HomeMy WebLinkAboutSUPPTL INFO - Fair Housing Rprt The City of Palm Desert
Analysis of Impediments to
Fair Housing Report
2407 through 2011
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Submitted By: Frankie Riddle
Director of Special Programs
June 2007
INDEX
I. Introduction..................................................................................................... 3
II. Community Profile.................................................................................... 3 — 7
A. Population and Ethnicity Characteristics ........................................ 3 —4
B. Income Characteristics....................................................................4 - 5
C. Employment and Transportation .....................................................5 - 6
D. Housing ...........................................................................................6 - 7
III. Methodology/Statistical Findings..........................................................8 - 11
IV. Impediments to Fair Housing Choice.................................................11 - 21
A. Identification of Fair Housing Impediments by the FHCRC ........... 11 14
B. Housing Sales and Rental........................................................... 14 - 15
C. Fair Housing Audit: Sale, Rental, and Financing........................ 16 - 17
D. Public Policies and Actions. ........................................................ 17 - 19
1. Background ............................................................................. 17
2. Zoning and Land Use Ordinances..................................... 17 - 18
3. General Plan ..................................................................... 18 - 19
4. Taxation ................................................................................... 19
E. Housing Program Administrative Policies ....................................20 - 21
1. Housing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
2. Redevelopment Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
3. Community Development Block Grant Program (CDBG) . . .20 - 21
4. HOME Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5. Emergency Shelter Grants Program . . . . . . . . . . . . . . . . . .21
6. Fair Housing Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
V. Analysis of Findings .......................................................................... 21 - 26
VI. Actions to Remedy Findings/Impediments........................................26 - 28
VII. Conclusions.........................................................................................28 - 29
VIII. Appendix....................................................................................................30
2
I. Introduction:
The City of Palm Desert was incorporated on November 26, 1973, and became a
Charter City on December 1, 1997, but still maintains a Council/Manager form of
government. The City is located approximately 117 miles south of Los Angeles
and encompasses approximately 26 square miles within the center of the
Coachella Valley.
The City became an Entitlement City in FY 2003/04; however, the County of
Riverside had just undertaken its Analysis of Impediments to Fair Housing, which
included Palm Desert. Therefore, the City was not required to undertake the
Analysis of Impediments at that time. Since the City currently operates under the
County of Riverside's Analysis of Impediments to Fair Housing Study (AI Study),
but is required to undertake and prepare its own study this report complies with
HUD's mandate. Therefore, pursuant to 24 CFR 570.904(c)(1) of the Community
Development Block Grant (CDBG) regulations the City has prepared its AI Study.
The purpose of this study is to determine the impediments to fair housing within
the City and how the City will address those impediments. The study identifies
disparities in fair housing choice in sale and rental of dwellings, the provision of
housing brokerage services, the provision of financing for housing, insurance,
public policies and actions, and administrative policies concerning community
development and housing activities.
Palm Desert endeavors to ensure that all residents of the City are treated fair and
equitable in relation to fair housing choice in the rental or purchase of a unit. To
that end, the City will encourage and educate residents,
landlords/owners/managers, and businesses on fair housing laws and
regulations and work to further fair housing on a City-wide basis.
II. Community Profile:
A. Population and Ethnicity Characteristics:
According to the 2000 census, the population of the City was 41,155 with
a median income of$48,316. The Department of Finance estimates the
2007 population for Palm Desert to be 49,752 a difference of 8,597
(approximately a 21% increase). These numbers were calculated as of
January 1, 2007.
Outlined within Table 1 are charts that reflect population and ethnicity of
the City as given by the 2000 Census and the Department of Finance:
Table 1
Ethnicity 2000
Number Percent
White non-His anic 31,919 77.6
His anic of Latino of an race 7,031 17.1
Black non-His anic 446 1.0
Asian 1,036 2.5
3
Native Hawaiian/Other Pacific 34 0.1
Islander
American Indian/Alaska Native 117 0.3
Other 572 1.4
Total 41,155 100
Source: 2000 Census and CHAS Table 1A and Dept.of Finance
Table 2 outlines the Census Tracts that not only house the majority of the
City's low to moderate-income residents, but also any concentration of
minority population(s). The table is based on Census 2000 information
under Total Population by Race within the noted Census Tracts:
Table 2
Census Census Census Census Census
Race Tract No. Tract No. Tract No. Tract No. Tract No. Total
449.11 449.13 451.06 451.07 451.08 Po ulation
Total 5,909 5,802 6,138 6,661 8,234 48,186
White Alone 4,080 4,828 4,755 4,278 4,309 35,739
Black or African
American Alone 73 68 43 83 87 495
American Indian and
Alaska Native Alone 28 22 37 22 56 187
Asian Alone 76 130 127 188 183 1,056
Native Hawaiian and
Other Pacific
Islander Alone 5 2 13 13 2 40
His anic or Latino 1,038 515 800 1,369 2,400 7,031
Some other Race
Alone 447 146 259 552 991 2,666
Two or More Races 162 91 104 156 206 972
Source: 2000 Census
B. Income Characteristics:
The median household income for the City is $48,316 as reported in the
2000 Census. Table 3 reflects income distribution as reported by the
Census Bureau:
Table 3
Income Distribution in the Cit of Palm Desert
Household Income Total Households Percent
Less than $10,000 1,413 7,3
$10,000 to$14,999 1,043 5.4
$15,000 to$19,999 961 5.0
$20,000 to$24,999 1,167 6.0
$25,000 to$29,999 1,129 5.8
$30,000 to$34,999 1,177 6.1
$35,000 to$39,999 1,276 6.6
$40,000 to$44,999 g2g 4 g
$45,000 to$49,999 gp7 4 7
$50,000 to$59,999 1,905 g,g
$60,000 to$74,999 1,810 9.3
$75,000 to$99,999 1,938 10.0
$100,000 to$124,999 1,263 6.5
4
$125,000 to $149,999 656 3.4
$150,000 to $199,999 g�5 4 2
$200,000 or more 982 5.1
Total Number 19,370 100
Source: 2000 Census and CHAS
The above numbers indicate that approximately 10,001 households are at
or below the median income level of$48,316 (income continues up to
$49,999). This number is reduced to approximatety 8,166 households if
estimating the number of households with incomes at or below 80 percent
of the median income in the amount of$38,653 (income continues up to
$39,999).
