A pair of existing affordable housing developments in Palm Springs received new and renewed support from the city following action taken last week.
Driving the news: At its regular meeting on March 9, the Palm Springs City Council approved an agreement with the owner of The Tahquitz Court Apartments that extends affordability restrictions for some units for an additional three years.
Looking back: The 107-unit project, originally built in 1963, was rehabilitated in 1993 with a $3.3 million tax exempt bond and a $590,000 forgivable grant from the city. A 30-year affordability covenant was put in place at the time of the grant, capping rents based on renters’ income levels.
Zoom in: With the 30-year agreement set to expire this year, and the owner hoping to convert the apartments to market rate units, city officials worked to hammer out a new agreement with the owner of the property that delays rent hikes for current tenants. It was predicted that some residents would have seen their rents spike by as much as 50%.
- Under the agreement, the owner may charge market rate rent on units that become vacant.
Why it matters: City officials hope the move buys current tenants time to relocate if they anticipate not being able to afford higher rents when the deal expires. The average rent in Palm Springs is roughly $1,900. At Tahquitz Court, rents average between $990 and $1,500.
But wait: The Council also held a public hearing last week needed for the California Municipal Finance Authority to issue $20 million in bonds that will be used to purchase and rehabilitate the Sunnyview Villas Apartments off North Indian Canyon Drive, which is also subject to affordable housing restrictions.
- Repairs will include new windows, roofs, and updated interior features.
