On May 23, 2024, the Palm Springs City Council reviewed and approved a significant proposal from Neighborhood Partnership Housing Services Inc. (NPHS) aimed at increasing affordable housing in the city. The proposal involves the development of six eco-friendly, single-family homes in the Desert Highland Estates neighborhood, targeting low-income first-time homebuyers.
Project Overview
The NPHS proposal includes a Disposition and Development Agreement (DDA) for the sale of three city-owned parcels and financial assistance for the construction of the homes. The properties involved are located at 233 West Tramview Road, the west side of El Dorado Boulevard south of West Tramview Road, and Rosa Parks Road. These parcels are currently vacant and were originally acquired for the Desert Highland Infill Program, which aimed to support moderate-income families.
Financial Structure and Support
The total estimated investment for this project is $2,815,570, which includes a combination of city contributions and external funding. The city plans to provide financial assistance through a Conditional Grant Agreement, which will cover a significant portion of the construction costs. Additional funding is expected from the Low-Income Investment Fund, facilitated by the organization Lift to Rise.
Design and Environmental Sustainability
NPHS is set to develop the homes using eco-friendly, factory-built construction methods. Each home will be approximately 1,500 square feet and include three bedrooms, two bathrooms, and a two-car garage. To enhance sustainability, the homes will be equipped with solar panels and battery storage systems, reducing homeowners’ long-term operating costs.
Community and Long-term Affordability
The homes will be sold to households earning no more than 80% of the area median income (AMI), ensuring that they remain affordable. To secure long-term affordability, the properties will be placed in a Community Land Trust (CLT) managed by NPHS. This arrangement includes a 99-year affordability commitment, meaning the homes will remain affordable for future generations.
Public Comments and Community Engagement
The City Council’s decision follows extensive community engagement and public notification. A Request for Proposals (RFP) was issued, and NPHS was the sole respondent. The proposal was evaluated based on several criteria, including experience, understanding of the scope of work, site plan quality, and cost. A community engagement meeting held on May 13, 2024, provided additional public input, which was considered in the final proposal.
City Council Members’ Feedback
Councilmember Lisa Middleton expressed strong support for the project, highlighting its potential to provide much-needed affordable housing options for local families. “This project aligns perfectly with our strategic goal of improving quality of life through affordable housing,” she said.
Mayor Grace Garner emphasized the importance of sustainability in new developments. “By incorporating solar panels and battery storage, this project not only addresses housing affordability but also contributes to our city’s environmental goals,” she stated. “This really creates this pipeline of homeownership, which I think is really exciting.”
“I want to see us acquire more lots,” said Councilmember Christy Holstege. “I’d love to see us buy homes. There’s a lot of opportunity that we have in terms of thinking of creative ways to serve residents, to provide them with housing that they need.”
Environmental Assessment
The project is not classified as a “Project” under the California Environmental Quality Act (CEQA), meaning it does not pose a significant environmental impact. The agreement constitutes a preliminary contract, ensuring that the City can comply with CEQA before finalizing any definitive course of action.
Next Steps
The Palm Springs City Council approved the DDA and the Conditional Grant Agreement, which will facilitate the transfer of the properties and the allocation of funds for the project. The homes are anticipated to be completed by the winter of 2025, providing new homeownership opportunities for low-income families in Palm Springs.
