Palm Springs approves millions in funding for affordable housing project amid cost overruns

The first affordable housing project in Palm Springs in more than a decade is nearing completion, but not without challenges.

City leaders Monday approved millions more in funding to address cost overruns and supply chain issues plaguing the construction of The Monarch Apartment Homes.

City council unanimously approved an additional $2.2 million, bringing the total city investment in the Monarch to $4.8 million. The project, aimed at providing affordable housing options to individuals earning 60 percent of the average median income or less than $55,000 annually, now has a total price tag of up to $39 million.

Greg Rodriguez, Deputy Director for the Riverside County Housing Workforce Solutions Department, said the Monarch project is funded by multiple sources. The city's latest investment served as a bridge for funding, ensuring the project could continue moving forward.

"We really want to think broadly and make sure that people who work in Palm Springs can afford to live in Palm Springs," said Councilmember Christy Holstege.

With just 60 units available, the demand for affordable housing in Palm Springs is starkly evident. The Monarch already has a waitlist of more than 500 people, with nearly a third of them being Palm Springs residents. However, officials clarified that anyone can be considered for housing in the project.

Rodriguez said the county has been proactive in tackling the affordable housing crisis, with plans to increase affordable housing production by 400% over the last two years.

Currently, the Monarch Apartment Homes project stands at 70% completion, and full occupancy is anticipated by the end of the year.

Officials encourage those seeking affordable housing to consider other upcoming developments, as there are at least two more projects in the works in Palm Springs.