HomeMy WebLinkAboutInfo Rprt - Affordable Housing StrategiesSTAFF REPORT •
CITY OF PALM DESERT
COMMUNITY DEVELOPMENT DEPARTMENT
MEETING DATE: October 11, 2018
PREPARED BY: Ryan Stendell, Director of Community Development
REQUEST: Receive and file an informational report, and provide direction related to
affordable housing strategies within the City of Palm Desert.
Recommendation
By Minute Motion:
1. Receive and file informational report related to the City's current policy on
affordable housing.
2. Provide direction to staff related to potential strategies concerning housing
affordability within the City.
Strategic Plan
Land Use Housing and Open Space Priority #2: Facilitate development of high -quality
housing for people of all income levels.
Having a clear affordable housing policy aids in achieving the above referenced goal, by
planning for high -quality housing for people of all income levels.
Background Analysis
Certified Housing Element (Planning Period of 2014-2021):
On May 12, 2011, and pursuant to state law, the City Council adopted Resolution No. 2011-
24 approving an updated Housing Element for the 2014-2021 planning period. The Housing
Element is designed to guide the City's elected and appointed officials, as well as City staff
and the general public, in locating and constructing housing to accommodate all segments of
the community. The Housing Element is one of the State mandated components of the City's
General Plan and is the only one that requires an update every five (5) years. The Housing
Element is also the only element of the General Plan that requires review and approval by
the State of California, specifically the Department of Housing and Community Development
(HCD).
The State prepares the Regional Housing Needs Assessment (RHNA), which represents a
required number of housing units, by income level, that the State believes the City will need
to meet the demands of growth during each planning period. With every planning period,
changes in the law require that the City incorporate new information. In the 2006-2014 cycle,
the City was required to identify the parcels available for affordable housing, and demonstrate
October 11, 2018 - Staff Report
Information Report: Affordable Housing
Page 2 of 4
that they have sufficient land to accommodate the RHNA units in the very low, low, and
moderate -income categories. This analysis required the City to rezone lands at a density of
20 units per acre or more. In 2012, the City identified twenty-two (22) vacant parcels that were
re -zoned to satisfy this requirement.
Cities are legally mandated through their housing elements to plan for their RHNA allocation.
Since cities do not control the production of housing units, the current obligation ends with
having a Housing Element that is certified by HCD. However, recent legislation demonstrates
that the State may be looking towards RHNA as a requirement in the future (summary of
recent legislation is attached to this report).
The current RHNA (2014-2021) allocation to the City is as follows:
• Above Moderate Income: 172
• Moderate Income: 76
• Low Income: 67
• Very Low Income: 49
• Extremely Low Income: 49
Total units to meet RHNA: 413
2013 Policy Memo:
In 2013, in an attempt to achieve the City's RHNA allocation, staff developed a policy (copy
attached) requiring all housing projects larger than five -acres to provide the total number of
units as required by the Housing Element, with 20% of those units to be deed restricted and
available to persons with low and very low income levels. The mix of affordability levels are
determined on a case -by -case basis considering product type and location.
Councilmember Request for Action:
At the City Council meeting of June 14, 2018, Mayor Jonathan requested under City
Councilmembers' Request for Action that staff provide answers to four questions as they
related to the City's current policy of Affordable Housing:
1. How does our current policy compare to other valley cities?
Community Development Department staff reached out to other Valley cities to
discuss their attempts to achieve affordable housing development within their
jurisdiction. Of the cities that responded, all stated that construction of new affordable
housing units has severely slowed due to the elimination of Redevelopment Agencies.
None of the cities have adopted an inclusionary housing requirement and most pursue
affordable housing through working with affordable housing developers to find suitable
sites and funding opportunities (when available). Below is a summary of the
jurisdictions and the responses they provided:
October 11, 2018 - Staff Report
Information Report: Affordable Housing
Page 3 of 4
. r;ovt
Coachella None
Negotiate affordability through Specific Plans and
Development Agreements.
La Quinta None Work with local/national affordable developers on
sites specified in the Housing Element.
Indian Wells None No current actions in place.
Rancho Mirage None No current actions in place.
Cathedral City None Zoned appropriate lands for this use, no other
actions taken.
Palm Springs None Direct developers to State programs, but there is no
robust program.
Desert Hot None Did not respond.
Springs found
2. Has our policy been consistently applied?
Since 2013, Community Development Department staff has consistently applied the
policy to pursue affordable housing on projects that have requested approval of a
change of zone or specific plan application. Although the policy has been consistently
applied, the outcome of the policy has not achieved consistent results, with which
many developers express frustration. Project in -lieu fees have ranged from $1.00 a
square foot to $12.50 a square foot, and on -site housing has ranged from developers
setting aside land for future affordable housing development or providing up to 20%
of units within a project as affordable units.
3. Is our policy effective or is it deterring development?
It is hard to say if the policy is deterring development, as there are several factors with
the prime concerns being financial implications and additional time spent on
negotiations.
Financial Implications:
It is routinely communicated to staff that the financial implications of affordable
housing exactions render projects infeasible. Whether that statement is true or
not is unique to each project. While the current policy has resulted in the
condition of approval or collection of in -lieu fees for affordable housing
developments, the policy as drafted in 2013 has not yielded the construction of
any new affordable units.
Project Timing Implications:
Again, many developers express a similarity in the statement, "time is money"
regarding the development process. The City has always placed a high
October 11, 2018 - Staff Report
Information Report: Affordable Housing
Page 4 of 4
importance on processing applicants expeditiously; however, the application of
the policy has resulted in a lengthened entitlement process. Since each
negotiation under this policy is unique, the development process often slows
while each project's financial model is studied and a staff recommendation is
formed.
4. Is there a better way to do this?
This is most certainly a policy question from which staff will need direction from the
City Council. The answer likely lies in how aggressive the City Council wishes to be
on attempting to create new deed restricted affordable units. Staff would recommend
the City Council provide direction as how it would rank the desire to create new
affordable units (i.e. high, medium, low priority). With the direction received staff can
evaluate our current policy for any potential modifications.
Legislative Updates:
In 2017, in order to aid in the production of housing development in the State, the Governor
signed 14 bills related to housing policies in the State. Many of the bills strengthen the
authority granted to the HCD to report jurisdictions that violate State Housing policy. Other
bills are intended to streamline the planning approval process for the development of new
housing with affordable units, and other bills establish a financing mechanism to aid in the
production of new affordable housing developments. A summary of each bill is provided as
an attachment to this report.
Fiscal Analysis
There is no fiscal impact resulting from this report.
LEGAL REVIEW
N/A
Robert Hargreaves,
City Attorney
DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
Ryan Stendell
Director of Community
Development
t Moore
Director of Finance
ATTACHMENTS: 1. City Council Minutes from June 14, 2018
2. 2013 Policy Memo on Affordable Housing
3. Legislative Update Matrix
4. Palm Desert Certified Housing Element
Lauri Aylaia
City Manager
MINUTES
REGULAR PALM DESERT CITY COUNCIL MEETING JUNE 14, 2018
Councilmember Harnik moved to add Request for Consideration of Assembly
Bi111405 (Advance Digital Network Act) and place under New Business - Item J. Motion
was seconded by Kelly and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber,
and Jonathan; NOES: None).
2. Affordable Housing In -Lieu Fee Policy - Mayor Jonathan requested a
staff report regarding this policy as he's been receiving comments
about it. The concern is always if it's effective, efficient, and fair. It's
been about four years since that's been reviewed, so it would be
appropriate to look at it now. Specifically, how does Palm Desert's
policy compare to other cities in the Coachella Valley. Secondly,
looking at the fees imposed, and what is its history, and has it been
applied consistently. Thirdly, is the policy effective or is it deterring
development. Fourth, is there a better procedure, whether that is
setting a specific fee or rate. In other words, is Palm Desert's policy
the best given those goals and objectives. Fortunately, there is no
huge rush for this, because he knew staff was already overloaded.
G. City Council Consideration of Travel Requests/Reports.
None
Xl. STAFF REPORTS AND REMARKS
A. City Manager
1. City Manager's Meeting Summaries Report for the Period of
May 14 - June 1, 2018.
With City Council concurrence, the Meeting Summaries Report was received and
filed.
2. City of Palm Desert Internship Program - she welcomed and
recognized the following two new Interns at City Hall:
Justus Swaiian attended Palm Desert High School, College of
the Desert, University of Southern California, and next year he
will be attending University of San Diego to study law. He will
be an intern in the Community Development Department this
summer.
Councilmember Harnik noted that in Mr. Swajian's years in
school, Kindergarten through 12th grade, he never missed a
single day of school.
10
Create and Preserve Affordable Housing
Streamline Housing Development
Bill
Number
SB 2
SB 3
EXHIBIT "A"
Housing Legislative Summary
Bill Name
Building Jobs and
Homes Act
Veterans and
Affordable Housing
Bonds Act
AB 1505 Inclusionary Ordinance
AB 1521
Preserve the Existing
Affordable Housing
Stock
AB 571 Low Income Housing
Credits for Farmworker
SB 35 Streamline Approval
Process
AB 73 Streamline and
Incentive Housing
Production
Bill Summary
Imposes a recording fee on all real estate
transactions. Funds collected in 2018 are split
between local planning grants and programs to
address homelessness. 70% of funds collected after
2018, will be allocated to local governments in a
competitive process. 15% will be allocated to HCD to
assist in the development of farmworker housing
and programs to incentive affordable housing. 15%
will be allocated to CalHFA to assist mixed -income
multi -family developments.
Places $4 billion general obligation bonds on the
November 2018 ballot. $3 billion of proceeds are
dedicated to assist new housing developments. $1
billion in proceeds are dedicated to CalVet for home
purchase assistance to veterans.
Authorizes a City or County to require a certain
amount of low-income housing on -site or off -site as
a condition of the development of residential rental
units.
Requires sellers of subsidized housing
developments to accept a bona -fide offer to
purchase from a qualified purchaser if specified
amounts are met. Provides authority to HCD to track
and enforce.
Modifies the State farmworker housing tax credit to
increase use.
Establishes a streamline approval process for
developments in localities that have not yet met
their housing targets if: the development is on an in -
fill site and complies with existing zoning standards.
Developers must provide 10% of units for lower -
income families. All projects over 10 units are
required to pay prevailing wage.
Opt -in program for localities and developers.
Provides state financial incentives to cities and
countries that create a zoning overlay district with
streamlined zoning. Development projects must use
prevailing wage and include a minimum amount of
affordable units.
Accountability and Enforcement
SB 540 Workforce Housing Opt -in program for localities. Authorizes the state to
Opportunity Zones provide planning funds to city/counties to adopt a
specific Housing Development Plan that minimizes
project level environmental review. Requires at
least 50% of total housing units within the plan to be
affordable to persons or families at or below
moderate income, and 10% of total units affordable
for Tower -income households. Projects must use
prevailing wage.
AB 678 Strengthen the Strengthens the Housing Accountability Act by
Housing Accountability increasing the documentation necessary and the
Act standard of proof required for a local agency to
legally defend its denial of low -to -moderate income
housing development projects, and requires courts
to impose a fine of $10,000 or more per unit on local
agencies that fail to legally defend their rejection of
affordable housing developments.
AB 1515 Reasonable Person States that a housing development conforms with
Standard local land use requirements if there is substantial
evidence that would allow a reasonable person to
reach that conclusion.
AB 72 Enforce Housing Authorizes HCD to find a jurisdiction out of
Element Law compliance with state housing law, and refer
violations of the Attorney General.
AB 1397 Adequate Housing Requires cities to zone more appropriately for their
Element Sites share of regional housing needs and in certain
circumstances require by -right development on
identified sites.
SB 166 No Net Loss Requires a city/county to identify additional low-
income housing sites in their housing element when
market -rate housing is developed on a site currently
identified for low-income housing.
AB 879 Reporting Bill Makes various updates to housing element and
annual report requirements to provide data on local
implementation including number of project
application and approvals, processing times, and
approval process. Charter cities are no longer
exempt from housing reports.
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
INTEROFFICE MEMORANDUM
To: Lauri Aylaian, Director of Community Development
Janet Moore, Director of Housing
From: John M. Wohlmuth, City Manager
Date: November 14, 2013
Subject: Policy Direction for Housing Development
Background
RECEIVED
Nov 1 9
CITY OF PALM DESERT
tiousing Dewlment
The City of Palm Desert has been put in a dilemma in the area of affordable housing by
requirements of the State of Califomia coupled with obligations imposed by the
Stipulation for Entry of Judgment for Case 51124 (the "Stipulation"). The combined
requirements of the two mean that approximately 60 percent of all residential housing -
both single family and multl-family--remaining to be developed in Palm Desert needs to
be deed restricted to be affordable to people of extremely low, very low, low, and
moderate income. City staff members have been explaining these requirements to
interested developers for several years now, to which the developers have unanimously
responded that the affordability requirements make their projects
infeasible. Consequently, no new residential tracts have been entitled -either affordable
or market rate -in over four years, despite the rebound in the economy.
al
The City of Palm Desert seeks to allow residential development to resume such that:
• New affordable housing can be created.
• New market -rate housing in a variety of product types can be developed.
• A blend of affordable and market -rate housing that reflects the type and nature of
jobs in the community is created, preventing pockets of low-income, high crime
neighborhoods in the city.
• New residential neighborhoods are in close proximity to the amenities and
services that are necessary for their residents.
Policy Direction for Housing Development
Page 2 of 2
November 14, 2013
Policv
In order to strike a balance between the City's two goals of providing affordable housing
and allowing market rate development to occur, and to provide housing that is
affordable for the people who work within the City of Palm Desert, developers of multi-
family projects and single-family residential tracts larger than five acres in size (which in
Palm Desert generally refers to projects in the Northern Sphere) will be asked to:
• Provide on their property the full number of housing units identified in the
Housing Element Inventory of Vacant Lands.
• Deed restrict 20 percent of the required housing units such that they are
affordable to persons with low and very low income. The mix of affordability
levels will be determined on a case -by -case basis, giving consideration to
product type and location.
• Provide a housing product that is appropriate to the location of their particular
property. (As examples: smaller units with fewer bedrooms near the university;
modest -sized units with more bedrooms near the future elementary school site;
and senior or age -restricted units near health care, grocery stores, and
transportation).
• Provide the foregoing without financial contribution or participation from the City.
Because the City will benefit from the distribution of affordable units throughout all
properties identified in the Housing Element Inventory of Vacant Lands, payment of fees
in lieu of providing affordability in developments will not be recommended for
acceptance.
If the property owner insists that these requirements will render their property valueless,
then they will be required to follow the procedures described in Palm Desert Municipal
Code Chapter 25.34.140, Exceptions Based on Unconstitutional Takings. The economic
information submitted according to the application procedures in this section of the code
will be used as the foundation for a public hearing in front of the Planning Commission;
the Commission will decide If an exception should be granted to allow development of
the project with less (or no) affordable housing.
This po icy will be reviewed at such time as new State law goveming provision of
affo • = • : h • sing is passed and/or the Stipulation is amended In any material way.
ili
JO M. WOHLMUTH, CITY MANAGER
CAIJaanOniectosiMpeDalatecePalleresaftWentloasWarnponify InfernalFlIes1Ccetant.o aJAVxB1N\Wohlmuth - Housing Direction 11-
14-13.docx
TN/City of Palm Desert
General Plan/Housing Element
HOUSING ELEMENT
PURPOSE
Providing all residents of Palm Desert with a safe and affordable residence is the ultimate goal of
this Element. The Housing Element is designed to guide the City's elected and appointed
officials, as well as City staff and the general public, in locating and constructing housing to
accommodate all segments of the community.
The City has been active in adding to its inventory of affordable housing units in the 2006-2014
planning period, and continues to strive to provide quality housing for all its residents.
BACKGROUND
The Housing Element works hand in hand with the Land Use Element to balance the land uses
available in the City to accommodate future growth. Land use designations are designed to
accommodate all types of housing, to allow for the development of single family and multi-
family units to meet the needs of the City's residents, now and in the future. The Housing
Element includes a description of existing housing types, condition of existing units,
overcrowding, overpayment, special housing needs, and the demand for affordable housing in
the City. The Element also includes an analysis of the progress made since the drafting of the last
Housing Element, and projections of needs for the 2014-2021 planning period.
California Law
California Government Code requires that every City and County prepare a Housing Element as
part of its General Plan. In addition, State law contains specific requirements for the preparation
and content of Housing Elements. According to Article 10.6, Section 65580, the Legislature has
found that:
(1) The availability of housing is of vital statewide importance, and the early attainment of
decent housing and a suitable living environment for every California family is a priority
of the highest order.
(2) The early attainment of this goal requires the cooperative participation of government and
the private sector in an effort to expand housing opportunities and accommodate the
housing needs of Californians of all economic levels.
(3) The provision of housing affordable to low and moderate income households requires the
cooperation of all levels of government.
(4) Local and state governments have a responsibility to use the powers vested in them to
facilitate the improvement and development of housing to make adequate provision for
the housing needs of all economic segments of the community.
Housing Element
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(5)
TN/City of Palm Desert
General Plan/Housing Element
The legislature recognizes that in carrying out this responsibility, each local government
also has the responsibility to consider economic, environmental, and fiscal factors and
community goals set forth in the General Plan and to cooperate with other local
governments, and the state, in addressing regional housing needs.
Section 65581 of the Government Code states that the intent of the Legislature in enacting these
requirements is:
(1) To assure that local governments recognize their responsibilities in contributing to the
attainment of the State housing goal.
(2) To assure that cities and counties prepare and implement housing elements which, along
with federal and State programs, will move toward attainment of the State housing goal.
(3) To recognize that each locality is best capable of determining what efforts are required by
it to contribute to the attainment of the State housing goal as well as regional housing
needs.
(4) To ensure that each local government cooperates with other local governments to address
regional housing needs.
Government Code Section 65583 outlines the required content of all housing elements including
identification and analysis of existing and projected housing needs, and a statement of goals,
policies, quantified objectives, and scheduled programs for the preservation, improvement, and
development of housing. Specific requirements include the following:
(1) An assessment of housing needs and an inventory of resources and constraints relevant to
the meeting of these needs. The analysis should include population and employment
trends; documentation of household characteristics; inventory of land suitable for
residential development; governmental and other constraints to new housing
development; analysis of any special housing needs and an assessment of existing
affordable housing developments.
(2) A program which sets forth a five-year schedule of actions the local government is
undertaking or intends to undertake to implement the policies and achieve the objectives
of the housing element in order to meet the housing needs of all economic segments of
the community.
Since the last planning period, Government Code Section 65583 was amended by Senate Bill
812 which requires the Housing Element to include identification and analysis of special housing
needs for individuals with developmental disabilities within the City.
California law also requires that the Housing Element be consistent with the balance of the
General Plan. The update of the Element was considered in the context of the balance of the
General Plan, and found to be consistent. Any future amendment of any portion of the General
Plan, including this element, will be analyzed to assure internal consistency.
In accordance with Senate Bill 244, the General Plan Land Use Element has been updated to
describe disadvantaged unincorporated communities (DUC). There are no DUCs in Palm
Desert's Sphere of Influence. In accordance with SB 5 and AB 162, the General Plan Flooding
Housing Element
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TN/City of Palm Desert
General Plan/Housing Element
and Hydrology Element was reviewed. No change in flood zones has occurred in the City, and
no housing is planned on any site identified as a flood zone.
Evaluation of Existing Housing Element Policies and Programs
Goal 1
A variety of housing types that meet all of the housing needs for all income groups within the
City.
Goal 2
The preservation and maintenance of the high quality of the City's affordable housing supply.
Policy 1
New affordable housing projects shall be encouraged in all areas of the City. Special attention
will be made to distributing the units so that large concentrations of affordable housing in any
one area are avoided.
Program 1.A
The Agency shall implement the following affordable housing projects for extremely low, very
low, low and moderate income households during the planning period:
• 31 units at Canterra Phase II
• 21 units at Emerald Brook
• 200 units at Dinah Shore and Portola
• 72 units at Carlos Ortega Villas
• 16 units at Sagecrest Apartments
Responsible Agency: Redevelopment Agency
Schedule: 2010-2014
Evaluation: These projects were planned to be implemented prior to the elimination of the Palm
Desert Redevelopment Agency (RDA). Due to its elimination, most of these projects were placed
on hold. Canterra 11 and Emerald Brook are privately owned and not yet developed, nor does the
City have control of when these projects will be implemented. Sagecrest Apartments was placed
on hold because proposed funding for the project was eliminated and it is uncertain how this
project will be developed. Carlos Ortega Villas is currently in progress as an affordable senior
housing project through the City. These projects can continue to contribute to the City's
affordable housing stock, and will remain in the City's Land Inventory for the 2014-2021
planning period.
Program 1.B
The Agency shall pursue the planning and implementation of the following projects for
extremely low, very low, low and moderate income households during the planning period:
• 520 units that will include single family for -sale and multi -family for rent units at Gerald
Ford Drive and Portola
• an additional 51 units at the Vineyards
Housing Element
I11-3
TN/City of Palm Desert
General Plan/Housing Element
Responsible Agency: Redevelopment Agency
Schedule: 2010-2014
Evaluation: These projects were not implemented prior to the dissolution of the RDA. Although
the Vineyards is developed and operational, the City did not elect to subsidize the additional
rental units due to funding constraints, and it is unclear whether funding will be available in the
future. These projects can continue to contribute to the City's affordable housing stock, and will
remain in the City's Land Inventory for the 2014-2021 planning period.
Program 1.0
The City shall encourage and facilitate the development by private parties of the following
projects for extremely low, very low, low and moderate income units:
• 432 units at Key Largo
• 194 units at Frank Sinatra and Cook Street
• Approximately 302 units at Dinah Shore and 35`h Avenue (southeast corner)
• 52 units at Frank Sinatra and Cook Street ("The Vineyards" / northwest corner)
The City shall annually contact the owners/developers of these lands and review with them the
City and Agency incentives, and financing options available through the Redevelopment
Agency, State and federal loan and grant programs, and local non-profit agencies to assure that
all potential financial mechanisms are being considered for the project(s).
Responsible Agency: Redevelopment Agency
Schedule: 2010-2014
Evaluation: These projects were not implemented prior to the elimination of the Palm Desert
RDA. As a result of RDA elimination, affordable housing through tax increment was also
eliminated. While the City designated the Palm Desert Housing Authority as the successor
housing entity to primarily preserve affordability of its current portfolio, funding is limited to
revenues derived from the properties (rents, sales, payoffs, etc.). The City has regularly met with
developers seeking assistance in the development of affordable housing units on these and other
properties. However, because the City no longer has the ability to offer financial assistance, it
now refers developers to State and federal programs and private lenders. These projects can
continue to contribute to the City's affordable housing stock, and will remain in the City's Land
Inventory for the 2014-2021 planning period.
Program 1.D
The Agency shall continue to implement the Self Help Housing program, and shall identify 15
households to be assisted by the program in this planning period.
Responsible Agency: Redevelopment Agency
Schedule: 2006-2014
Evaluation: The RDA conducted a Request for Proposal (RFP) for the Merle Street Self Help
Project in July 2009. The Agency offered the 14 lots to developers and non-profit groups with
experience in self-help programs to build homes utilizing the "sweat equity" of qualified low
income homebuyers, and its upfront investment was to be the donation of the value of the lots.
However, there were no responses to the RFP. Staff believes that the lack of response was
Housing Element
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TN/City of Palm Desert
General Plan/Housing Element
related to a lack of funding options available at the time (i.e. federal and state tax credits). 1t is
unlikely that this program -can be implemented without the reinstitution of housing set aside
funds.
In order to continue this program, the City purchased the 14 lots in 2010. At such time as the
City sees additional funding opportunities for these types of projects, the City will consider
revisions to the previous RFP that could make this program more feasible when market
conditions have improved. The City will continue to work with agencies such as Habitat for
Humanity and the Coachella Valley Housing Coalition to identf additional properties where
self-help units may he implemented.
Currently, the Palm Desert Housing Authority has an inventory of homes in an adjoining
neighborhood that were repurchased by the former Agency to preserve their affordability as
there were few, if any, qualified buyers on the waitlist. The Authority is beginning the process to
resell the homes in that community; however, until the inventory is reduced significantly, the City
will not conduct another RFP for additional self-help homes in the adjacent neighborhood.
Program 1.E
The City shall maintain its inventory of sites zoned for PR-7 and R-3, and shall encourage the
incorporation of extremely low, very low, low and moderate income housing units into these
projects as they are brought forward.
Responsible Agency: Planning Department
Schedule: Ongoing as project applications are submitted
Evaluation: The City has not down zoned any sites zoned PR-7 and R-3 during the current
planning period. Staff continues to promote the assigned density when approached by potential
developers. Staff also describes the affordable housing requirements for all the sites listed in the
Land Inventory. This program will carry over to the 2014-2021 planning period.
Program 1.F
In order to assure that sufficient lands are available for affordable housing projects described in
Programs 1.A and 1.B, the City shall undertake or shall process private party Changes of Zone
on the following parcels to provide zoning that is consistent with the General Plan and
supportive of residential uses. Where necessary, General Plan amendments will also be
undertaken:
• The east side of Monterey, at the western City limits
• 20 acres of land at the southeast corner of Gerald Ford and Portola
• 10 acres of land at the northeast corner of Dinah Shore and Portola
• 19.6 acres of land at the southwest corner of University Park Drive and Cook
• 34 acres of land at the southwest corner of 35th Avenue and Dinah Shore
• 19 acres of land at the southeast corner of 35th Avenue and Dinah Shore
• The south side of Fred Waring Drive on the east side of San Pablo Avenue and on the
west side of San Pablo north of Santa Rosa.
Responsible Agency: Planning Department
Schedule: 2011
Housing Element
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TN/City of Palm Desert
General Plan/Housing Element
Evaluation: City'Council Ordinance Numbers 1233 and 1240A were adopted in 2012, within one
year of certifying the Housing Element, amending the Zoning Map areas identified in Program
1.F. All of the areas amended can accommodate affordable housing. Amendments included
changing properties to R-3, PR 20, or PR 22, as shown below:
Assessor's Parcel No.
685-010-005(A)
694-310-001 & 005(B)
694-120-012(C)
Vineyards
694-130-012(E)
694-130-003(F)
627-101-033
627-101-038
627-101-039
627-101-002
627-101-017
Size (acres)
30
35
10
19.6
33.71
18.92
1.64
Potential Units Change of Zone
432 Planned Community
Development (PCD)
520 Planned Residential (PR 20)
200 Planned Residential (PR 22)
Already Built
235 Planned Residential (PR 22)
302 Planned Residential (PR 22)
22 Residential Multiple Family
(R-3)
Since this program was completed, it will be removed from the 2014-2021 Element.
Program 1.G
The City will encourage further land divisions resulting in parcel sizes that facilitate multifamily
development affordable to lower income households in light of state, federal and local financing
programs (i.e. 50-100 units) as development proposals are brought forward. The City will also,
as part of the rezoning process or other outreach by 2012, meet with property owners to discuss
incentives available for land divisions (e.g., 2-5 acres) encouraging the development of housing
affordable to lower income households. The City will offer incentives for land division
encouraging the development of affordable housing including, but not limited to:
• priority to processing subdivision maps that include affordable housing units,
• expedited review for the subdivision of larger sites into buildable lots where the
development application can be found consistent with the Specific Plan,
• financial assistance (based on availability of federal, state, local foundations, and private
housing funds).
Responsible Agency: Planning Department
Schedule: Outreach by 2012, and 2011-2014
Evaluation: Staff consistently encourages any land divisions resulting in multi family
development for affordable housing. Due to the current economy and elimination of RDA, staff
has not received any development proposals for such a project. However, inquiries have been
made for development on larger parcels currently zoned for multi family development, and staff
continues to support them by offering less stringent development standards. In addition, as part
of the rezoning process, staff communicated with property owners where rezones would occur.
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Staff explained the benefits of low income housing and incentives the staff would recommend for
achieving higher density projects.
Program 1.H
Properties described in Program 1.F will be designated R-3 pursuant to Government Code
Section 65583.2 (h) and (i) and permit a minimum of 16 units per site at a minimum density of
20 units per acre. At least 50% of the need will be accommodated on sites allowing exclusively
residential uses by right. The City's zoning standards currently permit multifamily uses without a
CUP or other discretionary permit.
Responsible Agency: Planning Department
Schedule: 2011-2012
Evaluation: City Council Ordinance Nos. 1233 and 1240A were adopted in 2012, rezoning all
properties identified in Program 1.F. Each property was zoned either R-3, PR 20 or PR 22,
pursuant to Government Code Section 65583.2(h) and (i), and now allows a minimum density of
at least 20 units, and up to 22 units. R-3, PR 20 and PR 22 all allow exclusively residential units
by right. Refer to evaluation provided in Program 1.F. This program is complete and will be
removed from the 2014-2021 Element.
Policy 2
The City shall encourage the rehabilitation of existing housing units through a variety of
programs.
Program 2.A
The Agency shall annually fund an Acquisition, Rehabilitation, and Resale Program for 10
blighted homes each year.
Responsible Agency: Redevelopment Agency
Schedule: 2009-14
Evaluation: This program was implemented prior to RDA elimination. RDA funded two (2) ARR
projects (74047 San Marino Circle and 74065 Goleta Avenue) between 2006 and 2013. Two
additional ARR projects are in progress and expected to be completed in 2013. Funding was
provided through the Neighborhood Stabilization Program for the acquisition of the properties.
Although the Palm Desert Housing Authority is the successor to housing activities previously
undertaken by RDA, at this time it is unclear whether this program will be available to the
Housing Authority for future projects due to lack of funding. It will be removed from the 2014-
2021 Element
Program 2.B
The Agency shall annually fund the Single Family Rehabilitation Program and Housing
Improvement Program, for 20 households each year.
Responsible Agency: Redevelopment Agency
Schedule: 2009-2010, Ongoing
Evaluation: Between 2006-2011, RDA funded and completed thirty-nine (39) projects under the
Home Improvement Program. Due to the elimination of RDA in 2011, this program was also
eliminated in FY 2011/12. As of July 1, 2012, the City proposes to continue the program using
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Community Development Block Grant (CDBG) funding to allow grant assistance to ten (10) very
low and low income homeowners. The program is restricted to emergency situations (such as
health, safety, and substandard living conditions) in the home.
Program 2.0
The Agency shall pursue and utilize Neighborhood Stabilization Program (NSP) funding to the
greatest extent possible, and shall use that funding to assist homeowners in the purchase and
rehabilitation of blighted single family homes for up to four homes per NSP funding cycle.
Responsible Agency: Redevelopment Agency
Schedule: 2009-14
Evaluation: NSP funding was utilized to purchase two (2) properties. This program will be
completed in 2013, and any remaining program income will be returned to the County of
Riverside to continue the reuse of program funds. The City and/or the Housing Authority will no
longer manage or continue this program.
Policy 3
The City shall preserve existing affordable housing units.
Program 3.A
The Agency shall continue to subsidize existing affordable housing units in the City, including
apartment units it owns now and in the future.
Responsible Agency: Redevelopment Agency
Schedule: Ongoing
Evaluation: In 2011, ABXI 26 was signed into legislation, eliminating redevelopment agencies
and prohibiting agencies from entering into new agreements. California redevelopment agencies
were dissolved effective February 1, 2012, preventing the Palm Desert Redevelopment Agency
from carrying out planned redevelopment projects and establishing housing programs during the
remainder of the planning period. While the City designated the Housing Authority as the
successor housing entity to primarily preserve the affordability of its current portfolio, funding is
limited to revenues derived from the properties (rents, sales, payoffs, etc.) (see Policy 11). This
funding is currently sufficient to maintain existing properties, but insufficient to complete long
term maintenance and to pursue additional projects.
Program 3.B
The Agency shall maintain the existing resale restrictions and other subsidies on its 303
ownership units.
Responsible Agency: Redevelopment Agency
Schedule: Ongoing
Evaluation: On February 1, 2012, redevelopment agencies were eliminated across California.
As a result, funding for affordable homes through tax increment was also eliminated. While the
City designated the Housing Authority as the successor housing entity to preserve affordability
of its current portfolio, funding is limited to revenues derived from the properties (rents, sales,
payoffs, etc.).
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Program 3.0
The Agency shall maintain ownership of its 1,111 existing rental housing units in order to assure
long term affordability for these projects.
Responsible Agency: Redevelopment Agency
Schedule: Ongoing
Evaluation: On February 1, 2012, redevelopment agencies were eliminated across California.
As a result, funding for affordable homes through tax increment was also eliminated. While the
City designated the Housing Authority as the successor housing entity to primarily preserve
affordability of its current portfolio, funding is limited to revenues derived from the properties
(rents, sales, payoffs, etc.). The Housing Authority intends to maintain ownership of these units
at this time.
Program 3.D
The Agency shall continue its program of acquiring market rate apartment projects for
rehabilitation and conversion to affordable units, with the goal of converting 350 through the
planning period. Efforts shall be focused on blighted properties in Palma Village,
Redevelopment Project Area 4, and south of Highway 111 between Portola Avenue and Deep
Canyon Road.
Responsible Agency: Redevelopment Agency
Schedule: 2006-2014
Evaluation: The RDA acquired 4 properties: Sagecrest Apartments, Sagecrest Senior
Apartments, Country Village Apartments (now known as the proposed Carlos Ortega Villas),
and Candlewood Apartments.
Sagecrest was acquired as an existing 14-unit dilapidated multi family complex that consisted of
one (1) one-bedroom/one-bathroom, twelve (12) two-bedroom/two-bathroom, and one (1) two-
bedroom/one-bathroom units that RDA deconstructed during the 2010/11 fiscal year; due to the
elimination of RDA, this project was placed on hold.
.Sagecrest Senior Apartments consisted of fourteen (14) studio units and has been operating as a
100% affordable senior housing complex since it was acquired in 2009.
After evaluating the Country Village Apartments for the proposed Carlos Ortega Villas in
2005/06, RDA deconstructed the property with the intent of developing affordable senior rental
units. The conceptual design for a 72-unit affordable complex is currently under review.
In 2006, RDA acquired thirty (30) units (26 one -bedroom and 4 two -bedroom) in Candlewood
Apartments in order to eliminate their "at risk" status. These units remain in the affordable
housing inventory as senior apartments today.
Program 3.E
The City shall encourage the preservation of existing mobile home parks by non-profit agencies
or organizations, in order to preserve their affordability. The City will directly contact CVHC,
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DACE and others should a mobile home park be put up for sale, and assist through permit
streamlining in its sale, if possible.
Responsible Agency: Redevelopment Agency, City Manager's Office
Schedule: Ongoing
Evaluation: The Agency established the Indian Springs Purchase Assistance Program (the
"Program'). The objective of the Program was to preserve the existing mobile home community
for extremely low, very low, and low income households by assisting persons whose gross
household incomes do not exceed eighty percent (80%) of the median income in purchasing their
units. At such time as the owner offers the lots for sale, the Agency intended to make a loan as
part of the Program to a qualified borrower purchasing property within this community. At this
time, it is unlikely that this program will be available as a result of RDA elimination and the
subsequent decision by the State Department of Finance to prohibit the former Agency from
reserving funding for the program.
The City complies with all applicable federal laws and mediates rental disputes preserving
affordability through its Mobile Home Rent Control Program. The City shall continue to enforce
the provisions of the Fair Housing Act as it pertains to mobile home parks.
Program 3.F
The Agency shall coordinate between affordable housing developers and social service agencies
when new projects are developed to encourage the integration of services such as child care, job
training, vocational education, and similar programs into new affordable housing projects
through direct contact with both parties. For on -site child care, the Agency shall consider
allocation of the City's Childcare Mitigation Fee to new projects which provide the service.
Responsible Agency: Redevelopment Agency, City Manager's Office, Community
Development Department
Schedule: Ongoing
Evaluation: The Palm Desert RDA coordinated this effort prior to its dissolution. The City is
now responsible for coordination.
Policy 4
The City shall continue to strive to meet the State -mandated special shelter needs of large
families, female headed households, single parent families, senior citizens, and disabled
individuals and families, and shall consider including units for such households in its projects.
Program 4.A
The City shall continue to enforce the provisions of the Federal Fair Housing Act. The City shall
continue its referral program to the County Fair Housing Office, and shall maintain information
at City Hall and the Agency's affordable housing complexes.
Responsible Agency: Redevelopment Agency
Schedule: Ongoing
Evaluation: This program is the joint responsibility of the City and Housing Authority, which
periodically refer the general public and residents to the Fair Housing Council of Riverside
County and continue to maintain information at City Hall and the affordable housing complexes.
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The City has been contracting with the Fair Housing Council of Riverside County since FY
2003/04 for Fair Housing services. The organization is designed to further fair housing laws and
obligations under the federal Fair Housing Act and state laws. It provides counseling and
mediation services to residents with landlord/tenant and discrimination issues, as well as
educational training, technical assistance, and legal advice to property owners, businesses, and
the general public. It also works with local lenders and government institutions to provide
outreach and information to lower income households regarding the home buying process and
predatory lending practices. The City will continue this contract in the 2014-2021 planning
period.
Program 4.B
The City shall work with the Senior Center and other appropriate agencies in assisting whenever
possible in the housing of disabled residents, through participation by the Redevelopment
Agency.
Responsible Agency: Redevelopment Agency, Senior Center
Schedule: Ongoing
Evaluation: As a result of the elimination of redevelopment agencies, this program is no longer
funded through the Redevelopment Agency. However, the City continues to ensure that all
existing and new developments meet the requirements of the ADA. This includes referring
developers to appropriate agencies to assure that appropriate aids are incorporated into the
design of units to house disabled residents. Additionally, the Housing Authority continues to
provide ADA accessible and adaptable units at its affordable housing complexes and provides
accommodations upon resident requests whenever possible. The Housing Authority also provides
ADA accessible or adaptable units in its new projects, and on average, houses 80 disabled
residents.
Program 4.0
The City shall meet with non-profit developers and other stakeholders annually, beginning in
2011, to establish and implement a strategy to continue to provide housing affordable to
extremely low-income households. The City shall also consider prioritizing local financial
resources and applying for State and federal funding specifically targeted for the development of
housing affordable to extremely low-income households, such as CDBG, HOME, Local Housing
Trust Fund program and Proposition 1-C funds. The City shall continue to consider incentives,
such as increased densities, modifications to development standards, priority processing and fee
deferrals as part of the financing package for projects which include extremely low income units.
Responsible Agency: Redevelopment Agency
Schedule: 2011, Annually thereafter
Evaluation: During the 2006-2013 planning period, the City received no requests or proposals
from developers to jointly, or on behalf of the developer, apply for funding to assist in the
development of an affordable housing project. Additionally, this program was to begin in 2011
when the RDA was eliminated, and much of the funding eliminated, including funding which
required matching funds from RDA. In the next planning period, the City will need to assess
whether matching funds can be provided from other sources, or whether assistance will have to
be eliminated, depending on State legislation relating to affordable housing funds in upcoming
years.
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Policy 5
The City shall strive to provide shelter for the homeless.
Program 5.A
The City shall continue to work with CVAG on a regional solution for homelessness, including
the Multi -Service Center in North Palm Springs, and the beds and services it will provide.
Responsible Agency: City Manager's Office, City Council
Schedule: 2008-2014
Evaluation: The City is a participant in CVAG 's Homelessness Strategic Plan, which resulted in
the construction of Roy's Desert Resource Center in the western Coachella Valley. This facility
provides emergency and transitional shelter for 90 homeless individuals and provides a wide
range of support services, including living skills, employment assistance, housing placement
assistance, child care, and health care services. The City has committed to funding this initiative
for 10 years, beginning in FY 2009/10, and will continue to work closely with CVAG in this and
other regional efforts to end homelessness.
Program 5.B
The City shall amend the Zoning Ordinance as follows:
a. Allow emergency shelters by right in the Industrial zone and only subject to the same
development and management standards that apply to other allowed uses within the
Industrial zone. Approval shall be through a non -discretionary design review process.
b. Transitional and supportive housing shall be subject to only those restrictions that apply to
other residential uses of the same type in the same zone
c. Define Single Room Occupancy facilities.
d. Amend the definition of "Family" to be consistent with current federal standards.
e. Allow group homes of 7 or more in the R-1 and R-2 zones, in addition to the R-3 zone.
f. Allow Single Room Occupancy facilities in the Industrial zone, subject to approval of a
conditional use permit.
The Zoning Ordinance shall be clarified to state that handicapped ramps are permitted in the
front, side or rear yard setback of any residential structure. A reasonable accommodation
procedure shall be established to provide exception in zoning and land use for persons with
disabilities.
Responsible Agency: Community Development Department
Schedule: 2011
Evaluation: The City is currently preparing a Zoning Ordinance Update that will be adopted by
mid year 2013. The above -referenced items are included in the Update. As this program will be
completed before the 2014-2021 planning period, it will be removed from the Element.
Program 5.0
The City shall encourage local organizations, such as the Coachella Valley Rescue Mission,
Martha's Village and Catholic Charities, to apply to the City for the assignment of CDBG funds
for homeless services.
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Responsible Agency: City Manager's Office
Schedule: 2003-04
Evaluation: The City is a participant in the Coachella Valley Association of Governments'
(CVAG) Homelessness Strategic Plan, which established Roy's Resource Center (' Roy'ss'), a
regional shelter for 90 homeless persons that serves as a central location for transportation,
health care, mental health support, child care, and other social services. The City has committed
to funding Roy's for 10 years and has funded the organization for the past 3 years, with 7 years
remaining.
The City has also awarded CDBG funds to numerous organizations that provide food
distribution programs, including Martha's Village and Kitchen, Desert AIDS Project, and FISH
for homeless programs, among others. The City also contributes $3,000 annually to the Alan
Seaman Bus Pass Program, which is provided to CVAG for distribution to homeless shelter
providers.
Policy 6
The City shall continue to utilize restrictions, applicant screenings, and other appropriate
mechanisms established as conditions of approval in order to preserve affordable for sale
housing units for the long term.
Program 6.A
The City shall keep in regular contact with the Riverside County Housing Authority to ensure
that Section 8 housing assistance within the City is actively pursued. At least 30 households
should be assisted every year.
Responsible Agency: Redevelopment Agency
Schedule: Ongoing
Evaluation: The City maintained contact with the Riverside County Housing Authority and
assisted an estimated total of 184 households during the planning period. This program will be
maintained by the City in the 2014-2021 planning period.
Program 6.B
The Agency shall work with affordable housing organizations to preserve the affordability of the
Regent Palm Desert project (formerly known as Sevilla or Saint Tropez), which is currently at
risk of losing its affordability restrictions in 2016. The Agency may consider financial assistance
or purchase, assistance in preparing applications for funding through state and federal programs
for third party ownership, and other means to assure the long term affordability of the project.
Responsible Agency: Redevelopment Agency
Schedule: 2014-2015
Evaluation: The affordability restriction of 103 units at the Regent Palm Desert ("Regent') will
expire in 2016. The Agency has met with the owners of the Regent several times in an attempt to
extend the affordability with no success. With the elimination of redevelopment, there is no
additional funding available. However, although developers who have met the affordability
period restriction have no obligation to extend or continue restrictions within the property, the
City utilizes, whenever possible, federal and/or state programs to extend the affordability period
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of project units. The City continues to refer residents of privately owned rental communities to
seek subsidized rental assistance through the Riverside County Housing Authority. •
Policy 7
The Redevelopment Agency shall annually allocate funds to eligible projects for review and
consideration, in conformance with its Five Year Implementation Plan.
Evaluation: Prior to its being dissolved, the Redevelopment Agency annually allocated funds in
conformance with its Five Year Implementation Plan. Since February 1, 2012, when the Palm
Desert RDA was eliminated, funds are no longer available for allocation.
Policy 8
The City Council shall consider, as an additional incentive, the reduction, subsidizing or
deferring of development fees to facilitate the development of affordable housing.
Evaluation: The City Council and staff would consider a financial incentive by reducing,
subsidizing, or deferring development fees; however, no requests were made by affordable
housing developers for such a consideration during the planning period.
Policy 9
The City shall continue to address the needs of the senior population in development of housing.
Program 9.A
The City shall maintain the Senior Housing Overlay District and the Second Unit Housing
standards in the Zoning Ordinance.
Responsible Agency: Community Development Department
Schedule: Ongoing
Evaluation: The Zoning Ordinance continues to maintain the Senior Housing Overlay District
and Second Unit Ordinance.
Program 9.B
The City shall continue to encourage the development of assisted living facilities for seniors.
Responsible Agency: Redevelopment Agency, Community Development Department
Schedule: Ongoing
Evaluation: No additional assisted living development proposals were submitted by developers
during the planning period.
Policy 10
The City shall implement the State's density bonus law.
Evaluation: This requirement is being added to the Zoning Ordinance as part of the Zoning
Ordinance Update, which will be adopted by mid year 2013. Once adopted, the City will
implement the density bonus ordinance whenever a bonus is requested by a developer.
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Policy 11
The City shall maintain the Rental Subsidy Program, the Mortgage Subsidy Program and the
First Time Homebuyers Program.
Evaluation: The Housing Authority annually provides Rental Subsidy assistance for
approximately 1,111 units at its affordable housing complexes. The Mortgage Subsidy Program
was part of a compliance program established by RDA to provide assistance to struggling
homeowners for mortgage relief, however, program implementation was unsuccessful. In an
effort to extend assistance, the City refers homeowners to housing counseling agencies and
programs that provide foreclosure prevention assistance, including HOPE, Your Home, Making
Home Affordable, and Keep Your Home. Approximately 10 single-family households in Falcon
Crest and Desert Rose have maintained their homes with the assistance of these programs.
