Multiple Coachella Valley Cities Face Same Decision on Homelessness Program Funding Increase

Both Palm Springs and Cathedral City will hold separate council meetings tonight to consider the same proposal: increasing their annual contributions to the Coachella Valley Association of Governments (CVAG) from $100,000 to $125,000 for the next three years to support the CV Housing First homelessness program.

According to the Palm Springs staff report, the city is being asked to approve a three-year memorandum of understanding totaling approximately $390,200, with the initial $125,000 payment increasing annually based on the Consumer Price Index.

Palm Desert is also facing the same decision, with its city council agenda indicating they will consider the move during its Thursday night meeting this week. The Palm Desert staff report, prepared by Ivan Tenorio, Homeless and Supportive Services Manager, recommends approval of the MOU not to exceed $125,000 for fiscal year 2025-2026.

Program Details and Regional Impact

The CV Housing First program focuses on the "CV 200" - a by-name list of the 200 most vulnerable, chronically unsheltered individuals across the Coachella Valley. According to the Palm Desert staff report, these individuals often have high service needs, frequent law enforcement contact, and long-term barriers to housing.

Palm Desert has consistently been assigned 30 slots from the CV 200 list each year, reflecting higher concentrations of unsheltered individuals in their jurisdiction. The city's track record shows varying success rates:

• 2021: 10 out of 30 permanently housed (33.33%)

• 2022: 5 out of 30 permanently housed (16.67%)

• 2023: 5 out of 30 permanently housed (16.67%)

• 2024: 9 out of 30 permanently housed (30%)

• 2025: 1 permanently housed year-to-date

According to the Palm Springs staff report, in the first quarter of 2025, CVAG housed 38 clients in Crisis Stabilization Housing, with eight moving into permanent housing. An additional five clients moved into permanent housing through outreach efforts.

Financial Pressures Drive Increase

The $125,000 contribution represents the first increase in over 15 years for participating cities, rising from the prior $100,000 commitment. The Palm Desert staff report notes that the increase "acknowledges the intensive staff time required to work with chronically homeless individuals, whose complex needs often demand persistent outreach and long-term engagement."

According to the Palm Springs staff report, the CVAG Executive Committee approved the increase at their December 2, 2024 meeting, requesting that each agency approve and sign a multiyear MOU. The program has been operating with additional funding needs as costs for crisis stabilization units and other services continue rising.

Regional Coordination Approach

The program represents a coordinated regional response to homelessness. As stated in the Palm Desert staff report, "Participation in the CV Housing First program supports a unified, data-informed model that targets individuals with the most complex housing needs."

The Palm Springs staff report emphasizes that CVAG's approach uses "a combination of strategies to house the hardest, most shelter resistant chronically homeless people" including rapid rehousing, outreach, crisis stabilization units and other supportive services.

Funding and Future Projections

Palm Desert plans to fund their contribution through the Permanent Local Housing Allocation (PLHA) program, though the staff report notes that a new five-year PLHA cycle may see decreased allocations due to lower revenue projections.

The Palm Springs agreement includes annual inflation adjustments based on the Riverside-San Bernardino-Ontario Consumer Price Index, with the city estimating a 4% annual increase for budgeting purposes. Their three-year commitment breaks down as:

• 2026: $125,000

• 2027: $130,000 (estimated with 4% increase)

• 2028: $135,200 (estimated with 4% increase)

All three cities are expected to vote on their respective agreements this week, with Cathedral City and Palm Springs meeting tonight and Palm Desert scheduled for Thursday.