Palm Springs City Council to Consider $3 Million Commitment for Affordable Senior Housing Tonight

Palm Springs City Council is set to meet tonight at 5:30 p.m., with one of the biggest items on the agenda being a $3 million funding commitment for a new affordable senior housing complex planned near East Alejo Road.

The project, proposed by nonprofit developer Wakeland Housing and Development Corporation, would bring 72 units of 100 percent affordable housing to a roughly two-acre parcel owned by the United Methodist Church of Palm Springs. The church is not selling the land, but rather leasing it to Wakeland for the life of the project. To qualify, residents would need to be 55 or older and earn at or below 60% of the area median income, which works out to about $43,650 a year for a single person in Riverside County.

The city's $3 million would come in the form of a loan at 3% simple interest, with a 55-year affordability requirement attached, meaning even if the property changes hands, new owners would be legally required to keep rents low for the duration. The city does not expect to disburse the funds until 2029, and the commitment can be pulled if Wakeland fails three attempts to secure Low-Income Housing Tax Credits. No impact on the city's general fund is expected. 

Units would be spread across multiple income tiers, including some reserved for residents earning as little as 30% of the area median income.

If Council moves forward tonight, construction is targeted to begin in mid-2027 and wrap up by early 2029. The project is part of a broader city effort to meet state-mandated affordable housing goals, with roughly 470 total affordable units in the pipeline across several developments.

Also on tonight's agenda: community updates on the proposed Dream Hotel and Orchid Tree developments, a public hearing on the historic designation of the Hal Forrest Residence, and a discussion on the 2026–2027 Community Development Block Grant budget. Notably, a planned study session on Fire Station 1 has been postponed, with no new date announced yet. 

Tonight's meeting begins at 5:30 p.m. at Palm Springs City Hall, 3200 E. Tahquitz Canyon Way. Residents can also watch live at palmspringsca.gov.