In 2007, the City was awarded $2, 790, 000 BEGIN (Building Equity and Growth in
Neighborhoods) grant funding for mortgage reduction for Falcon Crest, a new 100% affordable
homeownership community; 93 homeowners were assisted with $30, 000 subsidies.
The City and RDA provided financial assistance to approximately 106 households through the
First Time Homehuyers Program, with the consideration that up to 45-year restricted covenants
be recorded with the property and affordable housing availability he preserved. Subsidies to
each household were made available in varying amounts depending on the need to secure an
affordable housing cost.
With the elimination of the RDA, there are no City funds available for future programs. The
Housing Authority will continue to apply for grants as they become available.
Policy 12
Promote the jobs/housing balance through the development of housing with convenient access to
commercial land uses, schools, available public transport and employment centers.
Evaluation: The City's General Plan Land Use Plan provides a broad mix and pattern of land
uses that balance and integrate residential, commercial, employment, and institutional uses to
the greatest extent practicable.
During the 2006-2013 planning period, two master planned communities were approved that
support the City's goal of promoting the jobs/housing balance. Spanish Walk, a private
residential community, consists of a mix of condominiums and townhomes. University Park
provides for 1,052 residential units at various densities, as well as pocket parks and a 2.4-acre
dog park. Both communities are in the Cook Street/Gerald Ford Drive vicinity and within close
proximity to educational facilities (UCR and CSUSB — Palm Desert campus), transportation
(Interstate-10, public transit and regional/local arterials), recreation (parks), and a wide range
of shopping, restaurants, and other commercial land uses.
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Policy 13
Encourage energy conservation through the implementation of new technologies, passive solar
site planning and enforcement of building codes. Please also see the Energy and Mineral
Resources Element.
Program 13.A
The City shall maintain an Energy Conservation Ordinance which mandates conservation in new
construction beyond the requirements of the California Building Code.
Responsible Agency: Planning Department
Schedule: 2010-2011
Evaluation: The Zoning Ordinance Update, which will be adopted by mid year 2013, will
include Green Building standards required by State law. As part of the comprehensive Zoning
Ordinance Update, staff is also considering an Energy Conservation Ordinance.
Program 13.B
The City shall encourage Green Building techniques, recycling in demolition, and the use of
recycled, repurposed and reused materials in all new affordable housing projects to the greatest
extent possible.
Responsible Agency: Redevelopment Agency, Planning Department, Building Department,
Public Works Department
Schedule: Ongoing
Evaluation: The City requires implementation of California Green Building Code standards for
all new developments, and recycles construction materials from its affordable projects. The City
has approved Carlos Ortega Villas, a 72-unit affordable senior housing project that is being
designed to he Net -Zero Energy; the City is striving to meet LEED Silver level requirements for
this project. The project is proposed for a site that was occupied by dilapidated market rate
apartments. Instead of demolition, the apartments were deconstructed and materials recycled.
The City will continue to implement Green Building techniques in its projects in the future.
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DEMOGRAPHIC INFORMATION
This section provides the demographic background for the residents of Palm Desert. The
information is primarily based on 2010 U. S. Census and American Community Survey (ACS)
data. Where more current data is available, it has been included in addition to the Census and
ACS information.
Regional Setting
The City of Palm Desert is located in the Coachella Valley, in eastern Riverside County.
Riverside County grew from 1,110,000 in 1990 to 1,545,387 in 2000. By the year 2010, the U.S.
Census estimated that population in the County had grown to 2,189,641, which represents a 10-
year increase of 41.7%. Since the completion of the Census, the California Department of
Finance (DOF) has annually estimated population growth. The DOF estimated that in January of
2012, Riverside County had a population of 2,227,577, an increase of 1.7% over the 2010
population.
City Population
Palm Desert has also experienced a rapid rate of growth. In 1990, the Census reported a
population of 23,252 in the City. From 1990 to 2000, the City's population grew to 41,284, an
increase of 77% in ten years, and an average annual increase of just under 6.25%. By 2010, the
Census reported a City population of 48,445, an increase of 17.3% in ten years. The California
Department of Finance estimated that the City's population on January 1, 2012 was 49,471. The
City has grown at a rate slower than that of the County as a whole.
The Southern California Association of Governments (SCAG) projects the City population to
increase to 52,100 by 2020, which would represent an increase of 7.5% over the 10-year period.
SCAG projects a City population of 56,800 by 2035.
Population by A2e Group and Ethnicity
The Coachella Valley has historically been a retirement area, and Palm Desert
The City's median age rose from 42.3 in 1990, to 48.0 in 2000, to 53.0 in
continuing aging of America, it is expected that this trend will continue. Table
the 2010 Census estimates for population by age group.
Table III-14
Age Distribution,
Age Number
Under 19 8,431
20-34 6,780
35-44 4,387
45-64 12,924
65+ 15,923
Total 48,445
Source: 2010 U.S. Census
2010
% of Total
17.4%
14.0%
9.0%
26.7%
32.9%
100%
is no exception.
2010. With the
III-14 illustrates
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White
Black or African American
American Indian & Alaska Native
Asian
Native Hawaiian & Other Pac. Islander
Some Other Race
Two or More Races
Total
Hispanic or Latino
TN/City of Palm Desert
General Plan/Housing Element
Table III-15 lists the ethnic distribution for Palm Desert in 2010.
Table III-15
City of Palm Desert
Ethnic Characteristics, 2010
Number
39,957
875
249
1,647
55
4,427
1,235
48,445
11,038
% of Total
82.5%
1.8%
0.5%
3.4%
0.1%
9.1%
2.5%
100%
22.8%
Note: the ethnic population numbers may seem distorted because the U.S. Census
does not consider Hispanic or Latino ancestry to be a race. For this reason, some
Hispanics choose to list themselves under the classification for other races.
Source: 2010 Census of Population and Housing
Household Size and Income
The City had a total of 24,005 households between 2009 and 201 1. The average household size
was 2.02 persons per household.
Median household income in the City in 1990 was $37,315, slightly higher than the County
median income, which stood at $36,000 for the same time period. In 2000, median household
income had risen to $48,316, and by 2010 it had risen to $50,267. The following Table lists the
number of households in each income range.
City Household
Income
Less than $10,000
$10,000-$14,999
$15,000-$24,999
$25,000-$34,999
$35,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000-$149,999
$150,000-$199,999
$200,000 +
Total
Table III-16
Income Distribution,
No. of HH
1,054
1,466
2,717
3,179
3,529
3,828
2,854
2,916
1,052
1,410
24,005
Source: 2009-2011 American Community Survey
*Differences due to rounding.
2009-2011
% of Total
4.4%
6.1%
11.3%
13.2%
14.7%
15.9%
11.9%
12.1%
4.4%
5.9%
100%*
3-Year Estimates.
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The ACS estimated 5.4% of all families in Palm Desert were living below the poverty level in
2009-2011.
Employment and Major Employers
The ACS data also provided information on employment distribution in 2009-2011. Of a total
workforce of 20,114, the largest sectors for employment were educational/health/social services,
and arts/entertainment/recreation/accommodation/food services.
Table III-17
City Employment by Industry, 2009-2011
Industry No. of % of Total
Employees
Agriculture/Forest/Fish/Mining 573 2.8%
Construction 1,274 6.3%
Manufacturing 438 2.2%
Wholesale Trade 591 2.9%
Retail Trade 2,653 13.2%
Transportation, warehousing & 574 2.9%
utilities
Information 860 4.3%
Finance, insurance & real estate 1,446 7.2%
Professional, scientific, management 2,457 12.2%
& administration
Educational, health & social services 4,175 20.8%
Arts, entertainment, recreation, 3,422 17.0%
accommodation & food service
Other services (except public 938 4.7%
administration)
Public Administration 713 3.5%
Total Employment by Industry 20,114 100%
Source: 2009-2011 American Community Survey 3-Year Estimates
In 2008, SCAG projected a 10% increase in employment in Palm Desert by 2020, and a 7%
increase in employment between 2020 and 2035.
Housing Characteristics
The 2009-2011 ACS showed a total of 40,181 housing units in the City in 2010, while the DOF
estimates that the City has 37,409 housing units in 2012, as demonstrated in Table 111-18.
Housing Element
111-19
Single Family, detached
Single Family, attached
2 to 4 Units, Multi -family
5+ Units, Multi -family
Mobile homes
Boat, RV, van, etc.
Total
TN/City of Palm Desert
General Plan/Housing Element
Table III-18
City Housing Characteristics
Units in Structure 2009-2011*
15,823
10,969
3,511
6,304
3,543
31
40,181
2012**
14,707
10,877
2,943
5,178
3,704
***
37,409
*Source: 2009-2011 American Community Survey 3-Year Estimates
**Department of Finance, January 2012 estimates
*** Not identified by DOF
Age of Housing Stock
The ACS estimated a total of 40,181 housing units in the 3-year period between 2009 and 2011.
Of these, 27,467 (68%) were built before 1990, while12,714 (32%) were less than 20 years old.
Table III-19
Age of Housing Units
No of %of
Year Built Units Total
2005 or later 2,223 5.5%
2000-2004 3,126 7.8%
1990-1999 7,365 18.3%
1980-1989 13,234 32.9%
1970-1979 9,234 23.0%
1960-1969 3,709 9.2%
1950-1959 1,061 2.6%
1940-1949 134 0.3%
1939 or earlier 95 0.2%
Total 40,181 100%*
Source: 2009-2011 American Community Survey 3-Year
Estimates * Differences due to rounding
Vacancy Status
The 2010 Census showed a total of 13,956 of the City's total 37,073 housing units to be vacant,
for an overall vacancy rate of 37.6%. Correcting for seasonal or recreational units, which are
considered vacant by the Census but are not available or used for permanent occupancy, the
vacancy rate decreased to 9.5% in 2010. In 2012, the DOF estimated that 37.65% of the City's
housing stock is vacant, which adjusted for seasonality, results in a net vacancy rate of 9.5%.
Housing Element
111-20
Unit Type
For Rent
Rented, not occupied
For sale only
Sold, not occupied
TN/City of Palm Desert
General Plan/Housing Element
Table III-20
Vacancy -Status — 2010
No. of Units
Vacant
1,616
67
798
99
Seasonal, Recreational or
Occasional Use
All Other Vacants
Total
Source: 2010 Census
10,418
958
13,956
% of All
Units
11.6%
0.5%
5.7%
0.7%
74.6%
6.9%
100%
Housing Tenure
Housing tenure for occupied units only between 2009 and 2011 is shown in Table 111-21.
Tenure remained constant when compared to the 2000 Census.
Table III-21
Housing Tenure — 2009-2011
Unit No. of Units
Owner Occupied
Renter Occupied
Total
Source:
Estimates
16,254
7,751
24,005
2009-2011 American Community
67.7%
32.3%
100 %
Survey 3-Year
Overcrowding
The California Department of Housing and Community Development (HCD) establishes a
standard of 1.01 persons per room as the criteria for defining "overcrowded" housing conditions.
Overcrowding is one of the specifically identified issues that must be addressed in the Housing
Element. Table 1I1-22 illustrates the ACS estimates for persons per room. The Table illustrates
that a total of 685 housing units in Palm Desert were overcrowded between 2009 and 2011,
representing 2.9% of the total occupied housing units in the City. This represents a significant
decrease from 2000, when 5.1% of housing units were overcrowded.
Table III-22
Overcrowding, 2009-2011
Persons/Room
Occupied Units
1.00 or less
1.01 to 1.50
1.51 or more
Source: 2009-2011
Survey 3-Year Estimates
No. of HH
23,320
568
117
American Community
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General Plan/Housing Element
Housing Values
The 2009-2011 ACS estimated values for owner -occupied single family homes in the City.
These are listed in Table III-23.
Table I11-23
Values, Specified Owner -Occupied
Housing Units, 2009-2011
Value Number
Less than $50,000 454
$50,000 to 99,999 670
$100,000 to 149,999 751
$150,000 to 199,999 2,042
$200,000 to 299,999 3,623
$300,000 to 499,999 5,235
$500,000 to 999,999 3,049
$1,000,000 or more 430
Source: 2009-2011 American Community Survey 3-
Year Estimates
The median housing unit value between 2009 and 2011 was estimated at $317,100. For
renters, the median contract rent at that time was $1,103. Current housing values and rental
rates are further discussed below in the section titled "Economic Constraints".
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General Plan/Housing Element
EXISTING AFFORDABLE HOUSING PROGRAMS
There are a number of projects and programs available in Palm Desert which provide a variety of
services to the City's residents. In addition, regional, state and federal programs can also be
accessed within the community. This section of the Housing Element provides a summary of
programs available by a number of agencies.
City Programs
In 2011, ABXI 26 was signed into legislation, effectively eliminating redevelopment agencies
and prohibiting agencies from entering into new agreements. California's redevelopment
agencies were dissolved as of February 1, 2012. The Palm Desert Housing Authority was
designated as the successor housing agency and will endeavor to implement the following
affordable housing programs as funding becomes available.
Rental Assistance Program
Owners of single-family homes, condominiums, mobile homes or apartments who rent to very
low, low, and moderate income tenants to the extent funding is available, may receive direct
rental payment assistance from the City. The owner must, in exchange for the assistance, enter
into a recorded agreement with the City assuring affordability of the rental units for 55 years.
Acquisition, Rehabilitation and Resale
This program allows the City to purchase existing market rate single family units, rehabilitate
and refurbish them, and re -sell them to lower income households with affordability covenants.
The RDA completed two (2) projects through this program during the 2006-2013 period, and
two (2) additional projects are expected to be completed by the City in 2013. Funding was
through the Palm Desert Neighborhood Stabilization Program. Although the Housing Authority
is the successor to housing activities previously undertaken by RDA, it is unclear whether this
program will be available for future projects.
Mortgage Credit Certificate Program
This program is also the funding mechanism established in order to preserve Indian Springs
Mobile Home Park's affordability. The City received a request from the current Owner to
convert Indian Springs Mobile Home Park into a resident -owned development. At such time as
the owner offers the lots for sale, the RDA intended to offer purchase money financing to
extremely low, very low and low income households for the purchase of real property during the
previous planning period. It is unclear whether this program will be available as a result of RDA
elimination.
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General Plan/Housing Element
Homebuvers Assistance Program
The City and RDA have provided assistance to very low, low, and moderate income persons in
the form of low interest loans to be applied to down payment, non -recurring closing costs,
reduction of the interest rate on the first trust deed, or any other cost associated with the purchase
of a single family home. There are currently 303 homes in this program. In exchange for the
assistance, the home owner is required to enter into a recorded agreement with the City assuring
affordability of the home for up to 45 years.
Self -Help Housing
The City will assist very low, low and moderate income households in constructing and
purchasing their own home on existing Tots of record within the City. During the previous
planning period, the Agency set aside 14 lots for a future self-help development along Merle
Drive, and in 2009 completed a Request for Proposals (RFP) for development. No responses
were received for the RFP. To continue this program, the City purchased the 14 lots in 2010. At
such time as additional funding opportunities and market conditions for these types of projects
are realized, the City will consider revising the previous RFP and re -advertising the opportunity.
Home Improvement Program
The City assists very low, low and moderate income households with home repairs by providing
grants and low interest loans to program participants. The program has eight (8) components,
but only the Emergency Grant Component is currently funded.
• The Emergency Grant Component allows up to $7,500 for very low and $5,000 for low
income households for emergency repairs to their homes.
• The Rehabilitation Grant Component will grant up to $20,000 for home improvements to
very low income households.
• The Matching Fund Grant Component will match up to $5,000 in home improvements
with a homeowner who contributes the same amount or more to the improvements. This
grant is available to very low and low income households.
• The Rehabilitation Loan Component allows up to $35,000 for active loans and $45,000
for a deferred loan for home improvements to low and moderate income households,
respectively.
• The Drought Tolerant Landscape Retrofit Loan Component allows up to $7,500 in
improvements that intend to reduce the consumption of a natural resource for very low,
low and moderate income households.
• The Make a Difference Volunteer Assistance Component organizes community
involvement through volunteers for very low, low and moderate income households.
• The Acquisition, Rehabilitation, Resale Component allows the City to acquire properties
available on the market for the purpose of rehabilitation and resale to a qualified
household.
• The Lead and Asbestos Abatement Component will grant $7,500 to remove lead and
asbestos from the homes of very low and low income households.
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TN/City of Palm Desert
General Plan/Housing Element
County and Federal Programs
There are numerous programs available to provide rental assistance and to encourage the
construction of new affordable housing. The following programs are available in the City of
Palm Desert:
Section 8 Housing Assistance
The Riverside County Housing Authority provides HUD Section 8 rental assistance to lower
income renters within the City. The Authority annually subsidizes approximately 50 households
in the City, of which approximately 30 households are residents of the Palm Desert Housing
Authority properties.
Fair Housing Programs
The City works with the County of Riverside Fair Housing Council to provide anti-
discrimination, landlord -tenant mediation, fair housing training and technical assistance,
enforcement of housing rights, administrative hearings, home buyer workshops, lead -based paint
programs, and other housing related services for City residents.
AFFORDABLE HOUSING DEVELOPMENTS
Palm Desert Housing Authority Owned and Assisted Rental Properties
The Housing Authority owns eight (8) multi -family apartment complexes and seven (7) senior
apartment complexes that provide affordable housing for lower income residents. Each of these
complexes is described below. Combined, there are a total of approximately 1,000 affordable
rental units that are Housing Authority owned and assisted.
Palm Desert Housing Authority Owned Family Apartments
One Quail Place provides 384 one and two -bedroom apartments available to lower income
ranges. There are 242 very low, 104 low, and 31 moderate income households currently living in
the complex.
Desert Pointe is a 64-unit studio, one and two -bedroom project which currently houses 51 very
low-income households, 9 low-income households, and 1 moderate income households.
Neighbors Garden Apartments has a total of 24 one -bedroom units, 14 of which are rented by
very low-income households, 3 of which are low-income tenants, and 5 are rented to moderate
income tenants.
Taos Palms provides 16 two -bedroom units to 13 very low and 3 low income households.
California Villas is a 141 unit project which provides one bedroom units to 115 very low, 16 low
and 4 moderate income households. The complex was acquired in March 2003.
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TN/City of Palm Desert
General Plan/Housing Element
Laguna Palms provides 48 units which include 4 studios, 18 one bedroom and 26 two bedroom
units to 35 very low income, 7 low income and 6 moderate income tenants. The complex was
acquired in July 2003.
Palm Village Apartments provides 36 two -bedroom apartments. The property was acquired in
2007 and includes 25 very low income, 8 low income, and 3 moderate income tenants.
Sagecrest Apartments was a dilapidated complex that was acquired in 2008. It consisted of one
(1) one-bedroom/one-bathroom, twelve (12) two-bedroom/two-bathroom, and one (1) two-
bedroom/one bathroom units that RDA deconstructed during the 2010/11 fiscal year. Due to the
elimination of RDA, this project has been placed on hold.
Palm Desert Housing Authority Owned Senior Apartments
The Pueblos includes 15 one -bedroom units for 13 very low and 1 low income senior
households.
Catalina Gardens provides 72 studio and one -bedroom apartments to 63 very low, 4 low, and 2
moderate income senior households.
Las Serenas Apartments has 100 one -bedroom and 50 two -bedroom units rented to 119 very
low-income, 18 low-income, and 11 moderate -income seniors.
Candlewood Apartments provides a total of 30 one and two bedroom units to 26 very low and 4
low income senior households.
La Rocca Villas, acquired in 2007, includes 27 one -bedroom apartments and houses 26 very low
income and 1 low income residents.
Sagecrest Senior Apartments provides 14 studio apartments to 12 very low income and 2 low
income seniors. The property was acquired in 2009.
The property for Carlos Ortega Villas was acquired in 2005, and the conceptual design process
is currently under review. Once complete, it will consist of 72 apartments for a blend of senior
households with varied income levels.
Affordable Units Built in the 2006-2014 Planning Period
Palm Village Apartments provides 36 two bedroom units for 25 very low, 8 low and 3 moderate
income households. The project consists of new construction, and was completed in November
2007.
Sagecrest Apartments was acquired in 2008 as a dilapidated 14-unit project. It was deconstructed
by RDA during the 2010/11 fiscal year; due to the elimination of RDA, this project has been
placed on hold.
Sagecrest Senior Apartments provides 14 studio apartments to 12 very low income and 2 low
income seniors. The property was acquired in 2009.
Housing Element
III-26
TN/City of Palm Desert
General Plan/Housing Element
La Rocca Villas provides 27 one bedroom units for 26 very low and 1 low income senior
households. The project was newly constructed, and opened in November of 2007.
Affordable Ownership Projects
Desert Rose, a 161 unit single-family project, was developed in 1996. The units are restricted
for a period of up to 45 years to purchasers in the very low, low, and moderate -income
categories. The project includes a mix of very low, low, and moderate -income households.
Facilities within the project include community recreation and daycare.
The Rebecca Road and San Marino Homes were part of the Acquisition Rehabilitation Resale
program. Three single-family homes were rehabilitated and resold with resale restrictions for
low and moderate income households.
Coachella Valley Housing Coalition constructed a total of 11 self-help homes restricted to very
low and low income households, that purchased the homes through low interest loans and sweat -
equity programs.
Habitat for Humanity constructed 9 single-family homes, which are restricted to very low-
income households that were purchased through low interest loans and sweat -equity programs.
Building Horizons homes were built as part of a vocational high school program, and provide 2
single-family homes for low-income households, with 30-year resale restrictions.
Falcon Crest provides 93 single family homes for 13 low and 80 moderate income households.
The project includes resale restrictions for a 45 year time period.
Portola Palms Mobile Home Park includes 23 mobile homeowners, 16 of which are very low
income, and 7 of which are low income. The project includes resale restrictions for 30 years.
The Neighborhood Stabilization Program (NSP) was used to assist homeowners in the purchase
of two (2) single-family properties. The program will be completed in 2013, and any remaining
program income will be returned to the County of Riverside to continue the reuse of any program
funds. Neither the City nor the Palm Desert Housing Authority will continue to manage or
operate the program.
Privately Developed Properties
The Regent (formerly Sevilla or San Tropez) Apartments has 512 one and two -bedroom units,
103 of which must be restricted to low income households, in exchange for participation in the
City's Density Bonus Program. The balance of the units is available to market households.
Hovley Gardens is a private project which received Agency assistance and tax credits, and
constructed 162 two, three and four bedroom rental units available to very low and low income
households. The project was completed in 2003.
Housing Element
111-27
TN/City of Palm Desert
General Plan/Housing Element
Canterra Apartments 1 and 11, which consists of a total of 612 units, includes 62 .one, two, and
three -bedroom units affordable to very low and low income tenants. The units were created
through the City's density bonus program. Canterra I is complete with a total of 306 units,
including 31 affordable units; Canterra 11 has not been constructed.
Villas on the Green, which consists of a total of 76 units, includes 15 studio, one, and two -
bedroom units for persons over 55 years of age in the very low, low and moderate income
categories. The units were created through the City's density bonus program.
The Enclave, which consists of a total of 320 units, includes 64 one, two, and three bedroom
units reserved for very low, low and moderate income households. The units were created
through the City's density bonus program.
The Vineyards, which consists of a total of 260 units, includes 52 one and two bedroom units
reserved for very low, low and moderate income households. The units were created through the
City's density bonus program and the Agency has an option to purchase affordability of an
additional 52 units in the future.
The Carel family has 1 two -bedroom apartment available to lower income residents.
Monterey Ridge consists of 49 one and two -bedroom apartments. This is a homeownership
project for qualified buyers that do not exceed 200% AMI.
Shadow Hills Estates includes a total of 16 one, two, and three -bedroom apartments available to
residents with moderate incomes.
Palm Desert 103 includes 21 one and two -bedroom units reserved for moderate income
residents.
L&T Development Company on Catalina Way includes 4 one -bedroom units for residents with
low incomes.
Atria Palm Desert, an assisted living facility, includes 5 one -bedroom apartments for residents
with very low incomes.
Bernard on Catalina Way includes 4 studio apartments restricted to low and moderate income
residents.
Legend Gardens is an assisted living facility that includes 4 one -bedroom apartments for
residents with very low and low income levels.
River Run One includes 2 studio apartments for residents with very low and low incomes.
Housing Element
111-28
TN/City of Palm Desert
General Plan/Housing Element
Summary of Affordable Housing Developments
The Housing Authority owns and operates approximately 1,000 multi -family housing units, and
approximately 564 units are owned and operated by third parties. There are an additional 303
ownership units for very low, low and moderate income households.
CONSTRAINTS TO THE DEVELOPMENT OF HOUSING
This section of the Housing Element analyzes the governmental, environmental, physical and
economic constraints associated with the development of housing. These constraints can take
many forms, but generally increase the cost of providing housing, which can have a potentially
significant impact on affordable housing development.
Governmental Constraints
Permit Processing
Palm Desert has historically provided expeditious processing for planning entitlements. The City
encourages the concurrent processing of applications, and can complete the entitlement process
on most projects in three to six months, depending on the approving body and the complexity of
the application.
The City requires tract map review and approval for all single family home tracts and a precise
plan for multi -family projects, both of which can be processed concurrently with any other
permit that might be required. For either, the review process is a simple analysis that assures that
the project's design meets the requirements of the zone in which it occurs. Applications, when
complete, are circulated to other City departments for comments. The project will then be
reviewed by the Architectural Review Committee, and approved by the Planning Commission.
Public notice and mailings are made 10 days prior to a public hearing. The findings needed for
approval of either a tract map or precise plan pertain to the project's consistency with State law;
the General Plan and Zoning Ordinance; public health and safety; and the site's physical ability
to accommodate the project. The average processing time for a typical application is 4 to 6
months, which is generally consistent with most Valley cities, and does not represent a
constraint. Individual single family homes do not require a public hearing, and are approved by
the Planning Department as part of the usual building plan checking process.
The City's processes are not a constraint to the provision of affordable housing.
Application Fees
According to the Rose Institute of State and Local Government at Claremont McKenna College,
in their study published in March 2008, Palm Desert's planning application and permit fees are
the lowest of the Coachella Valley cities, and do not represent a constraint on the provision of
affordable housing. Table III-24, below, illustrates typical permit fees. For example, total typical
fees per unit for a 60 unit subdivision are estimated at approximately $24,893 per unit, most of
which (77%) are impact fees which are not controlled by the City. For example, combined,
school district and TUMF fees ($10,262) represent 41 percent of the total typical fees for a
Housing Element
III-29
TN/City of Palm Desert
General Plan/Housing Element
hypothetical 60 unit subdivision. The majority of the remaining impact fees are attributed to
water and sewer service which comprises approximately 26% of the total typical fees.
The Rose Institute study does not specifically address multifamily development fees. However,
the fees over which the local city has control, with one exception, are based upon building size or
valuation, which means that they are the same for multifamily dwelling units as they are for
single family homes. Hence, in all but one area, Palm Desert has the lowest fees in the
Coachella Valley for multifamily development. For the remaining development fee --
engineering -- Palm Desert ranks right in the middle, with four Coachella Valley cities charging
less, while Riverside County and three Valley cities charge more. Therefore, the planning
application and permit fees for developing multifamily housing in Palm Desert are competitive
with -- or lower than -- other Valley cities, and these fees do not pose a constraint to
development of affordable housing in Palm Desert.
Typical Permit
Fee Type
Building Permits
Impact Fees
Environmental Fees
Engineering
Planning
Total
Total per Unit
Table III-24
Fees for Housing Developments
Total Typical Fees *
60 Unit 35 Unit
Subdivision Subdivision
$309,975 $180,818
$1,153,596 $677,649
$214 $214
$27,429 $16,854
$2,348 $2,348
$1,493,562 $877,884
$24,893 $25,082
in Palm Desert
72 Unit Apartment
Project
$191,371
$528,090
$276
$39,727
$4,019
$763,483
$10,604
Source: Rose Institute of State and Local Government at Claremont McKenna College, March
2008, City Housing Authority 2013
* See Appendix B for a complete listing of typical fees and City comparison
Table 111-25, below, identifies the City's current (2013) Community Development/Planning fees
for processing applications and permits. Although they have increased somewhat over the 2008
rates used in the Rose Institute study above, they are not considered a constraint to the
development of affordable housing in the City.
Table III-25
Community Development/Planning Fee Schedule, 2013
Permit Type
General Plan Amendment/Change of Zone
Architectural Review (single family)
Conditional Use Permit or Precise Plan
Environmental Assessment
Tentative Tract Map
Parcel Map
Source: "Community Development/Planning Fee Schedule," Resolution
City of Palm Desert, June 14, 2012.
Fee
$2,007
$226
$2,894
$276
$3,308
$1,203
2012-37,
Housing Element
111-30
TN/City of Palm Desert
General Plan/Housing Element
General Plan and Zoning Ordinance Constraints
The residential districts of the Land Use Element allow a broad range of densities for all types of
development. The Low Density Residential category allows 0 to 4 units per acre; the Medium
Density Residential designation allows 4 to 10 units per acre; and the High Density Residential
designation allows 10 to 22 units per acre. The Land Use designations also include a High
Density Overlay, which was specially created for University Park. This overlay has been placed
on all land designated Medium Density Residential in the University Park area. This overlay
allows these lands to be developed at High Density Residential densities.
The City's Zoning designations parallel the General Plan, and include R-1, which allows up to 5
units per acre; the R-2 zone which allows up to 10 units per acre; R-3, which allows 17 units per
acre; and the PR zone, which allows up to 25 units per acre for affordable housing projects.
The Zoning Ordinance also includes density bonus provisions, second unit standards, and a
Senior Housing Overlay, which allows maximum flexibility in density because no density limit
is specified, and each project is evaluated on its merits.
The development standards in the Zoning Ordinance are also not restrictive, as shown in Table
111-26, below.
Table III-26
Minimum Development Standards
Standard
Units per Acre
Lot Area
Lot Width
Lot Depth
Building Lot Coverage
Common Area
Building Height
Parking Required
1 bdrm
2 or more bdrms
Source City of Palm Desert Zoning Ordinance
Lot width for project, not per unit.
R-1
5
8,000 sq. ft.
70 feet
n/a
35%
N/A
1 story/18 feet
2 spaces/unit
R-2
10
8,000 sq. Ft
70 feet
100 feet
50%
N/A
22 feet
for Residential Zones
R-3
17
10,000 sq. Ft.
90 feet
100 feet
50%
300 s.f./unit
22 feet
1 space/unit
2 spaces/unit
1 space/unit
2 spaces/unit
PR
18-22
2,500 s.f.
250 feet*
n/a
40%
40%
24 feet
1 space/unit
2 spaces/unit
The City's development standards allow for two story development typical of all desert cities.
Common area requirements in the R-3 and PR zones are also typical of desert cities, and allow
for clustering of units to allow for common area amenities. Even with imposition of the City's
development standards, and assuming a unit size of 1,000 square feet, with two parking spaces
per unit and 40% open space, densities in excess of 22 units per acre could be achieved. The
City's development standards are not a constraint on the development of housing.
The Zoning Ordinance was updated in 2013 to permit the development of emergency shelters
and transitional/supportive housing, as required by law. Emergency shelters are now permitted in
the Service Industrial zone, and transitional and supportive housing is permitted in the R-2 zone
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General Plan/Housing Element
with a conditional use permit, and permitted in the R-3 zone. They are subject to only those
restrictions that apply to other residential dwellings of the same type (such as group homes) in
the same zone. In addition, single -room occupancy units are now permitted in the R-3 zone with
a conditional use permit. The definition of "family" has been codified to be consistent with the
HUD definition of family, and there are no concentration requirements anywhere in Zoning
Ordinance. Reasonable accommodation measures have been established in the new Zoning
Ordinance. The revised Zoning Ordinance effectively removes prior constraints to the
development of these facilities. The Table below identifies zoning designations that
accommodate these and other special housing types.
Table III-27
City of Palm Desert
Zoning for Special Housing Types
Housing Type Zoning Where Permitted
Multi -family rental housing R2 permitted use
R3 permitted use
Factory -built housing R-1-M, conditional use
Mobile homes R-1-M, conditional use
Housing for agricultural employees A (Agricultural District), permitted use
Emergency shelters SI permitted use
Transitional & supportive housing R2 conditional use, R3 permitted use
Single -room occupancy units R3, conditional use
Infrastructure Requirements
Most of the City is served by General Plan roads, water and sanitary sewer facilities. Individual
development projects are required to connect to water and sewer facilities, and are also required
to improve roadways in and adjacent to the project. Adjacent roadways must be improved to
their ultimate half width, and include curb, gutter and sidewalk. Roadway standards for local or
neighborhood streets that allow parking on both sides must have a paved width of 40 feet. The
City will also allow deviations to these standards, including the narrowing of streets if on -street
parking is restricted.
Pursuant to SB 1087, the Coachella Valley Water District will be provided the adopted Housing
Element, and will be required to establish specific procedures to grant priority service to
affordable projects. As water and sewer services are installed in most neighborhoods in the City,
the City's water and sewer provider, the Coachella Valley Water District, will not be constrained
in providing services in the City. The Coachella Valley Water District has an approved Urban
Water Management Plan, which was developed based on the City's General Plan build out,
which states that they have sufficient supplies available to meet the City's built out demands.
The District's Cook Street Plant (WRP-10), which provides sanitary sewer treatment for the
City, has a current combined secondary capacity of 18 million gallons per day, and in 2010
processed an annual average daily flow of approximately 10.8 million gallons per day. The
District therefore has more than enough capacity to treat wastewater generated by the City in the
future, including sufficient capacity to accommodate the regional housing need. As referenced in
its 2010 UWMP, CVWD's long-range plans include adding treated and untreated Colorado
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River water to its urban water distribution system, and using desalinated agricultural drain water
for irrigation purposes. The City routinely consults and coordinates with CVWD to assure that
services and facilities are adequate to meet the community's needs.
"Dry" utilities in the City include electricity, natural gas, telephone, cable, and solid waste
collection and disposal. Southern California Edison (SCE) provides electricity to most of the
City of Palm Desert. Imperial Irrigation District (IID) provides power to limited portions of the
City, including most of the California State University/San Bernardino (CSSB) Coachella Valley
Campus and the Avondale Country Club. Natural gas services and facilities are provided to the
most of the City by the Southern California Gas Company through regional high-pressure
transmission lines and medium -pressure distribution lines. Development located west of the
Palm Valley Stormwater Channel, parallel to Highway 74, is not connected to the natural gas
system and uses propane gas as an alternative fuel source. Telephone service is provided to the
City by Verizon, and cable television services are provided by Time Warner. Solid waste
collection and disposal is provided by Burrtec Waste & Recycling Services. The City coordinates
with utility and service providers, as necessary, regarding the planning, designing, and siting of
distribution and other facilities to assure the timely and environmentally sensitive expansion of
facilities.
Public Works Fees
Table III-28 depicts the City's Public Works fees, which include those fees associated with site
preparation and infrastructure.
Table III-28
Public Works Fees
Grading Plan Check (per plan)
Subdivision Plan Check
SWPPP/NPDES Plan Check
PM 10 Plan
''A Street Improvement Plan Check
Full Street Improvement Plan Check
Storm Drain Plan Check
Signing and Striping Plan Check
Traffic Signal Plan Check
Faithful Performance Bonds
Labor & Materials Bond
Signalization Impact Fee
Drainage Impact Fee
MSHCP Fee
WQMP Fee
$853.00 1st 3 acres
$310/acre ea. add. acre
$1,628 up to 8 lots; $78/lot each add.
$176.00
$78.00
$891.00/1000 LF
$1,550/1000 LF
$1,550.00/1000 LF
$1,110.00
$1,480.00
100% of Public Improvements + 25%
of Grading Amount
FPB
$50.00/unit
$1,000-$4,000/ac. (based on location)
8-14 d.u./acre $533
14+ d.u./acre $235
$2,000 deposit
Source: "Public Works Engineering Fees," City of Palm Desert, June 20, 2012.
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Because individual projects vary greatly, it is not possible to determine an average cost per unit
based on Public Works fees, however, the limited impact fees charged by the City make it one of
the less costly in the Coachella Valley in which to develop. These fees are not a constraint on the
development of affordable housing.
Building Code Reauirements
As with most communities in California, the City has adopted the California Building Code
(CBC), and updates the Code periodically as State-wide updates are developed. Currently
(2012), the City is enforcing the provisions of the 2010 CBC. The City cannot adopt standards
that are less stringent than the CBC. The only local amendments made by the City are
administrative, and relate to the timing of payment of fees. These amendments have no impact
on the provision of affordable housing. Since all communities in the State enforce similar
provisions, the City's CBC requirements are not an undue constraint on the development of
affordable housing.
Building Permit Fees
The Building Department charges on a per square foot basis for building permit plan checks and
inspections. For single family homes, the architectural and structural charge is $0.72 per square
foot for plan check, and $1.14 per square foot for inspection. For multi -family residential units,
the architectural and structural plan check fee is $0.30 per square foot for projects less than
15,000 square feet, and $0.28 per square foot for project of more than 15,000 square feet.
Inspection fees are $0.36 per square foot for the smaller projects, and $0.30 per square foot for
the larger projects. A flat fee of $105 is charged for permit issuance. In all cases, whether single
family or multi -family, additional charges apply for plumbing and electrical inspections.
New Construction Tax
Per Ordinance No. 216, a new construction tax of $0.40 per square foot is charged on all new
construction, including single- and multi -family development. This applies to gross building area
under roof and does not apply to garages, recreation structures, or other accessory structures.
Low Income Housing Mitigation Fee
Per City Resolution 90-130, all commercial development is assessed mitigation fees which are
directed toward low income housing. Fees are paid at the issuance of building permits, according
to the following schedule.
' "Building and Safety Fee Schedule," Resolution 2012-37, City of Palm Desert, June 22, 2012.
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Table III-29
Low Income Housing Mitigation Fee Schedule
Type of Development Fee
General Mixed Commercial $1.00 per sq. ft.
Professional Office $0.50 per sq. ft.
Industrial $0.33 sq. ft.
Resort Hotel (major amenities) $1,000 per room
Non -Resort Hotel (limited amenities) $620 per room
Other Development Fees
In addition to the City's fees, residential developers are responsible for the payment of the State
mandated school fees, as well as connection and/or metering fees for public utilities. These fees
vary somewhat from one provider to the next, but since many of the utilities in the Coachella
Valley serve all the cities, the fees are consistent throughout the area.
Policy 6 of this Housing Element allows the City Council to waive fees for affordable housing
projects on a case by case basis.
Code compliance for structural deficiencies or maintenance problems is processed as follows: A
phone call and/or a site visit is made to inspect the reported problem and discuss correction of
deficiencies with the owner. In most instances, this is sufficient to cause the violation to be
corrected by the property owner. If the violation is not corrected, a notice is sent to the owner,
giving the owner 20 days to correct the violation. The City has the ability to directly abate a
violation, if the owner is unwilling or cannot be located. All costs associated with abatement are
billed to the property owner. If the owner is unwilling to pay, a lien is placed on the property.
These procedures are typical of those employed by most cities in California, and do not place an
un-due constraint on the development or maintenance of housing.
Efforts to Remove Governmental Constraints
No governmental constraints have been identified that have a significant adverse impact on
housing development in Palm Desert. The City's permitting process and infrastructure
requirements are comparable to those of other Coachella Valley cities. Although some
application fees have increased somewhat since the last planning period, they remain among the
lowest in the region. General Plan and zoning land use designations allow for all types of
development and a broad range of densities. The City's housing policies and programs have been
reviewed and revised, as necessary, to assure that governmental constraints are minimized.
Economic Constraints
Economic constraints are those associated with the cost of land and construction, and the ability
to finance any housing, ranging from single family homes to larger apartment or condominium
projects. The cost of land varies somewhat from City to City in the Coachella Valley, but the
cost of construction, and the ability of homes and projects to financed, is regional in nature.
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Land and Housing Costs
During the recent economic boom, land costs rose significantly throughout California. The cost
of land has the potential to impact the overall cost of housing. Finished lots in Palm Desert can
cost from $50,000 to over $200,000, depending primarily on location. Infill lots in the southern
portion of the City are most difficult to find, as the City's core is mostly built out.
The cost of single family homes in Palm Desert has been significantly affected by the current
economic downturn. The median cost of existing homes continues to decline, dropping 12% in
two years, from $346,610 in the second quarter of 2010, to $306,656 in the second quarter of
2012. However, the new housing market is showing signs of recovery. The median cost of new
homes increased 59% from $188,875 in the second quarter of 2010, to $301,154 in the second
quarter of 2012.
The 2009-2011 American Community Survey identified that the median rental rate in the City
during this 3-year period was $1, 103. In order to update this information to current (2012)
conditions, representative rental rates for non -subsidized apartments were collected, and are
provided in Table III-30, below.
Table III-30
Representative Apartment Market Rental Rates in Palm Desert,
2013
Project Name Unit Size Market
Rental Rate
The Regent 1 & 2 Bdrm $930-$3,000
Desert Fountains Studio, 1 & 2 Bdrm $595-$899
Desert Oasis Studio, 1, 2 & 3 Bdrm $679-$1,419
The Enclave 1, 2 & 3 Bdrm $1,025-$1,755
The Vineyards 1, 2 & 3 Bdrm $1,085-$2,150
Royal Palms 2 Bdrm $895
Construction Costs
Construction costs have been similarly affected by current economic conditions. Single family
construction costs range from $95 to over $200 per square foot (excluding site improvements),
varying based on the size of the home and the materials selected. Multi -family construction costs
generally range from $90 to $150 per square foot.
Financing Costs
The cost of financing can also impact the development community's ability to fund projects. The
current mortgage crisis has made single family loans extremely difficult to secure. Although this
condition is not expected to continue through the entire planning period, the duration of the
current economic downturn could impact the ability of developers to fund and construct
affordable housing in the City.
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Physical Constraints
Aee of Housine Stock
The City's housing stock is relatively new. As shown in Table I11-19, above, 14,233 existing
housing units in the City are over 30 years old, representing 35% of the housing stock.
Maintenance in the City is not a significant issue, however, and the Redevelopment Agency has
programs in place to assist lower income households with home repairs and improvements.
Condition of Housing Stock
ACS 3-year estimates for 2009-2011 indicate that, of 24,005 occupied housing units in Palm
Desert, 100 (0.4%) lacked complete plumbing facilities, 156 (0.6%) lacked complete kitchen
facilities, and 437 (1.8%) had no telephone service available. Depending on overall conditions,
these units could be considered substandard. However, the Building and Safety Department
reported that no buildings in the City were demolished in 2012 due to unsafe conditions.
As described in the Evaluation section above, 39 households were assisted through the City's
Single -Family Rehabilitation Program and Housing Improvements Program in the period from
2006 to 2011, or an average of 6 units annually. The program was eliminated in FY 2011/12 in
conjunction with the elimination of the Redevelopment Agency. However, as of July 1, 2012, the
City proposes to continue the availability of program funding under the Community
Development Block Grant (CDBG) program as grant assistance to very low, low, and moderate
income homeowners and restricted to emergency housing situations (such as those pertaining to
health, safety, and substandard living conditions).
Environmental Constraints
The City is identified as Zone III and IV in the Uniform Building Code for seismic activity. The
UBC imposes certain standards for construction in these zones, which may add to the overall
costs of housing. These standards, however, are necessary for the public health and safety, and
are common throughout the Coachella Valley and California. None of the proposed sites occur
on lands designated as Alquist Priolo Earthquake Fault Zones by the State. There are no active
faults on any of the sites proposed for development of affordable housing units in the City. The
standards required to protect the City's residents from seismic hazards are not considered a
constraint to the provision of housing. There are no other environmental constraints to the
development of housing.
Energy Conservation
In addition to the requirements of Title 24 of the Building Code, the City has enacted additional
energy efficiency requirements, water conserving landscaping requirements, and has a number of
energy conservation programs for residents. Although the cost of installation of energy efficient,
`.green" or similar products in a home or apartment may increase the initial cost, the affordable
housing providers who participated in the City's workshops for this Housing Element clearly
indicated that the cost differential was becoming smaller as technologies improved; and that the
long term benefit to the home owners or renters was worth the added initial expense. These
developers implement energy conserving construction to the greatest extent possible in their
projects.
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HOUSING NEEDS
SPECIAL HOUSING NEEDS
This section of the Housing Element quantifies households with special needs such as
farmworkers, the homeless and the elderly living in the City. These households can have housing
needs which may be more difficult to address, and which require special attention.
Farm Workers
Farm workers are employed in agricultural industries, including livestock, crops, and nursery
products, and typically perform manual and/or hand tool labor to plant, cultivate, harvest, or pack
field crops. The industry is supported by both year-round and seasonal workers who typically
earn low wages, have difficulty obtaining safe and affordable housing, and have limited access to
other services, such as education, transportation, and health care. Seasonal or migrant workers
who travel from their permanent homes to work during harvest periods may live in rooming
houses, finished garages, trailers, or other temporary shelters.
Citrus, melon, vegetable, and nursery stock production is a key component of the Coachella
Valley economy. However, agriculture is focused on the east end of the Coachella Valley,
approximately 10 miles or more to the southeast. The "Coachella Valley Farm Worker Survey"
(2007) prepared by the Riverside County Department of Public Social Services interviewed 525
farm workers in the Coachella Valley and found that 90% of respondents lived in the eastern
valley cities of Mecca, Thermal, Coachella and Indio. Palm Desert's continued urbanization has
eliminated commercial farming in the City, and no agricultural lands are designated in its
General Plan. Between 2009 and 2011, there were 573 persons employed in "agriculture,
forestry, fishing and hunting, and mining" in the City, which constitutes only 2.8% of the City's
civilian employed population 16 years and over. Demand for housing specifically targeted for
farm workers has not been identified.