C. Employment and Transportation:
Employment:
According to the 2000 Census there were 18,203 persons age 16 and
over in the labor force. This number represents 52 percent of the Palm
Desert labor force. At the other end is the unemployment rate with an
average of 3.1, which fluctuated between 2.6 in December and 3.7 in July
of 2000. The higher rate of unemployment could be associated with the
seasonal employment due to agriculture and retail industries, which
fluctuate due to the seasonal nature of each area. More recent data from
the Bureau of Labor Statistics reflect the Palm Desert labor force as of
March 2007 at 25,881, employment at 25,128, unemployment at 753, and
unemployment rate at 2.9, which is comparable unemployment rate with
the 2000 rate.
Palm Desert is considered the economic HUB of the Coachella Valley.
More recent numbers reflect that there are approximately 7,810 business
licensed in Palm Desert out of that number 4,281 are located within the
City as reported by the City's Business License Department in March
2007. However, it should be noted that these are just those with currently
business licenses not unlicensed businesses/persons operating without a
license as reflected by the 2000 Census.
The major occupations as recorded in the 2000 Census for males and
females have been separated; however, it should be noted that retail is a
primary industry for both genders. The following is a breakdown of male
vs. female top six (6) fields:
5
Male: Female:
1. Construction 1,194 Health Care 1,082
2. Food Service 1,141 Food Service 1,134
3. Retail Trade 1,085 Retail Trade 1,082
4. Art & Entertainment 871 Ed. Service 856
5. Professional 685 Art & Entertainment 616
6. Finance & Insurance 459 Real Estate 472
Transportation:
The primary mode of transportation is the use of private vehicles. Other
forms of transportation are carpool, public transportation, motorcycle, and
other non-motorized forms of transport. The mean travel time to work was
19.7 minutes as reflected in the 2000 Census; however, since 2000,
tremendous growth has continued to impact traffic in Palm Desert and
throughout the Coachella Valley, which seems to have caused traffic to
become more congested thus increasing travel time to work to
approximately 30 minutes. According to the 2000 Census there are
17,037 workers 16 years of age or older traveling on our roads either to
work or for other reasons; of this number, 9,017 are working outside of the
home while 8,020 worked in their place of residence but more than likely
utilized vehicles and roads for meetings and other business related
reasons. According to Coachella Valley Association of Governments
(CVAG) of the top 20 daily traffic (major streets/intersections) volumes for
2006 within the Coachella Valley Palm Desert has nine (9) of those
intersections (e.g., major streets are Washington, Monterey, and Hwy 111)
with the highest traffic volume. Total traffic volume of the 9 locations is
442,748.
D. Housing:
The City of Palm Desert takes a proactive approach to its public housing
program. Palm Desert's Housing Department primary focus is to improve
and increase public housing stock within the City. On the other side is the
private housing stock that is owned by private citizens/businesses and has
been in a growth state for the past few years.
The housing data below represents 2000 Census data, 2004 and 2007 (as
of January 1St of 2004 and 2007) City/County Population and Housing
Estimates according to the California Department relative to private
housing stock. As indicated by Table 4, there has been a continuous
increase in housing construction between 2000, 2004, and 2007; however,
the City along with many other California communities are experiencing a
slow down/down turn in the housing market, which may impact all people
especially those in the low income level or those that were barety able to
finance homes.
6
Table 4
Private Housin Stock
2004 2007 Percent
Housing Type 2000 (as of (as of Increase
1/1/05 1/1/07 2000 vs. 2007
Single Family Units (detached and 20,671 22,386 22,866 10.5°/a
attached
Multi le Famil Units 6,201 7,073 7,219 16.25%
Mobile Homes and others 1,199 3,252 3,309 176%
Total Units 28,021 32,711 33,394 19°/a
Total Occu ied Units 19,184 22,577 23,048 20%
Vacant Units (for rent, for sale, sold- 8,837 10,134 10,346 17%
unoccu ied, recreational, etc.
Source: Census Bureau 1990 and 2000 and Dept. of Finance
As reflected above, there has been continuous growth in the residential
building in Palm Desert between 10 and 16 percent between 2000 and
2007 resulting in an increase of 5,373 units. Mobile homes increased due
to an annexation of two existing mobile home parks not new construction.
