HomeMy WebLinkAbout6/29/2005 - STAFF REPORTS (19) A. 2
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DATE: June 29, 2005 CONSENT CALENDAR
SUBJECT: Analysis of Impediment to Fair Housing Choice
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
Attached is a copy of the City of Palm Springs Analysis of Impediments to Fair Housing
Choice (AI). The Al is a federal submission and reporting requirement of the U.S.
Department of Housing & Urban Development (HUD) Community Development Block
Grant (CDBG) and its five-year strategic planning process (called the Consolidated Plan
or ConPlan). As a recipient of Federal funding, the City certifies its obligation to
affirmatively further fair housing (AFFH) and identifies action to eliminate any
impediments. The AFFH obligation is not solely restricted to the design and operation
of HUD funded programs. The affirmatively further fair housing obligation extends to all
housing and housing-related activities in the City's jurisdictional area whether publicly or
privately funded.
RECOMMENDATION:
Receive and file the City's Analysis of Impediments to Fair Housing Choice, dated
December 2004.
STAFF ANALYSIS:
On March 24, 2004, the City Council approved allocating CDBG administrative funds by
Resolution 20862 to begin the process of updating its 1996 Analysis of Impediments to
Fair Housing Choice (AI) and engaging Cotton/Bridges/Associates (CBA), a division of
P&D Consultants.
This is an assessment report for the use of the federal CDBG funds ensures that local
governments consider the barriers to fair housing within their respective communities in
developing proactive approaches for addressing those barriers and integrating those
into their Five Year Consolidated Plan (ConPlan). The City's 2005 - 2010 ConPlan was
submitted to HUD last month for the five-year combined funding source of
approximately $3 million to address housing and community development activities.
Item No. 2. K .
City Council Staff Report
June 29, 2005- Page 2 of 2
The Well Lease Option Directive
The 2004-AI updated report re-examined the conditions and trends from our 1996
report, concentrating on the following information:
> Analysis of demographic profile, income distribution, housing stock
characteristics, and access to public transportation to determine the development
of housing patterns in relation to race, ethnicity, income, and other
characteristics.
> Evaluation of fair housing complaints and violations to identify trends and
patterns.
> Analysis of public and private activities that may impede fair housing choice in
Palm Springs including, but not limited to: Housing brokerage services and
financing assistance; Public policies and actions affecting the construction of
affordable housing; and Administrative policies concerning community
development and housing activities.
> Assessment of current public and private fair housing programs and activities.
> Provision of conclusions and recommendations to affirmatively further fair
housing choice in Palm Springs.
This AI provides a fair housing strategy to improve the quality-of-life and livability
throughout the community.
FISCAL IMPACT:
There is no direct fiscal impact to the General Fund in that these dollars are the City's
allocated federal annual entitlement funds from HUD's CDBG program. By remaining in
compliance with HUD requirements, the City is assured that these block grant funds will
continue to address vital programs and projects within the community. Otherwise, local
municipal resources may have to be provided or these community needs may go
unmet.
f� ))
J HN S. AYM ND DALE E. COOK, JR.
Dir of Community Development
Community & Economic Development Administrator
DAVID H. READY
City Manager
Attachment: Analysis of Impediment to Fair Housing Choice
Da IeC/C D BG05-06/CC_StaffRepo rt_Fi le&Rec'dAI.Ju n05
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Originally
• I Prepared:
, - • December
- • •
Administrative Draft Updated December 00
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' JUNE 29, 2005
ITEM 2.K.
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City of halm Springs
°" Community and Economic Development Department
' # t 3200 E Tahquitz Canyon Way • Palm Springs,California 92262
* 'ae a3 * TEL:(760)323-8259 • FAX(760)322-8325 • TDD(760)864-9527
OReOR/SED
e'1 �Q Community Redevelopment Agency•Community Development Block Grant
I P O RN Downtown Development •Economic Development• Housing• Public Art•Recycling
! June 17, 2005
VIA FEDERAL EXPRESS #8467-9086-7529
! Mr. David Acevedo Pitre', Branch Chief
ATTN: Ms. Eula Williams, Civil Rights Analyst/Investigator
! US Department of Housing &Urban Development
HUD Program Operations & Compliance
Civil Rights FHEO/Division
611 West Sixth Street, Suite 1100
' Los Angeles, CA 90017-3101
Re: 1996 Analysis of Impediments (AI)to Fair Housing Choice Update
' Dear Mr. Acevedo Pitre':
The City of Palm Springs is pleased to submit its AI Update in conjunction with its 2005 -2010 Five
Year ConPlan and 2005 - 2006 Annual Action Plan process for Community Development Block Grant
(CDBG). As well, this submission fulfills our August 2004 Special Assurances in providing an
overview of our fair housing strategies to affirmatively further fair housing and remedy impediments
to housing choice. Enclosed you will find three copies, one originally executed copy and two
photocopies of the AI in its entirety.
' There continues to be many successful fair housing efforts involving collaborative partnerships and
linkages of our local residents and housing providers. In addition, the infusion of public and private
resources has assisted in these endeavors. As in past years, the impact of these investments in our
! community has lent a hand to achieve the goals and objectives. Those same public - private
leveraging endeavors will be continued and heighten in providing further incremental successes in
the coming years.
! If you or Ms. Eula Williams, Civil Rights Analyst/Investigator, need clarification, please don't hesitate
to contact me immediately via email at my email address at DaleC(@ci.palm-sprincla.ca.us or by phone
at 760.323.8198. Thank you.
' Sincerely,
DALE E JR.
Community Development Administrator
! Enc: Analysis of Impediments to Fair Housing Choice-Originally Executed Copy& 2 Photocopies
' Cc: Mayor and City Council Members
David H. Ready, City Manager
John S. Raymond, City Community&Economic Development Director
! Chin Woo Choi,HUD CPD Program Manager Housing/Al x m Gvrhr. ano5
Post Office Box 2743 0 Palm Springs, California 92263-2743
' City of Palm Springs
Analysis of Impediments
' to Fair Housing Choice
1
' Originally Prepared: December 1996
Administrative Draft Updated December 2004
' City of Palm Springs
Community and Economic Development
' 3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
' EQUAL HOUSING
OPPORTUNITY
Consultant to City:
Cotton/Bridges/Associates
A Division of P&D Consultants
800 E. Colorado Blvd., Suite #270
' Pasadena, CA 91101
8214.00
U
1 * r
Executive Summary
' E.1 Overview of the City
' The City of Palm Springs has made a commitment towards providing equal
housing opportunities for all residents. The fundamental goal of this fair housing
policy is to make housing choice a reality through fair housing planning, which
' includes the following activities:
• Completion of an Analysis of Impediments to Fair Housing Choice (AI);
' Actions to eliminate identified impediments; and
• Maintenance of fair housing records.
' The Al represents the City's efforts to make an objective assessment of the nature
and extent of fair housing concerns in the City, and the potential impediments to
making fair housing choice available to its residents.
' E.2 Defining Fair Housing
Throughout this report, fair housing is defined as:
A condition in which individuals of similar income levels in the same
' housing market having a like range of housing choice available to them
regardless of race, color, ancestry, national origin, religion, sex, disability,
marital status, familial status, source of income, sexual orientation, or any
other arbitrary factor.
Impediments to fair housing choice are:
' Any actions, omissions, or decisions taken because of race, color, ancestry,
' national origin, religion, sex, disability, marital status, familial status, source
' Page E-1 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice '
of income, sexual orientation, or any other arbitrary factor which restrict '
housing choices or the availability of housing choices; or
Any actions, omissions, or decisions which have the effect of restricting '
housing choices or the availability of housing choices on the basis of race,
color, ancestry, national origin, religion, sex, disability, marital status, '
familial status, source of income, sexual orientation, or any other arbitrary
factor.
Though critical, the lack of affordable housing is not considered a fair housing '
issue in itself. Neither federal nor State fair housing laws identify low and
moderate income households as a protected class. While housing affordability is '
not a fair housing issue per se, the increased demand for housing and the
dwindling supply may create conditions where fair housing violations become a '
common part of the competition in the housing market. This study therefore
assesses the impact of high housing costs in the region on low and moderate
income households, and households with special housing needs. Fair housing '
concerns may arise to the extent that the lack of affordable housing
disproportionately impacts groups that are protected by fair housing laws.
E.3 Scope of Al Analysis '
This Al reviews the laws, regulations, conditions or other possible obstacles that '
may affect an individual or a household's access to housing. Specifically, the Al
contains:
• A comprehensive review of the laws, regulations, and administrative ,
policies, procedures, and practices;
■ An assessment of how those laws, regulations, policies, procedures, and '
practices affect the location, availability, and accessibility of housing; and
• An assessment of conditions, both public and private, affecting fair '
housing choice.
1
E.4 Community Participation
As part of the Al process, the report incorporates the issues and concerns of '
residents, housing professionals, and service providers. To assure the report '
responds to community concerns, the Palm Springs Community and Economic
Development Department conducted an extensive community outreach program
that included a community workshop held on October 20, 2004 for which the '
City invited participation by residents, service providers, realtors, lenders,
apartment associations, apartment owners, managers and tenants. The workshop
included a presentation about the Al, fair housing law, and available fair housing '
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' resources. The workshops then included a discussion and comment period
1 where attendees commented on housing and fair housing issues and concerns.
In addition, the City developed a community survey designed to solicit
t perceptions regarding fair housing issues. The City mailed the Workshop flyer and
survey to nearly 200 community members City-wide and emailed to over 80
residents, Subrecipients, RFP respondents, community organizations, the
Homeless Task Force, housing/service providers, realtors, lenders, apartment
associations, apartment owners, managers and tenants, inviting their participation.
In addition, interviews with key service providers and housing industry
' representatives were conducted and their comments were incorporated within
the Al.
' E.5 Summary of Report
E.5.1 Community Profile
The community of Palm Springs lies on the western edge of the Coachella Valley
in central Riverside County. Palm Springs remains an active vacation destination
and a popular retirement community, with a large number of homes being used
as second homes. It is estimated that the City's seasonal peak population swells
from 44,000 full-time residents to almost 75,000 residents during the winter
tseason.
Palm Springs is facing several unique trends and issues. The City is becoming
' increasingly diverse, with increases in the Hispanic population since 1990. While
immigration adds to the diversity of the community, educational background,
language skills and cultural traditions vary considerably. This may present a
' challenge for recent immigrants to find and access housing and information. In
addition, although the community is home to many affluent residents, many of
those living in Palm Springs earn low income levels, particularly senior residents,
' disabled residents, large family households and single-parent households. These
types of households are "special needs" households that have unique housing
needs and may face different impediments in the housing market. These issues
are summarized below:
t Large households have special housing needs due to their per-capita income and
the lack of adequately sized, affordable housing. Large households often face
discrimination in the housing market, particularly in the rental housing market. A
significant portion of large renter households earned low and moderate income
levels compared to other households in the City.
Seniors, particularly those with disabilities, often face increased difficulty in
finding housing accommodations or face targeted evictions. Their low-income
status limits their ability to balance the need for housing and other necessities
' such as healthcare. The housing needs of the elderly also include small units,
' Page E-3 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
supportive housing, such as intermediate care facilities, group homes, and other '
housing that includes a planned service component. Due to Palm Springs'
unique status as a popular retirement community, seniors comprise a substantial
proportion of residents. Slightly more than one quarter of all residents in the
community in 2000 were 65 years and older. Approximately 71 percent of '
elderly renter households in Palm Springs were low and moderate income.
Single-parent households are likely to have special needs for housing near day '
care and recreation facilities and to have access to public transportation.
Households headed by females are especially likely to need assistance because
women continue to earn less on average than men do in comparable jobs. Low '
income female-headed households with children experience additional burdens
when combined with limited transportation resources. Therefore, housing
choices for female-headed households are comparatively more limited than for ,
two-parent families. Approximately 385 female-headed single-parent households
with children and 83 male-heacled households with children live in poverty in
Palm Springs. '
Fair housing choice for persons with disabilities can be compromised based on
the nature of their disability. While housing discrimination is not covered by the '
Americans with Disabilities Act, the Fair Housing Act prohibits housing
discrimination against persons with disabilities, including persons with HIV/AIDS.
Persons with physical, mental, and developmental disabilities often require '
special housing to accommodate their conditions, and may face discrimination in
the housing market.
Persons with HIV/AIDS face an array of barriers to obtaining and maintaining ,
affordable, stable housing. For persons living with HIV/AIDS, access to safe,
affordable housing is as important to their general health and well-being as access '
to quality health care. For many, the persistent shortage of stable housing is the
primary barrier to consistent medical care and treatment. Despite federal and
state anti-discrimination laws, many people face illegal eviction from their homes '
when their illness is exposed. As of 2004, there are 1,604 individuals living that
are living with HIV or AIDS in Palm Springs, comprising 40 percent of all
HIV/AIDs cases within Riverside County. '
E.5.2 Lending Practices
One of the key aspects of fair housing choice is equal access to credit for the '
purchase or improvement of a home. Using Home Mortgage Disclosure Act
(HMDA) data, the Al reviews the lending practices of financial institutions and the '
access to financing for all households, particularly minority households and those
with very low- or low- incomes. The Al also examines lending patterns in low
and moderate-income neighborhoods and areas of minority concentration. Both '
conventional and govern rn en t-backed loans were examined.
E.5.3 Public Policies '
City of Palm Springs Page E-4 '
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Public policies may affect the pattern of housing development, the availability of
housing choices, and access to housing. The Al reviews the various policies that
may impact housing choices in Palm Springs. Policy and planning documents
' adopted by the City and associated agencies were reviewed to evaluate the
potential impediments to fair housing choice and affordable housing
development, including local municipal, building, occupancy, health, and safety
codes; moratoriums or growth management ordinances; and residential
development fees.
E.5.4 Current Fair Housing Profile
Implementation of fair housing practices is achieved through a network of
realtors, apartment associations, housing associations, fair housing providers, and
the courts. The Al provides an overview of issues identified by residents and
service providers via interviews and surveys; institutional structure of the housing
' industry and how they may impact fair housing; and fair housing services
available to residents.
E.6 Impediments and Recommendations
Impediments
Impediments identified can be grouped into private sector impediments induced
' by market conditions and socioeconomic characteristics, and public sector
impediments resulted From regulations, policies, and procedures. When
identifying recommendations, this Al focuses on actions that are directly related
' to fair housing issues and can be implemented within the resources and authority
of the participating jurisdictions, as well as within the five-year timeframe of this
Al.
' Access to Financing
' While conventional home financing is generally available to Palm Springs
residents, the majority of home purchase loan applications were
originated from upper income households earning more than 120 percent
' of the area MFI. The loan approval rate for lower income applicants that
earned less than 80 percent of the area MFI was considerably lower than
for upper income applicants.
• Only a very small number of households utilized government-backed
home loans to achieve home ownership. This may be due to a lack of
information regarding these programs and also the home sales price limits
under these programs. Also, conventional lenders have been successful in
developing loan products that are competitive with government home
' loans.
Page E-5 City of Palm Springs
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
• The share of Hispanic households that applied for a conventional home
purchase loan in 2003 is underrepresented compared to the citywide '
proportion of Hispanic households within Palm Springs.
• Among all conventional home loan applicants, Hispanic and African '
American households had the lower approval rates and higher denial
rates than other households in the community. '
• Among upper-income and middle-income applicants, Hispanic and
African American households had lower approval rates than White or '
Asian applicants. However, among low-income applicants (households
earning between less than 50 percent of the MH), Hispanics had a slightly
higher approval rate than other households. '
• Approval rates differ significantly by lender. Among the top ten lenders
active in the City, the discrepancy in approval rates was 39 percentage '
points in 2003.
• Geographic differences in mortgage lending activities do not appear to be '
an issue in Palm Springs. The overall approval rate for home loans
originating from moderate-income census tracts is slightly higher than
loans originating from upper-income tracts.
Public Policies '
• The current Palm Springs zoning ordinance does not include a '
classification or definition for community care facilities or group homes
and associated provisions for permitting such uses. In addition, the '
zoning ordinance does not include a classification or definition for
emergency shelters or transitional housing and associated provisions for
permitting such uses. '
• Currently, the City permits accessory apartments through a Conditional
Use Permit process. This process needs to be revised to reflect changes in
State law that requires such units,be reviewed via a ministerial review
process.
Fair Housing Services '
• The largest proportion of fair housing complaints over the past five years '
relate to disability and race. At the Fair Housing Workshop held on
October 20, 2004, several residents commented that they had
experienced fair housing discrimination in the rental market based on '
race and religion at Pacific Palms Apartments.
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City of Palm Springs Page E-6 ,
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' Consistent with the City's demographics, most complaints within Palm
Springs are made by White, Hispanic and African American residents.
However, it appears that the proportion of complaints originating from
African American residents is slightly over-represented in that, the
percentage of all complaints filed by African American residents represent
10 percent and whereas, African American residents represent four
percent of the City's population.
• While the Fair Housing Council of Riverside County has actively
distributed information, promoted fair housing information within Palm
' Springs, and provided workshops to various agencies near and within
Palm Springs, the Fair Housing Council has not recently conducted any
resident-oriented community workshops and training activities within
Palm Springs.
• Fair housing complaints affected female-headed households to a much
higher degree than male-headed households. In addition, the vast
majority of fair housing complaints in the City originated from low-
income households.
• Of all the cases investigated by the Fair Housing Council of Riverside
County in the past four years, there is little information that tracts the
' outcome of fair housing discrimination once it has been initially processed
by the Fair Housing Council of Riverside County.
' The majority of landlord/tenant disputes handled by the Fair Housing
Council of Riverside County were related to evictions, repairs, and
disputes over leases or rental agreements. However, issues related to
' entering/harassment increased noticeably in fiscal year 2003/04
compared to prior years.
' The number of complaints related to occupancy standards showed a
marked decreased in fiscal year 2003/04 from previous years.
' • The Fair Housing Council of Riverside County conducted 14 tests in Palm
Springs in fiscal year 1999/2000. Of the tests, 111 were rental tests, two
were related to sales and one was based on lending. Of the 14 tests, five
' tests showed findings of discrimination and all were rental tests. Of the
five cases, four were deferred to HUD and one was referred to a private
attorney.
' • According to the DFEH, a total of 18 cases in Palm Springs were opened
from fiscal year 1999 to 2003. Most cases were related to an AIDS
' related disability, marital status, and sexual orientation. Of the 18
complaints received, eight were closed with no probable cause, five were
successfully conciliated, and four were withdrawn without resolution.
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' Page E-7 City of Palm Springs
CO Of PALM SPRINGS Analysis of Impediments to fair Housing Choice ,
• According to the Fair Housing Survey distributed to Palm Springs '
residents, among the five individuals that indicated they had experienced
housing discrimination or were not sure, the majority indicated that a '
landlord or property manager had initiated the discrimination.
Respondents indicated that they had experienced housing discrimination
based on race, age and sexual orientation. '
• Of the five persons who indicated that they were discriminated against (or
were not sure), two persons reported the incidents. Of the three '
respondents that did not report the incident, one person felt it was too
much trouble, while two didn't believe it would make a difference.
• Comments provided at the fair housing workshop indicated that residents ,
have experienced fair housing issues related to landlords giving '
preferential treatment to tenants of a particular race/ethnicity, landlord
intimidation, lack of building maintenance and problems with security.
Many,of these concerns raised were specifically related to the Pacific '
Palms Apartment complex. In addition, the Fair Housing Council of
Riverside County commented that rising rental prices often affect senior
households in Palm Springs and that complaints regarding reasonable ,
accommodation are frequent in Palm Springs.
• According to FBI hate crime statistics and Palm Springs Police Department
Statistics, hate crimes consistently take place in Palm Springs. The '
majority of the hate crimes are based on sexual orientation/preference,
followed by racially motivated hate crimes. ,
Actions
While the Al identifies a number of potential issues, certain issues are beyond the '
ability of a local jurisdiction to address, such as those related to lending practices.
The actions identified below represent those that can be feasibly addressed by. '
the City.
Expanding Affordable Housing Opportunities
The fair housing equation has two sides. One the one side is the availability of a
range of housing choices and on the other side is equal access to those choices. '
Therefore, a community must ensure that a range of housing choices is available
to meet the various needs of all income segments in the community.
Action 1: The City will continue to provide homeownership opportunities in the '
community by promoting its Lease-Purchase Home Ownership Assistance
Program. The City will focus outreach efforts towards moderate income '
households, particularly to Hispanic households, since they have more difficulty
obtaining financing.
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CITY OF PALM SPRINGS Analysis of Impedimonts to fair Housing Choice
' Action 2: The City will continue to facilitate the development of housing for all
income groups within the community. Palm Springs will focus on facilitating
affordable housing development through a combination of financial and
regulatory assistance.
Action 3: The City will work with the fair housing service provider or other
housing service agency to regularly hold a credit workshop(s) for households
entering or re-entering the rental market and those entering the home ownership
market. Credit history information, the apartment rental process, home
ownership process and fair housing rights and responsibilities will be discussed.
Rehabilitation Assistance.
Action 4: The City will continue to provide rehabilitation assistance for owner-
and rental housing in the community through its Home Repair Program. The City
will ensure that information about these programs be provided in the City's
brochures and advertisements in English and Spanish. The City will examine the
' feasibility of providing information about these programs in languages other than
English on the City's website.
' Access to Information
Action 5: The City will work to expand its website to provide additional links to
housing services and resources, such as a link to the fair housing service provider
and a link to the Fannie Mae Foundation that offers free guides and resources for
first-time home buyers in English, Spanish, and other languages.
Public Policies and Programs
Action 6: As an ongoing effort the City will continue to pursue affordable housing
development programs identified in the 2000-2003 Housing Element. To the
extent feasible, the City will facilitate the development of housing affordable to
' lower and moderate income households according to the Regional Housing
Needs Allocation identified in the Housing Element.
Action 7: The Palm Springs zoning ordinance does not directly address
transitional housing and emergency shelters. To address State law requirements,
as part of the zoning ordinance update, Palm Springs will revise the zoning code
' to address the placement of emergency shelters and transitional housing in
appropriate zone(s). If a conditional use permit process is required, the City will
ensure that such process facilitates compatibility of such facilities with adjacent
' land uses and requires the same findings as other special needs housing.
Action 8: S8520, effective 2002, requires jurisdictions to analyze and remove
potential constraints to housing for persons with disabilities. The current Palm
Springs zoning ordinance does not include a classification or definition for
community care facilities. As part of the zoning ordinance update, the City will
' Page E-9 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
amend the zoning, code to permit the siting of residential/community care '
facilities in an appropriate zone in the community.
Action 9: The City will amend the zoning ordinance to comply with State law
regarding the provision of second units and density bonuses. Recent changes in
State law require local jurisdictions remove the conditional use permit process for '
second/accessory units. Such units must be approved via a ministerial process
when meeting the specific conditions. In addition, the City will update the City's '
density bonus provisions to comply with SB 1818.
Outreach for Lenders
Action 10: The City will work with local lenders and government institutions to
provide outreach to lower income residents about conventional and government- ,
backed financing. The City will encourage,local lenders to provide information in
English and Spanish.
Action 11: The City will encourage lenders, particularly local lenders, to sponsor '
home buying workshops in Palm Springs. The City will encourage local lenders to
provide information in variety of languages including English and Spanish.
Fair Housing Services and Outreach
Action 12: The City will work with the fair housing service provider or other '
housing service agency hold to annually hold a fair housing educational training
to local apartment associations and realtor associations including the Inland '
Valleys Association of Realtors, the California Desert Association of Realtors, the
Palm Springs Association of Realtors and the Apartment Association of the Greater
Inland Empire. Workshops will include fair housing law, rights and
responsibilities, and fair housing resources,
Action 13: The City will discuss the feasibility of encouraging the fair housing '
service provider to annually conduct testing on the rental, lending and home
buying processes and report findings to the City.
Action 14: The City will examine the feasibility, of requiring developer of new t
housing in Palm Springs or new owner of an existing rental property to submit an
affirmative marketing plan or attend a fair housing workshop. t
City of Palm Springs Page E-10 '
' .le f Fom Lw'
Table of Contents
Table of Contents
Section Page
1. Introduction ....................................................................................... 1-1
1.1 Overview of the City............................................................................ 1-1
1.2 Fair Housing Defined......................... ................................................. 1-5
1.3 Purpose of the Report.......................................................................... 1-6
1.4 Organization of Report........................................................................ 1-7
1.5 Report Preparation and Data Sources.................................................. 1-7
1.6 Public Participation.............................................................................. 1-8
2. Jurisdictional Background Data.........................................................2-1
' 2.1 Demographic Profile............................................................................ 2-1
2.2 Household Characteristics ................................................................. 2-13
2.3 Income Profile...................................................................................2-21
2.4 Housing Profile.................................................................................. 2-27
2.5 Affordable Housing............................................................................ 2-38
2.6 Licensed Community Care Facilities................................................... 2-45
' 2.7 Accessibility of Public Transit............................................................. 2-49
3. Mortgage Lending Practices............................................................... 3-1
3.1 Background......................................................................................... 3-1
3.2 Conventional Home Loans .................................................................. 3-2
3.3 Government-Backed Home Loans..................................................... 3-12
3.4 Lending by Census Tract.................................................................... 3-13
3.5 Predatory Lending and Housing Fraud............................................... 3-15
Page-i City of Palm Springs
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
1
4. Current Fair Housing Profile..............................................................4-1
4.1 Fair Housing Practices in the Ownership Housing Market....................4-1 1
4.2 Fair Housing Practices in the Rental Housing Market........................... 4-7 1
4.3 Fair Housing Services.........................................................................4-10
4.4 Hate Crimes ...................................................................................... 4-21
5. Public Policies....................................................................................5-1 1
5.1
General
Mun cipalllBulding, Occupancy, Health an 5 2
5.2 Local d Safety Code.......... 5-6
5.3 Moratoriums/Growth Management.................... ............................ 5-16
5.4 Development Fees/Assessments......................................................... 5-16 1
5.5 Community Representation ............................................................... 5-17
6. Conclusions and Actions.................................................................... 6-1 1
6.1 Potential Impediments......................................................................... 6-1
6.2 Actions ................................................................................................ 6-6 1
7. Signature Page.................................................................................... 7-1
Appendix A-Community Outreach.................................................................A-1 1
A.1 Community Workshops.......................................................................A-1 1
A.2 City of Palm Springs Fair Housing Survey.............................................A-4
Appendix B — Public Notice and Outreach Materials 1
Appendix C-2003 HMDA Data 1
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
List of Tables
' Table Page
2-1 Population Growth.............................................................................. 2-3
' 2-2 Age Characteristics and Trends ............................................................ 2-4
2-3 Race and Ethnicity............................................................................... 2-5
2-4 Changes in Household Type.............................................................. 2-14
2-5 Disabilities Tallied by Age.................................................................. 2-17
2-6 Homeless Facilities and Services in the Coachella Valley.................... 2-20
2-7 Household Income Profile by Race/Ethnicity ..................................... 2-22
' 2-8 Household Income Profile by Household Type.................................. 2-23
2-9 Tenure by Income by Household Type.............................................. 2-24
2-10 Housing Growth ................................................................................ 2-27
' 2-11 Changes in Housing Stock.................................................................. 2-28
2-12 Housing Tenure................................................................................. 2-29
2-13 Housing Unit Occupancy .................................................................. 2-30
' 2-14 Persons per Room in Occupied Housing Units .................................. 2-31
2-15 Single Family, Condominium and Mobile Home Sales....................... 2-33
2-16 Rents by Unit Size ............................................................................. 2-34
' 2-17 Housing Affordability......................................................................... 2-35
2-18 Housing Age...................................................................................... 2-37
2-19 Section 8 Voucher Holders by Race/Ethnicity..................................... 2-38
2-20 Section 8 Voucher Holders by Unit Size ............................................ 2-39
2-21 Assisted Housing................................................................................ 2-40
2-22 Licensed Care Community Care Facilities .......................................... 2-45
' 2-23 Major Employers................................................................................ 2-51
' 3-1 Disposition of Conventional Home Purchase Loan Applications
byRace of Applicant............................................................................ 3-3
3-2 Disposition of Conventional Home Purchase Loan Applications
by Income of Applicant........................................................................ 3-4
3-3 Approval Rate of Conventional Home Loan Purchase Loan Applications
by Race and Income............................................................................ 3-6
3-4 Disposition of Conventional Home Improvement Loan Applications
byRace of Applicant...................................................................I........ 3-7
' 3-5 Disposition of Conventional Home Improvement Loan Applications
by Income of Applicant........................................................................ 3-8
3-6 Disposition of Conventional Home Purchase Loan Applications by
' Lending Institution............................................................................... 3-9
3-7 Comparison of Conventional and Government-Backed Home Purchase
LoanApplications.............................................................................. 3-12
3-8 Comparison of Conventional Home Purchase Loan Applications by
CensusTract...................................................................................... 3-14
Page -iii City of Palm Springs
CITY Of PRIM SPRINGS Analysis of Impediments to fair Housing Choice
4-1 Discrimination Cases, findings and Dispositions ................................4-13 !
4-2 Landlord/Tenant Mediation Services..................................................4-16 !
4-3 Fair Housing Testing..........................................................................4-17
4-4 California State Department of Fair Employment and Housing Cases. 4-19
4-5 Palm Springs Police Department Hate Crime Statistics....................... 4-19
5-1 Residential Development Districts and Development Standards........... 5-3 !
5-2 Residential Zoning Categories, Land Use and Standards....................... 5-7
5-2 Residential Parking Standards ............................................................ 5-14
A-1 Number of Respondents by Zip Code..................................................A-1 !
A-2 Characteristics of Survey Respondents .................................................A-5 !
A-3 Who Do You Believe Discriminated Against You?................................A-5
A-4 Where did the Act of Discrimination Occur? .......................................A-6
A-5 On What Basis Do You Believe You Were Discriminated Against?.......A-6 !
A-6 Who Did You Report the Discrimination To?.......................................A-6
A-7 Why Did You Not Reporta Discrimination Incident?...........................A-7
A-7 What Was the Basis of the Hate Crime Incident?..'...............................A-7 '
List of Figures '
Figure Page
1-1 Regional Location................................................................................ 1-3 !
2-1 Historical Population Growth............................................................... 2-2
2-2 Concentrations of Hispanic Residents.................................................. 2-7 !
2-3 Concentrations of African American Residents..................................... 2-9
2-4 Concentration of Asian Residents....................................................... 2-11
2-5 Median Household Income .............................................................. 2-21 ,
2-6 Low and Moderate Income Areas...................................................... 2-25
2-7 Median Home Prices......................................................................... 2-32
2-8 Affordable housing Projects................................................................ 2-43 !
2-9 Community Care Facilities................................................................. 2-47
2-10 Transit Access to Community Facilities............................................... 2-53
2-11 Transit Access to Major Employers..................................................... 2-55 !
4-1 Hate Crime Statistics in Palm Springs:................................................ 4-22
!
!
City of Palm Springs Page -iv ,
' PALM
Chapter 1
1
Introduction
1 .1 Overview of the City
The community of Palm Springs lies on the western edge of the Coachella Valley
in central Riverside County approximately 107 miles east of Los Angeles.
Incorporated in 1938, the City of Palm Springs has a rich and diverse history. For
thousands of years, the Coachella Valley was home to the Agua Caliente Band of
Cahuilla Indians. However, development of the town did not begin until the late
1800s, when the Southern Pacific Railroad completed a rail line through the
desert to the Pacific Ocean, bringing with it various explorers, colonizers, and
soldiers.'
' Palm Springs experienced much of its growth after World War II when the City
began to establish itself as a popular recreational spot and retirement community,
particularly for movie celebrities. Palm Springs later became known as "The
Playground of the Stars."
Today Palm Springs remains an active vacation destination and retirement
community, with a large number of homes being used as second homes. It is
estimated that the City's seasonal peak population swells from 44,000 full-time
residents to almost 75,000 residents during the winter season.-
Palm Springs is facing several unique trends and issues. The City is becoming
increasingly diverse, with increases in the Hispanic population since 1990. In
addition, although the community is home to many affluent residents, many of
those living in Palm Springs earn low income levels, particularly senior residents,
large family households and single-parent households. Growth and diversification
' in the job market, increased housing construction, and the community's
History of Palm SprinPs- Palm Springs the First Hundred Years. Former Mayor Frank M. Bogart.
2 Wheeler's Desert Letter. 2003. City of Palm Springs Community& Economic Development Departmenl.
Page 1-1 City of Palm Springs
i
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
attractiveness as a retirement community continue to attract new residents to the 1
area. As increased demand continues to place pressure on the housing market, i
real estate prices escalate.
With continuous diversification in demographics and associated needs, increasing 1
competition for limited housing resources, the potential for conflicts among
different groups and fair housing concerns may arise. With increasing
competition, the range of housing choices available for different groups may also i
suffer. This report presents a demographic profile of the community, assesses the
extent of housing needs of specific groups, and evaluates the availability of a
range of housing choices for the residents. The report also contains an analysis of 1
the conditions in the private market and public sector that may impede a
person's fair access to housing.
1
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City of Palm Springs Page 1-2 i
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1 CITY Of PALM SPRINGS Analysis of Impodiments to fair Housing Choice
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Legend
1 — City Boundary
County Boundary
Figure 1-1
1 0 1I5 3 6 Miles Regional Location Map
City of Palm Springs
1
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
1 .2 Fair Housing Defined
Equal access to housing is fundamental to each person in meeting essential needs
and pursuing personal, educational, employment, or other goals. Recognizing
this fundamental right, the federal and State of California governments have both ,
established fair housing as a right protected by law.
1.2.1 Federal Laws '
The federal Fair Housing Act of 1968 and Fair Housing Amendments Act of 1988
(42 U.S. Code §§ 3601-3619, 3631) are federal fair housing laws that prohibit '
discrimination in all aspects of housing, such as the sale, rental, lease or
negotiation for real property. The Fair Housing Act prohibits discrimination based '
on race, religion, and national origin. In 1988, the Fair Housing Act was
amended to extend protection to familial status and people with disabilities
(mental or physical). In addition, the Amendment Act provides for "reasonable
accommodations", allowing structural modifications for persons with disabilities, if
requested, at their own expense, and sets housing code standards for new multi-
family dwellings to accommodate the physically disabled. '
1.2.2 California Laws
The Fair Employment and Housing Act (FEHA) and The Unruh Civil Rights Act '
(Part 2.8 of the California Government Code, Code Sections 12900-12996) are
California fair housing laws built upon the federal laws. The Fair Employment and
Housing Act prohibits discrimination and harassment in all aspects of housing
including sales and rentals, eviction terms and conditions, mortgage loans and
insurance, and land use and zoning. The Act also prohibits retaliation against any '
person who has filed a complaint with the Department of Fair Employment and
Housing, participated in a Department investigation, or opposed any activity
prohibited by the Act. In addition, these laws require housing providers to make '
reasonable accommodations to permit persons with disabilities to live and enjoy a
dwelling and allow persons with disabilities to make reasonable modifications of
the premises. The Unruh Civil Rights Act provides protection from discrimination
by all business establishments in California, including housing and
accommodations, because of age, ancestry, color, disability, national origin, race,
religion, sex, and sexual orientation. '
Fair housing is a condition in which individuals of similar income levels in the ,
same housing market have a like range of choice available to them regardless of
age, race, color, ancestry, national origin, religion, sex, disability, marital status,
familial status, sexual orientation, source of income, or any other, arbitrary '
factor.
