Palm Springs allocates $3 million to house low-income residents in permanent housing

The city of Palm Springs has unanimously approved allocating $3 out of $10 million in state funding it received to a low-income permanent housing project. Officials are currently considering whether to convert Ivy Palm Resort at 2000 N Palm Canyon Drive into apartments that could house individuals and families.

"It’s not a shelter, it’s not a drop-in facility. It’s basically a facility for really low-income housing," Public Policy Advisor for Riverside County Supervisor V. Manuel Perez, Greg Rodriguez said.

The opportunity emerged from COVID-19 relief funds. Under California's Homekey grant program $550 million is available through the state's allocation of federal coronavirus aid. Public entities can apply for grants to transform hotels, motels and buildings into long-term housing facilities.

"We’ve gotten them off the street whether they’ve gone through a shelter program or substance use treatment and they’re ready to have their own home, we just don’t have the doors so this is a fantastic opportunity," Rodriguez said.

The county is now working on deadline to secure state funding. The first portion for priority applications are due on August 13. According to the state, "awards are made on a rolling basis through fall 2020."

The Palm Springs city council has already committed $3 million of $10 million dollars to the project. It received funds from the state to designate toward homelessness relief.

"We’re required by the state to have certain amounts of affordable housing like everybody is. Obviously homelessness is an issue in our community. This is not a shelter, it’s affordable housing," Palm Springs City Manager, David Ready said.

Businesses near Ivy Palm Resort have been made aware of the potential project. While some understand the concept, they have begun to voice some of their concerns.

"I understand that they want to help people who have had difficult times in their lives, but having it here across the way from our hotels and restaurants up here- the city needs to have a much better option as far as location where it doesn’t affect local businesses here," Rick's Restaurant manager, Adaline Scidner said.

The restaurant has already taken a hit due to COVID-19. Scidner is unaware how this could further impact business.

"There is no plan, there is no management scheme, there is no operation scheme, there is no plan, that’s the problem," Infusion Beach Club owner, Christopher Rosas said.

Rosas' hotel is adjacent to Ivy Palm. He believes the city and county are rushing into the project.

"I’m actually a supporter of a Delancey Street-type of project. If the city and county had done a better job on outreach I think they could have a good project," said Rosas.

Meanwhile the county said it is working to provide comprehensive outreach to nearby businesses.

Rodriguez said Ivy Palm is the preferred location because it will require less renovations and could provide up to 85 apartments. He said a manager will be on site 24/7, while case management and behavioral health workers will also be available through the county.

The project aims to largely house seniors and residents who are disabled. Others will be provided support to re-enter the workforce.

"On site there’s a restaurant that will need some rehabilitation but there’s a great opportunity to partner with our local hospitality industry for our workforce development type site," said Rodriguez.

The state requires that funds be spent and project escrow must close by December 30.

Rodriguez is worried about the deadline, considering the state's turnaround time for funding, escrow, and building renovations. He believes some residents will get housed by the end of the year. The project in full is estimated to cost $20 million.