Homeless
Homeless persons are those in need of temporary or emergency shelter and include a diverse
population of individuals, including seniors, veterans, substance abusers, immigrants, physically
or mentally disabled, and families with children. Homeless individuals may live in vehicles,
encampments, abandoned buildings, outdoors, or homeless or transitional shelters.
The Riverside County Department of Public Social Services completed a homeless count in 2011
for all cities and some unincorporated areas in the County. That effort identified 72 homeless
persons in Palm Desert, including 62 "sheltered" individuals (in emergency shelters or
transitional housing) and 10 "unsheltered" individuals (living on streets or in vehicles,
encampments, storage structures, or other places unfit for human habitation).2 This estimate
represents 0.1% of the City's total 2010 Census population of 48,445 people. The actual number
of homeless may be higher given that many individuals, particularly women and children, remain
hidden for safety or stay in locations where they cannot be seen. This represents an increase of
89% over the County's 2009 count (38 individuals).
2 Figure 3, "Homeless County & Survey Comprehensive Report," prepared for Riverside County Department of
Public Social Services, 2011.
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The study found that, of all homeless individuals identified in Riverside County (not just Palm
Desert), 55% were over the age of 40, 51 % had been homeless for one year or more, 69% said
they had one or more disabling conditions, and 42% reported they were experiencing substance
abuse issues. The majority (70%) indicated they had been homeless one time in the last 12
months (including the present time).
The City is a participant in the Coachella Valley Association of Governments' (CVAG)
Homelessness Strategic Plan, which built Roy's Desert Resource Center ("Roy's") in the western
Coachella Valley. The facility opened in December 2009 and provides emergency and
transitional shelter and support services for 90 homeless individuals (families and single adults)
for a maximum of 120 days. Among the services provided are living skills, advocacy,
employment assistance, housing placement assistance, child care, and health care services. In
2011, Roy's sheltered 858 individuals, 60% of which were successfully placed into housing.3
The Strategic Plan includes long range goals to establish 225 emergency shelter beds (doubling
the current size), 225 transitional housing units, 200 supportive housing units, and rental
subsidies for 200 units in the western Coachella Valley. The City has committed to funding this
initiative for 10 years, beginning in FY 2009/10, in the amount of $103,000 per year or a total of
$1,023,805.
A number of other organizations provide shelter and services to the homeless throughout the
Coachella Valley. Shelter From the Storm, which operates battered women's shelters in several
cities in the Valley, operates a transitional facility in the City for 20 women and their children.
Desert Horizon is a transitional housing program in the western Coachella Valley that houses up
to 32 individuals in furnished multi -bedroom units and provides them with personal supplies,
food, bus passes, and wide range of supportive services, including employment and housing
placement assistance. Residents are charged 30% of their income based on HUD guidelines.
Desert Vista Permanent Supportive Housing is a HUD -funded program that provides housing
and services to 40 homeless individuals with disabilities. Clients pay up to 30% of their income
based on HUD guidelines.
The City permits homeless shelters in the Service Industrial zone. There are 344.17 acres of
serviced, vacant land in this zone in the City, ranging in size from 1 to 20 acres. The Service
Industrial zone is appropriate for such facilities because these lands are located on transit lines,
near commercial and school sites, and in areas where other governmental services are available.
The City allows transitional and supportive housing in the R-2 zone with a conditional use
permit and by right in the R-3 zone. There are 12.7acres of vacant land in the City for these two
zones. This represents sufficient land to allow for the development of transitional or supportive
housing to meet demand in the City.
3 Roy's Desert Resource Center 2011 Statistics.
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Total, City of Palm Desert
Total, Householders 65 Years
& Over
TN/City of Palm Desert
General Plan/Housing Element
The Elderly
The Coachella Valley has a long-established reputation as a popular retirement destination. In
2010, the City had 15,923 persons over the age of 65, representing 32.9% of the population.
These seniors were in a total of 10,874 households. Home ownership data is shown in the Table
below and indicates that approximately 19% of seniors are renters, and 81% are homeowners.
Table III-31
City of Palm Desert
Householders 65 Years and Over, by Tenure
Owner -Occupied Renter -Occupied
Housing Units Housing Units
16,254 7,751
8,776 2,098
Source: 2009-2011 American Community Survey, 3-Year Estimates, S2501.
Total Occupied
Housing Units
24,005
10,874
Special considerations affecting senior households include income limitations, access to health
care and transportation, accommodations for physical disabilities and limitations, and long-term
care concerns. Senior housing needs can include low-income apartments, retirement
communities, independent living centers, assisted living centers, nursing homes, and hospice
care centers.
There are seven senior apartment projects in the City which are owned by the City, providing
380 units for very low, low and moderate income senior households. Nursing care facilities in
the City include the Carlotta, with 192 beds; Manorcare Health Services, with 178 beds; and
Monterey Palms, with 99 beds. Numerous senior communities are located in the City, including
Atria Palm Desert, Atria Hacienda, Segovia, Palm Desert Senior Living, Fountains at the
Carlotta, Legend Gardens, and Hovley Care Services, which provide a range of services
including medical transport, assistance with housekeeping and personal care, hospice and
dementia care, and onsite recreational and social opportunities.
The City's Senior Housing Overlay provides flexible development standards for a variety of
housing for residents age 55 and over, including attached or detached units for sale or rent and
associated recreational facilities.
Persons with Disabilities
This population includes individuals with mental and physical disabilities that may require
affordable housing with convenient access to public transportation and health care services, as
well as structural adaptations to accommodate wheelchairs and other assistive devices. Housing
needs can include independent home environments, homes with special modifications and design
features, supervised apartments, inpatient and outpatient treatment programs, and senior care
facilities. Individuals who are unable to work because of disability may require income support,
and their limited incomes can severely restrict their ability to pay for housing and living
expenses.
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The 2009-2011 ACS identified 7,419 persons in the City with disabilities, of which 4,859 (65%)
were persons over the age of 65. The Table below identifies the number of disabilities, by type,
for Palm Desert residents.
Table III-32
City of Palm Desert
Number of Disabilities, by Disability Type'
Number of Percent of Total
Disabilities Disabilities
Disabilities, ages 0-64
Hearing Difficulty 580 3.8%
Vision Difficulty 259 1.7%
Cognitive Difficulty 1,004 6.7%
Ambulatory Difficulty 1,305 8.7%
Self -Care Difficulty 599 4.0%
Independent Living Difficulty 1,088 7.3%
Total, ages 0-64 4,835 32.2%
Disabilities, ages 65+
Hearing Difficulty 2,240 14.9%
Vision Difficulty 678 4.5%
Cognitive Difficulty 961 6.4%
Ambulatory Difficulty 3,188 21.3%
Self -Care Difficulty 1,006 6.7%
Independent Living Difficulty 2,093 14.0%
Total, ages 65+ 10,166 67.8%
TOTAL DISABILITIES,
all age groups: 15,001 100%
Represents the number of disabilities, not the number of individuals. One individual may
have one or more disabilities.
Source: S1810, "Disability Characteristics," City of Palm Desert, 2009-2011 American
Community Survey 3-Year Estimates.
Facilities that provide specialized accommodations and services for the disabled are located in
the City and Coachella Valley region, and are identified in the "Elderly" discussion above, and
"Developmentally Disabled" section below. In addition, Desert Vista Permanent Supportive
Housing, a HUD -funded program, provides housing and services to 40 homeless individuals with
disabilities. Clients pay up to 30% of their income based on HUD guidelines.
The California Building Code requires that all new multi -family construction include a
percentage of units accessible to persons with disabilities. The City of Palm Desert Building
Department requires compliance with these standards as part of the Building Permit review and
inspection process. The City's affordable housing projects include units for persons with
disabilities.
The City adheres to State guidelines regarding handicapped access, and promotes the use of
principles of architectural design that aid the disabled. The Americans with Disabilities Act
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General Plan/Housing Element
requires all new multi -family construction to include a percentage of units accessible to persons
with disabilities. The City monitors and requires compliance with these standards as part of the
building permit review, issuance, and inspection process.
The City imposes no special requirements or prohibitions on the development of housing for
persons with disabilities, beyond the requirements of the Americans with Disabilities Act. There
is no concentration restriction for residential care homes. State and federal law does not permit
the City to regulate group homes of 6 or fewer residents. Group homes of 7 or more residents are
permitted, with approval of a conditional use permit, in the R3 zone. In 2013, the Zoning
Ordinance was amended to increase the opportunities for group homes of 7 or more. The City
revised the ordinance to allow them in the R-1 and R-2 zones, in addition to the R-3 zone. It also
revised the definition of "family" to be consistent with current federal definitions.
Persons with Developmental Disabilities
Per Senate Bill No. 812, the Housing Element must include analysis of the special housing needs
of individuals with developmental disabilities. A developmental disability is defined by Section
4512 of the Welfare and Institutions Code as "a disability that originates before an individual
becomes 18 years old, continues or can be expected to continue indefinitely, and constitutes a
substantial disability for that individual." This includes mental retardation, cerebral palsy,
epilepsy, and autism, as well as disabling conditions found to be closely related to mental
retardation or to require treatment similar to that required for individuals with mental retardation,
but does not include other handicapping conditions that are solely physical in nature. The
Housing Authority estimates that 32 of their units are currently occupied by developmentally
disabled individuals.
The California Department of Developmental Services (DDS) implements a statewide system of
community -based services for people with developmental disabilities and their families. DDS
contracts with the Inland Regional Center in Riverside to provide and coordinate local services in
Riverside County, including the City of Palm Desert. The Table below quantifies the
developmentally disabled population in Palm Desert that is being served by the Inland Regional
Center.
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General Plan/Housing Element
Table III-33
City of Palm Desert
Developmentally Disabled Population
Served by Inland Regional Center
Age Group # of Individuals
0-2 23
3-15 54
16-22 24
23-56 67
57+ 5
Total: 173
Includes individuals in zip codes 92260 and 92211.
Source: Inland Regional Center, November 19, 2012.
Housing needs for individuals with developmentally disabilities can range from traditional
independent living environments, to supervised group quarters, to institutions where medical
care and other services are provided onsite. Important housing considerations for this group
include proximity to public transportation, accessibility of the home and surroundings, access to
medical and other public services, and affordability.
A variety of housing options in the Coachella Valley are provided by local and regional service
agencies, including the following:
• Angel View Crippled Children's Foundation, based in Desert Hot Springs, operates 19 six -
bed group homes for children and young adults with developmental and physical disabilities.
The homes provide 24-hour nursing and/or attendant care and can accommodate 100+
individuals at a time. There are 17 homes in the Coachella Valley, including 12 in Desert Hot
Springs, 4 in Palm Springs, and 1 in Thousand Palms.
• The Inland Regional Center oversees the management of 8 single-family residential facilities
in the Coachella Valley. Each facility houses 4-6 individuals and provides 24/7 staff
supervision. Residents are placed by Inland Regional Center and must meet State -mandated
qualifications.
• Casas San Miguel de Allende in Cathedral City includes 38 apartment units for
developmentally and physically disabled individuals.
• Canyon Springs in Cathedral City is a State developmental center operated by DDS. It
provides residential services, treatment, and job training for up to 63 adults with
developmental disabilities, some of which also have mental health needs. Referrals for
admission are made by the Inland Regional Center. In November 2012, it served 55
individuals.
Other Local agencies provide additional support services to the developmentally disabled
population. Desert Arc, based in Palm Desert, provides vocational training and employment to
adult clients with developmental disabilities in the Coachella Valley and Morongo Basin. It
operates on -site businesses at its primary campus in Palm Desert, and two smaller workshop
facilities. Most clients are placed by the Inland Regional Center. Of its ±500 clients, 51 are Palm
Desert residents.
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Through its building permit review and inspection process, the City adheres to the Americans
with Disabilities Act and California Building Code, which require that all multi -family
development include a percentage of units that are accessible and "barrier -free" to disabled
residents. In 2013, the City also amended its Zoning Ordinance to allow group homes of 7 units
or more in the R-2 zones and R-3 zone. The City will continue to coordinate with the Inland
Regional Center and other appropriate agencies and organizations that serve this population. The
City will continue to encourage developers to reserve a portion of affordable housing projects for
the disabled, including those with developmental disabilities, and will continue to identify and
pursue funding sources for special needs housing.
Extremely Low Income Households
Extremely Low Income Households are those which earn less than 30% of the median income in
a region. These households require assistance for decent housing. Currently (2013), there are
more than 37% of the units within the City -owned affordable housing portfolio which are
occupied by extremely low income households. The City has made an extraordinary effort to
accommodate the needs of these households, and will continue to do so in this planning period.
Large Families
Large family households (those with 5 or more people) require larger homes with more
bedrooms and may find it difficult to locate adequate and affordable housing if there is a limited
supply of larger units. The cost of larger homes is typically higher than smaller units, and large
families can experience a higher cost burden associated with housing.
The 2009-2011 ACS indicates there were 978 households with five or more persons in the City,
which constitutes 4.1% of all households. This represents a 7% decrease from year 2000 (1,052
households). ACS also identified a total of 4,232 housing units with 4 or more bedrooms, or
10.5% of all housing units in the City. As shown in Table 1II-22, only 2.9% of occupied units in
the City have 1.01 or more persons per room and, therefore, are considered "overcrowded." This
suggests that there are generally a sufficient number of larger housing units to accommodate
larger families.
Large, very low income households may find it difficult to find affordable and adequate housing.
According to ACS data for 2009-2011, of the 978 households with 5 or more people in Palm
Desert, 11.7% of them live below the poverty level. The City implements a number of housing
programs to assist with finding adequate housing, including the provision of affordable housing
units, mortgage and home ownership guidance, and home rehabilitation programs.
The stakeholders' workshop conducted in March 2013 in preparation for this Housing Element
update continued to support that local affordable housing providers, including the Coachella
Valley Housing Coalition, are finding that the need for larger units, although not eliminated, has
been reduced in recent years. A drop in the number of children per family, and an attitudinal
change in multi -generational living were theorized to be the reasons for the lower demand for
these units.
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Female -Headed Families
Female -headed households can experience lower incomes, higher living expenses, higher
poverty rates, and low rates of homeownership. Finding adequate and affordable housing is a
high priority. Special considerations for this population include proximity to schools, child care,
employment, and health care.
ACS data from 2009-2011 show there were an estimated 1,848 households with a female
householder (no husband present) in the City. The average household size for female -headed
households was 3.14 persons, larger than the average of 2.02 persons in the City as a whole.
Approximately 55% of female -headed households had children under 18 years of age.
Owner -occupied housing units with a female householder accounted for 6.8% (1,105) of all
owned units in the City, and renter -occupied housing units with a female householder accounted
for 9.6% of all rental units. Of all female householder housing units, 59.8% were owner -
occupied, and 40.2% were renter -occupied.
The City's continued implementation of affordable housing projects, public outreach efforts on
fair housing issues, and efforts to maintain affordability restrictions on affordable units will serve
those female -headed households requiring housing assistance.
Affordable Units at Risk
The Regent Palm Desert apartments, formerly the Sevilla or Saint Tropez apartments, located at
73373 Country Club Drive, include 103 units restricted to low income households. The project is
not age -restricted. This project, privately owned, is at risk of eliminating the affordability
restrictions in 2016. The project received a density bonus in exchange for affordability
covenants. The City has been in discussion with the owner of the project multiple times in an
effort to extend the affordability, but with no success.
Maintenance of the at -risk housing units as affordable will depend largely on market conditions,
the status of HUD renewals of Section 8 contracts, and the attractiveness of financial incentives,
if warranted. The cost to replace the 103 units will vary based on the timing of replacement and
the economic conditions in the region. The Building Industry Association estimates that new
multiple -family projects cost $125 to $130 per square foot. Using the average square footages of
1,000 square feet, the building replacement cost would be $13.4 million dollars. If the Canterra
Apartments were to be replaced (please see below), the cost would be $4.03 million.
The affordability restriction will also expire for two other housing projects during the 2014-2021
planning period. In 2014, the affordability restriction will expire on 16 units at Shadow Hills
Estates (lots 2, 3, 8, 9, 15-18, and 23-29). In 2019, the affordability restriction will expire on 31
units at Canterra Apartments (Phase I) located at 74401 Hovley Lane East.
Perhaps the most effective means for preserving affordable units at risk of conversion to market
rates units would be the transfer of ownership. A nonprofit housing corporation could purchase
the project, rehabilitate it using Low Income Housing Tax Credits, and then extend the
affordability controls. Qualified entities who could take on these projects include Habitat for
Humanity and the Coachella Valley Housing Coalition. The City could facilitate this effort
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General Plan/Housing Element
through a reduction in building permit fees, impact fees, or other indirect assistance. However,
because of the elimination of redevelopment, the City will be unable to consider the purchase of •
these properties, and will have to rely on third party private sector involvement for the
preservation of these units. Program 6.B addresses the preservation of these units.
Riverside County Income Limits
Income limits for affordability are established annually on a regional basis by the Department of
Housing and Community Development. Table 111-34 provides the current (2012) income limits
applicable in Palm Desert. The median household income for a family of four in 2012 is
$63,300.
Table III-34
Riverside County Housing Program Income Limits 2013
Number of Persons in Family
Income Category 1 2 3 4
Extremely Low $14,100 $16,100 $18,100 $20,100
Very low $23,450 $26,800 $30,150 $33,500
Lower $37,550 $42,900 $48,250 $53,600
Moderate $54,600 $62,400 $70,200 $78,000
Median $45,500 $52,000 $58,500 $65,000
Source: HUD and HCD
Households Overpaying for Housing
When a household pays more than 30% of its income toward its housing expenses, it is
considered to be over -paying. The 2005-2009 CHAS Databook identifies the following low, very
low, and extremely low income households overpaying for housing:
Table III-35
Overpayment by Income Level 2005-2009
Household Type Low Very Low Extremely
Income Income Low Income
Total Renter Occupied 1,435 910 955
Total Owner Occupied 1,200 795 1,065
For all income levels, the 2010 Census identifies 5,278 owner households and 4,216 renter
households paying 30% or more for housing, for a total of 9,494 households overpaying for
housing.
Affordability of Housing
In order to determine the level of affordability for market housing in Palm Desert, a comparison
of for -sale and for -rent market housing was undertaken. Table III-36 illustrates that the moderate
income household of 4 in Palm Desert is able to find rental housing well within its ability to pay,
Housing Element
III-46
TN/City of Palm Desert
General Plan/Housing Element
and can afford to buy a median priced home. The Table demonstrates that both purchased and
rental units are affordable to moderate income households in the City.
Table III-36
Affordability of Housing 2010
Type of Housing Cost Ownership Rental
Median Single Family $317,100 N/A
Purchase Price
Median Mortgage Costs $1,894 N/A
(PITI)
Rental Rate N/A $1,103
30% of Moderate $1,950 $1,950
Household Income
Affordability Gap $56 $847
Regional Housing Needs Allocation
The State and Southern California Association of Governments develop housing allocations for
each Housing Element planning period. For the 2014-2021 planning period, Palm Desert's share
of the Regional Housing Needs Allocation (RHNA) is:
Table III-37
RHNA by Income Category, 2014-2021
Units
Extremely Low Income 49
Very Low Income 49
Low Income 67
Moderate Income 76
Above Moderate Income 172
Total Units Needed 413
Quantified Objectives
Table III-38
Quantified Objectives Matrix, 2014-2021
Income Category Extremely Very Low Low Moderate High Total
Low
New Construction 49 49 67 76 172 413
Rehabilitation 10 10 20 0 0 40
Conservation 10 10 20 20 0 60
Housing Element
III-47
TN/City of Palm Desert
General Plan/Housing Element
LAND INVENTORY
The City's Regional Housing Needs Assessment for 2014-2021 estimates that a total of 413
housing units will be built in the City. Of these, 172 are expected to be constructed for those of
above moderate income, and 76 for moderate income households. These units are expected to be
market -driven, and constructed in the single family homes traditionally built in the City. The
remaining 165 housing units are to be provided for those of extremely low, very low and low
incomes.
Land in the southern portion of the City is mostly built out, with only infill development
opportunities available at higher densities. The Land Use Element includes the University Park
area, which is designed to accommodate this higher density.
Table II1-38 lists the available vacant lands in the City by Assessor's Parcel Number, provides
the size of each parcel, and the potential number of units that could be developed on that parcel.
These parcels were identified in the previous Housing Element to meet the City's RHNA at the
time. As the RHNA has been reduced, the potential units which could result on these lands far
exceed the City's current RHNA. However, since there has been no construction activity in the
City since adoption of the previous Housing Element, and since these lands remain appropriate
for the development of high density housing, whether at affordable or market rates, the Land
Inventory has not been amended. All the parcels are zoned at densities of up to 22 units per acre,
and with the application of density bonuses and other provisions, could develop at higher
densities than 22 units per acre.
Lands provided in the inventory have been calculated at a density of 15 to 20 units per acre.
Assuming an average unit size of 1,000 square feet, 28 units per acre can be achieved with 2
story buildings, which is the current height limit in the PR zone. This also assumes common area
open space in compliance with Zoning requirements, and surface parking. As this zone allows
building coverage of 40%, there is more than sufficient space to accommodate the density
assumed in the inventory. Further, the density assumptions are conservative compared to
typically built densities in each of the zones. The most recent projects built in the City were
constructed at densities of 25 to 28 units per acre.
The vacant lands in the northern section of the City where most of the City's affordable housing
need is proposed to be met are for sale in the range of $130,000 to $305,000 per acre. At a
density of 15 units per acre, land costs are therefore expected to be between $8,700 and $20,350
per unit. The three most recently completed affordable housing projects in Palm Desert had
construction costs ranging from $136,450 to $211,150 per unit. Construction costs have been
reduced since that time. Therefore, total construction cost in Palm Desert at a typical density of
15 units per acre can be expected to be no more than $147,800 to 233,800 per unit. Projects in
this cost range can be funded, when including HOME funds, tax credit funds or other programs,
and built at a density of 15 units per acre. Most importantly, the affordable housing community
continues to state to City representatives that projects above this range are not marketable,
insofar as more dense projects cannot be built and include the amenities and common areas that
make a project a liveable community for the families who are looking for rental units. The
Coachella Valley Housing Coalition and Palm Desert Development, who attended the City's
workshops, clearly stated that they will not plan projects at densities over 16 units per acre, since
Housing Element
111-48
TN/City of Palm Desert
General Plan/Housing Element
the higher densities do not allow them to create communities that they can lease, because they
cannot provide the services and amenities that create a healthy living environment.
Assessor's Parcel No.
694-130-017 (D)
694-130-021 (G)
694-130-018 (D)
694-190-008 (H)
694-200-014 (J)
694-130-012 (E)
694-130-003 (F)
685-010-005 (A)
694-310-001 & 005 (B)
694-120-012 (C)
627-273-018
627-273-005
625-171-001
627-121-044
627-121-045
Table III-38
Inventory of Available Vacant Lands
General Size (Acres)
Plan/Zone
R-M, R-HO/PCD 10.21
R-M, R-HO/PR-20 24.16
R-M, R-HO/PR-20 3.48
MU/PR-20 15 of 29.36
R-M, R-HO, 11.46
MU/PR-20
R-M, R-HO/PR-5 33.71
R-M, R-HO/PR-20 18.92
C-R/PR-20 30
C-R/PR-22 10
I-B P/PR-20 10
R-M/R-3 0.3
R-M/R-3 0.3
627-301-022
627-153-007
627-101-033,-038,-039,-002,-017
627-041-010 through 013, -29, 031 - 033
627-051-002
627-031-030
627-052-006
627-052-031
627-052-033
627-084-001
627-084-003
627-182-004
627-182-005
627-182-006
627-351-042
627-351-019
625-224-001
625-126-009
625-061-018
625-021-008
625-031-011
625-032-011
624-241-008
Total Units
R-M/R-3
R-H/R-3
R-H/R-3
R-H/R-3
R-H/R-3
R-M/R-3
R-M/OP* and R-2
R-M/R-2
RM/R-2
R-M/R-2
R-M/R-2
R-M/R-2
R-M/R-2
R-M!R-2
R-M/R-1
R-H/R-1
R-H!R-1
R-M/R-2
R-M/R-1
R-M/R-1
R-H/R-3
R-M/R-1
R-M/R-1
R-M/R-1
R-M/R-1
R-M/R-1
0.3
0.25
0.25
0.31
0.22
1.64
1.20
0.16
0.17
0.17
0.16
0.16
0.22
0.19
0.20
0.20
0.17
0.20
0.17
0.19
0.14
0.15
0.19
2.20
0.21
0.12
Potential
Units
176
200
72
160
194
235
302
432
200
200
7
7
7
6
6
7
5
22
19
2
2
2
2
2
2
2
1
1
1
2
1
1
2
1
1
1
1
1
2,294
1
Housing Element
111-49
TN/City of Palm Desert
General Plan/Housing Element
As shown in the inventory, approximately 2,294 units could be constructed on lands which are
currently available for multiple family residential development. In addition to. the vacant lands
included above.
The following units, their status in the planning and/or construction process, and the anticipated
financing, if known, are described below:
• 31 units at Canterra Phase I1: The project is approved, and a Development Agreement is
in place with a private developer. That developer will secure funding. The project is
inactive due to economic conditions.
• 21 units at PD 103: The project developer has secured entitlements. The developer will
secure funding. The project is inactive due to economic conditions.
• 200 units at Dinah Shore and Portola: The property is owned by the City. The City will
consider funding, or a partnership with a private developer or non-profit organization in
the development of the site.
• 72 units at Carlos Ortega Villas: The City has completed the design phase, and bond
funding was issued for this project prior to the elimination of redevelopment. The City is
currently coordinating with the California Department of Finance to maintain bond
funding.
• Sagecrest Apartments: This dilapidated 14-unit property was acquired in 2008 and
deconstructed by RDA during fiscal year 2010/11. Due to the elimination of RDA, the
project has been placed on hold.
• 220 units that will include single family for -sale and multi -family for rent units at Gerald
Ford Drive and Portola: The property is owned by the City which will consider funding,
or a partnership with a private developer or non-profit organization in the development of
the site.
• an additional 52 units at the Vineyards: The units are built market rate apartments. The
Agency has an agreement with the developer to purchase affordability covenants
• 86 units at Key Largo: The property is privately owned. The developer may request City
funding for a part of the project. The project is inactive due to economic conditions.
• 39 units at Frank Sinatra and Cook Street: The property is privately owned. The property
owner will secure financing. The project is inactive due to economic conditions.
• Approximately 302 units at Dinah Shore and 35`h Avenue (southeast corner): The
property is privately owned. The property owner will secure financing. The project is
inactive due to economic conditions.
As many of these sites are larger, Program 1.G has been provided to encourage the subdivision
of these sites to facilitate multi -family development.
Housing Element
II1-50
TN/City of Palm Desert
General Plan/Housing Element
PUBLIC PARTICIPATION
The City initiated the Housing Element Update process with a joint study session of the Planning
Commission and City Council. The Study Session was noticed on the City's website, and posted
at City Hall. In addition, it was publicized by staff and the Council at public meetings and
hearings prior to the Study Session. The City also held two public input workshops. The first was
geared toward the development community, including affordable housing developers, market
rate developers and others. This workshop was advertised in the Desert Sun, and personal written
invitations were sent to developers who are, or have been active in the community. The second
workshop was geared to residents, and was held in the evening, after working hours, to allow for
maximum participation by working people. The workshop was advertised in the Desert Sun,
posted on the City website's Event Calendar, and announced at public meetings.
The input received at the workshops focused on two issues. From the development community,
the discussion centered on concerns associated with financing, now that Redevelopment funds
have been eliminated. There were also questions about the density and mix of units associated
with specific sites on the Land Inventory, particularly sites in the northern part of the City. At the
residents' workshop, the discussion focused on educating the public present about the Housing
Element and its requirements, and the location of specific sites on the Land Inventory. In
particular, the reconfiguration of site B to accommodate needed regional flood control facilities
was considered a positive improvement in the Land Inventory.
The City will continue to advertise Housing Element hearings in the Desert Sun, and send
notices to local affordable housing developers such as Palm Desert Development and the
Coachella Valley Housing Coalition.
Finally, public hearings were held before the Planning Commission and City Council for the
adoption of the Element, in August and September 2013.
Housing Element
111-51
TN/City of Palm Desert
General Plan/Housing Element
GOALS, POLICIES AND PROGRAMS
Goal 1
A variety of housing types that meet all of the housing needs for all income groups within the
City.
Goal 2
The preservation and maintenance of the high quality of the City's affordable housing supply.
Policy 1
New affordable housing projects shall be encouraged in all areas of the City. Special attention
will be made to distributing the units so that large concentrations of affordable housing in any
one area are avoided.
Program 1.A
The City shall work with affordable housing developers, non-profit agencies and other
stakeholders to implement the following affordable housing projects for extremely low, very
low, low and moderate income households during the planning period. For Carlos Ortega Villas
and Sagecrest Apartments, the Housing Authority shall market these projects to the development
community through direct mail, announcements on the City's web site and Requests for
Proposals, once funding sources have been identified
• 31 units at Canterra Phase 11
• 21 units at Palm Desert 103
• 200 units at Dinah Shore and Portola
• 72 units at Carlos Ortega Villas
• 16 units at Sagecrest Apartments
Responsible Agency: Community Development Department and Housing Authority
Schedule: 2014-2021
Program 1.B
The City shall pursue the planning and implementation of the following projects for extremely
low, very low, low and moderate income households during the planning period. The City will
utilize public -private partnerships, grants and third party funding for these projects, and
affordable housing funds if restored by the State Legislature.
• 520 units that will include single family for -sale and multi -family for rent units at Gerald
Ford Drive and Portola
• an additional 52 units at the Vineyards
Responsible Agency: City
Schedule: 2014-2021
Program 1.0
The City shall encourage and facilitate the development by private parties of the following
projects for extremely low, very low, low and moderate income units:
Housing Element
111-52
TN/City of Palm Desert
General Plan/Housing Element
• 432 units at Key Largo
• 194 units at Frank Sinatra and Cook Street
• Approximately 302 units at Dinah Shore and 35th Avenue (southeast corner)
The City shall annually contact the owners/developers of these lands and review with them the
incentives and financing options available through State and federal loan and grant programs,
and local non-profit agencies to assure that all potential financial mechanisms are being
considered for the project(s).
Responsible Agency: City
Schedule: 2014-2021
Program 1.D
The City shall continue to implement the Self Help Housing program when funds are available.
The City will work with agencies such as Habitat for Humanity and Coachella Valley Housing
Coalition to identify funding and the location of these units.
Responsible Agency: City
Schedule: 2016-2018, as funding is identified
Program 1.E
The City shall maintain its inventory of sites zoned for PR-7 and R-3, and shall encourage the
incorporation of extremely low, very low, low and moderate income housing units into these
projects as they are brought forward.
Responsible Agency: Planning Department
Schedule: As project applications are submitted
Program 1.F
The City will encourage further land divisions resulting in parcel sizes that facilitate multifamily
development affordable to lower income households in light of state, federal and local financing
programs (i.e. 50-100 units) as development proposals are brought forward. The City will discuss
incentives available for land divisions (e.g., 2-5 acres) encouraging the development of housing
affordable to lower income households with housing developers as proposals are brought
forward. The City will offer incentives for land division encouraging the development of
affordable housing including, but not limited to:
• priority to processing subdivision maps that include affordable housing units,
• expedited review for the subdivision of larger sites into buildable lots where the
development application can be found consistent with the Specific Plan,
• financial assistance (based on availability of federal, state, local foundations, and private
housing funds).
Responsible Agency: Planning Department
Schedule: As projects are proposed
Policy 2
The City shall encourage the rehabilitation of existing housing units through a variety of
programs.
Housing Element
III-53
TN/City of Palm Desert
General Plan/Housing Element
Program 2.A
The City shall fund the Home Improvement Program For single family homes by providing
grants and low interest loans to program participants. The program will be provided to the extent
that funding is available, to up to five households each year.
Responsible Agency: City
Schedule: Annually as funds are available
Policy3
The City shall preserve existing affordable housing units.
Program 3.A
The Housing Authority shall continue to subsidize affordable housing units it owns now and in
the future using operating revenues.
Responsible Agency: Housing Authority
Schedule: Annually in the Housing Authority Budget
Program 3.B
The Housing Authority shall maintain the existing resale restrictions and other subsidies on 303
ownership units if permitted to do so by the Department of Finance.
Responsible Agency: Housing Authority
Schedule: Throughout the planning period, if permitted by the Department of Finance
Program 3.0
The Housing Authority owns approximately 1,000 existing rental housing units and will strive to
maintain its ownership and/or long term affordability of these units by a third party.
Responsible Agency: Housing Authority
Schedule: Annually in the Housing Authority Budget
Program 3.D
The City shall coordinate between affordable housing developers and social service agencies
when new projects are developed to encourage the integration of services such as child care, job
training, vocational education, and similar programs into new affordable housing projects
through direct contact with both parties. For on -site child care, the Agency shall consider
allocation of the City's Childcare Mitigation Fee to new projects which provide the service.
Responsible Agency: Housing Authority, City Manager's Office, Community Development
Department
Schedule: As projects are proposed
Policy 4
The City shall continue to strive to meet the State -mandated special shelter needs of large
families, female headed households, single parent families, senior citizens, and disabled
individuals and families, and shall consider including units for such households in its projects.
Housing Element
111-54
TN/City of Palm Desert
General Plan/Housing Element
Program 4.A
The City shall continue to enforce the provisions of the Federal Fair Housing Act. The City shall
continue its referral program to the Fair Housing Council of Riverside County, and shall
maintain information at City Hall and affordable housing complexes.
Responsible Agency: City and Housing Authority
Schedule: Brochures and flyers available at Housing Authority properties, Library, and
apartment managers' offices
Program 4.B
The City shall work with the Senior Center and other appropriate agencies in the housing of
disabled residents.
Responsible Agency: Senior Center
Schedule: Annually through staff training program
Program 4.0
The City shall meet with non-profit developers and other stakeholders annually to establish and
implement a strategy to continue to provide housing affordable to extremely low-income
households. The City shall also consider applying for State and federal funding specifically
targeted for the development of housing affordable to extremely low-income households, such as
CDBG, HOME, Local Housing Trust Fund program and Proposition 1-C funds to the extent
possible. The City shall continue to consider incentives, such as increased densities,
modifications to development standards, priority processing and fee deferrals as part of the
financing package for projects which include extremely low income units.
Responsible Agency: Housing Authority
Schedule: As projects are proposed
Policy 5
The City shall strive to provide shelter for the homeless and persons with disabilities.
Program 5.A
The City shall continue to work with CVAG on a regional solution for homelessness, including
the Multi -Service Center in North Palm Springs, and the beds and services it will provide. (See
discussion on page 28 regarding CVAG's program)
Responsible Agency: City Manager's Office, City Council
Schedule: Annually in the General Fund Budget
Program 5.B
The City will continue to coordinate with the Inland Regional Center, Desert Arc and other
appropriate agencies and organizations that serve the developmentally and physically disabled
population. The City will continue to encourage developers to reserve a portion of affordable
housing projects for the disabled, including those with developmental disabilities. The City will
support funding applications for such projects, and will consider fee waivers and reductions
when these projects are proposed. Housing Authority properties are one of the vehicles available
to encourage rental to developmentally disabled individuals.
Responsible Agency: Planning Department, City Council
Schedule: As projects are proposed
Housing Element
III-55
TN/City of Palm Desert
General Plan/Housing Element
Program 5.0
The City shall encourage local organizations, such as the Coachella Valley Rescue Mission,
Martha's Village and Catholic Charities, to apply to the City for the award of CDBG funds for
homeless services.
Responsible Agency: City Manager's Office
Schedule: Annually with CDBG funding cycle
Policy 6
The City shall continue to utilize restrictions, applicant screenings, and other appropriate
mechanisms established as conditions of approval in order to preserve affordable for sale
housing units for the long term.
Program 6.A
The City shall keep in regular contact with the Riverside County Housing Authority to ensure
that Section 8 housing assistance within the City is actively pursued. At least 30 households
should be assisted every year.
Responsible Agency: City
Schedule: Annually with annual compliance plan review
Program 6.B
The City shall continue to work with affordable housing organizations to preserve the
affordability of the Regent Palm Desert, Shadow Hills Estates and Cantera Phase 1 , which will
be at risk of losing their affordability restrictions during the planning period. The City will
coordinate with private development and management companies to promote the preservation of
these units; and may cooperate through state and federal program funding for third party
ownership, and other means to assure the long term affordability of the project.
Responsible Agency: City
Schedule: Annually as the projects' affordability restrictions are at risk
Policy 8
The City Council shall consider, as an additional incentive, the reduction, subsidizing or
deferring of development fees to facilitate the development of affordable housing.
Policy 9
The City shall continue to address the needs of the senior population in development of housing.
Program 9.A
The City shall maintain the Senior Housing Overlay District and the Second Unit Housing
standards in the Zoning Ordinance.
Responsible Agency: Community Development Department
Schedule: Annually review with state General Plan report
Program 9.B
The City shall continue to encourage the development of assisted living facilities for seniors.
Responsible Agency: Community Development Department
Schedule: As projects are proposed
Housing Element
111-56
TN/City of Palm Desert
General Plan/Housing Element
Policy 10
• The City shall implement the State's density bonus law.
Policy 11
Promote the jobs/housing balance through the development of housing with convenient access to
commercial land uses, schools, available public transport and employment centers.
Policy 12
Encourage energy conservation through the implementation of new technologies, passive solar
site planning and enforcement of building codes. Please also see the Energy and Mineral
Resources Element.
Program 13.A
The City shall maintain an Energy Conservation Ordinance which mandates conservation in new
construction beyond the requirements of the California Building Code.
Responsible Agency: Planning Department
Schedule: Annual review with state General Plan report
Program 13.B
The City shall encourage Green Building techniques, recycling in demolition, and the use of
recycled, repurposed and reused materials in all new affordable housing projects to the greatest
extent possible.
Responsible Agency: Planning Department, Building Department, Public Works Department
Schedule: As projects are proposed
Housing Element
111-57
TN/City of Palm Desert
General Plan/Housing Element
Appendix A
Land Inventory Aerials
Housing Element
111-58
TNICity of Palm Desert
General Plan/Housing Element
'!
IL
Old 1
lhlhpl�a3ll�iial
11IuIuuII UH IIIIIF o n
Housing Element
II1-59
TN/City of Palm Desert
General Plan/Housing Element
Appendix B
Residential Development Fees
(Excerpted from the Rose Institute Study, 2008)
Housing Element
111-60
Palm Desert
Building Valuation
House - includes A!C (so.ft.)
Garage (soil)
House
Garage
Total Valuation
Building Permit
)Building Permit Plan Check
Buildirlf Permit Fee
Mechanical
I Electrical
Plumbing
SMIP
1Microfrlm Fees
I1ob Valuation Fee
Total
Brunet Fees
School District Fee
arks and Recreations Fee "
lArt in Public Places Fee
/Construction Tax
Sanitation �1 city charge (Sewer)
Water Meter Connection
I ater System Backup Foc. Charge
I Draiwe Fee
ISignalizatian Fee
Total
vtr►ronmert
roaental Assessments
County Filing Fee
Total
En,nesriag
IFins1 Mac
1Gradina Permit Fees
/Grading Plan Check
Streetlmorovements Insoecion
Street Improvements Pion Check
Total
TN/City of Palm Desert
General Plan/Housing Element
2007 Data
2500 x 575.00
400 x S25.00
l 60-unit subdivision 1 35-unit subdivision
Total Total
Per Unit Subdivision Per
UnitSubdivision
IS1.0ISl115+ i61 S0,000f60100.0510,500.001 15,00.00
S197,500.00 S11,850,0011.00 $19700.00 S6,912,500.00
2005 Data
2500 it S75.05
400 x $25.00
35-unit subdivision 1
Total
Per Unit Subdivision
S 187 625.00 56 566.875.00
S10 .001 S350000.00�
S197,625.00 S6,916,875.00
31883.0 S112.980.00 31883.00 $65905.00 S585.00
$3.10 54.S 189.240.0 53.10 54.S 110.190.00 S971.00
$0.0 . S0.0 S0.0 S0.0 S67.0
50.0 $0.0 50.01 50.0 S119.50
$0.00 $0.0 50.001 $0.0 S85.50
$19.75 S1.185.0 $19.75 $691.25 S 19.76
$60.001 $3 60.0 360.0 14I0.00 S60.01
549.501 0.00 549.50 1.732.50 �Q 501
55,166.25 53 9,975.00 55,166.25 3180,010.75 51,9557.26
$20 475.00
$3385.00
$2,'345.0
$4.182.50
$2,992.50
91.60
$2 10.0
S 1.'732.50
568,504.10
58 425.0 5505 500.00 8 425.0 $294,875.0 55 60.0 5156 00.00
$1 6 l ,44 S110446.40 t.a37.44 $64,310.40 79431 827780.85
30.00
S493,75 $29\$9625.0 05.00 S $493.75 S11.627.50 j7.281.25 .50 $1444.06 038.00 fS17 392. 0
5125.0 S750.0 S125.0 54.375.00 $1.00.0 3'35�.00
53 517.00 S211 620.00 53517.0 S 123095.00 8
3,517.0 S173.095.00
1S370.00 $220.0 h70.0Sy950.0 S370.0 $I2,0950.0
$630.01 $157/00.0 S2630,0 SY050.0 S2,630.0 S9Z\50.0
166.671 $IO \00.001 �28s.71 fl6.7000.0o 51'142.86 Soo 000.00
550.00S3,60.001 $50.001 5150.00 50.00 51\750.00
SI9,226.61 S1,153,696.40
519,361.40 S477,649.15 S18,636.23 S652,267.95
51.07I $
S64.01 S1.831 $
S64.01 8$1.831 SI,100.001
564. 01
53.57 5214.00 56,11 S214.00 533.26 51,164.00
•
582.97 54 978.0 593.66 53 8.0 5(4.29 $500.0
53.75 f225.00 56.43 5225.00 55.69 S 199.00
593.43 55,606.0 S 104.46 f3\b56.0 $74.74 52.616.0
5174.00 $10.440.0 S 174.00 56.090.0 S j60.0 35.60.0
S 103.00 56,180.0 S 103.0 53!,605.0 $0.0 52.80.0
S457.15 527,429.0 5461.54 $(6,854.0i 5334.71 $11.715.00
Housing Element
III-61
Planning
ITentatjye Tract Mao
'Zone Change (Amendment)
!General Plan Amendment
Architectural Review
Total
Fees Total
Total Fees Per Unit
TN/City of Palm Desert
General Plan/Housing Element
2007 Data
60-unit subdivision (
Total
Per Unit Subdivision
S 15.831 $950.001
(VA - Has Been Combined with
S20.501 S1.230.001
52.801 S 168.00
539.13 ' S2,348.00
S1,493,562.40
S24,892.71
3S-unit subdivision 1
Total
Per Unit Subdivision
S27.141 S950.00
Genera! Plan :Intendment
$35.14I S1 230.00.
54.80 SI168.00
S67.09 32,348.00
S877,883.90
S25,082.40
2005 Data
35-unit subdivision
Total
Per Unit Subdivision
S 17.26
S9.29
S45.31
S2.94
S74.80
S604.00
S325.00
Si 586.00
1103.00
52,618.00
S736,269.05
S21,036.26
'There are several drainage fees depending on location of development. The S 1.000 per acre fee used in 2007 is for the area between
Sand Ridge and 1-10. (This is different from the S4,000 per acre fee used in 2005.)
Housing Element
111-62
TN/City of Palm Desert
General Plan/Housing Element
Housing Element
III-63
CITYOF PRIM DESERT.
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
info @ cityofpalmdes ert. org
NOTICE OF STUDY SESSION
OF THE
PALM DESERT CITY COUNCIL
NOTICE IS HEREBY GIVEN that the Palm Desert City Council will convene for a
Study Session Thursday, October 11, 2018, at 2:00 p.m. in the
Administrative Conference Room of the Palm Desert Civic Center. 73510 Fred Waring.
Drive. Palm Desert. California 92260. Said Study Session will be for the purpose of
discussing development that includes Affordable Housing in the City.
RA HELLE D. KLASSEN ?CITY CLER�
CITY OF PALM DESERT, CALIFORNIA
October 4, 2018
NO ACTION WILL BE TAKEN AT THE STUDY SESSION.
PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY.
0 PRINTED ON RECYCEED PAPER
CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
INTEROFFICE MEMORANDUM
To: Honorable Mayor and Members of the City Council
From: Ryan Stendell, Director of Community Development
Date: October 11, 2018
Subject: Background Information: Affordable Housing Study Session 10/11/2018
In preparation for the study session of October 11, 2018, Housing Division staff in consultation
with legal counsel (Richards, Watson and Gershon) have prepared the following summary
related to a past Settlement Agreement that is often referred to as the "Stipulation." In addition
to the below summary, staff has also provided two previously produced nexus studies which
attempted to Zink housing affordability to the creation of market rate housing units. The
attached studies were completed in 2015, and could be useful for the upcoming study
session.
In 1987, following the adoption of the Redevelopment Plan for Project Area No. 2, the
Western Center on Law and Poverty and California Rural Legal Assistance filed a lawsuit
against the Palm Desert Redevelopment Agency in an effort to stop the formation of the
Project Area. The lawsuit was settled in May of 1991, and the settlement was incorporated
into a Stipulation for Entry of Judgment. In June of 1997 and again in September of 2002, the
Court entered amendments to the Stipulation.
Under the terms of the Stipulation, as amended, the Agency generally agreed to use its 20
percent set aside funds, and other tax increment revenues if necessary, to develop,
rehabilitate, or otherwise financially assist a certain number of affordable housing units and
to meet certain affordable housing needs of the City as determined in the Regional Housing
Needs Assessment prepared periodically by the Southern California Association of
Governments.
