -- Page 8
Award Exclusive Negotiation Agreement
Table 2
Sources and Uses
Sources Amount Notes
City Contribution (land) $ 3,210,000 Appraisal value as of 11-11-2024 Riverside County $ 3,000,000 Soft financing + 51 PBVs
HCD Multifamily Housing Program Grant $15 – 17 million Competitive request HCD Infill Infrastructure Grant $ 5 – 6 million
To fund site utilities and
infrastructure
HCD Affordable Housing & Sustainable
Communities Grant TBD
Focused on transit and
sustainable design. Coordination
with Sunline
LIHTC 4% ~ $16 – 18 million Family Phase
LIHTC 9% ~ $ 10-11 million Senior Phase
Federal Home Loan Bank – AHP Grant $ 1 – 2 million
Cover shortfalls or fund
sustainability
Private Loans / Tax Credit Equity
Investors TBD
Construction & permanent
financing
Low Income Investment Fund (Lift to
Rise) $ 10,000,000
Predevelopment loan
Total $ 63,210,000 For known numbers
Uses Amount
Land Acquisition
Donation structured as a ground
lease. City receives $40,000
annually
Hard Costs $ 60 - 65 million $310,000 /unit + contingency Soft Costs $ 8 - 10 million
Developer Fee / Overhead $ 5 - 6 million
Financing Costs & Reserves $ 5 million
Total $ 80 - 85 million
Final costs dependent on
awards/pricing
REVIEWED BY:
Department Director: Jay Virata
City Attorney: Jeffrey S. Ballinger
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft Exclusive Negotiation Agreement
B. Public Integrity Disclosure
Item 3B - Page 8
ATTACHMENT A
Item 3B - Page 9
55575.38175\33156498.6
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EXCLUSIVE NEGOTIATING AGREEMENT
BY AND BETWEEN
CITY OF PALM SPRINGS, CALIFORNIA
AND
WEST HOLLYWOOD COMMUNITY HOUSING CORPORATION
This Exclusive Negotiating Agreement (the “Agreement”) is entered into as of this 22nd day of October 2025, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation (“City”), acting in its capacity as Housing Successor Agency, and WEST HOLLYWOOD COMMUNITY HOUSING CORPORATION, a California non-profit community development corporation (the “Developer” or “WHCHC”). City and the Developer may sometimes hereinafter be referred to individually as a “Party” and collectively as the “Parties,” with reference to the following facts:
RECITALS
A. City is a charter city, corporate and politic, exercising governmental functions and powers.
B. In July 2025, City issued that certain Request for Proposals (“RFP”) seeking a developer for the property located on North Gene Autry Trail, consisting of approximately 5.5 acres and currently owned by City (the “Site”). The Site is described on “Exhibit A1” and depicted on “Exhibit A2,” each of which is attached hereto and incorporated herein by this reference.
C. As part of the Developer selection process for the Site, City issued a Request for Proposals, and received multiple responses. The Palm Springs City Council (the “City Council”) selected WHCHC to be the Site’s developer.
D. The Developer responded to the RFP with a submittal dated September 2025 (the “Developer’s Proposal”). The City Council selected the Developer as the developer for the Site in reliance on the Developer’s Proposal..
E. The Developer has proposed development of an affordable housing project named Juniper Mission (the “Project”). The Project will provide approximately 203 residential rental units, including 156 family units and 47 senior units, serving households earning up to 60% of Area Median Income (AMI). The project will be consistent with the land use designation for the Site under the General Plan, City’s zoning ordinance, and applicable specific plans, as may be amended from time to time.
F. The Project shall be located upon the Site, which is currently unimproved.
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G. City desires to fulfill its objectives under the Housing Element of City’s General Plan by providing additional affordable housing units in City. The development of the Project will further City’s goals of creating affordable housing units.
H. The purpose of this Agreement is to establish procedures and standards for the negotiation by City and the Developer of a Disposition and Development Agreement (a “DDA”) for development of the Project on the City owned property. Additionally, it is anticipated that the Successor Agency and Developer will enter into a Ground lease for the Successor Agency owned Property. As more fully set forth in Section 3.1, below, this Agreement in itself does not grant the Developer or any successor the right to develop the Project or the Site.
WITH REFERENCE TO THE FACTS RECITED ABOVE, City and the Developer agree as follows:
ARTICLE 1: EXCLUSIVE NEGOTIATIONS RIGHT
Section 1.1 Good Faith Negotiations.
a. During the Negotiating Period described in Section 1.2, below, City and the Developer shall diligently and in good faith negotiate the terms of a DDA for the development of the Project on the Site, and shall cooperate in conducting such Project feasibility activities as each Party deems appropriate. During the Negotiating Period, the Parties shall use good faith efforts to accomplish the respective tasks outlined in the Schedule of Performance attached as “Exhibit B” to this Agreement to facilitate the negotiation of a mutually satisfactory DDA. Thereafter, the Parties shall use their best efforts to negotiate in good faith the final terms of the DDA.
b. Among the issues to be addressed in the negotiations for provisions to be included in the DDA are the total development costs of the Project, the nature and amount of financial investment in the Project by the Developer and City, if any, remediation of any adverse Site conditions, the Developer’s responsibility to obtain entitlements and any environmental clearances, the development schedule for the Project, financing of the Project, marketing and management of the Project, design and aesthetic considerations of the Project, Site layout, preliminary design and architectural concepts and plans, the quality and type of construction, and the provision of public improvements related to the Project.
c. As part of the negotiations under this Agreement, the Developer shall make reasonably available such additional staffing, consultants and Item 3B - Page 11
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other resources as may be required for the timely resolution of issues that may arise during negotiations and for the expeditious review of documents to be prepared by or on behalf of City. It is anticipated that, except as City may otherwise determine, negotiations and other meetings between the Parties during the Negotiating Period of this Agreement will take place at City's offices, other locations in Palm Springs or by electronic means, and draft documents will be prepared by City or its attorneys and consultants and provided to the Developer and its attorneys and consultants for review and comment. During the Negotiating Period of this Agreement, the Developer agrees to participate in monthly community information meetings, as requested and hosted by City. These meetings will update the community on the progress of negotiations, and will seek community input on Project design, environmental and traffic issues. d. Each Party acknowledges and agrees that the other party shall be deemed to be acting in good faith so long as it makes reasonable efforts to attend scheduled meetings, directs its consultants to cooperate with the other Party, provides information necessary to the negotiations to the other Party, and uses commercially reasonable efforts to review and return with comments all correspondence, reports, documents, or agreements received from the other Party that require such comments.
Section 1.2 Negotiating Period.
a. The negotiating period under this Agreement (the “Negotiating Period”) shall be one hundred eighty (180) days from the date of this Agreement. If a DDA has not been executed by the Parties (or by City and a party related to the Developer and approved by City) by the expiration of the Negotiating Period, then this Agreement shall terminate and neither Party shall have any further rights or obligations under this Agreement, except as set forth in Sections 1.4,
3.2, 3.3, and 3.6. However, if requested by the Developer, the City Manager may extend the Negotiating Period for two (2) additional, ninety (90) day periods. The Negotiating Period may be extended only by written amendment to this Agreement, and no other act or failure to act by City or any of its representatives shall result in an extension of the Negotiating Period. If such extension is not granted, this Agreement shall automatically terminate.
b. Notwithstanding the foregoing, if the Developer signs and submits to City a DDA approved as to form and content by City Manager within the Negotiating Period, the Negotiating Period will automatically be extended by a period of 30 days to permit the City Council to consider the proposed DDA.
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c. If a DDA is executed by both Parties, then upon such execution this Agreement shall terminate, and all rights and obligations of the Parties shall be as set forth in the executed DDA.
d. This Agreement may also be terminated if the Parties agree in writing that a successful consummation of the negotiations is impossible.
Section 1.3 Exclusive Negotiations. During the Negotiating Period, City shall not negotiate with any person or entity, other than the Developer or a party affiliated with Developer and approved by City, regarding development of the Site or any portion thereof, or solicit or entertain bids or proposals to do so. The Developer acknowledges, however, that City may, from time to time, be contacted by other developers and interested parties regarding the Site and that such contact is permitted so long as City does not initiate the contact and indicates to such other parties that City has executed this Agreement with the Developer and that City is unable to discuss anything concerning these negotiations with such other parties, to entertain any offer or proposals, or to negotiate with any such parties until this Agreement expires or is terminated.
Section 1.4 Good Faith and City Consultant Costs Deposit. a. The Developer acknowledges that City shall expend substantial resources in the negotiation and performance of the tasks in the DDA. Concurrently with the full execution of this Agreement by City and the Developer, the Developer shall submit to City as a good faith and consultant cost reimbursement deposit the amount of Fifteen Thousand Dollars ($15,000) (the “Deposit”) to ensure that the Developer will proceed diligently and in good faith to negotiate and perform all of the Developer’s obligations under this Agreement and to pay for City’s costs and expenses in negotiating and preparing the DDA and complying with planning and environmental review. Such costs may include but are not limited to fees and services of economic consultants and attorneys, selected by City, relating to the Project and the preparation of the DDA (“Consultant Costs”). At City’s election, the Developer may provide the Deposit in the form of cash, a pledged certificate of deposit, an interest bearing account that is controlled by City, or such other form of security acceptable to City in its sole discretion. If the balance in the deposit falls below $5,000 City may request an additional deposit from Developer. City shall not proceed with City’s obligations under this ENA until the deposit is replenished.
b. To the extent funds remain in the deposit account by the end of the term of this Agreement and a DDA has not been entered into (or a Item 3B - Page 13
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City Manager approved DDA has not been executed and submitted to City by the Developer), and the Developer has negotiated in good faith and is not in breach of this Agreement, City shall return the unexpended balance of the Deposit to the Developer along with an accounting of the Consultant Costs incurred by City.
c. If performance of this Agreement results in execution of a DDA, any remaining funds in the Good Faith Deposit shall be applied to the Developer’s lease of the Site or shall be returned to Developer, at Developer’s option.
Section 1.5 DDA Terms and Conditions. The essential terms and conditions of the DDA to be negotiated and drafted pursuant to this Negotiation Agreement shall be guided by the following requirements and conditions:
a. The negotiations shall be based on and guided by, and the DDA shall incorporate, the objectives, parameters, development requirements, terms and conditions and other requirements set forth in the RFP and the Developer’s proposal.
b. The DDA shall be subject to the policies and requirements of City and State of California:
i. Payment of Prevailing Wages, as that term is customarily used in similar agreements with similar parties, in accordance with applicable State and/or federal law;
ii. Equal Opportunity and Nondiscrimination, as those terms are customarily used in similar agreements with similar parties; iii. City Standard Insurance Requirements;
iv. Any and all other applicable and customary City policies. c. The DDA shall contain a scope of development setting forth design parameters for the Site and a requirement for the submission of plans to City for approval.
d. The DDA shall contain a schedule of performance setting forth the respective times in which City and the Developer are obligated to perform their respective obligations.
e. The DDA shall include a detailed development budget, sources and uses budget, and a feasible method of financing, reasonably demonstrating to City the availability of all funds needed to complete Item 3B - Page 14
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the Project. The DDA shall require the submittal of documentation of all proposed construction loans and the Developer equity needed to carry out the proposed method of financing. The Developer agrees to make continuing full disclosure to City of its proposed methods of financing the Project.
f. The DDA may contain details of City financial assistance and may include, but not be limited to, consideration for land assembly, affordable housing, public parking and off-site public improvements.
To the extent City provides financial assistance for the Project, the terms of repayment, shall be negotiated during the Negotiating Period and shall be set forth in the applicable DDA.
g. The DDA shall set forth conditions precedent to the conveyance of any interest in property to be conveyed by City to the Developer, and to the disbursement of any funds by City or funds to be advanced by the Developer and reimbursed by City in accordance with the terms of the DDA, to ensure that the Project will be developed and used as required by the DDA.
h. Subject to Section 3.9, below, the DDA shall prohibit, without written City consent, which consent shall not be unreasonably withheld, conditioned or delayed, any assignments or transfers by the Developer until completion of any construction required by the DDA, including any assignment of a security interest in the Site for financing purposes. Provided, however, City hereby consents to a transfer from Developer to an affiliated limited partnership of which Developer is the sole member of the general partner for purposes of obtaining low income housing tax credit proceeds.
i. The DDA shall set forth use restrictions relating to the Project, which use restrictions may be set forth in a covenant to be recorded against the Site. If necessary and appropriate to secure financing, any such use restrictions may be subordinated to the liens of Developer’s conventional lenders executed in connection with the financing approved by the City..
Section 1.6 Identification of Negotiating Representatives. The Developer’s representative to negotiate the DDA with City is Matt Mason, Director of Real Estate Development. The Developer’s key consultants are Sarah Perez, Esq. and others that will be identified by the Developer throughout the term of this Agreement. City’s representative to negotiate the DDA with the Developer are David Ready, City Manager, Marcus Fuller, Assistant City Manager, Jay Virata, Director of Community and Economic Development, or Jeffrey S. Ballinger, City Attorney. Either Party may designate a substitute representative and consultants Item 3B - Page 15
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by giving written notice to the other Party of the name of such substitute representative.
ARTICLE 2: NEGOTIATION TASKS
Section 2.1 Overview. To facilitate negotiation of the DDA, the Parties shall use reasonable good faith efforts to accomplish the tasks set forth in the Schedule of Performance in the timeframe set forth therein so as to support negotiation and execution of a mutually acceptable DDA before the expiration of the Negotiating Period. The dates set forth in the Schedule of Performance for the performance of various tasks by the Developer may be extended by City in its sole discretion.
Section 2.2 Reports.
a. The Developer shall provide City with copies of all final reports, studies, analyses, correspondence, schematic design drawings, and similar documents, prepared or commissioned by the Developer with respect to this Agreement and the Project, promptly upon their completion. City shall provide the Developer with copies of all reports, studies, analyses, correspondence, and similar documents prepared or commissioned by City with respect to this Agreement and the Project, promptly upon their completion. City shall exercise good faith efforts to provide to the Developer within a reasonable period after the execution and delivery of this Agreement all reports it has caused to be made, both internally or through consultants, and that it possesses respecting the Site. By way of example, City shall provide to the Developer civil engineering reports including, without limitation, boundary and topographical surveys, environmental reports, soils reports and appraisals in the possession of City on the date of this Agreement. The Developer has obtained all the public reports reasonably available to it that were created before the date of this Agreement Nothing in this Section 2.2 obligates City to undertake any studies or analyses. Any document provided to any party pursuant to this section shall be without warranty. b. While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, the Developer acknowledges that City will need sufficient, detailed information about the proposed Project to make informed decisions about the content and approval of the DDA.
c. Unless otherwise provided by law, all documents and reports submitted to City pursuant to this Agreement shall become the property of City, and will be subject to the California Public Records Act (Government Code Section 6250 et seq.). Developer
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understands and agrees that all documents submitted to City are presumed to be “public records,” and may be subject to public disclosure. If an exemption to the California Public Records Act or a limitation upon reproduction of documents (e.g., building plans) applies, the Developer may seek to shield certain portions of its documents and reports from disclosure by justifiably marking such documents as “Confidential,” “Trade Secrets” or “Proprietary.” d. City shall notify the Developer of any requests for documents marked “Confidential,” “Trade Secrets” or “Proprietary” by the Developer. In the event City is required to defend an action under the California Public Records Act with regard to a request for disclosure of any of the documents or reports marked “Confidential,” “Trade Secrets” or “Proprietary” by the Developer, the Developer agrees to defend and indemnify City and City from all costs and expenses of such defense, including reasonable attorney’s fees of City and City or attorney’s fees awarded by a court arising out of such action.
Section 2.3 Test and Surveys, Insurance. For City-owned property, City shall provide to the Developer, its agents, and its representatives the right to enter onto the Site and to conduct such tests, surveys, and other procedures (the “Tests”) as set forth below in Section 2.11. The Developer shall indemnify and hold harmless City from any loss, cost, or damage (including, without limitation, reasonable attorney’s fees) arising out of any such entry on the Site (whether owned by City or any third party) by the Developer, its agents, or its representatives. The Developer shall present City with evidence of a general liability insurance policy with limits of at least two million dollars ($2,000,000) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate, naming City and City’s officials, employees, and agents as additional insured parties. In addition, Developer shall maintain workers’ compensation insurance in the statutory amount as required by the State of California and employer’s liability insurance with limits of at least one million dollars ($1,000,000) per occurrence, and shall provide to City evidence of Developer’s insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers. All Developer insurance coverage shall be primary and non-contributory over any insurance or self-insurance of the City. The Parties intend that Developer’s insurance policies shall cover all liability and property damage, and/or any injury to any person, arising from the presence on the Site, whether during Tests and/or pursuant to the “Right of Entry,” defined below in Section 2.11, of Developer, its contractors and sub-contractors, its agents, and/or its representatives.
Section 2.4 Environmental Review. Within the time set forth in the Schedule of Performance Developer shall identify and provide to City such plans, specifications, drawings, and other information, and shall take such reasonable actions in relation thereto, as specified by City, that are reasonably necessary to Item 3B - Page 17
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perform the environmental review process, if any, required by the California Environmental Quality Act (“CEQA”) and, if applicable, the National Environmental Policy Act (“NEPA”) for the Project, and to prepare all environmental documentation required by CEQA and, as applicable, NEPA.
During the ENA term and subject to the Developer providing the necessary information to City, City shall undertake the necessary steps, if any, to conduct the required level of environmental review process determined by City pursuant to CEQA requirements. City will coordinate with other departments of City to conduct the required environmental review. City may contract with consultants for such work and may draw upon the Deposit to pay for the Consultant Costs in accordance with Section 1.4, above.
Section 2.5 Conceptual Site Plans and Preliminary Designs. The Developer acknowledges that the Project requires approvals and entitlements from City. Within the time set forth in the Schedule of Performance Developer shall submit conceptual site plans and preliminary designs for the Project to the appropriate City departments for their informal review.
Section 2.6 Financial Pro forma Analysis. Within the time set forth in the Schedule of Performance Developer shall provide to City a preliminary financial pro forma analysis for the Project containing matters typically contained in such analyses, including without limitation, a development cost budget and an operating income and expense estimate. The preliminary financial pro forma will be used to evidence the financial feasibility of the Project and to assist in the negotiation of terms regarding the financing of the Project. The preliminary pro forma shall describe the proposed amount and uses of any financial assistance requested to be provided by City.
Section 2.7 Financing Commitments. Within the timeframes set forth in the schedule of performance attached to the DDA, the Developer shall exercise good faith efforts to provide to City executed written commitments (containing usual and customary conditions) for construction and permanent financing for the Project.
Section 2.8 Community and City Council Meetings. The Developer may be required to participate in public community meetings with City staff and/or City Council and agrees to participate in such meetings as deemed necessary by City staff.
Section 2.9 DDA Schedule of Performance. The Developer and City agree to negotiate a detailed schedule of performance to be incorporated into the DDA for the Project, which shall include but not be limited to: the date for the submittal of construction plans to City, the date for the commencement of Item 3B - Page 18
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construction of the Project, and the date for completion of construction and the opening of the Project.
Section 2.10 Progress Reports. Upon reasonable notice, as from time to time requested by City, the Developer shall make and provide to City progress reports including financing and leasing activities, advising City on studies being made, and matters being evaluated by the Developer with respect to this Agreement and the Project. Such progress reports shall be in writing, if so requested by City. City shall not request written reports more frequently than once each month. City shall exercise good faith efforts to provide to the Developer all written or electronically transmitted comments City receives from neighbors, the community and others so that the Developer can promptly respond to them.