The average household size in the United States is 2.59 while the average
family size is 3.14. The average household in Palm Desert is 2.13 with an
average family size of 2.69, which reflects that the statistics while slightly
different are comparable. These numbers are slightly less than the
averages reported for the U.S. as a whole.
Table 5 reflects the median home values as related to median rents and
income. As reflected, the median home price and rent has increased
between 1990 and 2000, but not significantly. Whereas the median
household income has experienced a 29.5 percent increase from 1990 to
2000. It should be noted that according to the Department of Finance,
from 2000 to 2003, the median sales price increased to $262,140;
however, according to the Coachella Valley Economic Partnership the as
of September 2005 the median home price is $471,250, average rent is
$901, the median income is $57,011, and median household income is
$84,035 (no statistical data from the Census Bureau or Department of
Finance available to verify).
Table 5
1990 2000 Percent Change
1990 vs. 2000
Median Household Income $37,315 $48,316 29.5%
Median Home Value $172,600 $176,400 2%
Median Mobile Home Value Unavailable $59,800 N/A
Median Gross Rent $696 $744 .07%
Median Contract Rent $616 $661 .07%
Source: Census Bureau 1990 and 2000
7
IIi. Methodology/Statistical Findings:
The City used two methods of analyzing data for the Analysis of Impediments
Study. The first was to review the City's General Plan, Redevelopment/
Housing's Third Five-Year Implementation Plan (FY 2004/05 through 2008/09)
and Affordable Housing Strategy and Compliance Plan (addresses the City's
public housing stock), Housing Element, and the Fair Housing Council of
Riverside County (FHCRC) Analysis of Impediments Study. The second method
used was the fair housing audit prepared by the FHCRC. The City retained the
organization to research, test, and prepare the audit for this study and to assist in
the identification of impediment areas. The methodology addresses the private
and public sectors as well as rental and mortgage activities within the community.
The first method determines if the City was addressing not only Fair Housing but
Affordable Housing as well. It should be noted that in March of 2005, the City
updated its General Plan and the Housing Element and specifically addressed
fair and affordable housing. However, a review of the above, identified
documents only reaffirmed the City's goal and desire to improve the quality of life
for its residents and to eliminate discrimination not only in its public housing but
also within the community. Through review of these documents staff was also
able to determine areas that may need to be improved upon in order to continue
with the City's goal of advancing affordable and fair housing opportunities within
the community.
The General Plan addresses long range planning to establish long-term goals as
objectives, identifies specific areas for development, zoning and environment
issues and many other areas that have an impact on the City and its residents
and businesses. The Plan also addresses issues related to fair and affordable
housing.
The City contracted with the Fair Housing Council to address tenanUlandlord
issues, disputes/complaints, and discrimination. The organizations also provide
educational and training sessions for residents, landlords/owners/managers, and
businesses related to fair housing laws and regulations, address anti-
discrimination activities, landlord/tenant mediation, and technical and
enforcement assistance.
In 2007, the City contracted with the Fair Housing Council to prepare an Audit
Analysis related to fair housing in Palm Desert. As part of the contract, Fair
Housing conducted tests and undertook research to determine impediments to
fair housing. These results are attached and used as part of this Fair Housing
Analysis of Impediments Study. Later in this report is an analysis of the findings;
however, listed below are the methods used and statistical findings:
The Fair Housing Council selected and trained individuals specifically for this
audit. These trained auditors were utilized to interview with prospective lenders
and real estate/property management firms to determine if discriminatory
practices would be experienced among the protected class. The auditors are
8
assigned to locations that have rental vacancies advertised to pose as home
seekers to collect rental information and to determine if there exist any
discriminatory practices. Differences were measured by any differential
treatment that occurred, which were determined to be different given that all
other factors remained similar. The volunteers who performed these audits are
trained to present themselves in such a way that different treatment can only be
explained by the difference in the audit characteristic. This characteristic must
be one that represents a protected class by either State or Federal Fair Housing
Laws. Disability, national origin and race were the characteristic used to perform
the audits, which were conducted in February 2005.
Auditors were selected as follows: the auditors for disability were both male and
have Hispanic origin. The only difference was that the protected class auditor
was disabled and used a walker while the other was able-bodied; the auditors for
national origin consisted of two Asian auditors, each female, and two Hispanic,
each male. The only variable was that the protected class auditors were born in
another country and spoke limited English. The control auditors were born in the
United States and spoke fluent English; the auditors for race were African
American and Caucasian and each were female. All of the auditors that were
paired off for each individual audit were of closely the same age, average
looking, and given equal and acceptable credit requirements, so that any
difference in treatment can only be attributed to the difference in their audit
characteristic.
The auditors examine each situation and record their experience in detail through
the Auditor Report Form. Although there may be slight differences in treatment,
actual discrimination is determined when housing accommodations or
applications are withheld or misrepresented during a home seekers search for
housing. Home seekers may also experience discrimination because of eligibility
requirements, rules, restrictions or regulations that are unfair, unreasonable or
unequally applied. While the average home seeker is rarely denied a housing
unit outright, they are often given different information about rent, deposits, fees,
qualifications, locations, rules, time of availability, and other factors which weigh
heavily on a home seekers choice of housing. Difference in treatment of this
nature is evidence of housing discrimination. The comparison of the
experiences, through a study of various offerings in the cities helps assess the
status of fair housing and helps diagnose discrimination, which might otherwise
go unrecognized and unchecked.