Page 1-5 City of Palm Springs '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' A distinction must be made between affordability and fair housing issues.
Affordability in itself is not a fair housing issue. When a household has problems
accessing housing due to income limitations, no fair housing law is violated. Only
when affordability issues unduly impact individuals/households with
' characteristics that are protected by fair housing laws, would potential fair
housing concerns arise.
' The fair housing equation must be balanced on both sides. On the one hand,
equal access to housing and on the other hand, the availability of a range of
housing choice. Many factors in the public and private domains impede equal
' access to housing or fair housing choice. Impediments to fair housing choice are:
Any actions, omissions, or decisions taken because of age, race, color,
' ancestry, national origin, religion, sex, disability, marital status, familial status,
source of income, sexual orientation, or any other arbitrary factor which
restrict housing choices or the availability of housing choices; or
1 • Any actions, omissions, or decisions which have the effect of restricting
housing choices or the availability of housing choices on the basis of age, race,
' color, ancestry, national origin, religion, sex, disability, marital status, familial
status, source of income, sexual orientation or any other arbitrary factor.
' To affirmatively promote equal housing opportunity, a community must work to
remove or mitigate impediments to fair housing choice. The City of Palm Springs
is dedicated to providing fair housing opportunities to all residents, and ensuring
that all applicable laws are complied with throughout the City.
1 .3 Purpose of Report
' This Analysis of Impediments (AI) to Fair Housing Choice provides an overview of
laws, regulations, conditions or other possible obstacles that may affect an
' individual's or a household's access to housing in Palm Springs. The Al involves:
A review of Palm Springs' laws, regulations, and administrative policies,
procedures, and practices;
An assessment of how those laws affect the location, availability, and
taccessibility of housing; and
An assessment of conditions, both public and private, affecting fair housing
' choice.
The scope of analysis and the format used for this Al adhere to recommendations
' contained in the Fair Housing Planning Guide developed by the U.S. Department
of Housing and Urban Development (HUD).
tCity of Palm Springs Page 1-6
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
1 .4 Organization of Report '
The Al is divided into six chapters as described below: '
Chapter 1: Introduction defines "fair housing" and explains the purpose of '
the report.
Chapter 2: Community Profile presents the demographic, housing, and '
income characteristics in Palm Springs. Major employers and transportation
access to job centers are identified. The relationships among these variables
are discussed. '
Chapter 3: Mortgage Lending Practices analyses private activities that may
impede fair housing in Palm Springs. '
Chapter 4: Assessment of Fair Housing Practices evaluates the fair housing
services available to residents and identifies fair housing complaints and '
violations in Palm Springs.
Chapter 5: Public Policies evaluate public policies that may impede fair '
housing choice in Palm Springs.
Chapter 6: Findings and Actions provides conclusions and '
recommendations about fair housing in Palm Springs.
Appendix A: Community Outreach provides a summary of the community
outreach program conducted as part of the development of the Al. A signature
page that includes the signature of the City Manager of the City of Palm Springs
and a statement certifying that the Al represents Palm Springs's official '
conclusions regarding impediments to fair housing choice and the actions
necessary to address identified impediments is provided at the end of this report.
1 .5 Report Preparation and Data Sources t
This report, prepared through a collaborative effort between City staff and
Cotton/Bridges/Associates under contract to the City of Palm Springs, is funded by
Community Development Block Grant (CDBG) funds. ,
The following data sources were used to complete this Al. Sources of specific
information are identified in the text, tables, and figures. t
• 1990 and 2000 Census
• City of Palm Springs Land Use Element
• City of Palm Springs Zoning Ordinance
• City of Palm Springs 2000-2005 Housing Element
• City of Palm Springs 2000-2004 Consolidated Plan '
Page 1-7 City of Palm Springs '
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' • California Department of Finance (DOF) Population & Housing Estimates
Sunline Transit Agency schedule and transit route records
' • State of California Department of Social Services, Community Care Licensing
Division, 2004.
County of Riverside 2004 Homeless Survey
' • Department of Public Social Services, 2003 Homeless Census
• Riverside County Housing Authority, Section 8 data
• Home Mortgage Disclosure Act (HMDA) data regarding lending and
' foreclosure patterns in 2003
• Fair Housing Council of Riverside County fair housing records 2000-2004
• Dataquick housing sales activity data
' • Fair housing consultation workshop
Fair housing survey data
• FBI Hate Crime Incident Records, 1999-2002
' • Palm Springs Police Department Hate Crime Statistics, 2001-2004
' 1 .6 Public Participation
As part of the development of the Al, the Palm Springs Community and Economic
' Development Department conducted an extensive community outreach program
that included a community workshop held on October 20, 2004 for which the
City invited participation by residents, service providers, realtors, lenders,
apartment associations, apartment owners, managers and tenants. Press releases
regarding the workshop were sent to both the electronic and print media which
included the Desert Sun, the Press Enterprise, the Public Record (legal paper),
Desert Post Weekly, television stations (KMIR, KESQ, KPSI, I(VER Univision,
KUNA Telemundo, and KPSP Desert TV) and radio stations (Desert Radio Group
and KWXY).
' The workshop included a presentation about the Al, fair housing law, and
available fair housing resources. The workshops then included a discussion and
' comment period where attendees commented on housing and fair housing issues
and concerns.
In addition, the City developed a community survey designed to solicit
perceptions regarding fair housing issues. The City mailed the Workshop flyer and
survey to nearly 200 community members City-wide and emailed to over 80
residents, Subrecipients, RFP respondents, community organizations, the
' Homeless Task Force, housing/service providers, realtors, lenders, apartment
associations, apartment owners, managers and tenants, inviting their participation.
(Copies of the mailing list, emails, Workshop flyer/agenda, survey, news release
and City website screens are provided in Appendix B). The survey was available
in both English and Spanish as hard-copy paper and website electronic versions.
1 Fair housing needs and issues identified by City staff, elected officials, lenders,
apartment owners, realtors, and service providers, as well as input from residents,
have been incorporated throughout the Al as appropriate. A detailed discussion
' City of Palm Springs Page 1-8
CITY Of PALM SPRINGS Analysis of Impedimonts to fair Housing Choice
of the community outreach process, a summary of the workshop comments and '
summary of the fair housing survey is provided in Appendix A. '
The Draft Al was available for public review for a period of 30 days. Copies of
the document were made available for public review at the City of Palm Springs's '
Community and Economic Development Department, and at the Palm Springs
Public Library.
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Page 1-9 City of Palm Springs '
' PAIHI�x
Chapter 2
1 � C
Community Profile µ
' Various characteristics may affect the ability of households with similar income
levels, in the same housing market, to access a like range of housing choice. This
chapter of the Al analyzes the demographic profile, income distribution, housing
' stock characteristics, and access to public transportation in Palm Springs.
2.1 Demographic Profile
Examination of demographic characteristics provides better insight regarding the
need for and extent of equal access to housing in a community. Factors such as
population growth, age characteristics, and race/ethnicity all help determine a
community's housing needs and play a role in exploring potential impediments to
' fair housing choice.
Population Growth
' The community of Palm Springs lies on the western edge of the Coachella Valley in
central Riverside County approximately 107 miles east of Los Angeles.
Incorporated in 1938, the City of Palm Springs has a rich and diverse history. For
thousands of years, the Coachella Valley was home to the Agua Caliente Band of
Cahuilla Indians. However, development of the town did not begin until the late
' 1800s, when the Southern Pacific Railroad completed its line through the desert to
the Pacific Ocean, bringing with it various explorers, colonizers, and soldiers.'
' Palm Springs experienced much of its growth after World War II when it became a
popular destination for celebrities to visit and purchase homes. With over 350
"sunshine" days per year', Palm Springs also began to establish itself as a popular
Flistoiy of Palm Springs- Palm Springs the FirsL Hundred Years. Former Mayor Frank M. Bogart
' 2lbid.
Page 2-1 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
recreational spot and retirement community. Several golf courses were built during
this time, starting from one golf course in 1945 to over 85 golf courses by 2000.
Figure: 2-1: Historical Population Growth 1950-2000 ,
45000 '
40000
35000
30000 ,
25000
20000
15000
10000
5000
o '1950 1960 1970 1960 1990 2000
Source: Historical U.S. Census Data. '
From '1950 to 1970, the Palm Springs population almost tripled, from 7,660 '
residents in 1950 to 20,936 residents in 1970. During the 1980s, Palm Springs's
population growth remained strong, increasing by 24 percent (7,822 new
residents). More recently, population growth in Palm Springs has slowed, '
increasing by six percent between 1990 and 2000.
According to the 2000 Census, the permanent resident population in Palm Springs ,
population was 42,807. However, because Palm Springs is a popular vacation
destination and retirement community, many people purchase second homes in
Palm Springs. The City's seasonal peak population is estimated to swell to almost '
75,000 residents during the winter season.' In addition, approximately 1,000,000
hotel guests stay in Palm Springs on an annual basis.' The California Department of
Finance estimates the permanent population in Palm Springs in 2004 to be 44,260, '
representing an increase of three percent since 2000.
Table 2-1 compares the Palm Springs population with surrounding communities '
and Riverside County. Population growth in Palm Springs remains slower than that
experienced by the County and nearby communities. According to the Southern
California Association of Governments (SCAG), population in Palm Springs is '
expected to grow slowly to 46,175 persons by 2010.
3 Wheeler's Desert Letter. 2003. City of Palm Springs Community& Economic Development Department. t
4 Wheeler's Desert Letter. 2003. City of Palm Springs Community& Economic Development Department.
City of Palm Springs Page 2-2
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Change Change
It
t trt
' Cathedral City N/A 30,085 42,647 48,588 +41.7%
Desert Hot Springs 5,941 11,668 16,582 17,690 +96.4% +42.1%
Palm Desert 11,801 23,252 41,155 44,812 +97.1% +76.9%
' Palm Springs 32,359 40,181 42,807 44,260 +24.2% +6.5%
Rancho Mirage 6,281 9,778 13,249 15,518 +55.6% +35.5%
Riverside County 663,199 1,170,413 1,545,387 1,776,743 +76.5% +32.1%
' Source: U.S. Census, 1990 and 2000; *State Department of Finance, 2004.
2.1.2 Age Distribution
Housing demand is affected by the age characteristics of a community, among
other factors. Traditionally, young adults prefer apartments, condominiums, and
' smaller single-family units that are affordable. Middle-age adults typically prefer
larger homes as they begin to raise families. However, as children leave home,
seniors often prefer smaller, moderate-cost condominiums, and single-family units
with less extensive maintenance needs. In recent years, the escalating housing
prices in southern California have meant that many young families find it
increasingly difficult to find adequately sized homes at affordable prices.
' Over the past decade, several noticeable shifts have occurred in the age structure of
Palm Springs as reflected in the City's increased median age from 43.7 to 46.9
(Table 2-2). The proportion and actual number of college age (18-24) and young
adults (ages 25-44) in Palm Springs had shrunk slightly over the past decade. In
1990, college aged adults comprised almost eight percent of the population,
t compared to six percent in 2000. This age group typically consists of students,
recent graduates from college, or people who have just entered the job market.
Affordable housing and employment opportunities are needed to retain or attract
this age group to the City in order to foster and maintain a diverse and balanced
community. The proportion of young adults also declined over the same period.
The share of young adults decreased from 27 percent of the population in 1990 to
24 percent in 2000.
In contrast, the share of older adults aged 45 to 64 years increase substantially in
Palm Springs. In 1990, adults aged 45 to 64 comprised 22 percent of the
population; the proportion of this group grew to 26 percent in 2000. Typically
adults within this age bracket are more settled in their careers, are earning higher
' incomes and are seeking move-up housing opportunities. The growth in this age
bracket may lead to increased pressure on the high-end single-family housing
market within the community.
Citywide, the proportion of school aged children increased slightly. However, the
proportion of pre-school aged children evidenced a slight decrease from 1990 to
' 2000. The slight shrink in younger children reflect the decreased young families in
Page 2-3 City of Palm Springs
CITY Of PALM SPHINGS Analysis of Impediments to fair Housing Choice
the community which often is the first indicator of lacking affordable housing '
choices.
Reflecting the City's popularity as a retirement community, seniors continue to '
comprise a significant proportion of Palm Springs' population. Adults aged 65 and '
older composed approximately 26 percent of the City's population in both 1990
and 2000. The higher proportion of seniors within Palm Springs indicates that
senior housing and supportive services remain important needs in the community.Percent
'
Table 2-2: Age Characteristics and Trends
Percent [Persons PercenM Chlange
Preschool (0.4 years) , 2,104® 5.2% 2,028 4.7%
School Age (5-17 years) 4,490 11.2% 5,247 12.3% +16.8% ,
College Age (18-24 years) 3,154 7.8% 2,624 6.1% -16.8% ,
Young Adults (25-44 years) 10,980 27.3% 10,376 24.2% -5.5%
Older Adults (45-64 years) 9,094 22.6% 11,303 26.4% +24.3%
-Seniors (65+ years) 10,359 25.8% 11,229 26.2% +8.4%
Total Population 40,181 100% 42,807 100% '
Median Age 43.7 46.9
Source: U.S. Census, 1990 and 2000.
Note: Some cells do not total 100%due to rounding corrections. '
2.1.3 Race and Ethnicity ,
Palm Springs, like most communities throughout Southern California, has
experienced gradual changes in the racial and ethnic composition of its population. '
According to the Census, White residents continue to comprise the largest
racial/ethnic group in Palm Springs, followed by Hispanic residents. However, the
proportion of White residents has declined considerably since 1990 from 73 ,
percent to 65 percent. In contrast, the number and proportion of Hispanic
residents comprised 19 percent of the community in 1990. By 2000, their share
had increased to 24 percent. '
During the same time period, the proportion of Asian residents increased slightly,
but continued to comprise less than four percent of the population in both 1990 '
and 2000. The proportion of African American residents remained relatively
constant, comprising approximately four percent of the City's population in 1990
and 2000. '
1
City of Palm Springs Page 2-4 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Table 2-3: Race and Ethnicity
' 1990Persons Percent
Ott
Race, Not of Latino/Hispanic Origin
White 29,406 73.1% 28,474 66.5%
Asian 1,266 3.2% 1,606 3.8%
African American 1,729 4.3% 1,621 3.7%_
' Hispanic Origin 7,504 18.7% 10,155 23.7%
Other Race' 276 0.7%
Other Race x 349 0.8%
' Two or More races 602 1.4%
Total 40,181 100% 42,807 100%
- Source: U.S. Census, 1990 and 2000.
' The 1990 Census: includes"Other" as American Indian, Eskimo, and Aleut, and Other races and individuals indicating
two or more race
x Other includes American Indian and Alaskan Native, Native Hawaiian and Other Pacific Islander,
Note: Some cells do not total 1000/.due to rounding corrections.
' Approximately 21 percent of Palm Springs residents in 2000 were born outside the
United States.' Among the foreign-born residents, 56 percent emigrated from Latin
America, 19 percent were born in Europe, and 16 percent were born in Asia.
Foreign-born residents many have difficulty accessing housing due to language
barriers or an apartment owner's reluctance to rent housing to an immigrant. In
' addition, a fair housing concern could arise if a foreign-born person owns an
apartment building and advertises the vacancy in his/her native language only.
According to the 2000 Census, 2,116 Spanish-speaking persons over five years of
age indicate that they speak English "not-well" or "not at all." In addition, 904
Spanish speaking households were defined as being linguistically isolated in 2000.E
' Concentrations of Minority Populations
Figures 2-2, 2-3 and 2-4 display the concentration of Hispanic, African American,
' and Asian residents in Palm Springs in 2000, respectively. A "concentration" is
defined as any Census block group that contained a higher average of a particular
racial/ethnic group than the overall Countywide average. A "high concentration" is
defined as any Census block group that contains least twice the overall Countywide
average for a particular racial/ethnic group.
' Among Hispanic residents, several block groups in Palm Springs demonstrate higher
concentration than the County average of 36 percent (Figure 2-2). Hispanic
households are concentrated in several pockets, primarily located in northwestern
' Palm Springs near the 10 and 111 Freeways. Smaller pockets are also located near
the Palm Springs International Airport.
' e 2000 Census.
A linguistically isolated household is one which no member 14 years old and over 1)speaks only English or 2)speaks a
non-English language and speaks English 'very well'. In other words, all members 14 years and older have at least some
difficulty with English.
' Page 2-5 City of Palm Springs
CITY Of PALM SPHINGS Rflalps of Impediments to fair Housing Choice
African American residents account for four percent of Palm Springs residents, '
compared to the County average of six percent. Although African American
residents account for a small proportion of the citywide population, a number of
block groups in Palm Springs have high concentrations of African American
residents (Figure 2-3). These block groups are clustered in northwestern Palm
Springs near the 10 and 111 Freeways.
The proportion of Asian residents within Palm Springs (four percent) mirrors the ,
County average. For the most part, concentrations of Asian residents in the
community are located in different areas compared to Hispanic or African '
American residents. Concentrations of Asian residents are clustered in central Palm
Springs, west of the 111 Freeway and surrounding the Palm Springs International
Airport (Figure 2-4). '
1
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City of Palm Springs Page 2-6 '
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Major Road
Railroad
source:census 2000 UGER/One Data,
Census 2000 summary File 1(SF 1)100-Percent Data. [Igore 2'L
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0 1 2 3 4
City of Palm Springs
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City Boundary Census Block Group 2000 African American Concentration
' Freeway Blockgroups with African American population
Palm Springs International Airport greater than County average(6%-12%)
Major Road
Railroads:. African American High Concentration
Blockgroups with African American population greater
than twice County average(12%and above)
Source Census 2000 TIGER/Una Data,North Figure ure g'd
Census 2000 Summary File 1(5F 1)100-Percent Data, � C d
Mile, Concentration of African American Population
0 1 2 3 4
City of Palm Springs
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City Boundary Census Block Group 2000 0 Asian Concentration
' Freeway Blockgroups with Asian population
Palm Springs International Airport greater than County average(3.8%-7.6%)
Major Road
�-- Railroad Asian High Concentration
Blockgroups with Asian population greater
than twice County average(7.6%and above) ,1 Source'Census 2000 TIGER/hne Data,
North [ L figure q 4
' Census 2000 Summary File 1(SF 1)100-Percent Data
° t z a a Miles Nr centration of Asian Population
City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Chico
2.2 Household Characteristics
Various household characteristics may affect access to housing, such as household
type and size, income level, and the presence of persons with special needs.
Recognizing Discrimination
' Housing discrimination is rarely blatant. Often, many people may not be aware of
their fair housing rights, and may not even know that their rights are being violated.
Below are some examples indicative of discrimination, which different types of
households and individuals might encounter when looking for housing.
• "We don't have any services available for people in wheelchairs."
' • "I rented the apartment right after you called."
• "I would love to have you as a tenant but you have a seeing-eye dog and we
have a strict'No Pets' policy."
' "There isn't anybody else here who speaks Spanish so you might feel
uncomfortable living here."
• "There are mostly professionals here. We don't have a play area."
' • "We don't make loans in the area where the house you are buying is located."
2.2.1 Household Composition and Size
According to the 2000 Census, 20,516
What is a household? households resided in Palm Springs , an increase
' of 1,894 new households since 1990. Between
A household is defined as all persons '1990 and 2000, the household composition in
occupying a housing unit. Families are Palm Springs experienced some noticeable
' a subset of households, and include all
persons living together who are related changes within its family household subsets. As
by blood, marriage, or adoption. shown in Table 2-4, the proportion of families in
' Single households include persons Palm Springs decreased from 54 percent of
living alone in housing units, but do households in 1990 to about 46 percent in
not include persons in group quarters 2000. This translates into 613 fewer family-
such as convalescent homes or households in 2000 than 1990.
dormitories. Other households are
unrelated people living together, such Between 1990 and 2000, the proportion of
as roommates married couple families with children decreased
' from 12 percent to 10 percent of all households.
The share of married couples with no children evidenced a greater decrease,
declining from almost 30 percent of all households in 1990 to 24 percent in 2000.
The proportion of "other families" which includes single-parent households,
remained relatively static, comprising approximately 12 percent of all households in
both 1990 and 2000.
In contrast, the proportion of non-family households in Palm Springs, which include
single persons and unrelated persons living together, increased from 46 percent of
Page 2-13 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
all households in 1990 to 54 percent in 2000, Single households increased from ,
36 percent of all households to approximately 41 percent in 2000. "Other" '
household increased from nine percent in 1990 to 12 percent in 2000. Over half
of"other" households are comprised of unmarried partner households.
The 2000 Census included an expanded definition and category for unmarried '
partners, which can include both family and non-family households. Unmarried
households include cohabitating couples of the same or opposite sex, with or '
without a child. According to the 2000 Census approximately eight percent of all
Palm Springs households are comprised of unmarried partner households. These
households account for two percent of family households and six percent of non- '
family households.
According to the 2000 Census, the average household size in Palm Springs was '
2.05, a decrease from 2.13 in 1990. This decrease in average household size is
most likely a reflection of the decrease in the number and proportion of family
households in the community. '
" 1 111 ,
r r
Total Households 1 18,622 100% 20,516 100% +10.2%
Family Households 10,077 54.1% 9,464 46.1% -6.1% ,
Married-With Children 2,303 12.4% 2,107 10.3% -8.5%
Married-No Children 5,554 29.8% 4,860 23.7% -12.5%
_ Other Families 2,230 11.9% 2,497 12 2% +11 8%
Unmarried Partner* -- 388 1 8%0 -- '
Non-Family Households 8,545 45.9% 11,052 53.9% +29.3%
Singles 6,811 36.5% 8,537 41.6% +25.3% '
Other 1,734 9.3% 2,515 12.2% +45.1%
Unmarried Partner* -- 1 -- _ 1,356 6,6% n/a
Average Household Size 2.13 2.05 '
Source: U S. Census, 1990 and 2000.
*Note: Unmarried partners include family and non-family households of the same sex and the opposite sex.
Due to changes within the 2000 Census, comparison of the number"unmarried partners"from 1990 to 2000 is ,
not possible. The 2000 Census advises that do to the inclusion of a number of new variables for"unmarried
partners" including the inclusion of same sex spouses, direct comparison of the 1990 and 2000 estimates is not
statistically valid.
City of Palm Springs Page 2-14 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.2.2 Special Needs Households
The following discussion highlights particular characteristics that may affect an
' individual household's access to housing in the community.
Large Households
Large households are defined as those with five or more members. Many large
households are families with two or more children, and/or with extended family
' members such as grandparents. Large households are a special needs group
because the availability of adequately sized, affordable housing units is often
limited. In order to save for basic necessities such as food, clothing and medical
' care, low and moderate income large households typically reside in smaller units,
resulting in overcrowding. Furthermore, families with children, especially those
who are renters, may face discrimination or differential treatment in the housing
' market. For example, some landlords may charge such families a higher rent or
security deposit than they normally would, limit the number of children in a
complex or confine them to a specific location, or choose not to rent to families
' with children altogether.
The 2000 Census reported 1,332 households in Palm Springs with five or more
' members, representing approximately six percent of all households. Of these large
households, 657 (49 percent) were renters and 688 (51 percent) were owners.
' Over the past decade, the proportion of large households in Palm Springs has
remained constant. In 1990, six percent of all households had five or more
members. However, in 1990 there were a larger proportion of large renter
' households than homeowners. Among all large households in 1990, 53 percent
were renters, while 47 percent owned their own home. As mentioned in greater
detail in the Income Profile, a significant proportion of large renter households
' earned low and moderate incomes compared to other households in the City.
Approximately 69 percent of large family renter households earned less than 80
percent of the County Median Family Income (MFI) compared to 43 percent of all
other households in the City!
1
' 2003 CHAS Database.
Page 2-15 City of Palm Springs
CITY OF PALM SPRINGS Analpsis of Impediments to fair Housing Choice
Single-Parent Households ,
Single-parent households often require special consideration and assistance as a
result of their greater need for affordable housing and ,accessible day care, health
care, and other supportive services. Due to their relatively lower per-capita income '
and higher living expenses such as day-care, single-parent households have limited
opportunities for finding affordable, decent, and safe housing. Single-parent
households, especially single mothers, may also be discriminated against in the '
rental housing market. At times, landlords may be concerned about the ability of
such households to make regular rent payments and therefore, may require more
stringent credit checks for women. '
In 2000, an estimated 903 female-headed, single-parent households with children
under age 18 lived in the City, representing approximately four percent of all '
households in the City. The proportion of female single-parent households with
children has, remained relatively static since 1990. In 1990, Palm Springs was
home to approximately 833 female-headed single-parent households comprising
four percent of all households.
In 2000, approximately 332 male-headed, single-parent households with children ,
also resided within Palm Springs, comprising approximately one percent of all
households in the community. Since 1990, the proportion of male-headed, single-
parent households has also remained stable. In 1990; 313, male-headed, single- ,
parent households resided in Palm Springs, comprising one percent of all
households.
According to the 2000 Census, 1,068 families were estimated as living below the '
poverty level, representing 11 percent of all families in the community. These
families included 385 female-headed single-parent householders with children (46 '
percent), and 83 male-headed, single-parent households with children (10
percent).
Since 1990, the proportion of families with children living in poverty has increased. ,
In 1990, there were there were 607 families with children living below poverty,
comprising six percent of family households. Of these, 49 percent were female-
headed households with children, and nine percent were male-headed households
with children.
Disabled Persons '
Persons with disabilities may be discriminated against in the housing market '
because of their need for wheelchairs, home modifications to improve accessibility,
or other forms of assistance. More common examples of discrimination against
persons with physical and/or other limitations include: refusing to rent to a person '
in a wheelchair for fear a unit might be damaged, and prohibiting service/guide
dogs of disabled applicants because of a no-pet policy.
City of Palm Springs Page 2-16 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
According to the 2000 Census, 10,836 persons in Palm Springs had a disability,
' comprising almost 27 percent of the population aged five years and older.
Disabilities are defined as mental, physical or health conditions that last over six
months. Table 2-5 displays disabilities tallied by age. The proportion of individuals
with disabilities increases with age. Approximately five percent of children aged 5
to 15 had a disability, compared to 26 percent of adults aged 16 to 64 and 37
percent of seniors aged 65 years and older.
' In 1990, there were 2,607 persons ages 16 and older in Palm Springs with a
mobility or self-care limitation, comprising approximately six percent of the
' population. However, it is difficult to provide a strait comparison of the total
disabled population between 1990 and 2000. The 2000 Census used a broader set
of criteria to define disability (e.g. age range, types of disabilities recorded) than the
1990 Census. Therefore, the disabled population includes a larger pool of
individuals in 2000 than in 1990.
Female Total
' 5-15 114 93 201
16 to 64 3,863 2,610 6,473
65 + 1,834 2,322 4,156
' Total 5,811 5,025 10,836
Source: 2000 Census.
' Persons Living with HIV/AIDS
Persons with HIV/AIDS sometimes face biases and misunderstanding about their
' illness that affect their access to housing. Such persons may also be targets for hate
crimes. The first AIDS case in Riverside County was reported in 1983. Since then,
there have been 4,999 AIDS cases reported in Riverside County as of June 2004.
' Of these cases, approximately 2,702 individuals are currently alive and living with
AIDS.' Approximately 1,267 individuals that are HIV positive are also living in
Riverside County. Of the 61 California jurisdictions that report AIDS statistics,
' Riverside ranked sixth in the reporting of AIDS and HIV cases. As of September
2004, there are 1,604 individuals currently living with HIV or AIDS in Palm Springs,
representing 40 percent of all HIV/AIDS cases within Riverside County.
' According to the Riverside County Community Health Agency, the greatest number
of new AIDS cases in Riverside County was reported during years 1993 to 1996.
Between 440 and 700 new cases were recorded annually during that period. Since
1997, the number of new AIDS cases has been steadily declining with
approximately 282 AIDS cases reported in 2002. According to the County
' Department of Public Health, the gradual decline in new AIDS cases is indicative of
' e Phill Coon, Research Analyst Health Statistics Branch, Department of Public Health Community Health
Agency, County of Riverside. September 2004.
' Page 2-17 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choico
an overall trend throughout State. Over the past several years, better prevention
and outreach coupled with new drugs and better treatment has reduced the spread '
of HIV and prevented many of those currently living with the FIN virus of
developing AIDS.
Among the Palm Springs residents diagnosed with AIDS, 89 percent are White, six '
percent are Hispanic, three percent are African American, one percent are Asian,
and one percent are America Indian. Approximately three-quarters of those ,
individuals are between the ages 30 to 49 years. The ethnic, racial and age
composition of the AIDS population in Palm Springs generally mirrors the
countywide population. To help serve those with HIV or AIDS, several resources '
are available within Palm Springs, including the Desert AIDS Project and the AIDS
Assistance Program.
Desert AIDS Project provides medical care and comprehensive support services to ,
people living with HIV/AIDS in the desert community. Free, anonymous HIV
testing is available, as well as counseling, home health services, legal assistance, and '
assistance with housing, medications, food, re-employment, and more. Desert
AIDS Project also provides prevention and education outreach activities.
The AIDS Assistance Program provides food vouchers for approximately 450 low ,
income clients per month. The AIDS Assistance Program also provides benefits
counseling to those diagnosed with HIV or AIDS. The counseling program focuses '
on health and stress management, benefits assessments, finances, skills assessments,
and returning to the work force assistance.
Homeless Persons '
Homeless people who have gone through a transitional housing or other assistance
program often face a number of challenges when locating permanent housing.
Specifically, not only is the availability of affordable housing an issue, but some
landlords may be unwilling to rent to someone who was formerly homeless. ,
In 2004, the Institute for Urban Research and Development conducted an
extensive number of surveys and interviews of the homeless population in Riverside ,
County. Information from these interviews was summarized in the County of
Riverside 2004 Homeless Survey Project. The purpose of the project was to identify
specific demographic information as well as assess the service needs of the '
homeless population within Riverside.
The Survey found that on any given night in the County of Riverside there are
2,500 to 8,100 homeless individuals. Of the 1,091 homeless individuals surveyed,
the following characteristics were identified: 9
66 percent were men, 34 percent were female
9 County of Riverside 2004 Homeless Survey. '
City of Palm Springs Page 2-18 '
i
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
1 M 54 percent were White, 22 percent were Hispanic, 17 percent were African
American, 3 percent were American Indian and 1 percent were Asian
1 0 86 percent were between the ages of 25 and 59
41 percent had their children under 18 living with them totaling 342 children
67 percent of all females individuals surveyed stated that they had experienced
' domestic violence
62 percent reported symptoms of a mental illness
1 9 52 percent indicated that they had asubstance abuse problem
In May 2003, a Homeless Census was conducted by the Department of Public
1 Social Services. The Homeless Census provided an enumeration of the homeless
individuals within Riverside County and gathered specific demographic information
regarding homeless individuals. According the Homeless Census, there were 2,562
1 homeless individuals within Riverside County counted during the survey period. Of
these, approximately 79 persons were located within Palm Springs.10
1 A number of homeless shelters and services are located within Palm Springs and
surrounding jurisdictions. These services are summarized in Table 2-6.
1
i
� i
1
i
1
� 1
1
1
1 10 Department of Public Social Services,2003 Homeless Census
1 Page 2-19 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Chico
Shelters
ABC Recovery Center Indio 68 emergency beds and 40 transitional beds
(32 beds under development)
Coachella Valley Rescue Mission Indio 34 emergency beds
Indio Cold Weather Shelter Indio 100 emergency beds '
Nightingale Manor Palm Springs 16 residential apartment complex used as
area transitional housing for families
Richard Allen Community Services Blythe 28 Emergency Beds
60 emergency beds and 102 transitional beds '
Shelter From the Storm Palm Desert for women and children that are victims of
domestic violence
30 emergency beds and 120 transitional beds ,
Martha's Village and Kitchen Indio as well as hot meals and medical care for
_ children
Episcopal Community Services Palm Springs 34 transitional beds '
area
Operation Safe House Thousand Palms 17 emergency facility for homeless youth and
wards of the State ,
Riverside Department of Mental Scattered sites-- Services and permanent housing for those
Health Riverside County suffering from mental illness or substance abuse
Housing Authority of Riverside Scattered Section 8 Housing Choice Voucher program**
Co '
unty
Desert AIDS Project* Palm Springs 25 permanent beds for homeless individuals
that have HIV/AIDS
Services
Blythe Emergency Food Pantry Blythe Emergency food assistance.
Catholic Charities Palm Springs Provides emergency rental assistance, food,
and shelter.
Community Access Center Indio Housing referrals, independent life skills
training and counseling.
The Well in the Desert Palm Springs Provides grocery distribution and hot meals.
St. Elizabeth Church Desert Hot Springs Emergency food assistance.
Source: Palm Springs Consolidated Plan 2000-2005,Riverside County Continuum of Care 2003 and 2004.
Additional permanent supportive housing is currently under development in Palm Springs. '
*'See further discussion in Section 2.5.1.
1
City of Palm Springs Page 2-20 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.3 Income Profile
2.3.1 Household Income
' Household income is the most important factor affecting housing opportunity,
determining a household's ability to balance housing costs with basic necessities of
life. While economic factors that affect housing choices are not fair housing issues
per se, the relationships among household income, household type, race/ethnicity,
and other factors often create biased generalizations/stereotypes that raise fair
housing concerns. For example, the refusal to rent to a family of a particular race
because of a belief that people of that race tend to be lower income and often do
not pay rent on time, is a fair housing concern.
' According to the 2000 Census, Palm Springs residents earned a median household
income of $35,973, approximately 19 percent below the Riverside County median
' of $42,887. The median income in Palm Springs was higher than the median
income of Desert Hot Springs ($35,973) but lower than the other nearby
communities of Cathedral City ($38,887), Palm Desert ($48,316), and Rancho
' Mirage ($59,826) (Figure 2-5).
Figure 2-5: Median Household Income 2000
70,000 —
60,000 — —County
50,000 —
' 40,000 — '.
