Palm Springs council to weigh appeal, funding for two affordable housing projects along West San Rafael Drive

The Palm Springs City Council will confront two closely linked affordable housing proposals along West San Rafael Drive next week at its planned regular meeting — one facing a formal appeal from neighboring property owners, and another advancing only to a preliminary funding discussion — as the city continues pushing forward on meeting state housing mandates.

The projects sit within roughly 100 yards of each other near the city’s northern edge and would collectively add nearly 200 affordable apartment units to the area if built.

The first project, an 82-unit affordable apartment complex at 305 West San Rafael Drive, was approved unanimously by the Planning Commission in November but is now under appeal by adjacent property owners. The second, a 115-unit affordable housing development planned for the northwest corner of San Rafael Drive and McCarthy Road, is not yet seeking land-use approvals and is before the council solely for consideration of city financial assistance.

Appeal challenges 82-unit project approval

The appeal centers on the 82-unit project proposed by Red Tail Multifamily Land Development on a vacant 4-acre parcel zoned for multi-family use. Planning commissioners approved the project 7-0 on Nov. 18, granting a major development permit and density bonus incentives available under state law for fully affordable housing.

In appeal documents submitted by neighboring property owners, appellants argue the project would create privacy impacts, introduce excessive height and massing, improperly locate refuse enclosures, and result in what they describe as an overconcentration of income-restricted housing and social services in the area. They also challenge the city’s determination that the project qualifies for exemptions from further environmental review.

City staff maintain that the project complies with the city’s zoning code, General Plan and state Density Bonus Law, which requires local governments to grant increased height, density and parking reductions for qualifying affordable housing developments. Staff also note that the city lacks legal authority to deny those incentives when statutory criteria are met.

The three-building complex would rise two to three stories, reach a maximum height of just over 31 feet, and include one-, two- and three-bedroom units restricted as affordable for at least 55 years. Amenities would include a playground, dog park, community space and landscaped open areas, along with street and sidewalk improvements along San Rafael Drive, Virginia Drive and Puerto Del Sol.

If the council denies the appeal, the Planning Commission approval would stand. If the appeal is upheld, the entitlement would be overturned and the project could not proceed as approved.

Funding decision tied to appeal?

At the same meeting, council members are also scheduled to consider a $3.8 million city loan request tied to the 82-unit project. Staff recommend that any funding approval be expressly conditioned on the appeal being denied and the project’s entitlements becoming final.

The city’s proposed loan would help close a financing gap and allow the developer to apply for state and federal affordable housing funding, including tax-exempt bonds and low-income housing tax credits. Construction could begin as early as late 2026 if funding is secured, with completion projected in 2028.

Staff emphasize that approving the loan would not constitute a judgment on the merits of the appeal, but rather preserve the city’s ability to meet tight state financing deadlines should the project ultimately move forward.

Separate funding request for 110-unit project

Also on the Jan. 14 agenda is a separate request for city financial assistance for a 115-unit affordable housing community — tentatively named The San Rafael Apartments — planned at the intersection of San Rafael Drive and McCarthy Road, adjacent to the city’s Navigation Center.

That project, proposed by Pacific West Communities, is earlier in the development process and has not yet received Planning Commission or City Council land-use approvals. The request before the council is limited to funding: a $2.25 million loan to assist with land acquisition, along with authorization to structure certain development fees as repayable city loans.

The project would serve households across a range of income levels, including very-low-income residents, and is intended to complement — though not operate as — a service facility tied to the nearby Navigation Center. City staff say the location creates opportunities for coordination while emphasizing that the apartment complex itself would function as permanent housing.

A community meeting scheduled to discuss the San Rafael Apartments project Wednesday evening was cancelled. New meetings are being planned for Monday, Jan. 12, at the James O. Jessie Desert Highland Unity Center, and Jan. 20 via Zoom, but exact times have not yet been announced.

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