Following the dissolution of the Agency, the State Department of Finance ("DOF") declined
to treat the Stipulation as an enforceable obligation on the Regional Obligation Payment
Schedule ("ROPS"). As the Western Center expected us to do so, the Successor Agency filed
a lawsuit against the DOF and the Riverside County Auditor -Controller, seeking declaratory
relief that the Stipulation constitutes an enforceable obligation.
Several other lawsuits had also been filed which have similar facts regarding housing -related
judgments as enforceable obligations and which the Western Center believed would result in
victories for housing advocates. The Western Center believed the outcome of those cases
would provide support for a court determination that the Stipulation is an enforceable
October 11, 2018 - Memorandum
Affordable Housing
Page 2 of 2
obligation. By June of 2015, however, no cases had come down from the Court of Appeal
with the results the Western Center anticipated. Because we had reached a point in our
lawsuit against the DOF where the Successor Agency would begin to incur significant
expenses, we dismissed our lawsuit against the DOF without prejudice. The Western Center
was advised of this.
There is still one case pending in the Court of Appeal, which the Western Center previously
advised would be relevant if decided favorably to the Western Center's position. That case,
entitled Shayne v. DOF is still pending. It is fully briefed as of January 23, 2017, and is still
awaiting scheduling of oral argument. We expect that will occur in the next six to eight months,
with a decision following 90 days after oral argument.
RYAN STENDELL
DIRECTOR OF COMMUNITY
\\srv-fi12k3\groups\Planning'Monica OReilly\Word\Stendelll\2018Wffordable Housing Study Session.docx
The Ecenoi icsiof Laud jUse
Economic&;Planning Systems, Inc.
One Kaiser Plaza,:Suite 1410
:Oakland, CA 94612
510.8.41 9190 i'e!
510 740 2080 fax
Oakland
Sacramento
Denver
Los Angeles
Report
Nexus -Based Affordable Housing
Fee Analysis. for For -Sale Housing
Prepared for:
City of Palm Desert
Prepared :by:
Economic & Planning. Systems, Inc.
February 6, 2015
EPS # 141134
www.epsys.com-
Table of Contents
EXECUTIVE SUMMARY 1
1. AFFORDABILITY GAP ANALYSIS 7
Product Type 7
Development Cost Assumptions 9
Revenue Assumptions 9
Affordability Gap Results 10
2. DEMAND -BASED NEXUS FEE CALCULATION 11
Market -Rate Household Income Levels 11
Household Expenditures and Job Creation by Income Level 11
Demand for Public -Sector Workers 15
Combined Demand for Income -Qualified Workers 16
Fee Calculation 16
APPENDIX A: Household Expenditures and Employment Generation
APPENDIX B: Income Levels for Worker Households
List of Figures and Tables
Figure 1 Illustration of Nexus -Based Housing Fee Methodology 2
Table 1 Summary of Housing Impact Fees or Unit Equivalents per Market -Rate Unit 6
Table 2 Financing Gap Analysis -- Rental Product Type 8
Table 3 Income Required to Purchase Homes at Various Prices 12
Table 4 HUD Income Limits 17
Table 5 Maximum Impact Fee Calculations -- $200,000 Unit 18
Table 6 Maximum Impact Fee Calculations -- $400,000 Unit 19
Table 7 Maximum Impact Fee Calculations -- $600,000 Unit 20
Table 8 Maximum Impact Fee Calculations -- $800,000 Unit 21
Table 9 Maximum Impact Fee Calculations -- $1,000,000 Unit 22
Table 10 Maximum Impact Fee Calculations -- $1,200,000 Unit 23
EXECUTIVE SUMMARY
Economic & Planning Systems, Inc. (EPS) was retained by the City of Palm Desert (City) to
conduct a nexus study analyzing the impact that development of market -rate for -sale housing
has on the demand for below -market -rate housing and, based on the results, to determine the
defensible nexus -based fee that could be charged to market -rate development.
The technical approach used herein quantifies the impacts that the introduction of market -rate
homes have on the local economy and the demand for additional affordable housing. As new
households are added to the community, local employment also will grow to provide the goods
and services required by the new households. To the extent that these new jobs do not pay
adequate wages for the employees to afford market -rate housing in the community, the new
households' spending is creating a need for affordable housing. A nexus -based affordable
housing fee is therefore based on the impact of the new market -rate homes on the demand for
affordable housing. The fee calculated in this study represents the maximum fee that may be
charged to new market -rate housing units to mitigate their impacts on the affordable housing
supply. Such fees are then used by the City to subsidize the production of new affordable units
for lower -income households not accommodated by market -rate projects.
Calculating the impact of market -rate development in the City on affordable housing needs, and
the fees needed to mitigate those impacts, involves three main analytical steps:
• Step #1. Estimate the typical subsidy required to construct units affordable at various
income levels (the "affordability gap"). The analysis focuses on very -low, low-, and median -
income households.
• Step #2. Determine the market -rate households' demand for goods and services, the jobs
created by that demand, and the affordable housing needs of workers in those jobs.
• Step #3. Combine the affordability gap with the affordable housing demand projections to
compute the maximum supportable nexus -based affordable housing fees per market -rate
unit.
These technical steps are illustrated in Figure 1 and detailed in the body of this Report and the
attached Technical Appendices. The findings regarding each of these steps are presented below.
Economic & Planning Systems, Inc. 1
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Figure 1
Illustration of Nexus -Based Housing Fee Methodology
Step #1
Affordability Gap Analysis
(Subsidy Required to Construct
Affordable Units)
Affordable
Unit Value
by Income
minus
Development
Costs
equals
Affordability
Gap
If positive
Subsidy
Required
No Subsidy
Required
Required Household Total Workers to Total Demand for
Step #2 Market Rate Household Provide Goods and.
"' Affordable Housing Demand Home Price - Income —► Expenditures —� Services by —÷ Affordable Units for
(Generated by. Market Rate Housing) Level by Category Expenditure Category Workers
Step #3
Compute Impact Fee
per Market Rate Unit
Demand for Maximum
Affordability multiplied Affordable Units for equals Supportable Nexus -
Gap - by Workers Based Housing Fee
(Subsidy Required) (per market rate unit) (per market rate unit)
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Nexus -Based Affordable Housing Fee Analysis for For -Sale Housing
02/06/15
1. The costs to construct affordable housing units affordable to many households
exceed those units' values based on the rents or prices that the households can
afford to pay. The subsidy required to construct affordable housing units in Palm
Desert ranges from roughly $58,000 for a Median Income household to $164,000
for a Very Low Income (VLI) household. Moderate Income households do not
appear to require subsidies, as affordable prices for such households appear able to
support the costs of construction.
An "affordability gap analysis" evaluates whether or not the costs to construct affordable
units exceed the values of units that are affordable to lower- and moderate -income
households. For each affordable housing income level (Very Low Income [VLI], Low Income
[LI], Median Income, and Moderate Income) this analysis estimates the subsidy required to
construct affordable housing units.
The affordability gap analysis assumes that the average affordable unit for all income levels
will be a 2-bedroom unit in a multifamily development. The estimated costs to construct the
prototypical affordable unit are based on, published data sources (RS Means Cost Estimator)
'indexed to Coachella Valley labor and materials costs, and have been vetted with developers
active in Coachella Valley. The costs of land acquisition are included in these development
cost calculations, and have been based on recent appraisals for residential land in Palm
Desert. For units that are eligible for non-competitive Low Income Housing Tax Credits
(4 percent tax credits), the value of those tax credits is deducted from the development
costs.
A household's ability to pay is estimated based on standard percentages of income available
for housing costs at each household income level. Income available for housing costs is then
converted into a monthly affordable rent and a capitalized unit value or an affordable
mortgage payment and supportable home price. This unit value is then compared to the
costs of development to determine the subsidy, if any, required to make the unit affordable
to each income level.
2. The demand for affordable housing generated by the expenditures of new
households in Palm Desert increases along with the market -rate home price (and
related buyer income). For example, a home that sells for $200,000 is estimated to
create demand for 0.1 affordable housing units requiring development subsidy,
while a unit that sells for $1.0 million creates demand for 0.356 affordable units.
A justified nexus fee is based on the total demand for affordable housing units generated by
construction of market -rate units. The link (or nexus) between market -rate housing and
increased demand for affordable housing is that residents of market -rate units demand goods
and services that rely on many wage earners (for example, retail sales clerks) who typically
cannot afford market -rate housing and thus require affordable housing.
Because more expensive housing units require buyers to have higher incomes, and higher
income households create more jobs through their spending, the nexus impacts and thus the
justified fees for for -sale units vary according to the price range of the market -rate units.
Nexus impacts and the justified fees for market -rate homes, therefore, vary based on home
price.
Economic & Planning Systems, Inc.
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Nexus -Based Affordable Housing Fee Analysis for For -Sale Housing
02/06/15
This analysis evaluates the demand for affordable housing generated by a range of home
prices. For each unit price, the demand -based nexus fee calculation involves the following
steps:
A. Market -Rate Household Income Levels. The required income levels of households
occupying new market -rate housing are derived based on the home price, assuming
standard housing cost expenses as a proportion of overall household income. For
example, a typical household buying a recently constructed market -rate unit for around
$400,000 would have an annual income of roughly $93,000, if they spent 30 percent of
their income on housing costs (mortgage, taxes, insurance, and HOA expenses).,
B. Household Expenditures. Based on the household income computed in Step A,
Consumer Expenditure Survey data was used to evaluate the spending patterns of the
household. This analysis provides an estimate of how much the household spends on
specific categories of expenditures, such as "Food at Home." As the households' income
increases along with the price of the market -rate units, the total spending on goods and
services also increases. The Consumer Expenditure Survey also indicates that these
relationships are not linear (e.g., a household with twice the income does not necessarily
spend twice as much on food).
C. Job Creation and Worker Households. Having estimated the households' spending on
various items, that spending is then converted into an estimation of jobs created. For
each expenditure category, data regarding average worker wages and the ratio between
gross business receipts and wages were used to translate these household expenditures
into the total number of private -sector workers. For selected public -sector jobs that
typically grow in proportion to the local population size (e.g., teachers), the demand for
new workers was estimated by relating current levels of employment in such categories
to the current population and applying this ratio to future development. Because each
new worker does not represent an independent household (Palm Desert has an average
of 1.52-workers per working household), the total number of new households created is
somewhat less than the number of new jobs created. EPS has further adjusted the
household formation rates to reflect the expectation that a certain proportion of workers
will not form their own households, particularly those of younger ages.1
D. Worker Households by Income Category. Each worker household generated is
assigned to an income category —Very Low Income (VLI), Low Income (LI), Median,
Moderate, and Above Moderate —based on its estimated gross wages. This provides the
total number of households generated at each income level by construction of market -
rate units at various price points. The results indicate that residents of lower -priced units
generate fewer worker households requiring affordable housing than do residents of
higher -priced units.
1 BLS data indicates that 12.5 percent of retail/restaurant workers are age 16-19, but an average of
only 1.9 percent of workers in other industries. EPS has assumed that such young workers do not
form their own households.
Economic & Planning Systems, Inc. 4
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Nexus -Based Affordable Housing Fee Analysis for For -Sale Housing
02/06/15
These steps of the nexus -based fee calculation provide the total number of income -qualified
workers required to meet the needs for goods and services generated by market -rate
housing. The number of workers servicing market -rate housing (at each unit size) is then
converted to total income qualified households requiring affordable housing subsidy, and
each such household is assumed to require one housing,unit.
3. This analysis calculates the fees that could be charged to fully mitigate the impact
that new market -rate housing has on Palm Desert's affordable housing demand at
various representative unit sizes. These fees could range from roughly $13,400 for
units sold at $200,000 to $58,400 for units sold at $1.2 million.
The nexus fee is calculated by applying the number of affordable units needed by income
qualified households to the affordability gap for each housing income category. This
calculation is made for several different market -rate home prices. Table 1 summarizes the
maximum nexus -based fees calculated for representative home prices. The City may also
consider whether to allow developers to provide affordable units within their projects, rather
than paying the nexus -based fee. Table 1 illustrates the proportions of affordable units that
correspond to the fee calculation and demands created by the market -rate units. For
instance, a project offering new homes in the $400,000 range would effectively mitigate the
demand being created by the market -rate units if it provided 0.17 affordable units (very -low,
low, and median income) for each market -rate unit. Please note that these maximum fees
are based on the nexus relationship of affordable housing demand created by new market -
rate units; EPS recommends that the City consider the feasibility impact of imposing fees
while setting any fee on new housing.
Economic & Planning Systems, Inc. 5
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Table 1
Summary of Housing Impact Fees or Unit Equivalents per Market -Rate Unit
Palm Desert Housing Impact Fee, EPS #141134
Market -Rate Maximum Percent Affordable Units Generated/100 Market -Rate Units
Unit Price Impact Fee of Price Total Low (50%) Low (60%) Low (80%) Med (100%)
$200,000 $13,406 6.7% 10.0 4.8 1.2 2.7 1.3
$400,000 $22,950 5.7% 17.0 8.3 2.0 4.6 2.1
$600,000 $33,182 5.5% 24.4 12.3 2.5 6.8 2.8
$800,000 $39,551 4.9% 28.8 15.0 2.7 8.2 2.9
$1,000,000 $48,945 4.9% 35.6 18.6 3.3 10.2 3.6
$1,200,000 $58,390 4.9% 42.5 22.2 3.9 12.2 4.3
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015
PA14100os1141134Pa1mDesertWode111411341orse/emode/020515,dsx
1. AFFORDABILITY GAP ANALYSIS
For any nexus -based affordable housing fee calculation, it is necessary to estimate the subsidy
required to construct affordable housing units. Table 2 shows the subsidy needed to produce
multifamily housing that is affordable to very low-, low-, median- and moderate -income
households.
Product Type
This analysis assumes that new lower -income worker households would be housed in multifamily
developments in Palm Desert. Developable residential land in Palm Desert is assumed to be
approximately $200,000 per acre, based on an appraisal provided to the City by Lidgard and
Associates. EPS has assumed that these projects will have an average density of 20 units per
acre, and be built in wood -frame buildings of two to three stories with surface parking.
In order to determine the average household size of future affordable housing units, EPS used
two estimates from the Census Bureau. The American Community Survey indicates that the
average household size in Palm Desert is 2.05 people while the average family size is 2.75
people. The household size figure is significantly skewed by the high population of retirement -
age people in Palm Desert, where 46.1 percent of all households have one or more members
over age 65 (vs. only 24.9 percent statewide). The average family size is considered more
representative of worker households in Palm Desert, so the average household size for future
workers is assumed to round up to three people and EPS uses this assumption to determine the
applicable income limits for the new units.
California State law (California Health and Safety Code Section 50052.5) assumes that a 2-
bedroom unit is occupied by a 3-person household, and this assumption is used in this analysis.
An affordable 2-bedroom unit in Palm Desert is assumed to have a gross size of about 1,200
square feet (accounting for shared lobbies, hallways, etc.) and a net size of 1,000 square feet —
both somewhat smaller than recently constructed market rate units, but similar to recent
affordable housing developments.
This analysis assumes that all new affordable housing would be rental units, rather than for -sale
units. This assumption reflects the fact that many households at lower incomes will not have
adequate wealth reserves for down payments on homeownership units, and may have further
difficulty absorbing the ongoing costs of homeownership (taxes, repairs, etc.) that they can
effectively avoid by renting their homes rather than buying.
Economic & Planning Systems, Inc. 7
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Table 2
Financing Gap Analysis - Rental Product Type
Palm Desert Housing Impact Fee, EPS #141134
Item
Development Program Assumptions
2 Stories Multifamily With Surface Parking
Very Low Low Low Median Moderate
Income Income Income Income Income
(50% AMI) (60% AMI) (80% AMI) (100% AMI) (120% AMI)
Density/Acre 20 20 20 20 20
Average Gross Unit Size 1,200 1,200 1,200 1,200 1,200
Average Net Unit Size 1,000 1,000 1,000 1,000 1,000
Average Number of Bedrooms 2 2 2 2 2
Average Number of Persons per Household ,3 3 3 3 3
Parking Spaces/Unit 2.0 2.0 2.0 2.0 2.0
Cost Assumptions [1]
Land/Acre [2] $200,000 $200,000 $200,000 $200,000 $200,000
Land/Unit $10,000 $10,000 $10,000 $10,000 $10,000
Direct Construction Costs/Gross SF [3] $150 $150 $115 $115 $115
Direct Construction Costs/Unit $180,000 $180,000 $138,000 $138,000 $138,000
Parking Construction Costs/Space $2,500 $2,500 $2,500 $2,500 $2,500
Parking Construction Costs/Unit $5,000 $5,000 $5,000 $5,000 $5,000
Subtotal, Direct Costs/Unit $185,000 $185,000 $143,000 $143,000 $143,000
Indirect Costs as a % of Direct Costs [4] 60% 60% 35% 35% 35%
Indirect Costs/Unit $111,000 $111,000 $50,050 $50,050 $50,050
Total Cost/Unit $306,000 $306,000 $203,050 $203,050 $203,050
less Value of 4% Tax Credits [5]-$118,400 -$118,400 $0 $0 $0
Net Cost/Unit $187,600 $187,600 $203,050 $203,050 $203,050
Maximum Supported Unit Value
Household Income [6] $27,350 $32,820 $43,700 $54,700 $65,640
Income Available for Housing Costs/Year [7] $8,205 $9,846 $13,110 $16,410 $19,692
less Utility Allowance [8] $2,400 $2,400 $2,400 $2,400 $2,400
Remaining Income Available for Rent $5,805 $7,446 $10,710 $14,010 $17,292
Operating Expenses per Unit/Year [9] $4,500 $4,500 $6,031 $6,031 $6,031
Net Operating lncome $1,305 $2,946 $4,680 $7,980 $11,262
Capitalization Rate [10] 5.5% 5.5% 5.5% 5.5% 5.5%
Total Supportable Unit Value
$23,727 $53,564 $85,082 $145,082 $204,755
Financing Gap $163,873 $134,036 $117,968 $57,968 $0
[1] Costs for 50-60% AMI units assume projects are built by non-profit builders, and require prevailing wage. For units at 80-120% of AMI, EPS has assumed lower development costs
consistent with for -profit builders' cost bases, and do not assume prevailing wage.
[2] The land costs represent an expected price for developable residential land, per a December 2014 appraisal provided to the City of Palm Desert.
[3] Includes costs for labor and materials.
[4] Includes costs for architecture and engineering; entitlement and fees; project management, marketing, commissions, and general administration; financing and charges; insurance; and
contingency. Tax credit projects (at or below 60% AMI) are assumed to include developer fee at 14% of eligible basis.
[5] 4% Tax Credits are assumed to be received for units at 60% AMI or below. Value of tax credits is estimated at 40% of eligible basis, which is all direct and indirect costs but excludes land
[6] Based on HCD 2014 income limits for Riverside -San Bernardino -Ontario MSA.
[7] Assumes housing costs to be 30% of gross household income.
[8] Based on Housing Authority of Riverside County Allowances for Tenant Furnished Utilities and other Services assuming an apartment using natural gas for heating and cooking.
[9] Operating expenses include costs of tenants' utilities. Units for households above 60% AMI are assumed to be built as for -profit projects and thus subject to property tax.
[10] Capitalization rate estimated by EPS based on recent apartment industry investment standards.
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Nexus -Based Affordable Housing Fee Analysis for For -Sale Housing
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Development Cost Assumptions
Affordable housing development costs include land costs, direct costs (e.g. labor and materials),
indirect or "soft" costs (e.g., architecture, entitlement, marketing, etc.), and developer profit.
For rental projects, operating costs also must be incorporated into the analysis. Data from
recent Palm Desert development and recent land transactions have been combined with EPS's
information from local housing developers and published data sources to estimate development
cost assumptions for a prototypical project in Palm Desert. These cost assumptions are shown
on Table 2.
Projects offering units affordable to households at or below 60 percent of Area Median Income
(AMI) are typically eligible for "4%" Low Income Housing Tax Credits, which yield equity equal to
roughly 40 percent of the "eligible basis" of the development (all project costs excluding land
acquisition). Such projects are subject to prevailing wage requirements, however, which
increase their direct costs substantially. Also, the developer's fee for such projects is included as
an indirect cost, and can represent up to 14 percent of the eligible basis. These added costs are
more than offset by the value of the tax credit, however, so the net cost of development for such
units is estimated to be slightly less than the cost of developing units for households at 80 to 120
percent of AMI.
Revenue Assumptions
To calculate the values of the affordable units, assumptions must be made regarding the
applicable income level (moderate, median, LI, and VLI) and the percentage of income spent on
housing costs. In addition, translating these assumptions into unit prices and values requires
estimates of operating expenses, capital reserves, and capitalization rates. The following
assumptions were used in these calculations:
Income Levels —The maximum allowable incomes used in each affordable housing income
category are consistent with those set forth by the federal government (U.S. Department of
Housing and Urban Development [HUD]): VLI = 50 percent of Area Median Income (AMI), LI
60% = 60 percent of AMI, LI 80% = 80 percent of AMI, Median Income = 100 percent of
AMI, and Moderate Income = 120 percent of AMI.
• Percentage of Gross Household Income Available for Housing Costs—HCD standards on
overpaying for rent indicate that households earning Tess than 80 percent of AMI should pay
no more than 30 percent of their gross income on housing costs. For this analysis, EPS has
assumed that all income qualified renter households shall spend 30 percent of their gross
income on housing costs, including rent and utilities.
• Other Costs Included for Rental Units —In addition to rent payments, the analysis assumes
$200 per month in utility costs based on the Riverside County Housing Authority utility
allowance table. This amount is subtracted from the total available housing costs (30
percent of household income) to determine the net amount available for rent payments.
• Operating Costs for Rental Units —The analysis assumes that apartment operators incur
annual costs of $4,500 per unit for VLI and LI 60% units and about $6,000 for LI 80%,
Median, and Moderate units. EPS has assumed the LI 80%, Median, and Moderate income
units would be built by for -profit builders and subject to property taxes.
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Nexus -Based Affordable Housing Fee Analysis for For -Sale Housing
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Affordability Gap Results
Table 2 shows the subsidies for construction of for -rent apartments for VLI through moderate -
income households. The affordability gap ranges from $0 for moderate -income households (i.e.,
moderate -income households can afford home prices adequate to cover the costs of
construction) to roughly $164,000 for VLI households. The affordability gap for VLI households
is much higher because these households have significantly Tess income available for housing
costs, while construction costs remain essentially the same.
The affordability gaps by income level then were used to calculate the justified nexus-basedfees
by multiplying this required subsidy by the number of units required to house workers providing
goods and services to new market -rate housing development. This methodology is discussed in
more detail in the following chapter.
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2. DEMAND -BASED NEXUS FEE CALCULATION
The maximum supportable nexus fees are based on both the affordability gap, calculated in the
previous chapter, and the estimated impact that new market -rate units have on the need for
affordable units, as reflected in the number of income -qualified local workers required to support
the residents of market -rate units and the total subsidy required to construct housing for those
workers. This approach is based on the following logic: (a) residents of market -rate housing
have disposable incomes and require a variety of goods and services (including private sector
goods and services and government services); (b) the provision of those goods and services will
require some workers who make moderate or lower incomes and cannot afford market -rate
housing; and (c) fees charged to market -rate projects can mitigate the impact of those projects
on the increased need for affordable housing.
Market -Rate Household Income Levels
Households with larger incomes typically spend more on goods and services, therefore creating
additional lower income jobs, which in turn generate a greater demand for affordable housing.
To assess the impact that market -rate homes have on the need for affordable housing, EPS
determined the .minimum income required to purchase a newly constructed home at various
prices, as shown in Table 3. These calculations are predicated on the assumption that a
household will spend 30 percent of their income on housing costs (mortgage principal and
interest, taxes, insurance, and homeowner association dues). As shown, required household
incomes range from approximately $50,000 for a $200,000 unit to roughly $265,000 for a $1.2
million home.
Household Expenditures and Job Creation by Income
Level
Having established the income requirements for renting apartments of various sizes, the fee
calculation then requires an analysis of the household spending patterns at those required
income levels. Consistent with nexus fee calculations and impact analysis for schools, parks,
roads, etc., this analysis also assumes that all households renting new market -rate units in Palm
Desert are "net new" households to the City. To assume otherwise —for instance, that only those
buyers or renters of new housing units relocating from outside Palm Desert should be counted in
the impact analysis —would require assuming that the homes left by those households
Economic & Planning Systems, Inc. 11
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Table 3
Income Required to Purchase Homes at Various Prices
Palm Desert Housing Impact Fee, EPS #141134
Annual Annual Annual Total Required
Assumed Down Beginning Mortgage Taxes HOA + Annual Household
Base Payment at Mortgage Payment at 1.25% Insurance Housing Income
Price 20% Principal [1] [2] Fees [3] Costs [4]
$200,000 $40,000 $160,000 $10,408 $2,500 $2,184 $15,092 $50,300
$400,000 $80,000 $320,000 $20,816 $5,000 $2,184 $28,000 $93,300
$600,000 $120,000_ $480,000 $31,225 $7,500 $2,184 $40,909 $136,400
$800,000 $160,000 $640,000 $41,633 $10,000 $2,184 $53,817 $179,400
$1,000,000 $200,000 $800,000 $52,041 $12,500 $2,184 $66,725 $222,400
$1,200,000 $240,000 $960,000 $62,449 $15,000 $2,184 $79,633 $265,400
[1] Assumes 5.0% interest for 30 years, reflecting higher than current rates but well below historical averages.
[2] Tax rate allows for some special assessments above 1.00% basic tax rate.
N [3] A Redfin.com survey of Palm Desert homes for sale on January 19, 2015 indicates an average HOA fee of $182/month for units listed at $550,000 or less.
Some of these projects may include insurance costs in the HOA fees, while others may not. To be conservative, EPS has assumed that the average HOA fee
does include insurance.
[4] Assumes households spend 30% of total household income on total annual housing costs.
Source: Economic & Planning Systems, Inc.
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relocating within Palm Desert would be demolished or left vacant in perpetuity. This would only
be the case were the City experiencing a significant loss of population and housing inventory, as
has occurred, for instance, in Detroit. Palm Desert has not experienced such declines.
The Consumer Expenditure Survey from the United States Bureau of Labor Statistics provides
data for households at a variety of income levels, detailing the amounts that typical households
spend on things like "Food at Home," "Apparel and Services," and "Vehicle Maintenance and
Repairs." Interestingly, household expenditures by category are not uniformly proportional to
household income levels. For example, households earning around $50,000 (adequate to
purchase a new $200,000 home) spend roughly 12.3 percent of their income on food and drink
(at home and eating out), while households earning $222,000 who can afford to buy a new $1.0
million home spend only about 7.0 percent of their income on these items. Because of these and
other differences in proportionate spending, the expenditure profile varies at different income
levels.
The household's typical expenditures were converted to the number of jobs created by their
spending. The first step in this process is to determine how much of an industry's gross receipts
are used to pay wages and employee compensation. EPS relied on data from the Economic
Census,2 which provides employment, gross sales, and payroll data by industry for Riverside
County. In certain instances, Riverside County data was not available for every Economic
Census industry —in those cases, EPS relied on statewide Economic Census data for that
industry.
To link the Economic Census data and the Consumer Expenditure Survey data, EPS made
determinations as to the industries involved with expenditures in various categories. For
example, purchases in the Consumer Expenditure Survey's "Food at Home" category would likely
involve the Economic Census's "Food & Beverage Stores" industry, where gross receipts were
nearly 10 times the employees' wages. By contrast, purchases in the Consumer Expenditure
Survey's "Entertainment Fees and Admissions" category were attributed to the Economic Census'
"Arts, Entertainment, and Recreation" industry, where gross receipts are only about four times
the employees' wages. Where more than one Economic Census category was attributable to a
Consumer Expenditure Survey category, EPS estimated the proportion of expenditures
associated with each Economic Census category.
After determining the amount of the household's expenditures that were used for employee
wages, an estimation of the number of employees those aggregate wages represent is required.
EPS calculated the number of workers supported by that spending using the average wage per
worker (also from the 2007 Economic Census). These wages ranged from a low of roughly
$14,000 per year for workers in the food services industry to a high of roughly $85,000 average
salary for legal services.3
2 Note that the Consumer Expenditure Survey data is based on information current as of 2013 and
data from the Economic Census was published in 2007. Because the data sources were from different
years, EPS converted the 2013 expenditures to 2007 dollars using the Consumer Price Index (CPI) for
the Riverside -San Bernardino -Ontario Statistical Area (MSA) from the Bureau of Labor Statistics.
3 Note that the average salary reported for legal services reflects the full range of workers employed
by that industry sector, including administrative staff and entry-level employees, as well as the
attorneys.
Economic & Planning Systems, Inc. 13
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This methodology recognizes that aarange of occupations and incomes exist in a given industry
sector. For instance, the methodology used to generate Tables A-1 to A-6 in Appendix A •
distinguishes between the typical incomes of workers in different types of retail stores (e.g.,
"food and beverage stores" versus "general merchandise stores"), rather than assuming all retail
sector workers earn the same income. However, the average wage is used for each sub-
category of industry employment and represents a reasonable proxy for the range of incomes in
that group: while some employees will have higher wages and require lower subsidies, others
will have lower incomes and require higher subsidies. Using the average approximates the total
housing subsidy needed by workers in that industry.
To calculate the number of households supported by the expenditures of market -rate housing
units, EPS estimated the employees' household formation rates. Importantly, employees
generated from the increase in housing units do not all form\households; some employees, in the
retail and food services industries in particular, are young workers and do not form households.
Data from the Bureau of Labor Statistics indicates that 12.5 percent of retail/restaurant workers
are age 16-19, but an average of only 1.9 percent of workers in other industries. EPS applied
these discounts to household formation to get a more accurate calculation of households formed
by the employees and the average total incomes of those households.
To get the overall households' income rather than the individual workers', the wages of workers
forming households were multiplied by the average of approximately 1.52 workers per working
household in Palm Desert.4 This assumption implies the workers in a given household will have
roughly equivalent pay per hour. While certainly there will often be some variation in wages per
employee within a household, on average this assumption is reasonable because it implies
comparable levels of education and training among all workers in a household. The average
household incomes then are allocated to various income categories to estimate the number of
affordable housing units demanded in each income category (VLI, LI, Median, and moderate -
income).
4 Workers per working household based on American Community Survey (ACS) Census data current
as of January 2015. The average workers per working household estimate is calculated by taking the
total number of people in the labor force and dividing it by the number of households with earnings.
This methodology seeks to provide a conservative estimate of household formation by excluding
households without workers or earnings (such as those with retired persons).
Economic & Planning Systems, Inc. 14
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Nexus -Based Affordable Housing Fee Analysis for For -Sale Housing
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A simplified example of these calculations follows:
A. Number of Households (prototype project) 1,000
B. Average Household Income (in the project) $75,000
C. Aggregate Household Income (A x B) $75 million
D. Average Income Spent on Retail (Consumer Expenditure Survey) $20,000
E. Aggregate Retail Spending (A x D) - $20 million
F. Retail Gross Receipts: Payroll Ratio (Economic Census) 10:1
G. Estimated Retail Payroll (E _ F) $2 million
H Average Retail Wage (Economic Census) $20,000
I. Estimated Total Retail Jobs (G H) 100
J. Percent Age 20+ (Bureau of. Labor Statistics) 87.5%
K. Total Retail Workers .Forming Households 88
J. Average Workers/Household (Census Data) 1.52
K. Estimated Households Created (I _ J) 58
L. Average Household Income (H x J) $30,400
M. Income Category (HCD Income Standards) LI 60%
In this simplified example, 1,00.0 new market -rate homes sold to households earning $75,000
per year would create demand for 58 housing units for retail workers' households typically
earning less than 60 percent of AMI. Actual calculations and impact distinctions by type of
household expenditure for various home prices are shown in the series of tables presented in
Appendix A.
Demand for Public -Sector Workers
In addition to the jobs created by the spending of the new market -rate households, this analysis
also aims to evaluate the number of public -sector employees generated by the public service
demands of new market -rate households. Rather than a comprehensive computation of public -
sector employment, the analysis aims to be conservative by sampling only certain public -sector
jobs (e.g., teachers and transportation providers) that are expected to grow in proportionate
measure to household growth.
Data from the 2013 Occupational Employment Survey for the Riverside -San Bernardino -Ontario
MSA was used to determine the number of these public -sector employees needed to serve new
market -rate development, and the average annual wage among each selected public -sector job
type. EPS reviewed the data and sampled occupations that were public sector —related, as shown
in Table A-5 in Appendix A.
Based on the ratio of the selected public -sector jobs to the total households in the MSA, EPS
estimates that approximately 62 government jobs or 41 households with a government
employee are required per 1,000 total households. These figures are conservative (i.e., low)
because numerous types of public -sector jobs are not included in this analysis (such as federal
postal workers, County health and human services workers, etc.). Also, please note that EPS
has no basis to distinguish differences in the number of public -sector workers demanded by
households based on different income levels, so the same numbers of public -sector jobs are
assumed to be generated by units of all prices.
Economic & Planning Systems, Inc. 15
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Combined, Demand for Income -Qualified Workers
The total number of income -qualified households required to support the expenditure and public -
sector service needs of new market -rate units were determined based on the affordable housing
income limits from HUD for a 3-person household. Table 4 summarizes the HUD income limits
used to compute the total number of income -qualified households generated by construction of
market -rate units.5 The numbers of income -qualified households required to provide goods and
services to new housing units at various prices are detailed in Appendix B.
The nexus methodology used herein computes the total number of income -qualified households
generated by market -rate units and calculates the impact fee based on the estimated cost to
subsidize the production of units to meet that affordable housing demand. This methodology
does not suggest that all lower income service workers serving City residents reside in the City,
but it does assume that new development should mitigate for the new affordable housing
demand it creates..
Fee Calculation
The affordability gap analysis quantifies the subsidy required to construct affordable housing at
various income levels (VLI, LI, Median, etc.). Analysis of consumer expenditures that rely on
lower wage workers provides an estimate of the total number of income -qualified households
generated by new for -sale units. Then for each category of market -rate units, the nexus -based
fee is calculated by applying the total number of income -qualified households generated to the
affordability gap computed for each affordable household income level. The analysis provides
the maximum supportable nexus -based fees for new housing development in the City of Palm
Desert.
Tables 5 through 10 show the impact fee calculation for different prices of homes. The total
impact fees required for a representative project of 100 units is calculated by multiplying the
number of affordable units required per income level by the cost of subsidizing such housing. All
income -qualified households are assumed to be housed in multifamily units and the subsidies
needed are calculated as the affordability gaps shown in Table 2. The resulting maximum
impact fee for market -rate rental units ranges from approximately $13,400 for homes sold at
$200,000 to roughly $58,400 for homes sold at $1.2 million.
5 To correspond to the available data regarding employee wages, the 2007 Riverside County
affordable housing income limits from HUD and HCD were used to determine the number of income -
qualified households, based on household expenditures, while 2013 income limits were used for
public -sector employment.
Economic & Planning Systems, Inc. 16
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Table 4
HUD Income Limits
Palm Desert Housing Impact Fee, EPS #141134
2007 2013 2014
Percentage of Max Income Threshold Max Income Threshold Max Income Threshold
Affordability Category County Median 3-person household 3-person household 3-person household
Very Low Income (LI) - 50% 31 % - 50% $26,650 $28,700 $27,350
Low Income (LI) - 60% 51 % - 60% $31,980 $34,440 $32,820
Low Income (LI) - 80% 61% - 80% $42,600 $45,900 $43,700
Median Income (Med) 81% - 100% $53,300 $57,400 $54,700
Moderate Income (Mod) 101% - 120% $63,960 $68,880 $65,640
Above Moderate Income (Above Mod) 120%+
*Note: Data for Riverside -San Bernardino -Ontario, CA MSA
Sources: US Department of Housing and Urban Development; California Department of Housing and Community Development; Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015 P:1141000s1141134PalmDesert1Mode11141134forsalemodel020515.xlsx
Table 5
Maximum Impact Fee Calculations -- $200,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
-Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
4.8
1.2
2.7
1.3
10.0
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
co
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total Impact Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$781,605
$161,379
$321,492
$76,165
$1,340, 640
(D=C/100)
$13,406
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Table 6 -
Maximum Impact Fee Calculations -- $400,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
8.3
2.0
4.6
2.1
17.0 -
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total Impact Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$1, 357, 807
$270,207
$544,178
$122.847
$2, 295, 039
(D=C/100)
$22,950
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Table 7
Maximum Impact Fee Calculations -- $600,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%) _
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
12.3
2.5
6.8
2.8
24.4
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total Impact Fee Required
Per 100 Market -Rate Per Market Rate Unit -
Units
(C=A*B)
$2,015,437
$340,053
$802,698
$160.058
$3, 318, 246
(D=C/100)
$33,182
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Table 8
Maximum Impact Fee Calculations -- $800,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
15.0
2.7
8.2
2.9
28.8
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total Impact Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$2,456,571
$357,010
$971,179
$170.312
$3, 955, 072
(D=C/100)
$39,551
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Table 9
Maximum Impact Fee Calculations -- $1,000,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
18.6
3.3
10.2
3.6
35.6
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total Impact Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$3,045,381
$436,264
$1,203,958
$208.894
$4, 894, 497
(D=C/100)
$48,945
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Table 10
Maximum Impact Fee Calculations -- $1,200,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
22.2
3.9
12.2
4.3
42.5
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total Impact Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*.B)
$3,634,191
$520,613
$1,436,738
$247.477
$5, 839, 019
(D=C/100)
$58,390
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Appendix A::
Appendix B:::
APPENDICES
Household: Expenditures. and
Employment Generation
Income Levels for Worker Households :.
APPENDIX A:
Household Expenditures and
Employment Generation
• Table'A-1 Estimated Average Annual.Household Expenditures and
Associated Employment Generation - $200,000 Unit A-1
Table A=2:,: Estimated:Average Annual Household Expenditures and.
Associated Employment Generation $400,000 Unit A-2.
Table A-3.:. Estimated Average Annual Household Expenditures and:.
Associated Employment Generation:;$600,000 Unit, A-3
Table A-4 Estimated Average Annual Household Expenditures and
Associated Employment Generation $800,000 Unit A-4
Table A-5 " Estimated Average Annual Household Expenditures and
Associated Employment Generation - $1;000,000 Unit A-5
Table A-6. Estimated Average Annual Household;Expenditures and
Associated Employment Generation - $1,200,000 Unit A-6:
Table A77 Representative Government Employment and Wages, • .
2010 A-7
Table A-1
Estimated Average Annual Household Expenditures and Associated Employment Generation-2200,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Expenditure Category/
Business Type
Calculation
per Category
1 E'pendilursper 2015 Expenditures art ems' P a.. 2007 W gss� 2007 Wae 59 Workcn % Total NH[Jn� 8615] I Worker HH I2n0NH I C0ta3nry
per Cabgory [11 =. ryp.aT Expenditures I Ea] u„ a to Wailes
c=Income •a• d=c•Omahm
a b b ad/wbnenU e.0•1000 / g=e// h log/h
k 1.04, m=1,J
Fed et Home 7.4% 100% $3,717 53,562
Food 68ever80e Stores 100% 53,717 $3,562 03,581,696 905 5361,533 524213 15 87.5% 1.52 9 636,696 LI 80%
Food Away From Home 49% 100% 52,473 32,370
Food Services end DllrMng Places 100% $2,473 52,370 52,369,900 352 5673,927 $13,479 50 87.5% 152 29 320,429 VLI
Alcoholic Beverages 08% 100% $400 5383
Food 6 Beverage Stores 50% 3200 5192 $199,957 965 $20,296 524,213 1 81.534 1.52 1 $36,698 LI 80%
Food Services end Ddnkng Places 50% $200 $192 $199,957 3.52 $56,862 $13019 4 67.5% 152 3 $20,429 VLI
Housing Maintenance, Repairs, Insurance,Other expenses 1.9% 100% 5963 $923
Personal and Homehold Goods Repair and Maintenance[71 45% $434 5415 $415,401 3.72 $111,717 520,783 4 901% 1.52 3 $00,593 LI 80%
Building Material end Garden Equipment end Supplies Dealer 45% 5434 5415 $415,451 8.51 348,820 528,625 2 57.5% 152 1 543,305 Med
Real Estate and Rental and Leafing 10% 596 $92 592,329 5,48 $16,917 531,974 1 901% 1.52 0 $48,460 Med
Fuel 00 and mot Fuels [61 0.3% 100% $153 $146
Nonzero Retailers 100% $153 5146 $140,207 831 $17,598 $28,212 1 87514 152 0 542,758 Med
Water and Other Public aervies[61 1.0% 100% 5481 5461
Waste Management and Remedra0on Services 100% $491 0461 5460,705 459 5100,398 .544,275 2 901% 1.52 1 $67,105 Above Mod
Household Operations Personal Servlcn 0.5% 100% 5244 S233
Ntrong end Residential Cam Factlmes 40% 391 S93 $93,306 232 840,206 525,357 2 98.1% 152 1 530,441 LI 80%
Sacral A2.i2t4n0e[71 60% 5146 5140 $140,060 296 $46,952 523,061 2 98.1% 1 52 1 536,160 LI 80%
Household Operations Other Household Expense 1,4% 100% $697 ' 5666
Services to Buildings and Dwefiings 171 100% 5697 3668 $057,801 204 5252,545 525,071 10 901% 1,52 7 537,990 LI 80%
Housekeeping Supplies 1.2% 100% $500 $564
Building Materials and Garden Egtipneni and Supplies Dealers 10% $59 558 $58,264 051 $6,626 528,525 0 87.5% 1.52 0 143,385 Med
Food 6 Beverage Stores 35% 5206 5197 $197,345 9,85 $20,031 524,213 1 81,514 152 0 530,698 LI 60%
General Merchandise 35% 5206 $197 5197,345 1066 116,508 321,008 1 87534 1.52 1 531,950 LI60%
Mlscel*neom Store Retailers 20% 5118 5113 $112,760 800 $14,101 967.860 1 875% 1.52 0 $27,100 LI60%
Household Furnishings and Equipment 20% 100% 51,412 $1,353
Fumtrae and Hama FUmi0N6gs Stores 40% 5565 5541 3541,2E9 869 $78,553 520,248 3 87.5% 152 2 542813 Med
Electronics and Appliance Stores 40% $505 $541 5501,209 939 $57,645 521,059 3 87.5% 1.52 2 531,918 LI 60%
General Mem/m.s.Staes 10% 5141 5135 $135,322 1066 $12,691 S21,006 1 87.5% 1.52 0 $31,950 LI 60%
Miscellaneous Store Retailers 10% 5141 5135 5135,322 800 $16,921 $17,060 1 875% 1.52 1 $27,100 LI 60%
Apparel and Services 2.8% 100% 51,426 51,366
Clothns end Clothing Accessoms Stares 40% S570 3547 5546,575 849 564,381 516,643 4 875% 1.52 2 $25,224 VLI
General Merchandise 40% 5570 $547 5548,525 10.66 $51,282 521,066 2 07.5% 1.52 1 E31,958 LI 60%
Miscellaneous Store Retailers 10% 5143 5137 5138,644 B00 $17,006 517,,800 1 87.5% 1.52 1 527,100 LI 60%
Personal and Household Goods Repair and Maintenance gl 5% 571 568 $60,322 3.72 $10,371 526,763 1 87.5% 152 0 300,593 LI 60%
Dry Cleaning and Laundry Services Ml 5% 571 568 $68,322 317 521,580 $25,020 1 81,5% 1.52 0 537,933 LI 80%
Vehicle Purchase (net outlay) 6.0% 100% 53,007 $2,882
Motor Vehicle end Parts Dealers 100% 53,007 52,882 $2,881,763 1242 $232,066 540,388 6 87.5% 152 3 $61,210 Mod
Gasoline and motor 011 65% 100% $2,113 ' 52,657
Gasobre Station 100% 52113 $2,657 52,657,107 4034 $65,662 618,204 4 87.5% 1.52 2 527,590 11 60%
V.h1c1e641ntenanc. and Repairs 1.6% 100% 5001 $767
Repair end Maintenance ill 100% S001 $767 $787,354 355 $215,352 52E204 7 98.1% 1.52 5 $44,262 Med
51.01521 Service 16% 100% 5822 5788
Ambulatory Health Care Services 40% $329 5315 $315,047 279 5113,087 $46,132 2 981% 1.52 2 $69,919 Above Mod
General Medical end Surgical Hospitals[71 30% 5247 $236 $236,205 263 $89,039 $58,054 2 981% 1.52 1 587,,808 Above Mod
Nursing and Residential Care Fac4Nes 30% 5241 $236 $236,285 232 5101,932 $25,367 4 98.1% 1,52 3 $38,447 LI 80%
0n9s 0.9% 100% 3449 5430
Heats end Personal Care Stores 100% 5449 S430 $429,930 7.11 560,476 528991 2 61.5% 1.52 1 545,455 Med
68.dic.I Supplies 0,314 100% $137 5131
Health and Personal Care Stores 100% $137 5131 $131,270 7.11 518,465 $29,991 1 87.5% 1.52 0 845,455 Med
Enterlinment Fes and Admissions 0.9% 100% 5432 5414
Arts, En5,12!1menl, 6 Recreation 100% 5432 $414 $414,072 427 $97,,007 $24,001 4 015% 1.52 2 $38,377 LI 80%
Audio and Visual Equipment and Service 19% 100% 5940 5901
Electron. ant Appliance Stores 100% $940 5901 8901,267 9,39 595,981 521,059 5 07.5% 1.52 3 $31,913 LI 60%
Pets,Toys, Hobbles, and Playground Equip. 1.1% 100% $566 $544
Spomng Goods, Hobby, and Musical InsWnent Stores 40% . 5227 $215 5217,780 806 522009 516,038 2 87.5% 152 1 $24,307 VLI
Miscellaneous Store Retoeers 40% $227 5218 5217,784 800 $27,232 S17,880 2 875% 152 1 527,100 LI60%
Veterinary Services [7] 20% 5114 5109 5100,092 281 538,702 534,148 1 981% 1,52 1 $51,755 Med
Other Enlerlalnm.nt!upon.s, Equipment and Services 06% 100% $279 5261
Sporting Goods, Hobby, end Muarral Instrument Stores 05% 5237 5227 $226,902 6.08 528140 516,030 2 87.5% 1.62 1 $24,307 VLI
Photographic Services [7] 15% 542 $40 $40,042 455 $8,792 $22,554 0 98.1% 1.52 0 $34,183 LI 80%
Personal Can Products and Services 1.1% 100% S542 $520
Unspecified Retail 50% 5271 $260 $259,895 8.00 $32490 517,880 2 51,514 152 1 $27,100 LI 60%
Personal Care Services [7) 50% 5271 $260 $259896 299 $80,004 516,484 5 96.1% 152 3 $24,984 VLI
Reading 02% 100% 597 $93
Sporlmg Goode, Hobby, end Musi9allnsbaneni Stores 100% $97 $93 593,386 806 511,592 516,038 1 98.1% 1.52 0 $24,307 VLI
Education 15% 100% 5733 $702
Educational Services 100% 3133 S702 5702,160 3.19 $220,041 515,973 14 87.5% 1.52 8 524,209 VLI
Miscellaneous 1,1% 10014 5564 SSC
440545370111 20% $113 $108 $108,187 1.96 $54,592 533,564 2 98.1% 1.52 1 350,871 Med
AmtutecN.i Engineering, and Related[7,81 20% 5113 S106 5108,187 280 $38,583 $74,995 1 98.1% 1.52 0 $113,664 Above Mod
Specialized Desgn Services [7] 20% $113 5100 5108,187 3.72 529,119 553,888 1 90.1% 1.52 0 $01,673 Above Mod
Death Care Services[/) 20% 5113 5108 $109,167 3A7 531,136 S39983 1 961% 152 1 466,052 Mod
Legal Services ill 20% $113 3108 $106,167 278 $39,177 585,730 2 96.1% 152 2 $129,940 Above Mod
Total per 1,000 Market Rate Households
160 107 I
Per Tel.., the purchase o/a5200,000 UM requires a household Income of 050,500
[1]Percent of Income spent perplegory is based on the 2013 Consumer Expenddure Survey data for househetset this income level Note Mat.. sum of the categories Included in Dye analysis is well telowtlre total expendrhaes of households atths Income
level, end amrepresents a conserve.°esbma0on°f]ab matron end h0usingmed. ExpeM1 Mcategories not Incorporated due to data pensbaints!nolo.taxes, housing and04gng, most palates,tobacco,
insurance, personal/le Insurance, cash
corrviseons, end financing charge.