The report forms were analyzed to determine if there existed any difference in
treatment, receptivity, information request and received, and other specific
factors common to seeking housing. There are four categories utilized to
determine if any differences: (1) Availability, (2) Terms and Conditions, (3)
Tenant Qualifications, and (4) Courtesy/Overall Contribution. The audited sites
were selected randomly within designated areas, which is more in line with actual
actions taken by home seekers. (See attached City of Palm Desert Audit
Analysis, 2007 for specific detailed information regarding audit.)
9
The following Table 6 is a list of City/RDA owned public housing units that were
reported in the City's Five-Year Consolidated Plan. Table 6 reflects new (multi-
family and single-family residences) housing units built, rehabbed, under
construction, purchased, or have low interest rate loans by the RDA to build its
public housing stock after those reported within the City's Five-Year Consolidated
Plan (Table 5) and approved by the City Council. Once projects under
construction and rehabilitated are completed, the City/RDA will have 11 housing
projects within its public housing stock.
The Palm Desert Housing Authority maintains a waiting list for its financial
assistance programs and the housing units. Individuals and families have been
on the waiting list up to two years and sometimes are on more than one waiting
listing. The units are available to the very low, to low and moderate-income
individuals and families. The list below reflects units that are currently available
or soon to be available for occupancy. Attached is a map with the location of
each property:
Table 6
Palm Desert Public Housin Units
No. of No. of Assistance
Name: Bedrooms Units: Pro rams
One Quail Place 156 — one 384 Yes
multi-famil 228—two
Desert Point 32-studio 64 Yes
(multi-family) 26-one
6-two
Neighbors Apartments 24-two 24 Yes
(multi-famil
Taos Palms 16-two 16 Yes
multi-famil
The Pueblos 15-studios 15 Yes
Apartments
seniors onl
Las Serenas 150-one 150 Yes
(seniors onl
Catalina Gardens 48-studios 72 Yes
seniors onl 24-one
Hovely Gardens 72-two 162 Yes
(multi-family) 72-three
18-four
California Villas 141-one 141 Yes
(formerly Country Club
Estates)
multi-famil )
Palm Village 36-two 36 Yes
multi-famil )
Laguna Palms 4-studios 48 Yes
(multi-family) 18-one
26-two
Count Villa e 66-studios 66 Yes
10
multi-famil
La Rocca Villas 27-one 27 Yes
seniors onl
Desert Rose 161- 161 Yes
(single-family homes
for urchase
Falcon Crest 69-three 93 Yes
(single-family homes 24-four
for urchase
Candlewood 26—one 30 Yes
seniors onl ) 4-two
Source: City of Palm Desert Redevelopment Agency
The ethnicity breakdown for residents living within City/RDA owned properties is
as follows: White — Non-Hispanic: 556, Black — Non-Hispanic: 67, American
Indian/Alaska Native: 11, Hispanic 752, Asian/Pacific Islander: 46, and other 57.
Given the City's ethnic makeup and the above distribution, the above numbers is
a fairly proportionate representation of the ethnicity of the population.
Not included in the above table is the list of single-family units and mobile homes
within the community that the City/RDA either owns or has resold. The
Redevelopment Agency retains 30 to 40 year covenants and retains the first right
of refusal on homes purchased for resale. Properties are generally repurchased
to maintain affordable housing stock. RDA does not track ethnicity relative to
properties for purchase. Outlined below are various projects that include the
purchase/sale of homes as part of the public housing stock:
IV. Impediments to Fair Housing Choice:
Identification of Impediments by Riverside County Fair Housing Council:
Identification of impediments to fair housing in and of itself is not an Impediment
to Fair Housing unless it creates an impediment to housing choice because of
membership in a protected class.
A. Discrimination Complaints Received by FHCRC:
Table 10
Discrimination Com laints
Fair Housing Council Annual Report Data for FY 2005/06
and 15t _ 3�d Quarter FY 2006/07
Types of Complaints Number of Complaints
Breakdown
Total Com laints 17
Sex
Male 4
Female 13
Un-identified Sex 0
Ethnicit
11
African American 5
Latino 3
Asian
Native American
White g
Other
Income
Ve Low
Low 15
Moderate 2
Seniors 55+ 1
Head of Household g
Other Data
Rent 16
Bu
Other home seeker �
Com laint Cate ories
Race 5
NationalOri ins
Reli ion
Sexual Orientation �
Familial Status 3
Disabilit 3
Rumford/Unrelated 3
DFEH/HUD � �
Counseled 5
Education 11
Pendin
Other 2
Other Cate ories
Outreach 4
Partici ants 204
Literature Disseminated 338
Walk-Ins
Source: Fair Housing Council of Riverside County
* All inquiries regarding landlord tenant issues are logged by the FHCRC
as "complaints" and reported to the City as such on FHCRC's Client
Service Data Sheets and quarterly reports. However, many complaints
are actually requests for public information and/or clarification regarding
landlord/tenant rights and responsibilities. Further, support of this is
based on the fact that only a small percentage of inquiries appear to
actually turn into cases that are either mediated or referred to an attorney
for litigation.