30,000 —
20,000 —
' 10,000 —
0
t Cathedral Desert Hot Palm Springs Palm Desert Rancho
City Springs Mirage
Source: 2000 Census.
' In analyzing the income distribution, households are grouped into different income
groups in relation to the County Median Family Income (MFI) and adjusted for
household size. The four categories are:
• Extremely Low Income (0-30 percent of County MFI)
• Low Income (31-50 percent of County MFI)
• Moderate Income (51-80 percent of County MFI)
' Middle/Upper Income (>81 percent of County MFI)
' Page 2-21 City of Palm Springs
CITY Of PALM SPHINGS Analysis of Impediments to fair Housing Choice '
Combined, the Extremely Low and Low Income groups are referred to as Lower
Income. Federal programs such as Community Development Block Grants (CDBG) '
provide assistance to only those households in the Lower and Moderate Income
categories. Often, household income varies by household type.
2.3.2 Income by Race/Ethnicity ,
For planning purposes, special income data based on the 2000 Census in the '
Comprehensive Housing Affordability Strategy (CHAS) is used." According to
CHAS, 12 percent of the City's total households in 2000 were Extremely Low
Income (0-30 percent MFI), 13 percent were Low Income (31-50 percent MFI), '
and 18 percent earned Moderate Income levels (51-80. percent MFI).
Approximately 57 percent of the households had incomes above 80 percent of the
median in 2000 (Table 2-7). '
Income levels in Palm Springs varied by race and ethnicity. Specifically, Hispanic
and African American households had a noticeably lower proportion of households '
earning above 80 percent of the MFI (36 and 39 percent respectively) compared to
the citywide average. Correspondingly, a higher proportion of Hispanic households
(64 percent) and African American households (61 percent) were within the Lower '
and Moderate Income groups compared to the citywide average.
Among all households in the community, White and Asian households had the
highest proportion of Middle/Upper Income households. Correspondingly, a
smaller proportion of White (38 percent) and Asian households (39 percent) earned
Extremely Low, Low and Moderate Income compared to the citywide average (43
percent). "Other" households mostly mirrored the citywide averages although a
slightly lower proportion of other households earned Middle and Upper Income.
� r -
Households
r r 1
White 78.7% 10.1% 10.9% 17.5% 60.8%
Hispanic 13.5% 20.6% 20.5% 22.8% 36.1%
African-American 3.3% 24.6% 19.3% 17.1% 39.1%
Asian 2.4% 3.5% 15.65/ 16.8% 63.9% '
Other 12 2.1% 14.8% 18.3% 15.4% 51.4%
Total 100% 1.2.3% 12.9% 18.2% 56.6%
Source: Comprehensive Housing Affordability Strategy(CHAS),2004.
For planning purposed, HUD uses the Census data to develop special tabulations by HUD income group and special
needs category. This dataset is collectively known as the Comprehensive Housing Affordability Strategy(CHAS). '
12 Other includes Native American, Pacific Islander and individuals that identify themselves as two or more races.
City of Palm Springs Page 2-22 '
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.3.3 Income by Households Type and Tenure
' Citywide, 43 percent of households in Palm According to the US Department of
Springs were Lower and Moderate Income Housing and Urban Development (HUD)
' (earned less than 80 percent of the MFI). household types within CHAS are divided
However, certain groups had a higher into the following categories:
proportion of Lower and Moderate income Elderly Households. The head of the
' households. Specifically a smaller household is age 62 and over.
proportion of large households and elderly Small Family Households Families with
households were Middle and Upper Income a total household size of 2 to 4 persons.
' compared to other household types. Large Family Households: Families
which have a total size of at least 5
Among all Low Income households, large persons.
' families had the highest proportion of Low All Other Households: Non-elderly
Income households at 17 percent compared persons living alone and all non-family
to the citywide average of 13 percent. households.
'Other' households had the highest
proportion of Extremely Low Income households at 14 percent.
PNEW.
W&M. • r • .1171 MIT,I - 9 n. fl rM. . • IT-11 . . -
Percent Low Income oderate
Households Total Income Low
ncome
. r t t
0 r
1 Elderly 41.3% 11.8% 13.5% 19.9% 54.70/.
Small Families 24.1% 11.1% 11.6% 16.8% 60.5%
Large Families 6.5% 11.9% 17.6% 17.8% 52.6%
' Others 28.1% 14.4% 11.7% 16.8% 57.1%
Total 100% 12.3% 12.9% 18.2% 56.6%
Source: Comprehensive Housing Affordability Strategy(CHAS),2004.
' Table 2-9, compares household type by tenure. As displayed, a significantly higher
proportion of owner households (68 percent) earned Middle and Upper Income
' levels (more than 80 percent of the MFI) than renter households (39 percent).
Correspondingly, almost 39 percent of all renter households earned Extremely Low
and Low Income levels compared to 16 percent of home owners. In particular,
' elderly renter-households and large family renter households had the highest
proportion of Lower and Moderate Income households.
' Among all elderly renter households, approximately 71 percent were Lower and
Moderate Income, inclusive of 26 percent of elderly renters fell within the
Extremely Low Income category. In contrast, 37 percent of elderly owner-
households were Lower and Moderate Income, with seven percent being Extremely
Low Income.
' Page 2-23 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
Large family renter households are another special need group in Palm Springs. '
Approximately 69 percent of large renter households earned Lower and Moderate '
Income levels. In comparison, 27 percent of large family homeowner households
earned Lower and Moderate Income levels.
Renter Occupied '
Elderly(62 and over) 26.4% 20.3% 24.4% 28.9%
Small Families 17.3% 17.1% 24.0% 41.6% '
Large Families 20.8% 26.3% 22.4% 30.4%
Others 19.3% 15.4% 20.9% 44.3%
Total Renters 20.6% 17.9% 22.7% 38.8% '
Owner Occupied
Elderly (62 and over) 7.2% 11.5% 18.6% 62.7%
Small Families 5.9% 7.0% 10.9% 76.2% '
Large Families 3.9% 9.8% 13.7% 72.6%
Others 8.3% 9.4% 15.2% 68.3%
Total Owners 6.9% 9.5% 15.3% 68.3%
Source:Comprehensive Housing Affordability Strategy(CHAS),2004.
According to the 2000 Census, 1,068 families were estimated as living below the '
poverty level, representing 11 percent of all families in the community. Of these
families, 837 were families with children living in poverty. These families included
369 married couple families with children (44 percent), 385 female-headed single- '
parent householders with children (46 percent), and 83 male-headed, single-parent
households with children (10 percent).
Several areas of the City contain a concentration of low and moderate income '
population (Figure 2-6). A low and moderate income concentration is defined as a
census block group with 51 percent or more low and moderate income population. '
These block groups are primarily located within northwestern Palm Springs and
within central Palm Springs west of the Palm Springs International Airport. A small
low/moderate area is also located the central/southern portion of the community '
south of the 111 Freeway.
1
City of Palm Springs Page 2-24 ,
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City Boundary Census Tract 2000 [ � Low Moderate Income Block Groups
' Freeway Census Block Group 2000 (Low to Moderate Income concentration defined
as Census Block Group with more than 51
Major Road Census Tract Number Low and Moderate Income Population)
�-�-� Railroad
' Palm Springs International Airport
Figure 2-6
' Source:HUD and Census 2000 TIGER/b..Data. Law and Moderate
rvonn
mile, Income Areas
0 1 Z 3 a
City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.4 Housing Profile
' What is a housing unit?
A discussion of fair housing choice must be
preceded by an assessment of the housing A housing unit is defined as a
' market in question. This section provides an house, an apartment, mobile
overview of the characteristics of the local and home, or a single room,
regional housing markets. occupied as a separate living
' quarter or, if vacant, intended
for occupancy as a separate
2.4.1 Housing Growth living quarter. Separate living
quarters are those in which the
' As reflected in Table 2-10, the County of occupants live separately from
Riverside has experienced a high rate of home any other persons in the building
construction since 1990. This is reflective of and which have direct access
' growing employment opportunities, greater from the outside of the building
affordable housing opportunities, and large or through a common hall.
areas of developable land remaining in Riverside
' County compared to Los Angeles, San Diego and Orange Counties. Many
communities in the Coachella Valley, including Cathedral City, Desert Hot Springs,
Palm Desert and Rancho Mirage, had high levels of growth that exceeded the
' countywide rate. However, compared to surrounding communities and the
County, Palm Springs had a considerably slower rate of home production,
increasing by only 462 units (1.5 percent) from 1990 to 2000.
' However more recently, housing production has increased dramatically in Palm
Springs. According to California Construction, a publication about the California
construction market, as of October 2004 there were about 7,000 residential units
under construction or in the pipeline in Palm Springs. Spurring this recent
development activity are new residents from higher priced areas that are seeking
' more affordable housing opportunities within Palm Springs. Many of these
residents are seeking primary homes to live in full-time rather than purchasing
secondary homes.13 According to Department of Finance estimates, Palm Springs'
' housing stock increased to 31,339 units in January 2004, an increase of 1.2 percent
from 2000.
, . 1 ■ • . 1
• '
Jurisdiction
91 I11 11' " 1 r 111 r
111 11'
Cathedral City 15,229 17,893 20,023 +17.57. +11.9%
Desert Hot Springs 5,494 7,034 7,380 +28.1% +4.9%
' Palm Desert 18,248 28,021 30,001 +53.5% +7.1%
Palm Springs 30,517 30,979 31,339 +1.5% +1.2%
Rancho Mirage 9,360 11,816 13,331 +26.2% +12.8%
Riverside County 483,847 584,674 659,795 I +20.8% +12.8%
Source; Census, 1990 and 2000 *State DeparLment of Finance 2004.
"A Great Time to Be Swinging a Hammer"Califoinia Construction.Greg Aragon, October 2004.
' Page 2-27 City of Palm Springs
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.4.2 Housing Type '
Table 2-11 provides a summary of housing types within Palm Springs in 1990 and '
2000. As reflected in the limited growth of new housing, only slight changes have
occurred with the composition of the housing stock in Palm Springs since 1990. ,
Palm Springs continues to have a diverse mix of housing types, with slightly more
than half of homes comprised of single-family units and approximately 40 percent
of units consisting of multi-family homes. Since 1990, the proportion of single- '
family homes has remained relatively static. However, the proportion of multi-
family homes in the community increased slightly from 38 percent in '1990 to
almost 40 percent in 2000. The majority of this changes occurred in the proportion '
of smaller multi-family homes of two to four units.
During the same period, the number and proportion of mobile homes decreased in ,
Patin Springs. In 1990, mobile homes accounted for eight percent of all units,
dropping to seven percent in 2000. The proportion and number of 'other' units
such as trailer and campers also decreased during this period. Some of the change '
in mobile home and 'other' units may be attributed to the changed definitions
under the two censuses. For example, in 1990, many unconventional units such as
campers, trailers, and houseboats were counted as "other" housing units. In 2000, '
many of these units were either dropped as a housing unit or reclassified as mobile
homes or multi-family units (in five units+ structures).
. . - 1 ., , . 1 � � 1 , � . . 1 s l • 111 ,
" 1 111
— r . Number
Single Family 1 16,030 52.5% 16,354 52.8%
Detached 9,906 32.5% 10,163 32.8%
Attached 6,124 20.1% 6,191 20.0% '
Multi-Family 11,487 37.6% 12,379 39.9%
_ 2-4 Units 2,010 6.6% 2,502 8.1%
5 + Units 9,477 31.1% 9,877 31.9%
Mobile Homes* 2,465 8.1% 2,172 7.0%
Other* 658 2.1% 74 0.2%
Total Units 30,517 100% 30,979 100%
Source:U.S.Census 1990 and 2000.
Note:Some cells do not total 1009/.due to rounding corrections.
* Other housing units were classified in SIT 3-(Census Sample Data)therefore total may add up to more than
30,517
1
City of Palm Springs Page 2-28
1
CITY OF PALM SPRINGS Analysis of Impadimonts to Fair Housing Choico
' 2.4.3 Tenure and Vacancy
' Housing Tenure
' The tenure distribution (owner versus renter) of a community's housing stock
influences several aspects of the local housing market. Residential mobility is
influenced by tenure, with ownership housing evidencing a much lower turnover
' rate than rental housing. Housing cost burden" is generally more prevalent among
renters than among owners. Tenure preferences are primarily related to household
income, composition, and age of the householder.
' As indicated in Table 2-12, approximately 60 percent of all households in Palm
Springs in 2000 were home owners and approximately 40 percent were renter-
households. Reflecting the minor changes in the composition of the housing stock,
the tenure composition within Palm Springs has remained relatively constant. The
home ownership rate increased slightly from 59 percent in 1990 to almost 61
' percent in 2000.
Number
Tenure of Units
r •
Owner-Occupied 10,963 58.90/. 12,480 60,8%
Renter-Occupied 7,659 41.1% 8,036 39,20/
Total Occupied Units 18,622 100% 20,516 100%
Source: U.S.Census 1990 and 2000.
1 Vacancy Rate
' The vacancy rate measures the overall housing availability in a community and is
often a good indicator of how for-sale and rental housing units are meeting the
current demand for housing. Vacancy rates of five percent for rental housing and
' two percent for ownership housing are generally considered healthy and suggest a
balance between the demand and supply of housing. A higher vacancy rate may
indicate an excess supply of units, while a lower vacancy rate may indicate that
' households have difficulty finding housing. Low vacancy rates tend to drive up the
prices, leading to other problems such as housing cost burden and/or overcrowding.
A tight housing market also offers incentives for discriminatory practices.
Due to Palm Springs' unique status as a retirement and tourism-oriented
community, the number of vacant units is exceptionally high. In 2000, vacant units
' comprised approximately 33 percent of all housing units, with the majority of the
vacant units (70 percent) being used as seasonal, recreational, or occasional use
and not available to those who need it year round (Table 2-13).
' 14 State and federal standards specify that households spending more than 30 percent of gross annual income on housing
experience a housing cost burden. Housing cost burdens occur when housing costs increase Faster than household
income.
Page 2-29 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
The proportion of total vacant units has noticeably decreased since 1990, In 1990, '
almost 40 percent of all homes were vacant. This decrease is largely attributed to '
the reduction of approximately 1,090 homes between 1990 and 2000 used for
seasonal/occasional use. This may indicate that as regional demand for homes
rises, the housing stock in Palm Springs is increasingly used for primary residences, '
In 2000, excluding seasonal, recreational, or occasional housing, the homeowner
vacancy rate was 3.2 percent, while the renter vacancy rate was 11 percent. The '
high rental vacancy rate may reflect the use of a large number of rental housing
units as short-term rentals. Many lower income renter-households are not likely to
be able to afford these units, as evidenced by the overcrowding experienced by ,
renters (discussed later).
Year •
• na
Use TotalVacant '
1990 8,331 1,014 752 1,798 11,895 38.9%
2000 7,240 998 413 1,656 10,307 33.4% '
Source: 1990,2000 Census
2.4.4 Overcrowding
Overcrowding occurs when housing costs are so high (relative to income) that '
families have to reside in small units or double-up to devote income to other basic
needs such as food and medical care. Overcrowding also tends to result in
increased traffic and a shortage of on-site parking in a ,
What is overcrowding? particular area. Deterioration of a housing unit may also
accelerate due to overcrowding. ,Maintaining a reasonable
The Census includes an indicator level of occupancy and alleviating overcrowding is an '
of overcrowded households as important contributor to quality of life.
households with more than one
person per room, excluding '
bathrooms, kitchens, hallways and As indicated in Table 2-14, approximately seven percent of
porches. Severe overcrowding is all households were overcrowded in Palm Springs in 2000,
measured by 15 or more persons the same proportion as in 1990. Approximately four
perroorn. percent of all households in Palm Springs were severely '
overcrowded in 1990 and in 2000.
Overcrowding in the City varies considerably by tenure. A higher proportion of '
renter-households (13 percent) experienced overcrowded living conditions
compared to owner-households (three percent). Renter-households also
experienced the highest degree of severely overcrowded living conditions. '
Approximately nine percent of renter-households were severely crowded compared
to only one percent of owner-households.
City of Palm Springs Page 2-30 '
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Table 2-14: Persons per Room in Occupied Housing Units
Tenure/Person' r I Persons Percent Persons Percent
r � r
' Owner-Occupied
Total Overcrowded (>1.0 person/room) 317 2.8% 433 3.4%
Severely Overcrowded (>1.5 persons/room) 149 1.3% 158 1.2%
' Renter-Occupied
Total Overcrowded (>1.0 person/room) 1,055 13.7% 1,105 13.6%
Severely Overcrowded (>1.5 persons/room) 657 8.50/0 737 9.1%
All Households-Total Overcrowded (>1.0 1,372 7.4% 1,538 7.4%
person/room)
All Households- (>1.5 persons/room) 806 4.3% 895 4.4%
Source; U.S. Census, 1990 and 2000.
2.4.5 Housing Cost and Affordability
' Many housing problems such as housing overpayment or overcrowded housing are
directly related to the cost of housing in a community. If housing costs are high
relative to household income, a correspondingly high prevalence of housing
problems occurs. This section evaluates the affordability of the housing stock in
Palm Springs to low and moderate- income households. However, an emphasis
' must be made that housing affordability alone is not necessarily a fair housing issue.
Only when housing affordability issues interact with other factors covered under the
fair housing laws, such as household type, composition, and race/ethnicity do fair
' housing concerns may arise.
Owner-Occupied Housing
Rising regional housing prices, a strong local economy and demand for second
homes have placed pressures on the for-sale housing market in Palm Springs.
Figure 2-7 compares the median sales price of single-family homes and
condominiums in Palm Springs, surrounding communities and Riverside County in
September 2003 and September 2004 (California Association of Realtors).
' In September 2004, the median home price in Palm Springs was $260,000 a 30-
percent increase from the median price of $200,000 in September 2003. Home
' prices in Palm Springs were in the middle range of nearby communities. Housing
prices in Palm Springs were higher than in Cathedral City ($250,000) and Desert
Hot Springs ($165,000), but were lower than in Palm Desert ($337,500), Rancho
tMirage ($468,000) and Riverside County ($313,000).
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' Page 2-31 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodiments to fair Housing Chpico
Figure 2-7: Median Home Prices —September 2003- 2004 '
$500,000 ■2004 ❑2003 '
$450,000
$400,000
$350,000-
'
$300,000
$250,000 - 3
$200,000
$150,000 3
$100,000 -
$50,000 -
$0
Cathedral Desert Hot Palm Springs Palm Desert Rancho' Riverside
city Springs Mirage County '
Source: California Association of Realtors. 2004
More detailed information on sales of existing and new single-family homes and '
condominiums by unit size (number of bedrooms) is provided in Table 2-15. '
Table 2-15 also provides information on mobile home sales during the same time
period, although information on the number of bedrooms was not available.
Reflecting the City's strong real estate market, over '1,360 home sales were '
recorded in Palm Springs from January 2004 to October 2004. Of these, 54
percent were single-family homes, 46 percent were condominiums, and less than
one percent were mobile homes. Approximately 60 percent all single-family home '
sales in the community were comprised of three-bedroom units.
The average single-family home price in the City was $487,705, with a median '
recorded price of $410,000, implying that some homes at the high end pulled the
average price upward but a large number of lower-priced homes kept the median
price low. The median price for homes ranged from $339,000 to almost $980,000 '
depending on size, location, and amenities.
Over 600 condominium sales were recorded during the same time period, offering t
more affordable ownership opportunities for many households who may otherwise
be unable to afford a home. Median prices for condominiums ranged from
$133,000 to $245,000 with an overall median price of $194,750. Of the 624 '
homes sold, almost half were two-bedroom condominiums.
A small proportion of home sales in Palm Springs were comprised of mobile homes. '
Of the nine mobile homes sold, prices ranged from $88,000 to $150,000 with a
median price of $110,500.
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City of Palm Springs Page 2-32 '
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
1 3 $286,000-$339,000 $321,500 $339,000
1 2 125 $135,00042,000,000 $462,952 $405,000
Single Family 3 453 $116,00041,900,000 $452,564 $397,000
' Homes 4 137 $118,000-$1,595,000 $589,512 $489,000
5 12 $200,00041,200,000 $787,500 $865,000
' 6+ 3 $775,000-$1,675,000 $1,143,333 $980,000
Total 733 $116,00042,000,000 $487,705 $410,000
1 207 $83,000-$267,500 $138,442 $133,000
' Condos 2 311 $10%000-$490,000 $233,278 $225,000
3 104 $100,0004585,000 $268,163 $245,000
4 2 $185,000-$195,000 $190,000 --
Total -- 624 $100,000-$585,000 $207,494 $194,750
Mobile Homes n/a 9 $88,000-$150,000 $116,000 $110,500
Source: Dalaquick ganuary 2004 to October 2004).
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Page 2-33 City of Palm Springs
CITY Of PALM SPHINGS Analysis of Impediments to fair Housing Choice
Renter-Occupied Housing '
Information on rental rates in Palm Springs was obtained from advertisements in the '
Desert Sun, and the internet over a three-week period (September, 2004). The
majority of rentals listed in Palm Springs were for apartment units. The overall '
median price for advertised apartments was $900, with the median rental price
ranging from $650 for a studio, up to $1,525 for a three-bedroom unit (Table 2-
16).
Table 2-16: Rents by Unit Size
Unit Type r o. ,
Studio $500-$700 $650
Apartments One $500-$995 $750 '
Two $850-$1,190 $965
Three $1,300-$1,750 $1,525
Total $500-$1,750 $900
Two $1,100-$2,000 $1,300
Single Family Three $1,100-$2,150, $1,525 '
Homes Four $1,575-$2,500 $1,700
Total $1,100-$2,500 $1,675 '
Two $850-$1,275 $1,045
Condominium Three $1,100
Total $850-$1,275 $1,100 '
Mobile Home $1,000
Total $500-$2,500 $1,075
Source: Apartments.com,Springstreet.com, The Desert Sun. September 2004
A portion of the advertised rental units were comprised of condominiums. Rental
prices for condominiums were typically higher than for the apartment rentals,
largely due to the larger size of the units, and higher degree of amenities (private ,
parking, balconies, and pool) that are often included in this type of property. The
median rental price for all condominium units was $1,100. The majority of
condominium rentals advertised were two-bedroom units, with a median price of '
$1,045. One three-bedroom unit was listed at a price of$1,100.
Rents for single-family homes varied quite significantly based on size and amenities. '
The median rent for all single-family homes was $1,675. Rents ranged from a
median price of $1,300 for a two-bedroom home up to $1,700 for a four-bedroom
home. One mobile home was also listed during the survey period at a price of '
$1,000.
City of Palm Springs Page 2-34 '
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Housing Affordability
Housing affordability can be inferred by comparing the cost of housing in Palm
Springs with the maximum housing costs affordable to households of different
' income levels. This information can provide a picture of who can afford what size
and type of housing, as well as indicate the type of households that would likely
experience overcrowding or burden on housing cost.
' HUD conducts annual household income surveys for metropolitan areas across the
country, including Riverside County. These income surveys are adjusted for
' differences in the size of a family. HUD uses these income levels to determine the
maximum amount that a household can pay for housing and their eligibility for
federal housing assistance. Estimates of affordable housing costs based on the Federal
' standard of no more than 30 percent of the gross household income are presented in
Table 2-17.
Table 2-17:' ..Affordability
-Hous . r . r
Income1 income Levels
Group
' Very Low (500/.or less of the MFI)
One Person $19,000 $475 $50 $200 $39:553 $425
Small Family $24,450 $611 $100 $200 $54715 $511
Large Family $29,300 $733 $150 $200 $67,240 $583
Low(51 to 80%of MFI)
One Person $30,400 $760 $50 $200 $89,653 $710
' Small Family $39,100 $978 $100 $200 $119,098 $878
Large Family $46,900 $1,173 $150 $200 $144,587 $1,023
Moderate (81%to 120%of MFI)
' One Person $45,600 $1,140 $50 $200 $156,453 $1,090
Small Family $58,650 $1,466 $100 $200 $205,015 $1,366
Large Family $70,350 $1,759 $150 $200 $247,644 $1,609
' Note: 2004 Median Family Income for Riverside County is established by HUD at$54,300.
Assumptions:
1. Small Family = 3 persons; Large Families = 5 or more persons
2. Utility costs for renters assumed at$50/$100/$150 per month
3. Monthly affordable rent based on payments of no more than 30%of household income
4. Property taxes and insurance based on averages for the region
5. Calculation of affordable home sales prices based on a down payment of 10%, annual interest rate of 6.5%,
' 30-year mortgage,and monthly payment of gross household income
' Moderate Income: The majority of moderate-income households in Riverside
County area cannot afford the median price of single-family homes within Palm
Springs. Among the condominium sales, a number of one-and two-bedroom
condominium are within the price range of moderate income households.
Page 2-35 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
However, this size of housing would not be suitable for larger families. The sales '
price of mobile homes within Palm Springs is within the affordability levels of the '
majority of moderate-income households. However, given the limited number
mobile homes sold and the size restrictions of this type of housing, mobile homes
would not be suitable for all moderate income households. Within the rental ,
market, moderate-income households are able to afford rents between $1,090 and
$1,609 per month. The rental prices of most apartments, condominiums and the
one mobile home listed in Table 2-15 are within this affordability level. However,
many of[he rental listings for single-family homes in Palm Springs are not affordable
to moderate-income households.
Low and Very Income: With a maximum purchase price ranging from $89,653 to '
almost $144,587, low-income households cannot afford the median price of
virtually all single-family homes or condominiums without experiencing a burden '
on housing cost in Palm Springs. Low-income households are able to afford some
of the mobile homes sold within Palm Springs and the median price of studio, one-
bedroom and two bedroom apartments in Palm Springs. However, low-income '
households cannot afford the rental costs of condominiums, larger apartments, and
single-family homes.
With the exception of a limited number of studio units and one-bedroom '
apartments, very-low income households cannot afford to rent a home in Palm
Springs. None of the for-sale single-family homes, condominiums, or mobile '
homes was affordable to these households.
1
1
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City of Palm Springs Page 2-36 '
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.4.6 Housing Condition
rAssessing housing conditions in the City can provide the basis for developing
policies and programs to maintain and preserve the quality of life. Deteriorating
' housing conditions depress property values and can discourage reinvestment in a
community. The ability of households of all socioeconomic segments of the
community to live in a safe and decent living environment is a fair housing concern.
' Housing age is frequently used as an indicator of housing condition. Most
residential structures over 30 years of age will require minor repair and
' modernization improvements, while units over 50 years of age are more likely to
require major rehabilitation such as roofing, plumbing, and electrical system repairs.
A unit is generally deemed to have exceeded its useful life after 70 years of age.
' Approximately 35 percent of housing in the City was constructed prior to 1970
(Table 2-18). This substantial proportion
' of relatively older housing stock Age
indicates an ongoing need for Year Structure Number Percent of
maintenance and repairs on a portion of Built Total
1 the housing in the community. 1990-2000 2,049 6.7%
1980-1989 7,503 24.2%
The City facilitates housing rehabilitation 1970-1979 10,688 34.5%
' and improves neighborhood conditions 1960-1969 5,736 18.5%
through the Home Repair Program which
1940-1959 4,179 13.5%
provides home repair grants of up to
1939 or earlier 827 2.6%
$1,500 for owner-occupied occupants. Total 30,979 100%
Source U.S.Census,2000.
' 2.4.7 Code Enforcement
The Community Preservation Department within the Department of Building and
Safety maintains a largely reactive, complaint-driven code enforcement program
although the Department attempts to be more proactive if time permits. The
Department currently employs one supervisor and two officers that work to correct
' code violations and respond to complaints from residents. One member of the staff
is fluent in Spanish, facilitating understanding and cooperation between residents,
property owners, and the City. The primary housing complaints are related to
property maintenance, non-operational vehicles, and sign code violations.
Complaints generally occur citywide; there is not a particular area of the City that
the Department focuses on.15 Code enforcement for all mobile home parks within
Palm Springs is conducted by the State of California Housing and Community
Development Division of Codes and Standards.
15 Dirk Voss, Community Preservation Coordinator, Department of Building&Safety/Community Preservation City of
Palm Springs. November 2004.
' Page 2-37 City of Palm Springs
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
In conjunction with inspecting and noticing property owners regarding a violation, —
the Community Preservation Department staff generally advises property owners to
contact the City's Department of Community and Economic Development for ,
information on the City's rehabilitation programs.
2.5 Affordable Housing ,
The availability and location of public and assisted housing may be a fair housing '
concern. If such housing is concentrated in one area of a community, a household
seeking affordable housing is limited to choices within that area. In addition,
public/assisted housing and Section 8 assistance should be accessible to lower '
income households regardless of race, ethnicity, or disability.
2.5.1 Section S Rental Assistance '
The Housing Authority of Riverside County operates the Section 8 Housing Choice
Voucher program for residents within Riverside County including Palm Springs. '
Recipients of Section 8 assistance receive a housing voucher and can use it to rent a
dwelling in the private market. The housing voucher covers a portion of the rent
and the tenant is expected to pay the balance. The tenant's share of rent is an '
affordable percentage of their income, which is generally between 30 and 40
percent of their monthly gross income for rent and utilities.
As of August 2004, 379 Palm '
Springs households received Table 2-19: Section 8 Voucher
'
Section 8 vouchers from the Holders
Housing Authority of the County ' of '
of Riverside. Among the voucher Hispanic* 80
recipients, approximatey 114 (30 White 315 '
percent) were elderly, and 194 (51
percent) were disabled. African American 59
Asian 2 '
As indicated in Table 2-19, the American Indian 3
Housing Authority of Riverside Total 379
County also maintains records
regarding the racial/ethnic makeup source: Housing Authority of the Countyof
Riverside,August 200404.
of Section 8 voucher holders. *Note: Totals add up to more than 379 since
Among all recipients, White Hispanic residents are defined under more than one '
households (315) comprised the race category.
majority of all recipiants, followed
by Hispanic residents (80), and African American residents (59). Although there are '
a racially and ethnically diverse mix of residents that participate in the Section 8
voucher program, compared to the overall ethnic and racial makeup of the City, it ,
appears that Hispanic residents are slightly under-represented within the Section 8
voucher program.
City of Palm Springs Page 2-38 '
CITY Of PALM SPRINGS Analysis of Impedimonts to fair Housing Choice
Table t Section 8 Voucher The Housing Authority also provides information
Holders by Unit Size on Section 8 voucher holders by size of housing
Section 8 unit. As shown on Table 2-20, the majority of
Unit SizeHouseholders
voucher holders rented one and two bedroom
apartments.
Studio 13
One-Bedroom 213 As of August 2004, 7,652 Riverside County
' Two-Bedroom log households were on the Section 8 waiting list. Of
Three-Bedroom 23 these households, 767 resided in Palm Springs.
According to the Housing Authority, the wait list is
Four-Bedroom 3 from one to two years but it can vary
Total 379 considerably. New and relocating voucher
Source: Housing Authority of the County of holders receive a briefing package that includes
Riverside,August 2004. information on fair housing laws, rights and
responsibilities as well as contact information if a
tenant has a complaint. If a tenant has a fair housing issues, the Housing Authority
' will get involved to assist in resolving the issue; however, in most cases the
individuals are referred to the Fair Housing Council of Riverside County, The Fair
Housing Council also provides staff training on fair housing issue to Housing
Authority staff approximately once a year.16
Due to shortages in funding, the County has set up preferences to assist those that
' are the most need. Families on the waiting list must meet all of the following four
categories. The preferences are as follows:
' Families that live or work in the County of Riverside and;
• Families who are rent burdened or homeless, and;
• Families with children or Elderly persons or Disabled persons, and;
' Families with income below 30 percent of the median for 75 percent of the
new vouchers and below 50 percent of the median for 25 percent of the
new vouchers.
Family Self-Sufficiency Program
' The Housing Authority of Riverside County also operates the Family Self-Sufficiency
Program. All Section 8 participants are eligible to participate in this program. This
program includes monthly workshops that focus on some aspect of self-sufficiency
including credit repair, home ownership information, resume writing, and
parenting. In addition, participants are eligible for access to a revolving loan fund,
' scholarship fund, and access to various job listing and community services.
Personal communication with Barbara Simmons. Housing Specialist 11. Housing Authority of Riverside County.
October 2004.
Page 2-39 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
2.5.2 Assisted Housing ,
Housing projects can receive assistance
from a variety of sources to ensure that
costs are affordable to low- and moderate-
income households. In exchange for
public assistance, property owners are
required to reserve all or a portion of the
units at affordable rents or purchase ` ' `
prices. The length of affordability control Completed in 1993, Coyote Run '
depends upon the funding program used. Apartments provides 140 units for low
income families. Planning is currently
Often, ownership housing is also governed underway for a second phase consisting of
by resale provisions to recapture public 66 units. '
funds.
A variety of affordable housing developments are located in Palm Springs. '
Approximately 16 affordable rental developments totaling over 1,220 units are
located in the City (Table 2-21). As shown in Figure 2-8, while the assisted housing
projects are generally located within low and moderate-income areas, they are not '
concentrated in one particular area.
d . r . • i
• Target Pop.
Calle de Carlos Two and Three 4 Low Income Families '
Bedroom
Calle de Carlos II Two and Three 4 Low Income Families
Bedrooms '
Coyote Run* One, Two, Three and 140 Low Income Families
Four Bedrooms
Heritage One and Two 68 Low and Moderate Income Families '
Bedroom
Pacific Palm One, Two and Three 138 Moderate Income Families and
Apartments Bedrooms Seniors '
Palm Springs Senior One bedroom 116 Low Income Senior and Disabled
Apartments Residents
Palm Springs View One and Two 120 Low Income Families '
Bedroom
Palos Verdes Villas One and Two 98 Low Income Families
Bedroom '
Racquet Club One Bedroom 9 Low Income Families
Ranchero del Sol One, Two, and Three 76 Low Income Families and Seniors
Bedroom (Section 8) ,
Royal Palms Studio, One and Two 125 Low and Moderate Income Seniors
Bedroom and Families
Seminole Garden Two and Three 60 Moderate Income Families
Bedroom
City of Palm Springs ' Page 2-40 '
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
r-MR.I W, � •
Sunnyview Villas Two and Three 44 Low Income Families
' Bedroom
Tahquitz Court One, Two and Three 108 Low Income Families
Apartments Bedroom
' Vista del Monte One Bedroom 52 Low Income Seniors
Vista Serena One Bedroom 60 Low Income Seniors
Source: City of Palm Springs Affordable Rentals.August 2004.