12I Where multiple business types are Iilely to provide goods and services In the expen.ure category, EPS has estimated the propon5°n accruing to each business type.
[3] 2013 expeneures converted to 200/ dears using the National Consumer Price Ines lmm the Bureau of tabor Statistics,
[41 BLS data Inchoate, Pat 125%of retaNnstaurant woken are age 16-19, but an average of oNy 1,9%of workers In alherlldustrlee EPS has assume that such young workers do cot farm their own househod.
[5] Based on 2010 Census data for City of Pant Desert calculated as ge number of 9aborlam•tlNided by. number of Tousehoks with eammgs
]61 Part of Ns Ones, Fuel, end NNW Services wlegory, w56h also includes natural gin%electricity, and telephone services Natural ga, electricity, and telephone services not estimated because data was not available In .2007 Economic Census,
(i Riverside County data not available from 2007 Economic Census. Grass receipts to wages and 2007 average wage thus based on statewide data
18] Note that average salary reported for architecture, englneenng and related Odusbes reflects the NA range of empoyeee wMln the Industry, not sow, prolessianal end Ie6M1wl staff
Source.2013 Consumer Expebdure Survey, U S. Bureau of Labor Streams, 2007 Emnomc Census, U S Census Bureau, Census 2010, Economic 6 Planning Systems, Inc.
Finwap syab,le, lm 240015
A-1
A1po1 of
P,1410,TinV4101PalmileceMlofe1n1U44nYmolepID511af
Table A-2
Estimated Average Annual Household Expenditures and Associated Employment Generation - $400,000 Unit
Palm Desert Housing Impact Fee, EPS 8141134
Expenditure category)
Business Type
Calcule0on
%of Household •Aofmugcry pro zoOrosa Tall 200TAvg.
ImSPenl Expenditure per 2013 EegndWres Exp.d6ures Recelph 2007 Total 2007Avg. eof %Forming Workers/ I Worker I HH Income
pM Category ll] g e'fM Expenditures pe'1000 to Wages Wages Wage Workers XX H1 HE [6] HX income Category
a 0 c"income, •0 d•c•(Ma8on • e=d•1o00 I
adjas9nein/ a=e/f n l=gin /
Foodat Moms 61% 100% 55,675 55,439
Food 6 Beverage Stores 100% $5,875 $5,439 55,430,692 985 5552.028 520,213 23 82.534 152 13 536.698 LI 80%
Food Away From Home 44% 100% 34,131 53.950
Food Services and Drinking Places 100% 54,131 53.958 53,558,278 352 51,125,814 513,479 84 875% p 1.52 .. 48 520,429 VLI
Alcoholic Beverages 07% 100% $695 5666
Food 6 Savarese Stores 50% 5348 5333 $347,735 985 $35,295 524,213 1 87.5% 152 1 S36,698 LI 80%
Food Service% and Drinking Places 50% $348 $333 $347,,735 352 E08,085 513,079 7 89.5% 152 5 526,429 VLI
Mousing INalydenanu,13ep002,Insurance, Other expenses 2.2% 100% 52,017 $1,933
P ersonal and Household Goods Renee and Mabltenarce St 45% 5908 5070 886s,542 3.72 5233,887 529783 9 981% 152 8 540.593 LI80%
Buldng Metedalend Garden Egwpment end Supplies Dealer 45% 5905 5870 5869,842 651 5102.217 528,625 4 87.5% 152 2 S43,385 Med
Red Estatee,4 Rental and Leasly 10% 3202 5193 5193,298 548 $35,410 531,974 1 031% 152 1 $48,460 Med
Fuel 011 end Other Fuels [5] 02% 100% $211 $203
Nonetare Retailers 100% $211 5203 S202,642 8.31 S24,364 $28,212 1 02.5% 152 0 542,750 Med
Wabr and Other Public Services Le] 0.8% 100% 5753 5722
Waste Management and Re5Mia0cn Services tail% 5753 5722 5721,632 459 $157,239 544295 4 98.1% 1.52 2 $67,105 Above Mod
Household Operations Personal Swlces 06% 100% $522 5500
N ursing and Residemlal Care Faci4hes 40% 5209 5200 $109,940 232 $86,253 $25,387 3 981% 1.52 2 $38,44/ LI80%
Social 28606049e93 60% 5313 5300 $299,911 298 5100,523 623,881 4 98.1% 1.52 3 536,164 LI 80%
Household Operations Other Household Esp.nses 1.2% its% 51,097 51,051
Services to Buildings end Dwellings GI toil% 51,097 51,051 51,051.488 264 5397.645 525,071 16 901% 1.52 10 537,,998 LI 80%
Nousekeeping Supplies 12% 100% $1,141 51,093
Buldng Materials and Garden Equipment and Supplies Dealers 10% 5114 $109 $109.314 851 $12,840 528,625 0 87..5% 1.52 0 $43,385 Med
Food 6 Beverage Stores 35% $399 $383 0382,600 9.85 538,834 524,213 2 87.5% 152 1 530,695 LI 80%
General Memhandse 35% 5399 $383 5082600 1066 $35,883 521.086 2 875% 152 1 531,958 LI 60%
Miscellaneous Store 6e05e2 20% $228 5219 5218,628 8.00 527,337 512,860 2 87.5% 152 1 527,100 LI 60%
Mousehold Famishing% and Equipment 26% 100% $2,415 52,315
Fumaue and Home Fumishngs Stores 40% 5966 5926 5925,650 689 5134,361 $20,248 5 87.5% 1.52 3 542,813 Med
Elecdo*4a and Appliance Stores 40% S. $926 $925,850 939 $98,599 521,053 5 875% 1.52 3 531,918 L160%
General Mershandse Sores 10% 5242 5231 5231,462 10.66 521,708 521,006 1 87.5% 152 1 531,958 LI 60%
Mlscevaneous Store Re0uers 10% $242 $231 5201,462 . 800 528,942 517,1380 2 87.5% 152 1 527,100 U 60%
Apparel end Services 28% 100% 52,573 52,465
Clothing and Cblhi,g Accessories Stores 40% 51,029 5986 5986,192 8.49 $116,163 $18,6443 7 87..5% 152 4 S25,224 VLI
General Memhandae 40% $1,029 $958 $986,192 1088 $92,432 $21,086 4 87.5% 1.52 3 531,958 116008
Miscellaneous Stare Befallen 10% 5257 5247 $246,548 8.00 $30,528 512,850 2 87.5% 152 1 527,100 L160%
Persos9 and Household Goads Repair and Maintenancepl 5% 5129 5123 $123,274 3.22 533,148 528,783 1 87.5% 152 1 540,593 L180%
Dry Cleaning a. Laundry SeMcesp] 5% 5129 5123 $123,274 317 538,938 525,028 2 87.5% 152 1 539,933 U BO%
Vehicle Purchase (net outlay) 57% 100% 55.298 55.077
Motor Vehicle and Pads Dealers 100% $5,298 55,022 $5,077,310 1242 5408,672 540,386 10 87.5% 1.52 8 $61,210 Mod
(lasagna and motored 44% 100% 54,109 $3,936
Gasoline Stations 100% 54,109 53,938 62,938,014 4034 597.612 $18,204 5 87.5% 152 3 527.590 LI 60%
Gables. Madte5anco and Repairs 1 4% 100% 51,293 51,239
Repair and Mffidenerce m 100% $1,293 51,239 $1,239,495 a55 5349,469 529,204 12 981% 342 8 $44,262 Med
Medical Services 1.4% 100% 51,268 51,215
Ambulatory Heats Care Services 40% 5507 5486 $485,691 279 S174,413 548,132 4 98.1% 1.52 2 569,919 Above Mod
GeneMMedcala3 Suro.114oap6zisp1 30% $350 $334 5064418 263 5138,557 $55,054 2 981% 1.52 2 557,988 Above Mod
Nuung and Residential Care Facilities 30% $380 5364 $364,418 232 5157,207 S25.367 8 981% 1.52 4 $35,442 U 80%
Drugs 07% 100% 5839 $812
Health and Personal Caro Stores 100% 5639 5612 5612,430 7..11 586,147 $29,991 3 87.5% 1.52 2 $45,455 Med
MMIo0Suppllea 02% 100% 5216 5207
Health and Pomona) Care Stoma 100% 5216 5207 E207,145 7.11 E29,138 $29,991 1 87.5% 152 1 545,455 Med
Entertainment Fees and Admhslons 08% 100% $775 5743
Ms, Entertainment. 6 Recreaton 100% $775 5743 $746,022 427 5174,073 S24001 7 87.5% 1.52 4 $38,372 L180%
Audlo and Visual Equipment and Services / 1.5% 18011 $1,393 51,335
Electronics and Appance Stores 100% E1,393 51,335 51,335,197 939 5102,192 $21,059 7 87.6% 152 4 531,915 U 60%
Pets, Toys, Nobbles, and Playground Equip. 1.2% 100% 51,098 51,053
6p0dng Good, Hobby, and Muucel Instrument Shores 40% 5439 5421 S421,046 606 $52210 518,033 3 87.5% 1.52 2 524,307 VLI
Mis0evaneoua Stole Re6lers 40% 5439 5421 5421,048 500 $52,848 517,000 3 075% 1.52 2 S27,100 LI SO%
Veterinary Services m 20% 5220 5211 $210,523 201 574,824 $34,148 2 95.1% 1.52 1 551,755 Med
Other Entertainment Supplies, Equipment, and S%Mces 05% 100% 5468 544/
Sporting Goods, Hebb/, and Musical Instrument Stores 55% 5396 5380 5370,098 8.05 $47,114 515038 3 875% 152 2 $24,307 VLI
P08103571c5emceap] 15% 570 567 $67,041 455 514,721 524554 1 981% 1.52 0 334,183 LI 80%
Personal Care Products and Services 1.0% 100% 5952 5912
0317608154Rest 50% 5476 5458 5455,945 800 $57,012 517,060 3 875% 152 2 527,100 U BO%
Personal Care Services [7] 50% 5476 5458 5455,945 289 5152,283 516,484 9 901% 152 8 $24,984 VLI
0e4M9 02% 105% S. 5153
Spod82 Goods, Hobby,end Musical Instrument Stores 100% 5160 5153 5153,107 006 $18,980 518,035 1 981% 1.52 1 524.307 VLI
Education 1.5% 100% 51,424 $1,364
E40a9o001Services ' 100% $1,424 51,364 91,384,458 319 5427,591 $15,973 27 87.5% 1.52 15 524,209 VLI
Mhameneou. 1.1% 100% 51,027 5984
Accounting P1 20% 5205 5197 5196,788 1.98 599.300 533,564 3 98.1% 152 2 550.871 Med
Am3tectu3, Engineering. and Related 17.81 21% 5205 5197 $195,788 260 $70,154 $74,995 1 981% 1.52 1 E113,664 Above Mad
Specialised Design Services p) 20% 5205 $197 5198,788 372 552,960 553,508 1 981% 152 1 $81,673 Above Mod
Death Care Services()) 20% 5205 5137 $194288 347 558,635 535,083 2 98.1% 152 1 558,052 Med
Legal 3e44.,G] 21% 5205 5197 5196.780 276 571,261 535,734 1 90.1% 152 1 3129,940 Above Mod
Total per 1,000 Market Rate Households
307 184
Per Table4, to purchase of S400400 Unit reg4,eaa M,Oelold umme of 593,600
ihlPercent of Income wrepresefldem aced per
..goly anlalbasd lob on the
on 2011 Consu r Expenditure Survey data for house.. at OneIncome level. Nod Mat Me sum 8l the e.g.. NUu8M In the aneryels Is well Wow Me total expenditures of households at Ma income level. and
Impacts ExpeMdure categories not Incorporated due to dataconsbadh include taxes, housing and 1Mging, most Olt., tobacco, beam isurance,persen.Wfe ueurance, cash con,*Wane, and
rulancIng Gorges
121 Where multiple business types aro like', to pm4dl goods and services In to apend5lewtegon. EPS has estlma1ed its prosodies accrdng to each baldness type
1312013 expendhues converted to 2009 d11lan usingtie Consumer Price Index tar Me San Francisco Metupoldan 518020ml Area from Me Bureau of labor Statshos
(4( BLSda9 indicates Oat 125%ofre*Mes0umntworkers are age 16-19, but an average of only 1.9% 934508rs mother Woe.. EPS has assured that euchyoung workers do not form their own households
[5] Based on 2010 Census data for Goy of Palm Desert, cal2Uated as to number M laborlace"4Nlded by Ma number a1Touse5ids with eamngs"
I6] Partefee Uti4e, Fuels, and Rio. Services category, whichalso Includes natural gas, electnotly, and dlepMnd %olds% Natural gas, eledncay, andtelep0ce sen.%rot es0m0d because dadwas not available In to 2007 Economic Census.
GI Riverelde County data not ava7abe hom2007 Economic Census, Grass receipts to wages and 2007 average wage Mus based on statewidedata
Gil Note flat average salary reported for ar,Mecture, engineering and rela1d Indusinee reeds tie full range of employees whin lie Industry. not solely professional and technical stag
Source:2013 Consumer Expenditure Survey, U S Bureau of Later ...us; 2007 Eceronuc Census U.S. Census Bureau, Census 2010, Economic 6 Plarvung System, Ina
,aasr0mx,m4 2,3d015
A-2
P.p. fell
P11,00.1141 N.P.D•snNlo.111l3¢Ima enofe0203110.
Table A-3
Estimated Average Annual Household Expenditures and Associated Employment Generation - $600,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
•
Expenditure 0m9eryl
Business Type
Carafaden
%of Household •dot Gaegory 2007 Grose gpy qyp,
in ma
Inceme SEnPenpypl�a�pr ExpendeuresExpentlnuesl3J ExMem per Rs Wages oev orkers of %HN rang H I'+I WorlurlHH HH C epery per Cdegerypent [tl Isola
Bodn.s.rn lopeos Neluseholtls toenlptWages I WaI WIncome
e e n.lncone•a •b "adaen�n e.d•1000 r p=eyf h 10g/h I • k hny41 m= h•1
Food at Home 52% 100% $7,155 58,857
Food98eve146e Stores 100% $7,155 56,857 96,856,855 985 5695,972 524,213 29 875% 1.52 17 $38,698 LI 80%
Feed Away From Home 43% 100% $5,870 55.628
Feed Services and Drinking Places 100% 55,070 $5,626 55,625,638 3.52 $1,599,760 513,479 119 87.6% 1.52 69 520,429 VU
Alcohagc Beverages 0.8% 100% 51,109 51,063
Food 88e41er04e Stores 50% 5555 5532 5554,745 985 556,307 $24,213 2 075% 1.52 2 936,630 U 80%
Food Services and 5nnloeg Places 50% $555 $532 5554,745 3.52 $157,753' $13,479 12 875% 1.52 8 520,429 VU
Rousln88bintenance, Repairs, Insurance, Other espensn 21% 100% 52,816 $2,698
Personal and Household Goods Repair and Maintenance [71 45% 31,267 $1,214 $1,214,247 3.72 5328,492 $28,763 12 90.1% 152 3 $40,593 LI 80%
Balding Material and Garden Equipment and Supplies Dealer 45% 51,267 $1,214 51,214,247 851 5142689 526,625 5 875% 152 3 543,385 Med
Real Estate and Rental and Leasing 10% 5282 $270 5268033 546 549,441 $31,974 2 98.1% 152 1 S48,480 Med
Fuel Oil and Other Fuels 161 02% 100% 5250 5239
Namlore Readers 100% $250 $239 5239,340 031 520,799 $28,212 1 87.5% 1.52 1 $42,758 Med
Waterantl Other Public 5ervlces[5] 07% 100% 5699 5862
Waste Management and Rened4OonServices 100% 5899 5862 5661,853 459 5187,793 544,275 4 981% . 152 3 557,losAbove Mod
Household Operations Personal Services 08% ' 100% 51,049 51,006
Nursing andRe4den5al Care Facildes 40% 5420 S402 5402275 232 5173,539 $25,367 7 961% 1.52 4 $38,447 LI 80%
Social Assistance (7] 60% S630 $503 5603,412 298 5202,251 $23,861 8 96.1% 1.52 5 536,164 LI 80%
Household Operations Other Household Expenses 11% 140% $1,501 $1,438
Semen to Buildings and Dwelling. (7J 100% 51,501 $1,438 51,438,340 284 5543,943 525,071 22 981% 1.52 14 $37,998 LI 80%
Housekeeping Supplies 09% 100% 51,232 $1,181
BWWng Materials and Garden Equipment and Supplies Dealers 10% $123 $118 $118,059 851 $13,873 $28,625 0 875% 1.52 0 $43,385 Med
Food Beverage Stores 35% 5431 5413 5413,206 985 541,941 524,213 2 87.5% 1.52 1 $38,698 LI 80%
General Meehandse 35% 5431 $413 5413,206 1066 538,753 $21,066 2 87.5% 1.52 1 531,958 LI 60%
Mrsce➢ameous Store Retailers 20% 5246 $236 5236,118 8.00 $23,524 $17,080 2 87.5% 1.52 1 $27,100 LI 60%
Household Furnlahings and Equlp8ent 26% 100% 53,589 $3,439
Fum.ue end Home FuWSNngs Stores 40% 51,436 51,376 $1,375,743 609 5199,650 526,248 7 875% 1.52 4 $42,813 Med
Electronics and Appian Stores 40% 51,436 51,376 51,375,743 939 5146,511 $21,059 7 87.5% 1.52 4 $31,918 LI 60%
General Merchandise Stara 10% 5359 5344 5343,936 10.66 532,257 $21,086 2 875% 152 1 531,959 LI60%
Miscellaneous Stare Ret9ers 10% $359 $344 5343,936 8.00 543,008 $17,080 2 87.5% 1.52 1 527,100 LI 60%
#7p4Nand Services 2.4% 1m% 53,211 $3,077
Clothing end Clothing Accessories Stores 40% 51,284 51,231 $1,230,7559 849 $144,970 516,643 9 B75% 1,52 5 525,224 VU
General Merchandise 40% $1,284 $1,231 51,230,759 1066 5115,429 $21,086 5 57.534 1.52 3 331,958 LI 60%
Miscellaneous Store Reta3en 10% 5321 $308 5307,690 000 538,474 $17,880 2 87.5% 152 1 527,100 Li 60%
Personal and Household Goods Repair and Maintenance()) 5% 5161 $154 5153,845 372 541,367 $26,783 2 07.5% 152 1 540,593 U 80%
Dry Cleansing andlauldry Services PJ 5% 5161 5154 $153,845 317 540,590 $25,028 2 87.5% ' 1.62 1 $37,933 LI 80%
Vehicle Purchases (net outlay) 5.7% 100% $7,812 $7,486
Motor Vehicle and Part Dealers 100% $7,812 57,486 $7,488,272 1242 5602,863 $40,386 15 87.5% 152 9 $61,210 Mod
Gasoline and motor ell 36% 100% 54,922 $4,717
Gasoline Mahone 100% 84,922 $4,717 54,718,605 4034 $118,911 518,204 6 875% 152 4 527,590 LI 60%
Vehicle Maintenance and Repairs 1.3% 100% $1,761 51,688 /
Repair and Maintenance VI 100% 51,761 51,688 $1,608,038 355 5475,933 $29,204 16 981% 1.52 11 $44,262 Med
...Services 12% 100% $1,840 51,572
Ambulatory Health Care Services 40% 5656 5629 5820,727 279 3225,684 $46,132 5 98.1% 1.52 3 569,919Abovs Mod
General Medal and Surgical Hospitals VI 30% 5492 5472 5471,545 263 $179,288 568,054 3 98.1% 1.52 2 897,98BAb9Ve Mad
Nursing and Resident! Care Facilities 30% $492 5472 $471,545 232 $203,421 525,367 8 98.1% 152 5 538,447 LI 80%
Pines 05% 100% $735 $704
Healthand Personal Care Stores 100% $735 $704 $704211 7.11 599,058 $29,991 3 87.5% 1.52 2 $45,455 Med
Medial Supplies 0.2% 100% 5269 $277
Heats and Personal Care Stores 100% $289 5277 5277,312 7.11 539,000 529,991 1 875% 1.52 1 $45,455 Med
Ent0Ndnment Fees and Admission 12% 100% 51,675 $1,605
Arts,Emenlamment, 8 Recreation 100% 51,675 51,605 51,605,107 427 5376,058 $24,001 16 87.5% 1.52 9 $36,377 LI 80%
Au4ld and Visual Equipment and Services 1.2% 100% 51,687 51,817
Eeaoncsand Appliance Slates 100% $1,687 51,817 51,616,654 939 5172,171 521,059 8 87.5% 1.52 5 531,910 LI 60%
Pets, Toys, Hobbies, and Playground Equip. 0.7% 100% $1,019 $977
S7ohny Goods, Hobby, and Musicallnstrunent Stores 40% 5408 $391 5390,768 806 $40,463 516,038 3 875% 1.52 2 524307 VU
Miscellaneous Store Rotators 40% 5408 5391 5390,768 800 $48,862 $17,880 3 875% 1.52 2 $27,100 LI 60%
Vetemary SeMees(7J 20% $204 $195 $195,384 281 $69,443 534,146 2 981% 1.52 1 $51,755 Med
Other Entertainment Supplies, Equipment and Services 0.7% 100% 5904 3866
SpoNng Goode, Hobby, and Musical Instrument Stores 85% 5769 $736 5738,488 808 591,330 516,038 6 B75% 152 3 524,307 VU
Photographic 567959e5[7] 15% 5136 5130 5129,968 455 520,538 $22,554 1 98.1% 1.52 1 534,133 LI 80%
Personal Care Product/ and Services 1.0% 100% 51,375 51,318
Unspecified Retail 50% $687 $659 S658,760 8.50 $82,372 517,880 5 87.5% 1.52 3 $27,100 LI 60%
Personal Care Servicnm S0% 5687 $859 5658,760 299 5220,022 516,404 13 981% 1.52 9 524,904 VLI
Reading 0.2% 100% 5209 5200
5po1ng Goads, HoObl, and Mos. lnsMmlent Stores 100% 5209 5200 $208217 808 520,631 518,038 2 98.1% 1.52 1 $24,307 VLI
Education 1.8% 100% 32,492 52,38E
Edralnnal Services 100% $2,492 52,388 52,387,644 3.19 5748,235 515,873 47 87.5% 1.52 27 $24,209 VLI
Miscellaneous 1.0% 100% $1,420 51,361
Amour/mgP1 20% $284 5272 $272249 1.98 5137,37E $33,564 4 98.1% 1.52 3 $50,871 Med
AtchMdusl, Engineering, and Related[7,8( 20% 5284 52n 5272249 250 597,092 $74,995 1 98.1% 152 1 5113,664 Above Mod
Speualun Design Services (71 20% $284 5272 5272,249 372 573,277 $53,086 1 981% 1.52 1 $81,673 Above Mod
Death Care SeMcesi7) 20% 5284 5272 9272249 347 578,353 536,983 2 98134 1.52 1 556052 Mod
Legal Services [7] 20% 5284 $272 5272249 276 598,587 585,734 1 98.1% 152 1 5129,940A800e Mod
Total per 1,090 Mahe/ Rate Households
439 263
Per Tabled, the purchase ol$$600,000 Unit requires a household Income or 5130,400
(1] Percent of Inane spare per category la based on Me 2013 Consumer Expenditure Survey data for households at Ws income level Note that the sumo/ thealegmes included Inglis anahxls is well below Medaal expenddun oftouselolds at Ws tram level, and thus
representasenses/at. estimation ofj6b creation and housing impacts Expendi6re categories not Incorporated die to data concha(Wlrdudetexes housing and lodging, most W00es,tots., healMOaumnce, personalHelnm4ance, ash contrl6Nonq andfinancing
charges
121 Vfiere multiple W0ness types are like,/ 8 proMde goods and cervices In the expen2lune category, EPS has esMnatedthe pmpch8naccruing to each business type.
[312013 expendtures angered to 2007 action usngtle Consumer Price Ind. from the Bureau of Labor Sat..
[41 BLS gate Indicates hat 125% of re6Jhesteuramworkers ale age 16.19, but an average of only 1.9% of workers Mother Ind.. EPS has assumed that such ping workersdomt form their awn households
[5] Based on 2010 Census dale facity of Palm Desert, alNat5 as the numberallehor force&Adel Wale nurser of MausehokbwM earrings•
(6) Part of the Wlihea Fuels, and PUN. Semmes category, which also Inducts rashest gas, elecmc6y, end eephone senAces Natural gas, electricity, and hlephea services not estimated beauve data was notevedable In Me 2007 Ea omc Census
()I/1..Ni. Coinryd 4 not avalla9ekom 2057 Economic Census, Gass receipts to wages and 2007 average wage Mus hosed on slatewidedaa
(el Nate pat average nary repmled for ercMedue, engineering and related Industries reflectsVe 89 range of employees Whin the Industry, not so8N pofeseMnal and technical lag
Source.2013 Consumer Expen4lure Suse,, U 8 Bureau of Labor Sha3shcs; 2007 Economic Census, U S Census Bureau, Census 2010, Ecommc 8 Planning Systems, Inc
Eoorara4Paso.)Somas Sic r3
A-3
Pepe,/
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Table A-4
Estimated Average Annual Household Expenditures and Associated Employment Generation-S500,000 Unit
Palm Desert Housing Impact Fee, EPS 01141134
Calculation
Expenditure category/
Business Type
•
X of Xouaeheld "O1 V°1Ggory 266T "10f a Total 200/Avg.
Income3Pont Ependltun per 1a1] Expendl.es lowlph 2007 Tatat 2507 Avg. eo/ XF.min9 WOderd WorkO NN Income
Type of Ettpendltur" '131 rea pO 1000 s Wag" Wags I Worker HN I9 NN I6] Cdapery
perCete9oryl11 e......rn D] u,,,...h9fa- loWag" NN Intone
co Income •a• d•c•pnlalon
a b Mjusbnono a=d'1000 I 90e// h I•p/h / k hr•Ah m • h •J
Food at Home 36% 100% $6,540 56,267
F864/8e4erage Stares 10034 56,540 $5,287 $6,267,200 985 $636,1213 $24213 26 87.5% 1.52 15 535,598 LI80%
Food Away Rem Holm 34% 100% 58,085 $5,831
Food ...send Onnking Rates 100% $5,085 55,831 $5,830,931 352 51,658,140 $13,479 123 57.6% 152 71 520,429 VLI
Alcoholic Beverages 0.7% 100% $1,191 51,141
Food/Beverage Stores 50% 5595 $571 5595,459 905 $01439 524,213 2 025% 152 2 535,598 LI 80%
Food Semces and 0nnIdg F1aces 50% $595 $571 5595,059 352 516%330 $13,479 13 87 5% 1.52 a $20,429 VLI
Rousing Maintenance, Repairs, insurance, Other expenses 1.6% 100% $2,937 52,814
Personal and Household Goods Repair and Maitenance[T] 45% 51,321 $1,268 51,268,370 312 S340,510 $26,783 13 98.1% 1.52 8 $40,593 LI80%
13uil4rg Material and Garden Equipment and Suppl,ea Dealer 45% $1,321 51,256 $1,266,370 051 $148,815 S28,625 5 875% 1.52 3 541385 Med
Real Estate end Rental and Leasug 10% $294 5201 $281,417 5.46 551,504 531,974 2 981% 152 1 $48,060 Med
Fuel 011 and ONO Fuels [0] 02% 100% 5329 5315
Nontore Retailer. 100% 5329 5315 $315,334 831 537,,944 528,,212 1 87534 1.52 1 542,750 Med
Wdarmd 0Ner Public Services [6] 05% 100% 5921 $1383
Waste Management and RemM..o.Services 100% 5921 $883 $8132,752 459 S192,347 544,275 4 , 90.1% 1.52 3 56/,105Ahove Mod
Household Operations Personal Services 08% 100% $1,513 51,450
Nursing end Resae...I Care Faubb" 40% 5005 $530 $580,068 232 5250,237 $25,367 10 98.1% 152 6 $38,447 Li 80%
Social 002s011e[7] 60% 0900 5870 $870,102 290 $291,639 523,661 12 98.1% 152 8 536,164 Li 80%
Household Operations Other Household Expenses 12% 100% $2,209 52,112
Services to Bullrings and Uwe0ms[7] 100% 52,209 $2,117 52,116,589 264 5800,439 525,071 32 551% 1.52 21 537,998 LI 80%
Housekeeping Supplies 07% 100% $1,332 51,277
Bu14ng Materials and Garden Equipment and Supllee Dealers 10% $133 $128 $127,092 8.51 115,005 $28,525 1 87.5% 1.52 0 $43,385 Med
Food/Beverage Stores 3594 5406 5447 5445,922 985 545,363 $24,213 2 07.5% 1.52 1 535,690 Li 80%
General Mechandse 35% $465 544/ $445,,922 10.66 $01,916 $21,086 2 07.5% 152 1 531,955 LI 60%
Mscellamous Stare Retailers 20% 5266 $255 $255,384 800 531,933 517,880 2 07.5% 1.52 1 $22,100 LI 60%
Houssh0MFurnlshings and Equipment 2316 100% 54,118 $3,940
Fumtue and Home Fum,shIngs Sores 40% 51,647 $1,579 51,520,500 1589 $229,075 $28,248 0 87.5% 1.52 5 542,813 Med
E1Gromc3 and Appliance Sarea 40% $1,647 51,579 $1,578,504 939 3168,104 S21,059 8 87.5% 1,52 5 531,918 LI60%
General Merchandise Stores 10% $412 $395 $390,,626 10.613 537,011 321,085 2 87.5% 152 1 $31,950 LI 60%
Macellamous Snore Reapers 10% 5412 $395 5394,628 046 561,120 $17,880 3 87.514 152 2 527,100 LI 60%
Apparel and Services 20% 100% 53,594 53,444 .
CloNng and Clothmg Accessories Stores 40% $1,438 51,378 51,377,570 849 5182263 $16,641 10 875% .. 1.62 6 $25,224 VLI
General Mechandse 40% 01,438 $1,378 51,322570 10.66 $129,198 $21,080 6 57534 152 4 531,958 LI60%
Miscellaneous Store Roalers 10% $350 $344 1344,393 B00 SA3,063 517,880 2 875% 1.52 1 527,100 LI 60%
Personal else Household Goods Repo, and Ma2ana,xe[7] 5% 3180 $172 $172,196 3.72 546,301 $26,783 2 87.5% 1.52 1 540,593 LI 80%
Dry Clearing and Laundry Services[11 5% 5180 5172 5172,196 3.17 554,391 S25,028 2 87.5% 1.52 1 537,933 Li 80%
Vehicle Purchases (net outlay) 43% 10014 $7,539 S7,321
Mot. Vehole end Pads Dealers 100% 57,639 $7,321 57,320,519 12.42 5509,515 $40,386 15 87.5% 152 8 551,210 Mod
Gasoline and meter ell 2.3% 100% S9,055 $3,885
0eso0ne501.e 100% $4,055 $3,585 $3,085,700 4034 S90,317 518,200 5 87..5% 1.52 3 $27,590 LI60%
Vehkle Maltenenw end Repairs 1.0% 100% 51,777 $1,70
Repak and Maintenance[T1 100% 51,777 $1,703 51,703,171 3.55 3080,200 $29,204 16 90.1% 152 11 544,263 Med
Me21w1 Services 0.9% 100% $1,660 $1,590
Ambulatory Health Care Servces 40% $654 $636 $635,168 279 5225,355 $454132 5 961% 152 3 $09,919 Above Mad
General Medical and Surgical Hosp.% [7] 3094 $490 5477 5477,120 263 5101,410 $56,054 3 98.1% 1.52 2 58T,088Ab0ve Mod
Nursing end Residential Care Paddies 30% $490 $477 $077,126 232 $205,829 $25,362 0 981% 1.52 5 $35,447 LI80%
Dmge 0.4% 100% $765 S734
Health and Personal Care Sores 100% 1765 $734 $734,252 7.11 $103,253 529,991 3 87..5% 152 2 545,455 Med
Medical Supplies 02% 100% $255 5273
He. and Personal Care stores 100% $285 $273 5273,167 7.11 $38,425 $29,991 1 875% 1.52 1 $45,055 Med
Entertainment Fees ...Admissions 1.3% 100% $2,305 $2,209
343, EmeRmment 65e2n0500 100% $2,305 $2,209 $2,209,172 427 5517,558 524001 22 87.634 1.52 12 536,377 LI80%
Audio end Visual Equipment and Services 09% 100% $1,502 $1,518
El0dronim and Applause Stores 100% 51,582 $1,516 S1,5113,171 939 5161,466 $21,059 8 87.5% 1.52 4 531,918 LI60%
Pea, Toys, Hobbles, end Playground Equip. 07% 10014 $1,238 51,180
Sporting Goods, Hobby, and Musical Instrument Stores 40% $495 5474 $474,4613 806 $58,803 516,03E 4 57.5% 1.52 2 524,307 VLI
Miscellaneous Store Reapers 40% 3495 S414 5474,4513 8.00 559,328 $87,880 3 87.5% 1.52 2 S27,100 Li60%
Veeeary 5e101ee0[71 20% 5248 0237 $237,234 281 584,317 834148 2 • 981% 152 2 $51,755 Med
Other Enh44lnmsnt Supp0ss, Equipment, end Ssrvlces 08% 100% $1,420 51,360
Spo5ng Goods, Hobby, and Musical Instrument Stores 85% $1,207 $1,150 $1,158,288 806 $143,401 $18,038 9 07.5% 1.52 5 524,307 VLI
Photographic Services ]r1 15% $213 5204 $204,051 455 $44,504 $22,554 2 98.1% 1.52 1 $34,183 LI80%
Personal Can Preclude end Services 0.7% 100% 51,311 $1,252
Unspee4ed Rear 50% $650 0628 5620,327 000 570,573 517,880 4 87.5% 152 3 $27,100 LI 60%
Semen. Care Services[)] 50% $658 5820 $628,377 299 $209,874 $16,484 13 98.1% 152 8 $24,984 VLI
Reading 0.1% 100% 5251 $250
Sporting Goods, Hobby, and Musical Nstrtonent Stores 100% $251 $250 $250,251 806 S31,036 $16,030 2 981% 1.52 1 $24,307 VLI
Education 25% 100% 54,440 54255
Educational Services 100% $4,440 54,255 54,255,171 319 51,333,470 $15,973 83 57.5% 152 48 $24,209 VLI
M%mganeous 0.9% 100% 51,605 51,538
80o03.59[7] 20% 5321 1300 5307,,834 1.98 $155,234 533,564 5 96134 1.52 3 850,971 Med
AmMttlua] Eng...ebg, and Related[T,6] 20% 5321 5308 $307,,534 280 $109,711 $74995 1 98.1% 1.52 1 $113,664Ab0V8 Mod
Specal8ed Design Servaesp] 20% 5321 1308 5307,,634 372 assail 553,888 2 981% 1.52 1 581,613 Above Mod
Death Care Services[]] 20% 5.321 5308 $307,634 340 588,537 $35,983- 2 981% 152 2 356,052 Mod
Legal Services[7] 20% $321 1308 5307,634 276 $111,401 185,734 1 98.1% 1.52 1 5129,940Ab0Ve Mad
Toni per 1,000 Market Rana Households
514 307
Per Table 4, iM purchase of a $800,000 UM reg4,rec a Iateelald Imams of 5170A00
[11Percent of Income spent per category a tee. on Me 2013 ConsumerEnpe4due Survey doh (tor households atN, Irvreme Ieve1. Nate Nat the sun of tin categories I2IMM 6INaamlyda 15 well pelves.etmal expe5lun ofhouse4seeet.
Income lvet and thus repeaentsa conservative esbmabon of lobaeabon and housing Impacts ExpendMe catego1es not Incorporated due to doh constraints Imise taxes, housing and lodging most unties, tobacco, heath Insurance, peso...
Insured. cash mntr1 130ns, end financing charges.
[3] 2013 expen4N,ee converted.2107 dolor using the Consumer Pyoe Index fromths Bureau of Labor S.M.,
[4] BLS data Inceaas Nat 12 5% of retail/restaurant workers are age 1619, but an average of only 1 9% of worke. N other In4,0865 EPS has assumed that such young workers do not form then ram households
pleased an2010 Census data terCM of Palm Desert, calculated as the number or labor frce.. . by the number of"ouseholdewth earnings..
[6] Patafihe UGlmes Fuels, and Public Services category, which also includes natural gas, elecimity, andtelephom services Natural gas, electric., andtekphom mod. rotesbmated because data was net 00390le In the 2007 Scans. Ceneue
[I] Riverside County data not avala0e from 2007 Economic Census Grose rec4pb to wages end 2007 averagewa2e thus basedon statew,ds data.
[8] Nate that average salary repot. for arc3tec5ue, egm"mg end related loansbies rel... NI ranged e,Pldyeeswlthun the Industry, not solely professional and technical she.
Saute 2013 Consumer Expenchure Suvry, U S Sureauol Labor MCC.; 2007 Economic Census, U.S. Comm Bureau, Census 2010, Emnomc 8 panning Systems, Inc.
A-4
6wxmb4 bpsymmss40 24V4013
Plr4rdmd14af3rgma rotV..114afHr ae..13a0.11...
Table A-5
Estimated Average Annual Household Expenditures and Associated Employment Generation-$1,000,500 Unit
Palm Desert Housing Impact Fee, EPS N141134
Expenditure Cate0aryl
Business Type
wwd46n
X 66 Household "a or ulnepory 2007 4uuv Gross Tobl MO]Avg.
Expenditure pal 201] ExpendlNres 2007.21 2007 Avg, 84f %Forin9 WOrkersl Income
Inrome Spent Type Of ExpendlNres FxPentliNres pa1000 Rs.ipls Wages Wags Workers NN [4j XX 282 Worker NH C0%Oary
Pef Gme9.701 w,......m Cn bWages HX Income
a D c=lncane•a• d=o•(wiahw, •
a=d'1000 7
e ay.enn9 9'e/I n !=gin
k Wyk m.3'1
Feed at Hems 3.6% 100% 58,10E 57,769
Food 8 Beverage Stores 10011 50,108 57,759 57,769,453 985 S788,501 524213 33 87.5% 152 19 538,698 LI BO%
Food Away From Home 34% 100% 57,543 S7,229
Food Services and D4nidng Places 100% 57,543 57,229 S7,228,535 352 52,055,57E S13,479 153 875% 1.52 88 320,929 VLI
Alcoholic Bevnag.
Fa. 8 Beverage Stores
Food Services and DM4ng paces
Housing Maintenance, Repair,Insulance, Other expenses
Personal end Household Goods Repair and Malnterence PI
Bulldog Material and Garden Eg4pnent and Supplies Dealer
Real Estate arm Rental and Leasing
0.7% 100% 51,476 51,415
50% 5738 5707 5738,183 985 674926 $24,213 3 87.5% 152 2 536,638 LI BO%
50% 373E 5707 $738,183 352 5219,917 813,47E 16 87511 1.52 10 520,429 VLI
1.6% 100% 63,641 524e9
4514 51,630 51,570 51,569,914 3.72 S422,126 526,,763 18 98.1% 152 10 548,593 LI80%
45% 51,638 S1,570 51,569,914 8.51 S164,434 928,625 6 87.5% 1.52 4 S43,385 Med
10% 5364 S349 5348,870 546 S63,923 531,974 2 98114 1.52 1 548,460 Med
Fuel 011 and lithos Fuels [5] 02% 100% E408 $391
Nomtare Retailers 100% 5408 5391 5390,916 831 E47,038 S28,212 2 87.5% 1.52 1 512,75E Med
Water end Other Public Services[61 0516 100% S1,142 51,094
• Waste Management and Remeda0on 3ervxea 100% S1,142 51,094 $1,094,337 459 5235,450 S44,275 5 98.1% 1.52 3 567,105 Above Mod
Household Operations personal Services
Nursing end Residential Care Facttes
Social Assistance p1
08%
100% 51,876 51,798
40% $750 5719 5719,103 232 5310,216 525,367 12 98.1% 152 8 638,447 LI 80%
60% 51,126 51,079 51,078,655 298 $361,542 523,861 15 99.111 152 10 536,164 LI 80%
Household Operations Other Household Expenses 1.2% 10014 52,730 52,624
Services to Bulldogs end Dwellings VI 100% 52,738 52624 52,623,909 264 5992,294 S25,071 40 98.1% 1.52 26 537,998 LI BO%
Housekeeping Supplies
BUnsng Materials a. Garden Equipment and Supphee Dealers
Fa04 8 Beverage Stores
General Memnandre
Misceuanous Store Hetalers
Household Furnlahbgs and Equipment
Fumble end Home Furnishings Stores
Electronics ark&pollen. Stores
Gene. Merchandu Stores
M1s 250424us Store Retailer.
Apparel and Servlc.