** This category of inquiries refers to questions affecting Section 8 status
and other related issues and is referred to a local housing authority or
other agency.
12
*** This category of inquiries most often concerns issues related to
unlawful detainer where legal help is needed. The FHCRC has a legal
service referral list of lawyers and public interest law firms that can help
clients with legal issues relating to landlord/tenant problems.
**** The FHCRC provides mediation services between landlord/managers
and tenants in an attempt to resolve disputes in cases where there is a
breakdown in communications between the parties.
Discrimination Complaints:
Complaints relating to housing discrimination involve alleged violations of
both State and Federal Fair Housing Laws as they apply to the rental and
purchase of housing. Under such laws, housing consumers cannot be
treated unfairly or differently based on race, skin color, religion, sex,
national origin, ancestry, marital status, disability, and/or presence of
minor children. When housing discrimination complaints based on one or
more of these categories are received, the FHCRC investigates the
complaint. If the complaint is found to be valid, the FHCRC will attempt to
seek a resolution. If efforts to resolve a case are unsuccessful and the
documentation appears to be weak, the case is given to the State
Department of Fair Employment and Housing (DFEH) for further
investigation.
The Department of Housing and Urban Development (HUD) also contracts
with DFEH to provide case evaluation, investigatory, and prosecutorial
services for most types of fair housing complaints. This contract will allow
HUD to concentrate its resources on discrimination as it relates to lending
institutions, large property management projects, zoning, and the activities
of various housing authorities.
Table 11 below examines the eight categories of housing discrimination
monitored by the FHCRC. The data presented covers complaints
originating from Palm Desert for 21-month period —July 1, 2005 to March
31, 2007.
Table 11
Discrimination Complaints by Classification
Palm Desert: Jul 1, 2005 to March 31, 2007
Classification Race Color National Religio Age Sex *Children/ Handicap/ DFEH/ **Rumford/
Origin n Familial Disabled HUD/ Unruh(other)
Status Other
Total 17 5 0 0 0 1 1 3 3 3 3
Approx. %of Total 30% 0 0 0 5% 5% 15% 15°/a 15% 15%
rounded u )
Source:Fair Housing Council of Riverside County
* Children/Familial Status
13
*'� The Fair Employment and Housing Act, of which the Rumford Fair
Housing Act is now a part, is the primary State law banning discrimination
in housing accommodations. The Unruh Civil Rights Act was passed by
the State Legislature to ban discrimination in all business establishments.
While prohibiting the more common types of discrimination, the Unruh Act
has also been interpreted to prohibit housing discrimination against
children as well as on any arbitrary basis, whether or not that basis is
enumerated in the Act.
Table 12 outlines information relevant to the processing and resolution of
discrimination complaints after they are submitted to the Fair Housing
Council. Evaluation of the data is presented in quarterly increments and
covers a 21-month period. A total of 19 complaints were received two
were educated on rights while 17 moved forward in the process.
Table 12
Discrimination Complaints Filed/Conciliated/Referred
Palm Desert Jul 1, 2005 to March 31, 2007
Complaint
Time Period Complaint Cases Cases Cases Referred To: Lacks *Pending
Filed Counselin Conciliated Ed. &Mat. Att DFEH HUD Merit
7/05 to 9/05 5 2 1 2
10/05 to 12/05 1 1
1/06 to 3/06 3 2 1
4/06 to 6/06 1 1
7/06 to 9/06 4 3 1
10/06 to 12/06 3 3
1/07 to 3/07 0
Total 17 11 2 4
Source: Fair Housing Council of Riverside County
* In general, cases that are pending include the following: those waiting
for the completion of testing or the evaluation of completed testing
information; those in need of additional legal documentation; and/or those
waiting for additional information from HUD or DFEH. Pending cases are
carried over on a month-to-month basis.
B. Housing Sales and Rental:
1. Real Estate Practices
Sale of Real Estate:
The method of selling homes in the area is the same as other
communities, which is primarily through a licensed realtor and realtors with
new home development real estate offices. It should be noted that in the
past few years Palm Desert has experienced tremendous growth in new
construction of residential and commercial areas. The sale of homes
through individual property owners and auctions is minimal. There are
approximately 135 real estate offices operating within Palm Desert. This
14
number includes companies with more than one location in the City and
on site real estate offices.
California law requires that realtors be licensed through the California
Department of Real Estate (DRE) as either a real estate agent or broker.
Agents must take courses in Principles of Real Estate and pass a DRE
administered test in order to become licensed. Continuing education is
required with specific time periods for completion. Licenses must be
renewed every four (4) years (continuing education course —mandatory 12
hours for fist renewal and 45 hours thereafter). Fair Housing is a required
topic within the course and there are continuing education classes that
address Fair Housing. Real Estate Agents generally join the local chapter
of the California Association of Realtors. Brokers are required to take
additional classes and continuing educational classes as well as take the
broker's exam through DRE.
The general practice is that those brokers that join the California
Association of Realtors are able to utilize the Multiple Listing Service
(MLS), which is provided through the Association. Utilization includes
listing properties by members only. This limits participation to licensed
brokers who are members and its agents. The majority of homes are
listed and sold through this listing.