*Note: Planning is now underway for a second phase (66 units)
1
1
1
1
Page 2-41 City of Palm Springs
Dillion Rd
L
Gorgonio in"�
�a. - iUnion
•te Paclfic Railroad
o
o Rber
L..—. .2 ` Cathedral
1 City
San Bernardino - -� R uet club Fl�yI
- - National Forest - -_ cl Vista Chino\rrAa'f
Raman Rd 4\,
Mount San Jacinto I -- a� E 1 "�
State Park __Dinah --Sham Dr
_ ais
FYJ O
o
❑ a
•; °r o a
• Frank Sinatra r
I r ,
\ Conof Cluc Dr _
(9,ta ,' ldyllwdd I a
,Alne Cove I Rancho a
iMirage �\
i I l��
Bay Front
Park
/r
1 L..�
I ! r
- lake Hemet I I •�
�-� ,San Bernardino'.
National Forest L.•� `�•'� ati��
I
1
Legend Assisted Rental Housing Source City of Palm Springs 2004,HUD and Census 2000 TIGER/Lme Data
L r City Boundary ❑ Family
0 Low Moderate Income Block Groups
(Low to Moderate Income concentration defined
Census Tract 2000 Family/Senior as Census Block Group with more than 51%
�J Census Block Group 2000 O Senior Low and Moderate Income Population.)
Palm Springs International Airport
North figure 2-8
Mlles 0 1 2 3 4 Assisted Rental Rousing
City of Palm Springs
CIW Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
2.6 Licensed Community Care Facilities
Persons with special needs such as the elderly and those with disabilities must also
have access to housing in a community. A community care facility is any building
or location where non-medical care and supervision is provided to residents.
Community care facilities provide a supportive housing environment to persons
with special needs in a group situation. In California these facilities are licensed by
the Department of Social Services, Community Care Licensing Division.
Restrictions that prevent this type of facilities from locating in a community impede
the equal access to adequate housing for the special needs groups.
According to the State Department of Social Services Community Care Licensing
_ Division, 34 licensed community care facilities are located in Palm Springs (Table 2-
22). The capacity of these facilities ranges from as few as 2 to as many as 150 beds.
The largest proportion of beds (487) is for residential elderly care. One adult
residential facility that can accommodate four developmentally disabled adults is
located within Palm Springs. In addition, eight foster family homes that can
accommodated up to 15 children each are located in the community. Community
care facilities tend to be distributed evenly throughout different neighborhoods of
Palm Springs, with a small concentration along Ramon Road near the Palm Springs
IInternational Airport(Figure 2-9).
• uu
r . rHE
r • . r.
IM
r • rr r
Adult Residential 1 4 4
Residential— Elderly 25 487 34
_ Foster Family Home 8 15
Total 34 506 4 34
Source:Stale of California Department of Social Services,Community Care Licensing Division, November 2004
"Categories are not mutually exclusive.
Page 2-45 City of Palm Springs
' r—r'" r 11 I'•� Dillion Rd _
v�
Sa = Uniop
�,--.. Railroad
r._
Cathedral
San Bernardino I i RaCi�i�
National Forest china
yI 7i{
Ramon Rd\
Mount San Jacinto
State Park Dinah Shore Dr
7r _
L.�.���• r•• Frank Sinatra) r _
may Club or
�dyPfwlld- i
' 'Pine-Cove I Rancho `
- ._.I Mirage 4'�
' I e
i
.. i Bay Front _
Park i
At
Lake Hemet
r. San Bernardino.'
YRlJ National Forest
I
• Source California Department of Social Services,
Legend Licensed Care Community Facilities HUD and census 2000 TIGER/Lime Data
�. City Boundary 1�1 Foster Family Home 0 Low Moderate Income Block Groups
w Adult Residential Facility (Low to Moderate Income concentration defined
i Census Tract 2000 as Census Block Group with more than 51
Census Block Group 2000 [IResidential Care for the Elderly Low and Moderate Income Population,)
X Palm Springs International Airport
figure 2-9
NortF Miles Licensed Caro
0 1 2 3 4 Community facilities
City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
2.7 Accessibility of Public Transit
Public transit plays an important role in analyzing access to housing. Public transit
should link lower income persons, who are often transit-dependent, to major
employers where job opportunities may be available. The lack of an integral
relationship between public transit, employment opportunities, and affordable
housing may impede fair housing choice because persons who depend on public
transit will have limited choices regarding places to live.
Many elderly and disabled persons are very much transit-dependent. Specifically,
many rely on public transit to visit doctors, go shopping, or attend activities offered
at community facilities. Housing for the elderly and disabled should be located
near transit routes, or alternative transit should be made available for persons with
special needs. This section discusses the accessibility of public transit to major
employers, shopping centers, community and medical facilities from lower income
areas and housing for persons with special needs.
According to the 2000 Census, 376 Palm Springs residents rely on public transit to
go to work. In addition, 2,233 households (1,648 owner-households and 585
renter-households) have no car and must rely on public transit for other activities
such as grocery shopping, going for medical appointments, and visiting community
facilities.
2.7.1 Public Transit
Palm Springs is well served by public
e
transportation. Transit services are offered
through the SunLine Transit Agency which a7all
serves the communities of Palm Springs,
Cathedral City, Rancho Mirage, Desert Hot HIS..
Springs, Palm Desert, Indian Wells, La
Quinta, Indio, Thousand Palms, Coachella Public transportation in Palm Springs
and Mecca. Headquartered in Thousand is provided by the SunLine Transit
Agency.
Palms, the SunLine transit agency operates
six bus routes in Palm Springs throughout the year (except for Christmas and
Thanksgiving Day). The six SunLine (also known as SunBus) transit routes that serve
Palm Springs are as follows:
• Route 14: This route serves central and northern Palm Springs and also
provides a link to Desert Hot Springs. Service stops include the Palm Springs
Library and Senior Center.
• Route 23: Route 23 provides a small loop within Palm Springs along Sunrise
Way and Ramon Road. Route 23 service stops include Coyote Run Apartments
and the Palm Springs Library.
Page 2-49 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
• Route 24: This route provides a link from Palm Springs to Cathedral City.
Route 24 serves Indian Canyon Road, Sunrise Way, Vista Chino and Ramon
Road. Service stops include Palm Springs City Hall and the Desert Regional
Medical Center.
Route 30: Route 30 serves Palm Springs and Cathedral City. Route 30
primarily provides service along Ramon Road.
• Route 31: This route serves Palm Canyon Drive and Ramon Road and provides
service to Cathedral City and Thousand Palms. Service stops include the Palm
Springs Library and Senior Center.
• Route 111: Route 111 is, an important regional bus route that serves Palm
Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta,
and Indio. Route 111 serves Indian Canyon Way and then travels along
Highway 111 to provide service to nearby communities.
SunLine ensures that all bus lines are accessible through wheelchair lifts or ramps
and offers reduced fares to disabled/senior passengers. The SunLine Transit Agency
also provides a Dial-A-Ride Program that provides curb-to-curb transportation for
physically and mentally disabled passengers unable to use the regular bus service.
The Dial-A-Ride Program provides transportation to anywhere within the Coachella
Valley.
2.7.2 Community facilities
Many lower income, elderly, and disabled persons depend on public transit to
reach community facilities, such as hospitals/clinics, community centers, public
libraries, and shopping centers. Figure 2-10 overlays transit routes in the
community with these community facilities. As shown, most of the community
facilities including the Palm Springs Public Library, Desert Regional Medical Center,
Palm Springs City Hall, Desert Career College,,Desert AIDS Project, and the Palm
Springs International Airport are located along or within walking distance from the
Sun Bus transportation routes.
2.7.3 Major Employers
A number of major employers are located in Palm Springs. Approximately 50
businesses, insitutions, and public and non-profit agencies in Palm Springs employ
more than 50 individuals. Reflecting Palm Springs' tourist-oriented economy, a
significant number of employers are service-related including hotels, resorts and
restaurants. Many of these jobs typically pay lower wages with few benefits. Major
employers in Palm Springs include Bird Products, City of Palm Springs, Spa Hotel
and Resort, Wyndham Hotel, and Palm Springs Unified School District. The vast
majority employers in Palm Springs are located in the central portion of the
community near Palm Springs Regional Airport and Indian Canyon Drive. The vast
majority of employers are located along or near transit routes (Figure 2-11).
City of Palm Springs Page 2-50
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
Employer Type of Business mployees Location
' �� �� • • -
Bird Products Respirator Manufacturer 200+ 1100 Bird Center Drive
' City of Palm Springs Government 200+ 3200 E. Tahquitz Canyon
Way
Desert Medical Group Physicians and Surgeons 200+ 275 N. E. Cielo Road
Palm Springs Resort and Resort 200+ 1600 N. Indian Canyon
Racquet Club Way
Palm Springs Unified School Elementary and 200+ Various locations
District Secondary Schools
Spa Resort Casino Hotel/Casino 200+ 140 N. Indian Canyon
Way
t Spa Hotel and Resort Hotel 200+ 100 N. Indian Canyon
Way
The Desert Sun Newspaper publishing 200+ 750 N. Gene Autry Trail
Wyndham Hotel Hotel 200+ 888 E.Tahquitz Canyon
Way
Palm Springs Hilton Hotel 151-199 400 E. Tahquitz Canyon
' Way
Palm Springs Marquis Hotel 151-199 150 S. Indian Canyon
Way
California Nursing Nursing staff services 101-150 2299 N. Indian Canyon
Way
Gold's Gym Fitness Center 101-150 4070 Airport Center Drive
Las Casuelas Terraza Restaurant 101-150 222 S. Palm Canyon
Drive
Oasis Water Resort Hotel Hotel/Resort 101-150 1500 Gene Autry Trail
P.S. Healthcare Nursing&Convalescent 101-150 277 S. Sunrise Way
Homes
United Parcel Service Package Shipping 101-150 650 Commercial Road
Zelda's Nightclub Night Club/Dance Club 101-150 174 N. Palm Canyon_
Source: City of Palm Springs. September 2004
1
1
' t0 Due to the large number of employers in the City,only institutions that employ over 100 individuals are listed.
tPage 2-51 City of Palm Springs
DalionRd
Gorgonio ft'"iel � o
Sac f w __ 'm
�nlon Pzngc Railroad o
a _
iv _ �l
•.� eWater q,� � •'^'.y. •. n 1
Cathedral
City
San BernardinoI 4 e uet CI Rd
' National Forest - o w Vrsb Chi- e ,
_� �ELit
na\�� 'c
Fit
■,i�li9 r2 i Ramon Rd r
Mount San Jacinto f -' F
State Park i - v, _° Dinah r--.shore or
of
eP o' a
f �• , . Frank Sinatra Dr
f r l / J e _ �s
'. (eu ,'-jIdy11Wi1d- f f Rancho r
Pine Cove
1 .. f .._.� Mirage
1 i f Bay Front
Park
Iiirr
L..� f �—
, Lake Hemet
'.San Bernardino el
National Forest
North
' Mlles
0 1 2 3 4 j
Source Suture Transit Agency 2004.
Community Facilities Bus Routes HUD and Census 2000 TIGER/Une Data.
F191,
Colleges 14 Desert Hot Springs/Palm Springs � ; City Boundary
`!II Government -- 23 Palm Springs Census Tract 2000
® Library �r®!. Cathedral City/Palm Springs Low Moderate Income Block Groups
L.d Medical Centers Palm Springs/Cathderal City (Low to Moderate Income concentration
defined as Census Block Group with
IRA Museums c?" Cathedral City/Thousand Palms more than 5 1%Low and Moderate
Senior/Community Center ®� Rancho Mirage/Palm Desert Income Population.)
Supportive Services — Palm Springs/Cathedral City/ figure 2-10
Palm Springs International Airport Rancho Mirage/Palm Desert/ Community facilities and Transit
Indian Wells/La Quinta/Indio
' City of Palm Springs
; U billion Rd
C Gorgonio PiNe( j • >
Pacific R
_�• o_
ailroad • G i0
�.. .� ware,Rner
J �� \
Cathedral
\' \r City
San Bernardino _ ''
National ForestI { �'
I � Vlste,Chmo
c 1
' ., . i -••_"—• _ �I Ramon Rd�m�-y\y\�
Mount San Jacinto I P
' State Park _ _ Dinah,—�Shore Dr
11 s s'
` o
' —x
aP S
j I PP m
I.._•...:•, _ _ Frank Sinatra�Dr I
I EI j j
,'IldyjiWijd-
;Pine Cove j I _ Rancho
Mirage -
I
r
�! I Bay Front
Park I
1 1---.
Lake Hemet
San Bernardino , h
National Forest L.•� -�.�
North
' Mlles-
D 1 z 3 a
Lj
Source.City of Palm Springs 2004,
Legend Bus Routes Major Employers HUD and Census 2000 TIGER/lure Data.
' L.. 7 City Boundary c t4 Desert Hot Springs/Palm Springs
Employers With 200+ Employees
Census Tract 2000 —is Palm Springs
0 Low Moderate Income Block Groups O Employers with 101-150 Employees
P c�=-� Cathedral City/Palm Springs
' Low to Moderate Income concentration i O Employers With 101-150 Employees
( ��— Palm Springs/Cathderal City
defined as Census Block Group with O Employers with 76-100 Employees
more than 51%Low and Moderate Cathedral Clty/rhousand Palms Employers with 51-75 Employees
Income Population.) c®= Rancho Mirage/Palm Desert
Palm Springs International Airport Palm Springs/Cathedral City/ figure 2.11
Rancho Mirage/Palm Desert/ Major Employers and Transit
Indian Wells/La Quinta/Indio
' City of Palm Springs
1
?ALAI �
Chapter 3
Z wow
Mortgage
Lending Practices
A key aspect of fair housing choice is equal access to financing for the purchase
or improvement of a home. This chapter reviews the lending practices of
financial institutions and the access to home loans by minorities and all income
' groups using statistical data, primarily the Home Mortgage Disclosure Act
(HMDA) data.
' Later, Chapter 4 reviews fair housing issues that may surface during the home
buying process that involves a number of parties, including property owners, real
estate agents, lenders, and appraisers, among others.
1 3.1 Background
' In the past, financial institutions did not always employ fair lending practices.
Credit market distortions and other activities such as redlining' prevented some
' groups from equal access to credit. The passage of the Community Reinvestment
Act (CPA) in 1977 was designed to improve access to credit for all members of
the community.
' The Community Reinvestment Act (CRA) is intended to encourage regulated
financial institutions to help meet the credit needs of entire communities,
including low and moderate income neighborhoods. Depending on the type of
institution and total assets, a lender may be examined by different supervising
agencies for its CRA performance.
' In tandem with the CRA, [he Home Mortgage Disclosure Act (HMDA) requires
lending institutions to make annual public disclosures of their home mortgage
' lending activity. Under HMDA, lenders are required to disclose information on
' The word "redlining" refers to the practice whereby a lender provides unequal access to credit or unequal credit
' terms to a person because of their race, creed, color or national origin or other characteristics) of the residents of
the area in which the applicant resides or will reside
' Page 3-1 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
the disposition of home loan applications and on the race or national origin, '
gender, and annual income of loan applicants.
Detailed 2003 HMDA data for conventional and government-backed home ,
purchase and home improvement loans in Palm Springs was examined. HMDA
data provides some insights regarding the lending patterns that exist in a '
community. However, HMDA data is only an indicator of potential problems; it
cannot be used to conclude definite redlining or discrimination due to the
limitations of the data. Since lenders are not required to report loan terms or '
specific conditions of the applicants, HMDA data offers limited information for
drawing conclusions regarding potential discrimination.
Conventional versus Government-Backed Financing '
Conventional financing usually consists of market-rate loans provided by private '
lending institutions such as banks, mortgage companies, savings and loans, and
thrift institutions. To assist lower and moderate-income households that may '
have difficulty in obtaining home mortgage financing in the private market due to
income and equity issues, several government agencies offer loan products that
have below market rate interest and are insured ('backed') by the agencies. ,
Sources of government-backed financing include loans insured by the Federal
Housing Administration (FHA), the Department of Veterans Affairs (VA), and the
Rural Housing Services/Farm Service Agency (RHA/FSA). Often, government-
backed loans are offered to the consumer through private lending institutions.
3.2 Conventional Home Loans '
3.2.1 Conventional Home Purchase Loans
Race of Applicants '
According to HMDA, 4,303 households applied for conventional home purchase ,
loans in Palm Springs in 2003 (Table 3-1). The overall approval rate for
conventional home mortgage loans was 77 percent and the denial rate was 14 '
percent.
Among all applicants within Palm Springs, White applicants (73 percent) ,
constituted the largest racial/ethnic group, followed by Hispanic applicants at
eight percent. Asian and African American residents each constituted two
percent of all applicants, with Native Americans comprising less than one percent '
of applicants. Race and ethnicity information is not available for 13 percent of all
loan applications in Palm Springs.
Approval and denial rates within Palm Springs varied among different
racial/ethnic groups. Native American applicants had the highest approval rate at
82 percent. White and Asian applicants had second highest approval rate of 80 '
City of Palm Springs Page 3-2 1
1
CITY Of PALM SPRINGS ANALYSIS of Impediments to fair Housing Choice
' percent. African American applicants followed with an approval rate at 68
percent. However, it must be noted that the number of Native America, African
American and Asian applicants was small, potentially skewing the approval rate.
Hispanic applicants had the lowest approval rate in the City at 66 percent. As
' mentioned in Chapter 2, the income profile of residents indicates that a large
proportion of Hispanic residents are in the lower and moderate income groups.
Given the housing prices in the community, many may not qualify to purchase
homes in Palm Springs. Among the applicants in which no information is
available, the approval rate was 67 percent.
' Disposition
IClosed*
. , . ,. r '. . '.
' Native American 11 <1% 9 82% 2 18% 0 0%
Asian 71 2% 57 80% 7 10% 7 10%
African American 75 2% 51 68% 21 28% 3 4%
Hispanic 338 8% 224 66% 88 26% 26 8%
White 3,131 73% 2,503 800/0 375 12% 253 8%
joint 74 2% 52 70% 13 18% 9 12%
Other 52 1% 44 85% 4 8% 4 8%
' Not Available 551 13% 369 67% 101 18% 81 15%
Total 4,303 100% 3,309 77% 611 14% 383 9%
Note. Applicants who filed joint applications can be of different racial/ethnic backgrounds; however, HMDA data does
not provide a means of identifying the racial/ethnic backgrounds of joint applicants.
Source: HMDA data tabulated using Peerlrax software by the Centrax Group, 2003.
"Withdrawn applications are files withdrawn by the applicant during the lending process. Closed applications are files
' closed by the lender for incompleteness.
Income of Applicants
' Generally, applicant income and credit history are the primary factors in
determining conventional loan approvals. In Palm Springs, 70 percent of all
' home loan applications came from households with an income of greater than
120 percent of the MFI (Table 3-2). Significantly fewer loans originated from
households that earned between 100 to 120 percent of the MFI (eight percent)
and households that earned between 80 and 100 percent of the MFI (seven
percent). Approximately nine percent of home loans originated from low and
moderate income households that earned less than 80 percent of the MFI.
' Typically, an inverse relationship exists between denial rates and the income of
applicants. In Palm Springs, the approval rates among upper income applicants
' earning above 120 percent of the MFI was the highest among all income groups
at 79 percent. Households earning between 80 percent and 120 percent of the
MFI had an approval rate of that ranged from 71 to 74 percent, with an overall
' approval rate of 73 percent. In comparison, low and moderate income
' Page 3-3 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
households had significantly lower approval rates. Moderate income households '
earning between 50 to 80 percent of the MFI had an approval rate of 68 percent, ,
while low income households earning less than 50 percent of the MFI had an
approval rate of 63 percent.
DispositionTable 3-2: . .n Applications by '
Applicant Income ® � r r 1�1
r
r of
Total '
Low: <50% 104 2% 65 63% 27 26%1 12 12%
Moderate: 50%to <80% 310 7% 212 68% 74 24% 24 8%
Middle: 80%to <1 00% 315 7% 224 71% 69 22% 22 7%
Middle 100%to <120% 345 8% 256 74% 53 15% 36 10%
Upper: >=120% 3,032 70% 2,403 79% 371 12% 258 9%
Not Available 197 6% 149 76% 17 9% 31 16% ,
Total 4,303 100% 3,309 77% 611 14% 383 9%
Source: HMDA data tabulated using Peertrax software by the Centrax Group, 2003.
*Withdrawn applications are files withdrawn by the applicant during the lending process. Closed applications are files
closed by the lender for incompleteness. '
Race Differences by Income of Applicant
While income and affordability are important factors in determining access to 1
financing, as isolated factors they present no fair housing concerns. To dissect the
lending pattern in the community, further analysis was conducted to examine '
lending patterns by race and income level. As indicated in Table 3-3, among
upper income applicants (>120 percent of MFI), White applicants had the higher
approval rates among all racial groups in the City at 82 percent. This was a '
noticeably higher approval rate than Asian households (76 percent) and African
American applicants (72 percent) in the same income group. However, a
relatively limited number of African American and Asian applicants applied for
home loans in Palm Springs in 2003, which makes an accurate assessment of
lending patterns difficult. Hispanic applicants had the lowest approval rate
among all upper income applicants at 66 percent. '
Among middle income households, White applicants continued to have a higher
approval rate than other applicants, however the approval rate did not vary as '
greatly. White middle income applicants that earned between 80 percent to 120
percent of the MFI had approval rates that ranged from 73 percent to 79 percent.
The approval rate for middle income Hispanic households ranged from 64 '
percent to 67 percent. Approval rates for middle income African American and
Asian applicants varied widely largely due to the small pool of applicants within
this income category. '
Among applicants that earned between 50 to 80 percent of the MFI, White
applicants had a higher approval rate than Hispanic applicants. However, '
City of Palm Springs Page 3-4 '
CITY Of PALM SPHINGS ANALYSIS of Impediments to fair Housing Choice
' Hispanic applicants that earned less than 50 percent of the MFI had a higher
approval rate than White applicants in the same income category.
According to a recent, nationwide study completed by HUD,' African American
' and Hispanic homebuyer in California and the nation face a significant risk of
unequal treatment when they visit mainstream mortgage lending institutions to
make pre-application inquires. The extensive study was based on 4,600 paired
' tests, conducted in 23 metropolitan areas nationwide during the summer and fall
of 2000. The study utilized paired testing for determining whether minority
homebuyers receive the same treatment and information as Whites in the pre-
application phase of the mortgage lending process. Discriminatory treatment at
this early stage in the lending process has the potential to discourage some
minorities from continuing their housing search, to limit their search to lower cost
homes, and to prevent them from choosing the most favorable loan products.
Although testing was not conducted within Riverside County, the study included
paired testing within the nearby counties of San Diego and Los Angeles. With
respect to Hispanic and African American homebuyers the study identified the
following key issues:
• In 2000, non-Hispanic Whites were consistently favored in 20 percent of
tests. In particular, non-Hispanic whites were more likely to receive
information and assistance with financing, and to be shown homes in non-
Hispanic neighborhoods than comparable Hispanic homebuyers. However,
discrimination against Hispanic homebuyers declined in 2000 compared to
similar study that was conducted 1989.
• African Americans were offered less coaching than comparable White
homebuyers, and were more likely to be encouraged to consider an FHA
loan.
2 All Other Things Being Equal:A Paired Testing Study of Mortgage Lending Institutions. HUD 2002
Page 3-5 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Table 3-3: Approval Rate of Conventional Home Purchase Loan Applicationsm
Applicant Income
Low: <50% 42 64% 14 74% 1 33% 0 --
Moderate: 50%to <80% 140 73% 32 63% 4 80% 6 100% '
Middle: 80%to <100% 144 73% 32 64% 10 77% 7 100%
Middle: 100%to <120% 185 79% 35 67% 2 29% 3 60%
Upper: >=120% 1,880 82% 100 68% 28 72% 39 76% '
Not Available 112 84% 11 55% 6 75% 2 100%
Total Approved 2,503 80% 224 66% 51 68% 57 80%
Source: HMDA data tabulated using Peertrax software by the Centrax Croup, 2003. ,
Note: Applicants who filed joint applications can be of different racial/ethnic backgrounds; however, HMDA data does
not provide a means of identifying the racial/ethnic backgrounds of joint applicants.
3.2.2 Conventional Home Improvement loans 1
Approximately 35 percent of the housing units in Palm Springs are older than 30 '
years of age.' This significant proportion of older homes indicates a need for
ongoing home improvement financing in the community. This section assesses
the availability of home improvement financing in Palm Springs. '
Race of Applicants
In 2003, 272 households applied for conventional loans from private lending '
institutions for home repairs and improvements (see Table 3-4). The largest
racial/ethnic group was White applicants (55 percent). Approximately nine '
percent of home improvement loan applications were from Hispanic households,
followed by African American households at two percent. Asian and Native
American households each comprised one percent of all applications. '
Race/ethnicity information for 27 percent of all applicants was not available.
At 39 percent, the overall level of home improvement loan approval rate in Palm '
Springs was much lower than that for home purchase loans (77 percent).'
Among all racial and ethnic groups, Asian and African American applicants had
the highest approval rate, at 67 percent and 50 percent respectively. White '
applicants had a slightly higher approval rate (41 percent) than Hispanic
households (39 percent). However, due to the limited number of applications
from Hispanic, Native American, and Asian residents, an accurate level of '
approvals and denials is difficult to determine. Moreover, as mentioned earlier,
racial data was unavailable for 27 percent of home improvement applications.
s 2000 Census. '
' Many homeowners, who already have mortgage loans, may find it hard to qualify for home improvement loans due ,
to the high debt-to-income ratio.
City of Palm Springs Page 3-6 '
' CITY Of PALM SPRINGS ANALYSIS of Impediments to fair Housing Choice
DispositionTable 3-4:
'
Native American 4 1% 1 25% 2 50% 1 25%
Asian 3 1% 2 67% 0 0% 1 33%
African American 6 2% 3 50% 2 33% 1 17%
Hispanic 23 9% 9 39% 9 39% 5 22%
' White 150 55% 62 41% 68 45% 20 13%
Joint 6 2% 3 50% 2 33% 1 17%
Other 6 2% 2 33% 3 50% 1 17%
' Not Available 74 27% 25 34% 33 45% 16 22%
Total 272 100% 107 39% 119 44% 46 17%
Note: Applicants who filed joint applications can be of different racial/ethnic backgrounds; however, FIMDA data does
not provide a means of identifying the racial/ethnic backgrounds of joint applicants.
Source: HMDA data tabulated using Peertrax software by the Cen Lrax Croup, 2003.
Income of Applicants
iSimilar to home purchase financing, home improvement loan applications were
filed primarily by households earning over 120 percent of the County MFI (Table
' 3-5). Approximately 51 percent of these applications within Palm Springs were
filed by upper-income households (>120 percent MFI), while only 21 percent
were from low and moderate income households (<80 percent MFI).
Several reasons may explain this pattern. Lower and moderate income
homeowners would most likely incur too high a debt-to-income ratio with the
mortgage loan to qualify for additional financing. Also, home improvement may
not be a priority for lower-and moderate income households compared to other
items such as food, clothing, health care, and other expenses. Similar to home
purchase loans, approval rates were correlated with income levels. The approval
rate for upper-income households was approximately 48 percent, compared to
41 percent for moderate-income households and 20 percent for low-income
households.
Page 3-7 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
DispositionTable 3-5:
by
1
IncomeApplicant
Low: <50% 25 9% 5 20% 18 72% 2 8%
Moderate: 50%to<80% 32 12% 13 41% 13 41% 6 19% '
Middle: 80%to <100% 33 12% 8 24% 19 58% 6 18%
Middle: 100% to<120% 41 15% '14 34% 19 46% 8 20%
Upper: >=120% 139 51% 66 48% 49 36% 24 17% '
Not Available 2 1% 1 50% 1 50% 0 0%
Total 272 100% 107 39% 119 44% 46 17%
Source: HMDA data tabulated using Peertrax software by the Centrax Group, 2003. '
*Withdrawn applications are files withdrawn by the applicant during the lending process. Closed applications are files
closed by the lender for incompleteness.
3.2.3 Conventional Financing by Lender t
In 2003, the top ten mortgage lenders received approximately 55 percent of the '
conventional home mortgage loan applications in Palm Springs (Table 3-6).
Among these top lenders, ABN Amro Mortgage had the highest approval rate (88
percent) followed by Countrywide (87 percent), Downey Savings (84 percent),
Wells Fargo (83 percent), and Bank of America (82 percent). Finance America
had the lowest approval rate at 49 percent followed by Long Beach Mortgage
which is owned and operated by Washington Mutual at 66 percent. Consistent '
with the high approval rates, ABN Amro Mortgage and Countrywide exhibited
very low denial rates (four percent).
Approximately 10 percent of the loan applications filed at Bank of America were
withdrawn or closed due to incomplete information. In contrast, none of the
applications to First Franklin were withdrawn or closed due to incomplete ,
information.
Among the top ten lenders, five lenders have offices in the City or nearby '
communities, including Washington Mutual (Long Beach Mortgage),
Countrywide, Bank of America, Wells Fargo, and Downey Savings. Lenders that
provide face-to-face interaction often tend to fare better in terms of higher
approval rates and lower rates of incomplete/withdrawn applications. This trend
was not always the case within Palm Springs since ABN Amro Mortgage had one
the highest approval rates in the community. However, Finance America which '
does not have a local branch had the lowest approval rate in the community.
HUD annually identifies a list of lenders that specialize in subprime lending. '
According to 2003 data compiled by HUD, two active lenders in Palm Springs
1
City of Palm Springs Page 3-8
CITY OF PALM SPRINGS ANALYSIS of Impedimoots to fair Housing Chico
' specialize in subprime lending: Long Beach Mortgage and Wells Fargo.' The
' subprime lenders serve the typically "hard-to-serve" market, where potential
borrowers have less-than-desirable credit history or inadequate collateral.
Because of the higher risks (higher default rates) involved for the lenders in
' serving the subprime market, high interest rates and loan fees are typically
associated with subprime lending.
, . %With-
® rr � • Withdrawnor
Approved Closed I
' Washington Mutual 485 11% 339 70% 73 15% 13 3%
Countrywide 435 10% 378 87% 19 4% 38 9%
Bank of Amenca 379 9% 309 82% 31 8% 39 10%
Wells Fargo 206 5% 171 83% 19 9% 16 8%
Downey Savings 193 4% 162 84% 26 13% 5 3%
First Franklin 167 4% 131 78% 36 22% 0 0%
' ABN Amro Mortgage 114 3% 100 88% 5 4% 9 8%
Finance America 111 3% 54 49% 56 50% 1 1%
Long Beach Mortgage 110 3% 73 66% 36 33% 1 1%
' Indymac Bank 103 3% 77 75% 21 20% 2 2%
Total Market 4,303 100% 3,309 77% 611 14% 383 9%
Source: HMDA data tabulated using Peerlrax software by the Centrax Group, 2003.
"Withdrawn applications are files withdrawn by the applicant during the lending process. Closed applications are
files closed by the lender for incompleteness.
Homebuyer Assistance Programs
A common obstacle for first-time homebuyers in achieving homeownership is the
difficulty in saving adequate funds to make a downpayment. Among the top ten
lenders - six offer special mortgage programs that allow first-time homebuyers to
contribute three percent or less for downpayment.
Countrywide offers a variety of downpayment assistance programs, including
no-downpayment options and low-downpayment options. The "Zero Down
Plus/ 103% LTV" program provides an opportunity for potential homebuyers
that have little cash for their downpayment and good credit. There is no
downpayment required. Closing costs can be financed up to an additional
three percent of the loan's value.
Countrywide's low downpayment loans options include the FNMA Flex 97%
program for potential homebuyers that have little cash for their downpayment
and have good credit. There is a three percent downpayment required, but it
5 HUD Subprime and Manufactured Home Lender List 2003.
Page 3-9 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
can come from alternative sources such as gifts from immediate family '
members, grants from non-profit agencies and community assistance
programs. Closing costs can be covered by those same sources, seller '
contributions or through a slightly higher rate. There are no income/earning
restrictions. '
• Washington Mutual offers a "Low Down Payment' loan that provides first
time homebuyers and low to moderate income households the ability to
borrow up to $252,000 towards the purchase a home with as little as a three
percent downpayment. The downpayment can also come from a variety of
sources including a credit care advance, or a gift from a family member as an '
unsecured personal loan.
• Bank of America offers a number of flexible home loan programs including ,
the Neighborhood Advantage Zero Down and the Neighborhood Advantage
Credit Flex. These programs are targeted to low and moderate income
households or households that reside in a low income census tract. The ,
program offers zero and low downpayment options, and more flexible
income requirements and accommodating credit guidelines.
Bank of America also offers two unique home loans for teachers and school '
administrators such as principals, vice-principals, and librarians working in
elementary and secondary schools (K-12). School health care professionals, '
including speech therapists, counselors and nurses are also eligible.
The two programs include the Teacher Zero Down program designed for '
educators with good credit but are having trouble with a downpayment.
With no money down required, the Zero Down loan makes it possible for
these teachers to afford a home. The Teacher Flex program is designed for '
educators without an established credit history who can afford a small
downpayment. It requires flexible credit guidelines and low downpayment
options to make it easier to qualify for a home loan.
• Wells Fargo offers a No Money Down Plus Program. This program allows
borrowers to purchase a home with no money down. This fixed-rate loan
program offers up to 103 percent financing to cover the purchase price as
well as closing costs. Homebuyers who have limited savings or who wish to
keep their assets in higher-yield investments can buy a home without tying up '
their cash.
• First Franklin offers a zero-down payment program for homebuyers with high '
credit scores. The maximum loan amount is up to $500,000 for this program
and a maximum dept ratio of 50 percent is allowed for first-time homebuyers.
• Downey Savings offers a First Time Homebuyer program. This program '
allows first time borrowers to purchase a home with a three percent down
payment. Loans are available for fixed and adjustable rates. '
City of Palm Springs Page 3-10 '
1
' CR Of PALM SPRINGS ANALYSIS of Impediments to fair Housing Choice
3.2.4 City-Sponsored Home Assistance and Rehabilitation
' Programs
' Lease-Purchase Home Ownership Assistance Program
Palm Springs participates in Pacific Housing and Finance Agency's "Lease to
' Own" program. This program enables low-income buyers to acquire an
affordable unit with a very small investment. The program targets individuals
and families who have a stable income but:
' • Do not have money for a normal down payment
Can not afford to pay closing costs
' • Have credit problems
A combination of all of these concerns
' Applicants must pay one percent of the purchase price at the beginning of the
lease period. During the lease period, the home is owned by the Pacific Housing
and Finance Agency. At the end of a 39-month lease period, the Agency sells the
home to the lease-purchaser by allowing them to assume the existing mortgage.
Not additional down payments are required.