Section 2.11 Right of Entry.
a. Right of Entry. City hereby grants to the Developer and its authorized agents and contractors the nonexclusive right to enter upon the Site (the “Right of Entry”) to undertake the Approved Uses, defined below, only, and expressly for no other purposes without the prior written approval of City's Director of Community and Economic Development or his or her designee (the “Authorized Agent”), which approval the Authorized Agent may grant or deny in good faith to meet the objectives of this Agreement. “Approved Uses” shall mean that the Developer and its contractors, employees, agents, assigns, experts and vendors have the right to enter onto the Site for the purposes of (i) inspecting the Site, (ii) performing initial civil engineering studies including performing topographical and boundary surveys (iii) obtaining soil samples, and (iv) performing environmental studies.
b. Term of Right of Entry. This Right of Entry shall automatically terminate and expire on the first to occur of the following: (i) the end of the term of the ENA, or (ii) upon the termination of the Agreement. c. No Property Rights Granted. It is expressly understood this Right of Entry does not in any way whatsoever grant or convey any rights of possession, easement or other interest in the Site to the Developer, at this point in time, or through this Right of Entry.
d. Conditions Precedent to Continued Right of Entry:
i. Termination of Right of Entry for Use beyond the Scope of the Approved Uses. Under the terms of this Right of Entry, in no event shall the Developer use the Site in any manner beyond the scope of the Approved Uses. In the event the Developer undertakes any other use at the Site outside the scope of the described Approved Uses, this Right of Entry shall automatically terminate and Item 3B - Page 19
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the Developer shall immediately vacate the Site, shall have no further rights to enter the Site for the Approved Uses and shall be liable and responsible to City for any and all damages, claims, and mechanics liens, if any, relating to the Site.
ii. Compliance With All Applicable Governmental
Requirements. All acts and things done by the Developer on the Site will be done in a careful and reasonable manner, in accordance with all applicable Federal, state and local laws.
iii. The Developer At Own Risk. The Developer enters the Site entirely at its own cost, risk and expense, and the Developer acknowledges that City and its officers, employees, agents or contractors, have made no warranty or representation to the Developer that the Site, or any part thereof is safe or suitable for the intended purposes of the Approved Uses.
iv. Insurance. Before the Developer’s entry upon the Site and during the period of this Right of Entry, there shall be in effect policies of insurance in the amount set forth as required under Section 2.3, above.
v. No Mechanics' Liens. The Developer shall not permit
any mechanics', materialmen's or other liens of any kind or nature to be filed or enforced against the Site.
vi. General Maintenance and Cleanup. During the term of this Right of Entry, the Developer shall maintain the Site in a safe and good condition. Developer is not responsible to address any condition at the Site entirely created from the action of one or more third parties not affiliated with Developer, or having access to the Site with Developer’s consent.
e. Except for the gross negligence or willful misconduct of City, the Developer hereby agrees to defend, indemnify and hold City, harmless, with respect to Developer’s actions arising from or related to Developer’s right of entry pursuant to Section 3.2 of this Agreement.
ARTICLE 3: GENERAL PROVISIONS
Section 3.1 Limitation on Effect of Agreement. This Agreement shall not obligate either Party to enter into a DDA, or to enter into any particular DDA or other agreement. City and the Developer do not intend this Agreement to be a purchase agreement, ground lease, license, option or similar contract or to be bound in any way by this Agreement. By execution of this Agreement, City is not committing itself or agreeing to undertake acquisition, disposition, or exercise of Item 3B - Page 20
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control over any property nor is the Developer committing itself to undertake the acquisition of any property. Execution of this Agreement by City and the Developer is merely an agreement to conduct a period of exclusive negotiations and preparing recommendations to City Council in accordance with the terms hereof, reserving for subsequent City action the final discretion and approval regarding the execution of a DDA and all proceedings and decisions in connection therewith.
Any DDA resulting from negotiations pursuant to this Agreement shall become effective only if and after such DDA has been considered and approved by City Council following conduct of all legally required procedures. Each party assumes the risk that, notwithstanding this Agreement and good faith negotiations, the Parties may not enter into a DDA due to the Parties’ failure to agree upon essential terms of a transaction. Except as expressly provided in this Agreement, the Developer agrees that City shall have no obligations or duties hereunder and no liability whatsoever in the event the Parties fail to execute a DDA.
Section 3.2 The Developer to Indemnify City. Except for the gross negligence or willful misconduct of City, the Developer undertakes and agrees to defend, indemnify, and hold harmless City from and against all suits and causes of action, claims, losses, demands and expenses, including, but not limited to, reasonable attorney's fees and costs of litigation, damage or liability of any nature whatsoever, arising in any manner by reason of or incident to the performance of this Agreement on the part of the Developer or any contractor or subcontractor of Developer, whether or not contributed to by an act or omission of City. The Developer shall further indemnify, defend, and hold City, its directors, officers, employees, agents, and successors and assigns harmless against all suits and causes of action, claims, costs, and liability, including, but not limited to, reasonable attorney’s fees and costs of any litigation, or arbitration or mediation, if any, brought by a third party (1) challenging the validity, legality or enforceability of this Agreement or (2) seeking damages which may arise directly or indirectly from the negotiation, formation, execution, enforcement or termination of this Agreement, or which are incident to the performance of the activities contemplated in this Agreement. Nothing in this Section shall be construed to mean that Developer shall hold the City harmless and/or defend them to the extent of any claims arising from, or alleged to arise from the sole negligence, willful misconduct or illegal acts of any of the City, the failure of the City to follow any rule, procedure or law applicable to the City or Agency, and/or any claims that this Agreement violates any current agreement to which the City is subject. The City agrees that City and Agency shall cooperate with Developer in the defense of any matter in which Developer is defending and/or holding the City harmless. The Developer shall pay immediately upon City's demand any amounts owing under this indemnity. The duty of the Developer to indemnify includes the duty to defend City or, at City's choosing, to pay City's costs of its defense in any court action, administrative action, or other proceeding brought by any third party arising from the development of the Site. City shall have the right to approve any attorneys retained by the Developer to defend City pursuant to this Section 3.2 and shall Item 3B - Page 21
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have the right to approve any settlement or compromise. The Developer's duty to indemnify City shall survive the termination of this Agreement.
Section 3.3 Notices. Formal notices, demands and communications between the Parties shall be sufficiently given if, and shall not be deemed given unless, dispatched by certified mail, postage prepaid, return receipt requested, or sent by express delivery or overnight courier service, to the office of the Parties shown as follows, or such other addresses as the Parties may designate in writing from time to time:
City: City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA, 92263
Attn: City Manager
Phone No.: (760) 323-8350
Fax No.: (760) 323-8207
With copy to: City Attorney
3200 E. Tahquitz Canyon Way
Palm Springs, CA, 92263
Attn: City Attorney
Phone No.: (760) 323-8205
Fax No.: (760) 322-8332
The Developer: West Hollywood Community Housing Corporation 7530 Santa Monica Boulevard
West Hollywood, CA 90046
Attn: Mr. Jesse Slansky,
CEO and President
Phone: (323) 650-8771
Email: [email protected]
Website: www.whchc.org
With copy to:
Gubb & Barsahy LLP
505 14th Street, Suite 450
Oakland, CA 94612Attention: Sarah Perez
Phone No.: (415) 781-6600 ext. 4
Cell No.: (415) 813-7101
Fax No.: (415) 781-6967
Email: [email protected]
Such written notices, demands and communications shall be effective on the date shown on the delivery receipt as the date delivered or the date on which delivery was refused.
Item 3B - Page 22
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Section 3.4 Costs and Expenses. The Developer shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with this Agreement, and the performance of its obligations under this Agreement, except as specifically provided in this Agreement.
Section 3.5 No Commissions. City shall not be liable for any real estate commissions or brokerage fees that may arise from this Agreement or any DDA that may result from this Agreement. City represents that it has engaged no broker, agent, or finder in connection with this transaction. The Developer shall defend and hold City harmless from any claims by any broker, agent, or finder retained by the Developer.
Section 3.6 Use of Project Images. The Developer hereby consents to and approves the use by City of images of the Project, its models, plans and other graphical representations of the Project and its various elements (“Project Images”) in connection with marketing, public relations, and special events, websites, presentations, and other uses required by City in connection with the Project. The Developer shall obtain any rights and/or consents from any third parties necessary to provide these Project Image use rights to City. In the event that the Parties enter into a DDA, City’s right to use the Project Images shall be as set forth in the DDA.
Section 3.7 Default and Remedies.
a. Default. Failure by either Party to negotiate in good faith or failure by the Developer to accomplish the tasks listed in the Schedule of Performance within the time set forth therein, as provided in this Agreement shall constitute an event of default hereunder. The nondefaulting Party shall give written notice of a default to the defaulting Party, specifying the nature of the default and the required action to cure the default. If a default remains uncured fifteen (15) days after receipt by the defaulting Party of such notice, the non-defaulting Party may exercise the remedies set forth in subsection (b); provided, however, that if the default is not reasonably susceptible to cure within this fifteen (15) day period, then, provided that the Party in default shall commence to cure such default upon receipt of such written notice and shall continue to diligently pursue such cure to completion, the cure period shall be extended by the amount of time reasonably necessary to cure such default.
b. Remedies.
i. In the event of an uncured default by City, the Developer’s sole remedy shall be to terminate this Agreement, upon which the Item 3B - Page 23
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Developer shall be entitled to the return of the remaining balance of the Deposit and any interest earned thereon. Following such termination and the return of the balance of the Deposit and any interest earned thereon, neither Party shall have any further right, remedy or obligation under this Agreement, except that the Developer’s indemnification obligation pursuant to Section 3.2 shall survive such termination.
ii. In the event of an uncured default by the Developer, City’s sole remedy shall be to terminate this Agreement and to retain the Deposit, and any interest earned thereon. Following such termination, neither Party shall have any right, remedy or obligation under this Agreement, except that the Developer’s indemnification obligation pursuant to Section 3.2 shall survive such termination.
c. Waiver and Release. Except as expressly provided in this Agreement, neither Party shall have any liability to the other for damages or otherwise for any default, nor shall either Party have any other claims with respect to performance under this Agreement. Each Party specifically waives and releases any such rights or claims it may otherwise have at law or in equity and expressly waives any rights to consequential damages or specific performance from the other Party under this Agreement.
Section 3.8 Waiver of Default. Except as otherwise expressly provided in this Agreement, any failure or delay by either Party in asserting any of its rights or remedies as to any Default shall not operate as a waiver of said Default or of any rights or remedies in connection therewith or of any subsequent Default or any rights or remedies in connection therewith, or deprive such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.
Section 3.9 Assignment. This Agreement may not be assigned nor may there by any material change in the management or ownership of the Developer without the prior written approval of City, which may withhold approval in its sole and absolute discretion. Notwithstanding the foregoing or any provision to the contrary in this Agreement, City acknowledges and agrees that Developer may assign its rights and delegate its duties under this Agreement and/or the DDA to a single asset legal entity in which Developer or a limited liability company owned and controlled by Developer acts as the general partner.
Section 3.10 Conflict of Interests. No member, official or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any Item 3B - Page 24
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corporation, partnership or association in which he, or she is directly or indirectly, interested.
Section 3.11 Warranty against Payment of Consideration for Agreement.
The Developer warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. The parties understand and agree that the Developer has retained legal counsel and consultants in connection with this Agreement, and that such is not a violation of this Section 3.11.
Section 3.12 Non-liability of Officials, Officers, Members, and Employees.
No member, official, officer, or employee of City or City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to the Developer or to his successor, or on any obligations under the terms of this Agreement.
Section 3.13 Covenant Against Discrimination. In connection with its performance under this Agreement, the Developer 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), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). The Developer 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, the Developer certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any the Developer 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 selection for training, including apprenticeship; selection, location, number, use or occupancy of tenants, lessees, subtenants, subleases, or venders of the Site; and further, that the Developer 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 nondiscrimination in city contracting.
Section 3.14 The Developer’s Obligation Toward Equal Opportunity. The Developer will not discriminate against any employees or applicant for employment because of race, color, religion, creed, national origin, ancestry, sex, sexual orientation, age, disability, medical condition, or marital status. The Developer will conform to City’s Equal Opportunity Policies regarding fairness in hiring.
Section 3.15 Attorney’s Fees. If any Party should bring any legal action or proceeding relating to this Agreement (including, without limitation, any action or proceeding to interpret or enforce any provision hereof), then the Party in whose Item 3B - Page 25
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favor a judgment or decision is rendered shall be entitled to recover reasonable attorneys’ fees and expenses from the other Party to the controversy.
Section 3.16 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
Section 3.17 Neutral Interpretation. This Agreement is the product of the negotiations between the parties, and in the interpretation and/or enforcement hereof is not to be interpreted more strongly in favor of one party or the other.
Section 3.18 Entire Agreement; Incorporation of Recitals. This Agreement constitutes the entire agreement of the Parties regarding the Project. The Recitals, above, are hereby incorporated into the Agreement.
Section 3.19 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.
SIGNATURES FOLLOW
Item 3B - Page 26
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SIGNATURE PAGE TO
EXCLUSIVE NEGOTIATING AGREEMENT
BY AND BETWEEN
CITY OF PALM SPRINGS, CALIFORNIA
AND
WEST HOLLYWOOD COMMUNITY HOUSING CORPORATION
AS OF THE DATE FIRST WRITTEN ABOVE, the Parties evidence their agreement to the terms of this Agreement by signing below:
Executed at Palm Springs, California.
APPROVED AS TO FORM: CITY:
By: By:
City Attorney City Manager
DEVELOPER:
WEST HOLLYWOOD COMMUNITY
HOUSING CORPORATION
By:
Name: Jesse Slansky
Its: President and CEO
Item 3B - Page 27
55575.38175\33156498.6
ENA-WHCHC-Stevens North Palm Canyon Exhibit A1
EXHIBIT A1
SITE DESCRIPTION
The property is located on North Gene Autry Trail near the Palm Springs International Airport, consisting of approximately 5.5 acres. The site is currently owned by the City of Palm Springs. The property is surplus land, made available under the Surplus Land Act for the development of affordable housing. The site will accommodate the Juniper Mission project, consisting of 203 units of affordable housing, including 156 family units and 47 senior units.
LEGAL DESCRIPTION
1.35 ACRES M/L IN A PORTION OF PARCEL B AND PARCEL 2 PARCEL MAP 29631 PM 201/050, APN 677-540-028
4.30 ACRES M/L IN A PORTION OF PARCEL 2 OF PARCEL MAP 29631 PM201/050; APN 677-540-036
ASSESSOR’S PARCEL MAP
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Item 3B - Page 28
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ENA-CHOC-Indian San Rafael Exhibit A2
EXHIBIT A2
SITE DEPICTION
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Item 3B - Page 29
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55575.38175\33156498.6
ENA-WHCHC-Stevens North Palm Canyon Exhibit B
EXHIBIT B
SCHEDULE OF PERFORMANCE
Scheduled Item Outside Date First Section
Reference
Payment of Deposit Execution of Agreement 1.4
Delivery by City to the
Developer of Reports
10 business days after
execution of ENA
2.2 Delivery by City of draft
DDA to the Developer
30 days after execution
of ENA
1.1 Delivery by Developer to
City of Financial Pro
forma Analysis
60 days after execution
of ENA
2.6 Delivery by Developer to
City of Conceptual Site
Plans and Preliminary
Designs
90 days after execution
of ENA
2.5 Delivery by Developer to
City of Environmental
Review Documents
120 days after execution
of ENA
2.4 Consideration of DDA 180 days after execution
of ENA
1.2 Item 3B - Page 30
ATTACHMENT B
Item 3B - Page 31
Item 3B - Page 32
1. 2.
3. 4.
5. Name of Entity
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
West Hollywood Community Housing Corporation
Address of Entity (Principal Place of Business)
7530 Santa Monica Blvd, West Hollywood, CA 90046
Local or California Address (if different than #2)
State where Entity is Registered with Secretary of State California
If other than California, is the Entity also registered in California? D Yes D No Type of Entity
Kl Corporation D Limited Liability Company D Partnership D Trust D Other (please specify)
6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
Jesse Slansky
Ix] Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
Other
please see attached D Officer D Director D Member D Manager [name] D General Partner D Limited Partner
D Other
D Officer D Director D Member D Manager
[name] D General Partner D Limited Partner
D Other
Item 3B - Page 33
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
A.
NIA NIA
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name, Title Date ~AA . 3/24/2025 - -.,-,-
Jesse Slansky, CEO & resident
CITY COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2025 BUSINESS & LEGISLATIVE
SUBJECT: APPROVE COOPERATIVE AGREEMENT WITH THE COUNTY OF
RIVERSIDE DEPARTMENT OF HOUSING AND WORKFORCE
SOLUTIONS (HWS) FOR IMPLEMENTATION OF THE PALM SPRINGS
FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Housing & Community Development
SUMMARY:
This item requests City Council approval of a Cooperative Agreement (Attachment A) between the City of Palm Springs (City) and the County of Riverside Department of Housing and Workforce Solutions (HWS) to implement the Palm Springs First Time Homebuyer Down Payment Assistance Program (PS FTHB). The Program will provide direct financial assistance to qualified Palm Springs residents seeking to purchase their first home, with priority given to Section 14 survivors and their descendants. The initiative expands affordable homeownership opportunities, supports long-term wealth-building for local households, and advances the City’s Section 14 restorative justice commitments.
Under the proposed Cooperative Agreement, the City will allocate $1,000,000 annually for (5) years, funded through the City’s Housing Transient Occupancy Tax (TOT) Fund.
The Agreement establishes an initial five-year term, with the option to extend for an additional five (5) years.
RECOMMENDATION:
1. Approve a Cooperative Agreement with the County of Riverside Department of Housing and Workforce Solutions for implementation of the Palm Springs First Time Homebuyer Down Payment Assistance Program.
2. Authorize the City Manager or their designee to execute all necessary documents.
BACKGROUND:
In November 2024, the Palm Springs City Council approved a comprehensive framework for restorative justice and housing initiatives stemming from the Section 14 settlement discussions (Attachment H). This included a public monument to honor and remember former Section 14 residents; naming a new City park in honor of the Section 14 Survivors; Item 3C - Page 1
City Council Staff Report
October 22, 2025 -- Page 2
First Time Homebuyer Downpayment Assistance
providing letters of support for a community-driven center focused on cultural and racial healing; and investing $1 million over five years to provide entrepreneur training, mentorships, and access to capital for women and BIPOC entrepreneurs in Palm Springs.
The Council also identified funding for housing programs as part of the commitments to the survivors and descendants of Section 14. Formation of a Community Land Trust (CLT) was discussed as a possible vehicle to create affordable housing. A CLT would be non-profit entity requiring a certain number of staff, and legal, real estate, and property management expertise for it to become operational. Staff is still evaluating the time and cost involved with forming a CLT.
The proposed First Time Homebuyer Downpayment Assistance program is aimed at helping Palm Springs residents achieve homeownership and will have targeted outreach to survivors and descendants of Section 14. This program will provide down payment assistance to first-time homebuyers, with targeted outreach efforts to ensure Section 14 families are aware of the opportunity.
The Department of Housing and Community Development subsequently collaborated with HWS to develop the PS FTHB Program. HWS currently manages similar programs countywide and will provide technical administration, underwriting, compliance monitoring, and reporting in cooperation with the City.
In preparation for implementation, City staff met with representatives from the Palm Springs Regional Association of Realtors (PSRAR). The representatives expressed full support and enthusiasm for the program, noting that it will fill a critical gap in affordability and access for local first-time buyers.