Another general practice is that agents work and are paid on a
commission basis that is paid by the seller out of the proceeds from the
sale of a home. Given the real estate setup, it is accepted that in most
cases the agent works for the seller even in new home developments.
This is important since the interests of the buyer may not be fully
protected.
2. Rental of Real Estate:
Rental housing in Palm Desert is offered in several ways: through property
management companies, through on-site rental offices, through real
estate offices, or directly through property owners. The interest in this
case is always for the property owner not the renters/tenants.
In situations where a company is retained to maintain property, agents
must be licensed through DRE as a property manager or broker. As such,
they are required to complete education courses, which address fair
housing. However, if the property owner elects to rent units, then the
educational component is not present and they may not be aware of fair
housing laws. Therefore, in situations such as this violations of fair
housing practices could occur due to lack of knowledge,
misunderstandings, or intentional acts.
15
C. Fair Housing Audit: Sale, Rental, and Financing:
The City of Palm Desert retained the services of the FHCRC to conduct an audit
of rental housing, real estate practices, and mortgage lending institution
practices. Information provided in Section III and IV specifically addresses fair
housing and the FHCRC audit. The FHCRC conducted audit testing of 11
randomly selected sites (D through F were lending institutions and J through K
were real estate offices) for sales and mortgage lending institutions based on
race and national origin. Audit testing of 12 randomly selected property
management companies/offices related to rental housing was also conducted.
See Section IV for specific details related to audit results.
Home Mortqage Disclosure Act Reports:
The City of Palm Desert also evaluated the Home Mortgage Disclosure Act
(HMDA) Reports and Community Reinvestment Act (CRA) Public Evaluations for
lenders operating in Palm Desert as of 2006 or most recent available information.
From data collected in 2007 there are approximately 27 banks and 29
mortgage/loan/real estate loans/savings and loan institutions operating within
Patm Desert. However, many of these institutions do not have corporate offices
located within the City; therefore, the CRA and HMDA information reflects
activities on either a state or county basis. The CRA rating has four categories:
(1) Outstanding, (2) Satisfactory, (3) Needs Improvement, and (4) Substantial
Noncompliance. Table 13 provides the total number and type of loans originated
for income levels less than 50 percent up to 120 percent or more of the
Riverside/San Bernardino (MSA/MD) Median (Table 13-15 reflects MSA/MD
statistics). Table 14 is the HMDA results of the information provided by the
Federal Financial Institution Examination Council (FFIEC) pertaining to loan type
and number to those persons below the 80 percent median income.
Table 13
Total Loan Origination Number and Type
Income Levels: Less than 50% u to 120% or more of MSA/MD Median
FHANA/FmHA Purchase Loan 4,299
Conventional Purchase Loan 134,077
Refinanced Loans 194,016
Home Im rovement Loans 24,096
Total: 356,488
Table 14
Loan Origination and Denial Rates by Type of Loan
HMDA Data: Persons Below 80%of Median Income
Type of Loan Total Number Number Approved No. Closed,
Applications Originated Denied Not Withdrawn
Received Accepted or
Incom lete
FHA/VA/FmHA Purchase 2,192 1,379 312 155 346
Loans
Conventional Purchase 20,299 10,495 4,488 2,582 2,734
Loan
16
Refinanced Loans: 80,029 34,987 21,102 7,685 16,255
Owner-Occu ied
Home Improvement 12,195 4,124 5,296 826 1,949
Loans: Owner-Occu ied
Total All Owner- 114,715 50,985 31,198 11,248 21,284
Occupied Loans:
Source: HMDA Report
A review of HMDA data for owner-occupied loans to persons earning less than
80 percent of the median income to determine the existence of disparate lending
practices based on race or other discriminatory reasons. Results reflected in
Table 15:
Table 15
Loan Origination and Denial Rates by Race or Other Discriminatory Reason
HMDA Data: Person Below 80% of Median Income
Race of Applicant Total Application Loan Origination Loan Denial
Received Number Number
Native American 3,607 1,556 1,119
Asian/Pacific Islander 3,388 1,506 837 ,
Black 5,870 2,552 1,736
His anic 33,972 20,235 9,942
White 59,517 30,309 18,423
Other 150 86 26
Joint 717 500 159
Race NotAvailable 41,160 60,832 13,621
Total: 148,381 117,576 45,863
Note: The balance of the loans not listed was withdrawn, closed, incomplete or
a roved but not acce ted.
Source: HMDA Reports
D. Public Policies and Actions:
1. Background:
A review of the City's public policy documents and related activities were
undertaken as part of the Analysis of Impediments to Fair Housing. In
March of 2004, the General Plan was updated and adopted, which
addresses land use and other aspects related to housing, economic
development, zoning, density, environmental, etc. Areas related to fair
housing and potential impediments have been addressed in this
document.
2. Zoning and Land Use Ordinances:
The zoning ordinance is designed to accomplish objectives identified
within the General Plan. To accomplish objectives that are designed to
create a viable community that offers a good quality of life as well as
economic benefits (e.g., good business and employment). The zoning
ordinance regulates the use, location, area, and dimension of sites for
development as well as many other such aspects of land use which may
17
be deemed necessary for the public peace, health, safety, and general
welfare of the people living and working within the City.