Home Repair Program
This Community Development Block Grant (CDBG) program provides financial
assistance of up to $1,500 to very low and low income homeowners for minor
home repairs. These repairs can include home maintenance, emergency repairs,
accessibility modifications and repairs to correct health and safety code violations.
Applicants must be the primary owner-occupant living in Palm Springs as their
primary residence and be in good financial standing with the City. Depending on
the availability of Redevelopment Set-Aside funds, the City has provided
rehabilitation assistance in the past to multi-family housing complexes for home
repairs and accessibility modifications.
Other Programs for Palm Springs Residents
Palm Springs Utility Tax Exemption
Lower income households are exempt from paying the City of Palm Springs
Utility Tax for electric, gas, and phone service. This exemption can be used for
individuals residing in single-family, multi-family or mobile homes.
This program offered through the Gas Company (Sempra Energy Utility) offers
assistance program for lower income households. Eligible Palm Springs residents
receive a 20 percent discount on their gas bill. In addition, applicants may
receive a 60 percent discount on the Service Establishment Charge.
8 Page 3-11 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Southern California Edison - California Alternate Rates for Energy (CARE) '
Program and Electric Rate Assistance (FERA) Program
Southern California Edison provides the California Alternate Rates for Energy ,
(CARE) program and the Family Electric Rate Assistance (FERA) program for lower
income households. The CARE program provides lower income residents a 20
percent discount on their electric bill and 60 percent discount on the Service '
Establishment Charge. The FERA program provides a discount of 30 percent or
more to lower income family households of three or more persons.
Riverside County Department of Community Action '
Utility Assistance Program '
The Riverside CountyCommunity Action utility assistance program is a one-time
assistance program that helps low and moderate-income individuals and families ,
within Riverside County with utility payment assistance. Utilities can include
electricity, gas, wood, and oil and propane. The program also offers energy
conservation education.
Weatherization Program
The Weatherization Program provides weatherization assistance and '
recommendations for low and moderate income residents in Riverside County. A
certified Energy Inspector provides a thorough building inspection to assess '
energy needs. The Inspector then designs, within the program's constraints, a
customized set of conservation measures. Riverside County Department of
Community Action will make the needed improvements, at no cost to program '
participants. Typical improvements include: sealing drafts and air leaks, adding
insulation, installing low-flow shower heads, and hot water heater tank blankets.
1
3.3 Government-Backed Home Loan '
Applications '
3.3.1 Home Purchase Loans
Government-backed financing represents an alternative to conventional
financing. Sources of government-backed financing include the Federal Housing
Administration (FHA), the Department of Veterans Affairs (VA), and the Rural '
Housing Services/Farm Service Agency (RHS/FSA).
1
City of Palm Springs Page 3-12 '
CITY Of PALM SPRINGS ANALYSIS of Impediments to fair Housing Choice
In Palm Springs only 81 households utilized government-backed financing to
achieve homeownership, compared to 4,303 households that used conventional
home purchase loans. This may be due to a lack of information regarding these
programs and that the majority of homes for sale in Palm Springs are too
expensive to meet the home sales price limits under these programs. Due to the
limited amount of loan applications, a detailed analysis of loans by income level
and race is not possible. Only one application in Palm Springs was received for
government-backed home improvement loans in 2003. However, the City does
sponsor a home improvement program for low and moderate income households
described in section 3.2.4.
�Xlirnrf . .
' r trtt • r
Disposition
r
Loans Approved 3,309 77% 60 74%
Denied 611 14% 12 15%
Closed, Withdrawn* 383 9% 9 11%
' Total 4,303 100% 81 100%
Source: HMDA data tabulated using Peertrax software by the Centrax Group,2003.
*Withdrawn applications are files withdrawn by the applicant dining the lending process. Closed applications are files
closed by the lender for incompleteness.
1
3.4 Lending by Census Tract
1 To identify potential geographic differences in mortgage lending activities, an
analysis of the HMDA data was conducted by census tract. Based on estimates of
tract median income, HMDA data categorizes the census tracts into the following
income level:
Low Income -< 50 percent of the County MFI
Moderate Income — 50-80 percent of the County MFI
Middle Income — 80-120 percent of the County MFI
Upper Income - > 120 percent of County MFI
The most current HMDA data available is for 2003 based on the 2000 census
tract boundaries. No census tract in Palm Springs was classified as a low income
tract by HMDA in 2003.
Moderate income census tracts had an overall approval rate of 65 percent.
Among all loan applications in the community, the largest proportion of home
loans originated from moderate income census tract 0446.01.
The majority of home purchase loan applications in Palm Springs originated from
middle income census tracts, which accounted for 48 percent (2,083) of all
Page 3-13 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
applications. Upper income census tracts and moderate income census tracts '
each accounted for 26 percent of all applicants. The approval rate for home
loans among all middle income tracts ranged from 67 percent to 79 percent with
an overall approval rate of 71 percent. Among all middle income tracts, tract
0100.00 accounted for the largest proportion of home loan applications. '
Within Palm Springs the overall approval rate for upper income tracts (67
percent) was slightly lower than that of moderate income census tracts (71 '
percent). Among all upper income census tracts, tract 0104.00 accounted for the
largest proportion of home loan applications.
It is also important to note that in general, middle and moderate income census ,
tracts had a larger proportion of minority households than upper income census
tracts. Moderate income census tract 0446.01 and middle income census tract ,
0448.04 had the highest proportion of minority residents (50-80 percent).
Approval rates in these tracts were not noticeably lower than other census tracts
within the same income category. ,
1
City of Palm Springs Page 3-14 '
CITY Of PALM SPRINGS ANALYSIS of Impedimonts to fair Housing Choice
Table 3-8; Comparison of Conventional Home Purchase Loan Applications by
Qostjs Tract
Tract Minority Level Income # # %of
I I Total Total Total
0103.00 10-20 Upper 234 5% 182 78% 1
' 0104.00 <10 Upper 343 8% 214 62% 53 15%
0107.00 10-20 Upper 110 3% 60 54% 21 20%
0109.00 <10 Upper 183 4% 130 71% 17 9%
0448.05 10-20 Upper 140 3% 88 63% 26 19%
0448.07 10-20 Upper 103 2% 70 68% 11 11%
Total Upper Income Tracts 1,113 26% 744 67% 142 13%
0100.00 10-20 Middle 470 11% 316 67% 92 20%
0102.00 20-50 Middle 333 8% 245 74% 32 10%
0105.00 10-20 Middle 241 6% 175 73% 36 15%
' 0106.00 <10 Middle 155 4% 111 72% 16 10%
0446.02 20-50 Middle 258 6% 189 73% 26 10%
044604 20-50 Middle 217 5% 152 70% 26 12%
' 0448.04 50-60 Middle 63 2% 44 70% 10 16%
0448.08 20-50 Middle 121 3% 95 79% 17 14%
0449.04 20-50 Middle 204 5% 148 73% 26 13%
Total Middle Income Tracts 2,083 48% 1,488 71% 285 14%
0101.00 20-50 Moderate 259 6% 187 72% 28 11
0445.03 20-50 Moderate 118 3% 53 45% 36 30%
' 0446.01 50-80 Moderate 489 11% 312 64% 88 18%
0447.01 20-50 Moderate 21 1% 13 62% 4 19%
0448.06 20-50 Moderate 107 2% 72 67% 16 15%
Total Moderate Income Tracts 1,107 26% 716 65% 184 17%
Total Tracts 4,303 100% 2,948* 69%* 611 14%
Source: HMDA data tabulated using Peertrax software by the Centrax Group,2003.
Note.That the approval rate by census tract does not include the 361 loans that were'approved but not accepted';therefore,the
total number of approved loans is lower than the Citywide approval rate of 77 percent
Page 3-15 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
3.4 Predatory Lending and Housing Fraud '
Predatory lending involves abusive loan practices usually targeting minority ,
homeowners or those with less-than-perfect credit histories. These predatory
practices include high fees, hidden costs, unnecessary insurance requirements,
and larger repayments due in later years. One of the most common predatory
practices is placing borrowers into higher interest rate loans than called for by
their credit status. Although the borrowers may be eligible for a loan in the '
"prime" market, they are directed into more expensive and higher fee loans in
the "subprime" market.
3.4.1 Examples of Predatory Lending '
As defined above, predatory lending includes a wide variety of improper '
practices. In fact, over 39 different types of predatory lending have been
documented involving all aspects of the lending process, from origination to the '
collection of the loan. These practices typically target and steer low-income,
minorities, or the elderly to high-rate lenders.
In particular, HUD has raised concern about two categories of improper or '
predatory lending practices. The first type, which generally is easier to identify,
involves blatant fraud or acts of deception such as forging signatures or obtaining '
signatures on blank documents, falsifying loan applicant income or appraised
value of the property, or employing bait and switch tactics.
A second type, which is often more difficult to identify, involves various 1
manipulative practices that cause borrowers to enter into abusive loans.
Common abusive loans include: '
• Equity Stripping: This type of practice occurs when a loan is based on the
equity of a home rather than the borrower's ability to repay. This type of ,
loan often has high fees, prepayment penalties, and different terms and
conditions than a regular home loan.
Packing: This involves the practice of adding credit insurance or other extras '
into the loan. The supplements to the loan are often very profitable to the
lenders and are typically financed in a single up-front or balloon payment. '
• Flipping: This practice is a form of equity stripping and happens when a
lender convinces a borrower to repeatedly refinance a loan within a short
period of time. The lender typically charges high points and fees each time as
part of the mortgage.
1
City of Palm Springs Page 3-16 '
1
' CITY Of PALM SPRINGS ANALYSIS of Impediments to fair Housing Choico
Based on input from lender at the Fair Housing Workshop', predatory lending is
not identified as an issue in Palm Springs. However, given the heightened
concern regarding predatory lending activities in Southern California and
throughout the State, residents should be alerted and educated on the issue of
' predatory lending.
3.4.2 Protections against Predatory Lending
Federal Legislative Changes and Actions
' Predatory lending is a growing fair housing issue. However, no law currently
administered by the Federal Reserve Board contains a statutory or regulatory
definition of predatory lending. Predatory lenders who discriminate receive some
scrutiny under the Fair Housing Act of 1968, which requires equal treatment in
terms and conditions of housing opportunities and credit regardless of race,
religion, color, national origin, family status, or disability. This applies to loan
originators as well as the secondary market. The Equal Credit Opportunity Act of
1972 requires equal treatment in loan terms and availability of credit for all of the
above protected categories, as well as age, sex, and marital status. Lenders that
engage in predatory lending would violate these acts, if they target African
American, Hispanic or elderly households to buy higher priced and unnecessary
loan products; treat loans for protected classes differently than those of
comparably credit-worthy applicants; or have policies or practices that have a
disproportionate effect on the protected classes.
iIn addition, the Truth in Lending Act (TILA) promotes the informed use of
consumer credit, through disclosure of loan costs and terms. To comply with this
act, lenders must disclose information about payment schedules, prepayment
penalties, and the total cost of credit. In 1994, Congress amended the TILA in
response to abusive lending practices. The new legislation, referred to as the
' Home Ownership and Equity Protection Act (I-IOEPA), provides new information
to protect borrowers. HOEPA identifies a specific class of high-cost mortgage
loans that may put consumers at risk of losing their homes. HOEPA requires
disclosure of information if the annual percentage rate (APR) is ten percentage
points above the prime or if fees are above eight percent of the loan amount.
HOEPA also prohibits balloon payments for short-term loans. In addition, for
covered loans, HOEPA provides a warning if the lender has a lien on the
borrower's home and the borrower could lose the home if default on the loan
payment.
Furthermore, HUD, in conjunction with the U.S. Department of Treasury, formed
the Joint-Task Force on Predatory Lending in 2000. The Task Force conducted
an in-depth investigation of the problem and issued recommendations to
Congress regarding improving consumer literacy and disclosure, reforming sales
6 Fair Housing Workshop. October 20, 2004
Page 3-17 City of Palm Springs
CITY Of PRIM SPRINGS Analysis of Impediments to fair Housing Choice
practices, improving market structure, and restricting abusive terms and '
conditions. ,
State of California AB 489 (as amended by AB 344)
Following North Carolina's lead, in September 2001, California became the
second state to pass a law banning predatory lending. The law enables state
regulators and the Attorney General to attempt to prevent "predatory" lending '
practices by authorizing the state to enforce and levy penalties against licensees
that do not comply with the provisions of this bill. The law provides protections
against predatory lending to consumers across the state as summarized below: ,
Financing of Credit Insurance: On all home loans, the bill prohibits the
financing of single premium credit insurance policies into the loans. Credit
insurance policies on home loans may still be sold as long as they are paid off
monthly like other insurance.
• Covered loans: The legislation's other protections apply to home loans with i
very high fees and rates when the total loan amount is $250,000 or below.
For borrowers in these higher-cost home loans, the bill extends additional
consumer protections against some of the most abusive practices.
Financing of Points and Fees: The bill prohibits the financing of lender and '
broker fees beyond 6 percent of the original loan amount, minus the fees.
Steering: The bill prohibits borrowers in covered loans from being steered or
counseled into loans with rates above what is appropriate for their credit risk,
according to the lender's classifications.
• Ability to Repay: The bill prohibits lenders from making a covered loan, '
knowing that the borrower cannot repay.
Home Improvement Contracts: The bill prevents home improvement '
contractors from getting paid directly out of the proceeds of covered loans.
The loan proceeds must go directly to the borrower, or otherwise must be
paid out to an escrow account or to the borrower and contractor jointly only
in increments with written certification that the work has been finished.
Fiduciary Responsibility of Brokers: The legislation establishes that any
mortgage broker providing a covered loan has a responsibility to protect the
borrower's financial interests, regardless of any of the broker's other financial
relationships (including their status as an agent of the lender), and that any
violation of those duties constitutes a violation of the law.
• Loan Flipping: The bill prohibits covered loans where there is no clear '
benefit to the borrower, taking into account the costs of the loans, but also
the borrower's reasons for seeking it.
City of Palm Springs Page 3-18
i
CITY Of PALM SPRINGS ANALYSIS of Impediments to fair Housing Choice
1
i Prepayment Penalties: When a prepayment penalty is included in a loan,
the borrower must pay a penalty to refinance out of that loan into another
loan within a certain time period. In the prime market, prepayment penalties
' are generally accompanied by a slightly lower interest rate on the loan. But in
the subprime market, these penalties are commonly used to trap borrowers at
higher interest rates than they should be paying or force them to pay an extra
i fee to receive a loan with a more reasonable interest rate. The bill sets
restrictions on some of the worst abuses - limiting such penalties on covered
loans to no longer than three years and requiring the originator to offer a
i choice of a loan without a prepayment penalty at least three days before
closing.
• Balloon Payments: No balloon payments are allowed in the first five years of
the loan, as in the federal Home Ownership Equity Protection Act (HOFPA).
i • Negative Amortization: The principal amounts of second mortgages may not
increase over the course of a covered loan.
' ■ Prepaid Payments: Prepaid installments may not be financed into the loan,
resulting in extra interest charges.
• Call Provisions: Call provisions, which permit the lender to call in the entire
balance of the loan immediately, may not be included in covered loans.
' Interest Rate Changes upon Default: The interest rate may not increase as a
result of the borrower defaulting.
i Encouragement of Default: A lender or broker may not encourage a
consumer to default on the consumer's existing home loan when soliciting to
refinance the consumer into a new covered loan.
i3.4.3 Foreclosures
Foreclosure occurs when homeowners fall behind on one or more scheduled
mortgage payments. The foreclosure process can be halted if the homeowner is
able to bring their mortgage payments current or by selling their home and paying
the mortgage off. However, if regular payments cannot be resumed or the debt
cannot be resolved, the lender can legally use the foreclosure process to repossess
(take over) the home. When this happens, the homeowner must move out of the
property. If the home is worth less than the total amount owed on the mortgage
loan, a deficiency judgment could be pursued. If that happens, the homeowner
would lose their home and also would owe the home lender an additional
amount.
A concern was raised in the mid-1990s that many lower income households,
particularly minority households, were sold homes that they could not afford,
Page 3-19 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
constituting predatory lending practice. In the mid-1990s the number of t
foreclosed homes in California hit an all time high. This was due to a long, and
severe economic recession and relatively poor housing market. Southern
California and the Inland Empire in particular, were characterized with a high
percentage of foreclosed homes as many homeowners were unable to keep up
with payments. The high foreclosure rate in the Inland Empire, especially among
FHA homes, prompted HUD to initiate the housing fraud investigations in
Southern California. '
However, since 1996, foreclosure rates in California have steadily declined, with
2001 achieving the lowest foreclosure rate since 1992.' While home defaults '
have declined statewide and in Southern California, foreclosures rates have
increased in Northern California. While default activities in Southern California
fell 8.5 percent from 2000 to 2001, default activities in Northern California, and
the Bay area in particular, have increased. Foreclosures among homes in the Bay
Area in 2001 increased by 23 percent. This was the largest gain in the State.
Furthermore, according to Dataquick, a real estate activity monitoring company, ,
80 percent of homeowners who found themselves in loan default in 2001 were
able to stop the foreclosure process by bringing their mortgage payments current ,
or by selling their home and paying the mortgage off. In the mid-1990s, only half
of all distressed homeowners were able to do so.
According to Dataquick, 20 homes in Palm Springs entered into foreclosure from
January 2003 to June 2004 while 1,145 homes in Riverside County as a whole
were foreclosed. The number of homes that defaulted in Palm Springs was less '
than the nearby communities of Cathedral City (29 homes), Desert Hot Springs
(23 homes) and Palm Desert (27).' Based on the small number of foreclosed
units in Palm Springs, less than two percent of all foreclosed homes in Riverside
County, home foreclosures do not appear to be a significant issue in Palm
Springs.
i
1
' California Foreclosure Rates Down. Dataquick News. February 2003.
8 Dataquick.October, 2004
City of Palm Springs, Page 3-20 '
' r 7A4eN x,
Chapter 4
V us
Current Fair <1 Fp r`Za.FO
'g X�t
Housing Profile
' This chapter provides an overview of the institutional structure of the housing
industry in governing fair housing practices of its members. Fair housing services
for renters and homebuyers are available to Palm Springs residents and recent fair
housing complaints, violations, and suits to determine trends in the City are also
assessed.
' 4.1 Fair Housing Practices in the Ownership
Housing Market
' 4.1.1 Homeownership Process
One of the main challenges in owning a home versus renting a home is the
process. Buying a house takes considerably more time and effort than finding a
' home to rent. The major legal and financial implications surrounding the process
also intimidate potential buyers. Typically, people are overwhelmed by the
unique terminology, number of steps required, and financial considerations
involved. The process is costly and fair housing issues may surface at anytime
during this process.
Advertising
The first thing a potential buyer is likely to do when they consider buying a home
is search advertisements either in magazines, newspapers, or the Internet to get a
feel for what the market offers. Language in advertising has recently become an
issue within the realm of real estate. Advertisements cannot include
discriminatory references such as the use of words describing:
Current or potential residents
I' 0 Neighbors or the neighborhood in racial or ethnic terms
Page 4-1 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
• Adults preferred
• Perfect for empty nesters
• Conveniently located by a Catholic Church
• Ideal for married couples without kids
Even the use of models in ads has been questioned, based on the idea that it
appears to appeal to a certain race. Additionally, selecting media or locations for
advertising that deny information on listings to certain segments of the housing
market may also be considered discriminatory. Even if an agent does not intend
to discriminate in an ad, it would still be considered a violation to suggest to a
reader whether or not a protected class is preferred. Recent litigation has also set ,
precedence for violations in advertisements that hold publishers, newspapers,
Multiple Listing Services, real estate agents, and brokers accountable for
discriminatory ads. As a reminder to choose words carefully, the Multiple Listing
Service (MLS) now prompts a fair housing message when a new listing is being
added.
Lending '
Initially, buyers must find a lender that will qualify them for a loan. This part of '
the process entails an application, credit check, ability to repay, amount eligible
for, choosing the type and terms of the loan, etc. Applicants are requested to
provide a lot of sensitive information including their gender, ethnicity, income '
level, age, and familial status. Most of this information is used for reporting
purposes required of lenders by the Community Reinvestment Act (CRA) and the
Home Mortgage Disclosure Act (HMDA); however it does not guarantee that '
individual loan officers or underwriters will not misuse the information.
A report on mortgage lending discrimination by the Urban Land Institute
illustrates four basic stages in which discrimination can occur:
advertising/outreach, pre-application inquiries, loan approval/denial and terms/
conditions, and loan administration. A number of different individuals take part ,
in the various stages of this process and any of them may potentially discriminate.
Real Estate Agents '
Finding a realtor is normally the next step, which can be done by looking in
newspapers, searching the Internet, and primarily through referrals. The agent
will find the home that fits their needs, desires and budget based on the amount
they are qualified for by the lending institution.
Realtors may act as agents of ciscrimination. Some, unintentionally or possibly
intentionally, may steer the potential buyer to particular neighborhoods by
encouraging the buyer to look into certain areas; others may simply choose to
show the buyer all choices available.
City of Palm Springs Page 4-2
' CO Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
However, the California Association of Realtors (CAR) has included language on
' many of their forms disclosing fair housing laws to those involved. Many Realtor
Associations also host fair housing trainings/ seminars to educate their members
on the provisions and liabilities of Fair Housing Law. The Equal Opportunity
' Housing Symbol is also located on all forms as a reminder.
Sellers
' A seller may not want to sell his/her house to certain purchasers or may want to
accept offers only from a preferred group. The Residential Listing Agreement and
' Seller's Advisory forms that sellers must sign discloses their understanding of Fair
Housing Law and practice of nondiscrimination.
' Covenants, Conditions, and Restrictions (CC&Rs)
In the past, Covenants, Conditions, and Restrictions (CC&Rs) were used to
exclude certain groups such as minorities from equal access to housing in a
community. Today, the California Department of Real Estate reviews CC&Rs for
all subdivisions of five or more lots, or condominiums of five or more units. This
' review is authorized by the Subdivided Lands Act and mandated by the Business
Professions Code, Section 11000. The review includes a wide range of issues,
including compliance with fair housing law.
The review must be completed and approved before the Department of Real
Estate will issue a final subdivision public report. This report is required before a
' real estate broker can sell the units, and each prospective buyer must be issued a
copy of the report. If the CC&Rs are not approved, the Department of Real
Estate will issue a "deficiency notice", requiring the CC&R be revised.
Communities with old subdivisions or condominium developments may still
contain CC&Rs that do not comply with the fair housing law. However,
provisions in the CC&Rs that violate the fair housing law are not enforceable.
Insurance
Insurance agents are provided with underwriting guidelines for the companies
they work for to determine whether or not a company will sell insurance to a
particular applicant. Currently, underwriting guidelines are not public
information; however, consumers have begun to seek access to these
underwriting guidelines to monitor discriminatory policies. Some states are being
more responsive than others to this demand and have recently required
companies file their underwriting guidelines with the state department of
insurance, which would then make the information public. Texas is one state
that has mandated this reporting and its office has made some significant findings
regarding discriminatory insurance underwriting guidelines.
Page 4-3 1 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Many insurance companies have applied strict guidelines, such as not insuring '
older homes. This type of guidelines disproportionately affects lower income and
minority families that can only afford to buy in older neighborhoods. The '
California Department of Insurance (CDI) survey found that less than one percent
of the homeowners insurance available in California is currently offered free from
tight restrictions. CDI has also found that many urban areas are underserved by ,
insurance agencies.
The California Organized Investment Network (COIN) is a collaboration of the
California Department of Insurance, the insurance industry, community economic
development organizations, and community advocates. This collaboration was '
formed in 1996 at the request of the insurance industry as an alternative to state
legislation that would have required insurance companies to invest in
underserved communities, similar to the federal Community Reinvestment Act '
(CPA) that applies to the banking industry. COIN is a voluntary program that
facilitates insurance industry investments, which provide profitable returns to
investors and economic/social benefits to underserved communities. ,
The California Fair Access to Insurance Requirements (FAIR) Plan was created by
the Legislature in 1968 after the brush fires and riots of the 1960's made it '
difficult for some people to purchase fire insurance due to hazards beyond their
control. The FAIR Plan is designed to make property insurance more readily
available to people who have difficulty obtaining it from private insurers because '
their property is considered "high risk." However, since the 1994 Northridge
earthquakes and El Nino storms, many homeowners also face difficulty with
acquiring earthquake and fire insurance. ,
4.1.2 Realtor Associations
On December 6, 1996, the U.S. Department of Housing and Urban '
Development (FIUD) and the National Association of Realtors (NAR) entered into
a Fair Housing Partnership. The partnership requires HUD and NAR to develop a
Model Affirmative Fair Housing Action Plan for use by members of NAR to satisfy
HUD's Affirmative Fair Housing Marketing regulations.
The NAR has developed a Fair Housing Program to provide resources and
guidance to Realtors in ensuring equal professional services for all people. The
term "Realtor" identifies a licensed professional in real estate who is a member of '
the NAR. Not all licensed real estate brokers and salespersons are members of
the NAR. However, for those Realtors who are members of NAR, they must
pledge to conduct business in keeping with the spirit and letter of the Code of '
Ethics. Specifically, Article 10 of the Code of Ethics obligates Realtors to
affirmatively further fair housing as follows:
Realtors shall not deny equal professional services to any person for t
reasons of race, color, religion, sex, handicap, familial status, or national
origin. Realtors shall not be parties to any plan or agreement to
City of Palm Springs Page 4-4
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' discriminate against a person or persons on the basis of race, color,
' religion, sex, handicap, familial status, or national origin. (Amended 1/90)
Realtors, in their real estate employment practices, shall not discriminate
' against any person or persons on the basis of race, color, religion, sex,
handicap, familial status, or national origin. (Amended 1/00)
' Article 10 is a firm statement of support for equal opportunity in housing. In
accordance with Article 10, Code of Ethics, each Realtor is required to sign the
following pledge per the HUD-NAR agreement.
iI agree to:
Provide equal professional service without regard to race, color, religion, sex,
handicap, familial status, or national origin of any prospective client, customer,
or of the residents of any community.
t • Keep informed about fair housing law and practices, improving my clients'and
customers'opportunities and my business.
' • Develop advertising that indicates that everyone is welcome and no one is
excluded, expanding my client's and customer's opportunities to see, buy, or
tlease property.
Inform my clients and customers about their rights and responsibilities under
the fair housing laws by providing brochures and other information.
Document my efforts to provide professional service, which will assist me in
becoming a more responsive and successful Realtor.
Refuse to tolerate non-compliance.
Learn about those who are different from me, and celebrate those differences.
Take a positive approach to fair housing practices and aspire to follow the
spirit as well as the letter of the law.
Develop and implement fair housing practices for my firm to carry out the
spirit of this declaration.
Diversity Certification
The NAR has created a diversity certification, "At
Home with Diversity: One America" to be granted I;..
to licensed real estate professionals who meet A"O` ' '"""`T"DIV"''x
eligibility requirements and complete the NAR "At
Home with Diversity" course. The certification will signal to customers that the
Page 4-5 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
real estate professional has been trained on working with diversity in today's real '
estate markets. The coursework provides valuable business planning tools to
assist real estate professionals in reaching out and marketing to a diverse housing '
market. The NAR course focuses on diversity awareness, building cross-cultural
skills, and developing a business diversity plan. In July 1999, the NAR Diversity
Program received the HUD "Best Practices" award. '
California Department of Real Estate (DRE) '
The California Department of Real Estate (DRE) is the licensing authority for real
estate brokers and salespersons. As noted earlier, not all licensed brokers and '
salespersons are members of the National or California Association of Realtors.
DRE has adopted education requirements that include courses in ethics and in '
fair housing. In order to renew a real estate license, each licensee is required to
complete 45 hours of continuing education courses, including three hours in each
of the four mandated areas: agency, ethics, trust fund, and fair housing. The fair '
housing course contains information that will enable an agent to identify and
avoid any discriminatory practices when providing real estate services to clients.
California Association of Realtors (CAR) '
CAR has recently created the position, Equal Opportunity/Cultural Diversity ,
Coordinator. CAR holds three meetings per year, and these meetings include
sessions on fair housing issues. Current outreach efforts in the Southern California
area are directed to underserved communities and state-licensed brokers and '
sales persons who are not members of the CAR.
Inland Valleys Association of Realtors '
The Inland Valleys Association of Realtors serves realtors in Palm Springs as part of
the Inland Empire. The Association covers Riverside and San Bernardino '
Counties, including 19 cities and currently has over 4,000 members. While the
Association does not provide any fair housing related courses or workshops, the
Association does have an Equal Opportunities Committee that oversees fair '
housing issues.'
California Desert Association of Realtors ,
The California Desert Association of Realtors serves realtors and affiliated industry
professionals throughout the Coachella Valley. Formally the Association was '
known as the Palm Desert Rancho Mirage Indian Wells Board of Realtors. The
Association has grown to serve over 3,000 realtors and allied industry t
professionals throughout the valley from Palm Springs to Coachella. The
Association provides fair housing course to members which is part of the
' Inland Valley Association of Realtors—Veronica Rodriguez,Assistant CEO. November 2004. '
City of Palm Springs Page 4-6 '
1
CITY Of PALM SPRINGS Analysis of Impedimonts to fair Housing Choice
' continuing education requirement for real estate license renewal. This course is
offered approximately once every quarter. The Association also has a Housing
Opportunities Committee and a Local Government Relations Committee that
oversees fair housing issues for the organization.'
' Palm Springs Association of Realtors
' The Palm Springs Association of Realtors has been active in Palm Springs since
1929 and currently serves over 1,200 members. The Association continually
offers workshops to realtors in conjunction with County of Riverside Fair Housing
' Council and also reports any unfair housing practices to the Fair Housing Council
of Riverside County.'
' 4.2 Fair Housing Practices in the Rental
Housing Market
' 4.2.1 The Apartment Rental Process
' While the process of renting an apartment may be less expensive and
burdensome up front than the home buying process, it may still be just as time-
consuming and potential renters may face discrimination during various stages of
' the rental process.
Advertising
' Like finding a home to purchase, the main sources of information are the
classified advertisements in local newspapers, word of mouth, signs, apartment
guides, the Internet, and apartment brokers. The same types of discriminatory
language previously described under the Homeownership Process (Section 4.1.1)
may be used by landlords or apartment managers to exclude "undesirable
' elements."
1
1
' 2 Desert Association of Realtors-Stacey Spring, Director of Operations. November 2004.
' Palm Springs Association of Realtors-Sam Schenld, Executive Director. November 2004
' Page 4-7 City of Palm Springs
1
CITY Of PALM SPHINGS Analysis of Impediments to fair Housing Choice
Viewing the Unit '
Viewing the unit is the most obvious place where the potential renters may t
encounter discrimination because landlords or managers may discriminate based
on race or disability, or judge on appearance whether a potential renter is reliable '
or may violate any of the rules. For example, if a student is wearing a T-shirt with
a heavy metal band on the front design, a landlord may be suspect of the
potential for loud music to be played. '
Credit Check
Landlords may ask the potential renters to provide credit references, lists of '
previous addresses and landlords, and employment history/salary. The criteria for
tenant selection, if any, are typically not known to those seeking to rent. Many ,
landlords often use credit history as an excuse when trying to exclude certain
groups.
The Lease '
Most apartments are rented under either a lease agreement or a month-to-month '
rental agreement. A lease is good from a tenant's point of view for two reasons:
the tenant is assured the right to live there for a specific period of time and the
tenant has an established rent during that period. Most other provisions of a ,
lease protect the landlord. A lease or rental agreement typically includes the
rental rate, required deposit, length of occupancy, apartment rules, and
termination requirements. '
In a tight housing market where the landlord can financially afford to choose
tenants tends to offer shorter lease terms. In this case, a landlord may simply ask
the "not-so-desirable" tenant to leave with a 30-day or 60-day Notice to Vacate.
Shorter lease terms also allow the landlord to raise rent more frequently. In
addition, a landlord who wants to terminate (end) a month-to-month tenancy can '
do so by properly serving a written 30-day or 60-day notice on the tenant.
The type and length of eviction notice depends on whether the eviction is for "at- ,
fault" reasons or "no-fault" reasons. Generally, at-fault evictions are issued for
specific violations committed by the tenant. In contrast, "no-fault" evictions
typically refer to actions initiated by the landlord where the tenant is not at fault. '
The following text summarizes noticing periods and reasons for eviction allowed
under the California Codes.
• Three-Day Notice. State law allows a landlord to terminate a tenancy '
after a three-day notice for at-fault reasons, where the tenant is at-fault.
Under this provision, the landlord may issue a three-day notice for failure t
to pay rent, violation of a rental or lease agreement, unlawful use of
property or property damages, or committing a nuisance. These evictions
apply to conditions where the tenant is at fault. '
City of Palm Springs Page 4-8 '
CITY Of PRIM SPHINGS Analysis of Impediments to fair Housing Choice
30-day Notice. Pursuant to California Civil Code, any month-to-month
tenancy can be terminated by a 30-day written notice by either the
tenant or landlord (if the tenant has occupied the unit for less than one
year) or the eviction is for the owner occupancy for a condominium.
Lease agreements cannot typically be terminated with a 30-day notice.
• 60-day Notice. State law has additional protections for long-standing
good tenants. If the tenant has occupied the unit for more than one year
and has not violated any provisions under the 3-day notice, State law was
1 amended effective January 1, 2002 to require a 60-day notice for evicting
tenants.
Typically, the lease or rental agreement is standard for all units within the same
building. However, the enforcement of the rules contained in the lease or
agreement may not be standard for all tenants. A landlord may choose strict
enforcement of the rules for certain tenants based on arbitrary factors, such as
race, presence of children, or disability. Since the recent escalation of housing
prices throughout California, complaints regarding tenant harassment through
strict enforcement of lease agreements as a means of evicting tenants have
increased.
A security deposit is also typically required. To deter "less-than-desirable"
tenants, a landlord may ask for a deposit higher than for others. Tenants may also
face differential treatment when vacating the units. The landlord may choose to
return a smaller portion of the security deposit to some tenants, claiming
excessive wear and tear.
® 4.2.2 Apartment Associations
Apartment Association —Greater Inland Empire (AAGIE)
Located in Rancho Cucamonga, the Apartment Association of the Greater Inland
Empire serves communities within San Bernardino, Riverside County and the
Coachella Valley. The Association publishes a monthly newsletter, "AAGIE' that
provides information to apartment owners and managers. The Association
provides a number of services including forms, referrals to vendors, educational
courses and workshops including the California Certified Residential Manager
(CCRM) course.
