ATTACHMENT C:
Funding Commitment Letter (January 2026)
City of Palm Spring s
3200 E. Tahquitz Canyon Way • Palm Springs, California 92262 Tel: (760) 323-8299 • Fax: (760) 323-8207 • Web:
www.palmspringsca.gov
J
anuary 14, 2026
M
r. Darren Berberian
Pacific West Companies, Inc
8700 Technology Way
Reno, NV 89521
RE
: FUNDING COMMITMENT IN THE AMOUNT OF TWO MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($2,250,000)
D
ear Mr. Berberian,
I am pleased to inform you the Palm Springs City Council approved your request for funding at its meeting on January 14, 2026. A loan from The City will provide a loan in the amount of Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) to assist with the acquisition of approximately five acres located at the northwest corner of McCarthy Road and West San Rafael Drive (APNs 669-420-011, -012, and -014), Palm Springs, CA 92262, for the development of an affordable multifamily housing project (“Housing Project”).The City of Palm Springs anticipates that the loan proceeds in the amount of $2,250,000 will be available for disbursement during in the fourth quarter of 2026, subject to all standard pre-closing conditions and verification of project financing.
The c
apital funds are available as a loan for land acquisition under the following terms:
I
nterest rate: 3% simple annual
Term of Affordability: 55 years
Term of Loan: 57 years
Repayment: Annual payments based on residual receipts
Collateral: Deed of trust secured by the land and improvements I
n addition, pursuant to Resolution No. 24654, the City will provide applicable Development Impact Fees and Developer Fees to the Housing Project in the form of a City loan in the amount of Two Million Five Hundred Thousand Dollars ( $2,500,000). The fee loan will be subject to repayment from residual receipts, secured by a regulatory agreement, and governed by terms and conditions to be set forth in a separate loan agreement, which will require City Council approval.
I
nterest rate: 3% simple annual
Term of Affordability: 55 years
Term of Loan: 57 years
Repayment: Annual payments based on residual receipts
Collateral: Deed of trust secured by the land and improvements Draft Funding Commitment Page 2
San Rafael Apartments
Post Office Box 2743 • Palm Springs, California 92263-2743
The City’s land acquisition loan shall be senior in priority to the City’s fee loan. The City’s loan for Development Impact Fees and Developer Fees shall be subordinate to the acquisition loan and shall be evidenced by separate loan documents. The relative priority and subordination of the City loans shall be further documented in the respective loan agreements and recorded instruments, in a form acceptable to the City Manager and City Attorney.
Should you have any questions or require additional information, please contact Jay Virata, Housing and Community Development Director, at 760 -323-8228 or by email at [email protected].
Sincerely,
Scott C. Stiles, ICMA-CM
City Manager