While the zoning ordinance may create potential impediments to fair
housing, the regulations are not so restrictive as to discourage affordable
housing being built. The ordinance establishes a minimum as well as a
maximum structure size. The minimum living floor area, exclusive of
unroofed portions and garages for a single-family detached unit is as
follows: R1, PR, R2, and RE is 1,000 (lot sizes up to 10,000 square feet);
R1 is 1,250 (lot size between 10,000 — 15,000 square feet); and R1 is
1,500 (lot size over 15,000 square feet). Multiple units square footage
(apartments, duplexes, and condominiums): Studio units —600, one-
bedroom —600, two-bedroom — 800, and three-bedroom — 1,200. The
regulations themselves do not prevent affordable housing; however, they
do provide for a better quality living environment.
The City's Building & Safety Department regulates and enforces ADA
under the Uniform Building Code (UBC) to address housing accessibility
for the disabled.
The City of Palm Desert also has its own Housing Department/Authority
that oversees affordable housing in Palm Desert as it relates to public
housing stock and works with private developers where and when
possible to encourage affordable housing units be set aside within
developments. The Redevelopment Agency/Housing Department does
offer incentives for affordable housing through various programs such as
the density bonus program for projects that commit to income restrictions
and a senior overlay, which allows additional units for senior-restricted
units. The increased densities vary, but have no pre-set limits, providing
the greatest possible flexibility to the development community.
3. General Plan:
The City's New Comprehensive General Plan was adopted March 15,
2004, which includes the Housing Element as required by California
Government Code. In addition, State law contains specific requirements
for the preparation and content of the Housing Etements. The Housing
Element addresses description of existing housing types, condition of
existing units, overcrowding, overpayment, homelessness, demand for
affordable housing as well as population, relevant demographics,
household, and socio-economic data.
The City's Redevelopment Agency provides a wide range of services to
residents. These services are designed to implement fair and affordable
housing policies and procedures and to provide information concerning
minority rights under existing fair housing laws. In 2001, Redevelopment
implemented three new assistance programs, which are as follows:
Mortgage Subsidy Program, Rental Subsidy Program, and Homebuyers
18
Program. There are also County and Federal Programs available in the
City of Palm Desert such as: Section 8 Housing Assistance, Senior Home
Repair Program, and First Time Homebuyers Program. In addition, there
is the City owned affordable public housing stock.
Also addressed are possible government constraints to the development
of housing which affect the provision of affordable housing in the
community. However, as outlined within this section of the Housing
Element, the City has actively tried to address conditions that may have a
negative impact on housing, such as rapid permit and application process
system, minimal permit fees and in some cases waiver by City Council,
density bonus program, development standards within the City are not
over-restrictive, enforcement and continuous updating of UBC codes, and
active Code Enforcement to protect renters and homeowners from issues
of public health and safety.
Non-Government Constraints: 1) Economic impact on affordable housing
includes economic costs of land, construction, and financing, which is
more of a regional issue than City; 2) Physical impact relates to the age of
a home that may become a burden with more and more maintenance
required for the upkeep of the home and the associated repair costs; and
3) Environmental impact relates to the City being located south of the San
Andreas Fault. The City is classified as Zone III and IV for seismic activity
in the UBC as such certain standards for construction are imposed. This
may add to the overall costs of housing, however, are necessary for public
health and safety.
Special Housing Needs are also addressed. These are households with
identifiable special needs, as defined by California law for which the City
has planned. These groups include single parent households, farm
workers, the handicapped, and the elderly. The Americans with
Disabilities Act (ADA) requires that all new multi-family construction
include a percentage of units accessible to the handicapped, which the
Building & Safety Department requires compliance and undertakes permit
review and inspections to ensure compliance.
4. Taxation:
Taxes associated with construction related projects may create a potential
impediment to affordable housing. However, the City has not increased its
taxes or created new assessment districts that would impact affordable
housing units. The City also has not implemented taxes on utilities, which
some cities have done.
19
E. Housing Program Administrative Policies:
1. Housinq Authoritv:
The City's Redevelopment Agency oversees the Housing Department that
works in conjunction with the established Housing Authority to administer
the housing program in Palm Desert. The City/RDA is regulated by the
California Community Redevelopment Law as well as those Acts identified
below. Responsibilities include planning strategies to meet identified
needs and creation and implementation of affordable housing programs
and housing projects as well as creating educational brochures, policies,
agreements, etc. that pertain to fair and affordable housing and all
associated laws and regulations. All required documentation is retained
and processed through the department.
Housing Authority is subject to Title VII of the Civil Rights Act of 1964, Title
VIII of the Civil Rights Act of 1968, Executive Order 11063, the
Rehabilitation Act of 1973 and Age Discrimination Act of 1973 and the
HUD regulations promulgated pursuant to those laws. The Housing
Department/Housing Authority is required to complete an Equal Housing
Opportunity Plan. Staff is educated in the laws pertaining to affordable
and fair housing. To date there have been no substantiated complaints of
discrimination or other issues related to Fair Housing.