STAFF ANALYSIS:
The Palm Springs FTHB Program will provide down payment assistance of up to fifty percent (50%) of the home’s purchase price, not to exceed $200,000, structured as a silent second mortgage with a 15-year affordability term. The loan is forgivable if the homeowner maintains the property as a primary residence for the full 15-year term.
Housing and Workforce Solutions
HWS was established in 2020 by the Riverside County Board of Supervisors to expand social and economic opportunities across Riverside County. HWS brings together several long-standing County departments, including the Housing Authority of the County of Riverside (HACR), Riverside Community and Housing Development (CHD), Riverside County Workforce Development (WD), the Community Action Partnership of Riverside County (CAP), and the Office of Homeless Solutions (OHS).
The County has administered down payment assistance programs since 1992 through HUD HOME and State PLHA funding sources. Over the years, these programs have assisted hundreds of first-time homebuyers in achieving homeownership. Currently, HWS Item 3C - Page 2
City Council Staff Report
October 22, 2025 -- Page 3
First Time Homebuyer Downpayment Assistance
also manages the City of Palm Springs PLHA Down Payment Assistance Program, through which three families have successfully purchased homes in the City. In addition, HWS collaborated with the City and regional partners on the Aloe Palm Canyon affordable housing development, a newly completed 71-unit project serving low-income and formerly homeless seniors, further demonstrating the County’s ongoing commitment to local housing initiatives.
City and County Collaboration
The City of Palm Springs will collaborate closely with HWS to administer and promote the First Time Homebuyer Program. As outlined in the Cooperative Agreement’s Scope of Work (Attachment B), HWS will coordinate with City staff on all operational components, including client eligibility review, targeted marketing, and leveraging other County resources to reach eligible households. HWS will also partner with City staff to conduct community outreach, particularly with Section 14 groups and Palm Springs based nonprofits, host informational sessions, and track program outcomes to ensure transparency and accountability.
The proposed Agreement outlines the roles, responsibilities, and financial commitments of both the City and HWS for the successful implementation of the PS FTHB program.
HWS will manage all operational aspects of the PS FTHB program, including but not limited to:
• Developing marketing strategies
• Hosting informational sessions
• Processing applications
• Qualifying homebuyers
• Providing HUD-certified homebuyer counseling
• Coordinating with lenders and real estate professionals • Disbursing funds
• Post-purchase follow-up
• Providing reports to the City.
Attachment B provides the detailed scope of work.
Priority and use of funds
Upon initial launch of the Program, twenty percent (20%) of the total funding allocation shall be reserved exclusively for eligible Section 14 survivors and descendants for the first sixty (60) days of program rollout annually. After the initial 60-day reservation period, if additional funding remains and the overall waitlist or assistance requests exceed the remaining eighty percent (80%) allocation, program funds shall be distributed on a fiftyfifty (50/50) basis between eligible Section 14 survivors and descendant applicants and other qualified Palm Springs residents. All approved applicants including Section 14 survivors and descendants, must utilize the awarded assistance within three (3) months of approval. The City may grant a one-time three-month (3) extension if the applicant Item 3C - Page 3
City Council Staff Report
October 22, 2025 -- Page 4
First Time Homebuyer Downpayment Assistance
provides satisfactory documentation of active negotiations on property purchase.
Program Structure
• Funding: $1,000,000 annually for up to ten (10) years from City Housing TOT funds.
• Administration: 10% ($100,000 annually) is allocated to HWS for program management.
• Program Disbursement: The remaining 90% ($900,000 annually) will be issued in four (4) equal installments of 22.5% each, based on performance and reporting compliance.
• Target Population: Eligible Palm Springs residents with household incomes up to 140% of Area Median Income (AMI), with a sixty-day (60) reservation period prioritizing Section 14 survivors and descendants.
• Affordability Term: 15 years; funds are recaptured if the property is sold or no longer owner-occupied during this period.
• Lenders: Participating lenders approved by HWS (see “Approved Loan Officers” list).
Attachment E provides a flow chart for processing and approving applicants.
This Agreement with HWS provides a vital mechanism for the City to effectively and efficiently deploy its housing funds to foster homeownership. It will lower financial barriers for low and moderate-income families and provides a tangible path to building equity and generational wealth. Furthermore, it establishes a meaningful program to address the historic displacement of residents from Section 14.
ENVIRONMENTAL ASSESSMENT:
Approval of this Ordinance is exempt from environmental review under the general rule in California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3). The activity is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment.
ALIGNMENT WITH STRATEGIC PLAN FRAMEWORK:
The Broad Goals in the Strategic Plan Framework that are addressed by this action are Housing, and Community Services. This item also addresses the Overarching Principles of Social Equity.
Item 3C - Page 4
City Council Staff Report
October 22, 2025 -- Page 5
First Time Homebuyer Downpayment Assistance
FISCAL IMPACT:
The Program will be funded from the City’s Housing TOT Fund at a total allocation of $1,000,000 per year for five (5) years, including a 10% administrative fee to HWS. No additional General Fund impact is anticipated.
REVIEWED BY:
Department Director: Jay Virata
City Attorney: Jeffrey S. Ballinger
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Cooperative Agreement Between the City of Palm Springs and Riverside County HWS
B. Exhibit 1 – Scope of Work
C. Exhibit 2 – Program Guidelines
D. Approved Lenders List
E. Program Workflow Diagram
F. Program Staff
G. PS FTHB Rent limits report
H. Palm Springs Section 14 Open Session
Item 3C - Page 5
ATTACHMENT A
Item 3C - Page 6
Cooperative Agreement Between RivCo HWS and CPS
First time Homebuyer Program
FY 2025/26
COOPERATIVE AGREEMENT
BETWEEN
THE COUNTY OF RIVERSIDE DEPARTMENT OF HOUSING AND WORKFORCE
SOLUTIONS
AND
THE CITY OF PALM SPRINGS
FOR FIRST TIME HOMEBUYER DOWNPAYMENT ASSISTANCE PROGRAM THIS COOPERATIVE AGREEMENT ("AGREEMENT") is entered into by and between the County of Riverside on behalf of its Department of Housing and Workforce Solutions (hereinafter "HWS") and the City of Palm Springs (hereinafter "CITY") and is based on the following representations and statements of purpose (collectively "Parties" and each a "Party").
A. WHEREAS, the purpose and intent of this AGREEMENT is to formalize a partnership between City and HWS to provide First Time Homebuyer Downpayment Assistance program (“Program”).
B. WHEREAS, the City seeks to address home ownership through Program.
C. WHEREAS, HWS has the expertise and staffing capacity to administer the Program as detailed in Exhibit 1 and Exhibit 2 of this AGREEMENT.
D. WHEREAS, the City and HWS will collaborate to ensure efficient program delivery, and coordination real estate transactions for the First Time Homebuyers.
E. WHEREAS, this AGREEMENT serves to outline roles, responsibilities, and financial commitments in the implementation of Program.
F. WHEREAS, through this Agreement, the Parties agree to set forth terms and conditions concerning the allocation, administration, and distribution of One Million Dollars and Zero Cents ($1,000,000.00) annually for five years from the CITY’S TOT Housing funds.
G. WHEREAS, these funds will enable HWS to continue managing a Program that provides assistance to qualified first time home buyers within the City of Palm Springs.
H. WHEREAS, HWS will assist the CITY in administering the Program and distributing funds for the Program in City of Palm Springs.
NOW, THEREFORE, Parties mutually agree as follows:
I. SCOPE OF SERVICE
The purpose of this AGREEMENT is to formalize collaboration between the City of Palm Springs and HWS to deliver First Time Homebuyer Downpayment Assistance services as detailed in Attachment 1 and Attachment 2.
II. PURPOSE
Item 3C - Page 7
Cooperative Agreement Between HWS and CPS
ERF Homeless Outreach Services
FY 2025/26
A. HWS provides a First Time Home Buyer Down Payment Program (PS FTHB). The primary objective of the Program is to assist first time homebuyers of moderate, low, and very low income. The Program will be available to Eligible Palm Springs residents who have not owned a home in the last three years, have an annual income that is no greater than 140% of the area median income as published by the U.S. Department of Housing and Urban Development (HUD), Priority will be given to individuals and descendants of Section 14.
B. This Program will provide down payment assistance as a silent-second loan to Eligible Applicants who are first-time home buyers in the amount of up to Two Hundred Thousand Dollars ($200,000). The maximum amount of assistance is the gap financing limit such that the housing payment to income ratio is between the range of twenty-five percent (25%) and thirty-five percent (35%), unless an exception with compensating factors is granted in advance by HWS. The total amount of down payment assistance cannot exceed $200,000. The first loan must be a fully amortized, fixed rate; thirty-year mortgage obtained through a PS FTHB participating lender and the HWS Assistance will be secured by a deed of trust recorded in second position to the first mortgage. The maximum DTI (back-end ratio) shall be no more than 45% of the borrower’s gross monthly income unless an exception with compensating factors is granted in advance by City. Regardless, ratios should not exceed 50/50 with CITY pre-approval with comp factors.
C. All buyers participating in this Program shall agree to the terms and conditions of an Affordability Period. The Affordability Period provides that if the property is no longer maintained as the principal residence of the buyer or is sold prior to the end of the Affordability Period, all City funds invested in the property must be repaid. Properties that remain affordable to program participants throughout the Affordability Period will have the City’s investment converted to a grant. This program is available to homes being purchased within the City of Palm Springs.
IV. TERMS
B. Disbursement of Funds. Upon execution of this Agreement, the City shall disburse funds to HWS on an installment basis, not to exceed a total of One Million Dollars ($1,000,000) annually in City Housing TOT Funds. Disbursements shall be made as follows:
1. Administrative Allocation: Ten percent (10%) of the total annual allocation ($100,000) shall be disbursed to HWS for administration of the program
2. Program Allocation: The remaining ninety percent (90%) ($900,000) shall be disbursed to HWS in four (4) equal installments of twenty-two and one-half percent (22.5%) each, based on approved invoices and documentation of eligible program expenditures
3. Each installment shall be contingent upon satisfactory performance, submission of required reports, and compliance with the terms of this Agreement
Item 3C - Page 8
Cooperative Agreement Between RivCo HWS and CPS
First time Homebuyer Program
FY 2025/26
C. Eligibility. Eligibility for the Program managed by HWS shall be limited to homeowners living within the jurisdictional boundaries of the CITY as further described as follows:
Home down payment assistance made available through this initiative will be reserved for first-time homebuyers who are Palm Springs residents with priority given to Section 14 survivors and descendants, and meet income qualifications—categorized as moderate, low, or very low income—within the city limits of Palm Springs, CA, as set forth in Attachment C.
D. Use of Unallocated Funds. Upon written request by the City Manager, HWS shall promptly return any City TOT Housing Funds that were unused or undistributed during the term of this Agreement to CITY.
E. Services Provided by HWS. HWS shall be responsible for performing the following services to operate and administer THE Program:
a. Identify first time homebuyers that are Eligible Applicants. The applicant must be the owner-occupant of the property. The property must be located within the City of Palm Springs.
b. Ensure participating homeowners enter fifteen (15) year covenant agreement that restricts the use of the property to an affordable single-family dwelling, encumbers the land and restricts the sale and future loans against the property for the duration of the agreement, and requires the property owner to provide continued maintenance of the entire property interior and exterior for the duration of the agreement.
F. Reporting Requirements. HWS shall provide the CITY with quarterly reports and one final report, in a format reasonably designated by the CITY, detailing (a) all applications received, processed, and approved; and (b) all amounts disbursed to qualifying homeowners.
In addition, the CITY reserves the right to require written reports from HWS, at reasonable intervals until all City TOT Housing Funds have been dispersed, and in a format reasonably designated by the CITY. These reports shall include, among other information, the receipts, use and disbursement of all City TOT Housing Funds. HWS as a sub recipient of the TOT Housing Funds shall cooperate with its implementing rules, regulations, reporting and recordkeeping requirements, including without limitation cooperation, as requested, in connection with the CITY’S preparation of interim reports, and project and expenditure reports.
III. FISCAL PROVISIONS
A. MAXIMUM AMOUNT AND SOURCE OF FUNDS
Total payment under this AGREEMENT will not exceed $1,000,000 per year for the duration of the approximate five-year Term, unless terminated as provided herein. This AGREEMENT shall be funded through City of Palm Springs Housing TOT Fund identified in the annual City of Palm Springs and HWS budgets and is subject to the funds Item 3C - Page 9
Cooperative Agreement Between HWS and CPS
ERF Homeless Outreach Services
FY 2025/26
being available in the City Budget for each year of operation. Total amount not to exceed $1 million annually inclusive of the administration fee and loan funds.
B. COMPENSATION
Administration Fee. The CITY shall pay to the COUNTY, through HWS, an annual administration fee equal to ten percent (10%) of the total Program funds allocated each year under this Agreement. The administration fee shall be payable from the City of Palm Springs Housing TOT Fund upon execution of this Agreement and annually thereafter for the duration of the Term.
Disbursement of Down Payment Assistance Funds. Reimbursements for down payment assistance provided under the Program shall be made by the CITY to the COUNTY in installments equal to twenty-two and one half percent (22.5%) of the total allocation at a time. Each installment shall be transmitted upon request of HWS, provided that HWS submits appropriate documentation of disbursements, loan activity, and Program compliance.
V. GENERAL PROVISIONS
A. TERM
The term of this Agreement shall commence on the Effective Date and shall continue for an initial period of five (5) years, unless earlier terminated by either Party or unless all City TOT Housing Funds have been distributed by HWS, as set forth in this Agreement.
At the conclusion of the initial five-year term, the City shall have the option, in its sole discretion, to extend the Agreement for one (1) additional period of up to five (5) years, for a total potential term of ten (10) years. Any such extension shall be confirmed in writing and executed by both Parties prior to the expiration of the initial term.
B. ALTERATION OF TERMS AND ENTIRE AGREEMENT
The body of this AGREEMENT fully expresses all understanding of the parties concerning all matters covered and shall constitute the total AGREEMENT. No addition to, or alteration of, the terms of this AGREEMENT, whether by written or verbal understanding of the parties, their officers, agents, or employees, shall be valid unless made in the form of a written amendment to this AGREEMENT, which is formally approved and executed by Participants.
C. AMENDMENTS
If either party desires to amend the terms of this AGREEMENT, Participants will comply with the terms of this AGREEMENT until such time as the amendment is approved or Item 3C - Page 10
Cooperative Agreement Between RivCo HWS and CPS
First time Homebuyer Program
FY 2025/26
formal action is taken by the County of Riverside Board of Supervisors and the City of Palm Springs’ City Council.
D. TERMINATION
This AGREEMENT may be terminated by either party by giving 30 days written notice by certified mail of intention to terminate, such period beginning upon receipt of notice, and may be terminated for cause, such as a willful and/or material breach of the AGREEMENT by either party by giving five (5) days written notice of intention to terminate by certified mail.
E. NOTICES
All notices, claims, correspondence, reports, and/or statements authorized or required by this AGREEMENT shall be addressed as follows:
HWS: County of Riverside
Department of Housing and Workforce
Solutions
3403 Tenth Street, Suite 300
Riverside, CA 92501
PALM SPRINGS: City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262-6959
Attn: City Manager
Unless the persons or addresses are otherwise identified by notice given in the manner specified by this paragraph, all notices shall be deemed effective when they are reduced to writing and either deposited in the United States mail, postage prepaid, and addressed as above, or (ii) sent by email to the designated email addresses provided by the parties. Any notices, correspondences, reports, and/or statements authorized or required by this AGREEMENT addressed in any other fashion shall not be acceptable.
VI. MISCELLANEOUS PROVISIONS
A. SEVERABILITY: If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
B. HOLD HARMLESS-INDEPENDENT PARTNER: It is understood and agreed PALM SPRINGS is an independent entity and that no relationship of employer- employee exists between the parties hereto. PALM SPRINGS shall not be entitled to any benefits payable to employees of the County of Riverside or HWS, including County Workers' Compensation Benefits. HWS is not required to make any deductions from the compensation payable to PALM SPRINGS under the provisions of this AGREEMENT; and as an independent entity, PALM SPRINGS hereby hold HWS and/or the County of Riverside harmless from any and all claims that may be made against HWS and/or County Item 3C - Page 11
Cooperative Agreement Between HWS and CPS
ERF Homeless Outreach Services
FY 2025/26
of Riverside based upon any contention by any third party that an employer-employee relationship exists by reason of this AGREEMENT.
C. INSURANCE-INDEMNIFICATION: Each party hereto agrees to indemnify and hold harmless the other party, its agency, officers, agents and employees, free and harmless from any liability whatsoever, including wrongful death, based or asserted upon any acts or omission of such Indemnifying Party, relating to or in any way connected with or arising from the accomplishment of the work by the Indemnifying Party.
Each party further agrees to protect, indemnify and defend at it expense including attorney fees, the other party, its agency officers, agents and employees in any legal action(s) or claim(s) based upon such alleged acts or omissions whether the subject action(s) or claim(s) are well-founded, properly filed or pleaded, or not commenced in a court of competent jurisdiction.
Without limiting such indemnification, each party shall always maintain in force during the performance of this AGREEMENT, insurance policies evidencing coverage during the entire term of the AGREEMENT as follows:
1. General liability insurance in the amount of not less than $1,000,000 per occurrence and aggregate.
2. Workers' Compensation insurance in accordance with statutory requirements.
3. If motor vehicles are used pursuant to this AGREEMENT, not less than $1,000,000 combined single limit for damage to property and injury to persons.
These requirements may be met by a program of self-insurance.
D. RECORD RETENTION: PALM SPRINGS agrees to retain all records pertaining to this AGREEMENT for a period of three years after termination of this AGREEMENT, or such federal and state provisions in effect. If, at the end of three years, there is ongoing litigation or an audit involving those records, HWS shall retain the original records until the resolution of such litigation or audit; PALM SPRINGS shall retain copies of the records until the resolution of such litigation or audit.
E. JURISDICTION, VENUE, ATTORNEY'S FEES: This AGREEMENT is to be construed under the laws of the State of California. The parties agree to the jurisdiction and venue of the appropriate courts in the County of Riverside, State of California. Should action be brought to enforce or interpret the provisions of this AGREEMENT, the prevailing party shall be entitled to attorney's fees in addition to whatever other relief is granted.
Item 3C - Page 12
Cooperative Agreement Between RivCo HWS and CPS
First time Homebuyer Program
FY 2025/26
SIGNATORIES
HWS and CITY OF PALM SPRINGS mutually agree to fully and faithfully perform all applications set forth in this AGREEMENT. Both parties agree to have their duly authorized signatories sign this AGREEMENT.
COUNTY ADDRESS: INFORMATION COPY:
County of Riverside County of Riverside
Board of Supervisors Department Housing and Workforce Solutions 4080 Lemon Street, 5th Floor
Riverside, CA 92501 3403 Tenth Street, Suite 300
Riverside, CA 92501
CITY OF PALM SPRINGS COUNTY OF RIVERSIDE:
Signed
Scott C. Stiles _____________, Chairman
City of Palm Springs Riverside County Board of Supervisors Title: City Manager
Date: Date
ATTEST: ATTEST:
City Clerk Clerk of the Board
Deputy: Deputy:
City of Palm Springs
PO Box 2743
3200 E Tahquitz Canyon Way
Palm Springs, CA 92263
CITY ATTORNEY: COUNTY COUNSEL:
Approved as to Form __________________ Approved as to Form By: By:
City Attorney Deputy County Counsel
Item 3C - Page 13
ATTACHMENT B
Item 3C - Page 14
1 EXHIBIT 1
SCOPE OF WORK
SUMMARY
Riverside County, Department of Housing and Workforce Solutions (HWS) is committed to delivering essential, high-quality services to help individuals and families secure decent, safe, and affordable homeownership opportunities and operates such programs to help households build long term stability and wealth by lowering financial barriers, providing more accessible mortgage options, and providing education and support to first time homebuyers.