Clothing e.Clothng Access...Stores
Gene. Merahndse
Miscellaneous Stare Retalen
Personal and Household Cods Repair and Mao0enence HI
Dry Cleaning end Laundry Services (0
07% 100% 51,652 51,583
10% 5165 9150 5158,298 851 518,602 820,625 1 87,564 152 0 543,385 Med
35% 5578 3554 5550044 985 556,238 $24,213 2 137.5% 152 1 536,698 LI 80%
3511 5578 5554 8554,044 1066 551,962 821,006 2 87.5% 1.52 1 531,958 LI 60%
20% S330 5317 5316,59E 800 539,587 S17,880 2 87.5% 152 1 S27,100 LI 60%
23% 100% S5,105 84532
40% 52,042 S1,957 51,956,852 8.89 5283,902 528,249 10 87.5% 1.52 6 942,813 Med
40% S2,042 S1,957 51,956,052 939 5218,397 521,059 10 875% 1,52 6 531,918 LI 60%
10% 5511 5489 5409,213 10.68 845,982 521,086 2 87.5% 1.52 1 631,958 LI 60%
10% 8511 5489 5489,213 800 661,171 517,8130 3 87512 1.52 2 527,100 LI 60%
20% 100% 54,455 54,269
40% 51,782 S1,708 51,707,757 849 $201,155 516,643 12 87.6% 1.52 7 S25,224 VLI
40% 51,782 51,708 51,707,757 1066 5160,166 521,086 8 87.5% 1.52 4 531,95E LI 60%
10% 5446 5427 5426,939 800 553,385 612880 3 87,5% 1.52 2 527,100 LI 60%
5% 8223 S213 5213,470 3.72 557,399 S28,783 2 137.511 152 1 540,593 U 80%
5% 5223 $213 5213,470 317 567,427 S25,028 3 87,511 , 1.52 2 537,933 LI 80%
Vehicle Purchase (nat outlay) 43% 100% 69,470 19,075
Motor Vehicle and Pads Dealer. 100% $9,470 59,075 S9,075,158 1242 5730,615 E40,386 18 875% 1.52 10 561,210 Mad
Gasoline and motor ell 23% 100% 55,027 S4,817
Gasoline SOtons 100% S5,027 54,E17 54817,129 4034 5119,403 518,204 7 875% 1.52 4 S27,590 LI 60%
Vehicle Maintenance end Repairs 1.0% 100% S2,203 52,111
Repair and Maintenance 171 100% 52,203 52,111 52111,400 355 5595,299 619,204 20 98114 1.52 13 544,262 Med
Medical Services 09% 100% 52,057 51,972
Ambidatory Heats Care Services 40% 5823 $709 5788,650 279 5283,089 $48,132 6 981X 152 4 869,919 Above Mod
General Steckel end Suglcal Hospitals RI 30% S617 5591 5591,40E 263 5224,891 $58,054 4 981% 1.52 3 587,988 Above Mad
Nursing and Residential Care FacRees 3011 5617 S591 5591,488 232 8255,164 525,367 10 98.1% 152 7 538,447 LI80%
Drugs 04% 1m% 5950 5910
Health and Personal Care Stores 100%, 5950 S910 5910,243 7.11 5128,039 529,991 4 67.5% 152 2 S45,455 Med
Medical Supplies 02% 100% 3353 5339
Health and Personal Care Stores 100% 5353 5339 5338,642 711 647,635 529,991 2 875% 1,52 1 545,455 Med
Entertainment Fins end Admissions 1,3% 100% 52,85E 52739
Ads Entertainment, B Recreation 100% 52,858 52739 S2738,684 427 2341,610 524,001 27 87.5% 152 15 S38,377 LI80%
Audb and Visual Equlpmntend Services 0 9% 100% 51,961 51,880
Electronics and Appliance Stores 100% 51,961 S1,880 51,879,578 8.39 5200,167 521,059 10 805% 1.52 5 S31,918 LI 60%
Pete, Toys, Hobbies, end Playground Equip. 0.7% 100% 51,534 S1,470
Sporting Goods, Hobby, rid Musica114001ment Stores 40% 6614 S588 $588,192 806 572947 516,038 5 87.5% 152 3 520,,307 VLI
Mlsceliareo. Shire Retailers 40% S514 558E S588,192 200 S73,548 817,880 4 87.5% 1.52 2 527,100 L160%
Veterinary Services RI 20% 5307 5294, 8294,096 281 5100527 134148 3 981% 1.52 2 551,755 Med
Other Enbsalnment Supple, Equipment, end Sarvlces 0.8% 100% 51,760 81,686
Spading Goods, Hobby, and Musical Instrument Stores 05% 51,49E 51,433 S1,933,934 808 S177,773 S18,038 11 87.5% 152 6 524,307 VLI
Plotagrapbc Services 171 15% 5204 S253 5252959 455 S55,543 522554 2 981% 152 2 634,183 LI 80%
Personal Care Preducb and Services 07% 100% 51,62E 81,558
Unspecified Retell 50% 5813 5779 5770,991 800 597,405 517,880 5 87.5% 152 3 527,100 U 60%
Personal Care Services 171 50% 5813 5779 5778,991 299 $260,178 518,484 16 98,1% 1.52 10 524,984 VLI
Reading 01% 100% 5324 5310
Spading Goods, Hobby, and Muslwl Instrument Stores 100% 5324 $310 5310,233 806 530,475 S16,038 2 98.1% 152 2 524,307 VLI
Education 25% 100% 85,505 55,275
...tonal Services 100% 55,505 55,275 55,275,092 3.19 51,653,097 $15,973 103 87.5% 1.52 60 524,209 VLI
Miscellaneous 09% 100% $1,990 51,907
Accounting RI 20% 5398 5381 $381,370 1.98 5192442 533,564 8 981% 1.52 1 550,871 Med
N.M.., Engineering, e. Related(7,131 20% 5398 5381 S381,370 280 S138,008 574995 2 96.1% ' 1.52 1 S113,664 Above Mod
Specie.. Design Servicesm 20% S398 8081 S381,370 272 5102647 553,00E 2 98,1% 1.52 1 $81,673 Above Mod
Death Care 5e46449171 20% 319E 5381 5381,370 347 5109,758 136,983 3 231% 1.52 2 558,052 Mod
Legal Servicespl 20% 3390 S381 5381,370 278 S138,102 S85,734 2 981% 152 1 S129,940 Above Mod
Total per 1,000 Starke.. Households
635 380
Per Table 4, the purchase of a $1,000,900 Unrt requires a household Income of 522 ,400
[1i Percent al bcome sped percde9ory is hased ontiw 2013 Cnsurner Expenemn 6urvey data for Wselo. at Ms income level. Note Nat the sum of the categories hailed n me analysis Is well 5elox Moto. experd6n of h ousehloldset ills
Ircpm level, rid thio repet098 a .0.29%9 es541800 olj589m4507 ark housing inrp2Us. Expenditure categories not Incorporated die to.b=natal. Include Wes, housing and bilging neOUMMes, tobacco, heats insurrce, person.Mde
Maur -anus, cash contributions, and financing charges
13I2013 expenditures conceded to 2107 dollars usngiln Commoner Pace Infix from Ole Bureau olLabor Sbt9Sce
[4] BLS data II..bethat 125%of reblvresb4antworken ere age 1219, burn average of only 1.9%ofwoeers mother industries. EPS. esslned that such young worker da not 7On their own heuseheida
[5] Baud on 2010 Census date far CM of Palm Desert, calculated as the random of gator tors.drv4ed by the nuonber of Teuse.l. with earnings"
[6] Profiles UMdes, Fuels, end Pubic Sencescategory, 0X98 also includes natural gas, electricity, and telephone esrvbea Natlsal gee electricity, and telephone servcesnet esU74bdbe.me data was not evadable lnihe 20137 Ecammo Conan
[71 Riversde County data not avaieMe nor 2007 E.nomlc Census Gross receipts to wages and 2007 average wage Um based an steam. data
PIE. 2stavera99 .22 rep 4 M 2.rsistecbrre, engbeedng and related Ir1sinesrellecls the MI range alemployeesw4, 7Ile iindishy, not solely professional and technical .2.
Source 2013 Consumer Dipen0Nre Survey, U S Sunned Labor Statist., 2007 Esonemic Census, U S Census Bureau, Cem.2012 Economic 8 Planing Systems, Inc
Emil,. Pantling w 5laa N4re
A-5
Pepe,
Table AA '
Estimated Average Annual Household Expenditures and Associated Employment Generallon - $1,200,000 Unit
Palm Desert Housing Impact Fee, EPS 89141134
Expendkur4 Category/
Business Type
Iper Category llBe. T1
. r,pm Expenditures 2IExPenmllures EPmen1000• b es w.9. ss
20Wagesai I24609.9•l Worker % MN(4] ngl NHrkI] WNrNker mXNmvl C e9ery
Calculation a e c=In�ne•a• d=c•(Infiadon no •fc0o 1
adiu.n.0 p.o/I h I.p/h / k F17/k m=h-1
Foodut Home 36% 100% 59,675 $9,272
Food 8 Beverage Stares 100% '59,675 59,272 59,271,641 985 $541,073 $24213 39 87.5% 152 22 S36,695 LI 80%
Food Away From Home 34% • 100% 59,002 58,626
Food Services and Ghnkng Places 100% 59,002 $6,626 S0,626,138 352 S2453,011 $13,479 182 87 5% 1.52 105 $20,129 VLI
AlcoholcBmerag.. 07% 100% 51,762 51,668
Food 6 Beverage Stores 50% 5881 5044 5080,907 985 $89,412 $24,213 4 87.5% 152 2 $36,698 Li 80%
Food Services aMCMMng Places 50% 6381 5544 $880,907 352 $250,503 $13,479 19 137.5% 1.52 12 520,429 VLI
Housing Maintenance, Nepalis, Insurance, Other expenses 16% 100% $1,344 54,163
Personal and Household Goods Repair end Maintenance [7] 45% 51,955 51,873 31,073,449 372 5503,742 $26,783 19 80.1% 1.52 12 540,593 LI 80%
Buldng Malendald Garden Equipment and Supplies Dealer 45% 51,955 $1,873 51,673,449 8.51 $220,154 528,621 8 87.5% 152 4 $13,385 Med
Real Estate and RenMland Leasing 10% 5434 5416 $416,322 515 $76,283 531,874 2 801% 1,52 2 548,460 Med
Fuel 011 and Other Fuels psi 02S 100% 5407 5465
Nomtae Readers 100% $467 5439 $466,498 831 556,133 528,212 2 87.5% 152 1 542,758 Med
Water and Other Public Services(61 05% 103% $1,363 51,306
Waste Management and 66014'abon Semce, 100% 51,363 $1,308• 51,305,922 459 $284,553 544,275 8 801% 1.52 1 567,105 Above Mad
Household Operations Personal Smokes 08% 100% 52,239 52145
Nursing and Residential Caro Facilities 40% $895 $858 $658,139 232 $370,195 $25,367 15 98,1% 152 9 $38,447 LI 80%
S4814IA5405,0e (7I 60% 51,343 51,287 51,287,208 298 S431,444 523,861 10 98119 1.52 12 538,164 LI 80%
Household Operations Other Household Expenses 1.294 100% 53,267 $3,131 •
Somas to Buldngs end 0we0rp3171 10014 $3,267 $3,131 $3,131,230 264 $1,184,149 525,071 47 98.1% 152 31 537,998 LI 80%
Hausakeeping Supplies 0.7% 100% $1,971 $1,889
Bulddng Materials and Garden Equipment and Supplies Gea4n 10% 5197 5109 $188,004 851 $22199 520,625 1 87,5% 1.52 0 343,385 Med
Food 6 Beverage Stores 35% $690 5661 $661,165 985 $67,108 524,213 3 87.5% 152 2 $36,698 LI80%
General Mechandse 35% $690 $661 S661,165 10.66 S62,009 521,086 3 87.5% 1.52 2 $31,958 LI 60%
Miscellaneous Stare Ret lea 20% $394 5378 5377,009 8.00 $47,241 $17,880 3 57.5% 152 2 527,100 LI 60%
Household Furnishings and Equipment 2.396 100% 56,092 $5,638
Fumble and Hone FMmishings Stars 40% 52,437 $2335 52335,200 609 5338,888 528,248 12 875% 1.52 7 542813 Med
Electronic. and Appliance Stores 40% 52437 $2,335 52335,200 839 $248,689 521,059 12 875% 152 7 531,918 LI 60%
General Merchandise Stares 10% 5609 $584 $583,800 1065 554753 521,008 3 875% 1,52 1 531,958 Li 60%
Miscellaneous Store Retaders 1014 5609 $564 5583,800 600 572999 517,880 1 87.5% 1.52 2 $27,100 LI 60%
Apparel and S.rvlces 20% 100% 55,317 55,095
Clothing and Clothing Accessories Stores 40% $2,127 $2038 52,037,944 849 $240,043 $113,643 11 87.5% 152 0 525,224 VLI
General Merchandse 40% 52,127 52038 $2,037,944 1066 5191,133 $21,086 9 67.5% 152 5 531,958 LI 60%
Miscellaneous More Retaden 10% $532 5509 $509,486 600 583,7013 $17,050 4 07.5% 152 2 $27,100 LI 60%
Personal and Household Goods Repar and Maintenance()] 5% 5266 5255 5254,743 372 568,496 $26,703 3 875% 1.52 1 540,593 LI80%
Dry Cleaning and Laundry Services (7) 6% $266 5255 5254,743 317 $80,464 526,028 3 875% 1,52 2 337,933 LI 80%
Vehicle Purchases (net Outlay) 4.3% 100% 511,301 510,030
Mater MOM. and Parts Ocelots 100% $11,301 510,830 $10,029,797 1242 5072114 $40,388 22 67,5% 152 12 $61,210 Mod
Gasoline end molar ail 23% 100% $5,999 55,740
Gasoline Stations 100% $5,999 55,748 55,748,499 4034 514;409 518,204 8 07.5% 1.52 5 $27,590 LI 60%
Vehicle Maintenance and Repair 1.0% 100% $2,629 $2,520
Repair and 90.5e4476e[7( 10016 $2,629 52,520 $2519,630 355 5710,397 $29,204 24 981% 1.52 16 544,262 Med
Medical Services 0.9% 100% 52,455 52353
Amedatory Heats Care Services 40% $982 5941 $941,132 278 $337,823 $46,132 7 931% 1,52 5 569,919 Above Mod
General Me4cal and Surma. Hospitals (7( 3096 5737 5706 5705,849 263 $268,373 $50,054 5 981% 1.52 3 557,986Abova Mod
Nursing and Residents. Care Fend., 30% 5737 $706 5705,849 232 $304498 $25,367 12 98.1% 152 6 $38,447 LI 80%
Drugs 04% 100% $1,134 51,006
Health and Personal Cane Stores 100% $1,134 51,008 51,006,234 7.11 3152,795 $29,991 5 07.5% 152 3 345,455 Med
Medical Supplies 02% 100% 5422 $404
Health and Personal Care Stores 100% 5422 5404 5404117 7.11 $56,845 529,891 2 87.5% 152 1 545,455 Med
Entenzlnment Fees and Admissions 1.3% 11:0% 53,410 53,268
475, Ededalnmenk 8 Recreation 100% $3,410 53,268 53,258,186 427 5765,662 524001 32 07.5% 152 10 536,377 Li 80%
Audio and Visual Equipment and Services 09% 100% $2,341 $2,243
EOctraas and Appian. Stores 100% 52341 52,243 5224;986 939 $230,869 $21,059 11 875% 1.52 7 531,918 LI 60%
Pelt, Toy; Hobbles, and Playground Equip 07% 10016 $1,831 51,755
Sprang Goods, Hobby, and Musical Instrument Stores 40% $732 $702 5701,916 806 587,051 516,038 5 137.5% 152 3 524,307 VLI
MIs.6aneous Store Retlers 40% 5732 5702 $701,916 0.00 587,768 517,880 5 87.5% 1.52 3 $27,100 LI 60%
Veterinary Salvias NI 20% $366 $351 5350,950 281 5124,737 534148 4 95.1% 152 2 $51,755 Med
Other Entertainment Supplies, Equipment and Services 08% 100% 52,100 $2,012
Sporting Gals, Hobby, and Mud.IlnstrunenIStorea 05% 51,785 $1,711 $1,710,582 806 5212144 $16,038 13 87.5% 1.52 8 524,307 VLI
76340908710 Services [71 15% 5315 5302 5301,887 455 568,283 322,554 3 901% 152 2 534,183 LI 80%
Personal Can Products and S.rvices 0.7% 100% $1,940 $1,859
Unspent -Jed Retau 50% 5970 5930 $929,605 800 5116,238 517,682 7 87,5% 152 1 527,100 LI 60%
Personal Care Services(71 50% $970 5933 $929,605 2.99 $310,482 516,434 18 98.1% 1.52 12 524,954 VLI
Reading 01% 100% $386 5370
Slddng Goods, Hoety, and Musk. lnsbument Sons 100% $306 5370 5370,215 8.06 545,914 5113,038 3 98,1% 152 2 524,307 VLI
Education 2.5% 100% $6,569 $6,295
E440394ral Semmes 100% 55,569 56,295 56,295,006 319 $1,972,716 $15,973 124 87.516 1.52 71 524,209 VLI
Miscellaneous 09% 100% 52375 52278
AmsntIng 70 20% 5475 5455 3155,106 1.98 5229,649 533,561 7 98.1% 1.52 4 $50,871 Med
Architectural, Engineering, and Related(7,63 20% 5475 5455 5455,106 280 5162304 574,995 2 88,1% 152 1 5113,684Above Mod
4039.1e. [Marge 9004008 n 5475 5455 5455,106 372 5122493 353,888 2 881% 152 1 561,673 Above Mod
Death Care 5e6i9e5[7( 20% 5475 $455 $455,106 3.47 $130,979 536,853 4 98.114 152 2 556,052 Mod
Leg. Services NI 20% 5475 $455 $455,106 276 $164,503 585,734 2 1961% 1.52 3 5129,940 Above Mod
Total per 1,000 Market Rate Households 759 456
Per Table 4, the purchase of a 51,200,000 Ur. requires a household Income or F285,1W
111 Percent of income spent per category is eased on the 2013 Consumer Expemdue Survey data for households at 3,, Income level No. that the sum or the cab:gorka included inW ananes is well below total expndnuea of households alWa
Inane level, and Mud represents conserve. esbmatonofpbcreaban and housing impacts. Expe,deue categories not Incorporated dote data wns.Inle Maxie taxes, housing and Iodgn9. most Milne., lobecm, beaid insurance, WSW..
Imursnce, cash mntrnbMon., and financing charges.
[312013 expend5re converted to 2007 dollars using the Cansuner Price Index from the Bueau of Labor Stabs.
(41 BLS data bdkates that 125%of retail/restaurant workers are ago 16.19, bur an average olordy 19%of workers In otter industries EPS has assumed that such yang workers do no roam theumm housMOMs
(51 Based on2010 Census data for CM of Palm Desert, calculated as tire nun5er o/'iaborforce ONMed Byrne number of Mouser.. with eaMngs-
(6(Part of Ms Ubl0os, Fuels, and Public Semmes category, which also Mcluhs natural gas electricity, and telephone services Natural gss, electrk9y, and Mlephnme smokes not esMated becausedata was not evadable intim 2007 Economic Census.
pl Rrvesde County data not wadable from 2007 Economic Census Gram receipts to wages and 20n7 average wage duo based on Malawi. data
(81Note Mat average salary reported for archkcWI, nglneerMg and relakd IMusmes reacts Its lull range of employees within the Industry, not solelygofessbnal end fechitcal stag
Sane' 2013 Concul7e1&po,ddura Survey, U S Bureau albabor 5tabsiks; 2007 Ewnam3CCensud, U.S. Cemu3 Bucau, Census 2010; Emn4mc 6 Planning Systems, Inc.
A-6
mason. 4Pommo Speed Ma 76¢015
Table A-7
Representative Government Employment and Wages, 2010 [1]
Palm Desert Housing Impact Fee, EPS #141134
Govt.
2013 Govt Govt. Empl/ Govt. Employee
Employment 2013 MSA 1,000 Employee 2013 Avg. HH Income 2013 Income
Item [2] Total HH [3] County HH HH [4] Wage [2] [4] Category [5]
Protective Service Occupations 33,990 1,297,675 26 17.3 $49,516 $83,715 Above Mod
Preschool Teachers, Except Special
Education 3,170 1,297,675 2 1.6 $30,837 $52,135 Med
Kindergarten Teachers, Except Special
Education 2,250 1,297,675 2 1.1 $68,240 $115,372 Above Mod
Elementary School Teachers, Except
Special Education 17;170 1,297,675 13 8.7 $73,835 $124,831 Above Mod
Middle School Teachers, Except Special
and Vocational Education 5,170 1,297,675 4 2.6 $75,221 $127,174 Above Mod
Secondary School Teachers, Except
Special and Vocational Education 6,370 1,297,675 5 3.2 $70,952 $119,957 Above Mod
Special Education Teachers, Preschool,
Kindergarten, and Elementary -School 2,280 1,297,675 2 1.2 $79,187 $133,879 Above Mod
Special Education Teachers, Middle School- 640 1,297,675 0 0.3 $69,495 $117,493 Above Mod
Special Education Teachers, Secondary
School 930 1,297,675 1 0.5 $68,281 $115,441 Above Mod
Teachers and Instructors, All Other 2,610 1,297,675 2 1.3 $58,528 $98,952 Above Mod
Bus Drivers, Transit and Intercity 1,020 1,297,675 1 0.5 $39,593 $66,939 Mod
Bus Drivers, School J4,710 1,297,675 4 2.4 $34,959 $59,104 Mod
Total
62 40.8
[1] Not a comprehensive list of government employment. Rather a sampling of govemment jobs for which employment is likely to be directly affected by
increases in local population.
[2] Govemment employment and wages based on 2013 Occupational Employment Statistics data for Riverside -San Bernardino -Ontario MSA.
[3] Riverside -San Bemardino-Ontario MSA figure from 2013 ACS Census data.
[4] Assumes 1.52 workers per working household per 2009-2013 Census data.
[5] See Table 4.
Sources: 2013 Occupational Employment Statistics, CA Employment Development Department; US Census; Economic & Planning Systems, Inc.
Economic 8 Planning Systems, Inc. 2/52015 P:1141000s1141134PalmDesertlMode11141134forsalemodel020515.xisx
APPENDIX B:
Income Levels for Worker Households
Table B-1: 'Household Generation per 1;000 Market'Rate Units -
. $200,000 Unit • B-1
Table B-2 Household Generation per 1,000 Market•RateUnits -
$400,000 Unit' • B-2
•Table B-3 Household Generation per 1,000 Market Rate Units -
$600,000 Unit B-3
Table,B-4;:_ Household_ Generation per 1,000 Market Rate Units -
$800;000 Unit B-4:
Table -5 Household Generation tion per 1,000 Market Rate Units -
$1,000,000 Unit B-5
Table B-6 .Household Generation per 1,000 Market. Rate Units -
$1,200,000 Unit • B-6
Table B-1
Household Generation per 1,000 Market Rate Units - $200,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total Above
Employees HH [1] Very LowLow (60%)Low (80%; Med Mod Mod
Retail
Unspecified Retail 2 1 0 1 0 0 0 0
Food & Beverage Stores 17 10 0 0 10 0 0 0
Food Services and Drinking Places 54 32 32 0 0 0 0 0
Health and Personal Care Stores 2 2 0 0 0 2 0 0
General Merchandise 3 2 0 2 0 0 0 0
Fumiture and Home Furnishings Stores 3 2 0 0 0 2 0 0
Building Material and Garden Equipment and Supplies Dealer 2 1 0 0 0 1 0 0
Electronics and Appliance Stores 7 4 0 4. 0 0 0 0
Clothing and Clothing Accessories Stores 4 2 2 0 0 0 0 0
Motor Vehicle and Parts Dealers 6 3 0 0 0 0 3 0
Gasoline Stations 4 2 0 2 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 4 2 2 0 0 0 0 0
Miscellaneous Store Retailers 4 2 0 2 0 0 0 0
Nonstore Retailers 1 0 0 0 0 0 0 0
Arts, Entertainment, & Recreation 4 2 0 0 2 0 0 0
Medical/Health
Ambulatory Health Care Services 2 2 0 0 0 0 0 2
General Medical. and Surgical Hospitals 2 1 0 0 0 0 0 1
Nursing and Residential Care Facilities 6 4 0 0 4 0 0 0
Social Assistance 2 1 0 0 1 0 0 0
Services
Personal and Household Goods Repair and Maintenance 5 3 0 0 3 0 0 0
Services to Buildings and Dwellings 10 7 0 0 7 0 0 0
Waste Management and Remediation Services 2 1 0 0 0 0 0 1
Real Estate and Rental and Leasing 1 0 0 0 0 0 0 0
Personal Care Services 5 3 3 0 0 0 0 0
Dry Cleaning and Laundry Services 1 0 0 0 0 0 0 0
Auto Repair and Maintenance 7 5 0 0 0 5 0 0
Veterinary Services 1 1 0 0 0 1 0 0
Photographic Services 0 0 0 0 0 0 0 0
Educational Services 14 8 8 0 0 0 0 0
Accounting 2 1 0 0 0 1 0 0
Architectural, Engineering, and Related 1 0 0 0 0 0 0 0
Specialized Design Services 1 0 0 0 0 0 0 0
Death Care Services 1 1 0 0 0 0 1 0
Legal Services 0 0 0 0 0 0 0 0
Government 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000(Market-Rate Units
Total Income -Qualified HH Generated Per 100 Market -Rate Units
241 148 48 12 27 13 7 41
4.8 1 3 1 1 4
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount
for other industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015
B-1
P:1141000s1141134PaImDesertwodnA141134forsalemode1020515xfsx
Table B-2
Household Generation per 1,000 Market Rate Units - $400,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total Above
Employees HH [1] Very Low Low (60%)Low (80%) Med Mod Mod
Retail
Unspecified Retail 3 2 0 2 0 0 0 0
Food & Beverage Stores 26 15 0 0 15 0 0 0
Food Services and Drinking Places 91 53 53 0 0 0 0 0
Health and Personal Care Stores 4 2 0 0 0 2 0 0
General Merchandise 7 4 0 4 0 0 0 0
Fumiture and Home Fumishings Stores 5 3 0 0 0 3 0 0
Building Material and Garden Equipment and Supplies Dealer 4 2 0 0 0 2 0 0
Electronics and Appliance Stores 11 7 0 7 0 0 0 0
Clothing and Clothing Accessories Stores 7 4 4 0 0 0 0 0
Motor Vehicle and Parts Dealers 10 6 0 0 0 0 6 0
Gasoline Stations 5 3 0 3 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 7 4 4 0 0 0 0 0
Miscellaneous Store Retailers 8 5 0 5 0 0 0 0
Nonstore Retailers 1 0 0 0 0 0 0 0
Arts, Entertainment, & Recreation 7 4 0 0 4 0 0 0
Medical/Health
Ambulatory Health Care Services 4 2 0 0 0 0 0 2
General Medical and Surgical Hospitals 2 2 0 0 0 0 0 2
Nursing and Residential Care Facilities 10 , 6 0 0 6 0 0 0
Social Assistance 4 3 0 0 3 0 0 0
Services
Personal and Household Goods Repair and Maintenance 10 6 0 0 6 0 0 0
Services to Buildings and Dwellings 16 10 0 0 10 0 0 0
Waste Management and Remediation Services 4 2 0 0 0 0 0 2
Real Estate and Rental and Leasing 1 1 0 0 0 1 0 0
Personal Care Services 9 6 6 0 0 0 0 0
Dry Cleaning and Laundry Services 2 1 0 0 1 0 0 0
Auto Repair and Maintenance 12 8 0 0 0 8 0 0
Veterinary Services 2 1 0 0 0 1 0 0
Photographic Services 1 0 0 0 0 0 0 0
Educational Services 27 15 15 0 0 0 0 0
Accounting 3 2 0 0 0 2 0 0
Architectural, Engineering, and Related 1 1 0 0 0 1 0 0 1
Specialized Design Services 1 1 0 0 0 0 0 1
Death Care Services 2 1 0 0 0 0 1 0
Legal Services 1 1 0 0 0 0 0 1
Government 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units
Total Income -Qualified HH Generated Per 100 Market -Rate Units
369 224 83 20 46 21 10 44
8 2 5 2 1 4
[1 ] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for
other industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015
B-2
P.1141000s1141134PalmDesettWode11141134Porsalemode/020515xlsx
Table B-3
Household Generation per 1,000 Market Rate Units - $600,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total Above
Employees HH [1] Very Low Low (60%) Low (80%) Med Mod Mod
Retail
Unspecified Retail ' 5 3 0 3 0 0 0 0
Food & Beverage Stores 33 19 0 0 19 0 0 0
Food Services and Drinking Places 130 76 76 0 0 0 0 0
Health and Personal Care Stores 5 3 0 0 0 3 0 0
General Merchandise 9 5 0 5 0 0 0 0
Furniture and Home Furnishings Stores 7 4 0 0 0 4 0 0
Building Material and Garden Equipment and Supplies Dealer 5 3 0 0 0 3 0 0
Electronics and Appliance Stores 15 9 0 9 0 0 0 0
Clothing and Clothing Accessories Stores 9 5 5 0 0 0 0 0
Motor Vehicle and Parts Dealers 15 9 0 0 0 0 9 0
Gasoline Stations 6 4 0 4 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 10 6 6 0 0 0 0 0
Miscellaneous Store Retailers 9 5 0 5 0 0 0 0
Nonstore Retailers 1 1 0 0 0 1 0 0
Arts, Entertainment, & Recreation 16 9 0 0 9 0 0 0
Medical/Health
Ambulatory Health Care Services 5 3 0 0 0 0 0 3
General Medical and Surgical Hospitals 3 2 0 0 0 0 0 2
Nursing and Residential Care Facilities 15 10 0 0 10 0 0 0
Social Assistance 8 5 0 0 5 0 0 0
Services
Personal and Household Goods Repair and Maintenance 14 9 0 0 9 0 0 0
Services to Buildings and Dwellings 22 14 0 0 14 0 0 0
Waste Management and Remediation Services 4 3 0 0 0 0 0 3
Real Estate and Rental and Leasing 2 1 0 0 0 1 0 0
Personal Care Services 13 9 9 0 0 0 0 0
Dry Cleaning and Laundry Services 2 1 0 0 1 0 0 0
Auto Repair and Maintenance 16 11 0 0 0 11 0 0
Veterinary Services 2 1 0 0 0 1 0 0
Photographic Services 1 1 0 0 1 0 0 0
Educational Services 47 27 27 0 0 0 0 0
Accounting 4 3 0 0 0 3 0 0
Architectural, Engineering, and Related 1 1 0 0 0 0 0 1
Specialized Design Services 1 1 0 0 0 0 0 1
Death Care Services 2 1 0 0 0 0 1 0
Legal Services 1 1 0 0 0 0 0 1
Government 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units
Total Income -Qualified HH Generated Per 100 Market -Rate Units
501 304 123 25 68 28 13 47
12 3 7 3 1 5
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for
other industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc 2/52015
B-3
P.1141000s1141134PaImDeser0Mode11141134rorsalemode1020515.ydsx
Table B-4
Household Generation per 1,000 Market Rate Units - $800,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Total Above
Industry Employees HH [1] Very Low Low (60%)Low (80%) Med Mod Mod
Retail
Unspecified Retail 4 3 0 3 0 0 0 0
Food & Beverage Stores 31 18 0 0 18 0 0 0
Food Services and Drinking Places 136 79 79 0 0 0 0 0
Health and Personal Care Stores 5 3 0 0 0 3 0 0
General Merchandise 10 6 0 6 0 0 0 0
Furniture and Home Fumishings Stores 8 5 0 0 0 5 0 0
Building Material and Garden Equipment and Supplies Dealer 6 3 0 0 0 3 0 0
Electronics and Appliance Stores 16 9 0 9 0 0 0 0
Clothing and Clothing Accessories Stores 10. 6 6 0 0 0 0 0
Motor Vehicle and Parts Dealers 15 8 0 0 0 0 8 0
Gasoline Stations 5 3 0 3 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 15 9 9. 0 0' 0 0 0
Miscellaneous Store Retailers 11 6 0 6 0 0 0 0
Nonstore Retailers 1 1 0 0 0 1 0 0
Arts, Entertainment, & Recreation 22 12 0 0 12 0 0 0
Medical/Health
Ambulatory Health Care Services 5 3 0 0 0 0 0 3
General Medical and Surgical Hospitals 3 2 0 0 0 0 0 2
Nursing and Residential Care Facilities 18 12 0 0 12 0 0 0
Social Assistance 12 8 0 0 8 0 0 0
Services
Personal and Household Goods Repair and Maintenance 14 9 0 0 9 0 0 0
Services to Buildings and Dwellings 32 21 0 0 21 0 0 0
Waste Management and Remediation Services 4 3 0 0 0 0 0 3
Real Estate and Rental and Leasing 2 1 0 0 0 1 0 0
Personal Care Services 13 8 8 0 0 0 0 0
Dry Cleaning and Laundry Services 2 1 0 0 1 0 0 0
Auto Repair and Maintenance 16 11 0 0 0 11 0 0
Veterinary Services 2 2 0 0 0 2 0 0
Photographic Services 2 1 0 0 1 .0 0 0
Educational Services 83 48 48 0 0 0 0 0
Accounting 5 3 0 0 0 3 0 0
Architectural, Engineering, and Related 1 1 0 0 0 0 0 1
Specialized Design Services 2 1 0 0 0 0 0 1
Death Care Services 2 2 0 0 0 0 2 0
Legal Services 1 1 0 0 0 0 0 1
Government 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units 576 348 150 27 82 29 13 47
Total Income -Qualified HH Generated Per 100 Market -Rate Units 15 3 8 3 1 5
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for
other industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015
B-4
P:1141000s1141134PalmDosertWModel1141134forsa/emode/020515.xisx
Table B-5
Household Generation per 1,000 Market Rate Units - $1,000,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total
Employees • HH [1] Very Low Low (60%) Low (80%) Med Mod Above Mod
Retail
Unspecified Retail 5 3 0 3 0 0 0 0
Food & Beverage Stores 38 22 0 0 22 0 0 0
Food Services and Drinking Places 168 98 98 0 0 0 0 0
Health and Personal Care Stores 6 3 0 0 0 3 0 0
General Merchandise 12 7 0 7 0 0 0 0
Furniture and Home Fumishings Stores 10 6 0 0 0 6 0 0
Building Material and Garden Equipment and Supplies Dealer 7 4 0 0 0 4 0 0
Electronics and Appliance Stores 19 11 0 11 0 0 , 0 0
Clothing and Clothing Accessories Stores 12 7 7 0 0 0 0 0
Motor Vehicle and Parts Dealers 18 - 10 0 0 0 0 10 0
Gasoline Stations 7 4 0 4 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 18 11 11 0 0 0 0 0
Miscellaneous Store Retailers 13 7 0 7 . 0 0 0 0
Nonstore Retailers 2 1 0 0 0 1 0 0
Arts, Entertainment, & Recreation 27 15 0 0 15 0 0 0
Medical/Health
Ambulatory Health Care Services 6 4 0 0 0 0 0 4
General Medical and Surgical Hospitals 4 3 0 0 0 0 0 3
Nursing and Residential Care Facilities 22 14 0 0 14 0 0 0
Social Assistance 15 10 0 0 10 0 0 0
Services
Personal and Household Goods Repair and Maintenance 18 11 0 0 11 0 0 0
Services to Buildings and Dwellings 40 26 0 0 26 0 0 0
Waste Management and Remediation Services 5 3 0 0 0 0 0 3
Real Estate and Rental and Leasing 2 1 0 0 0 1 0 0
Personal Care Services 16 10 10 0 0 0 0 0
Dry Cleaning and Laundry Services 3 2 0 0 2 0 0 0
Auto Repair and Maintenance 20 13 0 0 0 13 0 0
Veterinary Services 3 2 0 0 0 2 0 0
Photographic Services 2 2 0 0 2 0 0 0
Educational Services 103 60 60 0 0 0 0 0
Accounting 6 4 0 0 0 4 0 0
Architectural, Engineering, and Related 2 1 0 0 0 0 0 1
Specialized Design Services 2 1 0 0 0 0 0 1
Death Care Services 3 2 0 0 0 0 2 0
Legal Services 2 1 0 0 0 0 0 1
Govemment 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units
Total Income -Qualified HH Generated Per 100 Market -Rate Units
698 421 186 33 102 36 15 50
19 3 10 4 2 5
[1] Assumes 1.69 workers per worker household based an the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for other industries
to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc 2/52015
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Table B-6
Household Generation per 1,000 Market Rate Units - $1,200,000 Unit
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total
Employees HH [1] Very Low Low (60%) Low (80%) Med Mod Above Mod
Retail
Unspecified Retail 7 4 0 4 0• 0 0 0
Food & Beverage Stores 45 26 0 0 26 0 0 0
Food Services and Drinking Places 201 117 117 0 0 0 0 0
Health and Personal Care Stores 7 4 0 0 0 4 0 0
General Merchandise 15 8 0 8 0 0 0 0
Fumiture and Home Fumishings Stores 12 7 0 0 0 7 0 0
Building Material and Garden Equipment and Supplies Dealer 8 5 0 0 0 5 0 0
Electronics and Appliance Stores 23 13 0 13 0 0 0 0
Clothing and Clothing Accessories Stores 14 8 8 0 0 0 0 0
Motor Vehicle and -Parts Dealers 22 12 0 0 0 0 12 0
Gasoline Stations 8 5 0 5 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 22 13 13 0 0 0 0 0
Miscellaneous Store Retailers 15 9 0 9 0 0 0 0
Nonstore Retailers 2 1 0 0 0 1 0 0
Arts, Entertainment, & Recreation
32 18 0 0 18 0 0 0
Medical/Health
Ambulatory Health Care Services 7 5 0 0 0 0 0 5
General Medical and Surgical Hospitals 5 3 0 0 0 0 0 3
Nursing and Residential Care Facilities 27 17 0 0 17 0 0 0
Social Assistance 18 12 0 0 12 0 0 0
Services
Personal and Household Goods Repair and Maintenance 21
Services to Buildings and Dwellings 47
Waste Management and Remediation Services 6
Real Estate and Rental and Leasing 2
Personal Care Services 19
Dry Cleaning and Laundry Services 3
Auto Repair and Maintenance 24
Veterinary Services 4
Photographic Services 3
Educational Services 124
Accounting 7
Architectural, Engineering, and Related 2
Specialized Design Services 2
Death Care Services 4
Legal Services 2
Govemment
Total HH Generated Per 1,000 Market -Rate Units
Total Income -Qualified HH Generated Per 100 Market -Rate Units
14 0, 0 14 0 0 0
31 0 0 31 0 0 0
4 0 0 0 0 0 4
2 0 0 0 2 0 0
12 12 0 0 0 0 0
2 0 0 2 0 0 0
16 0 0 0 16 0 0
2 0 0 0 2 0 0
2 0 0 2 0 0 0
71 71 0 .0 0 0 0
4 0 0 0 4 0 0
1 1 0 0 0 0 0 1
1 - 0 0 0 0 0 1
2 0 0 0 0 2 0
3 0 0 0 0 0 3
62 41 0 0 0 2 3 36
821 496 , 222 39 122 43 18 54
22 4 12 4 2 5
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for other Industrie:
to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
ti
Economic & Planning Systems, Inc. 2/52015
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The.Econoinics,;of Lund Use
Economic& Planning Systems, Inc.
One Kaiser Plaza, Suite 1410
Oakland, CA 94612 :
510.841 9190 tel
510 740 2080 fax
Oakland
Sacramento
Denver
Los Angeles
Report
Nexus -Based Affordable Housing
Fee Analysis for Rental Housing
Prepared for:
City of Palm Desert
Prepared by:
Economic & Planning. Systems, Inc.
February.6, 2015
EPS #141134
www.epsys.com
Table of Contents
EXECUTIVE SUMMARY 1
1. AFFORDABILITY GAP ANALYSIS 7
Product Type 7
Development Cost Assumptions 9
Revenue Assumptions 9
Affordability Gap Results 10
2. DEMAND -BASED NEXUS FEE CALCULATION 11
Market -Rate Household Income Levels 11
Household Expenditures and Job Creation by Income Level 11
Demand for Public -Sector Workers 15
Combined Demand .for Income -Qualified Workers 16
Fee Calculation 16
APPENDIX A: Household Expenditures and Employment Generation
APPENDIX B: Income Levels for Worker Households
List of Figures and Tables
Figure 1 Illustration of Nexus -Based Housing Fee Methodology 2
Table 1 Summary of Housing Impact Fees or Unit Equivalents per Market -Rate Unit 6
Table 2 Financing Gap Analysis -- Rental Product Type 8
Table 3 Required Income by Unit Type- Market -Rate Rental Apartments 12
Table 4 HUD Income Limits 17
Table 5 Maximum Impact Fee Calculations -- Studio 18
Table 6 Maximum Impact Fee Calculations -- 1 Bedroom 19
Table 7 Maximum Impact Fee Calculations -- 2 Bedroom 20
Table 8 Maximum Impact Fee Calculations -- 3 Bedroom 21
EXECUTIVE SUMMARY
Economic & Planning Systems, Inc. (EPS) was retained by the City of Palm Desert (City) to
conduct a nexus study analyzing the impact that development of market -rate rental housing has
on the demand for below -market -rate housing and, based on the results, to determine the
defensible nexus -based fee that could be charged to market -rate development.
The technical approach used herein quantifies the impacts that the introduction of market -rate
rental apartments have on the local economy and the demand for additional affordable housing.
As new households are added to the community, local employment also will grow to provide the
goods and services required by the new households. To the extent that these new jobs do not
pay adequate wages for the employees to afford market -rate housing in the community, the new
households' spending is creating a need for affordable housing. , A nexus -based affordable
housing fee is therefore based on the impact of the new market -rate homes on the demand for
affordable housing. The fee calculated in this study represents the maximum fee that may be
charged to new market -rate housing units to mitigate their impacts on the affordable housing
supply. Such fees are then used by the City to subsidize the production of new affordable units
for Tower -income households not accommodated by market -rate projects.
Calculating the impact of market -rate development in the City on affordable housing needs, and
the fees needed to mitigate those impacts, involves three main analytical steps:
• Step #1. Estimate the typical subsidy required to construct units affordable at various
income levels (the "affordability gap"). The analysis focuses on very -low, low-, and median -
income households.
• Step #2. Determine the market -rate households' demand for goods and services, the jobs
created by that demand, and the affordable housing needs of workers in those jobs.
• Step #3. Combine the affordability gap with the affordable housing demand projections to
compute the maximum supportable nexus -based affordable housing fees per market -rate
unit.
These technical steps are illustrated in Figure 1 and detailed in the body of this Report and the
attached Technical Appendices. The findings regarding each of these steps are presented below.
Economic & Planning Systems, Inc. 1
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Figure 1
Illustration of Nexus -Based Housing Fee Methodology
Step #1
Affordability Gap Analysis
(Subsidy Required to Construct
Affordable Units)
Step #2
Affordable Housing Demand
(Generated by Market Rate Housing)
Step #3
Compute Impact Fee
per Market Rate Unit
Economic & Planning Systems, Inc. 2/5/2015
Affordable
Unit Value
by Income
minus
Development
Costs
equals
Required Household
Market Rate Household
Unit Rents —I" Income Expenditures
Level by Category
Affordability
Gap
p Demand for
Affordability multiplied Affordable Units for
Gap by Workers
(Subsidy Required) (per market rate unit)
If negative
If positive
Subsidy
Required
No Subsidy
Required
Total Workers to
Provide Goods and Total Demand for
Services by Affordable Units for
Expenditure Category Workers
equals
Maximum
Supportable Nexus -
Based Housing Fee
(per market rate unit)
viutooant+1134iWD.,.MMo MM4l134reKrroem020515uu
Nexus -Based Affordable Housing Fee Analysis for Rental Housing
02/06/15
1. The costs to construct affordable housing units affordable to many households
exceed those units' values based on the. rents or prices that the households can
afford to pay. The subsidy required to construct affordable housing units in Palm
Desert ranges from roughly $58,000 for a Median Income household to $164,000
for a Very Low Income (VLI) household. Moderate Income households do not
appear to require subsidies, as affordable prices for such households appear able to
support the costs of construction.
An "affordability gap analysis" evaluates whether or not the costs to construct affordable
units exceed the values of units that are affordable to lower- and moderate -income
households. For each affordable housing income level (Very Low Income [VLI], Low Income
[LI], Median Income, and Moderate Income) this analysis estimates the subsidy required to
construct affordable housing units.
The affordability gap analysis assumes that the average affordable unit for all income levels
will be a 2-bedroom unit in a multifamily development. The estimated costs to construct the
prototypical affordable unit are based on published data sources (RS Means Cost Estimator)
indexed to Coachella Valley labor and materials costs, and have been vetted with developers
active in Coachella Valley. The costs of land acquisition are included in these development
cost calculations, and have been based on recent appraisals for residential land in Palm
Desert. For units that are eligible for non-competitive Low Income Housing Tax Credits
(4 percent tax credits), the value of those tax credits is deducted from the development
costs.
A household's ability to pay is estimated based on standard percentages of income available
for housing costs at each household income level. Income available for housing costs is then
converted into a monthly affordable rent and a capitalized unit value or an affordable
mortgage payment and supportable home price. This unit value is then compared to the
costs of development to determine the subsidy, if any, required to make the unit affordable
to each income level.
2. The demand for affordable housing generated by the expenditures of new
households in Palm Desert increases along with the market -rate rent price (and
related renter income). For example, a one -bedroom unit that rents for $1,200 per
month is estimated to create demand for 0.109 affordable housing units requiring
development subsidy, while a 3-bedroom unit that rents for $1,900 per month
creates demand'for 0.156 affordable units.
A justified nexus fee is based on the total demand for affordable housing units generated by
construction of market -rate units. The link (or nexus) between market -rate housing and
increased demand for affordable housing is that residents of market -rate units demand goods
and services that rely on many wage earners (for example, retail sales clerks) who typically
cannot afford market -rate housing and thus requireaffordable housing.
Because more expensive housing units require renters to have higher incomes, and higher
income households create more jobs through their spending, the nexus impacts and thus the
justified fees for rental units vary according to the rental price range of the market -rate
units. Typically, larger apartments (i.e., more bedrooms) command higher rents, so their
occupants are required to have higher household incomes than renters of smaller units.
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Nexus -Based Affordable Housing Fee Analysis for Rental Housing
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Thus, larger units create more jobs as a result of their occupants' spending. Nexus impacts
and the justified fees for market -rate rental apartments, therefore, vary based on unit size.
This analysis evaluates the demand for affordable housing generated by a range of for -rent
unit sizes. For each unit size, the demand -based nexus fee calculation involves the following
steps:
A. Market -Rate Household Income Levels. The required income levels of households
occupying new market -rate housing are derived based on the rental rate, assuming
standard housing cost expenses as a proportion of overall household income. For
example, a typical household renting a recently constructed market -rate two -bedroom
unit for around $1,400 per month would have an annual income of roughly $64,000, if
they spent 30 percent of their income on housing costs (rent and utilities).
