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HomeMy WebLinkAboutItem 3D73-710 Fred Waring Drive, Suite 100, Palm Desert, CA 92260 | lifttorise.org Re: Item 3D - Discussion on the disposition of Desert Highland Gateway Estates Single-Family Residential Lots Dear Palm Springs City Council, Lift to Rise is writing to express our support for the staff recommendation to issue an RFP for the disposal of the parcels in question. Additionally, we express deep support for the Home Ownership Sweat Equity (also known as Self-Help) model and encourage the city to make the RFP available only to qualified non-profit affordable housing developers with a track record of building “Self-Help” homes using the Sweat Equity model. One such developer is the Coachella Valley Housing Coalition which has built dozens of Self-Help homes across the Coachella Valley. Self-help housing is a method by which participants can achieve home ownership through their own labor, also known as sweat equity. This means that participants work approximately 40 hours of labor a week toward the construction of their homes with technical assistance provided by a competent construction supervisor. In turn, the participant can use the sweat equity as the down payment on the home. In sum, self-help creates a better sense of community and stronger ties with homeowners, and substantially reduces the monetary cost of the home for the buyer, which is why we strongly suggest this method. Through our resident engagement work with various community-based organizations, we have heard from families in Palm Springs that want more opportunities to own their homes. Palm Springs is becoming increasingly unaffordable, further obstructing the possibilities for renters to build generational wealth through homeownership. Desert Highland Gateway Estates is a predominantly Black, working-class neighborhood that represents a hard-working and resilient community, yet they have not received the proper resources to advance socioeconomically. One solution is to use these Desert Highland Gateway Estates Single-Family Residential Lots to build “Self-Help” homes. In Palm Springs today, 41% of Black households own their homes, compared to 71% of non- Hispanic white households, and census data reveals that homeowners in Palm Springs earn double what renters earn. In terms of income, the Census data reveals that the median income among Black households in Palm Springs is $43,125 compared to $104,049 among non- Hispanic white households. Homeowners regardless of race earn more than double what renters do. According to Pulitzer Prize-winning journalist Trymaine Lee, in his article on Black inheritance in the New York Times Magazine, Black people are 13% of the United States population but hold less than three percent of the nation’s total wealth. In terms of net worth, 19% of Black households have zero or negative net worth, while just nine percent of white families are that poor. With these lots initially acquired with low-moderate housing funds set aside from the Palm Springs Redevelopment Agency, Lift to Rise urges you, the Palm Springs City Council, to meaningfully consider the disposition of Desert Highland Gateway Estates Single Family 01/26/2023 Public Comment Item 3D 73-710 Fred Waring Drive, Suite 100, Palm Desert, CA 92260 | lifttorise.org residential lots and create Self-Help homes as it would create more ownership opportunities for communities of color in Palm Springs. Lift to Rise was formed to transform the systems that generate the supply of affordable housing, recognizing that the combination of low wages and high housing costs are the root causes of financial precarity among Coachella Valley residents. That is why Lift to Rise and over 60 cross-sector partners, including the City of Palm Springs, have coordinated around a shared goal of reducing the regional housing cost burden at a population level through the production of 10,000 units of affordable housing in the Coachella Valley by 2028. Together, we are operating off a shared Action Plan which spans 5 key strategy areas: 1. aggregating a pipeline of community-prioritized projects across the valley, 2. growing a regional Housing Catalyst fund to spur production, 3. advocating at the local, state, and federal level for policies and regulatory changes that support housing production in our region, 4. engaging and mobilizing residents and elected officials in support of affordable housing, and 5. keeping residents housed through a coordinated eviction prevention strategy. We stand ready to support more affordable homeownership opportunities in Palm Springs and encourage the city to make the RFP for these lots available only to a qualified non-profit affordable housing developer, like the Coachella Valley Housing Coalition, with a successful track record of developing Self Help housing. We thank the city of Palm Springs for joining us in this work thus far and urge the city council to continue to prioritize the production of affordable housing to ensure that all residents are healthy, stable, and thriving and urge you again to prioritize affordability in this development. Thank you for your time. Lift to Rise 01/26/2023 Public Comment Item 3D