HWS will support Palm Springs’ (City) First Time Homeownership Program (Program) by providing the following services.
1. Coordination with City: HWS will work with City to coordinate program operations including participating in coordination calls, client eligibility review, targeted marketing, and leveraging other HWS resources that may be available to help first time homebuyer clientele.
2. Develop a comprehensive marketing strategy targeting eligible households. Create multilingual materials (flyers, brochures, infographics). Advertise via local radio, community events, newspapers, and social media. Partner with local nonprofits, employers, and schools to disseminate information.
3. Outreach to Section 14 and Palm Springs Community. HWS, in coordination with the City, shall work with Section 14 community groups, nonprofits, and other local partners to conduct outreach and provide information about the Program. Outreach will also include efforts to reach Palm Springs residents who may be eligible to participate.
4. Receive Applications for Program Participation: Set up a secure online application system and/or accept in-person submissions. Provide application checklists and instructions. Offer assistance to applicants needing help completing forms.
5. Organize and Host Information Sessions: Schedule regular virtual and in-person information sessions. Present program details including eligibility, benefits, and the application process. Offer Q&A segments and distribute informational packets.
6. Maintain Website and Social Media Presence: Develop and update a user-friendly website with current program info, FAQs, and contact info. Post updates, success stories, and reminders via Facebook, Twitter, Instagram, etc. Track user engagement and respond to inquiries online.
7. Qualify the Homebuyer: Review applications for eligibility (income, first-time buyer status, credit history, Section 14 history, etc.). Confirm compliance with program guidelines set by the City and funding sources. Issue conditional approvals.
Item 3C - Page 15
2 8. Collect Applicant Documents: Request and securely store required documents (tax returns, pay stubs, credit reports, etc.). Verify authenticity and completeness. Use a case management system to organize document submissions.
9. Provide Homebuyer Counseling: Coordinate or deliver HUD-certified pre-purchase counseling sessions. Cover budgeting, credit, mortgage readiness, and rights/responsibilities of homeownership. Track completion as a program requirement.
10. Conduct Home Maintenance Workshops: Organize educational workshops (in-person or virtual) on basic home maintenance topics. Partner with contractors or building inspectors to provide expert guidance. Provide materials and resources for ongoing homeowner upkeep.
11. Program Administration and Management: Develop policies and procedures manual for program operations. Hire and train staff. Prepare budgets, track expenses, and report to City.
Maintain records for audits and funding compliance.
12. Coordinate with Lenders, Real Estate Agents, Home Inspectors, and Other Providers:
Establish partnerships with lenders and agents. Provide program briefings to industry professionals. Create a list of approved providers for applicants and City.
13. Disburse Funds for Down Payment Assistance: Coordinate fund disbursement with escrow companies at closing. Ensure all documentation is completed before disbursement. Track funds distributed and ensure they are used as intended.
14. Monitor Program Outcomes: Track data such as home purchase prices, buyer demographics, and default rates. Evaluate impact of assistance (e.g., neighborhood stabilization, buyer satisfaction). Prepare outcome reports for City.
15. Ensure Compliance with Fair Housing Laws: Train staff and partners on fair housing requirements. Monitor for discriminatory practices in marketing or service delivery. Notify City of complaints or violations and respond to the offending party.
16. Provide Resources and Referrals for Post-Purchase Needs: Connect buyers with local services (e.g., home repair grants, utility assistance). Develop a resource guide. Offer followup contact info for ongoing support.
17. Follow Up to Ensure Success: Conduct check-ins at 6, 12, and 24 months post-purchase.
Survey participants about satisfaction and needs. Offer intervention or counseling if issues arise.
18. Create Client Files: Maintain digital and/or physical files for each client. Include application, income verification, counseling certificates, and legal documents. Ensure files are audit-ready and secure. Provide City with access to files.
19. Track Payment/Forgiveness History: Monitor terms of downpayment assistance (e.g., deferred loans, etc.). Track compliance with residency requirements. Send reminders and update records as milestones are met.
Item 3C - Page 16
ATTACHMENT C
Item 3C - Page 17
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
RIVERSIDE COUNTY
HOUSING AND WORKFORCE SOLUTIONS
PALM SPRINGS
FIRST TIME HOME BUYER DOWN PAYMENT ASSISTANCE
PROGRAM
LENDER'S MANUAL
This Manual provides the policies and procedures for the implementation of Riverside County's Palm Springs First Time Home Buyer Down Payment Assistance Program, as established by Riverside County Board of Supervisors and the City of Palm Springs. In addition to these guidelines, the Palm Springs First Time Home Buyer Down Payment Assistance Program (PS FTHB) will be administered according to the rules and regulations of the program. In the event of a conflict between this Manual and the PS FTHB rules, the PS FTHB rules shall take precedence. The policies and procedures contained within this Manual are intended to implement the Palm Springs First Time Home Buyer Down Payment Assistance Program established by the Board of Supervisors and City of Palm Springs.
Item 3C - Page 18
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025 (i)
HOUSING AND WORKFORCE SOLUTIONS
PALM SPRINGS FIRST TIME HOME BUYER DOWN PAYMENT ASSISTANCE PROGRAM
POLICIES AND PROCEDURES HANDBOOK
Prepared by:
Riverside County
Housing and Workforce Solutions
[email protected]
October 22, 2025
Mailing Address:
Riverside County
Housing and Workforce Solutions
3403 Tenth Street, Suite 300
Riverside, CA 92501
https://rivcohws.org/housing-programs
Item 3C - Page 19
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
(ii)
RIVERSIDE COUNTY
HOUSING AND WORKFORCE SOLUTIONS
PALM SPRINGS FIRST TIME HOME BUYER DOWN PAYMENT PROGRAM
LENDER'S MANUAL
Table of Contents
A. INTRODUCTION............................................................................................................................... 1 B. GENERAL ELIGIBILITY REQUIREMENTS.................................................................................. 1 a. Eligible Properties................................................................................................................. 1 b. Characteristics of the Home Buyer....................................................................................... 4 c. Determination of Annual Gross Income ............................................................................... 5 d. Assets.................................................................................................................................... 5 C. GENERAL LOAN REQUIREMENTS .............................................................................................. 6 a. First Loan Requirements....................................................................................................... 6 b. Affordability Period.............................................................................................................. 6 c. Home Buyer Education......................................................................................................... 7 d. Types of Down Payment Assistance..................................................................................... 7 e. Minimum and Maximum Assistance .................................................................................... 7 f. Notifications.......................................................................................................................... 7 g. Confidentiality ...................................................................................................................... 8 h. Resales.................................................................................................................................. 8 i. Subordination........................................................................................................................ 8 j. Payoff Demands.................................................................................................................... 8 k. Refinancing........................................................................................................................... 8 l. Title Insurance ...................................................................................................................... 9 m. Property Maintenance Requirements.................................................................................... 9 n. Loss Payee ............................................................................................................................ 9 o. Auditing and Monitoring ...................................................................................................... 9 p. Conflict of Interest................................................................................................................10 D. PARTICIPATING LENDERS............................................................................................................10 a. Requirement..........................................................................................................................10 b. Selection ...............................................................................................................................10 c. Brokers..................................................................................................................................10 d. Removal................................................................................................................................ 11 e. Authorized Lender Staff ....................................................................................................... 11 E. PROCESSING PROCEDURES ......................................................................................................... 11 a. Pre-Qualification Phase ........................................................................................................ 12 b. Reservation Phase ................................................................................................................. 12 c. Request for Funding Phase ................................................................................................... 15 d. Resubmission of Denied Applications.................................................................................. 16 e. Changes in Information......................................................................................................... 16 Item 3C - Page 20
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025 (iii)
APPENDICES .................................................................................................................................................18 Appendix A - Income and Property Value Limits............................................................................. 19 Appendix B - Participating Jurisdictions........................................................................................... 20 Appendix C - Calculating Annual Income ........................................................................................ 21 Appendix D - First Time Home Buyer Program Definitions............................................................ 26
Item 3C - Page 21
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
A. INTRODUCTION
a. Purpose
i. In partnership with the City of Palm Springs, the Riverside County Housing and Workforce Solutions (HWS) Department is offering down payment assistance through the Palm Springs First Time Home Buyer Program. This program is specifically designed for current residents of the City of Palm Springs, with priority given to Section 14 survivors and descendants. Its primary goal is to expand affordable housing opportunities for Palm Springs residents, particularly those impacted by the Section 14 settlement. Home down payment assistance made available through this initiative will be reserved for first-time homebuyers who are Palm Springs residents with priority given to Section 14 survivors and descendants, and meet income qualifications—categorized as moderate, low, or very low income—within the city limits of Palm Springs, CA. Eligible applicants must not have owned a home in the past three years and must have an annual household income at or below 140% of the area median income, as defined by the U.S. Department of Housing and Urban Development (HUD).
ii. This Program will provide down payment assistance as a silent-second loan to moderate, low, and very low-income to Palm Springs Residents and with priority given to Section 14 Survivors and descendants first-time home buyers in the amount of up to Two Hundred Thousand ($200,000). The maximum amount of assistance is the gap financing limit such that the housing payment to income ratio is between the range of twenty-five percent (25%) and thirty-five percent (35%), unless an exception with compensating factors is granted in advance by HWS. The total amount of down payment assistance cannot exceed $200,000. The first loan must be a fully amortized, fixed rate; thirty-year mortgage obtained through an PS FTHB participating lender and the HWS Assistance will be secured by a deed of trust recorded in second position to the first mortgage. The maximum DTI (back-end ratio) shall be no more than 45% of the borrower’s gross monthly income unless an exception with compensating factors is granted in advance by HWS. Regardless, ratios should not exceed 40/50 with HWS pre-approval with sufficient and acceptable compensating factors. iii. All buyers participating in this Program shall agree to the terms and conditions of an Affordability Period. The Affordability Period provides that if the property is no longer maintained as the principal residence of the buyer or is sold prior to the end of the Affordability Period, all City funds invested in the property must be repaid. Properties that remain affordable to program participants throughout the Affordability Period will have the Agency’s investment converted to a grant. This program is available to homes being purchased by Palm Springs residents with priority given to Section 14 survivors and descendants, and only within the Palms Springs, California city limits. A Palm Springs resident is a person whose primary residence is located within the incorporated city limits of Palm Springs, California, as demonstrated by property ownership or a legal lease, and whose occupancy can be verified by documentation such as utility bills, property tax records, or voter registration.
iv. Upon initial launch of the Program, twenty percent (20%) of the total funding allocation shall be reserved exclusively for eligible Section 14 survivors and descendants for the first sixty (60) days of program rollout annually. After the initial 60-day reservation period, if additional funding remains and the overall waitlist or assistance requests exceed the remaining eighty percent (80%) allocation, program funds shall be distributed on a fifty-fifty (50/50) basis between eligible Section 14 survivors and descendant applicants and other qualified Palm Springs residents. All approved applicants including Section 14 survivors and descendants, must utilize the awarded assistance within three (3) months of approval. The City may grant a one-time three-month (3) extension if the applicant provides satisfactory documentation of active negotiations on property purchase. b. PS FTHB Program
Item 3C - Page 22
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
i. As previously mentioned, the Palm Springs First Time Home Buyer Program (PS FTHB) Program is a funded grant program intended to increase affordable housing stock, and provide restorative justice, in the city of Palm Springs, California for eligible residents and priority given to Section 14 survivors and descendants.
ii. Riverside County in partnership with the City of Palms Springs has agreed to manage the PS FTHB.
The County will receive funding from the City of Palm Springs to manage this program... The PS FTHB Program is one of the activities that the City of Palm Springs is funding with PS SEC 14 funds. Due to the use of PS SEC 14 funds to operate the PS FTHB Program, several requirements apply to this program, as explained in this manual.
B. GENERAL ELIGIBILITY REQUIREMENTS
a. Eligible Properties
i. Location. The PS FTHB Program is only available within the city limits of Palm Springs, California. ii. Price Limits. To be eligible for the PS FTHB Program, the maximum property value shall not exceed the published maximum sales price limit for the current fiscal year. If any improvements are included in the purchase transaction, both the after-rehab value of the home and the actual purchase price cannot exceed this limit.
iii. Type of Home. The PS FTHB program may be used to purchase any new or resale single family home, condominium/town home or a manufactured home that meets all the following minimum criteria:
1. Traditional or private party sales, Real Estate Owned (REO) or foreclosed properties, and short sales are acceptable; however, PS FTHB applications for short sales may only be submitted upon full approval from seller’s lender(s).
2. The home is permanently fixed to a permanent foundation system of supports that can transfer all design loads to the ground, meets the Manufactured Home Construction and Safety Standards, connected to permanent utility hook-ups, and located on land that is owned or leased; and
3. A manufactured home in a mobile home park must meet the Riverside County permit standards, and the manufactured home has received an installation acceptance permit. The manufactured home must be no older than 20 years – unless obtaining an advance exception approval from RivCo.
4. The home has a minimum of two (2) bedrooms for single family residences, and one (1) bedroom for condominiums; and
5. The home is currently occupied by the Seller or vacant. If a vacant property was previously occupied by tenants, the tenant must have been given 90 days’ written notice to vacate at least 90 days prior to the initial offer to purchase or the property is ineligible. Tenant occupied properties are always ineligible unless the tenant is purchasing the unit in which they reside.
6. In addition, the following additional criteria apply to newly constructed homes:
a. The value of a newly constructed home shall be established by an appraisal prepared by a qualified appraiser on Fannie Mae Form 1004. Whenever possible comparative properties should include homes located outside of the subject tract.
Master Endorsements of Value will not be accepted.
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b. The home must be in sound condition and suitable for occupancy upon purchase as determined by HWS. The purchaser must reside in the home as his or her principal residence within sixty (60) days of purchase and the home shall not be used as a business, rental nor as a vacation (second) home.
7. In-ground Pools and Spas. Single-Family homes with in-ground pools or spas will be allowed, if they meet the appraiser’s specifications that they are “built in a workmanlike manner”. Appraiser and Home Inspector to not call out any issues on said inground pool/spa.
iv. Home Condition. A home shall not be eligible for purchase under this program unless it is in standard condition and suitable for occupancy upon purchase. Under no circumstances shall a home be modified or altered to qualify as a home that is otherwise an ineligible property after submittal of a PS FTHB application to HWS. The following procedures will be used to determine if the home meets these requirements:
1. Existing Homes
a. All purchasers of existing homes must obtain a licensed home inspection report and licensed lender appraisal, prepared according to industry standards. Any deficient items affecting habitability and health and safety conditions of the home that are noted in the home inspection, the purchase agreement, and/or the appraisal, shall be corrected prior to the close of escrow. All PS SEC 14 assisted housing must meet all applicable State and local standards and code requirements. HWS can rely on a Minimum Property Standards (MPS) inspection performed by a qualified person, such as an independent licensed appraiser and an independent licensed home inspector. However, subject property may also be subject to an HWS inspection to confirm that property complies with building codes and standard building practices. Any home, which does not meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances to ensure the home is decent, safe, and sanitary, will be disqualified from purchase under this program.
b. New Construction. PS SEC 14 assisted new construction or rehabilitation must meet, as applicable, one of the three model codes: Uniform Building Code (ICBO), National Building Code (BOCA), Standard (Southern Building Code (SBCCI); or the Council of American Building Officials (CABO) one- or twofamily code; or the Minimum Property Standards (MPS) in 24 CFR 200.925 or 200.926.
c. FHA 203k. 203k loan type exceptions, at this point, are only being considered on a case-by-case basis, with the approved exception being requested and obtained prior to application submittal.
d. Inspection Process. Home Inspections are to be performed by qualified Home Inspection Professionals in accordance with industry standards. Home Inspectors who are members of the California Real Estate Inspectors Association, the American Society of Home Inspectors, the International Association of Certified Home Inspectors, or the International Conference of Building Officials will be presumed to be qualified. Typically, Home Inspections are 7 to 15 pages in length and utilize a checklist with explanations of any items that need work or are not in standard condition. It is strongly advised that the home buyer accompany the Home Inspector during the inspection. The Home Inspector will provide guidance on maintenance requirements and will explain any items that need work.
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e. Repair Requirements. HWS will review the Home Inspection Report, Termite Report, and appraisal, then prepare a list of required repairs. That list of required repairs is sent by HWS to the lender. The lender and buyer need to ensure that the home meets their requirements and that any repairs have been completed to their satisfaction, prior to funds release. HWS will only review these documents for safety and habitability concerns, not cosmetic items.
f. Lender Certification. The Lender is required to certify that any HWS required repairs have been completed pursuant to the Home Inspection Report, appraisal, and termite report, prior to close of escrow. The Lender is also responsible for ensuring that the repairs have been completed to the buyer’s satisfaction. The Lender needs to satisfy itself that the repairs have been done before making this certification. The way the lender is to make this certification is the Lender will need to provide HWS with a signed letter from a licensed contractor or the original home inspector on company letterhead, itemizing repairs that have been done.
2. New Homes
a. All newly constructed homes shall receive a Certificate of Occupancy. Certificate of Occupancy must be submitted prior to the request for funding. In addition, the Seller must agree to have all operating systems and fixtures (plumbing, electricity, etc.), as well as floor coverings and similar items, installed and fully operational prior to the request for funding. Newly constructed homes may be subject to an HWS inspection to confirm that they comply with building codes and standard building practices.
v. Any HWS inspection on resale homes must occur no earlier than 90 days before the funding and recording of PS SEC 14 assistance in order to verify that homes purchased through the Program meet required property standards, are in standard condition, and suitable for occupancy. vi. Occupancy Standard. One of the purposes of the PS FTHB Program is to address persistent conditions of housing overcrowding in the city of Palm Springs. Therefore, the County is requiring that all homes have a minimum of two bedrooms in order to be eligible for this Program. In addition, The Housing Quality under 982.401 (1) states that “The dwelling unit must have at least one bedroom or living/sleeping room for each two persons. Children of opposite sex, other than very young children, may not be required to occupy the same bedroom or living/sleeping room.” b. Characteristics of the Home Buyer
i. Income Limits. In order to be eligible for this program, the purchasers’ annual income shall not exceed 140% of the area median income, as determined by HUD, adjusted for household size. In addition, family assets, excluding personal property, funds in restricted retirement accounts, and funds to be used for the home purchase, shall not exceed 6 times the household’s monthly gross income as determined by using HUD income guidelines for the PS FTHB program. The income and assets of all persons residing in the home must be included in the calculation to determine income eligibility. The current income limits are shown in Appendix A. See item c below for instructions on calculating annual income.
ii. Co-owners. Co-owners are only permitted if they will occupy the home as their principal residence and qualify as first-time buyers. The income of all co-owners will be included in determining if the household qualifies as moderate, low, and very low income, as noted in 1 above, as well as appendices A and C. Non occupying co-signers are not permitted. iii. Minimum Buyer Investment. PS FTHB requires no minimum buyer down payment out of pocket.