B. Household Expenditures. Based on the household income computed in Step A,
Consumer Expenditure Survey data was used to evaluate the spending patterns of the
household. This analysis provides an estimate of how much the household spends on
specific categories of expenditures, such as "Food at Home." As the households' income
increases along with the price and size of the market -rate units, the total spending on
goods and services also increases. The Consumer Expenditure Survey also indicates that
these relationships are not linear (e.g., a household with twice the income does not
necessarily spend twice as much on food).—
C. Job Creation and Worker Households. Having estimated the households' spending on
various items, that spending is then converted into,an estimation of jobs created. For
each expenditure category, data regarding average worker wages and the ratio between
gross business receipts and wages were used to translate these household expenditures
into the total number of private -sector workers. For selected public -sector jobs that
typically grow in proportion to the local population size (e.g., teachers), the demand for
new workers was estimated by relating current levels of employment in such categories
to the current population and applying this ratio to future development. Because each
new worker does not represent an independent household (Palm Desert has an average
of 1.52 workers per working household), the total number of new households created is
somewhat less than the number of new jobs created. EPS has further adjusted the
household formation rates to reflect the expectation that a certain proportion of workers
will not form their own households, particularly those of younger ages.1
D. Worker Households by Income Category. Each worker household generated is
assigned to an income category —Very Low Income (VLI), Low Income (LI), Median,
Moderate, and Above Moderate —based on its estimated gross wages. This provides the
total number of households generated at each income level by construction of market -
rate units at various price points. The results indicate that residents of lower -priced units
generate fewer worker households requiring affordable housing than do residents of
higher -priced units.
1 BLS data indicates that 12.5 percent of retail/restaurant workers are age 16-19, but an average of
only 1.9 percent of workers in other industries. EPS has assumed that such young workers do not
form their own households.
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Nexus -Based Affordable Housing Fee Analysis for Rental Housing
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These steps of the nexus -based fee calculation provide the total number of income -qualified
workers required to meet the needs for goods and services generated •by market -rate
housing. The number of workers servicing market -rate housing (at each unit size) is then
converted to total income qualified households requiring affordable housing subsidy, and
each such household is assumed to require one housing unit.
3. This analysis calculates the fees that could be charged to fully mitigate the impact
that new market -rate housing has on Palm Desert's affordable housing demand at
various representative unit sizes. These fees could range from roughly $12,000 for
studio apartments to $21,000 for 3-bedroom apartments.
The nexus fee is calculated by applying the number of affordable units needed by income
qualified households to the affordability gap for each housing income category. This
calculation is, made for several different apartment sizes. Table 1 summarizes the maximum
nexus -based fees calculated for representative rental unit sizes. The City may also consider
whether to allow developers to provide affordable units within their projects, rather than
paying the nexus -based fee. Table 1 illustrates the proportions of affordable units that
correspond to the, fee calculation and demands created by the market -rate units. For
instance, a project offering only two -bedroom units would effectively mitigate the demand
being created by .the market -rate units if it provided 0.117 affordable units (very -low, low,
and median income) for each market -rate unit. Please note that these maximum fees are
based on, the nexus relationship of affordable housing demand created by new market -rate
units; EPS recommends that the City consider the feasibility impact of imposing fees while
setting any fee on rental housing.
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Table 1
Summary of Housing Impact Fees or Unit Equivalents per Market -Rate Unit
Palm Desert Housing Impact Fee, EPS #141134
Market -Rate Maximum Affordable Units Generated/100 Market -Rate Units
Unit Size Impact Fee Total Low (50%) Low (60%) Low (80%) Med (100%)
Studio $12,123 9.2 4.1 1.1 2.6 1.3
1 Bedroom $14,650 10.9 5.2 1.3 3.0 1.4
2 Bedroom $15,772 11.7 5.7 1.4 3.2 1.5
3 Bedroom $20,969 15.6 7.6 1.8 4.2 1.9
Source: Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015 P:1141000s1141134PalmDesert1Model1141134rentmodel020515.xlsx
1. AFFORDABILITY GAP ANALYSIS
For any nexus -based affordable housing fee calculation, it is necessary to estimate the subsidy
required to construct affordable housing units. Table 2 shows the subsidy needed to produce
multifamily housing that is affordable to very low-, low-, median- and moderate -income
households.
Product Type
This analysis assumes that new lower -income worker households would be housed in multifamily
developments in Palm Desert. Developable residential land in Palm Desert is assumed to be
approximately $200,000 per acre, based on an appraisal provided to the City by Lidgard and
Associates. EPS has assumed that these projects will have an average density of 20 units per
acre, and be built in wood -frame buildings of two to three stories with surface parking.
In order to determine the average household size of future affordable housing units, EPS used
two estimates from the Census Bureau. The American Community Survey indicates that the
average household size in Palm Desert is 2.05 people while the average .family size is 2.75
people. The household size figure is significantly skewed by the high population of retirement -
age people in Palm Desert, where 46.1 percent of all households have one or more members
over age 65 (vs. only 24.9 percent statewide). The average family size is considered more
representative of worker households in Palm Desert, so the average household size for future
workers is assumed to round up to three people and EPS uses this assumption to determine the
applicable income limits for the new units.
California State law (California Health and Safety Code Section 50052.5) assumes that a 2-
bedroom unit is occupied by a 3-person household, and this assumption is used in this analysis.
An affordable 2-bedroom unit in Palm Desert is assumed to have a gross size of about 1,200
square feet (accounting for shared lobbies, hallways, etc.) and a net size of 1,000 square feet —
both somewhat smaller than recently constructed market rate units, but similar to recent
affordable housing developments.
This analysis assumes that all new affordable housing would be rental units, rather than for -sale
units. This assumption reflects the fact that many households at lower incomes will not have
adequate wealth reserves for down payments on homeownership units, and may have further
difficulty absorbing the ongoing costs of homeownership (taxes, repairs, etc.) that they can
effectively avoid by renting their homes rather than buying.
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Table 2
Financing Gap Analysis -- Rental Product Type
Palm Desert Housing Impact Fee, EPS #141134 •
Item
Development Program Assumptions
2 Stories Multifamily With Surface Parking •
Very Low Low Low Median Moderate
Income Income Income Income Income
(50% AMI) (60% AMI) (80% AMI) (100% AMI) (120% AMI)
Density/Acre 20 20 20 20 20
Average Gross Unit Size 1,200 1,200 1,200 1,200 1,200
Average Net Unit Size 1,000 1,000 1,000 1,000 1,000
Average Number of Bedrooms 2 2 2 2 2
Average Number of Persons per Household 3 3 3 3 3
Parking Spaces/Unit 2.0 2.0 2.0 2.0 2.0
Cost Assumptions [1]
Land/Acre [2] $200,000 $200,000 • $200,000 $200,000 $200,000
Land/Unit $10,000 $10,000 $10,000 $10,000 $10,000
Direct Construction Costs/Gross SF [3] $150 $150 $115 $115 $115
Direct Construction Costs/Unit $180,000 $180,000 $138,000 $138,000 $138,000
Parking Construction Costs/Space $2,500 $2,500 $2,500 $2,500 $2,500
Parking Construction Costs/Unit $5,000 $5,000 $5,000 $5,000 $5,000
Subtotal, Direct Costs/Unit $185,000 $185,000 $143,000 $143,000 $143,000
Indirect Costs as a % of, Direct Costs [4] 60% 60% 35% 35% 35%
Indirect Costs/Unit $111,000 $111,000 $50,050 $50,050 $50,050
Total Cost/Unit $306,000 $306,000 $203,050 $203,050 $203,050
less Value of 4% Tax Credits [5]-$118,400 -$118,400 $0 $0 $0
Net Cost/Unit $187,600 $187,600 $203,050 $203,050 $203,050
Maximum Supported Unit Value
Household Income [6] $27,350 $32,820 $43,700 $54,700 $65,640
Income Available for Housing Costs/Year [7] $8,205 $9,846 $13,110. $16,410 $19,692
less Utility Allowance [8] $2,400 $2,400 $2,400 $2,400 $2,400
Remaining Income Available for Rent $5,805 $7,446 $10,710 $14,010 $17,292
Operating Expenses per Unit/Year [9] $4,500 $4,500 $6,031 $6,031 $6,031
Net Operating Income $1,305 $2,946 $4,680 $7,980 $11,262
Capitalization Rate [10] 5.5% 5.5% 5.5% 5.5% 5.5%
Total Supportable Unit Value $23,727 $53,564 $85,082 $145,082 $204,755
Financing Gap
$163,873 $134,036 $117,968 $57,968 $0
[1] Costs for 50-60% AMI units assume projects are built by non-profit builders, and require prevailing wage. For units at 80-120% of AMI, EPS has assumed lower development costs
consistent with for -profit builders' cost bases, and do not assume prevailing wage.
[2] The land costs represent an expected price for developable residential land, per a December 2014 appraisal provided to the City of Palm Desert.
[3] Includes costs for labor and materials.
[4] Includes costs for architecture and engineering; entitlement and fees; project management, marketing, commissions, and general administration; financing and charges; insurance; and
contingency. Tax credit projects (at or below 60% AMI) are assumed to include developer fee at 14% of eligible basis.
[5] 4% Tax Credits are assumed to be received for units at 60% AMI or below. Value of tax credits is estimated at 40% of eligible basis, which is all direct and indirect costs but excludes land
costs.
[6] Based on HCD 2014 income limits for Riverside -San Bernardino -Ontario MSA.
[7] Assumes housing costs to be 30% of gross household income.
[8] Based on Housing Authority of Riverside County Allowances for Tenant Furnished Utilities and other Services assuming an apartment using natural gas for heating and cooking.
[9] Operating expenses include costs of tenants' utilities. Units for households above 60% AMI are assumed to be built as for -profit projects and thus subject to property tax.
[10] Capitalization rate estimated by EPS based on recent apartment industry investment standards.
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Nexus -Based Affordable Housing Fee Analysis for Rental Housing
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Development Cost Assumptions
Affordable housing development costs include land costs, direct costs (e.g. labor and materials),
indirect or "soft" costs (e.g., architecture, entitlement, marketing, etc.), and developer profit.
For rental projects, operating costs also must be incorporated into the analysis. Data from
recent Palm Desert development and recent land transactions have been combined with EPS's
information from local housing developers and published data sources to estimate development
cost assumptions for a prototypical project in Palm Desert. These cost assumptions are shown
on Table 2.
Projects offering units affordable to households at or below 60 percent of Area Median Income
(AMI) are typically eligible for "4%" Low Income Housing Tax Credits, which yield equity equal to
roughly 40 percent of the "eligible basis" of the development (all project costs excluding land
acquisition). Such projects are subject to prevailing wage requirements, however, which
increase their direct costs substantially. Also, the developer's fee for such projects is included as
an indirect cost, and can represent up to 14 percent of the eligible basis. These added costs are
more than offset by the value of the tax credit, however, so the net cost of development for such
units is estimated to be slightly less than the cost of developing units for households at 80 to 120
percent of AMI.
Revenue Assumptions
To calculate the values of the affordable units, assumptions must be made regarding the
applicable income level (moderate, median, LI, and VLI) and the percentage of income spent on
housing costs. In addition, translating these assumptions into unit prices and values requires
estimates of operatingexpenses, capital reserves, and capitalization rates. The following
assumptions were used in these calculations:
• Income Levels —The maximum allowable incomes used in each affordable housing income
category are consistent with those set forth by the federal government (U.S. Department of
Housing and Urban Development [HUD]): VLI = 50 percent of Area Median Income (AMI), LI
60%= 60 percent of AMI, LI 80%= 80 percent of AMI, Median Income = 100 percent of AMI,
and Moderate Income = 120 percent of AMI.
• Percentage of Gross Household Income Available for Housing Costs—HCD standards on
overpaying for rent indicate that households earning less than 80 percent of AMI should pay
no more than 30 percent of their gross income on housing costs. For this analysis, EPS has
assumed that all income qualified renter households shall spend 30 percent of their gross
income on housing costs, including rent and utilities.
• Other Costs Included for Rental Units —In addition to rent payments, the analysis assumes
$200 per month in utility costs based on the Riverside County Housing Authority utility
allowance table. This amount is subtracted from the total available housing costs (30
percent of household income) to determine the net amount available for rent payments.
• Operating Costs for Rental Units —The analysis assumes that apartment operators incur
annual costs of $4,500 per unit for VLI and LI 60% units and about $6,000 for LI 80%,
Median, and Moderate units. EPS has assumed the LI 80%, Median, and Moderate income,
units would be built by for -profit builders and subject to property taxes.
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Affordability Gap Results
Table 2 shows the subsidies for construction of for -rent apartments for VLI through moderate -
income households. The affordability gap ranges from $0 for moderate -income households (i.e.,
moderate -income households can afford home prices adequate to cover the costs of
construction) to roughly $164,000 for VLI households. The affordability gap for VLI households
is much higher because these households have significantly Tess income available for housing
costs, while construction costs remain essentially the same.
The affordability gaps by income level then were used to calculate the justified nexus -based fees
by multiplying this required subsidy by the number of units required to house workers providing
goods and services to new market -rate housing development. This methodology is discussed in
more detail in the following chapter.
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2. DEMAND -BASED NEXUS FEE CALCULATION
The maximum supportable nexus fees are based on both the affordability gap, calculated in the
previous chapter, and the estimated impact that new market -rate units have on the need for
affordable units, as reflected in the number of income -qualified local workers required to support
the residents of market -rate units and the total subsidy required to construct housing, for those
workers. This approach is based on the following logic: (a) residents of market -rate housing
have disposable incomes and require a variety of goods and services (including private sector
goods and services and government services); (b) the provision of those goods and services will
require some workers who make moderate or lower incomes and cannot afford market -rate
housing; and (c) fees charged to market -rate projects can mitigate the impact of those projects
on the increased need for affordable housing.
Market -Rate Household Income Levels
Households with larger incomes typically spend more on goods and services, therefore creating
additional lower income jobs, which in turn generate a greater demand for affordable housing.
To assess the impact that market -rate rental units have on the need for affordable housing, EPS
determined the minimum income required to rent a market -rate apartment at various bedroom
sizes, as shown in Table 3. Average rents for various apartment sizes (studio, and 1, 2, and 3
bedrooms) are based on a survey of rental rates for six of the most recent market -rate
multifamily projects developed in Palm Desert. The rents for the most recent apartment projects
were used, rather than average rents for all apartments, because these newer apartments best
represent the rents that can be expected with new market -rate apartment development.
Assuming utility costs for each unit size based on the Riverside County Housing Authority utility
allowance table, the minimum household income needed to rent each unit is then computed,
predicated on the assumption that a household will spend 30 percent of their income on housing
costs (rent and utility payments). As shown, required household incomes range from
approximately $46,000 for a studio apartment to roughly $85,000 for a 3-bedroom apartment.
Household Expenditures and Job Creation by Income
Level
Having established the income requirements for renting apartments of various sizes, the fee
calculation then requires an analysis of the household spending patterns at those required
income levels. Consistent with nexus fee calculations and impact analysis for schools, parks,
roads, etc., this analysis also assumes that all households renting new market -rate units in Palm
Desert are "net new" households to the City. To assume otherwise —for instance, that only those
buyers or renters of new housing units relocating from outside Palm Desert should be counted in
the impact analysis —would require assuming that the homes left by those households
Economic & Planning Systems, Inc. 11
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Table 3
Required Income by Unit Type- Market -Rate Rental Apartments
Palm Desert Housing Impact Fee, EPS #141134
Required Income by Unit Type
Annual Rent Minimum
Average Utility Subtotal Rent and Utility Annual Household
Apartment Size Rent [1] Allowance [2] and Utilities Expenditures Income Required [3]
Formula A B C=A+B D=C*12 E=D/30%
Studio $975 $165 $1,140 $13,680 $45,600
1-Bedroom $1,200 $175 $1,375 $16,500 $55,000
2-Bedroom $1,400 $200 $1,600 $19,200 $64,000
3-Bedroom $1,900 $229 $2,129 $25,548 $85,160
[1] Based on average rents for available multifamily rentals in each -unit size in early January 2015 within the City of Palm Desert.
Properties include: The Vineyards, Canterra, Mirabella, Ariana, The Regent, and The Enclave.
[2] Based on Housing Authority of Riverside County Allowances for Tenant Furnished Utilities and other Services assuming an
apartment using natural gas for heating and cooking.
[3] Assumes that a maximum of 30% of annual household income is dedicated to utility and rent expenditures.
Sources: ForRent.com; U.S. Department of Housing and Urban Development; Economic & Planning -Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015 P:1141000s1141134Pa!mDesertlMode11141134rentmodel020515.xlsx
Nexus -Based Affordable Housing Fee Analysis for Rental Housing
02/06/15
relocating within Palm Desert would be demolished or left vacant in perpetuity. This would only
be the case were the City experiencing a significant loss of population and housing inventory, as
has occurred, for instance, in Detroit. Palm Desert has not experienced such declines.
The Consumer Expenditure Survey from the United States Bureau of Labor Statistics provides
data for households at a variety of income levels, detailing the amounts that typical households
spend on things like "Food at Home," "Apparel and Services," and "Vehicle Maintenance and
Repairs." Interestingly, household expenditures by category are not uniformly proportional to
household income levels. For example, households earning around $55,000 (adequate to rent a
new one -bedroom apartment) spend roughly 12.3 percent of their income on food and drink (at
home and eating out), while households earning $85,000 who can afford to rent a new three -
bedroom apartment spend only about 10.5 percent of their income on these items. Because of
these and other differences in proportionate spending, the expenditure profile varies at different
income levels.
The household's typical expenditures were converted to the number of jobs created by their
spending. The first step in this process is to determine how much of an industry's gross receipts
are used to pay wages and employee compensation. EPS relied on data from the Economic
Census,2 which provides employment, gross sales, and payroll data by industry for Riverside
County. In certain instances, Riverside County data was not available for every Economic
Census industry —in those cases, EPS relied on statewide Economic Census data for that
industry.
To Zink the Economic Census data and the Consumer Expenditure Survey data, EPS made
determinations as to the industries involved with expenditures in various categories. For
example, purchases in the Consumer Expenditure Survey's "Food at Home" category would likely
involve the Economic Census's "Food & Beverage Stores" industry, where gross receipts were
nearly 10 times the employees' wages. By contrast, purchases in the Consumer Expenditure
Survey's "Entertainment Fees and Admissions" category were attributed to the Economic Census'
"Arts, Entertainment, and Recreation" industry, where gross receipts are only about 4 times the
employees' wages. Where more than one Economic Census category was attributable to a
Consumer Expenditure Survey category, EPS estimated the proportion of expenditures
associated with each Economic Census category.
After determining the amount of the household's expenditures that were used for employee
wages, an estimation of the number of employees those aggregate wages represent is required.
EPS calculated the number of workers supported by that spending using the average wage per
worker (also from the 2007 Economic Census). These wages ranged from a low of roughly
$14,000 per year for workers in the food services industry to a high of roughly $85,000 average
salary for legal services.3
2 Note that the Consumer Expenditure Survey data is based on information current as of 2013 and
data from the Economic Census was published in 2007. Because the data sources were from different
years, EPS converted the 2013 expenditures to 2007 dollars using the Consumer Price Index (CPI) for
the Riverside -San Bernardino -Ontario Statistical Area (MSA) from the Bureau of Labor Statistics.
3 Note that the average salary reported for legal services reflects the full range of workers employed
by that industry sector, including administrative staff and entry-level employees, as well as the
attorneys.
Economic & Planning Systems, Inc. 13
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This methodology recognizes that a range of occupations and incomes exist in a given industry
sector. For instance, the methodology used to generate Tables A-1 to A-4 in Appendix A
distinguishes between the typical incomes of workers in different types of retail stores (e.g.,
"food and beverage stores" versus "general merchandise stores"), rather than assuming all retail
sector workers earn the same income. However, the average wage is used for each sub-
category of industry employment and represents a reasonable proxy for the range of incomes in
that group: while some employees will have higher wages and require lower subsidies, others
will have lower incomes and require higher subsidies. Using the average approximates the total
housing subsidy needed by workers in that industry.
To calculate the number of households supported by the expenditures of market -rate housing
units, EPS estimated the employees' household formation rates. Importantly, employees
generated from the increase in housing units do not all form households; some employees, in the
retail and food services industries in particular, are young workers and do not form households.
Data from the Bureau of Labor Statistics indicates that 12.5 percent of retail/restaurant workers
are age 16-19, but an average of only 1.9 percent of workers in other industries. EPS applied
these discounts to household formation to get a more accurate calculation of households formed
by the employees and the average total incomes of those households.
To get the overall households' income rather than the individual workers', the wages of workers
forming households were multiplied by the average of approximately 1.52 workers per working
household in Palm Desert.4 This assumption implies the workers in a given household will have
roughly equivalent pay per hour. While certainly there will often be some variation in wages per
employee within a household, on average this assumption is reasonable because it implies
comparable levels of education and training among all workers in a household. The average
household incomes then are allocated to various income categories to estimate the number of
affordable housing units demanded in each income category (VLI, LI, Median, and moderate -
income).
4 Workers per working household based on American Community Survey (ACS) Census data current
as of January 2015. The average workers per working household estimate is calculated by taking the
total number of people in the labor force and dividing it by the number of households with earnings.
This methodology seeks to provide a conservative estimate of household formation by excluding
households without workers or earnings (such as those with retired persons).
Economic & Planning Systems, Inc. 14
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Nexus -Based Affordable Housing Fee Analysis for Rental Housing
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A simplified example of these calculations follows:
•
A. Number of Households (prototype project) 1,000
B. Average Household Income (in the project) $75,000
C. Aggregate Household Income (A x B) $75 million
D. Average Income Spent on Retail (Consumer Expenditure Survey) $20,000
E. Aggregate Retail Spending (A x D) $20 million
F. Retail Gross Receipts: Payroll Ratio (Economic Census) 10:1
G. Estimated Retail Payroll (E - F) $2 million
H. Average Retail Wage (Economic Census) $20,000
I. Estimated Total Retail Jobs (G - H) 100
J. Percent Age 20+ (Bureau of Labor Statistics) 87.5%
K. Total Retail Workers Forming Households 88
J. Average Workers/Household (Census Data) 1.52
K. Estimated Households Created (I - J) 58
L. Average Household Income (H x J) $30,400
M. Income Category (HCD Income Standards) LI 60%
In this simplified example, 1,000 new market -rate apartments rented to households earning
$75,000 per year would create demand for 58 housing units for retail workers' households
typically earning less than 60 percent of AMI. Actual calculations and impact distinctions by type
of household expenditure for various rental unit sizes are shown in the series of tables presented
in Appendix A.
Demand for Public -Sector Workers
In addition to the jobs created by the spending of the new market -rate households, this analysis
also aims to evaluate the number of public -sector employees generated by the public service
demands of new market -rate households. Rather than a comprehensive computation of public -
sector employment, the analysis aims to be conservative by sampling only certain public -sector
jobs (e.g., teachers and transportation providers) that are expected to .grow in proportionate
measure to household growth.
Data from the 2013 Occupational Employment Survey for the Riverside -San Bernardino -Ontario
MSA was used to determine the number of these public -sector employees needed to serve new
market -rate development, and the average annual wage among each selected public -sector job
type. EPS reviewed the data and sampled occupations that were public sector —related, as shown
in Table A-5 in Appendix A.
Based on the ratio of the selected public -sector jobs to the total households in the MSA, EPS
estimates that approximately 62 government jobs or 41 households with a government
employee are required per 1,000 total households. These figures are conservative (i.e., low)
because numerous types of public -sector jobs are not included in this analysis (such as federal
postal workers, County health and human services workers, etc.). Also, please note that EPS
has no basis to distinguish differences in the number of public -sector workers demanded by
households based on different income levels or in different sizes of units, so the same numbers
of public -sector jobs are assumed to be generated by units of all sizes and prices.
Economic & Planning Systems, Inc. 15
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Nexus -Based Affordable Housing Fee Analysis for Rental Housing
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Combined Demand for Income -Qualified Workers
The total number of income -qualified households required to support the expenditure and public -
sector service needs of new market -rate units were determined based on the affordable housing
income limits from HUD for a 3-person household. Table 4 summarizes the HUD income limits
used to compute the total number of income -qualified households generated by construction of
market -rate units.5 The numbers of income -qualified households required to provide goods and
services to new housing units are detailed in Appendix B.
The nexus methodology used herein computes the total number of income -qualified households
generated by market -rate units and calculates the impact fee based on the estimated cost to
subsidize the production of units to meet that affordable housing demand. This methodology
does not suggest that all lower income service workers serving City residents reside in the City,
but it does assume that new development should mitigate for the new affordable housing
demand it creates.
Fee Calculation
The affordability gap analysis quantifies the subsidy required to construct affordable housing at
various income levels (VLI, LI, Median, etc.). Analysis of consumer expenditures that rely on
lower wage workers provides,an estimate of the total number of income -qualified households
generated by new for -rent units. Then for each category of market -rate units, the nexus -based
fee is calculated by applying the total number of income -qualified households generated to the
affordability gap computed for each affordable household income level. The analysis provides
the maximum supportable nexus -based fees for new housing development in the City of Palm
Desert.
Tables 5 through 8 show the impact fee calculation by number of bedrooms for rental units.
The total impact fees required for a representative project of 100 units is calculated by
multiplying the number of affordable units required per income level by the cost of subsidizing
such housing. All income -qualified households are assumed to be housed in multifamily units
and the subsidies needed are calculated as the affordability gaps shown in Table 2. The
resulting maximum impact fee for market -rate rental units ranges from approximately $12,000
for a studio apartment to roughly $21,000 for a 3-bedroom apartment.
5 To correspond to the available data regarding employee wages, the 2007 Riverside County
affordable housing income limits from HUD and HCD were used to determine the number of income -
qualified households, based on household expenditures, while 2013 income limits were used for
public -sector employment.
Economic & Planning Systems, Inc. 16
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Table 4
-HUD Income Limits
Palm Desert Housing Impact Fee, EPS #141134
2007 2013 2014
Percentage of Max Income Threshold ,Max Income Threshold Max Income Threshold
Affordability Category County Median 3-person household 3-person household 3-person household
Very Low Income (LI) - 50% 31% - 50% $26,650 $28,700 $27,350
Low Income (LI) - 60% 51 % - 60% $31,980 $34,440 $32,820
Low Income (LI) - 80% 61% - 80% $42,600 $45,900 $43,700
Median Income (Med) 81% - 100% $53,300 $57,400 $54,700
Moderate Income (Mod) 101 % - 120% $63,960 $68,880 $65,640
Above Moderate Income (Above Mod) 120%+
*Note: Data for Riverside -San Bernardino -Ontario, CA MSA
Sources: US Department of Housing and Urban Development; California Department of Housing and Community Development; Economic & Planning Systems, Inc.
Economic & Planning Systems, Inc. 2/5/2015 P:1141000s1141134PalmDesei Model1141134rentmode1020515.xlsx
Table 5
Maximum Impact Fee Calculations -- Studio
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
4.1
1.1
2.6
1.3
9.2
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
co
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total In -Lieu Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$678,298
$153,471
$306,101
$74,445
$1,212,314
(D=C/100)
$12,123
-Economic & Planning Systems, Inc. 2/6/2015 P:1141000s1141134PalmDesertlMode11141134rentmode/020515.xIsx
Table 6
Maximum Impact Fee Calculations --1 Bedroom
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
5.2 •
1.3
3.0
1.4
10.9
[1] Subsidies are based on financing gap for rental units, as shown on Table 2.
ko
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total In -Lieu Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$854,638
$176,458
$351,532
$82,409
$1, 465, 036
(D=C/100)
$14,650
Economic & Planning Systems, Inc. 2/6/2015 P:1141000s1141134PaImDesertlMode11141134rentmodel020515.xIsx
Table 7
Maximum Impact Fee Calculations -- 2 Bedroom
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
5.7
1.4
3.2
1.5
11.7
o [1] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total In -Lieu Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$931,400
$185,351
$373,284
$87,202
$1,577,237
(D=C/100)
$15,772
Economic & Planning Systems, Inc. 2/6/2015 P:1141000s1141134PaImDesertlModel1141134rentmodel020515.xisx
Table 8
Maximum Impact Fee Calculations -= 3 Bedroom
Palm Desert Housing Impact Fee, EPS #141134
Item
Affordable Units
Affordable Units
Affordable Units
Affordable Units
Total
- Very Low Income (50%)
- Low Income (60%)
- Low Income (80%)
- Median Income
Affordable Units
Required Per 100
Market -Rate Units
(A)
7.6
1.8
4.2
1.9
15.6
NJ 11] Subsidies are based on financing gap for rental units, as shown on Table 2.
Source: Economic & Planning Systems, Inc.
Financing Gap per
Affordable Unit [1]
(B)
$163,873
$134,036
$117,968
$57,968
Total In -Lieu Fee Required
Per 100 Market -Rate Per Market Rate Unit
Units
(C=A*B)
$1,240,652
$246,633
$496,701
$112.944
$2, 096, 930
(D=C/100)
$20,969
Economic & Planning Systems, Inc. 2/6/2015 P:1141000s1141134PalmDesertlMode11141134rentmodel020515.xIsx
Appendix: A::
Appendix::B:
APPENDICES:
Household Expenditures: and
Employment Generation
Income :Levels for Worker: Households
APPENDIX A:
Household Expenditures and
Employment Generation
Table A-1 Estimated Average Annual:Household Expenditures and
Associated Employment Generation - Studio A-1
Table A-2 Estimated Average Annual Household Expenditures and.
Associated Employment Generation - 1 Bedroom A-2
Table A-3.:: Estimated Average Annual Household -Expenditures and
Associated Employment Generation _ 2 Bedroom A-3
:Table A-4 ,Estimated Average Annual Household Expenditures and
Associated Employment Generation. 3 Bedroom A-4
Table A-5 Representative Government Employment and Wages,
2013'' A-5
Table A-1
Estimated Average Annual Household Expenditures and Associated Employment Generation -Studio
Palm Desert Housing Impact Fee, EPS #141134
Expenditure Category/
Business Type
Calcul0Uon
per Category [1] ExRP'mtli reopen 2013 Expe4'tures Exp entliturcs Wxyb 2007 TOGI 20o7Avp. Nof Forming Workers) WHNer I21n Income I Income
Type of Expenditures
per 1000 Wages WaBm Warkera HH PI Category
a nab n c•Income •a' d•c •QndeBan e•d•f000 / // h I. b ed%usm,eml g•e g/h / k blyk m•h•/
Food at Nome 8.8% 100% 53,931 13,767
Food& Boveroge Storoe 100% 53,931 53,767 $3,767,188 0.85 $382,370 $24213 18 67.5% 1.52 9.1 538,698 LI 80%
Food Away From Home 49% 100% 52,231 52,136
Food Services and Drinking Places 100% 52231 52,138 52,138,181 3.52 $608,028 513479 45 87.5% 1.52 26.0 $20,429 VLI
Alcoholic Beverages 0.8% 100% 5385 5369
Food &Beverage Stores 50% 5192 $184 5192272 9.85 518,518 524213 1 87.5% 1.52 0.5 $36,698 Li 80%
Food SeMcoe and Drinking Places 50% 5192 $184 5192272 3.52 $54,678 $13,479 4 87.5% 152 2.7 520,429 VLI
Housing Maintenance, Repairs, Insurance, Other expenses 2.5% 100% 51,149 51,101
Personal and Household Goods Rehab and Maintenance [7] 45% 5517 $498 5495,637 3.72 5133,269 $26,783 5 98.1% 1.52 32 340,593 LI 80%
Bulking Material and Garden Equipment and Supplies Dealer 45% $517 $498 5495,437 851 558244 $28,625 2 87.5% 1.52 12 543,385 Med
Real Estate and Rental and Leasing 10% $115 5110 5110,141 5.48 520,181 $31,974 1 98.1% 152 0.4 $48,460 Med
Fuel 00and Other Fads [6] 02% 100% 5109 5105
Nonstore Retailers 100% $109 $105 5104,701 831 $12,598 528,212 . 0 87.594 1.52 0.3 542,753 Med
Water and Other Public Services [6] 1.1% 100% $501 $480
Waste Management and Remedia0on Services 100% 5501 $480 $480,393 4.59 5104875 544,275 2 98.1% 1.52 1.5 567,105 Above Mod
Household Operations Personal Services 0.4% 100% 5189 5187
Nursing and Residential Care Facilities 40% 580 578 $78,370 2.32 532,948 525,367 1 98.1% 1.52 0.3 338,447 LI 80%
Social Assistance [7] 60% $120 5115 $114,555 2.98 538,396 523,881 2 88.1% 1.52 1.0 $36,164 LI 80%
Household Operations Other Household Expenses 1.4% 100% 5644 5617
Services to Bwldings and Dwellings [7] 100% $844 $817 5818,918 2.64 5233,301 525,071 9 98.1% 1.52 8.0 337,998 LI 80%
Housekeeping Supplies 12% 100% $557 5534
Building Materials and Garden Equipment and Supplies Dealers 10% $5e $53 $53,377 8.51 38272 528,625 0 87.5% 1.52 0.1 343,385 Med
Food &Beverage Stores 35% $195 5187 $188,820 9.85 518,962 524213 1 87.5% 1.52 05 536,698 LI 80%
General Merchandise 35% $195 $187 5186,820 10.68 517521 $21,086 1 37,5% 1.52 05 $31,958 LI 60%
Miscellaneous Store Retailers 20% 5111 $107 $106,754 800 $13,349 517,860 1 87.5% 152 0A $27,100 LI 60%
Household Furnishings and Equipment 2.7% 100% 51,216 31,165
Furniture and Home Furnishings Stores 40% 5486 $466 5486,023 689 $67,630 $28248 2 87.5% 1.52 1.4 $42,813 Med
Electronics and Appliance Stores 40% 5486 $468 5486,023 939 549,829 521,059 2 87.5% 152 1.4 531,918 LI 60%
General Merchandise Stores 10% $122 5117 $116,506 1066 $10,927 $21,088 1 87.5% 1.52 0.3 531,958 LI 60%
Miscellaneous Store Retailers 10% $122 5117 5116508 8.00 $14,568 517580 1 87.5% 152 0.5 527,10D LI 60%
Apparel and Services 2.9% 100% $1,336 51,280
Clothing and CtotNng Accessories Stores 40% 5534 5512 $512,009 8.49 560,309 518,643 4 87.5% 152 21 $25224 VLI
General Merchandise 40% 5534 $512 $512,009 10.88 543,020 521,086 2 87.5% 1.52 1.3 531,958 LI 60%
Miscellaneous Store Retailers 10% 5134 5128 5120,002 8.00 518,005 517,880 1 87.5% 152 0.5 527,100 LI 60%
Personal and Household Goods Repab and Maintenance [7] 5% $87 $64 564,001 372 317,209 528,783 1 87.5% 1.52 04 540,593 LI 80%
Oryaeanng and Laundry SeMees 171 5% 567 564 564,001 3.17 520,218 525,028 1 a7.5% 1.52 0.5 $37,933 LI 80%
Vehicle Purchases (net outlay)
Motor Vehicle and Parts Dealers
Gasoline and motor oil
Gasoline Stations
Vehicle Maintenance and Repairs
Repair and Maintenance [7]
6.7% 100% 53,057 $2,930
100% 53,057 $2,930 52,929,579 1242 $235,916 $40,386 6 87.5% 1.52 3A $61210 Mod
6.1% 100% 52764 $2,648
100% 52,764 52,648 52,648,323 40.34 565,644 518204 4 87.57. 1.52 2.1 527,590 LI 60%
1.7% 100% $758 5727
100% $758 5727 $726,749 3.55 $204,903 129204 7 98.1% 1.52 45 1442e2 Med
Medical Services 1.4% 100% 3623 $597
Ambulatory Health Care SeMces 40% $249 3239 $238,965 2.78 $85,777 $46,732 2 98.1% 152 12 $69,919 Above Mod
General Medical and Surgical Hospitals [7] 30% $187 5179 5179224 2.63 568,143 558,054 1 98.1% 152 08 567.966 Above Mod
Nursing and Residential Caro Fac,btles 30% 31a7 $179 f179224 2.32 577516 525587 3 08.1% 1.52 2.0 f38,447 LI 80%
Drugs 1.1% 100% 5491 5470
Health and Personal Care Stones 100% $491 5470 5470129 7.11 $68,130 529,991 2 875% 1.52 1.3 $45,455 Med
Medical Supplies 0.3% 100% 5119 $114
Heath and Personal Care Stores 100% $119 $114 5113,939 7.11 $16,027 529,991 1 67.5% 1.52 05 $45,455 Med
Entertainment Fees and Admissions 0.7% 100% 5322 5309
Arts, Entertainment, 8 Recreation 100% 5322 5309 $308,971 4.27 ST2,385 524,001 3 87.5% 1.52 1.7 $36,377 LI 80%
Audio and Visual Equipment and Services 2.1% 100% 5938 $897
Electronics and Appliance Stores 100% 5938 5897 5897,145 9.39 $95,542 521,059 5 87.5% 1.52 2.6 531,913 LI 60%
Pets, Toys, Hobbies, and Playground Equip. 12% 100% $543 $520
Sporting Goods, Hobby, and Musical instrument Stores 40% $217 $208 3208,170 8.06 $25,817 5113,038 2 87.5% 1.52 09 524,307 VLI
M,9011911eous Store Retailers 40% 5217 $208 5208,170 a 00 526,030 $17,880 1 87.5% 152 0.8 527,100 LI 60%
Veterinary Services [7] 20% 5109 5104 $104,085 2.81 538,994 531,148 1 88.1% 152 0.7 $51,755 Med
Other Entertainment Supplies, Equipment and Services 04% 100% $187 $180
Sporting Goods, lobby, and Musical Instrument Stores 85% 5159 5153 $152,689 808 $18,936 $16,038 1 87.5% 1.52 0.7 $24307 VLI
Photographic Services [7] 15% $23 527 $26,945 4.55 $5576 $22554 0 88.1% . 1.52 02 $34,183 LI 80%
Personal Care Products and Services 12% 100% 5538 5513
Unspecified Retail 50% $268 5257 f258,820 800 532,088 $17,880 2 87.5% 152 1.0 $27,100 LI 60%
Personal Caro Services 50% 5268 $257 f258,620 299 $85,710 $16,484 5 88.1% 152 3.4 $24,984 VLI
Reading 02% 100% 382 $79
Sporting Goods, lobby, and Musical lnWment Stores 100% $82 579 579,039 $9,602 516,038 1 98.1% 1.52 0.4 524207 VLI
Education 1.1% 100% 5480 5450
Educational Services 100% 1480 5460 5459564 3.19 5144,111 515,973 9 87.5% 1.52 52 524209 VLI
Miscellaneous 12% 100% $567 3543
8600077419[7] 20% 5113 $109 5100602 1.98 854501 $33,564 2 98.1% 1.52 1.1 550,871 Med
Archnctu9l, Engineering. and Rotated MN 20% $113 $109 5108,602 280 538,731 574,995 1 98.1% 1.52 0.3 5113,684 Above Mod
Specia52nd Design 5ervbaa [7] 20% $113 5109 5108,602 372 529231 $53,888 1 88.1% 1.52 0.4 581,673 Above Mod
Death Caro Services [7] 20% $113 5109 $103,602 3.47 $31,255 $38,983 1 98.1% 1.52 05 $58,052 Mod
Legal Servbca3[7] 20% 5113 $109 5108,602 278 539,327 585,734 0 98.1% 1.52 03 5129,940 Above Mod
Total per 1,000 Market Rate Households
184 93.4
Per Table 4, the rental of a Studio apartment requires a household income of $45,600
[1] Percent of income spent per category is based on the 2013 Consumer Expenditure Survey data for households at this Income level. Note that the sum of the categories included in this analysis is well below the total expenditures
of households at this income level, and anus represents a conservative estimation ofjob creation and housing impacts. Expenditure categories not incorporated due to data constraints include taxes, housing and lodging, most utilities,
tobacco, health insurance, personalllde insurance, cash contributions, and financing charges.
[2] Where multiple business types are likely to provide goods and services in the expenditure category, EPS has estimated the proportion accruing to each business type.
[3] 2013 expenditures convened to 2007 dollars using the Consumer Price Index from the Bureau of Labor Statistics.
[4] BLS data Indicates that 12.5%of retail/restaurant workers are age 16-19, but an average of only 1.9% of workers in other industries. EPS has assumed that such young workers do not loan their awn households.
[5] Based on 2010 Census data for City of Palm Desert, calculated as the number of 'residents in labor force divided by the number of 'households with earnings..
[6] Pan of the Utilities, Fuels, and Public Services category, which also includes natural gas, electricity, and telephone services. Natural gas, electricity, and telephone services not estimated because data was not available in the
2007 Economic Census.
[7] Riverside County data not available from 2007 Economic Census. Gross receipts to wages end 2007 average wage thus based on statewide data
[8] Note that average salary reported for architecture, engineering and related industries reflects the full range of employees within the industry, not solely professional and technical staff.
Sources' 2013 Consumer Expenditure Survey, U.S. Bureau of Labor Statistics; 2007 Economic Census, U.S. Census Bureau; Census 2010; Economic & Planning Systems, Inc.