Designed by the California Apartment Association, the California Certified
Residential Manager (CCRM) provides candidates training in the essentials of
rental housing management. The classes provide apartment owners, managers,
and other interested individuals with information on a variety of topics, including
fair housing and ethics. The Certificate in Residential Management course topics
include:
Page 4-9 City of Palm Springs
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
Preparing the Property for Market
Professional Leasing Skills & the Application Process
• Fair Housing: Its The Law
Ethics And Our Industry
Maintenance Management: Maintaining a Property
AAGIE offers CCRM courses throughout the year with members receiving a '
discounted fee. Free legal services are also provided to members and new
members receive an information packet regarding landlord responsibilities and
other information related to apartment ownership and management including fair '
housing.
4.2.3 Housing Authority of the County of Riverside '
The Housing Authority of the County of Riverside oversees the Section 8 Rental
Assistance Program in Palm Springs. There is no public housing located in the '
City. New and relocating Section 8 recipients receive a briefing package that
includes information on fair housing laws, rights and responsibilities as well as
contact information if a tenant has a complaint. If a tenant has a fair housing ,
issue, the Housing Authority will get involved to assist in resolving the issue.
However in most cases the individual is referred to the Fair Housing Council of
Riverside County. The Fair Housing Council also provides staff training on fair '
housing issue to Housing Authority staff approximately once a year.'
4.3 Fair Housing Services '
Typically, fair housing services for renters and homebuyers include the '
investigation and resolution of housing discrimination complaints, discrimination
auditing/testing, and education and outreach including the dissemination of fair
housing information such as written material, workshops, and seminars. '
Landlord/tenant counseling is another fair housing service which involves
informing landlords and tenants of their rights and responsibilities under the
California Civil Code and mediating conflicts between tenants and landlords. '
This section provides an overview of current fair housing services in Palms
Springs. '
4.3.1 The Fair Housing Council of Riverside County
Palm Springs contracts with the Fair Housing Council of Riverside County to t
provide fair housing and landlord/tenant services for residents. The Fair Housing
Council of Riverside County operates six offices within Riverside County with a '
' Personal communication with Barbara Simmons. Housing Specialist II. Housing Authority of Riverside County.
October 2004.
City of Palm Springs Page 4-10 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
flocal satellite office in Palm Springs. Services provided by,the Fair Housing
' Council of Riverside County services include anti-discrimination investigations,
landlord/tenant mediation services, training and technical assistance, workshops
and seminars, and housing discrimination audits and tests.
' Training, Education, and Outreach
' As part of its services to the City, the Fair Housing Council of Riverside County
has been involved in outreach activities in Palm Springs including the provision of
informational materials, brochures, newsletters, and referrals related to fair
' housing. In addition, the Fair Housing Council of Riverside County
representatives recently' attended or hosted the following events:
' April Fair Housing Month Celebration- Luncheon at Palm Mountain Resort
Manned a booth at the Palm Springs Business Expo
• Fair housing Presentation to the Palm Springs Board of Realtors
Hyder and Company Management Conference
Attended two networking meetings at the Nightingale Manor and the
Desert Aids Project in Palm Springs. Both meetings were sponsored by the
Riverside County Department of Mental Health.
The Fair Housing Council of Riverside County distributed copies of the agency's
' brochure and information on fair housing to the Palm Springs City Hall, Palm
Springs Mizell Senior Center, Palm Springs Police Department, Chamber of
Commerce, Palm Springs Board of Realtors, Palm Springs Library, and Palm
Springs Bureau of Tourism.
The Fair Housing Council of Riverside County also conducted a T.V. interview at
' I(VER (Palm Springs Univision), and public service announcements are provided
regularly to KEZN 103.1 that broadcasts to the Coachella Valley. In addition, a
public service announcement video in English and Spanish was created and
' submitted to Time Warner Cable.
4.3.2 Fair Housing Complaints, Violations, and Suits
' Fair Housing Complaints Violations and Suits
t The Fair Housing Council of Riverside County is the primary agency that handles
fair housing complaints filed by Palm Springs residents. The following discussion
summarizes results of fair housing services and testing conducted in Palm Springs
t by the Fair Housing Council and evaluates the native and extent of fair housing
and landlord/tenant complaints in the City. Table 4-1, displays the number and
type of housing inquires and complaints, as well as the findings and outcomes of
the cases from FY 2000/2001 to FY 2003/04.
' a Activities that occurred in fiscal year 2003/04. Source: Fair Housing Council of Riverside County.
' Page 4-11 City of Palm Springs
1
CITY Of PRIM SPRINGS Analysis of Impediments to fair Housing Choice
A total of 168 fair housing complaints were filed between FY 2000/01 to FY '
2002/2003. Discrimination complaints generally fluctuated between 40 to 45
complaints per year. During the past four years, issues related to disability status ,
continued to comprise the largest proportion of all complaints (49 cases in the
past four years). According the Fair Housing Council of Riverside County, this '
trend is due to several factors: the community's large senior population, a
disability related complaint can comprise large spectrum of issues (including
physical, mental and HIV/AIDS related factors), and the fact that many disabled ,
residents are becoming more aware of their fair rights and responsibilities.
Issues concerning either the client's race also accounted for a significant number '
of complaints (35 cases). At the Fair Housing Workshop held on October 20,
2004, several residents commented that they had experienced housing
discrimination based on race and religion at Pacific Palms Apartments. '
Consistent with the City's demographics, the vast majority of all complaints within
Palm Springs over the past four years were made by White residents (67 percent) '
followed by Hispanic residents (19 percent) and African American residents (10
percent). Asian and Native American residents accounted for less than one
percent of all complaints, while residents classified as 'other' accounted for two t
percent of all cases. However, it appears that the proportion of complaints
originating from African American residents is slightly over-represented in that,
the percentage of all complaints filed by African American residents represent 10 '
percent and whereas, African American residents represent four percent of the
City's population.
Fair housing complaints also affected female-headed households to a higher !
degree than male-headed households. Female-headed households may face a
greater degree of impediments to fair housing due to their lower income levels ,
and childcare needs. In addition, the vast majority of fair housing complaints in
the City originated from low income households.
According to Fair Housing Council of Riverside County, of all the cases '
investigated by the Council in the past four years, the majority were forwarded to
the California Department of Fair Employment and Housing or were successfully '
resolved through education.
1
City of Palm Springs, Page 4-12 '
CITY Of PALM SPHINGS Analysis of Impodimonts to fair Housing NO
DispositionsTable 4-1: Discrimination Cases, Finding and
_ III I II I II I II I-
Fair Housing Services
Discrimination Category
Familial Status 9 _ 3 5 5
Sex 4 7 3 2
® Disability 13 11 15 10
National Origin 3 2 0 0
Race 4 12 12 7
'— Religion 1 0 0 1
Rumford/Unruh 11 6 8 12
Total 45 41 43 37
Race/Ethnicity
African American 4 1 5 7
Latino 9 10 9 4
Asian 0 0 0 1
Native American 0 1 0 0
I� White 32 28 28 23
Imo• Other 0 1 1 2
Income
Very Low low N/A** N/A 00 38 42 27
Moderate 13 2 2 6
Head of Household*
III■■■ Male 16 16 "18 17
Female 29 25 22 20
Senior 5 2 2 4
Issue Category
Rent Own 33 33 40 I 20
Other 2 1 0 9
Outcome
HUD 0 0 0 1
Inconclusive 2 0 0 0
Pending/forwarded to DFEH 36 18 27 27
Education 7 23 16 9
Total 45 41 43 37
Source: Fair Housing Council of Riverside County, 2004
*Information for 3 households is not available. Therefore, the total number of female and male headed households
does not add up to 168.
** The Fair Housing Council of Riverside County did not tract very low income clients in fiscal years 2000, 2001 and
2002.
Page 4-13 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Examples of Fair Housing Complaints —
The following discussion provides examples of recent fair housing complaints in
Palm Springs handled by the Fair Housing Council of Riverside County and the
options available for their resolution.'
• Income Source-Rental Housing
Case Description: A discrimination complaint was reported to the Fair
Housing Council of Riverside by a non-Hispanic White female. The
complainant alleges discrimination based on her source of income (State —
Disability Assistance). The complainant also stated she was harassed by
management as well as threatened. The complaint also feels that her
privacy has been violated due to the management asking other Lenants '
about her source of income.
Action: The Fair Housing Council of Riverside advised the complainant of '
her options and she has decided to file the case with the Department of
Fair Employment and Housing.
• Marital Status- Home Purchase ,
Case Description: The Fair Housing Council received a call from a single '
male alleging that he and two single friends attempted to purchase a
condo in a gated community and were discriminated on the basis of
marital status. The three friends completed an application, were pre- '
qualified and presented the credit application to the Realtor for the
Home_ Owners Association.
After reviewing the credit application, the complainant was told by the '
Realtor that they could not purchase the condo because the Association's
by-laws indicated that they can only sell to families and not to three ,
individuals. However, they were told that if they form a partnership they
may qualify to purchase the condo.
Action: The complainant was informed of his fair housing rights and '
options. The complainant chose to file a discrimination complaint with '
the California Department of Fair Employment and Housing.
• Disability-Rental Housing '
Case Description: The Fair Housing Council of Riverside County
received a call from a disabled white male, alleging discrimination based '
on disability. The complainant received a 60-day notice to move. The
6 Fair Housing Council of Riverside County.2004 '
City of, Palm Springs Page 4-14 '
' CITY Of PALM SPHINGS Analysis of Impediments to fair Housing Choice
reason stated was that he was in violation of a rule that prohibits uses of
' electrical carts in the courtyard, pool, or spa areas. The complainant was
given an alternate route to use, which is very narrow for a wheelchair.
' The complainant requested the cancellation of his 60-day notice and a
reasonable accommodation for the usages of his electrical wheelchair
based on his disability.
' Action: A fair housing counselor conducted a site visit to gather further
documentation. The complainant was informed of coverage under fair
' housing law and was briefed on his options. The complainant has filed a
discrimination complaint with the California Department of Fair Housing
and Employment.
4.3.3 Tenant/Landlord Disputes
In addition to fair housing complaints, Palm Springs residents receive assistance
from the Fair Housing Council of Riverside County for tenant/landlord dispute
resolution services (Table 4-2). Between FY 2000/01 and FY 2003/04, the Fair
' Housing Council of Riverside County handled 3,899 complaints or requests for
assistance. On average, the number of complaints fluctuates between 800 and
1,100 complaints each year. The majority of complaints in Palm Springs over the
past four years are related to evictions, repairs, and disputes over leases or rental
agreements. Within FY 2003/2004, only a minor proportion of complaints or
issues were related to occupancy standards. However, the number of
' landlord/tenant disputes relating to entering/harassment increased noticeably in
FY 2003/2004.
t Of the all the landlord tenant disputes that occurred in Palms Springs over the last
four years, the majority originated from White households (67 percent), followed
t by Hispanic households (21 percent) and African American households (nine
percent).7 As was the case for fair housing complaints, the proportion of African
American households requesting tenant/landlord mediation services is slightly
' overrepresented in that, the percentage of African American residents requesting
services represent 11 percent and whereas, African American residents represent
four percent of the City's population.
' The vast majority of all tenant/landlord disputes originated from low income and
renter households. In addition, most tenant/landlord complaints or disputes were
' made by female-headed households
1
' 7 In some complaints/inquires, the race/ethnicity of all members of the household that have been assisted by the Fair
Housing Council of Riverside County are included.
' Page 4-15 City of Palrn Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Landlord/TenantTable 4-2:
ttt � tt t tt t tt I-
Fair Housing Services #Assisted I #Assisted I #Assisted #Assisted
Categories '
Evictions 309 252 175 160
Repairs 287 247 196 153
Lease/Rent Agreement 250 200 155 137 '
Deposits 99 108 67 60
Entering/Harassment 45 34 45 61
Occupancy Standards 30 41 16 4 ,
Mobile Homes '13 33 26 28
Other 191 184 90 256
Total 1,174 1,099 770 859 '
Race/Ethnicity*
African American 177 99 115 129 '
Latino 330 378 362 201
Asian 12 7 6 17
Native American 1 3 14 0 '
White 1249 - 985 '994 843
Other 8 18 41 36
Income** '
Very low N/A N/A 41 118
Low 1,212 1,256 1,200 613
Moderate 472 259 267 495 '
Household Type**
Femal
Senior e I 12224 I 992 I 10336 I 859
Issue Category***
Rent 1,656 1,323 1362 1048 '
Own 1121 131 1170 1178
Other/n/a 30 0 0 0 '
Source: Fair Housing Council of Riverside County, 2004
*Race/ethnicity information adds up to more than the total number of complaints due to the tact in some cases the
race/ethnicity of all members of the household are included.
**Information on income not available for 193 households. '
***In some cases the total number of persons in a household are included as part of the total.
1
1
City of Palm Springs Page 4-16 '
CITY OF PALM SPRINGS Analysis of Impodimonts to fair Housing Choieo
4.3.4 Fair Housing Testing
HUD's Fair Housing Initiative Program (FHIP) provides funding to qualified fair
housing agencies to conduct testing on alleged discrimination cases. Funding is
provided to agencies for a two-year period and is awarded on a competitive
basis. In FY 1999/2000 the Fair Housing Council of Riverside County utilized
FHIP funds from HUD for testinglauditing services within eastern Riverside
1 County, including the City of Palm Springs.
During FY 1999/2000, the Fair Housing Council of Riverside conducted 14 tests
in Palm Springs. The tests were related to three different protected classes: eight
based on race, two on disability, and four related to sexual orientation. Eleven of
the tests were rental tests, two were related to sales and one was based on
' lending.
Of the 14 tests, nine were closed due to no probable cause or inconclusive
' evidence. Five tests showed findings of discrimination. Of these cases, four were
referred to HUD and one was referred to a private attorney.
Fair • (kill
Protected Status 1Testing
i
Sales 2 2
' Lending 1 1
Rental 5 2 4 4 1 6
Total 8 2 4 4 1 9
Source Fair Housing Council of Riverside County November 2004
1
Page 4-17 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
California State Department of Fair Employment and Housing (DFEH) '
The Fair Housing Council of Riverside County works in partnership with HUD '
and the State Department of Fair Employment and Housing (DFEH). After a
person calls in for a complaint, an interview takes place, documentation is '
obtained and issues are discussed to decide on the course of action to proceed.
Mediation/conciliation is first offered as a viable alternative to litigation. If the
mediation/conciliation is successful, the case is closed after a brief case follow-up. '
If the mediation/conciliation is unsuccessful, the case is then referred to DFEH or
HUD. If during case development further investigation is deemed necessary,
testing may be performed. Once the investigation is completed, the complainant '
is advised of the alternatives available in proceeding with the complaint, which
include: mediation/conciliation, administrative filing with HUD or DFEH, referral
for consideration to the Department of Justice, Civil Rights Division, Housing and '
Civil Enforcement Section, or referral to a private attorney for possible litigation.
According to DFEH, a total of 18 cases in Palm Springs were opened from July 1, ,
1999 through June 30, 2003 (the most recent information available). The largest
number of cases (nine) occurred in 1999/2000 with less than five cases per year
occurring since that period. Most cases in Palm Springs in recent years are '
related to an AIDS related disability, marital status, and sexual orientation. The
bases for the discrimination included harassment, eviction, refusal to rent/sell, and
unequal terms (each complainant can list up to four suspected bases for '
discrimination).
Of the complaints received, eight were closed with no probable cause, five were '
successfully conciliated and two were withdrawn due to the complainant not
cooperating or withdrew without resolution.
1
1
City of Palm Springs Page 4-18 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choico
Protected
ttt tit t1 2001/02 20OZ103
Acts/Outcome
Protected Class
Race/Color 2
National Origin 1
Disability-Mental
Disability Physical 1
Disability-AIDS 2 1 2
Familial Status 3
Marital Status 1 1
Sexual Orientation 3 1
Total 9 4 2 3
' Prohibited Act(up to four acts for each case)
Refusal to Rent 3 n/a
Refusal to Sell 1 n/a
Eviction 2 1 1 n/a
Rent Increase 1 n/a
' Unequal Terms 2 1 n/a
Reasonable n/a
Accommodation
Harassment 3 1 1 n/a
' Unequal Access to 1 n/a
Facilities
Sexual Harassment 2 n/a
Outcome
Complainant failed to 1
cooperate
' No probable cause 4 1 3
Complainant not 2
available
' Successful Conciliation 2 2 1
Withdrawn Without 1
Resolution
' Source California Department of Fair Employment and Housing. November 2004,
Page 4-19 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choico
Fair Housing Workshop
At the October 20, 2004 fair housing workshop, several Palm Springs residents ,
commented on some of the fair housing issues and complaints they had
experienced. Comments included fair housing issues related to landlords giving
preferential treatment to tenants of a particular race/ethnicity, landlord
intimidation, lack of building maintenance and problems with security. .Many of
these concerns raised were specifically related to the Pacific Palms Apartment '
complex. In addition, the Fair Housing Council of Riverside County commented
that rising rental prices often affect senior households in Palm Springs and that
complaints regarding reasonable accommodation are frequent in Palm Springs. A
complete summary of the comments provided at the workshop are provided in
Appendix A.
Palm Springs City staff, members of the CDBG Citizen Advisory Committee ,
(CAC), service providers, lenders, real estate professionals, and the Fair Housing
Council of Riverside County attended the workshop to help explore issues '
regarding fair housing laws and concerns as well as provide information for fair
housing and resolution services.
After the workshop, residents of the Pacific Palms Apartments, city staff, the ,
CDBG CAC, and the Fair Housing Council of Riverside County were invited to a
special session to discuss fair housing issues at the Pacific Palms Apartment '
complex. A formal letter summarizing concerns has been sent from the City to
the management company of Pacific Palms Apartments and resident concerns
have been forwarded to the Palm Springs Police Advisory Committee. The Fair '
Housing Council is currently investigating resident complaints.
Fair Housing Survey
As part of the development of the Al, a community fair housing survey was
designed to gain knowledge about the experiences that the community has had t
with fair housing issues and to solicit input on fair housing concerns. This survey
was distributed at the community workshop, was available at City hall, was
available on the City's website, and was distributed to key service providers, real
estate professionals, lenders, management companies, mobile home parks, and
non-profit agencies. The survey was available in English and Spanish. Despite
extensive outreach, only 12 individuals responded to the survey. These '
respondents provided input on fair housing issues in Palm Springs. A complete
summary of the survey responses is presented in Appendix A. Key issues from
survey are as follows: '
• Of the survey respondents, four persons indicated that housing
discrimination was an issue in their neighborhood or they had personally ,
experienced housing discrimination. One person was not sure.
City of Palm Springs Page 4-20
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
• Of the persons that indicated that they had experienced housing
1 discrimination (or were not sure), four persons indicated that a landlord
or property owner had discriminated against them. One person
identified a real estate agent as the source of discrimination.
• Of the persons indicating that they had experienced housing
discrimination (or were not sure), three persons indicated that the
discrimination occurred in an apartment complex, one person identified a
single-family home and another person indicated a condominium
development.
• Three persons indicated that they had experienced housing
discrimination based on race, two persons indicated that it was based on
age, and one person indicated sexual orientation.
• Of the five persons who indicated that they were discriminated against(or
were not sure), two persons reported the incidents. Of the three
respondents that did not report the incident, one person felt it was too
much trouble, while two didn't believe it would make a difference.
• Of all respondents, six persons (50 percent) indicated that they had
experienced a hate crime. Three of those individuals indicated that the
hate crime was based on sexual orientation; one person indicated that it
was based on religion; one person indicated that it was based on race,
and an additional person indicated that it was based on age.
1 4.4 Hate Crimes
' To a certain degree, hate crimes are an indicator of the environmental context of
discrimination. Hate crimes are crimes that are committed because of a bias
against race, religion, disability, ethnicity, or sexual orientation. These crimes
' should be reported to police or sheriff's department. On the other hand, a hate
incident is an action or behavior that is motivated by hate, but is protected by the
First Amendment right to freedom of expression. Examples of hate incidents can
include name calling, epithets, distribution of hate material in public places, and
the display of offensive hate-motivated material on one's property. The freedom
guaranteed by the U.S. Constitution, such as the freedom of speech, allows
' hateful rhetoric as long as it does not interfere with the civil rights of others. Only
when these incidents escalate can they be considered an actual crime.
In an attempt to determine the scope and nature of hate crimes, the Federal
Bureau of Investigation's (FBI) Uniform Crime Reporting Program collects statistics
on these incidents.
According to the FBI, hate crimes consistently take place in Palin Springs. As
displayed in Figure 4-1, between 1999 and 2002 (the most recent data available),
' 52 hate crimes were committed in Palm Springs with between 8 and 20 hate
' Page 4-21 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
crimes occurring per year.' The largest number of crimes occurred in 2001, with '
20 crimes taking place, 17 of which related to sexual orientation. The total
number of hate crimes decreased to eight incidents occurring in 2002. '
The vast majority of hate crime committed in Palm Springs were related to sexual
orientation. Of the 52 crimes committed in Palm Springs between 1999 and '
2002, 42 were related to sexual orientation. Six hate crimes were race-related
and three were related to religion. One hate crime related to ethnicity occurred
in 2002. '
Figure 4-1 FBI Hate Crime Statistics in Palm Springs
25 ®Ethnicity
■Sexual Orientation ,
20 ❑Religion
❑Race
15
10
5 '
0
1999 2000 2001 2002 '
Source: FBI Hate Crime Incidents.2003
The City of Palm Springs Police Department also maintains records of hate crime ,
statistics based on the type of crime. Between 2001 and 2004, 52 hate crimes
were committed within the City, with the majority based on sexual preference ,
(75 percent) followed by race (17 percent). The leading type of hate crime was
assault followed by disorderly conducts and threats.
'The FBI also tracks hate crimes relating to disability. However, no disability-related hale crimes occurred in Palm '
Springs in 1999-2002.
City of Palm Springs Page 4-22
CITY Of PALM SPRINGS Analysis of Impodiments to fair Housing Choieo
1Table 4-5: Palm Springs Police Department Hate Crime Statistics
00 00,
2001-2004
Arson
Assault 5 18
Disorderly Conduct 3 9
Homicide
Threats 3 8
Vandalism 1 1 2
Attempted Robbery 1
Total 9 4 39
Services available to victims include certain rights under the California
Constitution's Victim's Bill of Rights (i.e. information about the prosecution of the
perpetrator, right to present a victim impact statement at the time of sentencing),
' and restitution for any loss, damage, or injury incurred.
The Palm Springs Human Rights Commission is a volunteer, nine-member
' commission whose responsibility is to promote improved relations, civic peace,
inter-group understanding, and acceptance, respect and participation of all
persons in the community. Responsibilities include developing and community
' education forums, human rights informational material, sponsoring town hall
forums with the Palm Springs Police Department, and investigating and mediating
instances of discrimination of groups or individuals.
1
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Page 4-23 City of Palm Springs
' O PALM
Chapter 5
c-��rroRci�v
Public Policies
' Public policies may affect the pattern of housing development, availability of
housing choices, as well as access to housing. This chapter of the Al reviews the
various policies that may impact housing choices in Palm Springs. The Palm
Springs 2000-2005 Housing Element, Zoning Ordinance, Land Use Element,
Consolidated Plan and other documents were reviewed and various City staff
' were interviewed to evaluate the following potential impediments to fair housing
choice and housing development:
' Local municipal, building, occupancy, health, and safety codes
• Public policies and building approvals that add to the cost of housing
development
• Moratoriums or growth management plans
• Residential development fees
' • Administrative policies affecting housing activities
• Policies that restrict housing or community development resources for
' areas of minority concentration, or policies that inhibit employment of
minorities or individuals with disabilities
• Interdepartmental coordination between local agencies that provide
housing or community development resources to areas of minority
concentration or to individuals with disabilities
fCommunity representation on planning and municipal boards and
commissions
City of Palm Springs Page 5-1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
5.1 General Plan Policies '
5.1 .1 General Plan and Specific Plans
The Palm Springs General Plan Land Use Element sets forth the City's policies for
guiding local development. These policies, together with existing zoning,
establish the amount and distribution of land to be allocated for various uses '
throughout the City. The residential land use categories, corresponding zoning
category and zoning standards are identified in the General Plan are outlined in
Table 5-1.
Land use policies that do not promote a variety of housing options can impede
housing choice. Higher density housing reduces land cost on a per-unit basis and '
thus facilitates the development of affordable housing. Restrictive municipal
codes that require unusually large lot and building size can substantially increase
housing costs and can impede housing production. '
The Palm Springs General Plan, Zoning Ordinance and Specific Plans provide for
a variety of residential zones, lot sizes, and density levels to facilitate a diverse 1nix '
of housing types. The General Plan establishes 12 residential categories including
Rural Residential, Very Low Density, Low Density, Medium Density, Medium
High Density, High Density and Controlled Low Density. Maximum densities in '
these categories range from one unit per five acres to 43 units per acre.
In addition to the land use designations, the Land Use Map identifies several '
areas for Area Plan Overlays. Reasons for the Area Plan Overlay may include
sensitive environmental conditions, infrastructure and service delivery constraints,
the prospect for development of a resort destination facility, or as a means to
ensure timely development of the area in a planned manner to avoid leap-frog
development. The Area Plan may be implemented either through the adoption
of a Specific Plan or use of Planned Development District zoning. Where the
Area Plan necessitates a General Plan Amendment, a Specific Plan is required.
1
Page 5-2 City of Palm Springs
! MY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Table 5-1: Palm Springs General Plan
B211dUtffial Land Use QAtgg2LLW
Designation Description Max Density
R-0.2/0.4 The Rural Residential Designations of R-0.2 and R 0.4 0.2 —0.4 du/ac
! Rural [providing for the development of various types of very low-
Residential density residential development, including large ranch and
estate lots, guest ranches and resorts, residential equestrian
uses, and traditional single-family homes.
! L-1/2 Very Provides for the development of various types of low-density 1 —2 du/ac
Low-Density residential development, including large estate lots and
Residential traditional single-family homes.
! L-4 Low- The L-4 Low-Density Residential designation provides for the 3 —4 du/ac
Density development of various types of low-density residential
Residential development, including traditional single-family homes.
! L-6 Low- The L-6 Low-Density Residential designation provides for the 4—6 du/ac
Density development of low-density residential development, including
Residential traditional single-family homes.
! M-8 Medium- Appropriate residential development under this designation 6—8 du/ac
Density includes traditional single-family homes and garden
Residential apartments.
M-15 Medium Appropriate residential development under this designation 12 — 15 du/ac
Density includes traditional single-family homes and garden
Residential apartments.
H-30 Medium Residential development under this designation includes 21 —30 du/ac
! High-Density multiple-family apartments and similar permanent and resort
housing.
H-43/21 High The H-43/21 designation allows for the development of fifteen) 30—43 (86 1)A
! Density to twenty-one dwelling units per acre for multiple-family 15-21 du/ac B
apartments and similar permanent housing. Hotels and similar
types of resort housing are allowed in both designations with a
! threshold of 30 and a maximum density of 43 dwelling units
per acre. Mixed-use residential/commercial developments in
conjunction with adjacent commercial properties may be
considered.
H-43/30 High The H-43/30 designation allows for the development of 30—43 (86 1) A
Density twenty-one to thirty dwelling units per acre for multiple-family 21 —30 du/ac B
apartments and similar permanent housing. Hotels and similar
! types of resort housing are allowed in both designations with a
threshold of 30 and a maximum density of 43 dwelling units
per acre. Mixed-use residential/commercial developments in
! conjunction with adjacent commercial properties may be
considered.
CDL-6 Provides for the development of a threshold of three and a 3 —6 du/ac
! Controlled maximum of six dwelling units per acre to accommodate the
Low-Density development of various types of affordable housing, including
traditional single-family homes and multiple-family structures.
Development not qualifying as affordable housing shall be
! limited to four dwelling units per acre.
City of Palm Springs Page 5-3
!
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Table 5-1: Palm Springs General Plan
ResodeUtoal Land Use Cateanries
Designation Description
CDL-8 The CDL-6 designation provides for the development of a 3 — 8 du/ac '
Controlled threshold of three and a maximum of eight dwelling units per
Low-Density acre to accommodate the development of various types of
affordable housing, including traditional single-family homes '
and multiple-family structures. Development not qualifying as
affordable housing shall be limited to four dwelling units per
acre.
LSR Large Scale Provides for the development of large, mixed-use resorts which 10—30 du/ac
Resort may include guest ranches, hotels of other types of resort
residential uses. '
NOTES:
A= Hotel Density
B =MuILI-Family Dwelling Density
I = Indian Land '
' Density range expressed in dwelling units per gross acre(du/ac).
Source City of Palm Springs 2000-2005 Draft Housing Element and City of Palm Springs General Plan,1993.
Specific Plans '
The City requires that potential developable areas of 300 acres or more are '
subject to tier approval of an Area Plan. The 1993 General Plan, as amended,
identifies seven such areas as follows:
Canyon South: A Specific Plan (SP-1) has been approved for a 721-acre '
resort and spa destination resort located at the southwestern end of the
City.
• Chino Cone: This area is envisioned for high-end residential, large-scale
destination resort and commercial recreation.
• Palm Hills: The 34 square mile area was annexed in 1970. A study was
conducted in 1974 that illustrated the most intense land use activity that
can be conducted. A minimum of four specific plans, each corresponding
to a sub-area established by the study, will he required prior to
development. The study established a maximum unit capacity of 5,000
units, inclusive of hotels.
• Snow Creek: This area is located in the City's Sphere of Influence, and is '
envisioned as a low density resort community.
• Palm Springs Classic: This area plan is envisioned as mixed '
commercial/resort/business.
Page 5-4 City of Palm Springs
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' • Smoke Tree Area Plan: The purpose of the area plan is to create a unique
mixed use shopping center characterized by an intimate, pedestrian
oriented design theme.
' . Mid-Valley Center: This area plan represents a mixed-use development
consisting of a resort hotel, timeshare, championship golf course,
' conference meeting space, restaurants, health spa and fitness center,
tennis courts and customary hotel services and shops, vacation ownership
units and retail/commercial and high tech business and office space.
1 .2 General Plan Housing Element
1 The housing element is one of seven mandated elements of the local general
plan. Enacted in 1969, housing element law requires that local governments
adequately plan to meet the existing and projected housing needs of all
' economic segments of the community. In addition, the Housing Element is the
only element of the General Plan that is required to be reviewed by the State. An
important component of the State Department of Housing and Community
Development (HCD) approval of any housing element includes a determination
that the local jurisdiction's policies do not unduly constrain the maintenance,
improvement, and development of housing for all income levels.
' As part of the development of the 2000-2005 Housing Element, the City has
evaluated the housing needs in the community and has developed appropriate
' goals, policies and programs to address these needs. Several goals related to
housing in the community have been identified in the 2000-2005 Housing
Element.
' (4A) To develop, in accordance with density, building, and environmental
standards, new affordable housing to expand housing opportunities for all
' residents of the City.
(413) To coordinate City housing programs with other governmental agencies
(cities, county, state and federal), the private sector (major employers, developers,
realtors) and private non-profit agencies.
(4C) To provide a variety of housing types to meet the diversity of housing needs
throughout the City's residential neighborhoods.
(4D) To provide affordable housing for people with special needs, including
elderly, the disabled, female-headed households, and the homeless.
' (4E) To remove or mitigate constraints to the provision of affordable housing, both
governmental and non-governmental.
City of Palrn Springs Page 5-5
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice '
(4F) To rehabilitate deteriorating housing throughout the City and prevent further
deterioration of affordable units and to ensure all housing is safe and sanitary.
MG) To preserve affordable housing resources in the City. '
(4F) To eliminate discrimination in housing with regard to 'race, color, religion,
national origin, gender, age, farnily status or sexual orientation, and to ensure ,
equal housing opportunity for all groups.
5.2 Local Municipal, Building, Occupancy, '
Health and Safety Code
5.2.1 Zoning Ordinance 1
The Palm Springs Zoning Code provides for a variety of residential housing types
within 13 residential zones. A description of the type of residential structures
permitted within each zone and development standards are provided in Table 5-
2. Densities range from one dwelling unit per five acres to 30 dwelling units per
acre for multi-family as listed below:
• G-R-5 Guest Ranch Zone ,
• R-1-AH Single-Family Residential Zone (20,000 square feet)
• R-1-A Single-Family Residential Zone (20,000 square feet)
• R-1-B Single-Family Residential Zone (15,000 square feet) '
• R-1-C Single-Family Residential Zone (10,000 square feet)
• R-1-D Single-Family Residential Zone (7,000 square feet)
• R-G-A (6) Cluster Residential Zone '
• R-G-A (8) Garden Apartment Multiple-Family Residential Zone
• R-2 Limited Multiple-Family Residential Zone
• R-3 Multiple-Family Residential and Hotel Zone ,
• R-4 Large Scale Hotel and Multiple-Family Residential Zone
• R-4-VP Vehicle Parking and Large Scale Hotel and Multiple
Family Residential and Limited Commercial Retail Zone '
• R-MHP Residential Mobile Home Park Zone
Page 5-6 City of Palm Springs
1
i CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Table 5-2 Residential Zoning Categories, Land Use and Standards
tZone Min.Lot Area Max.Height Lot Coverage Typical Residential
G-R-5 5 acres Not greater than 15 feet, not 20% Permanent single-family
to exceed one story. dwellings, horses, accessory
' apartment units permitted with
CUP.
R-1-AH 2O,000 sq. ft. Not greater than 12 ft., not 35% Permanent single-family
' to exceed one story at the dwellings, manufactured housing
min. setback Height on permanent foundations, and
increase may be allowed accessory apartment units
' along a plane that has a permitted with CUP.
slope of 4:12, until a height
of18ft.
R-1-A 20,000 sq. ft. Same as R-1-AH 35% Permanent single-family
dwellings, manufactured housing
on permanent foundations, and
accessory apartment units
' permitted with CUP.
R-1-13 15,000 sq. ft. Same as R-1-AH 35% Permanent si ngle-family
dwellings, manufactured housing
' on permanent foundations, and
accessory apartment units
permitted with CUP.
R-1-C 10,000 sq. ft./ Same as R-1-AH 35% Permanent single-family
12,500 sq. ft. dwellings, manufactured housing
(fairway lots on permanent foundations, and
' only) accessory apartment units
permitted with CUP.
R-1-D 7,500 sq. ft. Same as R-1-AH 35% Permanent single-family
' dwellings, manufactured housing
on permanent foundations, and
accessory apartment units
permitted with CUP.
' R-G-A (6) 2 gross acres Not to exceed 15 feet, 50% Single-family dwellings, multi-
Cluster (7,000 sq.ft. except as otherwise family dwellings, accessory
Residential per dwelling provided. apartment units permitted with
Zone unit) CUP and elderly board and care
facilities.
R-G-A (8) 2 gross acres Not to exceed 15 ft. except 50% Single-family dwellings, multi-
' (5,000 sq.ft. as otherwise provided. family dwellings, accessory
per dwelling apartment units permitted with
unit) CUP and elderly board and care
facilities.