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first mortgage. The buyers’ contribution may be used toward the down payment or closing costs, at their discretion and in accordance with the requirements of the first mortgage. iv. Prior Home Ownership Criteria. In order to qualify as a first-time home buyer, the purchaser and purchaser’s spouse cannot have had ownership interest in unimproved residential real property for the previous three years from the date of application to the PS FTHB Program nor have any mortgage or real estate related credit report entries nor tax deductions. The purchaser and their spouse must attest that they have not had ownership interest in improved-upon, residential real property during the past 3 years, nor filed any mortgage or real estate related tax deductions, nor credit mortgage tradelines, and provide the most recent federal tax returns and RMCR credit report for review. If tax returns or credit reports show evidence of mortgage or real estate related expenses or deductions, documentation must be provided evidencing that the expenses/deductions are not related to improved-upon real residential property and acceptable documentation must also be provided establishing the value of the property in question. v. Vacant, unimproved land is permitted. However, the value of the vacant land needs to be included as part of the asset calculation.
vi. Asset “income” from the property must be imputed using the HUD passbook rate and added into household’s total qualifying income. If the total assets exceed the program’s limit, the assets must be spent down accordingly. The maximum buyer asset contribution limit will be such to cause the projected housing payment to income ratio to fall between the range of twenty-five percent (25%) and thirty-five percent (35%), unless an exception with compensating factors is granted in advance by HWS. Regardless, ratios should not exceed 40/50, with HWS pre-approval and sufficient acceptable compensating factors. Assets (including property) disposed of for less than fair market value during the most recent 2-year period are counted as if the household still owned the asset. vii. Displaced homemakers and single parents, as defined by Appendix D, must also meet the first-time buyer requirement, unless they obtain an exception in advance from HWS. Exceptions are not guaranteed and are reviewed on a case-by-case basis.
viii. For the purpose of determining home ownership, a dwelling unit that was not permanently affixed to a permanent foundation (i.e., a mobile home) shall be not included in the three-year requirement. ix. All household members must provide documentation on citizenship status. All household members must be either a US Citizen, a qualified alien as per Section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA),. Approved lender to certify borrower meets the citizenship requirements of the 1st mortgage (Fannie/Freddie/FHA/VA), with the inclusion of matching Automated Underwriter printout.
c. Determination of Annual Gross Income
i. The PS FTHB Program is limited to buyers with an annual income that is one hundred and forty percent (140%) or less of the area median income, as determined by HUD. Annual income is the gross amount of income anticipated to be received by all household members over the age of 18 years who are receiving income and will reside in the home during the twelve months following the effective date of the determination. Anticipated income is generally determined by current income for the next twelve months. Current income is determined by examination of income source documents for the last two months (e.g., wage statement, interest statement, unemployment compensation statement). The annual income for purposes of qualifying for the PS FTHB Program includes all income and may be higher than the income amount utilized by the lender to underwrite the first mortgage. Non-taxable income, such as social security, should not be grossed up for the purposes of PS FTHB qualifying income.
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ii. Annual income includes anticipated income from assets. Please see Appendix A for an explanation of how to determine income from assets. The current passbook rate established by HUD is found on our FTHB forms.
iii. For a detailed explanation of how to calculate various types of income, please see Appendix C. d. Assets
i. In addition to income, family assets (excluding personal property, funds in restricted retirement accounts, and funds to be used for the home purchase) shall not exceed 6 times the household’s monthly gross income as determined by using HUD income guidelines for the PS FTHB Program.
The homebuyer shall expend any amount that exceeds 6 times the anticipated 1st mortgage payment PITI for down payment or closing costs towards purchase of the home. The maximum buyer asset contribution limit will be such that the housing payment to income ratio is between the range of twenty-five percent (25%) and thirty-five percent (35%), unless an exception with compensating factors is granted in advance by HWS. Regardless, ratios should not exceed 40/50, with compensating factors. Note that County does not have a minimum reserve requirement. See Appendix C for a detailed explanation of the items to be included and excluded from assets.
C. GENERAL LOAN REQUIREMENTS
The following minimum requirements shall apply to all purchases receiving assistance through the PS FTHB Program. a. First Loan Requirements
i. The purchaser shall apply for a first mortgage from a participating lender and provide a minimum investment of the amount required by the applicable federal state. The first mortgage must be a fully amortized, fixed rate, thirty-year term FHA 203(b), FHA 203(k), Fannie Mae, Freddie Mac, VA, or USDA mortgage. The purchaser must accept the highest first mortgage amount (principal amount at going interest rate) for which they can qualify. Lenders should provide buyers with the best possible interest rate available at the time their loan rate is locked. In general, the participating lender shall be responsible for determining the buyers’ creditworthiness and qualifications for obtaining the first mortgage. However, the following minimum criteria must be satisfied:
1. The buyer shall provide a minimum investment of the amount required by the first mortgage. This minimum investment may be applied to the down payment and/or closing costs, at the discretion of the borrower and in accordance with the requirements of the first mortgage. The lender shall verify that the buyer has sufficient funds to meet this requirement. In cases where a borrower has saved cash at home, the lender shall document these savings in accordance with standard underwriting practices.
2. The first loan amount shall be the maximum amount for which the borrower can qualify, based on their income, debts, and current interest rates. The total monthly payment (PITI:
principal, interest, taxes, insurance PMI, and HOA, if applicable) shall not be less than 25% nor more than 35% of the borrower’s gross monthly income for a -year loan, unless an exception with compensating factors is granted in advance by HWS. Regardless, top ratios, even with an exception preapproval, cannot exceed 40/50.
3. The lender for the first loan must establish an impound account for the loan to pay property related expenses such as payment of property taxes and insurance.
4. The maximum debt-to-income ratio shall be no more than 45 percent of the borrower’s gross monthly income unless an exception with sufficient and acceptable compensating factors is granted in advance by HWS. Regardless, ratios cannot exceed 40/50 with RivCo pre-approval with compensating factors. Co-signed, deferred, and secured loans shall be Item 3C - Page 27
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included in the determination of the debt-to-income ratio unless paid or refinanced by a joint responsible party prior to/or at close of escrow. ii. The participating lender may only assess those usual and customary fees and charges that would be assessed for a buyer with the same type of first mortgage who is not participating in the PS FTHB Program. No additional lender fees may be charged for processing of a loan in conjunction with the PS FTHB Program.
b. Affordability Period
i. In exchange for receiving funds to assist in the purchase of a home, the purchaser must sign PS FTHB loan documents, including a Promissory Note, Borrower Disclosure Statement, Subordinate Deed of Trust, and Covenant Agreement which will provide that, upon sale, transfer, lease, or any other disposition, including refinancing or incurring of additional debt secured by the home, within 15 years of purchase, the principal amount of the PS FTHB Assistance is repaid to the HWS. After the Affordability Period, the HWS Assistance is converted to a grant, and these obligations are forgiven.
c. Home Buyer Education
i. In order to be eligible for participation in the PS FTHB Program, prospective purchasers must complete HUD‘s minimum requirements for first time homebuyer education in a Community Home Buyer's Education Seminar by a HUD approved provider, and as also approved by the HWS. HUD and RivCo require homebuyer education providers to be pre-approved and listed in HUD’s provider database, where the applicant will choose from, and RivCo will verify from. https://hud4.my.site.com/housingcounseling/s/?language=en_US Buyers should complete this requirement as soon as possible in the purchase process. Note that completion certificates expire after one (1) year.
d. Types of Down Payment Assistance
i. The PS FTHB financial assistance is provided as down payment assistance. Buyers must make a minimum contribution necessary to comply with any applicable federal or state requirements. In addition, the buyer needs to satisfy the requirements of the first mortgage, which may require the borrower to pay a minimum down payment and certain other costs. PS FTHB requires no minimum buyer down payment out of pocket and the maximum buyer down payment must not exceed the assistance amount requested.
e. Minimum and Maximum Assistance
i. The minimum amount of assistance that may be provided is $1,500 per home purchase. The maximum amount of assistance is the gap financing limit such that the housing payment to income ratio is between the range of twenty-five percent (25%) and thirty-five percent (35%), unless an exception with compensating factors is granted in advance by HWS. The absolute maximum loan amount is $200,000 for down-payment assistance. The absolute maximum ratio WITHOUT an approved exception is 35/45, and WITH an exception 40/50. The total assistance provided shall not exceed fifty percent (50%) of the purchase price of the home or $200,000, whichever is less. f. Notifications
i. The following notifications are required for participation in this program:
1. Homeownership Notice to Sellers and Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards (PS FTHB 14-3). This notice shall be provided to the Sellers at the time a purchase offer is initiated or at the earliest possible date following acceptance Item 3C - Page 28
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of the purchase offer. The Seller and Buyer shall complete and sign this notice.
Compliance with this requirement shall be demonstrated by submission of a fully executed Form PS FTHB -3 at the time the Lender submits a request for reservation of funds. This Notice will be used to determine if the home is eligible for purchase under the PLTA FTHB Program. For properties constructed prior to 1979, this notice will also provide the Seller’s disclosure and Buyer’s acknowledgment of any possible Lead Based Paint Hazards.
2. Lead-Based Paint Hazard Notice. The purchasers of all homes constructed prior to 1979 shall be provided with a Lead-Based Paint Hazard Notice and the publication “Protect Your Family from Lead in Your Home” (available at https://www.epa.gov/lead/protect-yourfamily-lead-your-home-english ). The Notice shall be provided to the purchasers prior to close of escrow and shall be signed by the purchasers. A copy of this signed notice shall be provided to HWS, with the application package.
3. Borrower Disclosure Statement. This notice discloses to the purchasers the terms of the PS FTHB Assistance. This form is to be signed and notarized at the settlement appointment and submitted to HWS with the closing package.
4. Voluntary Acquisition – Informational Notice (PS FTHB 14-6). This notice shall be provided to the buyer at the time a purchase offer is initiated. The Seller and Buyer shall complete and sign this notice and submit with the application package. This form is provided as an informational notice to comply with the Uniform Relocation Act (URA). g. Confidentiality
i. PS FTHB Applications are subject to confidentiality requirements and will only be discussed with representatives of the buyer including their lender, real estate agent, escrow agent, and home inspector. PS FTHB applications will not be discussed with seller representatives or other outside interests. Items containing confidential information (i.e., tax returns, credit report, pay stubs, employment verification) should not be faxed.
h. Resales
i. Sale, transfer and/or conveyance of the property during the Affordability Period shall trigger repayment of the PS FTHB Assistance, as detailed in the loan documents. i. Subordination
i. The PS FTHB Assistance shall be recorded in second position to the first mortgage on the property.
The PS FTHB Assistance shall remain in second position and will not be subordinated to any additional debt. Notwithstanding the above, the PS FTHB assistance will be subordinate to CalHFA financing, or any other loans provided by the County of Riverside. In those instances, the PS FTHB shall be recorded in the third position (or fourth position if going behind concurrent CalHFA DPA program and CalHFA closing costs program). Under the Riverside County Subordination Program, refinancing for PS FTHB loans provided with PS FTHB funds is only permitted with prior authorization of the HWS and only for purposes of reducing the monthly carrying costs to the borrower or to alleviate financial hardship due to medical condition, death of spouse, loss of employment, natural disaster, or other approved HWS exception. HWS must be held in the same position as it held prior to subordination and the new first mortgage debt must include a minimum 1% reduction in the interest rate paid by the homeowner. HWS will not agree to subordinate the FTHB Assistance to any other indebtedness with the following exceptions: (1) the first mortgage obtained concurrently with the FTHB Assistance to purchase the home; and (2) limited refinancing. j. Payoff Demands
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i. Assistance to homebuyers is structured as silent second loans, with all payments of principal and interest deferred until sale, transfer, or cash-out refinancing. If the housing is sold or otherwise transferred during the required affordability period, or if the property is no longer the assisted household’s primary residence, the County will recapture the down payment assistance provided via the PS FTHB from the net proceeds of the sale of the property. The net proceeds of the sale shall be determined as the sales price minus senior loan repayment, closing costs and the actual value of any documented capital improvements. Recaptured funds will be recycled through the County’s Palm Springs First Time Home Buyer Program in order to assist other PS FTHB eligible activities.
k. Refinancing
i. Subordination for refinancing is only permitted with the prior authorization of the HWS and for purposes of reducing the carrying costs of the borrower and a 1% or more reduction in the interest rate. The Agency shall not authorize refinancing for any of the following purposes: (1) to remove equity from the property; (2) to consolidate debts; (3) to consolidate the first mortgage with any junior liens or obligations; and/or (4) to increase the principal indebtedness amount of the first mortgage. Hardship exceptions may be approved on a case-by-case basis by Deputy Director of the HWS.
l. Title Insurance
i. The lender and escrow will order additional ALTA title insurance for the property, listing the County of Riverside as an "additional insured” for the HWS loan amount. m. Property Maintenance Requirement
i. Maintenance. The borrower shall agree to maintain the home in standard condition for the term of the HWS assistance. To this end, the purchaser shall be required to obtain a one-year home warranty as part of the home purchase. For newly constructed homes, the builder shall warranty the home for a minimum of one year from date of purchase. In the absence of a written warranty from the builder, the buyer shall obtain a one-year home warranty from an independent company. ii. Hazard Insurance. The purchaser shall obtain and maintain, for the term of the County's assistance, a hazard insurance policy for the property, listing the County of Riverside as “additional-insured.” The hazard insurance policy shall be of a sufficient amount to cover the County’s interest in the home. Full insurance for the amount of the first and second loans, or a Guaranteed Replacement Cost policy, is acceptable.
iii. Flood Insurance. Properties located in a flood hazard zone shall obtain flood insurance listing the County of Riverside as “additional-insured.”
n. Loss Payee
i. The County shall be listed on the hazard insurance, flood insurance, and title insurance as the loss payee in the following manner:
ii. County of Riverside, its successors, and assignees
3403 Tenth Street, Suite 300, Riverside, CA 92501, Attn: PS FTHB Program o. Auditing/Monitoring
i. All participating lenders shall maintain complete files for each Program participant for at least seven (7) years. The County will maintain records for each Program participant for the term of Affordability, plus three (3) years.
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ii. The County may conduct random audits of lender files to ascertain compliance with the PS FTHB Program. This may include review of participant files, and review of lender information to document compliance with all lender requirements. In addition to participant files, participating lenders shall maintain records of affirmative marketing efforts, Community Reinvestment Act (CRA) compliance, bi-lingual (Spanish speaking) staffing, and efforts to provide assistance with minimal inconvenience to the borrower.
iii. The County may also conduct surveys of program participants to obtain their input on the program, the processing of their application, and their level of satisfaction with the results. The results of any such survey will be shared with the Participating Lenders. Complaints about particular individuals or lenders will be investigated and, if necessary, corrective action may be taken. p. Conflict of Interest
i. PS FTHB assistance shall not be provided to any person or the immediate family of any person who is in a decision-making position relative to any aspect of the PS FTHB Program or the associated first mortgage. This includes, but is not limited to, employees and immediate family members of employees of the Riverside County Housing and Workforce Solutions and participating lenders.
D. PARTICIPATING LENDERS
a. Requirement
i. The County will only accept PS FTHB Applications from approved Participating Lenders who have entered into a Lender Participation Agreement with the County for this Program and attended required lender training.
b. Selection
i. The County shall establish minimum criteria for the selection of participating lenders for the FTHB Program. All selected lenders shall enter into a lender participation agreement with the County and shall agree to abide by the County’s procedures for all borrowers participating in the FTHB Program. The minimum lender criteria for the First Time Home Buyer Program are as follows:
1. Participating lenders are direct lenders with the ability to originate and service loans. Loan brokers are not eligible for approval as a participating lender. See “Brokers” section below for instances where brokers may participate.
2. Participating lenders are encouraged to provide staff personnel with the ability to communicate in Spanish.
3. Participating lenders shall provide application assistance with minimal inconvenience to the borrower. Application assistance shall be provided at a time and place convenient for the borrower. This may include evenings and weekends and travel throughout the County.
4. Participating lenders shall demonstrate a commitment to Community Reinvestment Act (CRA) and affirmative marketing requirements, and outreach to minority and low-income communities. Lenders shall agree to proactively market the Program to low income and minority people. All advertising to the general public shall be complemented with advertising targeted at these groups, including, but not limited to, minority newspapers, television, and radio advertisements. The County will monitor all marketing efforts and will require periodic updates on the marketing efforts of participating lenders.
5. Participating lenders shall have demonstrable experience in first time homebuyer program.
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6. The selection of participating lenders shall be at the sole discretion of the County of Riverside. The County reserves the right to limit the number of approved participating lenders.
c. Brokers
i. Mortgage Brokers are not eligible for designation as Participating Lenders in the FTHB Program on their own. Participating Lenders may enter into arrangements with brokers to process PS FTHB Applications. However, the Participating Lender shall remain responsible for all submittals to the County and for verifying that all aspects of the purchase meet the PS FTHB Program requirements.
d. Approved Lender List
i. HWS will include the approved PS FTHB corporate lender/loan officer list on the HWS website and as an enclosure to applicant information packets issued to inquiries via US Mail, telephone, in person, or email.
ii. The approved lender list will also include a section designed to specifically identify lenders who are high performers. These will be lenders who have successfully closed a number of FTHB transactions in the past year.
e. Removal
i. The Housing and Workforce Solutions Department may suspend or remove participating lenders from the Palm Springs First Time Home Buyer Down Payment Assistance Program in accordance with the terms of the Lender Participation Agreement. Lenders may be suspended or removed from the Program based on, but not limited to, the following violations:
1. Failure to follow the PS FTHB Program Guidelines, as described in this Manual and periodic Lender Bulletins.
2. Failure to submit all outstanding documentation within ten (10) days of loan closing.
3. Withholding information that would result in applicants or property disqualification from the program.
4. Negligent or fraudulent misstatements or actions regarding the Program.
5. Failure to conduct reasonable verification of applicant qualifications for the Program.
6. Failure to maintain complete applicant records for minimum of (7) years after loan closing. f. Authorized Lender Staff
i. Staff members of participating lenders that have completed the annual PS FTHB Lender Training Session are authorized to sign all PS FTHB forms and to make submissions to the Program. HWS will maintain the list of Lender Training Participants indicating that they have completed the necessary training to participate in the PS FTHB Program. ii. Staff that have not completed the training may only participate in the Program under the supervision of a staff member who has attended the lender training. Staff that has not completed the training are not authorized to sign the form or to make submissions to the Program.
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E. PROCESSING PROCEDURES
PS FTHB Applications will be processed by the County on a first-come, first-served basis, in chronological order as received from participating lenders. The County will maintain a running balance of funds available, and once funds are exhausted, the County will stop accepting applications and notify the participating lenders that the Program is out of funds. It is the participating lender’s responsibility to verify the availability of funds prior to loan application submitted. The following procedures are to be followed for PS FTHB applications.
The Palm Springs First Time Home Buyer Program (PS FTHB) will not accept any forms with whiteout. This includes the required County PS FTHB forms and all subsequent items that are requested to fund the PS FTHB loan.
If any changes need to be made to forms, please line out and initial the change.
Please note, any document submitted during the Reservation Phase that is incomplete or contains whiteout will cause the file to be returned to the lender without being processed. This procedure is in order to maintain the validity of all documents submitted to the County and allow other homebuyers with complete paperwork to move into the Reservation Phase.
a. Pre-Qualification Phase
i. Eligible recipients will reach out to HWS for referral to approved lender list and will also provide HWS with an authorized Section 14 status statement from the assigned Section 14 coordinator at the City of Palm Springs, and/or proof of residency for eligible Palm Springs residents. ii. Potential buyer contacts participating lender.
iii. Participating lender screens the buyer for program eligibility (income & first-time buyer status). iv. Participating lender takes a loan application and pre-qualifies buyer for the maximum first loan that they can afford given their income, debts, and prevailing interest rates. v. Lender provides buyer with a pre-qualification letter that states:
1. the maximum home price that the buyer can afford, based on the maximum first loan amount plus the maximum PS FTHB Program assistance (a maximum gap finance limit such that the housing payment to income ratio is between the range of twenty-five percent (25%) and thirty-five percent (35%) with an absolute minimum of $1,500 and an absolute maximum amount of $200,000;
2. the locations where the buyer may not purchase; Program is only allowed to be used on eligible properties located in Palm Springs city limits.
