Cathedral City Considers $375,000 Commitment to Regional Homelessness Program

Cathedral City will vote Wednesday on a three-year agreement to increase its annual contribution to the Coachella Valley Association of Governments’ (CVAG) homelessness program from $100,000 to $125,000, marking the first funding increase in over 15 years. The proposal would commit $375,000 total through fiscal year 2027-2028 to support the CV Housing First program, which CVAG has operated since 2017.

Program Operations and Success

The CV Housing First program uses two primary approaches: rapid resolution services that help clients overcome barriers like securing identification documents and accessing benefits, and crisis stabilization units—apartments and hotel rooms where clients can stay up to 90 days while working toward permanent housing.

Since CVAG transitioned the program in-house in 2021, officials report increased responsiveness and capacity, particularly in assisting law enforcement and public health workers. The program focuses on clients who might not receive help elsewhere.

Cathedral City has contributed $100,000 annually since fiscal year 2021-2022, joining all other valley cities in funding the regional approach.

Financial Pressures Drive Increase

The contribution increase addresses mounting financial pressures on the program. Annual city contributions have remained at approximately $100,000 for more than 15 years without inflation adjustments, while costs for crisis stabilization units and other services continue rising.

According to the Cathedral City Staff Report, the program operated with a fund balance through fiscal year 2023-24 but is now running at a deficit.

Regional Equity Debate

CVAG's Finance Committee considered whether contributions should vary based on factors like population size, homeless counts, or economic capacity. The committee ultimately recommended maintaining uniform rates across all cities, citing the interconnected nature of Coachella Valley communities and the principle that reducing homelessness in one area benefits others.

Agreement Details

The proposed memorandum of understanding provides three-year funding stability, eliminating annual requests that require significant staff time. Cities can cancel with 60 days notice before a fiscal year begins. CVAG's legal counsel confirmed no legal impediments to multi-year commitments.

Cathedral City has already budgeted $125,000 for the program in both fiscal years 2025-2026 and 2026-2027. The third year will be addressed in the next biennial budget cycle.

Cathedral City Council will consider the agreement during its July 9 meeting at 5:30 p.m. in the Council Chambers at 68-700 Avenida Lalo Guerrero.