1
City of Palm Springs Page 5-7
1
1
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choico '
Table 5-2 Residential Zoning Categories, Land Use and Standards
Zone Min.Lot Area Max. Height Lot Coverage Typical Residential
R-2 20,000 sq.ft. Not greater than 24 ft., not 50% of site area Single-family dwellings, multi- ,
to exceed two (2) stories. set aside for open family dwellings, hotels,
space; 3,000 accessory apartment units
sq.ft. per dwelling permitted with CUP and elderly
unit board and care facilities.
R-3 20,000 sq.ft. Not greater than 24 ft., not (45%of site area Multi-family dwellings, hotels and
to exceed two (2) stories. set-aside for open elderly board and care facilities. '
High rise structures to 60 ft. space; 3,000
permitted by CUP/PDD sq.ft. per dwelling
unit) '
R-4 2 gross acres Not greater than 30 ft. High 45%of site area Hotels, resort hotels, multi-family
(1,500 sq.ft. rise structures to 60 ft. set-aside for open dwellings, private accessory
net per multi- permitted by CUP/PDD space. clubs. '
family
dwelling unit)
R-4-VP 2 gross acres Not greater than 30 ft. High 45%of site area Hotels, resort hotels, multi-family
(1.500 sq.ft. rise structures to 60 ft. set-aside for open dwellings, private accessory t
net per multi- permitted by CUP/PDD. space. clubs.
family
dwelling unit) ,
R-MHP 5,000 sq.ft. Not greater than 24 ft., not No requirement Residential mobile homes, multi-
to exceed two stories. family dwellings, social and
recreational centers. ,
Source: City of Palm Springs Zoning Ordinance, City of Palm Springs 2000-2005 Draft Housing Element.
Additional Zones that Permit Residential Development '
Five additional zones within Palm Springs also allow residential development,
providing opportunities for mixed-use and housing close to businesses and other ,
services. Residential uses are also permitted within the Central Business District
(CBD), C-1- Retail Business Zone, C-1AA-Large Scale Retail Commercial Zone,
CC-Civic Center Zone, and Resort Overlay Zone. '
CBD district: Permits the conversion of existing upper,floor story floor areas to
apartments with full bathroom and kitchen facilities subject to a Land Use Permit. '
C-1 Zone: Permits multi-family dwellings by right, subject to standards
established in the R-3 zone. In addition, the C-1 Zone also permits the '
conversion of existing upper floor story floor areas to apartments with full
bathroom and kitchen facilities subject to a Land Use Permit.
C-1AA Zone: Permits multi-family dwellings and hotels (including the provisions '
for high-rise structures) by right, subject to the standards established in the R-4
zone. '
Page 5-8 City of Palm Springs
1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' CC Zone: Permits all residential uses permitted within the R-3 zone, subject to R-
3 standards are also permitted within the CC Zone.
' Resort Overlay Zone: Under this zone, uses shall be as provided in the
underlying zone, except that:
' 1) All multi-family dwellings shall be permitted only by a Conditional Use Permit
(CUP);
2) The conversion of existing hotels with 29 zone rooms or less to multi-family
dwellings (such as an SRO) shall not require the approval of a CUP provided
that parking standards are met.
' Planned Residential Development District
' In addition to the 13 residential zones identified in Table 5-2, the Palm Springs
Zoning Ordinance allows for the establishment of Planned Residential
Development districts that are intended to be used to foster and encourage
' innovative design, flexibility in land use types which would not be allowed in
other zoning districts and provide a greater diversity in housing choices.
Rent Control
The City Council adopted a rent control ordinance in 1990. Rent increased for
' rent controlled units cannot be increased more than once every 12 months and
are tied to the Consumer Price Index. Any rent increase cannot be in excess of
three-fourths of the increase in the cost of living as indicated in the latest available
' Consumer Price Index (CPI) for the City of Los Angeles. The ordinance also
provides for vacancy decontrol, except that mobile homes are not subject to
vacancy decontrol. There are a number of exemptions from the Ordinance
' including:
(1) Units used primarily for commercial purposes;
(2) Units in buildings, mobile home parks, or developments of four units or less
where one unit is occupied by the owner;
' (3) Units upon which construction began on or after April 1, 1979;
(4) Units in any hotel, motel, inn, tourist home or boardinghouse which are
rented primarily to transient guests and are subject to the transient occupancy tax
of the city for any period during which such tax is actually collected and paid to
' the city;
(5) Spaces in any recreational vehicle park;
City of Palm Springs Page 5-9
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
6) Units in nonprofit cooperatives when occupied by the shareholder entitled to '
exclusive possession thereof;
(7) Units in any hospital, medical care facility, asylum, or nonprofit home for the ,
aged;
(8) Units owned, managed or operated by any government agency; ,
(9) Units whose rent is subsidized by any governmental agency, if federal or state
law or regulation specifically exempts such units from rent regulation. '
The Palm Springs Rent Review Commission is empowered to interpret the rent
control ordinance of the City, rule upon the propriety of actions or proposed '
actions under the terms of the Rent Control Ordinance and make
recommendations to the City Council on matters relating to rent control.
Definition of a Family '
In general, a Zoning Ordinance may restrict access to housing for relations failing ,
to qualify as a "family" by the definition specified in the Zoning Ordinance. Even
y if the code provides a broad definition, deciding what constitutes a "family"
should be avoided by cities to prevent confusion or give the impression of ,
restrictiveness. Particularly, when the Zoning Ordinance uses terms such as
"single-family" homes, defining family in too detailed conditions may be viewed
by some as restricting.access to housing for certain segments of the population. '
As indicated Chapter 4, three individuals intending to purchase a condominium
unit was refused the unit due to the CC&R that prohibits ownership of the unit
except by a family. This provision in the CC&R should be considered a violation
of fair housing law and cannot be enforced.
The Palm Springs Zoning Ordinance "Family" means an individual or two (2) or ,
more persons living together as a single housekeeping unit in a single dwelling
unit. This definition does not restrict access to housing. ,
Housing for Persons with Special Needs
The Zoning Code also contains provisions to facilitate development of housing for '
special needs groups. These include:
Community Care Facilities: The Lanterman Developmental Disabilities Services r
Act (Sections 5115 and 5116) of the California Welfare and Institutions Code
declares that mentally and physically disabled persons are entitled to live in '
normal residential surroundings. The use of property for the care of six or fewer
disabled persons is a residential use for the purposes of zoning. A State-
authorized, certified or licensed family care home, foster home, or a group home '
Page 5-10 City of Palm Springs
Cf1Y Of PALM SPRINGS Analysis of hinpodlinonts to fair Housing Choice
' serving six or fewer disabled persons or dependent and neglected children on a
24-hour-a-day basis is considered a residential use that is permitted in all
residential zones. No local agency can impose stricter zoning or building and
' safety standards on these homes.
While the Palm Springs Zoning Ordinance does not include a classification for
community care facilities, the Zoning Ordinance contains provisions for assisted
living facilities and convalescent homes.
' The Palm Springs Zoning Ordinance defines an assisted living facility and
convalescent home as follows:
Assisted living facilities are defined as a "special combination of housing,
supportive services, personalized assistance and health care licensed and
designed to respond to the individual needs of those who need help with
activities of daily living and instrumental activities of daily living. Supportive
services are available twenty-four (24) hours a day to meet scheduled and
unscheduled needs in a way that promotes maximum dignity and
' independence for each resident and involves the resident's family, neighbors
and friends, and professional caretakers."
Convalescent homes are defined as "a facility licensed by the State
Department of Public Health, the State Department of Social Welfare, or the
county of Riverside, which provides bed and ambulatory care for patients
' with post-operative convalescent chronic illness or dietary problems, and
persons unable to care for themselves."
' Convalescent homes are conditionally permitted in the R-G-A and R-2 zones
while assisted living facilities are conditionally permitted in the R-G-A, R-2, R-3,
R-4, R-4VP zones. According to the State of California Department of Social
Services Community Care Licensing Division, 34 licensed community care
facilities are located in Palm Springs including one adult residential facility, eight
foster homes, and 25 elderly residential facilities.'
' Emergency Shelters and Transitional Housing: Emergency shelters/transitional
housing are not defined or identified as a use in the Palm Springs Zoning
Ordinance. However, Desert AIDS Project provides several
transitional/permanent beds for homeless individuals that have HIV/AIDS within
Palm Springs. These beds are located within private homes within the
community.
In addition, hotels that accommodate kitchen facilities are permitted in the R-2,
R-3, R-4, R4VP, and CBD zones, although they are limited to not more than 10
' percent of the units within an individual hotel facility. Hotel facilities that allow
kitchens in more than 10 percent of the guest rooms are permitted subject to a
' State of California Department of Social Services,Community Care Licensing Division, November 2004
City of Palm Springs Page 5-11
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice '
CUP. As mentioned earlier, under the Resort Overlay Zone, existing hotels with '
less than 29 rooms may be converted to a multi-family use without a CUP.
State Housing Element law requires a jurisdiction to provide adequate sites ,
including emergency shelters and transitional housing. In most cases, the
California Department of Housing and Community Development's interpretation
of this requirement is that transitional and emergency shelters are clearly ,
identified as permitted or conditionally permitted uses in specific zoning districts.
Condition for approval should not be different from those for similar uses in the
same zones, and should not unduly constrain the development of such facilities. '
Mobile Homes/Manufactured Housing: Manufactured housing is permitted by
right in Zones R-1AH, R-1-A, R-1-13, R-1C, and R-ID zones. Mobile parks are '
permitted by right in the R-MHP Residential Mobile Home Park Zone.
Second Units: Second units are attached or detached dwelling units that provide '
complete independent living facilities for one or more persons including
permanent provisions for living, sleeping, cooking and sanitation. Second units
may be an alternative source of affordable housing for very low-income persons, t
particularly seniors.
Second Units are identified as "accessory apartments" in the Palm Springs Zoning '
Code. Accessory apartments are defined as an efficiency dwelling unit
incorporated within the living area of a primary single-family residence.
Accessory apartments include permanent areas for living, sleeping, eating, '
cooking and sanitation.
Accessory apartments are permitted in the G-R-5, R-1-AH, R-1-A, R-1-B, R-1-C, '
R-1-D, R-G-A (6), R-G-A (8), and R-2 zones subject to the requirements of a
conditional use permit. Recent changes in State law require local jurisdictions
remove the conditional use permit process for second/accessory units. Such units
must be approved via a ministerial process when meeting the specific conditions.
Density Bonuses: The California Government Code Section 65915, as amended, '
requires that a local government grant a density bonus and an additional
incentive, or financially equivalent incentive(s) to a housing developer who agrees
to construct at least: 1) 20 percent of the units for low income households (51-80
percent MFI); 2) 10 percent of the units for very low income households (0-50
percent MFI); 3) 50 percent of the units for senior citizens; or 20 percent of the
condominium units for moderate income households (81-120 percent MFI). For
lower income housing and senior housing, the required density bonus is 25
percent. For moderate income condominiums, the required density bonus is 10
percent. '
A jurisdiction can adopt an ordinance specifying the requirements for a housing
development to receive a density bonus. The ordinance should also specify the
Page 5-12 City of Palm Springs
' MY Of PALM SPRINGS Analysis of Impodiments to fair Housing Choico
type of regulatory incentives offered by the jurisdiction. If an ordinance is not
adopted, the jurisdiction must comply with the State density bonus provisions. A
jurisdiction can adopt density bonus provisions that offer additional incentives but
cannot adopt provisions that are more stringent than State law. By default, a local
jurisdiction must offer a density bonus to a housing development if the developer
meets the minimum requirements specified by State law.
' The City uses density bonus provisions according to State law (Section 65915)
with the density bonus applied to housing developments consisting of five or
more dwelling units. According the Palm Springs 2000-2005 Draft Housing
Element, the City has used the density bonus provisions successfully in the past.
In 2004, the State Legislature passed Senate Bill 1818 which amends
Government Code Section 65915. SB 1818 law lowers the affordable housing
requirement, while increasing the density bonus and incentives. Since SB 1818
' was enacted in 2004, most zoning ordinances in California are not in compliance
with this Bill, which becomes effective on January 1, 2005.
1
1
1
City of Palm Springs Page 5-13
CITY Of PALM SPRINGS Analysis of Impediments to"'fair Housing Choice '
Parking Requirements '
The City has adopted the following parking standards:
ResidentialTable 5-3 . .Zone/Use Parking Requirements
Single Family Residential 2 Spaces per dwelling unit ,
Spaces must be within a garage or carport attached to the main
building, except in R-1AH and R-1-A Zones and hillside areas,
which may have detached garages.
Condominiums or residences Studio and efficiency units : 1 primary space
within a Planned Development Two-bedroom units: 1 '/z primary spaces '
District(PD) Three or more bedrooms: 3/4 primary space per bedroom
In addition, to primary parking required, 1 designated parking
space for each 4 units shall be provided for guest parking. '
Apartments Same requirements as condominiums except that covered or
enclosed spaces are optional.
Rooming, boarding and 1 space for each sleeping room, or 1 space for each two beds ,
fraternity houses whichever yields the greater number.
Mobile home parks 2 spaces per mobile site
Mobile Home Parks shall provide guest parking at a rate of 1 ,
space for each 7 units, unless guest parking can be provided on
private on a private street.
Mixed Use Sum of the requirements for various uses computed
independently. A joint use parking agreement can be utilized,
if approved by the Planning Commission.
Source: City of Palm Springs Zoning Code,2000-2005 Draft Housing Element. '
1
Page 5-14 City of Palm Springs
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' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
5.2.2 Building Codes
' The City of Palm Springs' building codes are based upon the 1997 State Uniform
Building, Housing, Plumbing, and Mechanical Code and the 1996 Electrical
Code, which together establish construction standards for all residential buildings.
' According to the 2000-2005 Housing Element, this local enforcement of these
codes does not add significantly to the cost of housing.
' The Community Preservation Department within the Department of Building and
Safety maintains a largely reactive, complaint-driven code enforcement program
although the Department attempts to be more proactive if time permits. The
' primary housing complaints are related to property maintenance, non-operational
vehicles, and sign code violations. Complaints generally occur citywide; the City
has not established target area for code enforcement.'-
' In conjunction with inspecting and noticing property owners regarding a
violation, the Community Preservation Department staff generally advises
property owners to contact the City's Department of Community and Economic
Development for information on the City's rehabilitation programs.
' 5.2.3 American with Disabilities Act
The City's building codes require that new residential construction comply with
the Federal Americans with Disabilities Act (ADA). ADA provisions include
requirements for a minimum percentage of units in new developments to be fully
accessible to the physically disabled.
' Palm Springs employs an ADA coordinator to assist the City and the public to be
in compliance with local, state and federal programs. This position also reviews
development plans for compliance and assist homeowners and builders in design
and construction of accessible facilities. Through these activities, the City of Palm
Springs is able to minimize the constraints posed to the development of housing
' accessible to the disabled population. The following is a summary of activities
provided by the City's ADA Coordinator:
' . Assist the City with ADA compliance regarding architectural accessibility
issues as they pertain to new development, modifications to existing
buildings and public right of way concerts.
' • Participate as a member of the Design Review Committee to check for
disabled access with all new development projects. Meets with
' 2 Dirk Voss, Community Preservation Coordinator, Department of Building&Safety/Community Preservation City of
Palm Springs. November 2004.
City of Palm Springs Page 5-16
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice '
architects and provide plan checking regarding disabled access
concerns. '
• Assist the Human Resources Department regarding ADA compliance on ,
a case-by-case basis.
• Serve as a liaison between the City of Palm Springs, the disabled '
community and organizations serving the needs of the disabled.
• Provide information on disability related topics '
5.3 Moratoriums/Growth Management
Palm Springs does not have building moratoriums or growth management plans
that limit housing construction.
5.4 Development Fees/Assessments '
Various fees and assessments are charged by the City and other agencies to cover
the costs of processing permits and providing services and facilities, such as
utilities, schools, and infrastructure that are associated with building housing. '
Almost all of these fees are assessed through a pro rata share system, based on the
magnitude of the project's impact or on the extent of the benefit which will be
derived. These fees contribute to the cost of housing and may constrain the '
development of lower priced units. However, due to the passage of Proposition
13, jurisdictions are limited in the amount of revenue that can be generated from
property taxes. Therefore, planning and development fees are the primary means '
for jurisdictions to cover plan check, inspection costs and infrastructure
improvements. School fees are established by the State and are not under the
control of local municipalities. '
Past fee surveys conducted by the City have indicated that Palm Springs' plan
check and building permit fees for residential development are comparable to or '
lower than those of nearby jurisdictions.' Palms Springs' fees do not appear to be
an unreasonable or a significant constraint to development. In addition, the City
reduces development fees for affordable and senior housing through its various '
programs by reviewing development fees, and where feasible, recommending a
reduction of fees or deferred payment until occupancy for projects with
affordable units. The City also utilizes set-aside or CDBG funds to reduce
constraints associated with infrastructure improvements to facilitate specific
affordable housing projects.
' 2000-2005 Draft Housing Clement. '
Page 5-16 City of Palm Springs
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
' 5.5 Community Representation
Palm Springs values resident perspectives on how well the city government and
' staff are serving the community's needs. The Palm Springs City Council relies on
the volunteer members of twelve Boards and Commissions to provide advice and
assistance in many areas of City services.
The Commissions and Boards have been established to:
' 1) Advise the City Council on matters within their area of interest;
2) Enable more attention to be given to specific issues and problems;
' 3) Act as a channel of communication between City government and the
public;
' 4) Provide a greater opportunity for citizen participation in the affairs of City
government, and,
5) Make decisions on matters where the City Council has granted them
authority to act.
' Commission and board members are resident volunteers appointed by the City
Council with the City Council conducting annual interviews for vacant positions
1 in May. Terms are for three years in duration however, existing commissioners
are eligible for an additional reappointment, provided that the total number of
years on such Commission or Board does not exceed seven.
' Nominations for appointment to a City Board or Commission are made by any
member of the City Council at a public meeting. Appointees must be residents
and registered voters at the time of, and during, their appointment. In addition,
candidates must demonstrate that they have adequate background, experience
and education to be enthusiastic and knowledgeable commissioners. Other
factors in the process include selecting candidates who reflect the social, ethnic
and cultural diversity of the community. Applicants may apply for no more than
two Commissions.
' Boards and Commissions related to planning and housing issues are described
below.
1 Planning Commission
1 The Planning Commission is comprised of seven members that review
applications and construction plans for development and reviews and
recommends action on all matters concerning the City's Ceneral Plan, Capital
Improvement Program, zoning regulations and environmental matters. On items
City of Palm Springs Page 5-17
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CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choico '
requiring public hearings, it receives public testimony and considers public
opinion. Most of the Commission's decisions are final, and are subject to appeal '
to the City Council.
The Planning Commission meets on the second and fourth Wednesdays of each ,
month in the Council Chamber, and study session the first Wednesday, in the
Large Conference Room, at City Hall.
Human Rights Commission '
The Human Rights Commission is a volunteer, nine-member commission whose '
responsibility is to promote improved relations, civic peace, inter-group
understanding, and acceptance, respect and participation of all persons in the '
community. Responsibilities include developing educational materials,
community education forums, and investigating and mediating instances of
discrimination of groups or individuals. The Human Rights Commission, meet on ,
the second Monday of the month in the Council Chamber at City Hall with staff
support is provided by the Director of Public Affairs.
Rent Review Commission:
The Rent Review Commission is comprised of five members, which does not '
have regularly scheduled meetings, but meets as needed. The Commission is
empowered to hear and decide petitions for hardship rent increases, interpret the
rent control ordinance of the City, rule upon the propriety of actions or proposed ,
actions under the terms of the ordinance, and make recommendations to the City
Council on matters relating to rent control. ,The decisions of this group are Final
and may not be appealed to the City Council. No instances of illegal rental '
convictions have been observed by the Rent Review Commission.'
1
4 Dale Cook, Community Development Ad ministrator. December 2004. '
Page 5-18 City of Palm Springs
VAL
Chapter 6
Finding and Actions
' The previous chapters identify common problems and barriers to fair housing in
Palm Springs. Building upon the previous analysis, the City outlines its actions to
address impediments to the fair housing in this chapter.
6.1 Potential Impediments
' The following is a list of key potential impediments that may exist in Palm Springs.
' Housing and Household Characteristics
• Due to Palm Springs' unique status as a popular tourist destination and
retirement community, a large proportion of jobs in the community are
seasonal and service-related. In addition, slightly more than one quarter of all
residents in the community are 65 years and older.
' Palm Springs has experienced noticeable changes in regards to race and
ethnicity. From 1990 to 2000, the proportion of Hispanic residents increased
' from 19 percent to 24 percent, while the proportion of White residents
decreased from 73 percent to 65 percent. In addition, approximately 21
percent of Palm Springs residents in 2000 were born outside the United
' States, with more than half immigrating from Latin America. While
immigration adds to the diversity of the community, educational background,
language skills and cultural traditions vary considerably. This may present a
' challenge for recent immigrants to find and access housing and information.
• Since 1990, the proportion of college aged (18-24 years) and young adults
' (25-44 years) in the community have declined. This age group typically
consists of students, recent college graduates, or people who have just
entered the job market. This indicates finding affordable housing and
employment opportunities may be a challenge for younger adults.
Page 6-1 City of Palm Springs
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CITY Of PALM SPRINGS Analysis of Imporlimonts to fair Housing Choico
• Approximately 43 percent of all households in Palm Springs fell within the
low or moderate income range (less than 80 percent of the area MFI). '
Income levels in the community varied considerably by ethnicity, household
type and tenure. '
• Compared to other racial and ethnic groups within Palm Springs, a higher
proportion of Hispanic households (64 percent) and African American '
households (61 percent) earned less than 80 percent of the area MFI.
• A larger proportion of elderly and large households are low and moderate ,
income (less than 80 percent of the area MFI) than any other household type
in Palm Springs.
• Among renter-households 61 percent earned less than 80 percent of the area '
MFI compared to 32 percent of owner-households.
• Elderly and large family renter households had the highest proportion of ,
households earning low and moderate income compared to other household
types. '
• Low and moderate-income areas in Palm Springs are primarily concentrated
in northwestern and central portions of the community. '
• Since 1990, the proportion of families with children living in poverty has
increased. In 2000, 1,068 families were estimated as living below the poverty '
level, representing 11 percent of all families in Palm Springs. Of these
families, 44 percent were married-couple families with children, 46 percent
were female-headed families with children, and 10 percent were male- '
headed single parent households.
• While the proportion (seven percent) of households living in overcrowded '
living conditions in 2000 has not increased since 1990, overcrowding in Palm
Springs varies considerably by tenure. Overcrowding affects a much higher
proportion of renter-households (14 percent) than owner-households (three ,
percent).
• Approximately 40 percent of all individuals within Riverside County that are '
currently living with HIV/AIDS reside in Palm Springs. Persons living with
HIV/AIDS sometimes face biases and misunderstanding about their illness that
may affect their access to housing. These individuals may also be targets for '
hate crimes.
• As is the case for many Southern California communities, with the exception
of mobile homes, home prices in Palm Springs are not affordable to lower
income households and only a limited number of homes are within the price
range of moderate income households. In terms of the rental market, the '
City of Palm Springs Page 6-2 '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
majority of rental housing is affordable to moderate and some low income
households. Rental housing is out of reach for very low income households
without incurring a cost burden while many larger rental units are not
affordable to low and moderate income households. It must be noted that
' while affordable housing is not a fair housing issue per se, escalating home
and rental prices within Palm Springs and the region have left many low
income households particularly the elderly, single-parent households, and
' seasonal workers increasingly unable to find adequate housing within Palm
Springs.
' Access to Financing
• While conventional home financing is generally available to Palm Springs
' residents, the majority of home purchase loan applications were originated
from upper income households earning more than 120 percent of the area
MFI. The loan approval rate for lower income applicants that earned less
than 80 percent of the area MFI was considerably lower than for upper
income applicants.
' Only a very small number of households utilized government-backed home
loans to achieve home ownership. This may be due to a lack of information
regarding these programs and also the home sales price limits under these
' programs. Also, conventional lenders have been successful in developing
loan products that are competitive with government home loans.
' The share of Hispanic households that applied for a conventional home
purchase loan in 2003 is underrepresented compared to the citywide
proportion of Hispanic households within Palm Springs.
• Among all conventional home loan applicants, Hispanic and African
American households had the lower approval rates and higher denial rates
' than other households in the community.
• Among upper-income and middle-income applicants, Hispanic and African
' American households had lower approval rates than White or Asian
applicants. However, among low-income applicants (households earning
between less than 50 percent of the MR, Hispanics had a slightly higher
' approval rate than other households.
• Approval rates differ significantly by lender. Among the top ten lenders active
' in the City, the discrepancy in approval rates was 39 percentage points in
2003.
' • Geographic differences in mortgage lending activities do not appear to be an
issue in Palm Springs. The overall approval rate for home loans originating
from moderate-income census tracts is slightly higher than loans originating
from upper-income tracts.
' Page 6-3 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Fair Housing Complaints and Services
• The largest proportion of fair housing complaints over the past five years '
relate to disability and race. At the Fair Housing Workshop held on October '
20, 2004, several residents commented that they had experienced fair
housing discrimination in the rental market based on race and religion at
Pacific Palms Apartments. '
• While the Fair Housing Council of Riverside County has actively distributed
information, promoted fair housing information within Palm Springs, and
provided workshops to various agencies near and within Palm Springs, the
Fair Housing Council has not recently conducted any resident community
workshops and training activities within Palm Springs.
■ Consistent with the City's demographics,, most complaints within Palm Springs
are made by White, Hispanic and African American residents. However, it '
appears that the proportion of complaints originating from African American
residents is slightly over-represented in that, the percentage of all complaints
filed by African American residents represent 10 percent and whereas,
African American residents represent four percent of the City's population.
• Fair housing complaints affected female-headed households to a much higher t
degree than male-headed households. In addition, the vast majority of fair
housing complaints in the City originated from low-income households.
• Of all the cases,investigated by the Fair Housing Council of Riverside County '
in the past four years, there is little information that tracts the outcome of fair
housing discrimination once it has been initially processed by the Fair '
Housing Council of Riverside County.
• The majority of landlord/tenant disputes handled by the Fair Housing Council ,
of Riverside County were related to evictions, repairs, and disputes over
leases or rental agreements. However, issues related to entering/harassment
increased noticeably in fiscal year 2003/04 compared to prior years. '
• The number of complaints related to occupancy standards showed a marked
decreased in fiscal year 2003/04 from previous years. '
• The Fair Housing Council of Riverside County conducted 14 tests in Palm
Springs in fiscal year 1999/2000. Of the tests, 111 were rental tests, two ,
were related to sales and one was based on lending. Of the 14 tests, five tests
showed findings of discrimination and all were rental tests. Of the five cases,
four were deferred to HUD and one was referred to a private attorney.
• According to the DFEH, a total of 18 cases in Palm Springs were opened from
fiscal year 1999 to 2003. Most cases were related to an AIDS related
City of Palm Springs Page 6-4 ,
1
' CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
disability, marital status, and sexual orientation. Of the 18 complaints
received, eight were closed with no probable cause, five were successfully
conciliated, and four were withdrawn without resolution.
' • According to the Fair Housing Survey distributed to Palm Springs residents,
among the five individuals that indicated they had experienced housing
discrimination or were not sure, the majority indicated that a landlord or
property manager had initiated the discrimination. Respondents indicated
that they had experienced housing discrimination based on race, age and
sexual orientation.
' • Of the five persons who indicated that they were discriminated against (or
were not sure), two persons reported the incidents. Of the three respondents
that did not report the incident, one person felt it was too much trouble,
while two didn't believe it would make a difference.
' • Comments provided at the fair housing workshop indicated that residents
have experienced fair housing issues related to landlords giving preferential
treatment to tenants of a particular race/ethnicity, landlord intimidation, lack
' of building maintenance and problems with security. Many of these concerns
raised were specifically related to the Pacific Palms Apartment complex. In
addition, the Fair Housing Council of Riverside County commented that rising
rental prices often affect senior households in Palm Springs and that
complaints regarding reasonable accommodation are frequent in Palm
Springs.
• According to FBI hate crime statistics and Palm Springs Police Department
Statistics, hate crimes consistently take place in Palm Springs. The majority of
' the hate crimes are based on sexual orientation/preference, followed by
racially motivated hate crimes.
' Public Policies
• The current Palm Springs zoning ordinance does not include a classification
' or definition for community care facilities or group homes and associated
provisions for permitting such uses.
' The current Palm Springs zoning ordinance does not include a classification
or definition for emergency shelters or transitional housing and associated
provisions for permitting such uses.
• Currently, the City permits accessory apartments through a Conditional Use
Permit process. This process needs to be revised to reflect changes in State
law that require such units be reviewed via a ministerial review process.
' Page 6-5 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
6.2 Actions
While the Al identifies a number of potential issues, certain issues are beyond the ability of a local jurisdiction to address,
such as those related to lending practices. The following actions represent those that can be feasibly addressed by the
City.
Summary of Actions and Benchmarks
To Proposed Year To Be
Be Addressed Responsible Entities Benchmark Investment Completed
Goals StraRFgrP3—I r Meet TITFUoals Assigned To Meet Goals
Housing and Expanding 1: The City will continue to provide Palm Springs Community Ongoing To be determined Ongoing
Household Affordable homeownership opportunities in the and Economic on an annual basis
Characteristics Housing community by promoting its Lease- Development Department
Opportunities Purchase Home Ownership - - -
Assistance Program. The City will
focus outreach efforts towards - -
moderate income households,
particularly to Hispanic households, -
since they have more difficulty
obtaining financing.
Housing and Expanding 2: The City will continue to facilitate Palm Springs Community Ongoing To be determined Ongoing
Household Affordable the development of housing for all and Economic on an annual basis
Characteristics Housing income groups within the Development Department
Opportunities community. Palm Springs will focus and Palm Springs
on facilitating affordable housing Department of Planning _
development through a combination Services
of financial and regulatory assistance.
City of Palm Springs Page 6-6
CITY OF PALM SPRINGS Analysis of Impediments to Fair Housing Choice
ProposedImpediment(s)To
Be Addressed Responsible Entities Benchmark Investment Completed
Goals Strategies To Meet The Goals Assigned To Meet Goals
Housing and Expanding 3 The City will work with the fair Fair Housing Service Hold one To be determined Annually-
Household Affordable housing service provider or other Provider and Palm Springs resident on an annual basis Ongoing
Characteristics Housing housing service agency to regularly Community and Economic workshop per
Opportunities hold a credit workshop(s)for Development Department year within Palm
households entering or re-entering Springs
the rental market and those entering
the home ownership market. Credit
history information, the apartment
rental process, home ownership
process and fair housing rights and
responsibilities will be discussed.
Housingand Rehabilitation 4: The City will continue to provide Palm Springs Community Ongoing To be determined Ongoing
Household Assistance rehabilitation assistance for owner- and Economic on an annual basis
Characteristics and rental housing in the community Development Department
through its Home Repair Program.
The City will ensure that information
about these programs be provided in
the City's brochures and
advertisements in English and
Spanish. The City will examine the
feasibility of providing information
about these programs in languages
other than English on the City's
website.
Housing and Access to 5: The City will work to expand its Palm Springs Community End of 2005 To be determined 2005
Household Information website to provide additional links to and Economic on an annual basis
Characteristics housing services and resources, such Development Department
as a link to the fair housing service
provider and a link to the Fannie
Mae Foundation that offers free
guides and resources for first-time
home buyers in English, Spanish, and
other languages.
Page 6-7 City of Palm Springs
CITY OF PALM SPRINGS Analysis of Impediments to fair Housing Choice
ProposedImpediment(s)To , Be
CompletedBe Addressed Responsible Entities Benchmark Investment
Goals StraWgWg'To Meet TIVIF'Go—als Assigned To Meet Goals
Public Policies Public Policies 6:As an ongoing effortthe City will Palm Springs City Council, Ongoing To be determined Ongoing
and Programs continue to pursue affordable Palm Springs Department on an annual basis
housing development programs of Planning Services, Palm
identified in the 2000-2005 Housing Springs Community and
Element. To the extent feasible, the Economic Development
City will facilitate the development of Department
housing affordable to lower and
moderate income households
according to the Regional Housing
Needs Allocation identified in the
Housing Element.
Public Policies Public Policies 7:The Palm Springs zoning Palm Springs City Council, End of 2005 None 2005
and Programs ordinance does not directly address Palm Springs Department
transitional housing and emergency of Planning Services, Palm
shelters. To address State law Springs Community and
requirements, as part of the zoning Economic Development
ordinance update, Palm Springs will Department
revise the zoning code to address the
placement of emergency shelters and
transitional housing in appropriate
zone(s). If a conditional use permit
process is required,the City will .
ensure that such process facilitates
compatibility of such facilities with
adjacent land uses and requires the
same findings as other special needs
housing.
City of Palm Springs Page 6-8
CITY OF PALM SPRINGS Analysis of Impediments to Fair Housing Choice
ProposedImpediment(s) To , Be
Be Addressed Responsible Entities Benchmark Investment Completed
Goals Strategies To Meet The Goals Assigned To Meet Goals
Public Policies Public Policies 8: 56520, effective 2002, requires Palm Springs City Council, End of 2005 None 2005
and Programs jurisdictions to analyze and remove Palm Springs Department
potential constraints to housing for of Planning Services, Palm
persons with disabilities. The current Springs Community and
Palm Springs zoning ordinance does Economic Development
not include a classification or Department
definition for community care
facilities. As part of the zoning
ordinance update,the City will
amend the zoning code to permit the
siting of residential/community care
facilities in an appropriate zone in
the community.
Public Policies Public Policies 9 The City will amend the zoning Palm Springs City Council, End of 2005 None 2005
and Programs ordinance to comply with State law Palm Springs Department
regarding the provision of second of Planning Services, Palm
units and density bonuses. Recent Springs Community and
changes in State law require local Economic Development
jurisdictions remove the conditional Department
use permit process for
second/accessory units Such units
must be approved via a ministerial
process when meeting the specific
conditions. In addition,the City will
update the City's density bonus
provisions to comply with SB 181&
Access to Financing Outreach to 10 The City will work with local Palm Springs Community 2006 To be determined 2006
Lenders lenders and government institutions and Economic on an annual basis
to provide outreach to lower income Development Department
residents about conventional and and local lenders
government-backed financing. The
City will encourage local lenders to
provide information in English and
Spanish.