3. that the buyer shall provide a Homeownership Notice to the Sellers (Form PS SEC 14 FTHB-3) by attaching this form to the Purchase Offer as an Addendum and request that the Seller(s) sign this form when they accept the purchase offer or at the earliest possible date following acceptance of the purchase offer; and
4. Any conditions imposed by the lender.
vi. Buyer attends an HWS-approved Home Buyer Education seminar by first choosing and utilizing HUDs required provider database for the class provider:
https://hud4.my.site.com/housingcounseling/s/?language=en_US Once completed, buyer receives a Certificate of Completion. The buyer is encouraged to complete this requirement as soon as possible in the home purchase process. A copy of the Certificate of Completion certifying that the buyer has completed this requirement is needed for the Reservation Phase.
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vii. Buyer locates a home and enters into a purchase agreement. Buyer provides Homeownership Notice to Sellers (PS SEC 14-FTHB-3) as an addendum to the purchase contract for the Seller to sign at acceptance of purchase offer.
b. Reservation Phase
All applications must be typed or printed neatly on the current forms on the HWS homeownership website at https://rivcohws.org/housing-programs. All forms should be filled out completely. Make sure applications are signed where required. Incomplete applications will not be accepted. All items must be included in initial submittal - faxes will not be accepted for the Reservation Phase. Applications that are missing any required items or contain white-out will not be processed and will be returned to the Lender.
PS FTHB Reservation: The following items are required in order to reserve funds for a specific borrower. PS FTHB Reservations are accepted on a first-come, first-served basis. HWS will accept a maximum of two applications per lender branch, per day. The FTHB Administrator will review the following items according to the applicable PS FTHB Manual guidelines and respond to any reservation request within ten (10) County working days.
Cover Letter indicating mortgage company name and address, contact person, phone and fax numbers, email address, name of applicant, location (address) of home and any other information regarding the loan terms and/or homebuyers.
Written evidence of borrower’s Section 14 status)
First Time Home Buyer Assistance Reservation (FTHB-1) with wet signature(s) Certification of Applicant (FTHB-2) with wet signature(s) Homeownership Notice to Sellers and Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards (FTHB-3) with borrower’s wet initials (copy of seller’s signature is acceptable) FTHB Program Financing Worksheet (FTHB-4) with wet signature(s) Income Affidavit (FTHB-5) – (if applicable) with wet signature(s) Income Voluntary Acquisition Informational Notice (FTHB-6) – copy of the seller signature is acceptable/ borrowers’ wet signature is required.
Two (2) months proof of income with the most current paystubs (or alternative income documentation).
Copy of 1008 or FLUTS (FHA Loan Underwriting Transmittal Summary) signed and dated by the underwriter Copy of Signed Sales Agreement, including all counter offers and Transfer Disclosure Statements (do not submit the FTHB file for a short sale until seller’s lender has fully accepted the offer) Copy of Escrow Instructions Including a copy of the Vesting Amendment signed by the borrowers Copy of Complete Preliminary Report less than 90 days old including Plat Map Copy of Completed Loan Application signed by lender and borrower Copy of Home Inspection for existing homes. Please email a copy also - (Home Inspector must be a member of either the California Real Estate Inspectors Association, the American Society of Home Inspectors, or the International Conference of Building Officials)
Copy of the Loan Estimate/Closing Disclosure signed by Borrower(s) Copy of the Standard Flood Hazard Determination (FEMA Form 81-93) or copy of FEMA website determination.
Citizenship status for each household member. Acceptable documentation includes birth certificates, valid and unexpired US Passports and Permanent Resident Alien cards, DACA cards, ITIN cards (legible copy of the Item 3C - Page 34
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front and back) Lender certification and matching AUS printout.
Most recent federal tax return (all pages and schedules), including the verbiage below.
PLEASE NOTE: The verbiage “This is a true and exact copy of the tax returns submitted to the IRS” must be added to the bottom of page 1 or page 2 for most recent tax return year with the applicant’s digital signature next to the statement.
Most recent Residential Mortgage Credit Report (RMCR), showing no mortgage tradelines in the last 3 years.
Homebuyer Education Certificate – Copy of Certificate of Completion of 8-hour Home Buyer Education Class from HUD approved homebuyer Education Provider (On-Line classes are not acceptable and certificates expire after 1 year)
Vesting Amendment from escrow – Current amendment signed by the borrower(s).
Wire Instructions. – Witten request from the escrow officer for deposit of PS FTHB funds in a font size 10 or larger. Acceptable wire instructions must include the following:
1. On Escrow Company letterhead. 7. Signature of authorized person to approve wire Instructions
2. Bank name 8. Bank address
3. ABA/routing number 9. Account number
4. Dollar amount of wire 10. Escrow number
5. Title number 11. Client name and vesting (or copy of vesting amendment)
6. No handwritten information
Termite Report and Clearance
Appraisal – Copy of Appraisal establishing property Value Copy of Certificate of Occupancy for new construction properties (if applicable) HCD form 433 (a) for Manufactured homes (if applicable -- manufactured homes on permanent foundation) Lead-Based Paint Inspection report for homes built prior to 1978 with Wet Signature(s) Realtor/agent contact information for HWS to reach out to, if needed.
Shipping account information or preprinted label(s) for delivery of HWS loan docs to escrow Reservation Procedure:
i) Agency will review the Reservation application and within ten (10) county working days will issue or reject the reservation. Reservation review period of 10 days is waived if property is greater than 50 (fifty) years old in which case the minimum review period is 20 county working days. Reservation requests will be processed on a first-come, first-served basis. The reservation may be rejected for the following reasons:
(1) Buyer or home does not meet the Program Requirements. (2) Reservation package is incomplete; or
(3) The Agency does not have sufficient funds to provide the requested amount of assistance. ii) A written Funding Reservation will be issued within ten (10) county working days of receipt of a complete Reservation Request. The Funding Reservation will be conditioned upon certain items, as follows:
(1) Transaction must be completed within sixty (60) days of the Funding Reservation. Requests for extensions of time shall be submitted in writing at least ten working days prior to expiration of the Funding Reservation and shall include the reason for the extension. The Agency will evaluate the request for reasonableness and will approve or deny the extension in writing.
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(2) For existing homes, a copy of the home inspection shall be submitted as soon as it is available and shall demonstrate that the home will be ready for occupancy upon closing. (3) Written proof that any items listed in the Home Inspection or purchase agreement that were to be completed prior to occupancy have been completed.
(4) Appraisal establishing property value (not purchase price). Property value shall be at least the purchase price and if any improvements are included in the purchase transaction, property after-rehab value shall be no more than the program limit.
(5) Any other items needed to verify applicant or property eligibility for the Program. iv) Lender processes first loan and establishes a closing date. c. Riverside County Loan Documents
PS FTHB Loan Documents: When Loan Reservation letter is issued, HWS will begin preparation of its loan documents. These will be overnighted to escrow to be signed by the borrower(s) and escrow. d. Request for Funding Phase
PS FTHB Funds Release: The following items are required prior to loan funds being released for a specific borrower.
The FTHB Administrator will review the following items according to the applicable PS FTHB Manual guidelines and respond to any funding request within five (5) County working days i) Lender to provide Repair Certification – Written Proof that items listed on the HWS repair request letter have been repaired or replaced as requested (This must be in the form of a signed letter by a licensed contractor or the original inspector, itemizing the items which were repaired) ii) Lender to provide any Outstanding items noted in written Funding Reservation Letter iii) Buyer(s) attends settlement appointment and signs all loan closing documents including all legal documents prepared by HWS. HWS documents to be signed at closing are as follows:
(1) First Time Home Buyer Assistance Program Disclosure Statement. (2) Promissory Note.
(3) Subordinate Deed of Trust.
(4) Itemization of Amount Financed
(5) Escrow Officer Checklist (signed by the Escrow Officer) iv) Escrow submits the signed PS SEC 14 First Time Home Buyer Assistance Program Disclosure Statement, Promissory Note, and Escrow Officer Checklist as soon as they are executed. v) Escrow sends certified copy to HWS of Subordinate Deed of Trust and Request for Notice, while originals go to title officer for recording.
vi) Escrow submits a copy of the Estimated Escrow Settlement Statement with signed loan documents. vii) Escrow submits evidence of insurance referencing the PS FTHB loan number and listing “Riverside County Housing and Workforce Solutions” as additional insured with signed loan documents. viii)Escrow submits copy of home warranty with signed loan documents.
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PS FTHB Program Guidelines (Lenders)
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Updated as of: 10/16/2025
Funds Release Procedure:
HWS reviews executed loan documents and funding conditions ix) Written authorization to Release HWS Funds letter is issued to escrow if everything is acceptable and complete. x) Loans are funded and home purchase closes.
xi) Escrow submits a copy of the Final Escrow Settlement Statement. xii) Title Company provides HWS with a copy of the ALTA lender Title Insurance Policy insuring the County’s interest in the property.
xiii)FAILURE TO SUBMIT CLOSING DOCUMENTS WITHIN THIRTY (30) DAYS OF CLOSING WILL
RESULT IN SUSPENSION OF LENDER, INCLUDING ALL BRANCHES, FROM THE PS FTHB PROGRAM. CLOSING DOCUMENTS INCLUDE, FINAL SETTLEMENT STATEMENT, FINAL ALTA RIVCO ITLE POLICY, AND THE HWS ORIGINAL RECORDED LOAN DOCS. THE AGENCY WILL NOT ACCEPT FUNDING RESERVATION REQUESTS FROM SUSPENDED LENDERS. xiv) Escrow/Title Company closes out the PS FTHB File and records our Request for Notice and Subordinate Deed of Trust.
e. Resubmission of Denied Applications.
The County will only process resubmissions of denied applications if it can be demonstrated that the reasons for denial were based on inaccurate or missing information. Back-up documentation to support all such resubmissions shall be submitted, and the Application will be processed as indicated above. For example, if an application was denied for not being a first-time home buyer, the resubmission shall include evidence that the buyer did not have any ownership interest in their principal residence. Examples of such evidence may include, but are not limited to, a chain of title, copies of deeds, copies of divorce papers or other legal documents showing ownership of property.
f. Changes in Information.
i. In some cases, there may be changes in information between the date the Reservation Request is submitted and the date of closing. All such changes shall be made in the following manner:
1. Change in Home Being Purchased. In order to change the home being purchased, the following shall be completed listing the new address and resubmitted to the County.
2. Change After Reservation and Before Request for Funding a. Cover letter from Lender describing change and why it occurred; b. New Reservation (Form PS SEC 14-1), completed in full and listing new address and relevant information;
c. New Homeownership Notice to Sellers (Form PS SEC 14-3) completed and fully signed;
d. Copy of New Signed Sales Agreement or equivalent; and Item 3C - Page 37
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e. Copy of New Escrow Instructions.
f. New Financing Worksheet (Form PS SEC 14-4), fully completed and signed;
g. Copy of new Home Inspection Report;
h. Written proof that items listed in the Home Inspection that affect habitability of the unit have been corrected; and
i. Copy of new appraisal.
3. HWS will evaluate these materials and determine if the property and buyer meet all the Program Requirements. This determination of approval or denial of the change will be provided to the Lender in writing. Denial may occur if the home is not located in a participating location, if the home value exceeds the program limit, if the home is determined to not be in standard condition, if the home is occupied by a tenant or has been vacant for less than 60 days, if there is an increase in the amount of assistance required and this amount exceeds the program limits or if the County has insufficient funds to increase the amount of assistance, or if there are any other changes which affect eligibility of the buyer or property.
4. Changes in Income. The initial income determination is valid for six months.
A re-verification of income will be required if more than six months elapse from date of income determination. Any changes in income that increase the household income must be re-submitted for an eligibility determination. This includes the addition of additional household members aged 18 and older or increases in the income of any household member. Changes in income shall be immediately reported by submitting a new, fully signed, Certification of Applicant (Form PS SEC 14-2) and a copy of current income source documents for the last two months (if applicable).
5. Marriage and/or the Addition of New Adult Household Members. The addition of any new adults to the household shall be immediately reported by submitting a new, fully signed, Certification of Applicant (Form PS SEC 14- 2), most recent federal tax returns (all Federal schedules), as well as income source documents for the last two months for the new family members. All new adult household members must meet the first-time home buyer requirement, and the income of all adult household members shall be included in determining income eligibility.
6. Homeownership Interest. If the applicants or their spouse acquire an ownership interest in improved-upon residential real property at any time prior to closing escrow, the household no longer meets the first-time buyer requirement and is ineligible for the Program. The Application and Reservation are automatically denied if this should occur.
7. Increase in Price. If the price of the home increases, or the amount of assistance needed changes, the County must be notified immediately. Revised forms noting the changes shall be submitted as soon as possible. The home may become ineligible if the home value as established by the appraisal exceeds the maximum value limitation. In addition, any increase in the amount of assistance needed must comply with the maximum assistance amounts and is dependent upon availability of sufficient Program funds.
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8. Decrease in Price. If the price of the home decreases, the amount of County assistance will decrease. The HWS shall be notified no later than the Request for Funding. The Lender shall note the decrease on the Request for Funding Cover Sheet and shall include the new price in the Lender’s Certification.
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g. APPENDICES
A. INCOME AND PROPERTY VALUE LIMITS
B. PARTICIPATING JURISDICTIONS
C. CALCULATING ANNUAL INCOME
D. FIRST TIME HOME BUYER PROGRAM DEFINITIONS
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PS FTHB Program Guidelines (Lenders)
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APPENDIX A
INCOME AND PROPERTY VALUE LIMITS
Maximum Annual Household Income Adjusted for Family Size Effective July 1, 2025 (TO BE UPDATED ANNUALLY BY RivCo HWS) Household Size Maximum Annual Income
1 $ 109,760
2 $ 125,300
3 $140,980
4 $156,660
5 $169,260
6 $181,720
7 $194,320
8 $206,780
MAXIMUM PROPERTY VALUE
The PS SEC 14 affordable homeownership limits are provided by HCD for new and existing homes at https://www.hcd.ca.gov/docs/grants-and-funding/2022mtspregularlimits.pdf. If any improvements are included in the purchase transaction, the purchase price and estimated after-rehab value established by the appraisal shall not exceed the current fiscal year’s PS FTHB maximum purchase price limit. The PS FTHB maximum purchase price limits:
New Construction Single-Family Residence $750,000
Existing Single-Family Residence $750,000
New/Existing Condominium or Townhouse $513,000
Manufactured Home $361,000
ASSETS
In addition to income, family assets (excluding personal property, funds in restricted retirement accounts listed here, https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans, and funds to be used for the home purchase) shall not exceed 6 times the household’s monthly gross income as determined by using PS SEC 14 income guidelines for the PS FTHB Program. For example, a family of four shall have a maximum of $26,400 in assets, excluding personal property (such as automobiles and furniture, funds in restricted retirement accounts, and funds to be used in the home purchase). This is calculated by taking the income limit for a household of four, $105,600, divided by 12 months, then multiplying by 3. See Appendix C for a detailed explanation of how to calculate income and the items to be included and excluded from assets.
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PS FTHB Program Guidelines (Lenders)
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Updated as of: 10/16/2025
APPENDIX B
PARTICIPATING JURISDICTIONS
The Riverside County Palm Springs First Time Home Buyer Down Payment Assistance Program may be utilized to purchase a home in the following locations within the city limits of the following jurisdictions:
Palm Springs city limits only
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APPENDIX C
CALCULATING ANNUAL INCOME
1) Annual income is the gross amount of income anticipated to be received by all persons residing in the home following the effective date of the determination. Anticipated income is generally determined by annualizing current income for the next 12 months. Current income is determined by examination of income source documents for the last two months (e.g., wage statement, interest statement, unemployment compensation statement). Annual income includes anticipated income from assets. The following chart generally describes how to calculate various types of income. A more detailed explanation is provided in the subsequent paragraphs.
Source of Income Guidance for Calculation
Earned Income Use current circumstances to anticipate future earnings.
Include all family members aged 18 or older, including
income of a temporarily absent spouse or other usual family member.
Make sure to use annual figures. If wages are paid hourly, assume 2080 hours for full time employment.
Income from Assets (interest earning bank accounts, stocks and bonds, CDs, not improved-upon residential real property, etc.)
If over $5,000, use the greater of the actual or the imputed income based on the passbook rate established by HUD.
Assets disposed of for less than fair market value are counted for two years. The current HUD Passbook rate is listed on our PS FTHB forms.
Contributions and gifts Include as income if contributions are made on a regular basis.
Alimony and child support Include.
Income from a business Generally, this is gross income less expenses. If net income shows as a loss, count as zero. Note: farm businesses may have different guidelines.
Insurance settlements, inheritances, proceeds from sale of personal property and other lump sum payments
Generally, these are assets and not income.
Income from welfare assistance Count the basic welfare grant, and in states with separate "welfare rents", the maximum allowed for shelter and
utilities.
Periodic payments, such as social security, pensions, etc. Make sure to calculate the annual value of periodic payments.
Lump sum payments are treated as assets. Do not gross up. 2) The following income is to be included when calculating annual income:
a) All wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services (before any payroll deductions);
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b) Net income from the operation of a business or profession. If net income shows as a loss, count as zero. (Note: farm businesses may have different guidelines.) Expenditures for business expansion or amortization of capital indebtedness cannot be used as deductions in determining net income; however, an allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession is included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the Family;
c) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness cannot be used as a deduction in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the Family. Where the Family has Net Family Assets in excess of $5,000, Annual Income includes the greater of the actual income derived from Net Family Assets or a percentage of the value based on the current passbook savings rate, as determined by HUD;
d) All gross periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum payment for the delayed start of a periodic payment (except social security);
e) Payments in lieu of earnings, such as unemployment, worker's compensation and severance pay (but see paragraph (3c) under Income Exclusions);
f) Welfare Assistance. If the Welfare Assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the Welfare Assistance agency in accordance with the actual cost of shelter and utilities, the amount of Welfare Assistance income to be included as income consists of:
i) The amount of the allowance or grant exclusive of the amount specially designated for shelter or utilities; plus ii) The maximum amount that the Welfare Assistance agency could in fact allow the Family for shelter and utilities.
If the Family's Welfare Assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph is the amount resulting from one application of the percentage; g) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling. Alimony and child support amounts awarded as part of a divorce or separation agreement are included as income unless the applicant (1) documents that the income is not being provided, and (2) takes all reasonable legal actions to collect amounts due; and h) All regular pay, special pay, and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the Family, spouse, of other person whose dependents are residing in the unit (including hostile fire pay);
i) Payments received for the care of foster children;
j) Amounts paid by a municipality to a family (such as IHSS income) including those who have a developmental disability and are living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home.
