After a 14-year gap, new affordable housing units have opened for tenants in Palm Springs

Two years after breaking ground, and more than a decade since the last project of its type came online, a new affordable housing complex in Palm Springs is now welcoming tenants.

The Monarch Apartments, which sit on 3.6 acres at the southeast corner of North Indian Canyon and San Rafael Drive, received occupancy permits in December. Shortly after, keys for the first of 60 units were handed to residents. All units are expected to be occupied by the time of an official ribbon-cutting ceremony slated for Feb. 22.

The community includes a dog park, a splash pad, BBQs, a children’s play area, and walking paths. The buildings are designed to seamlessly integrate with the world-renowned architecture of the surrounding community, which includes homes designed by Donald Wexler. More than 500 applications for residency were received.

“The opening of the Monarch Apartments is a monumental event for the City of Palm Springs,” Councilmember Christy Holstege said Tuesday. “This is the first new low-income project completed in Palm Springs in over a decade — and the direct result of the City Council prioritizing the much needed development of more affordable housing projects; securing outside funds, donating city land, and contributing millions of dollars to work with developers to ensure our residents have safe and comfortable communities where they can continue to live and work in Palm Springs within their means.”

Holstege was the city’s mayor when she spoke at the October 2021 groundbreaking for the project. At the time, it had been 12 years since any new affordable housing had been added to the city’s stock — an issue both her and fellow Councilmember Grace Garner, who served as mayor last year, made a priority.

To encourage developers to commit to the project, the city offered up the land, waived fees, and contributed an initial $1.8 million. Leaders here then found a willing partner in the Community Housing Opportunities Corporation (CHOC), an organization dedicated to expanding affordable housing first in Northern California and now in both Palm Springs and Coachella.

Similar to other post-pandemic developments, what was originally a $31 million project when it broke ground became estimated to cost $39 million last year. With only $36 million in committed funds, it required an extra boost from the Palm Springs City Council last July to bring it to the finish line. In total, the city’s contribution totals an estimated $5.5 million, including the land value and waived fees.

The complex is comprised of 1-, 2-, and 3-bedroom units for residents who qualify based on a household income range of 30-60% of the Area Median Income (AMI). Programs tailored to residents’ needs will be provided by CHOC Impact—the organization’s resident services division. 

While much more housing of its type is needed both in the city and throughout the state, the project symbolizes what’s possible, according to affordable housing advocates and CHOC leadership.

“The Monarch Apartment Homes are a true example of how affordable housing– when designed appropriately– can easily be integrated into the greater community,” said Joy Silver, CHOC’s chief strategy officer, who is based in Palm Springs. “It’s an excellent example of how the statewide affordable housing challenge can be solved both beautifully and practically.”

Dozens of affordable housing projects are either under construction or in the works throughout the Coachella Valley, with city councils, planning commissions, and critical stakeholders pitching in to push nearly 4,500 units of affordable housing forward – a massive increase from just five years ago.

“From 2010 to 2018, there was an average of about 38 units of affordable housing per year being produced in the Coachella Valley,” said Ian Gabriel, director of data, policy, and planning for the local nonprofit Lift to Rise in late 2021. “Now there are about 1,600 units that are either under construction or set to break ground within six months.”

At the same time, however, rents have skyrocketed for many in the valley. The cost of an average rental in Palm Springs listed on Zillow was $529 more in January 2022 than it was when the pandemic started in March 2020.

“There is no question that our valley needs more affordable housing options for residents and working families in the area who struggle to make ends meet yet are the backbone of many industries here,” said Silver. “They often must choose between paying for housing versus other necessities such as childcare, food, and healthcare.

“They are caregivers, servers, drivers, and many other workers who make our desert cities work.  Housing such as this not only provides safe, stable, and affordable housing— like Monarch Apartment Homes, it is something that residents can joyfully take pride in.”  

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