ATTACHMENT B
Draft Funding Commitment Letter
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
March 11, 2026
Taylor Holland
Director of Development
Wakeland Housing
1230 Columbia Street, Suite 950
San Diego, CA 92101
RE: FUNDING COMMITMENT IN THE AMOUNT OF THREE MILLION DOLLARS ($3,000,000), 1555 EAST ALEJO ROAD, PALM SPRINGS, CA
Dear Ms. Holland,
I am pleased to inform you that the Palm Springs City Council approved your request for funding at its meeting on March 11, 2026. A loan from The City will provide a loan in the amount of Three Million Dollars ($3,0 00,000) to assist with permanent financing for the 72-unit affordable rental housing project (Housing Project) located at 1555 E. Alejo Road (APN 508-060-038), Palm Springs, California 92262, in partnership with the United Methodist Church of Palm Springs which owns this property. As proposed, the Housing Project will include 72 affordable units for low-income seniors (55+), 36 units will be set aside for seniors who are exiting homelessness depending on the availability of rental subsidies from Riverside County, and a still to be determined number of units with a preference for veterans.
The City of Palm Springs anticipates that the loan proceeds in the total amount of $3,0 00,000 (Three Million Dollars) will be available for disbursement in Fiscal Year 2029.
Disbursement of funds will be subject to availability of budgeted funds, all standard pre- closing conditions, an executed lease agreement with the United Methodist Church of Palm Springs for development of this project with a term of at least 57 years, and verification of project financing. These and other terms will be documented in a separate Loan Agreement to be executed by the parties that will require separate City Council approval.
The funds will be made available as a loan under the following terms:
Interest rate: 3% simple annual
Term of Affordability: 55 years
Term of Loan: 57 years
Repayment: Annual payments based on residual receipts
Collateral: May include Leasehold Deed of Trust, Assignment of Plans and Contracts, and Right to Cure
Funding Commitment Page 2
Wakeland UMC Affordable Senior Housing
Post Office Box 2743 • Palm Springs, California 92263-2743 In addition, pursuant to Resolution No. 24654, the City will extend the benefits of the Affordable and Multi-Family Housing Incentive Program, which provides a waiver of applicable Permits Fees for projects that are 100 percent affordable.
The City and Developer will also enter into a separate Regulatory Agreement containing covenants to protect the City’s financial interest in the Housing Project, including long -term affordability requirements, reporting obligations, and compliance with all applicable federal and State program rules. The Regulatory Agreement will be recorded in the Official Records of Riverside County.
This Funding Commitment may be terminated at the City’s sole and absolute discretion.
Additionally, the Funding Commitment may be terminated if the Developer is unsuccessful after three (3) attempts to obtain Low-Income Housing Tax Credits or other required financing.
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