3) The following income is to be excluded when calculating income:
a) Income from employment of children (including foster children) under the age of 18 years; b) Lump-sum additions to Family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (but see Item 3C - Page 44
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paragraph (e) of Income Inclusion);
c) Amounts received by the Family that are specifically for, or in reimbursement of, the cost of Medical Expenses for any Family member;
d) Income of a live-in aide; (as defined in 24 CFR 5.403) e) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the Government to a veteran, for use in meeting the costs of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of the student. Any amount of such scholarships or payments to a veteran not used for the above purchases that are available for subsistence are to be included in income; f) Amounts received under training programs funded by HUD; g) Amounts received by a Disabled person that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self Sufficiency (PASS); or h) Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-of-pocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and that are made solely to allow participation in a specific program;
i) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the owner, on a part-time basis, that enhances the quality of life in the project. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, and resident- initiative coordination. No resident may receive more than one such stipend during the same period of time; or
j) Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training programs not affiliated with a local government) and training of a family member as a resident management staff person. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the employment training program k) Temporary, non-recurring, or sporadic income (including gifts); l) Reparation payments from foreign governments in connection with the Holocaust; m) Earnings in excess of $480 for each full-time student 18 years or older (excluding the head of household or spouse). n) Adoption assistance payments in excess of $480 per adopted child. o) Lump sum payments of SSI and Social Security benefits; or p) Amounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit;
q) Amounts specifically excluded by other Federal Statute for consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under the 1937 Act, including:
i) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977; ii) Payments to volunteers under the Domestic Volunteer Act of 1973 (employment through VISTA Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender’s incarceration alternatives, and senior companions);
iii) Payments received under the Alaska Native Claims Settlement Act (43 U.S.C. 1626 (a)); Item 3C - Page 45
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iv) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 259e);
v) Payments of allowances made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program (42 U.S.C. 8624 (f));
vi) Payments received under programs funded in whole or in part under the Workforce Investment Act; vii) Income derived from the disposition of funds of the Grand River Band of Ottawa Indians; viii)The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission, or the Court of Claims (25 U.S.C. 1407-1408), or from funds held in trust for an Indian tribe by the Secretary of Interior (25 U.S.C. 117);
ix) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the Federal work-study program or under the Bureau of Indian Affairs student-assistance programs (20 U.S.C. 1087 uu);
x) Payments received from program funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056 (f)); xi) Any earned income tax credit;
xii) Payments received after January 1, 1989, from the Agent Orange Settlement Funds or any other funds established pursuant to the settlement in Re Agent Orange product liability litigation, MDL No. 381 (E.D.N.Y.); xiii)The value of any childcare provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990 (42 USC 9858q); and
xiv) Payments received under the Maine Indian Claims Settlement Act of 1980. 4) Income from assets (excluding personal property, funds in restricted retirement accounts, and funds to be used for the home purchase) is to be included when determining total income. Asset income is counted if assets are more than $5,000 by using the greater of the actual income from assets, or the total assets times the passbook rate. 5) Assets include the following items:
a) Amounts in savings and checking accounts.
b) Stocks, bonds, savings certificates, money market funds and other investment accounts. c) Equity in real property or other capital investments. Equity is the estimated current market value of the assets less the unpaid balance on all loans secured by the assets and reasonable costs (such as broker fees) that would be incurred in selling the asset.
d) The cash value of trusts that are available to the household. e) Assets which, although owned by more than one person, allow unrestricted access by the applicant. f) Lump sum receipts such as inheritances, capital gains, lottery winnings, insurance settlements, and other claims. g) Personal property is held as an investment such as gems, jewelry, coin collections, antique cars, etc. h) Cash value of insurance policies.
i) Assets disposed of for less than fair market value for two years preceding the income determination.
Item 3C - Page 46
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6) Assets do not include the following items:
a) Personal property
b) Funds in restricted retirement accounts, https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans c) Funds to be used for the home purchase
d) Interest in Indian trust lands.
e) Assets that are part of an active business or farming operation. Note: Rental properties are considered personal assets held as an investment rather than business assets unless real estate is the applicant's main occupation. f) Assets not accessible to the family and which provide any income to the family. g) Vehicles especially equipped for the handicapped.
h) Equity in owner-occupied cooperatives and manufactured homes in which the family lives.
Item 3C - Page 47
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
APPENDIX D
PALM SPRINGS FIRST TIME HOME BUYER DOWN PAYMENT ASSISTANCE PROGRAM
DEFINITIONS
Abstract or Title Search, Title Examination, Title Insurance Binder. These charges cover the costs of the search and examination of records of previous ownership, transfers, etc., to determine whether the seller can convey clear title to the property, and to disclose any matters on record that could adversely affect the buyer or the lender. Examples of title problems are unpaid mortgages, judgment or tax liens, conveyances of mineral rights, leases, and power line easements or road rightsof-way that could limit use and enjoyment of the real estate. In some areas, a title insurance binder is called a commitment to insure.
Additional Settlement Charges. The lender or the title insurance company may require that a surveyor conduct a property survey to determine the exact location of the home and the lot line, as well as easements and rights of way. This is a protection for the buyer as well. Usually, the buyer pays the surveyor's fees, but sometimes this may be handled by the seller.
Amortization. The gradual repayment of a mortgage with equal monthly payments over the life of the loan.
Annual Assessments - Recurring. This reserve item covers assessments that may be imposed by subdivisions or municipalities for special improvements (such as sidewalks, sewers, or paving) or fees (such as homeowners’ association fees).
Annual Income. Gross amount of income anticipated to be received by all persons residing in the home during the 12 months following the effective date of the determination. Anticipated income is generally determined by annualizing current income for the next 12 months. See Appendix D for income to be included and excluded from the annual income calculation.
Appraisal Fee. The fee charged for the preparation of an appraisal of property value.
Appraisal. An estimate of property value prepared in accordance with accepted practices and standards by an independent appraiser who is licensed by the State of California. The appraiser inspects the house and the neighborhood and considers sales prices of comparable houses and other factors in determining the value. The appraisal report may contain photos and other information of value to you. It will provide the factual data upon which the appraiser based the appraised value.
Assumption Fee. This fee is charged for processing papers for cases in which the buyer takes over the payments on the prior loan of the seller.
Attorney's Fees. You may be required to pay for legal services provided to the lender in connection with the settlement, such as examination of the title binder or sales contract. Occasionally this fee can be shared with the seller, if so stipulated in the sales contract. If a lawyer's involvement is required by the lender, the fee will appear on this part of the form. The buyer and seller may each retain an attorney to check the various documents and to represent them at all stages of the transaction, including settlement. Where this service is not required and is paid for outside of closing, the person conducting settlement is not obligated to record the fee on the settlement form.
California Housing Finance Agency (CalHFA). California Housing Finance Agency (CalHFA) assists first-time homebuyers by providing financing and programs that create safe, decent, and affordable housing opportunities for individuals within specified income ranges. CalHFA was chartered as the State’s affordable housing bank to make below market-rate loans through the sale of tax-exempt bonds. A completely self-supporting State agency, bonds are repaid by revenues generated through mortgage loans, not taxpayer dollars.
City/County Property Taxes - Recurring. The lender may require a regular monthly payment to the reserve account for property taxes.
Closing Costs. Fees and expenses, in addition to the down payment, that are required to complete a real estate transaction.
Closing costs may be non-recurring or recurring. Non-recurring costs are only paid once and include but are not limited to items such as loan origination fees, points, title fees, recording fees, transfer taxes. Recurring costs are paid at closing and will be incurred again after purchase. Examples of recurring costs are property taxes, hazard insurance, interest, mortgage insurance and mortgage insurance premiums, and annual assessments.
Item 3C - Page 48
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
Closing. The final step in transferring ownership of a property from seller to buyer.
Credit Report Fee. This fee covers the cost of the credit report, which shows how you have handled other credit transactions.
The lender uses this report in conjunction with information you submitted with the application regarding your income, outstanding bills, and employment, to determine whether you are an acceptable credit risk and to help determine how much money to lend you. It also shows if you have a mortgage tradeline, indicating previous homeownership. When credit reporting problems are encountered, you have protection under the Fair Credit Laws.
Compensating Factors. Elements of your financial profile or housing goals that make lenders or mortgage investors more forgiving of other areas where your qualifications may not be as stellar. Examples of common ones include: FICO , similar housing expense, demonstrated ability to accumulate savings, conservative attitude towards using credit, potential increased earnings, and reserves. Also: working for a stable employer, and the likelihood of getting regular cost of living increases..
Deed. A legal document conveying title to a property.
Displaced homemaker. An individual who, (1) is an adult; (2) has not worked full-time in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and (3) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment. Displaced homemakers must also meet the first-time buyer’s requirement unless they obtain an exception in advance from HWS. Exceptions are not guaranteed and are reviewed on a case-by-case basis.
Document Preparation. There may be a separate document fee that covers preparation of final legal papers, such as a mortgage, deed of trust, note, or deed. You should check with the settlement agent to see that these services, if charged for, are also not covered under some other service fees.
Eligible Property. A property to be used as the buyers’ principal residence which is located in a participating location and has an appraised property value that does not exceed the property value limit established by the PS FTHB Program.
Equity. The owner's value or interest in a property. Equity is computed as the difference between the market value of a property and the owner's indebtedness incurred against the property.
Escrow. The placement of money or documents with a third party for safekeeping pending the fulfillment or performance of a specific act or condition.
Existing Home. Any residence that has been previously occupied for residential purposes.
FHA Mortgage. A mortgage loan insured by the Federal Housing Administration.
Fannie Mae. A nickname for the Federal National Mortgage Association (FNMA), a tax paying corporation created by Congress to support the secondary mortgage insured by FHA or guaranteed by VA, as well as conventional home mortgages.
First Mortgage. A mortgage, the proceeds of which are used to purchase the property, issued by a participating lender, and recorded in first position on the deed.
First-Time Home Buyer. An individual who meets any of the following criteria: (a) An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time home buyers). (b) A single parent who has only owned with a former spouse while married. (c) An individual who is a displaced homemaker and has only owned with a spouse. (d) An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations. (d) An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure. (e,) Ownership of vacant, unimproved land is permitted. However, the value of the vacant land needs to be included in the asset calculation.
Freddie Mac. A nickname for the Federal Home Loan Mortgage Corporation (FHLMC), a federally controlled and operated corporation to support the secondary mortgage market. Freddie Mac purchases and sells conventional home mortgages.
Item 3C - Page 49
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
Government Recording and Transfer Charges. These fees may be paid either by borrower or seller, depending upon your contract when you buy the home or accept the loan commitment. The borrower usually pays the fees for legally recording the new deed and mortgage. These fees collected when property changes hands or when a mortgage loan is made, may be quite large and are set by State and/or local governments. City, county and/or State tax stamps may have to be purchased as well.
Hazard Insurance Premium - Recurring. This premium prepayment is for insurance protection for you and the lender against loss due to fire, windstorm, and natural hazards. This coverage may be included in a homeowner's policy which insures against additional risks which may include personal liability and theft. Lenders often require payment of the first year's premium at settlement. Hazard insurance or homeowner's policy may not protect you against loss caused by flooding. If your mortgage is federally insured and your property is within a special flood hazard area identified by FEMA, you may be required by Federal law to carry flood insurance on your home. Such insurance may be purchased in participating communities under the National Flood Insurance Act.
Hazard Insurance - Recurring. The lender determines the amount of money that must be placed in the reserve in order to pay the next insurance premium when due.
Home. A one-unit dwelling, including a single-family home, condominium or manufactured home on a permanent foundation that will be the buyers’ permanent residence.
HOA. A homeowners' association (abbrev. HOA) is the legal entity created by a real estate developer for the purpose of developing, managing, and selling a community of homes. It is given the authority to enforce the covenants, conditions, and restrictions (CC&Rs) and to manage the common amenities of the development. It allows the developer to legally exit responsibility of the community typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots. Most homeowners' associations are non-profit corporations, and are subject to state statutes that govern non-profit corporations and homeowners' associations.
Home Buyer Education. A course or class designed to prepare persons for homeownership. Topics covered include the home buying process, obtaining a loan, and responsibilities associated with homeownership, including, but not limited to, maintenance and payment obligations.
Home Inspection Report. A pre-purchase inspection prepared by a qualified home inspector which documents the condition and working order of the home and all fixtures included in the home purchase agreement. The inspection and report shall be prepared in accordance with industry standards. The report shall list any and all conditions which impair the habitability of the unit. The Home Inspection Report is used to determine that the home is in standard condition and will comply with Housing Quality Standards upon occupancy.
Home Warranty. A warranty provided by an independent company that provides for the repair of specified items in a home during the warranty period, usually for a small deductible.
Homeownership. Ownership in fee simple title or a 99-year leasehold interest in real estate. The ownership interest may be subject only to mortgages, deeds of trust, or other liens, or instruments securing debt on the property; resale restrictions imposed through this Program; or any other restrictions or encumbrances that so not impair the good and marketable nature of title to the ownership interest.
Household. One or more persons occupying a housing unit.
Housing Quality Standard. A minimum standard of habitability established by the Public Housing Authority.
HUD. The United States Department of Housing and Urban Development, a federal governmental agency established to implement certain federal housing and community development programs.
Impound Account. That portion of a mortgagor's monthly payment held in trust by the lender to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other recurring items, as they become due. Also referred to as an escrow payment.
Item 3C - Page 50
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
Interest - Recurring. Lenders usually require that borrowers pay at settlement the interest that accrues on the mortgage from the date of settlement to the beginning of the period covered by the first monthly payment. For example, suppose your settlement takes place on April 16 and your first regular monthly payment will be due June 1 to cover interest charges for the month of May. On the settlement date, the lender will collect interest for the period from April 16 to May 1. If you borrowed $60,000 at 12 percent interest, the interest item would be $303.30.
Items Required by Lender to Be Paid in Advance. You may be required to prepay certain items, such as interest, mortgage insurance premium and hazard insurance premium, at the time of settlement.
Lender's Inspection Fee. This charge covers inspections, often of newly constructed housing made by personnel of the lending institution or an outside inspector.
Lender's Title Insurance. A one-time premium may be charged at settlement for a lender's title policy which protects the lender against loss due to problems or defects in connection with the title. The insurance is usually written for the amount of the mortgage loan and covers losses due to defects or problems not identified by title search and examination. The borrower may pay all, a part of, or none of this cost depending on the terms of the sales contract or local custom.
Lien. A legal claim against a property that must be paid when property is sold.
Loan Origination Fee. The charge assessed by a lender for processing a mortgage.
Loan-to-Value Ratio. The ratio of the mortgage loan principal (amount borrowed) to the property's appraised value (selling price).
Mortgage. A lien on real estate given by the buyer as security for money borrowed from a lender.
Mortgagee. The lender of money or the receiver of the mortgage document.
Mortgagor. The borrower of money of the giver of a mortgage document.
Mortgage Insurance Premium - Recurring. Mortgage insurance protects the lender from loss due to payment default by the borrower. The lender may require you to pay your first premium or a lump sum premium covering the life of the loan in advance, on the day of settlement. The premium may cover a specific number of months, a year in advance or the total amount.
With this insurance protection, the lender is willing to make a larger loan, thus reducing your down payment requirements.
This type of insurance should not be confused with mortgage life, credit life, or disability insurance designed to pay off a mortgage in the event of physical disability or death of the borrower.
Mortgage Insurance - Recurring. The lender may require that part of the total annual premium be placed in the reserve account at settlement. The portion to be placed in reserve may be negotiable.
Mortgage Insurer Application Fee. This fee covers processing the application for private mortgage insurance which may be required on certain loans. It may cover both the appraisal and application fee.
New Home. A residence that has received a certificate of occupancy but has never been previously occupied for residential purposes by any person. Also referred to as newly constructed.
Non-recurring Closing Costs. One-time fees and expenses paid at the time of closing. Non-recurring costs are paid in full at the time of closing.
Notary Fee. This fee is charged for the cost of having a licensed person affix his or her name and seal to various documents authenticating the execution of these documents by the parties.
Note. A written promise to pay a certain amount of money.
Owner's Title Insurance. This charge is for owner's title insurance protection and protects you against losses due to title defects. In some areas it is customary for the seller to provide the buyer with an owner's policy and for the seller to pay for this Item 3C - Page 51
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
policy. In other areas, if the buyer desires an owner's policy, he or she must pay for it.
Pest and Other Inspections. This fee is to cover inspections for termite or other pest infestation of the home. This may be important if the sales contract included a promise by the seller to transfer the property free from pests or pest-caused damage.
Be sure that the inspection shows that the property complies with the sales contract before you complete the settlement. If it does not, you may wish to require a bond or other financial assurance that the work will be completed. This fee can be paid either by the borrower or seller depending upon the terms of the sales contract. Lenders vary in their requirements as to such an inspection.
Point. One percent of the loan amount.
Principal and Interest Payment (P&I). - A periodic (usually monthly) payment that includes the interest charges for the period plus an amount applied to amortization of principal balance.
Principal, Interest, Taxes, and Insurance Payment (PITI). The periodic payment includes a principal and interest payment plus a contribution to the escrow account set up by the lender to pay insurance premiums and property taxes on the mortgage property.
Principal Residence. The primary dwelling unit in which a family resides. The residence can be a single-family property, a 2-4-unit property, a condominium, a manufactured home on a permanent foundation or a cooperative unit.
Professional Property Inspection. A pre-purchase inspection that is conducted to determine the condition of a property prior to purchase. See also Home Inspection Report.
Property Value. The total value of a property as established in an appraisal by a qualified appraiser. The purchase price of eligible FTHB homes shall not exceed the current fiscal year’s purchase price limit for that type of housing. If any improvements are included in the purchase transaction, both the after-rehab value of the home and the actual purchase price cannot exceed the purchase price limit.
Reserves Deposited with Lenders. Reserves (sometimes called "escrow" or "impound" accounts) are funds held in an account by the lender to assure future payment for such recurring items as real estate taxes and hazard insurance.
Settlement or Closing Fee. This fee is paid to the settlement agent. Responsibility for payment of this fee should be negotiated between the seller and buyer at the time the sales contract is signed.
Single parent. An individual who is (1) unmarried or legally separated from a spouse and (2) has one or minor children for whom the individual has custody or joint custody, or (3) is pregnant. Single parents must also meet the first-time buyer requirement unless they obtain an exception in advance from HWS. Exceptions are not guaranteed and are reviewed on a caseby-case basis.
Survey. The lender or the title insurance company may require that a surveyor conduct a property survey to determine the exact location of the home and the lot line, as well as easements and rights of way. This is a protection to the buyer as well.
Usually, the buyer pays the surveyor's fees, but sometimes this may be handled by the seller.
Title. The accumulation of all rights in a property, often used interchangeably with the word ownership. Also refers to the document that is evidence of ownership.
Title Charges. Title charges may cover a variety of services performed by title companies and others and include fees directly related to the transfer of title (title examination, title search, document preparation) and fees for title insurance, legal charges, which include fees for lenders, seller's or buyer's attorney or the attorney preparing title work and fees for settlement agents and notaries. Due to the great diversity in practice from area to area, your settlement may not include all these items or may include others not listed. Ask your settlement agent to explain how these fees relate to services performed on your behalf.
Title Insurance. The total cost of owner's and lender's title insurance is shown here. The borrower may pay all, a part or none of this cost depending on the terms of the sales contract or local custom.
Item 3C - Page 52
PS FTHB Program Guidelines (Lenders)
(2025-2026)
Updated as of: 10/16/2025
Title Search. A check of title records to identify liens, encumbrances, and ownership rights to the property.
VA Mortgage. A mortgage loan guaranteed by the Veterans Administration, an agency of the federal government that provides services for eligible veterans.