Page 6-9 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Impediment(s)To Proposed Year To Be
Be Addressed
s Benchmark Investment Completed
. . GoalsMeet
Access to Financing Outreach to 11: The City will encouragelenders, Palm Springs Community 2006 To be determined 2006
Lenders particularly local lenders,to sponsor and Economic on an annual basis
home buying workshops in Palm Development Department
Springs. The City will encourage and local lenders
local lenders to provide information
in variety of languages including
English and Spanish.
Fair Housing Fair Housing 12: The City will work with the fair Palm Springs Community Hold workshops To be determined Annually-
Complaints and Services and housing service provider or other and Economic annually on an annual basis ongoing
Services Outreach housing service agency hold to Development Department
annually hold a fair housing and Fair Housing Service
educational training to local Provider
apartment associations and realtor
associations including the Inland
Valleys Association of Realtors, the
California Desert Association of
Realtors,the Palm Springs
Association of Realtors and the
Apartment Association of the Greater
Inland Empire. Workshops will
include fair housing law, rights and
responsibilities, and fair housing
resources,
Fair Housing Fair Housing 13: The City will discuss the Palm Springs Community Ongoing To be determined Ongoing
Complaints and Services and feasibility of encouraging the fair and Economic on an annual basis
Services Outreach housing service provider to annually Development Department
conduct testing on the rental, lending and Fair Housing Service
and home buying processes and Provider
report findings to the City.
City of Palm Springs
Page 6-10
r r r r r r r r r r r r r r r M r r r
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Impediment(s)To r ,r ,
Responsible Be
Be Addressed
Goals Strategies To Meet The Goals Assigned To Meet Goals
Fair Housing Fair Housing 14: The City will examine the Palm Springs Community Examine To be determined 2006—
Complaints and Services and feasibility of requiring developer of and Economic feasibility by on an annual basis ongoing
Services Outreach new housing in Palm Springs or new Development Department 2006 thereafter
owner of an existing rental property
to submit an affirmative marketing
plan or attend a fair housing
workshop.
Page 6-11 City of Palm Springs
1 Ciff Of PALM SPHINGS Analysis of Impediments to fair Housing Choice
1 7. Signature Page
1 I, David H. Ready, hereby certify that this Analysis of Impediments to Fair'
1 Housing Choice for the City of Palm Springs represents the City's conclusions
about impediments to fair housing choice, as well as actions necessary to address
any identified impediments.
1
David H. Ready Date
1 City Manager
1
1
1
1
1
1
i
i
f
1
1
1 City of Palm Springs Page 7-1
1pt Appendix A I
O • `gib.,., ; ,�';, �
Community outreach
This Analysis of Impediments to Fair Housing Choice (AI) has been developed to
identify ways to facilitate fair and equal access to housing for all Palm Springs
residents. As part of the development of the Al, the Palm Springs Community and
Economic Development Department conducted an extensive community outreach
program that included a community workshop for which the City invited
participation by residents, service providers, realtors, lenders, apartment
associations, apartment owners, managers and tenants. In addition, a community
survey designed to solicit issues regarding fair housing issues was distributed at each
community workshop, was available on the City's website, was mailed directly to
' approximately 160 service providers, and was available at the Palm Springs
Community and Economic Development Department. The survey was available in
both English and Spanish. Press releases regarding the workshop were sent to both
' the electronic and print media which included The Desert Sun, the Press
Enterprise, the Public Record (legal paper), Desert Post Weekly, television stations
(KMIR, KESQ, KPSI, I(VER Univision, KUNA Telemundo, and I(PSP Desert TV) and
' radio stations (Desert Radio Group and I(WXY).
Fair housing needs and issues identified by City staff, elected officials, lenders,
1 apartment owners, realtors, and service providers, as well as input from residents,
has been incorporated throughout the Al. This section, describes the community
outreach program conducted by the Community and Economic Development
tDepartment to help formulate the Al.
A.1 Community Workshop
' Approximately 160 public and private agencies either directly or indirectly involved
with fair housing issues in Palm Springs were invited to service providers, faith
based organizations, local housing and social service providers, financial
institutions, residential developers, Palm Springs City staff, members of the CDBG
Citizen Advisory Committee (CAC), and County government agencies.
' City of Palm Springs Page A-1
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choico
A community workshop was conducted in Palm Springs on October 20, 2004 for
the Al, after a direct mailing was sent to approximately 160 agencies. Several key
agencies were also contacted by email and information about the workshop and
fair housing survey was included on the City's website.
Representatives from the following agencies attended the workshop and provided
input:
• Palm Springs CDBG Citizen Advisory Committee
• Seasons at Meraflores _
■ Windermere Real Estate
• Sun Line Transit Agency
■ Desert AIDS Project
■ Interactive Design '
■ Fair Housing Council of Riverside County
• Riverside County Housing Authority '
■ Tahquiz Court Apartments
■ City of Palm Springs staff
In addition, residents were also present at to discuss fair housing concerns. '
Appropriate input from the workshop has been incorporated into the Al. The key
comments are provided below. '
• There is a vast amount of discrimination at Pacific Palms—specifically:
• A building manager prefers a special group (Spanish) '
• Building manager tries to intimidate tenants who are White, Black,
or seniors '
• Problems based on religion
• Security issues
• Called police department—told not to call '
• Complained but landlord retaliated
• Senior tenant was harassed — car was vandalized repeatedly
• Some tenants complained but did not follow up and pursue further
actions
• Lack of maintenance
■ Hate crime are often a result of sexual orientation. They are referred to a
Human Rights Commission and police. The City has been helpful. Hate
crimes related to housing has not been an issue. Following through is '
important.
■ The Riverside County Office on Aging and Riverside County Housing '
Authority has additional resources for seniors.
1
Page A-2 City of Palm Springs '
CITY Of PALM SPRINGS Analysis of Impediments to fair Housing Choice
Housing needs for hotel/casino/service workers are not being addressed. As
the City continues to expand the casino/hotel businesses, it needs to
provide low-income housing.
• Section 14 housing for workers — discussions with the tribal council to
provide housing for their workers
• Does the City plan to provide additional housing for seniors? The City does
not have a substantial amount of funding for housing.
• Two affordable housing projects are planned within Palm Springs. One is
for family housing and one is potentially for seniors. The City is also doing
some infill projects (single-family owner-occupied) and a special needs
project
• Some conventional home loans lenders don't deal with modular homes
because they are treated as commercial properties rather than real estate
' properties
Fair Housing Council of Riverside County
• The majority of complaints in Palm Springs from senior residents are
regarding rent increases. The City has no rent control so the Fair
t Housing Council of Riverside County can only make sure that proper
noticing is done.
• Disability complaints are also occurring in Palm Springs. Often for a
disabled person requiring "reasonable accommodation"
• A few disability complaints are HIV related
• We need to educate the landlords on the rights of a disabled individual
and what reasonable accommodation involves.
• Lending and home sales practices are not large issues in Palm Springs
• Section 8 Voucher issues are often related to the inability of not being
' able to find housing
• Source of income complaints are also occurring.
• Race is not a major complaint category
• Affordable housing for seniors is needed
• There are a large number of disabled and seniors residents in Palm Springs
as well as low-income service workers. The lack of affordable and available
housing is an issue. Existing residents cannot compete with seasonal
residents who have good credit and more disposable income.
City of Palm Springs Page A-3
CITY OF PALM SPRINGS Analpsis of Impediments to fair Housing Choice
A. 2 City of Palm Springs Fair Housing
Survey
To solicit information from residents on fair housing issues, the City developed a
fair housing survey which was distributed to Palm Springs residents, services
providers, and housing professionals.
The Fair Housing Survey sought to gain knowledge about the experiences that the —
community has had with fair housing issues and gain input on fair housing _
concerns. The survey consisted of eleven questions that gathered information
about whether or not a person has experienced housing discrimination and if so,the nature of the experience.
Since respondents could indicate multiple answers on a single questions, the
percentages on these multiple choice questions do not add up to 100 percent nor
do the total number answers add up to the total number of respondents. Some
respondents also omitted questions.
There were 12 responses to the fair housing survey. The surveys were from
residents representing two different zip codes. Of important note, three of the
survey respondents indicated that they resided at Pacific Palms Apartments and all ,
of those respondents indicated that they had experienced housing discrimination.
RespondentsTable A-1: Number of . .Total Respondents Respondents Not
Zip Code Sure if
Responses Discriminated Discriminatpd
92262 4 3 1
92264 8 1 -
Total 12 4 1 '
There were three times as many owners (nine respondents) than renters (three
respondents) that responded to the survey. Five of the respondents worked full- '
time and three respondents were retired. One of the respondents was
unemployed, one worked part-time, one worked at home and one worked in
another capacity. Other characteristics of survey respondents included:
1
1
Page A-4 City of Palm Springs
CITY Of PALM SPRINGS Analysis of Imporlimonts to fair Housing Chico
. .
Gender
Male 9 3
Female 3 2
Age
45-54 4 3
55+ 7 1
Not Listed 1 1
Ethnicity
Caucasian 12 5
Marital Status
1 Single 5 2
Married 1 0
Unmarried 4 1
Partner
Divorced 2 2
Total 12 5
Of the 12 responses, three persons felt that housing discrimination was an issue in
their neighborhood while nine respondents did not think that housing
discrimination was an issue. Four respondents indicated that they had experienced
housing discrimination, while one respondent was not sure if what they had
experienced was actually discrimination.
Among the persons indicating that they had experienced housing discrimination or
were not sure, four persons indicated that a landlord or property manager had
discriminated against them. One person identified a real estate agent as the source
of discrimination.
' i . You Believe Discriminated
Number Percent
Landlord/property manager 4 8007
Real estate agent 1 20%
Among the persons indicating that they had experienced housing discrimination or
were not sure, three respondents indicated that the discrimination they
experienced occurred in an apartment complex. One respondent indicated that
' the discrimination occurred in a single family home while another respondent
indicated that it took place in a condominium development.
' City of Palm Springs Page A-5
CITY Of PALM SPRINGS Analysis of Impodimonts to fair Housing Choice
Table . . the Act of Discrimination
Occur?
Number ercent
Apartment complex 3 60%
Single-family neighborhood 1 20% _
Condo development 1 20%
When asked on what basis they felt they were discriminated against, three
respondents indicating that they had experienced housing discrimination based on
race, two persons believe its was based on age, while one respondents believed it
was based on their sexual orientation.
The most common form of discrimination was denial of housing. One survey
respondent was refused rent by a property manager. Another indicated that '
discrimination took the form of being shown undesirable homes by the real estate
agent.
Table A-5: •n What Basis • . You Believe You Were '
• u � . _ . .
Race Number 3 60% '
Sexual Orientation 1 20%
Age 2 40% ,
Of the five persons who indicated they were discriminated against or who were not
sure, two individuals reported the incidents. Of the two persons that reported the '
incident, one person reported to the Fair Housing Council of Riverside County the
property manager, and the landlord. The other person reported the incident only
to the Fair Housing Council of Riverside County. There were no comments as to '
whether or not the incident was handled satisfactorily by the Fair Housing Council
of Riverside County.
Table A-6: . Did You Report • ,
Number
Fair Housing Council of Riverside 2 40%
Property Manager 1 20%
Landlord/Owner 1 200/0
The respondents who did not report the incident felt either that it was too much
trouble to report an incident (one respondent) or they didn't believe it would make
a difference (two respondents).
Page A-6 City of Palm Springs '
CITY Of PALM SPRINGS Analysis of Impadimonts to fair Housing Choice
Table A-7: Why Did You Not Report a Discrimination
Don't believe it makes a difference 2 40%
Too much trouble 1 20%
Of all respondents completing the fair housing survey, half (six persons) indicated
that they had experienced a hate crime. Half of those individuals (three
— respondents) indicated the hate crime was based on sexual orientation, one person
indicated that it was based on religion, one indicated that it was based on race and
one person believed it was age related.
Table A-8: What Was The Basis of the Hate Crime Committed
Race 1 17%
Religion 1 17%
Sexual Orientation 3 50%
Age 1 17%
1
' City of Palm Springs Page A-7
t
0 Fair Housing Workshop
A ao,,�
VALM
AN
`4 q<1F0RCl �
C`7J:a�r
Wednesday, October 20, 2004
2:OOPM to 4:OOPM
City Hall — Council Chamber
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
1 The City of Palm Springs' Community Development Block Grant (CDBG) Citizens Advisory
Committee (CAC) invites your participation in a workshop to discuss fair housing issues.
What is fair housing?
A condition in which individuals of similar income levels in the same
housing market have a like range of choices regardless of race, color,
national origin, ancestry, religion, sex, disability, familial status, marital
status, sexual orientation, source of income, or any other arbitrary factor.
The City is updating its 1996 Analysis of Impediments (AI) to Fair Housing Choice. All
parties, especially those of very low-to-moderate income and minorities, are welcomed to
present any concerns and suggestions.
' For information or special arrangements please contact:
Dale Cook, Community Development Administrator
323-8198, TDD 864-9527 or DaleC@ci.palm-springs.ca.us
1-4
-i1T 4
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Fair Housing Workshop
PALM
h fi
i
b".onen'`
rAL f FO Rt1\P
Wednesday, October 20, 2004
2:OOPM to 4:OOPM
City Hall — Council Chamber
I. Welcome..................................................Troy Butzlaff,
Assistant City Manager
II. Introductions,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,Dale Cook,
Community Development Administrator
III. Workshop Purpose,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,Dorothy Bowens,
CDBG Citizen Advisory Committee (CAC) Chairman
IV. Presentation............................................Veronica Tam, AICP,
Cotton / Bridges/Associates
What is Fair Housing?
® • Scope of Analysis—
■ Community Profile
Evaluation of Current Fair Housing Profile
Ways to Participate
Discussion Topics
Open Discussion
V. Adjournment
Fair housing is a condition in which individuals of similar income levels in the same housing
market have a like range of choices regardless of race, color, national origin, ancestry, religion,
sex, disability, familial status, marital status, sexual orientation, source of income, or any other
arbitrary factor.
5 ,
` c
F�ALMS
}; FOR IMMEDIATE RELEASE
c9(/FOM1N`P
n PIL
Workshop to discuss fair housing in Palm Springs set for Wednesday
Contact: Dale Cook
Community Development Administrator
City of Palm Springs
323-8198
l Oct. 18, 2004
The City of Palm Springs will conduct a workshop Wednesday afternoon to discuss fair
8 n n housing issues in the community.
I I I I The workshop will be conducted by the City's Community Development Block Grant
1 u u I Citizens' Advisory Committee from 2 to 4 p.m., in the City Council Chamber in City Hall.
Everyone is invited,especially persons of very-low to moderate-income and minorities. People
will be able to present any concerns they have about fair housing and offer suggestions.
n n n Fair housing is described as a condition in which individuals of similar income levels, in
au u the same housing market, have a like range of choices,regardless of race, color,national
origin, ancestry,religion, sex, disability, familial status,marital status, sexual orientation,
a source of income or any other arbitrary factor.
The City is in the process of updating its 1996 Analysis of Impediments to Fair Housing
bA '
Choice.
y``. More information about Wednesday's workshop is available by calling Dale Cook,the
City's community development administrator at 323-8198.
�a
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1
City of Palm Springs - Fair Housing Survey Page 1 of
�.
w ,.
�flan9' ` gi rds ° tty parhnonts� Service$ h'+
8 Fair Housing Survey
For Palm Springs Residents
a The City of Palm Springs is in the process of updating its 1996 Analysis of Impediments (AI) to
Fair Housing Choice.
'Fair Housing'is defined as 'a condition in which individuals of similar income levels in the
same housing market have a like range of choices regardless of race, color, national origin,
ancestry, religion, sex, disability, familial status, marital status, sexual orientation, source of
income, or any other arbitrary factor'.
This is an assessment report for the use of the federal Community Development Block Grant
(CDBG) funds that is encouraged by the United States Department of Housing & Urban
Development (HUD) in order to ensure that local governments consider the barriers to fair
housing within their respective communities, develop proactive approaches for addressing
those barriers, integrate those into the five-year strategic plan (called the Consolidated Plan or
ConPlan). The City's 2005 - 2009 ConPlan will be submitted to HUD in May 2005 for the five-
year combined funding source of approximately $3 million to address housing and community
development activities.
The 2004-AI updated report will re-examine the conditions and trends from the 1996 report,
concentrating on four areas - Public Policies Impediments, Lending Impediments, Fair Housing
Choice Impediments, and Accessibility Impediments. This new updated analysis is planned for
a winter 2004/2005 completion.
To guide us through this process, the City wants to hear about your experience with housing
discrimination. Please click on one of the following appropriate language links:
http://www.cbaplanning.com/palm-springs_cp/english.htm
or
http://www.cbaplanning_cocn/pal_m�sprin�7c s_cp/spanish.htrn
Top City of Palm Springs, All Rights Reserved webmaster@ci.palm-springs.ca.us Docs Search
1
kttp://ww-w.ei.palm-springs.ca.us/economic_development/fair housing_survey.html 10/6/200,
3 Fair Housing Workshop t Fair Housing Workshop �? Fair Housing Workshop
... sexual orientation,source of
The City of Palm Springs'Community What is fair housing? income or any other arbitrary factor.
Development Block Grant(CDBG) A condition in which individuals of similar
Citizens Advisory Committee(CAC) income levels in the same housing
invites your participation in a workshop to market have a like range of choices
discuss fair housing issues. regardless of race,color,national origin,
ancestry,religion,sex,disability,familial
status,marital status...
Fair Housing Workshop (V (5 Fair Housing Workshop Fair Housing Workshop
For Information or special
The City is updating its 1996 Analysis of Wednesday,October 20,2004 arrangements,please contact:
Impediments to Fair Housing Choice. All 2:OOpm to 4:OOpm Dale Cook,
parties,especially those of very low-to- City Hall—Council Chambers Community Development Adminisnalor
moderate income and minorities are 3200 Tanquitz Canyon Wa
welcome to present any concerns and y y 323-8196, TDD 864-9527 or
suggestions. Palm spnngs,CA 92262 DaleC@ci palm-springs.ca.us
T4 Fair Housing Workshop ?h � Fair Housing Workshop Fair Housing Workshop
What is fair housing? ... sexual orientation,source of
The City of Palm Springs'Community income or any other arbitrary factor.
Development Block Grant(CDBG) A condition in which individuals of similar
Citizens Advisory Committee(CAC) income levels in the same housing
invites your participation in a workshop to market have a like range of choices
discuss fair housing issues. regardless of race,color,national origin,
ancestry,religion,sex,disability,familial
,status,marital status... _
Fair Housing Workshop ` Fair Housing Workshop {sfiF !? Fair Housing Workshop
' �'"''' For information or special
The City is updating its 1996 Analysis of Wednesday,October 20,2004 arrangements,please contact:
Impediments to Fair Housing Choice. All 2:OOpm to 4:00pm Dale Cook,
parties,especially those of very low-to- City Hall—Council Chambers
moderate income and minorities are Community Development Administrator
welcome to present any concerns and 3200 7ahquin Canyon way 323-8196, TDD 864-9527 or
suggestions. Palm Springs,CA 92262
DaleC@ci.palm-springs.ca.us
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` .
Fair Housing Workshop Uc_ Fair Housing Workshop
The City of Palm Springs' Community What is fair housing?
Development Block Grant (CDBG) A condition in which individuals of similar
Citizens Advisory Committee (CAC) income levels in the same housing
invites your participation in a workshop to market have a like range of choices
discuss fair housing issues. regardless of race, color, national origin,
ancestry, religion, sex, disability, familial
status, marital status...
M sp M iw.
Fair Housing Workshop Fair Housing Workshop
... sexual orientation, source of
income or any other arbitrary factor. The City is updating its 1996 Analysis of
Impediments to Fair Housing Choice. All
parties, especially those of very low-to-
moderate income and minorities are
welcome to present any concerns and
suggestions.
M M M IM lily M M M lip M M ilk
lI.M Swp TILM s
4 Fair Housing Workshop Fair Housing Workshop
For information or special
Wednesday, October 20, 2004 arrangements, please contact:
2:OOpm to 4:OOpm Dale Cook,
City Hall —Council Chambers
Community Development Administrator
3200 Tahquitz Canyon Way 323-8196, TDD 864-9527 or
Palm Springs, CA 92262
DaleC@d.palm-springs.ca.us
LAR SUMMARY Printed On: 1110512004
Time: 08:48:37
Page: 1
Geographic Area:TRACT GROUP. PALM SPRINGS
INCLUDED Purpose:Home Purchase(1)
IN THIS Loan Type:Conventional(1)
ANALYSIS Owner Occupancy:All Owner Occupancy Codes
Criteria:ALL INSTITUTIONS
Year:2003 Analysis Perspective: HMDA
Total Applications Loans Originated Applications Approved Applications Applications Files Closed for Loans Purchased
Segment but not Accepted Denied Withdrawn Incompleteness
Number %Total Number %Apps Number %Apps Number %Apps Number %Apps Number %Apps Number
RACE:
Native 11 0.3 8 72.7 1 91 2 19.2 0 0.0 0 00 3
Asian 71 17 51 71.8 6 8.5 7 9.9 6 8.5 1 1.4 5
Black 75 1.7 41 54.7 10 13.3 21 28.0 2 2.7 1 1.3 2
Hispanic 338 79 197 58.3 27 8.0 88 26.0 20 5.9 6 1.8 57
White 3,131 72.8 2,263 72.3 240 77 375 12.0 207 6.6 46 1.5 322
Joint 74 17 44 59.5 8 108 13 176 7 9.5 2 2.7 10
Other 52 1.2 39 75.0 5 96 4 77 3 5.8 1 1.9 3
Not Available 551 12.8 305 55.4 64 11.6 101 18.3 66 120 15 27 374
GENDER:
i� Joint 1,009 23.4 715 70.9 79 7.8 120 119 77 7.6 18 1.8 111
Male 2,220 51.6 1,564 70.5 184 83 314 141 124 5.6 34 15 218
Female 846 19.7 552 65.2 71 84 133 15.7 78 9.2 12 14 109
Not Available 228 5.3 117 51.3 27 11.8 44 19.3 32 14.0 8 3.5 338
APPLICANT INCOME:
<50% 104 2.4 54 51.9 11 10.6 27 26.0 10 96 2 19 13
50% to,80% 310 T2 179 57.7 33 106 74 23.9 18 58 6 1.9 38
80% to<100% 315 7.3 192 610 32 10.2 69 219 19 6.0 3 1.0 47
100%to<120% 345 8.0 225 65.2 31 90 53 15.4 31 9.0 5 1.4 38
Z120% 3,032 70.5 2,174 71.7 229 7.6 371 12.2 210 6.9 48 1.6 297
Not Available 197 4.6 124 629 25 12.7 17 8.6 23 11.7 8 4.1 343
RACTINCOME
Low 0 0.0 0 00 0 00 0 0.0 0 0.0 0 0.0 0
Moderate 1,107 25.7 716 64.7 97 8.B 184 16.6 95 8.6 15 1.4 168
Middle 2,083 48.4 1,488 71.4 163 7.8 285 13.7 117 5.6 30 1.4 415
Upper 1,113 25.9 744 66.8 101 91 142 12.8 99 8.9 27 24 193
Not Available 0 0.0 0 00 0 0.0 0 00 0 0.0 0 0.0 0
TRACT MINORITY'
< 10% 681 15.8 455 668 69 10.1 86 126 53 7.8 18 2.6 131
>=10%to<20% 1,298 30.2 891 68.6 95 73 200 15.4 95 7.3 17 1.3 191
>=20%to<50% 1,751 40.7 1,233 70.4 149 85 223 127 118 67 28 1.6 359
>=50%to<80% 552 128 356 646 45 8.2 98 17.8 44 8.0 9 1.6 87
>=80% 21 0.5 13 61.9 3 14.3 4 19.0 1 4.8 0 0.0 8
Not Available 0 0.0 a 0.0 0 00 0 0.0 0 0.0 0 00 0
"OTALS: 4,303 100.0 2,948 68.5 361 8.4 611 14.2 311 7.2 72 1.7 776
Copyright Marquis 1989-2004
LAR SUMMARY Printed On: 1110512004
Time: 08:50:03
Page 1
Geographic Area:TRACT GROUP PALM SPRINGS
INCLUDED Purpose:Home Purchase(1)
IN THIS Loan Type:FHA-insured(2),VA-guaranteed(3), FSA/RHS-insured(4)
ANALYSIS Owner Occupancy:All Owner Occupancy Codes
Criteria:ALL INSTITUTIONS
Year:2003 Analysis Perspective: HMDA
Applications Approved Applications Applications Files Closed for
Total Applications Loans Originated but not Accepted Denied Withdrawn Incompleteness Loans Purchased
Segment
Number %Total Number %Apps Number %Apps Number %Apes Number %Apps Number %Apps Number
RACE:
Native 1 12 1 100.0 0 0.0 0 0.0 0 0.0 0 0.0 0
Asian 3 3.7 1 33.3 0 00 1 333 1 33.3 0 0.0 0
Black 4 4.9 1 25.0 0 0.0 2 50.0 0 0.0 1 25.0 3
Hispanic 32 39.5 22 68.8 1 3.1 4 12.5 2 6.3 3 9.4 16
White 30 37.0 22 73.3 4 13.3 4 13.3 0 0.0 0 0.0 16
Joint 2 2.5 2 100.0 0 0.0 0 00 0 0.0 0 0.0 2
Other 1 12 0 0.0 0 00 0 00 0 0.0 1 100.0 0
Not Available 8 99 5 62.5 1 125 1 12.5 0 0.0 1 12.5 20
GENDER:
Joint 46 56.8 28 60.9 5 10.9 8 174 3 6.5 2 4.3 22
11p�� Male 18 222 15 83.3 1 56 2 11.1 0 0.0 0 0.0 12
Female 14 173 8 57.1 0 0.0 2 14.3 0 0.0 4 28.6 6
Not Available 3 37 3 100.0 0 0.0 0 0.0 0 0.0 0 0.0 17
APPLICANT INCOME
<50% 5 6.2 2 400 0 00 1 20.0 0 0.0 2 400 3
50% to<80% 18 22.2 15 833 0 00 1 56 0 0.0 2 11.1 13
80% to<100% 19 235 13 68.4 1 53 4 21.1 0 0.0 1 5.3 6
100%to<120% 14 17.3 8 57.1 1 7.1 3 21.4 1 7.1 1 7.1 6
>=120% 23 28.4 15 65.2 4 17.4 2 8.7 2 8.7 0 0.0 8
Not Available 2 2.5 1 50.0 0 00 1 500 0 0.0 0 0.0 21
�TRACTINCOME'
Low 0 0.0 0 00 0 00 0 0.0 0 0.0 0 0.0 0
Moderate 27 33.3 13 48.1 2 7.4 6 22.2 2 7.4 4 14.8 10
Middle 52 64.2 39 750 4 7.7 6 11.5 1 1.9 2 3.8 46
Upper 2 2.5 2 100.0 0 0.0 0 0.0 0 0.0 0 0.0 1
Not Available 0 0.0 0 0.0 0 00 0 0.0 0 00 0 0.0 0
TRACT MINORITY:
< 10% 2 2.5 2 1000 0 00 0 0.0 0 0.0 0 0.0 1
>=10%to<20% 5 6.2 3 600 0 0.0 1 20.0 0 0.0 1 20.0 3
>=20%to<50% 48 59.3 30 62.5 5 10.4 7 14.6 3 63 3 6.3 40
>=50%to<80% 14 173 9 643 0 0.0 3 21.4 0 0.0 2 14.3 5
>=80% 12 14.8 10 833 1 83 1 83 0 0.0 0 00 8
Not Available 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 D 0.0 0
TOTALS: 81 1000 54 667 6 74 12 14.8 3 3.7 6 7.4 57
Copyright Marquis 1989-2004
LAR SUMMARY Printed On: 11/05/2004
Time 08:52.54
Page 1
Geographic Area:TRACT GROUP: PALM SPRINGS
INCLUDED Purpose:Home Improvement(2)
INTNIS Loan Type:Conventional(1)
ANALYSIS Owner Occupancy:All Owner Occupancy Codes
Criteria:ALL INSTITUTIONS
Year:2003 Analysis Perspective: HMDA
Applications Approved Applications Applications Files Closed for
Total Applications Loans Originated but not Accepted Denied Withdrawn Incompleteness Loans Purchased
Segment
Number %Total Number %Apps Number %Apps Number %Apes Number %Apps Number %Apps Number
RACE:
Native 4 1.5 1 250 0 00 2 50.0 1 25.0 0 0.0 0
Asian 3 1.1 1 33.3 1 33.3 0 0.0 1 33.3 0 RD 0
Black 6 22 1 167 2 33.3 2 33.3 1 16.7 0 0.0 0
Hispanic 23 8.5 7 30.4 2 8.7 9 39.1 4 17.4 1 4.3 0
While 150 55.1 41 27.3 21 140 68 45.3 13 8.7 7 4.7 0
Joint 6 2.2 2 33.3 1 16.7 2 33.3 0 00 1 16.7 0
Other 6 2.2 1 16.7 1 167 3 50.0 1 16.7 0 00 0
Not Available 74 27.2 19 25.7 6 8.1 33 44.6 13 17.6 3 41 6
ENDER:
Joint 74 27.2 24 324 11 14.9 29 39.2 6 8.1 4 5.4 0
Male 100 368 32 32.0 14 14.0 42 42.0 9 9.0 3 3.0 0
Female 48 176 11 229 3 63 22 45.8 12 25.0 0 00 0
Not Available 50 18.4 6 12.0 6 12.0 26 52.0 7 14.0 5 10.0 6
PPLICANT INCOME:
<50%u 25 9.2 2 80 3 12.0 18 72.0 2 80 0 0.0 0
50% Ic<80% 32 118 10 313 3 94 13 40.6 5 15.6 1 3.1 0
80% to<1000/u 33 12.1 6 18.2 2 61 19 57.6 4 12.1 2 6.1 0
1001%to<120% 41 15.1 7 17.1 7 17.1 19 46.3 8 19.5 0 0.0 0
>=120% 139 51.1 47 33.8 19 13.7 49 35.3 15 108 9 6.5 1
Not Available 2 07 1 500 1 00 1 11,1 0 0.0 0 0.0 5
FACT INCOME'
II Low o 00 0 00 0 00 0 0.0 0 0.0 0 0.0 0
Moderate 67 24.6 17 25.4 8 11.9 32 4T8 8 11.9 2 3.0 1
Middle 150 55.1 40 26.7 19 127 65 43.3 20 133 6 40 3
Upper 55 20.2 16 291 7 127 22 40.0 6 10.9 4 7.3 2
Not Available 0 0.0 0 00 0 0.0 0 0.0 0 00 0 0.0 0
TRACT MINORITY:
< 1n 19 7.0 6 316 2 10.5 9 47.4 1 5.3 1 5.3 0
>=10°/to<20% 57 21.0 19 33.3 8 14.0 20 35.1 6 105 4 7.0 2
>=20%to<50% 143 52.6 34 238 19 133 67 469 17 11.9 6 42 4
>=500/. to<80% 43 15 8 11 256 5 116 17 39.5 9 20.9 1 23 0
>=80% 10 37 3 30.0 0 0.0 6 600 1 10.0 0 0.0 0
Not Available 0 0.0 0 0.0 0 00 0 00 0 0.0 0 0.0 0
�OTALS. 272 100.0 73 26.8 34 12.5 119 43.8 34 12.5 12 4.4 6
Copyright Marquis 1989-2004
LAR SUMMARY Printed On, 11/05/2004
Time: 08:51:29
Page: 1
Geographic Area:TRACT GROUP: PALM SPRINGS
INCLUDED Purpose:Home Improvement(2)
IN
ICLUDE Loan Type:FHA-insured(2),VA-guaranteed(3), FSA/RHS-insured (4)
ANALYSIS Owner Occupancy:All Owner Occupancy Codes
Criteria:ALL INSTITUTIONS
Year:2003 Analysis Perspective: HMDA
Applications Approved Applications Applications Files Closed for
Total Applications Loans Originated but not Accepted Denied Withdrawn Incompleteness Loans Purchased
Segment
Number %Total Number %Apps Number %Apps Number %Apes Number %Apps Number %Apes Number
RACE
Native 0 0.0 0 0.0 0 00 0 00 0 00 0 0.0 0
Asian 0 0.0 0 0.0 0 0.0 0 0.0 0 00 0 0.0 0
Black 0 00 0 0.0 0 0.0 0 0.0 a 0.0 0 00 0
Hispanic 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0
White 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1
Joint 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0
Other 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0
Not Available 1 100.0 0 0.0 0 00 0 0.0 1 1000 0 0.0 0
GENDER.
Joint 0 0.0 0 00 0 0.0 0 0.0 0 0.0 0 0.0 1
Male 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0
Female 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 00 0
Not Available 1 100.0 0 0.0 0 0.0 0 00 1 1000 0 00 0
APPLICANT INCOME:
<50% 0 0.0 0 0.0 0 0.0 0 0.0 0 00 0 00 0
50% lo<80% 0 00 0 0.0 0 00 0 0.0 0 0.0 0 00 0
80% to<100% 0 0.0 0 0.0 0 00 0 0.0 0 0.0 0 00 0
100%to<120% 0 0.0 0 0.0 0 0.0 0 0.0 0 00 0 0.0 0
>=120% 1 100.0 0 0.0 0 00 0 00 1 100.0 0 0.0 0
Not Available 0 0.0 0 R1 0 0.0 0 00 0 00 1 0.0 1
RACT INCOME
Low 0 0.0 0 0.0 0 00 0 0.0 0 0.0 0 0.0 0
Moderate 0 0.0 0 0.0 0 0,0 0 0.0 0 0.0 0 0.0 0
Middle 1 100.0 0 0.0 0 0.0 0 0.0 1 100.0 0 0.0 1
Upper 0 0.0 0 0.0 0 00 0 0.0 0 00 0 0.0 0
Not Available 0 0.0 0 0.0 0 0.0 0 00 0 0.0 0 00 0
TRACT MINORITY.
� < 10% 0 0.0 0 00 0 0.0 0 0.0 0 0.0 0 0.0 0
>=10%to<20% 0 0.0 0 00 0 00 0 0.0 0 0.0 0 0.0 0
>=20%to<50% 0 0.0 0 0.0 0 0.0 0 0.0 0 00 0 0.0 1
>=50%to<80% 1 100.0 0 00 0 00 0 0.0 1 100.0 0 0.0 0
>=80% 0 0.0 0 0.0 0 0.0 0 00 0 0.0 0 0.0 0
Not Available 0 00 0 0.0 0 0.0 0 00 0 00 0 0.0 0
�OTALS: 1 100.0 0 0.0 0 0.0 0 0,0 1 100.0 0 0.0 1
Copyright Marquis 1989-2004