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Table A-2
Estimated Average Annual Household Expenditures and Associated Employment Generation -1 Bedroom
Palm Desert Housing Impact Fee, EPS 6141134
Expenditure Category/
Business Type
Calculation
%of Household orvmegory 2007 dcul Dross
Expendtum per 3013 Expenditures
Income Spent Type el Expenditures Expenditures per 1000 Receipts
per Category [1] R7,•ne••rn C51 Hno..hnnd• [o Wages
200/Total 2007 Avg. Mar % FormingWorkers) Total 2007 Avg. Income
Wages Wage Workers HH[4] H11[5] Worker Incom00 e Category
HH
b c• Income 'e' tl•c•(Innatlon e•d'f000 I p•e/l h I•p/h
ea:cabneot) 1 M !•l yk m•h•)
Food at Home 7.4% 100% 54.064 53,895
Food 6 Beverago Stores 100% 24,064 $3.895 $3,894,719 985 $395,315 524.213 16 87.5% 1.52 8.4 $36,688 LI 8O%
Food Away From Home 4.9% 100% 32,704 32,591
Food Services and Dunking Places 100% 52,704 $2,591 52.591,342 3.52 5738,899 513,479 55 87.5% 1.52 '31.6 $20,429 LI 6O%
Alcoholic Beverages
Food 6 Beverage Stares
Food Services end Drinking Places
0.8% 100% $437 5419
50% 3219 5210 5216,641 9.85 522,182 524213 1 578% 1.52 0.8 $36,698 LI 8O%
50% 3219 5210 5216,641 3.52 562,175 $13,479 5 87.5% 1.52 3.0 $20,429 LI 60%
Housing Maintenance, Repairs, Insurance, Other expenses 1.9% 100% $1,053 $1,010
Personal and Household Goods Repair and Maintenance [7] 45% 3474 $454 3454,304 3.72 5122,155 526,783 5 98.1% 1.52 30 540,593 LI8O%
Building Material and Garden Equipment and Supplies Dealer 45% $474 5454 $454,304 851 553,386 $28,625 2 874% 1.52 1.1 543,355 Med
Real Estate and Rental and teasing 10% $105 $101 $100,956 5.46 $18,468 531.974 1 98.1% 1.52 OA 348,460 Med
Fuel Oct and Other Fuels[6] 0.3% 100% 3187 5160
Renshaw Retailers 100% 5167 3160 $159,912 8,31 119,242 $28,212 1 87.5% 1.52 04 542,758 Med
Water and Other Public Services [0] 1.094 100% $528 55504
Waste Management and Remedatian Services 100% 5526 5504 $503,518 459 5109,779 $44,275 2 98.1% 1.52 1.6 567,105 Above Mod
Household Operators Personal Services 05% 100% 5265 $255
Nursing end Residential Care Facades 40% 5107 $102 5102,112 232 544,051 325,387 2 98.1% 1.52 1.1 538,447 LI 80%
Social Assistance [7] 60% $160 $153 $153,169 298 $51,339 323,881 2 ' 98.1% 1.52 1.4 $35,164 L18O%
Household Operations Other Household Expenses 1.4% 100% 5762 5730
SeMces to Braidings and Owel0ngs l7] 100% $762 5730 $730,200 264 $278,142 $25,071 11 98.1% 1.52 7.1 $37,998 LI 8O%
Housekeeping Supplies 12% 100% 5643 $617
Bu4dng Materials and Garden Equipment and Supplies Dealers 10% 364 362 561,653 851 57,245 528,625 0 87.55 1.52 0.1 $43,385 Med
Food 6 Beverage Storm 35% $225 $216 3215,785 985 $21,902 524,213 1 875% 1.52 0.5536,698 LI 80%
General Merchandise 35% 5225 $216 $215.785 10.613 520,238 $21,088 1 , 875% 1.52 0.6 531,958 LI6O%
Miscellaneous Store Retailers 26% 5129 $123 5123,305 8.00 315,41a 517,850 1 875% 1.52 0.5 527,100 LI 60%
Household Furnishings and Equipment 2.8% 100% 51,544 51,480
Furniture and Home Furnishings Stares 40% $618 5592 55918613 6.89 585,863 $28,248 3 874% 1.52 1.8 $42,613 Med
Electronics and Appliance Stares 40% 5618 5592 $591,866 9,39 $63,031 521,059 3 87.5% 1.52 1.7 $31,918 LI 6O%
General Merchandise Stores 10% $154 5148 $147,967 10.66 $13,877 $21,088 1 87.5% 152 0.4 $31,958LI 60%
Miscellaneous Store Retailers 10% 3154 5148 $147,967 8.00 $18,502 $17,880 1 87.5% 1.52 0.6 527,100 LI 6O%
Apparel and Services 2.8% 100% $1559 51,494
Clothing and CloWn➢ Accessories Stores 40% 5624 5598 3597,646 849 $70,398 516,643 4 87.5% 1.52 2.4 525,224 LI 6O%
General Merchandise 40% 5824 5598 5597,646 1066 $58,051 521.086 3 875% 1.52 1.5 531,958 LI 6O%
Miscellaneous Store Reta0en 10% $156 $149 $149412 800 518,682 $17,880 1 87.5% 1.52 06 527,100 LI 6O%
Personal and Household Goads Repair and Maintenance [7] 5% $78 375 $74,706 3.72 520,057 526,783 1 87.5% 1.52 04 540,593 LI 80%
Dry Cleaning and Laundry Services [l] 5% 578 $75 574,708 3.17 323597 525,028 1 87.5% 1.52 05 537,933 LI 8O%
Vehicle Purchases [net outlay] 8.0% 100% $3,286 53,151
Motor Vehicle and Pans Dealers - 100% $3,268 $3,151 $3,151,033 12.42 5253,750 $40,388 6 875% 1.52 3.6 561,210 Mod
Gasoline and motorail 5.5% 100% 53,032 52,905
Gasoline Stations 10096 $3.032 12,905 52,905,385 40.34 572,016 118204 4 87.55 1.52 2.3 527,590 LI 6O%
Vehicle Maintenance and Repsin 1.6% 100% 5876 5839
Repair and Maintenance[7] 100% $876 5839 583%055 3.55 5236,567 529,204 8 88.1% 1,52 52 544.262 Med
Medical Services 1.6% 100% 5859 5861
Ambulatory Health Care Services 40% 5359 5344 $344,485 2.79 $123654 $46,132 3 98.1% 1.52 1.7 389,919 AboVe Mod
General Medical and Surgical Hospitals [7] 30% 5270 5258 $258,364 2.63 598,233 358,054 2 98.1% 1.52 1.1 587,988 Above Mod
Nursing and Residential Care Feceiti0s 30% $270 5258 3258,384 2,32 5111.456 525387 4 98.1% 1.52 25 $38,447 LI 8O%
Drags 1 08% 100% 3491 5470
Hearth and Personal Caro Stores 100% $491 $470 3470,102 7.11 $66,127 $29,991 2 87.5% 1.52 1.3 $45,455 Med
Medical Supplies 0.3% 100% 5150 3144
Health and Personal Care Stores 100% 5150 $144 5143535 7.11. $20,190 $29,991 1 874% 1.52 OA $45,455 Med
Entertainment Fees and Admissions 09% 100% $472 5453
Ads, Entertainment. & Recreation 100% 5472 $453 $452,762 427 5106,072 524,001 4 87.5% 1.52 2.6 536377 LI 60%
Audio and Visual Equipment and Services 1.9% 100% $1,028 5985
El0098n!ce and Spillane Stores 100% $1,028 5985 $985,480 9.39 $104,950 321,059 5 87.5% 1.52 29 $31,918 LI 6O%
Pete, Toys, Rabbis, and Playground Equip. 1.1% 100% $621 5595
Sporting Goods, Hobby, end Musical Instrument Stares 40% $248 $238 $238,134 8.06 529,533 $16,038 2 87.5% 1.52 1.1 524307 LI 6O%
Miscellaneous Store Retailer, 40% 5248 5238 5233,134 800 $29,776 $17,880 2 87.5% 1.52 10 $27,100 L16O%
Veterinary Services [7] 20% 5124 $119 5119,067 2.81 $42,318 $34,148 1 Bat% 1.52 08 $51,755 Med
Other Entertainment Supplies, Equipment, and Services 0.6% 100% $305 $292
Sporting Goods, Hobby. and Musical instrument Stores 85% 3259 $243 5248,104 8.08 530,770 $16,038 2 137.5% 1.52 1.1 $24,307 LI 6O%
Photographic Services [7] 15% $46 544 543,783 4.55 $9,814 522,554 0 98.1% 1.52 0.3 $34,183 LI 60%
Personal Care Products and Services 1.1% 100% 5593 3566
Unspecified Retail 50% 5297 5284 5284,181 8.00 535,534 $17,880 2 87.5% 1.52 1.1 527,100 LI 60%
Personal Caro Services [7] 50% 3297 5284 $284,181 239 $94,915 516,484 6 98.1% 1.52 3.7 524,984 LI 60%
Reading 02% 100% 5107 5102
Spomng Goods, lobby, and Musical Instrument Stores 100% $107 5102 5102,112 8.08 512,664 516,038 1 98.1% 1.52 OS $24,307 LI 6O%
Education 1.5% 100% 5801 3768
Educational SeMces 100% 8801 5788 5787,766 3.19 5240,602 815,973 15 87.5% 1.52 8.7 524209 LI 60%
Miscellaneous
Accounting [7]
Art5tectured, Engineering. and Related [7,8]
Specialized Design Services [7]
Death Care Services [7]
Legal Services [7]
1.1% 100% $817 $591
20% 5123 $118 $118,296 1.98 $59,693 333,684 2 98.1% 1.52 12 550,871 Med
20% 5123 $118 5118,296 2.80 542,188 $74,995 1 68.1% 1.52 0.4 3113,664 Above Mod
20% 3123 $118 $118296 3.72 531,840 353,885 1 98.1% 1.52 0.4 551,673 Above Mod
20% $123 5118 3118296 3.47 334,045 538,983 1 98.1% 1.52 0.8 $56,052 Mod
20% 5123 $118 5118,296 2.76 542,837 585,734 g 98.1% 1.52 25 5129,940 Above Mod
Total per 1,000 Market Rate Households 196
117.4
Per Table 4, the rental of a 1 Bedroom apartment requires a household Income of 355,000
[1] Percent of income spent per category Is based on the 2013 Consumer Expenditure Survey data for households at this Income level. Note that the sum of the categories included in this analysis is well below the total expenditures of households
at this income level, end thus represents a conservative estimation ofjob creation and housing impacts. Expenditure categories not incorporated due to data constraints include taxes, housing and lodging, most utihhes, tobacco, health insurance,
personaWfe insurance, Dash contnbwons, and financing charges.
[2] Where multiple business types ere bkely to provide goods and services In the expenditure category, EPS has estimated the proportion accruing to each business type.
[3] 2013 enpend00res converted to 2007 dollars using the Consumer Price Index from the Bureau of Labor Statis6.
[4] BLS data indicates that 125% of retail/restaurant workers are age 16-19, but an average of only 1.9%of workers in other Industries. EPS has assumed that such young workers do not farm their cum househo
[5] Based on 2010 Census data for City of Palm Desert, calculated as the number of 'labor force' divided by the number of "households with eamir5
[6] Part of Utilities, Fuels, and Public Services cetegory, which also Includes natural gas, electricdy, and telephone services. Natural gas, electricity, and telephone services not estimated because data was not available In the 2007 Economic
Census.
[7] Rrver5ide County data not available from 2007 Economic Census. Grass receipts to wages and 2007 average wage thus based on statewide d
[8] Note that average salary reported for architecture, engineering and related industries reflects the full range of employees wrthin the Industry, not solely professional and technical stag.
Sources: 2013 Consumer Expenddure Survey, U.S. Bureau of Labor Statistics; 2007 Economic Census, U.S. Census Bureau; Census ACS 2011; Economic & Planning Systems, Inc.
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Table A-3
Estimated Average Annual Household Expenditures and Associated Employment Generation -2 Bedroom
Palm Desert Housing Impact Fee, EPS #141134
Expenditure Category/
Business Type
Calculation
% of Household
Income Spent
per Category [1]
uaregory 200] I auu,
Expenditure per 2013 Expenditures Expenditures
naeyp tefrn EapendlNrenl
c•Income"e" d•c'(irdledon
edjusemnV eed"1000
Gross Total 2007 Avg.
2002o07Avg. eel %Forming Workers)
Receipts Wages Wage Workers H11[4] HH[5] Walk<r co Income Category
to Wages HH Income
Income
gee/f h Is➢/h 1
•
k 14,k msh.1
Food at Home 8.1% 100% $3,893 53,731
Food& Beverage Stores 100% 33,893 $3,731 $3,730,721 9.85 2378,669 $24213 16 87.5% 1.52 90 $36,698 LI 80%
Food Away From Home 4.4% 100% 52,833 52,715
Food SeMces and Drinking Places 100% 52.833 32.715 52,715218 362 $772,125 $13,479 57' 87.5% 1.52 33.1 520,429 LI 60%
Alcoholic Beverages 0.7% 100% 5477 5457
Food& Beverage Stores 50% $239 5229 $238,532 9.85 $24,211 $24213 1 87.5% 152 0.7 538,898 LI 80%
Food Services and Drinking Places 50% 5239 2229 $238,532 3.52 267,631 313,479 5 87.5% 1.52 3.3 $20,429 LI 60%
Housing Maintenance, Repairs, Insurance, Other expenses 22% 100% 51.384 $1228
Personal and Household Goods Repair and Maintenance[7] .45% 5623 5597 $596,676 3.72 5160,437 328,7E3 6 98.1% 1.52 33 240.593 LI 80%
Bunting Material and Garden Equipment and Supplies Dealer 45% $623 5597 $593878 8.51 $70,117 528,625 2 875% 1.52 1.4 $43,385 Med
Real Estate and Rental and Leasing 10% $138 5133 $132,595 546 $24,295 231.974 1 98.1% 1.52 0.5 548,480 Med
Fuel Oil and Other Fuels [6] 0.2% 100% $145 5139 i
Nonstop, Retailers 100% $145 5139 $139,004 831 $18,728 328,212 1 87.5% 1.52 0.3 342,758 Med
Water and Other Public Services [6] 0.8% 100% 5517 5495
Waste Management and Remedation Samoa, 100% 5517 3495 $495,010 4.59 5107,860 244,275 2 98.1% 1.52 1.8 557,105 Above Mod
Household Operations Personal Services 0.6% 100% 5358 $343
Nosing and Residential Care Fecal., 40% 5143 $137 $137,151 2.32 359,166 $25.387 2 98.1% 1.52 IS $38,447 LI 80%
Soda! Assistance [7] ' 60% $215 '5208 5205,726 2.98 $68,955 $23,861 3 98.1% 1.52 1.9 $38,164 LI 80%
Household Operations Other Household Expenses 1.2% 100% $753 5721
Services to 040140 gs and one9ngs[7] 100% 5753 5721 5721278 2.64 5272,768 325,071 11 98.1% 1.52 7.0 337.998 LI 80%
Housekeeping Supplies 12% 100% 3782 $750
Bu2dng Materials and Garden Equipment and Supplies Dealers 10% 578 575 574,985 8.51 56812 528,825 0 87.5% 1.52 02 $43,385 Med
Food & Beverage Stares 35% 5274 $262 5262,448 9.85 $28,639 524213 1 87.5% 1.52 0.6 536,698 LI 80%
General Merchandse 35% 5274 5262 $262A46 10.56 224,614 $21,086 1 87.5% 1.52 0.7 531658 LI 60%
Miscellaneous Store Retailers 20% $158 $150 $149,970 800 $18.752 $17,880 1 87.5% 1.52 08 527,100 LI 60%
Household Furnishings and Equipment 2.6% 100% 51,657 31,5t18 •
Furniture and Home Furnishings Stores 40% 5683 3635 3635,095 888 $92,168 525248 3 875% 1.52 1.9 $42,813 Med
Electronics and Appliance Stores 40% 5653 $635 $935,095 8.39 $87,635 521,059 3 87.594 1.52 1.9 $31,918 LI 60%
General Merchandse Stores 10% $168 $159 5158,774 1066 $14,891 321,086 1 87.5% 1,52 04 $31,658 LI 60%
Miscellaneous Store Retailers 10% $166 5159 $158,774 800 519,853 517,880 1 87.5% 1.52 06 527,100 LI 60%
Apparel and Services 2.8% 100% 21,765 $1,691
Clothing and Clothing Accessories Stores 40% 5706 5676 $976.468 849 579,653 $16,843 5 87.5% 1.52 28 525,224 LI60%
General Memhandse 40% $703 5676 5576,488 10.66 363,44E1 821,056 3 87.594 1.52 1.7 531,958 LI 60%
Miscellaneous Store Retailers 10% 5178 2169 $169,122 800 521.147 517,880 1 87.5% 1.52 0.7 $27,100 LI 60%
Personal and Household Goods Repair end Maintenance [7] 5% 388 $85 584,581 3.72 $22,737 526,783 1 87.5% 1.52 05 540,593 LI 80%
Dry Cleaning and Laundry SeMeos [7] 5% $88 585 384,581 3.17 $26,710 325,028 1 87.5% 1.52 06 337,933 LI 80%
Vehicle Purchases (net outlay) 5.7% 100% 53,634 $3,483
Moor Vehicle and Parts Dealers 100% 53,634 $3,463 53,482,830 1242 3260,469 240386 7 87.5% 1.52 4.0 561210 Mod
Gasoline and motor oil 4.4% 100% 52,819 52,701
Gasoline Stations 100% 82,819 $2,701 $2,701,317 4034 566,958 518.204 4 87.5% 1.52 2.1 $27,590 LI 60%
Vehicle Maintenance and Repairs 14% 100% 5887 5850
Repair and Ma4tonance[7] 100% $887 5850 5850243 355 5239,72E $29,204 8 981% 1.52 5.3 544282 Med
Medical Services 1.4% 100% 3870 5833
Ambulatory Health Care SoMces 43% 5348 5333 $333,301 2.79 $119,840 546,132 3 961% 1.52 1.7 569,919 Above Mod
General Modkal end Surgical H000612b[7] 30% 5261 5250 5249,976 2.63 $95,004 558,054 2 98.1% 1.52 1.1 587,988 Above Mod
',Ursine and Residential Care Feckless 30% 5261 $250 3249,978 222 5107,838 $25,367 4 98.1% 1.52 2.8 $38,447 LI 80%
Drugs 0.7% 100% 5438 3420
Health and Personal Care Stores 100% $438 5420 3420,10E 7.11 $59693 $79,991 2 87.5% 1,52 1.1 $45,455 Med
Medical Supplies 02% 100% 5148 5142
Health and Personal Cam Stores 100% 5148 3142 $142,083 7.11 $19,987 529.991 1 67.5% 1.52 0.4 $45,455 Mad
Entertainment Fees and Admissions 0.8% ' 100% 5532 5510
Arts, Entedaimnont& Recreation 100% $532 5510 $509,682 427 $119,407 524,001 5 87.594 1.52 2.9 $38,377 LI 80%
Audio and Visual Equipment and Services 1.5% 100% $956 $916
Electronics and Appliance Stores 100% $956 5916 $915,884 597,5313 $21,059 5 87.5% 1.52 2.7 531,918 LI 60%
Pets, Toys, Hobbies, and Playground Equip. 1.2% 100% 5753 5722
Sporting Goods, Hobby, and Musicallnshumenl Stores 40% $301 $289 5288,820 808 335,819 $16.038 2 87.5% 1.52 12 $24,307 LI 60%
Miscellaneous Store Retailers 40% $301 5289 3288,820 8.00 538,114 $17,880 2 87.5% 1.52 12 $27,100 LI 60%
Veterinary services [7] 20% 5151 5144 $144,410 2.81 $51,326 534,148 2 981% 1.52 1.0 551,755 Med
Other Entertainment Supplies, Equipment, and Services 0.5% 100% 5320 5307
Sporting Goods, Hobby, and Musical Instrument Stores 85% 5272 $261 $260,594 806 532,319 516,039 2 87.5% 1.52 12 524,307 LI 60%
Photographic Semces[l] 15% 248 243 545,987 4.55 510,098 222554 0 98,1% 1.52 0.3 $34,183 LI80%
Personal Care Products and Services 1.0% 100% 5653 $626
Unspecified 60142 50% $328 5313 5312,760 900 539.108 217,680 2 87.5% 1.52 1.3 327,100 LI 60%
Personal Caro SaMces [/] 50% 5328 5313 3312.760 2.99 5104,460 516,484 6 98.1% 1.52 4.1 524,984 LI 60%
Reading 0295 100% 2110 5105
Sporting Goods. /lobby, and Musical Instrument Stores 100% 5110 5105 5105.025 8.08 513025 $18,038 1 98.1% 1.52 05 524,307 LI 60%
Education 1.5% 100% 5977 3936
Educational Services 100% 5977 5938 $935,962 3.19 5293,310 515,973 18 57.5% 1.52 10.8 $24,209 LI 60%
Miscellaneous
Accounting m
Architectural, Engineering, end Related [7,8]
Spec0le:ed Design Services [7]
Death Caro SeMces [7]
Legal Services pi
Total per 1,000 Market Rate Households
100% 3704 5675
20% 5141 5135 5134.989 1.98 568.116 $33,564 2 08.1% 1.52 1.3 550871 Med
2095 3141 5135 5134,989 2.80 548.141 274,995 1 98.1% 1.52 0.4 5113,684 Above Mod
20% $141 5135 5134,989 3.72 536,333 253888 1 88.15 152 0.4 581,873 Above Mod
20% $141 $135 5134,989 3.47 $38,850 338,983 1 88.10 1.52 0.7 $56,052 Mod
2095 5141 $135 5134,989 2.76 548,852 255,734 1 981% 1.52 DA $129,940 Above Mod
211 126.0
Per Table 4, the rental of a 2 Bedroom apartment requires a household income o/ 564,000
[1] Percent of income spent per category is based on the 2013 Consumer Expenditure Survey data for households at this income level. Note that the sum of the categories included in this analysis is well below the total expenditures of households
at this income level, and thus represents a conservative estimation of job creation and housing impacts. Expenddure categories not incorporated due to data constraints include taxes, housing and lodging, most utilities, tobacco, health insurance,
permnadde insurance, cash contributions, and financing charges.
[2] Where multiple business types are likely to prc4de goods and senrices in the expenditure category, EPS has estimated the proportion accruing to each business type.
[3] 2013 expendiues converted to 2007 dollars using the Consumer Price Index from the Bureau of Labor StalisW
[4] BLS data indicates that 125% of relaiyrestaumnt workers are age 16-19, but en average ofoNy 1.9% of workers in other industries. EPS has assumed that such young workers do not form their own househo
[5] Based on 2010 Census data for Cdy N Palm Desert, calculated as the number of labor forcer divided by the number of "households with eamit5
[6] Part of the Utilities, Fuels, and Public Services category, which also includes natural gas, electricity, and telephone services. Natural gas, electricity, and telephone services not estimated because data was net available in the 2007 Economic
Census.
[7] Riverside County data not available from 2007 Economic Census. Gross receipts to wages and 2007 average wage thus based on statewide d
[8] Note that average salary reported for architecture, engineering and related industries reflects the full range of employees within the industry, not solely professional and technical staff.
Sources: 2013 Consumer Expenddr0e Survey, U.S. Bureau of Labor Statistics; 2007 Economic Census, U.S. Census Bureau; Census 2010; Economic & Planning Systems, Inc.
A-3
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Table A.4
Estimated Average Annual Household Expenditures and Associated Employment Generation -3 Bedroom
Palm Desert Housing Impact Fee, EPS 0141134
Expenditure category/
Business Type
Calwls0on
%of Household
Income Spent
per Category [11
Is or ategory
2007 Gross
Expenditure per 2013 Expenditures XPentlimrts Receipts
Ra.Type
vslrn Expenditures [3] per 1000 . .Wa9e3
A, c=Income •a• d=c•[Nfla7m e•d•WOO
b mjusfineny
Total 2007Av9.
2007 Total 2007 Avg. 0of %Farming Workers/Income
Wages Wage Worker HH [4] HH[5] Worker NN Category
HH Income
•
g=e/r h l•g/h / k FJyk m=h•J
Food at Home 8.1% 100% 55,180 $4,964
Food 6 Beverage Stores 100% $5.180 54,964 54,964,181 9.85 5503,868 324,213 21 87.5% 1.52 12.0 $38,698 LI 80%
Food Away From Home 44% 100% $3,770 $3,613
Food Services and Drinking Places 100% 53,770 53,813 $3,812,937 3.52 $1,027,409 513479 78 87.5% 1.52 44.0 $20,429 LI 60%
Alcoholic Beverages 07% 100% $635 5608
Food S Beverage Stores 50% $317 5304 5317.397 9.85 $32,216 $24.213 1 875% 1.52 0.9 $36,698 LI 80%
Food Services and Drinking Places 50% 5317 $304 5317,397 352 590,258 513479 7 87.5% 1.52 4.4 $26429 LI 60%
Housing Maintenance, Repair, Insurance, Other expenses , 22% 100% 31541 51,764
Personal and Househ0d Goads Repair and Maintenance [7] 45% 5829 $794 $793,952 3.72 $213,481 $26,783 8 98.1% 1.52 52 340,593 LI 80%
Buodng Material and Garden Equipment and Supplies Dealer 45% $829 $794 5793,952 851 $63,2991 528,625 3 875% 1.52 1.9 $43,315 Med
Real Esrato and Rental end Leasing 10% 5184 $176 $176,434 546 532,328 $31,974 1 98.1% 1.52 0.7 548,460 Med
Fuel Oil and Other Fuels[6] 02% 100% 5193 $185
Nonstoro Retailers 100% 5193 5185 3184,963 eat $22,256 328212 1 87.5% 1.52 0.5 $42,758 Med
Water and Other Public Services [6] 08% 100% 5687 $659
Waste Management and Remedbtion Services 100% $687 $659 $659,672 4.59 $143,521 544,275 3 99.1% 1.52 2.1 367,105AbOV6 Mod
Household Operations Personal Services 0.6% 100% $478 5456
Nursing end Residential Care Facilities 40% $190 5182 5182498 2.32 $78,728 525,367 3 98.1% 152 2.0 $38,447 LI 80%
Social Assistance [7] 60% $286 5274 5273,745 298 591,753 $23,881 4 98.1% 1.52 2S 536,164 LI 80%
Household Operations Other Household Expenses 12% 100% $1,032 5960
Services to Buildings and °woing,[7] 100% 51,002 5960 8959,750 2.64 5362,953 525,071 14 98.1% 1.52 BA $37,998 LI 80%
Housekeeping Supplies 12% 100% 51.041 5998
Bu1dn➢ Materials and Garden Equipment and Supplies Dealers 10% 5104 $100 $99,777 851 511,725 $25,1325 0 87.5% 1.52 02 $43,385 Med
Food 6 Beverage Stores 35% 5364 5349 5349220 9.85 835.446 $24,213 1 67.5% 1.52 0.8 836,69n LI 80%
General Merchandse 35% 5384 5349 5346220 1066 832.752 521.088 2 87.5% 1.52 09 $31,958 LI 60%
Miscollanooto Stare Retailers 20% 5208 5200 $199554 8.00 $24,952 $17,880 1 87.5% 1.52 0.8 $27,100 LI 60%
Household Fumishings and Equipment 2.6% 100% $2205 ' $2,113
Funibre end Horse Furnishings Stores 40% 5682 $845 5845,074 8.89 5122,639 528,248 4 87.5% 1.52 2.5 $42,813 Med
Electronics and Appliance Stores 40% $882 5845 5845,074 9.39 $89,997 521,059 4 87,5% 1.52 2.5 531,918 LI 60%
General Merohandse Stores 10% 5220 5211 3211268 10.68 $19,814 521,088 1 87.516 1.52 0.5 $31,958 LI 60%
Miscellaneous Store Retailers 10% 5220 $211 $211268 8.00 $26,417 517560 1 87.5% 1.52 0.9 527,100 LI 60%
Apparel and Services 2.8% 100% $2,348 $2.250
Cbthkm and Clothing Accessories 5bres 40% $939 5900 5600,151 a49 $109,028 516,280 7 87.5% 1.52 3.8 524,688 LI 60%
General Merchandse 40% $939 $900 3900,151 1068 $84.423 $21,088 4 87.5% 1.52 22 $31,958 LI 60%
Miscellaneous Store Retailers 10% 5235 $225 $225,038 8.00 $28,139 517,580 2 87.5% 1.52 0.9 $27,100 LI 60%
Personal and Household Goods Repair end Maintenance [7] 5% $117 5113 5112,519 3.72 530,255 $26,783 1 87S% 1.52 0.7 540,593 LI 80%
Dry Cleaning and laundry SeMces [7] 5% 5117 5113 5112,519 3.17 535,541 $25,028 1, 87.5% 1.52 0.8 537,933 LI 80%
Vehicle Purchases (net outlay) 5.7% 100% 54,836 $4,634
Motor Vehicle and Parts Dealers 100% $4,836 $4,634 $4,654,341 12.42 $373,200 $40,386 0 87.5% 1.52 5, 861,210 Mod
Gasoline and motor ail 4.4% 100% $3,751 53,594
Gasoline Stations 100% 53,751 $3,594 53,594,440 40.34 $89,096 $18204 5 87.518 1.52 28 527,590 LI 60%
Vehicle Maintenance and Repair 1.4% 100% $1,161 51,131
Repair and Maintenance[7] 100% $1,181 $1,131 51,131,355 3.55 8318,980 $29,204 11 88.1% 1.52 7.1 $44,262 Med
Medical Services 1A% 100% 51,157 $1,109
Ambulatory Health Care SeMces 40% $463 $443 3443,499 2.79 $159,198 $46,132 3 98.1% 1.52 22 569,919 Above Mod
General Medcal and Surgical Hospitals[7] 30% 5347 $333 8332,624 263 $126,468 $58,054 2 98.1% 1.52 1.4 587,988AbOVe Mod
Nursing and Residential Care Faciites 30% 5347 $333 $332,624 2 32 $143,492 $25,387 8 88.1% 1.52 37 $38,447 LI 80%
Drugs 0.7% 100% $583 5559 _
Heath and Personal Care Stores 100% $583 5559 $558,998 7.11 $76,631 529,991 3 87.5% 1.52 15 545,455 Med
Medical Supplies 02% 100% 5197 $189
Health mid Personal Cara Stoma 100% 5197 $189 3189,073 7.11 $26,596 529,991 1 e7.5% 1.52 0.5 545,455 Med
Enterainment Fees and Admissions 0.8% 100% 5705 $678
Arta, Entertainment 6 Recreation 100% 5708 5678 5678,196 4.27 $158,886 $24,001 7 87.5% 1.52 3.8 $38,377 LI 80%
Audio and Visual Equipment and Services 1.5% 100% $1,272 $1,219
Electronics and Appliance Stores 100% 51,272 $1,219 51,218,698 9.39 5129,706 521,059 8 87.5% 1.52 3.8 531,918 LI 60%
Pets, Toys, Hobbies, and Playground Equip.
Sporting Goods, Hobby, end Musical Instrument Stores
Miscellaneous Store Retailers
Veterinary Services [7]
Other Entertainment Supplies, Equipment, and Services
Sporting Goods, lobby, and Musical Instrument Stores
Photographic Services [7]
Personal Care Products and Services
Unspecdod Retail
Personal Care Services 9
•
Reading
Spodng Goods. lobby, and Musical Instrument Stores
1.2% 100% 51.003 5981
40% 5401 $384 $384,311 808 $47.662 316,038 3 875% 1.52 1.7 324,307 LI 60%
401i 5401 5384 $384,311 8.00 548,054 $17,880 3 87.5% 1.52 1.8 $27,100 LI 60%
20% $201 $192 5192,1513 2.81 568,296 $34,148 2 98.1% 1.52 13 551,755 Med
0.5% 100% $428 $408
85% 5382 5347 5346,754 806 543,004 518,038 3 87.5% 1.52 1.5 524,307 LI 60%
15% 564 561 551,192 4.55 813,436 522,554 1 98.1% 1.52 04 534,183 LI 80%
1.0%
100% 5869 3832
50% 5434 5416 5416,166 5.00 $52,038 517,880 3 87.518 1.52 1.7 $27,100 LI 60%
50% 5434 5410 5418,166 2.99 5138,997 518,484 8 98.1% 1.52 5.5 124,904 LI 60%
02% 100% 5146 $140
100% 5148 5140 $139,750 0.0e $17,332 $16,038 1 98.1% 1.52 0.7 $24,307 LI 60%
Education 1.5% 100%
Educational Services 100%
Miscellaneous
Accounting[7]
Architectural, Engineering, and Related [7,9]
spoclaraed Design Services [7]
Death Caro SeMces [71
Legal Services [7]
Total per 1,000 Market Rate Households
31,300
1 51,300
51,245
$1,245 51,245,415 3.19 5390.286 515,973 24 875% 1.52 14.1 524,209 LI 60%
1.1% 100% $937 $898
20% 3187 5180 $179,819 198 590,637 $33564 3 88.10 1.52 1.7 $50,871 Med
20% $187 5180 $179,619 280 864,057 374,995 1 98.1% 1.52 0.6 8113,664Ab0Ve Mod
2054 $187 5180 5179,619 3.72 $48,345 551,680 1 98.1% 1.52 0.8 581,673Ab0ve Mod
20% $187 $180 $179,619 3.47 551,694 536,983 1 98.1% 1.52 0.9 859052 Mod
20% $187 $180 $179,819 2.76 565,044 $65,734 1 68.10 1.52 2,9 5129,940Ab0Ve Mod
259 187.7
Per Table 4, the rental of a 3 Bedroom apartment requires a 1lousehold income of 585,160
[1] Percent of Income spent per category is based on the 2013 Consumer Expenditure Survey data for households at this income level. Note that the sum of the categories included in this analysis is well below the total expenditures of households
at this income level, and thus represents a conservatrve estimation ofjob creation and housing impacts. Expenditure categories not incorporated due to data constraints include taxes, housing and lodging, most utddiee, tobacco, health insurance,
personaNde Insurance, cash contributions, and financing charges.
[2] Where m146p]e business typos are likely to provide goods and services in the expenditure category, EPS has estimated the proportion aaruing to each business type.
[3] 2013 expenditures converted to 2007 dollar using the Consumer Price Index from the Bureau o1 Labor Statist'.
[4] BLS data Indicates that 125% of retail/restaurant workers are age 16-19, but an average of ordy 1.9%of workers in other industries. EPS has assumed that such young worker do not farm their awn househo
[5] Based on 2010 Census data for Cdy of Palm Desert, calculated as the number of"labor farce divided by the number of 'households with eamir3
[6] Part of the Utilities, Fuels, and Public Services category, winch also includes natural gas, electricity, and telephone services. Natural gas, electricity, and telephone services not estimated because data was not available In the 2007 Economic
Census
[71 Riverside County data not available from 2007 Economic Census. Gross receipts to wages and 2007 average wage thus based on statewide d
[8] Nate that average salary reported for architecture, engineering and related industries reflects the oil range of employees within the industry, not solely professional and technical staff.
Source: 2013 Consumer Expenditure Survey, U.S. Bureau o/ Labor Statistics; 2007 Economic Census, U.S. Census Bureau; Census 2010; Economic 6 Planning Systems, Inc
A-4
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Table A-5
Representative Government Employment and Wages, 2013 [1]
Palm Desert Housing Impact Fee, EPS #141134
Item
Govt.
2013 Govt Govt. Empl/ Govt. Employee
Employment 2013 MSA 1,000 Employee 2013 Avg. HH Income 2013 Income
[2] Total HH [3] County HH HH [4] Wage [2] [4] Category [5]
Protective Service Occupations 33,990 1,297,675 26 17.3 $49,516 $83,715 Above Mod
Preschool Teachers, Except Special
Education 3,170 1,297,675 2 1.6 $30,837 $52,135 Med
Kindergarten Teachers, Except Special
Education 2,250 1,297,675 2 1.1 $68,240 $115,372 Above Mod
Elementary School Teachers, Except
Special Education 17,170 1,297,675 13 8.7 $73,835 $124,831 Above Mod
Middle School Teachers, Except Special
and Vocational Education 5,170 1,297,675 4 2.6 $75,221 $127,174 Above Mod
Secondary School Teachers, Except
Special and Vocational Education 6,370 1,297,675 5 3.2 $70,952 $119,957 Above Mod
Special Education Teachers, Preschool,
in
Kindergarten, and Elementary School
2,280 1,297,675 2 1.2 $79,187 $133,879 Above Mod
Special Education Teachers, Middle School 640 1,297,675 0 0.3 $69,495 $117,493 Above Mod
Special Education Teachers, Secondary
School 930 1,297,675 1 0.5 $68,281 $115,441 Above Mod
Teachers and Instructors, All Other 2,610 1,297,675 2 1.3 $58,528 $98,952 Above Mod
Bus Drivers, Transit and Intercity 1,020 1,297,675 1 0.5 $39,593 $66,939 Mod
Bus Drivers, School 4,710 1,297,675 4 2.4 $34,959 $59,104 Mod
Total
62 40.8
[1] Not a comprehensive list of govemment employment. Rather a sampling of government jobs for which employment is likely to be directly affected by
increases in local population.
[2] Government employment and wages based on 2013 Occupational Employment Statistics data for Riverside -San Bernardino -Ontario MSA.
[3] Riverside -San Bernardino -Ontario MSA figure from 2013 ACS Census data.
[4] Assumes 1.52 workers per working household per 2009-2013 Census data.
[5] See Table 4.
Sources: 2013 Occupational Employment Statistics, CA Employment Development Department; US Census; Economic & Planning Systems, Inc.
Economic 8 Planning Systems, Inc. 2/6/2015 P:1141000s1141134PalmDesertlMode11141134rentmodel020515.xlsx
APPENDIX B:
Income Levels for Worker Households
Table B-1
Table B-2
:Table B-3
TableB-44:
Household Generation per 1,000 Market Rate Units -
Studio
B-1
Household Generation: per1,000 Market.Rate: Units -
1 Bedroom B-2
Household Generation per .1,000 Market Rate. Units -
•2.Bedroom
Household: Generation per 1,000 Market Rate Units
3 Bedroom B-4:
B-3 ::
Table B-1
Household Generation per 1,000 Market Rate Units - Studio
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total - '
Employees HH [1] Very Low Low (60%) Low (80%) Med Mod Above Mod
Retail
Unspecified Retail . 2 1 0 1 0 0 0 0
Food & Beverage Stores 17 10 0 0 10 0 0 0
Food Services and Drinking Places 49 29 29 0 0 0 0 0
Health and Personal Care Stores 3 2 0 0 0 2 0 0
General Merchandise 4 2 0 2 0 0 0 0
Fumiture and Home Fumishings Stores 2 1 0 0 0 1 0' 0
Building Material and Garden Equipment and Supplies Dealer 2 1 0 0 0 1 0 0
Electronics and Appliance Stores 7 4 0 4 0 0 0 0
Clothing and Clothing Accessories Stores 4 2 2 0 0 0 0 0
Motor Vehicle and Parts Dealers 6 3 0 0 0 0 0 3.
Gasoline Stations 4 2 0 2 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 3 2 2 0 0 0 0 0
Miscellaneous Store Retailers 4 2 0 2 0 0 0 0
Nonstore Retailers 0 0 0• 0 0 0 0 0
Arts, Entertainment, & Recreation 3 2 0 0 2 0 0 0
Medical/Health
Ambulatory Health Care Services 2 1 0 0 0 0 0 1
General Medical and Surgical Hospitals 1 1 0 0 0 0 0 1
Nursing and Residential Care Facilities 4 3 0 0 3 0 0 0
Social Assistance 2 1 0 0 1 0 0 0
Services
Personal and Household Goods Repair and Maintenance
Services to Buildings and Dwellings
Waste Management and Remediation Services
Real Estate and Rental and Leasing
Personal Care Services
Dry Cleaning and Laundry Services
Auto Repair and Maintenance
Veterinary Services
Photographic Services
Educational Services
Accounting
Architectural, Engineering, and Related
Specialized Design Services
Death Care Services
Legal Services
Govemment
Total HH Generated Per 1,000 Market -Rate Units
of Total Affordable Households
Total Income -Qualified HH Generated Per 100 Market -Rate Units 12
6 4 0 0 4 0 0 0
9 6 0 0 6 0 0 0
2 2 0 0 0 0 0 2
1 0 0 0 0 0 0 0
5 3 3 0 0 0 0 0
1 0 0 0 0 0 0 0
7 5 0 0 0 5 0 0
1 1 0 0 0 1 0 0
O 0 0 0 0 0 0 0
9 5 5 0 0 0 0 0
2 1 0 0 0 1 0 0
1 0 0 0 0 0 0 0
1 0 0 0 0 0 0 0
1 1 0 0 0 0 0 1
O 0 0 0 0 0 0 0
62 41 0 0 0 2 3 36
226 139 41 11 26 13 3 45
1 0 0 0 0 0
4.1 1.1 2.6 1.3 0.3 0.0
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount far other industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economc d Planning Systems, lne. 2/51015 P:1141000s1141134PahnDeserfModell41134ren1modo1020515.x1sx
Table B-2
Household Generation per 1,000 Market Rate Units -1 Bedroom
Palm Desert Housing Impact Fee, EPS #141134
Industry .
Total Employees HH (1] Very Low Low (60%) Low (80%) Med Mod Above Med
Retail
Unspecified Retail 2 1 0 1 0 0 0 0
Food & Beverage Stores 18 11 0 0 11 0 0 0
Food Services and Drinking Places 69 35 35 0 0 0 0 0
Health and Personal Care Stores 3 2 0 0 0 2 0 0
General Merchandise 4 2 0 2 0 0 0 0
Fumiture and Home Fumishings Stores 3 2 0 0 0 2 0 0
Building Material and Garden Equipment and Supplies Dealer 2 1 0 0 0 1 0 0
Electronics and Appliance Stores 8 5 0 5 0 0 0 0
Clothing and Clothing Accessories Stores 4 2 2 0 0 0 0 0
Motor Vehicle and Parts Dealers 6 4 0 0 0 0 0 0
Gasoline Stations 4 2 0 2 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 6 3 3 0 0 0 0 0
Miscellaneous Store Retailers 5 3 0 3 0 0 0 0
Nonstore Retailers 1 0 0 0 0 0 0 0
Arts, Entertainment, & Recreation 4 3 0 0 3 0 0 0
Medical/Health
Ambulatory Health Care Services 3 2 0 0 0 0 0 0
General Medical and Surgical Hospitals 2 1 0 0 0 0 0 0
Nursing and Residential Care Facilities 6 4 0 0 4 0 0 0
Social Assistance 2 1 0 0 1 0 0 0
Services
Personal and Household Goods Repair and Maintenance 5 3 0 0 3 0 0 0
Services to Buildings and Dwellings 11 7 0 0 7 0 0 0
Waste Management and Remediation Services 2 2 0 0 0 0 0 0
Real Estate and Rental and Leasing 1 0 0 0 0 0 0 0
Personal Care Services 6 4 4 0 0 0 0 0
Dry Cleaning and Laundry Services 1 1 0 0 1 0 0 0
Auto Repair and Maintenance 8 5 0 0 0 5 0 0
Veterinary Services , 1 1 0 0 0 1 0 0
Photographic Services 0 0 0 0 0 0 0 0
Educational Services 15 9 9 0 0 0 0 0
Accounting 2 1 0 0 0 1 0 0
Architectural, Engineering, and Related 1 0 0 0 0 0 0 0
Specialized Design Services 1 0 0 0 0 0 0 0
Death Care Services 1 1 0 0 0 0 0 0
Legal Services 0 0 0 0 0 0 0 0
Govemment 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units
Total Income -Qualified HH Generated Per 100 Market -Rate Units [2]
258 158 52 13 30 14 3 36
5 1 3 1 0 0
11] Assumes 1.56 workers per worker household based an the 2011 ACS Census. Includes a 12.5% discount for retail and 1.9% discount for other Industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic& Planning System* Ina 2/52015 P..141000s1141134PahnDeseMModeni41134xenbnode1020515x1sr
Table B-3
Household Generation per 1,000 Market Rate Units - 2 Bedroom
• Palm Desert Housing Impact Fee, EPS #141134
Industry
Total
Employees HH [1] Very Low Low (60%) Low (80%) Med Mod Above Med
Retail
Unspecified Retail 2 1 0 1 0 0 0 0
Food & Beverage Stores 18 10 0 0 10 0 0 0
Food Services and Drinking Places 62 . 36 36 0 0 0 0 0
Health and Personal Care Stores 3 2 0 0 0 2 0 0
General Merchandise 5 3 0 3 0 0 0 0
Furniture and Home Fumishings Stores 3 2 0 0 0 2 0 0
Building Material and Garden Equipment and Supplies Dealer 3 2 0 0 0 2 0 0
Electronics and Appliance Stores 8 5 0 5 0 0 0 0
Clothing and Clothing Accessories Stores 5 3 3 0 0 0 0 0
Motor Vehicle and Parts Dealers 7 4 0 0 0 0 0 0
Gasoline Stations 4 2 0 2 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 5 3 3 0 0 0 0 0
Miscellaneous Store Retailers 5 3 0 3 0 0 0 0
Nonstore Retailers 1 0 0 0 0 0 0 0
Arts, Entertainment, & Recreation 5 3 0 0 3 0 0 0
Medical/Health
Ambulatory Health Care Services 3 2 0 0 0 0 0 0
General Medical and Surgical Hospitals 2 1 0 0 0 0 0 0
Nursing and Residential Care Facilities 7 4 0 0 4 0 0 0
Social Assistance 3 2 0 0 2 0 0 0
Services
Personal and Household Goods Repair and Maintenance 7 4 0 0 4 0 0 0
Services to Buildings and Dwellings 11 7 0 0 7 0 0 0
Waste Management and Remediation Services 2 2 0 0 0 0 0 0
Real Estate and Rental and Leasing 1 0 0 0 0 0 0 0
Personal Care Services 6 4 4 0 0 0 0 0
Dry Cleaning and Laundry Services 1 1 0 0 1 0 0 0
Auto Repair and Maintenance 8 5 0 0 0 5 0 0
Veterinary Services 2 1 0 0 0 1 0 0
Photographic Services 0 0 0 0 0 0 0 0
Educational Services 18 11 11 0 0 0 0 0
Accounting 2 1 0 0 0 1 0 0
Architectural, Engineering, and Related 1 0 0 0 0 0 0 0
Specialized Design Services 1 0 0 0 0 0 0 0
Death Care Services 1 1 0 0 0 0 0 0
Legal Services 1 0 0 0 0 0 0 0
Govemment 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units 272 167 57 14 32 15 3 36
Total Income -Qualified HH Generated Per 100 Market -Rate Units [2[ 6 1 3 2 - 0 0
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for other Industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Economic 3 Planning Systems, Inc. 2/52015 P:114I000s1141134PoImDesertwoden141134rentmodeI020515oIc
Table B-4
Household Generation per 1,000 Market Rate Units - 3 Bedroom
Palm Desert Housing Impact Fee, EPS #141134
Industry
Total •
Employees HH 11] Very Low Low (60%) Low (80%) Med Mod Above Med
Retail
Unspecified Retail 3 2 0 2 0 0 0 0
Food & Beverage Stores . 24 14 0 0 14 0 0 0
Food Services and Drinking Places 83 48 48 0 0 0 0 0
Health and Personal Care Stores 4 2 0 0 0 2 0 0
General Merchandise 6 4 0 4 0 0 0 0
Fumiture and Horne Fumishings Stores 4 3 0 0 0 3 0 0
Building Material and Garden Equipment and Supplies Dealer 4 2 0 0 , 0 2 0 0
Electronics and Appliance Stores 10 6 0 6 0 0 0 0
Clothing and Clothing Accessories Stores 7 4 4 0 0 0 0 0
Motor Vehicle and Parts Dealers 9 5 0 0 0 0 0 0
Gasoline Stations 5 3 0 3 0 0 0 0
Sporting Goods, Hobby, and Musical Instrument Stores 7 4 4 0 0 0 0 0
Miscellaneous Store Retailers 7 4 0 4 0 0 0 0
Nonstore Retailers 1 0 0 0 0 0• 0 0
Arts, Entertainment, & Recreation 7 4 0 0 4 0 0 0
Medical/Health
Ambulatory Health Care Services 3 2 0 0 0 0 0 0
General Medical and Surgical Hospitals 2 1 0 0 0 0- 0 0
Nursing and Residential Care Facilities 9 6 0 0 6 0 0 0
Social Assistance 4 2 0 0 2 0 0 0
Services
Personal and Household Goods Repair and Maintenance 9 6 0 0 6 0 0 0
Services to Buildings and Dwellings 14 9 0 0 9 0 0 0
Waste Management and Remediation Services 3 2 0 0 0 0 0 0
Real Estate and Rental and Leasing 1 1 0 0 0 1 0 0
Personal Care Services 8 5 5 0 0 0 0 0
Dry Cleaning and Laundry Services 1 1 0 0 1 0 0 0
Auto Repair and Maintenance 11 7 0 0 0 7 0 0
Veterinary Services 2 1 0 0 0 1 0 0
Photographic Services 1 0 0 0 0 0 0 0
Educational Services 24 14 14 0 0 0 0 0
Accounting 3 2 0 0 0 2 0 0
Architectural, Engineering, and Related 1 1 0 0 0 0 0 0
Specialized Design Services 1 1 0 0 0 0 0 0
Death Care Services 1 1 0 0 0 0 0 0
Legal Services 1 0 0 0 0' 0 0 0
Govemment 62 41 0 0 0 2 3 36
Total HH Generated Per 1,000 Market -Rate Units 342 209 76 18 42 19 3 36
Total Income -Qualified HH Generated Per 100 Market -Rate Units 12: 8 2 4 2 0 0
1
[1] Assumes 1.69 workers per worker household based on the 2010 Census. Includes a 12.5% discount for retail and 1.9% discount for other industries to account for workers under age 20.
[2] Excludes above moderate -income households because these incomes are adequate to acquire market -rate housing.
Source: Economic & Planning Systems, Inc.
Emnomc & Planning Systems, lnc. 2/5,2015
P:1141000s1141134Pa/mOeserMAcdeR14ri34,entmodo10205r5/dar