Item 3C - Page 53
ATTACHMENT D
Item 3C - Page 54
PLHA First Time Home Buyer (FTHB) Program
Fiscal Year: July 1, 2021 to June 30, 2023
Master Loan Officer List
Updated last: 1/5/2023
Lender Company Name Last Name First Name Branch Address Address 2 City State Zip Code Phone # Email Bryan Fiona 303-882-0543 [email protected] Bushman Liz 714-478-7920 [email protected] Chavez Spraggs Teresa 106 South Harvard Street Hemet CA 92543 951-314-6160 [email protected] Garneff Tamahara 255 East Rincon Street Suite 321 Corona CA 92879 951-333-4033 [email protected] American Financial
Network, Inc. Valdivia Amy 155 East C Street Suite C Upland CA 91786 626-485-4673 [email protected] Broker Solutions Inc. dba
New American Funding Garamone Tracey 27431 Enterprise Circle West Temecula CA 92590 805-701-5116 [email protected] Gerber Melanie 12848 Queensbury Lane Suite 208, Office
153 Houston TX 77024 909-648-0859 [email protected] Wingard Carri 6883 Coit Road Suite 104 Plano TX 75024 430-223-5297 [email protected] Aramburo Yolanda 951-288-9366 [email protected] Herrera Siples Nancy 951-897-5432 [email protected] Klaren Susan 714-264-0876 [email protected]
Smith Brett 714-801-1401 [email protected]
Acosta Mark 2280 Wardlow Circle Suite 260 Corona CA 92878 951-235-4901 [email protected] Cash David 27450 Ynez Road Suite 200 Temecula CA 92591 951-432-8512 [email protected] Gongora Patricia 951-733-9073 [email protected]
Walker Jamie 805-746-9389 [email protected]
Fairway Independent
Mortgage Corporation Medina Dave 28475 Old Town Front Street Suite M Temecula CA 92590 951-858-4761 [email protected] 300 Spectrum Center Drive Suite 760 Irvine CA 92618
DHI Mortgage Company,
Ltd.
Cardinal Financial
Company, LLP
CMG Mortgage, Inc., dba
CMG Financial
Academy Mortgage
Corporation
Cherry Creek Mortgage
20955 Pathfinder Road Suite 2004 Diamond Bar CA 91765
3400 Central Avenue Suite 215 Riverside CA 92506
2280 Wardlow Circle Suite 260 Corona CA 92878
Item 3C - Page 55
PLHA First Time Home Buyer (FTHB) Program
Fiscal Year: July 1, 2021 to June 30, 2023
Master Loan Officer List
Updated last: 1/5/2023
First Nations Home
Finance Corp Schultz Mark 7223 Wisteria Way Carlsbad CA 92011 760-492-8555 [email protected] Franklin Loan
Corporation, dba Franklin
Loan Center
Sanchez Sylvia 44800 Village Court Palm Desert CA 92260 760-578-5426 [email protected] Guaranteed Rate Hultin Aaron 2110 South Coast Highway Suite H & J Oceanside CA 9-2054 760-271-1179 [email protected] Jastillana Imee 3281 Guasti Road Suite 550 Ontario CA 91761 951-545-4973 [email protected] Neves Laura 17822 East Seventeenth Street Suite 300 Tustin CA 92780 714-856-6454 [email protected] Mason McDuffie
Mortgage
Ross Kelly 2920 West Main Street Visalia CA 93291 559-586-9202 [email protected] Gordon Vanessa 1255 West Colton Avenue Suite 17 Redlands CA 92374 951-961-8328 [email protected] Guidry Mitch 701 University Avenue Suite 104 Sacramento CA 95825 916-949-8838 [email protected] Rivera Jessenia 1209 Nevada Street Suite 200 Redlands CA 92374 909-488-2228 [email protected] Rodriguez Blanca 909-630-6093 [email protected]
Stewart Jennifer 951-264-1003 [email protected] Movement Mortgage Lopez Veronica 74-770 Highway 111 Suite 207 Indian Wells CA 92210 760-501-1073 [email protected] Paramount Residential
Mortgage Group, Inc.
(PRMG)
Truong Kim 1265 Corona Pointe Court Suite 301 Corona CA 92879 714-728-8098 [email protected] Point Mortgage
Corporation Chang Jorge 8277 La Mesa Blvd La Mesa CA 91942 619-500-2167 [email protected] Amaya Rosa 110 East 9th Street Suite 150 Los Angeles 90079 323-691-6794 [email protected] Batts Sue 57500 Twentynine Palms
Highway Yucca Valley 92284 760-831-4184 [email protected] De La Torre Javier 909-499-8610 [email protected] Del Toro Lauren 909-964-6442 [email protected] Union Bank
650 East Hospitality Lane Suite 240 San Bernardino 92408 CA
loanDepot.com LLC
MountainWest Financial
15322 Central Avenue Chino CA 91710
Item 3C - Page 56
PLHA First Time Home Buyer (FTHB) Program
Fiscal Year: July 1, 2021 to June 30, 2023
Master Loan Officer List
Updated last: 1/5/2023
Harris Julie 909-912-5414 [email protected]
Maldonado Melissa 909-708-3457 [email protected] Vasquez Angela 13225 Peyton Drive Chino Hills 91709 562-572-2197 [email protected] Union Bank
650 East Hospitality Lane Suite 240 San Bernardino
CA
92408
Item 3C - Page 57
ATTACHMENT E
Item 3C - Page 58
Palm Springs First Time Homebuyer Program
Palm Springs FTHB
HWS will Market the
Program
Approved Lenders will
Pre Qualify
Homebuyers for first
mortgage
are eligible for Section
verify homebuyers that
HWS and City staff will
14 FTHB Program
prefence
Approved Homebuyer
Homebuyer takes HUD
Class
Homebuyer will hire a
Realtor to Assist
Finding an Eligible
Home
Realter will submit
Offer on home
Offer on home is
accepted Approved
Lender will submit
required program
applications to HWS
HWS will review and
underwrite the
applications
HWS will prepare loan
assistance that will be
docs for down payment
recorded on title and
submit to escrow
HWS will request 25%
of program funding
from City
HWS will deposit funds
in a separate account
for program
HWS will wire funds
into escrow
Escrow closes and
homebuyer receives
keys to home
compliance for the life
loans and monitor for
HWS will servivce the
of the loans
reports to City of Palm
HWS to submit regular
Springs as needed
Item 3C - Page 59
l l l l
l l l l
l l l
ATTACHMENT F
Item 3C - Page 60
10/22/25 N.Arechiga
City of Palm Springs First Time Home Buyer Program Staff City of Palm Springs
Jay Virata, Director
Housing & Community Development Department
City of Palm Springs
Noe Arechiga, Community Development Administrator
Housing & Community Development Department
City of Palm Springs
Riverside County
Juan Garcia, Deputy Director
Community & Housing Development
Riverside County Housing and Workforce Solutions
Susan Guarino, Development Specialist II
Community & Housing Development
Riverside County Housing and Workforce Solutions
Deysi Salazar, Development Specialist I
Community & Housing Development
Riverside County Housing and Workforce Solutions
Veronica Miranda, Development Specialist I
Community & Housing Development
Riverside County Housing and Workforce Solutions
Luvia Reyes, Development Specialist I
Community & Housing Development
Riverside County Housing and Workforce Solutions
Martha Huerta, Office Assistant II
Community & Housing Development
Riverside County Housing and Workforce Solutions
Item 3C - Page 61
ATTACHMENT G
Item 3C - Page 62
Program and Location Information
Project Name Palm Springs FTHB
Affordable Housing Program Other Federal, State, or Local Program Year 2025 (On or after 04-01-2025)
State CA
County Riverside County
MSA Riverside-San Bernardino-Ontario, CA MSA
Rent Calculation Based on Vli
Persons/Bedroom 1.5 Person/Bedroom
4 Person AMI $103,900
HUD Published 50% National Non-Metropolitan Median Income $41,150 Placed in Service Date 2025 (On or after 04-01-2025)
Rent Floor Election 2025 (On or after 04-01-2025)
Income Limits for 2025
(Based on 2025 Vli Income)
Persons 60% 140%
1 Persons $47,040 $109,760
2 Persons $53,700 $125,300
3 Persons $60,420 $140,980
4 Persons $67,140 $156,660
5 Persons $72,540 $169,260
6 Persons $77,880 $181,720
7 Persons $83,280 $194,320
8 Persons $88,620 $206,780
9 Persons $94,020 $219,380
10 Persons $99,360 $231,840
11 Persons $104,760 $244,440
12 Persons $110,100 $256,900
Rent Limits for 2025
(Based on 2025 Vli Income)
Bedrooms (People) 60% 140% FMR
0 Bedrooms (1) $1,176 $2,744 $1,776
1 Bedrooms (1.5) $1,259 $2,938 $1,852
2 Bedrooms (3) $1,510 $3,524 $2,306
3 Bedrooms (4.5) $1,746 $4,074 $3,079
4 Bedrooms (6) $1,947 $4,543 $3,745
5 Bedrooms (7.5) $2,148 $5,013
Item 3C - Page 63
ATTACHMENT H
Item 3C - Page 64
Item 3C - Page 65
• l
... ... .... ,. ___ :........... ~..-............ ,.~--~--- ........ .. .. ,. ........ • ... .
Item 3C - Page 66
$5.91M
Park Naming
Memorial
Support for healing center
Item 3C - Page 67
• Distribution Method: Direct payment to the claimant's attorney trust account, who will oversee disbursement to verified former Section 14 residents and their descendants. • Claimant Class: Claimants to provide opportunity ( 4 wks) for other qualified persons to join class of claimants. Claimants to agree to City's anti-discrimination clause. • Basis of Amount: Based on an estimated current value of $30K per home, total of 197 non-abandoned residences.
• Usual Settlement Provisions:
o No admission of wrongdoing/liability by either party. o Release and waivers from 1,200 existing claimants and any others who join. • Recommendation: Direct city attorney to prepare settlement agreement, in form and substance as approved by the city attorney and city manager, and direct the city manager to execute all documents necessary to effectuate settlement.
Item 3C - Page 68
# of Dwellings Based on
145 (April 2024 City review of abatement records from 1965-1969, City Council abandoned residences are not accounted for estimate)
197 (October 1965-1967 abatement records, which is the timeframe 2024 City with the most documentation of City involvement Council estimate)
Utility bill records also indicate that there were roughly 200 residences during this time period
Item 3C - Page 69
Section 14 Memorial Monument
• Objective: A public monument to honor and remember
farmer Section 14 residents, listing their names.
• Location and Timeline: The monument location will be
selected in consultation with community representatives.
Item 3C - Page 70
Park N amini:
Objective: As new parks come online, the City will work with the Section 14 claimants to name a city park.
Item 3C - Page 71
Support for Cultural/Racial Healin2 Center
• Purpose: To establish a community-driven center focused on cultural and racial healing.
• City Role: Limited to providing letters of support and limited staff assistance.
Item 3C - Page 72
Staff seeks Council direction at this time on next steps.
Item 3C - Page 73
Item 3C - Page 74
$1 OM over ten years
$1 OM over ten years
Item 3C - Page 75
• Pro2ram Details: Provides down payment assistance and grants to first-time homebuyers, with a focus on supporting low-income residents to attain homeownership.
• "Silent second" that falls off after 10 years. Maximum assistance will be $1 00K. • Start Date: Fall 2025
• Tar2eted Outreach: In early 2025, the City will implement a comprehensive outreach program to inform the public, with particular efforts to reach Section 14 families.
Item 3C - Page 76
Up to 140% AMI
In today's dollars:
$ l 32.3K for a
family of 4
For Sale
Multi-Family
Down payments
for condos,
townhomes, etc.
For Sale
Single Family
Down payments for
SFH homes as a part
of the City's CLT
Item 3C - Page 77
• Community Land Trust: Separate entity from the City that can finance and purchase real estate to create and preserve affordability.
o CLT resells the properties they purchase at below market rates by separating the ownership of the land and the building.
o Allows the CLT to retain the land in perpetuity to ensure affordability o Purchasers can gain generational wealth and a percentage of the equity upon selling • Objective: Secure land and develop affordable housing that can be purchased or rented at accessible rates for low to mid-income residents.
• Start Date: Fall 2025
• Priority Access: Open to all Palm Springs residents with targeted outreach to former residents and descendants of Section 14.
~ ~ ~
Item 3C - Page 78
• Caravanserai Project: Provides an access-to-capital program for individuals from marginalized and under-resourced communities, supporting the launch of both for-profit businesses and nonprofit organizations in Palm Springs. • February 2024: $35K (seven local participants, $5K grants to cover essential startup expenses)
• 2021-2023: Over 3000 attendees
o Over 7 5% of these entrepreneurs are women, 80% BIPOC entrepreneurs (29% Black/ African American, 49% Hispanic, 12% Asian).
Item 3C - Page 79
B • T • • P
Graduation ~
• Cohort-format • Attendance at all • Participants selected business-focused sessions following a competitive
workshops • Develop road map for application process
• 1 : 1 coaching and venture • Ideal participant is:
mentorship sessions • Present pitch deck 1. For-profit entrepreneur • Access to seed located in Palm Springs /
investments and serves primarily Palm
ongoing support from Springs customers
Caravan SBDC 2. Early-stage entrepreneur
3. Minority entrepreneur
4. Low-income
Item 3C - Page 80
Community
Wellbein2
• Fosters community
engagement
• Enhance quality of
life for all residents
• Enrich variety and
availability of local
amenities
Connection to
Capital
• Connecting
beneficiaries with
sources of capital
• Invested over $2M
Economy Resilience
• Diverse business
environment
• Sustainable small to
mid-sized businesses
• Long-term stability
Item 3C - Page 81
Staff seeks Council direction at this time on next steps for programmatic initiatives.
CITY COUNCIL STAFF REPORT
DATE: OCTOBER 22, 2025 BUSINESS & LEGISLATIVE
SUBJECT: REGULATION OF VEHICLES PARKED FOR SALE ON CITY STREETS FROM: Scott C. Stiles, City Manager
BY: Jeffrey S. Ballinger, City Attorney
SUMMARY:
The City has received complaints regarding vehicles parked in public streets for the purpose of sale, particularly in streets adjacent to residential neighborhoods. Residents are concerned about reduced parking availability, aesthetic impacts, and potential traffic safety hazards.
This agenda item provides the City Council with the opportunity to discuss and provide direction to City staff and City Attorney with regard to several options for addressing this activity.
RECOMMENDATION:
That the City Council receive and file this report and provide direction to staff and City Attorney regarding potential regulation of vehicles parked for sale on City rights-of-way.
BACKGROUND:
Over the years, the City has received complaints from residents regarding vehicles parked on City streets for the purpose of sale, particularly in both residential areas and streets adjacent to residential areas. These activities are undertaken by individuals; not commercial operators such as new or used car dealers. Residents have expressed concerns that this practice reduces the availability of on-street parking for those who live nearby, negatively impacts neighborhood aesthetics, and in some cases, creates potential safety hazards for motorists and pedestrians. In response, staff and the City Attorney’s Office have reviewed legal and policy options for regulating this practice, including relevant constitutional considerations and case law.
STAFF ANALYSIS:
The following are some options that the City Council may wish to consider.
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City Council Staff Report
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Regulation of Vehicles Parked For Sale on City Streets
Prohibit “For Sale” Signage
One approach that some cities have taken is adopting an ordinance prohibiting the parking of vehicles on public streets when such vehicles have “For Sale” signage on them.
Courts have generally found such ordinances to be content-based restrictions under the First Amendment because they specifically target the message displayed (“For Sale”) on an otherwise legally parked vehicle. As a result, these ordinances are subject to strict scrutiny and have often been found unconstitutional unless supported by substantial evidence of actual harms caused by the practice. In cases such as People v. Moon, Burkow v. City of Los Angeles, and Pagan v. Village of Glendale, courts have invalidated similar ordinances where cities relied on general complaints or speculation, rather than documented evidence, to justify the restrictions. Accordingly, ordinances of this nature are highly vulnerable to constitutional challenge.
Prohibit Commercial Sales in Rights of Way
An alternative approach would be to regulate commercial activity in the public right-ofway, without express reference to the content of any signage. For example, the City’s Municipal Code currently prohibits parking of vehicles in City streets for the purpose of “washing, waxing, wiping, greasing, or repairing such vehicle”. (Palm Springs Municipal Code, § 12.28.050.) A content-neutral ordinance prohibiting commercial activities, including vehicle sales, on City streets could withstand greater legal scrutiny because it applies equally, regardless of whether a vehicle is advertised with a sign. Such an ordinance could also include a permitting or licensing component, requiring individuals or businesses to obtain approval before conducting sales on public streets. While more legally defensible, this option carries administrative costs, including processing applications, issuing permits, and enforcing compliance.
Parking Regulations/ Time Limitations
The City may also consider existing parking management tools such as time-limited parking, no-parking zones, or curb markings in areas where vehicle sales in streets are prevalent. Specifically, the Palm Springs Municipal Code authorizes the City Traffic Engineer to place curb markings and signage to indicate parking/standing regulations, including any that the Council establishes by resolution. (PSMC, §§ 12.32.010, 12.32.040,
12.32.080, 12.32.090, 12.32.100.) These restrictions are content-neutral because they apply to all vehicles, regardless of signage or purpose. Courts have generally upheld these types of time, place, and manner restrictions, so long as they are reasonable and serve legitimate government interests such as promoting efficient parking, reducing congestion, or ensuring safe access for emergency vehicles. Drawbacks of this approach include potentially displacing the problem to other areas of the City, and overly restrictive parking rules may inconvenience nearby residents and visitors.
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City Council Staff Report
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Regulation of Vehicles Parked For Sale on City Streets
Parking Permit Program
Another option available to the City is to establish residential parking permit programs in certain neighborhoods, pursuant to authority granted to cities in California Vehicle Code Section 22507. These programs limit on-street parking in designated areas to neighborhood residents and their guests, reducing the presence of non-resident vehicles, including those displayed for sale. While effective in addressing neighborhood-specific concerns, residential parking permit programs require ongoing administrative resources for processing applications, issuing permits, and enforcement. They also do not address similar issues that may arise outside of the designated neighborhoods and may inconvenience visitors, service providers, or other legitimate non-resident users of public streets.
Regulation based on Location of Registered Owner
One additional approach the City could consider would involve regulating where vehicles can be parked for sale within the City based on the DMV-registered address of the vehicle.
This would not directly regulate vehicle registration, which remains under state authority, but instead would focus on the location and manner of sales within the City. One way to potentially justify this type of regulation would be to frame it under the City’s zoning and land use powers to control where commercial activity, including vehicle sales, can occur, similar to restrictions on outdoor vending or other business operations in public spaces.
Framing the restriction in this way could allow the City to make the argument that it is exercising its traditional authority to protect public welfare, neighborhood quality of life, and orderly land use.
City staff is not aware of this approach being implemented in other jurisdictions. As such, there is really no case law directly on point. Even assuming the City had clear legal authority, enforcement of such a regulation could be burdensome. City staff would need to access and verify DMV registration data for each vehicle, track the location and frequency of sales activity, and follow up with ticketing. Monitoring compliance in real time across multiple streets would require significant resources and staff time, and violations could be difficult to substantiate. For these reasons, the practical challenges of implementing a regulation based on registered addresses may outweigh potential benefits, even assuming the legal framework were sound.
Therefore, City staff and the City Attorney request Council direction as to which, if any, of these options the City Council would like to see implemented.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the Item 3D - Page 3
City Council Staff Report
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Regulation of Vehicles Parked For Sale on City Streets
environment. The requested action is limited to receiving and filing a report and providing direction to staff, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
Approval of this action supports City Council strategic plan to provide quality of life, and well maintained community infrastructure for City residents.
FISCAL IMPACT:
The fiscal impact will depend on the regulatory approach selected by the City Council.
Options involving permit programs or expanded enforcement would likely require additional staff time and administrative costs, while parking restrictions may require expenditures for signage and curb markings.
REVIEWED BY:
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles
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