2. Redevelopment Agency:
The regulations that govern redevelopment in California are contained in
Part I of Division 24 of the California Health and Safety Code, Sections
33050, 33435, 33436, and 33724 and California Community
Redevelopment Law.
Responsibilities include planning strategies to meet identified needs and
creation and implementation of affordable housing programs and housing
projects as well as economic development issues. Part of the
Redevelopment Agency's responsibilities included the Affordable Housing
Strategy & Compliance Plan, which was approved November, 2004. This
document serves as the Agency's Five Year (2004/05 to 2008/09)
Implementation Plan's Housing Component and Ten Year (2004/05 to
2013/2014) Housing Compliance Plan. The Strategy serves as a blueprint
for current and future Agency activities to meet its low and moderate
income housing responsibilities.
3. Community Development Block Grant Program (CDBG):
Under the CDBG Program the City is subject to Section Nos. 570.601 and
570.602 of the CDBG Entitlement Grant Regulations (Final Rule as
published in the Federal Register: 24 CFR Part 570 [53 FR 34437;
September 6, 1988)). The CDBG Entitlement Grant Regulations
20
implement the provisions of Title I of the Housing and Community
Development Act of 1974.
The Community Services Department is responsible for administering the
CDBG Program including program/project approval and funding, program
monitoring, compliance issues, reporting, creating educational brochures,
policies, agreements, etc. that pertain to fair and affordable housing and
other areas identified within the City's Five-Year Consolidated Plan and all
associated laws, regulations, etc. to the U.S. Department of Housing and
Urban Development (HUD). All required documentation is retained and
processed through the department.
4. HOME Program: Not applicable.
5. Emerqencv Shelter Grants Proqram: Not applicable. However, as an
Entitlement City, funding is received but not a sufficient amount to
undertake a program such as an emergency shelter. Therefore, the City
contributes its share of ESG funding to the County of Riverside's
Continuum of Care Program.
6. Fair Housing Outreach:
The City contracts with the Fair Housing Council of Riverside County
(FHCRC), which distributes literature on fair housing laws to the public
and businesses/persons associated with real estate and attend workshops
or other events to further fair housing awareness. Services provided to
the community are designed to promote awareness and knowledge of fair
housing issues and laws as well as to assist in mediation of such cases.
V. Analysis of Findings:
General Comments:
There are two separate analysis that need to take place 1) review of the City's
General Plan, Housing Element, and Affordable Housing Strategy & Compliance
Plan; and 2) the Fair Housing Audit Report.
A review of the City's General Plan confirms that the City has accounted for low
to moderate affordable housing within its developed and undeveloped areas of
the City, and it does not encourage discrimination in its public housing units or
within the community.
Following is a summary analysis of the Rental Housing and Sales and Mortgage
Lending Audit Report conducted and prepared by the Fair Housing Council of
Riverside's and a review of the City reports sited above:
21
Fair Housinq Concerns and Problems
The City contracted with the FHCRC for the purpose of enhancing the quality and
quantity of housing services and to more affirmatively and effectively provides fair
housing rights and responsibilities for all people in Palm Desert. FHCRC has
been tasked with the responsibility of providing tenant/landlord complaint
resolution, educating people and the business community about Fair Housing
Laws and Regulations, fair housing practices, and discriminatory practices.
The first activity of the agency was to undertake education and awareness
activities to promote fair housing opportunities and discrimination within rental
and home ownership. The City then contracted with FHCRC to undertake a Fair
Housing Impediments Analysis, which included testing of apartment
complexes/rentals and real estate and mortgage lending institution practices.
The City will be working to address the findings of FHCRC to educate persons
and businesses on fair housing laws and discrimination practices. The significant
findings of these tests are provided in brief form below as well as being noted
throughout the report in various tables.
The City will work with FHCRC to: (1) create an education awareness program
specifically designed to educate property managers/owners that rent units and
real estate and mortgage institutions on the fair housing and discrimination
practices; (2) increase utilization of state and federal enforcement of housing
rights and development of enforcement avenues; (3) perform audits on a semi-
annual to annual basis. These efforts, over time, should create a positive impact
as a deterrent of unlawful acts of housing discrimination.
AUD_IT_RESULTS: HOUSING RENTAL BASED ON RACE, DISABILITY, AND
NATIONAL ORIGIN:
The audit consisted of 12 interviews addressing the categories of disability,
national origin, and race, which are within the protected classes were the
characteristics used to perform the audits. The small audit sample size
represents a small percentage of a protected class, but is useful in the detection
of different treatment and/or information given within the housing market of the
City.
Trained auditors both male and female interviewed with prospective lenders and
real estate/property managers to determine if any bias existed related to ethnic
and national differences and disabilities as they related to reception and
treatment of the person, information made available, information requested and
other specific factors common to seeking housing (as noted in the Audit
Analysis).
22
AUDIT RESULTS: HOME SALES AND MORTGAGE LENDING BASED ON
RACE AND NATIONAL ORIGIN:
Fair Housing also conducted audits within the home sales and mortgage lending
area to determine if disparate treatment existed within Palm Desert institutions.
Auditors visited 11 sites to determine if there existed differential treatment
resulting in impediments to fair housing. Outlined below are the results of each
site tested/surveyed:
The audit consisted of interviews addressing the categories of disability, national
origin, and race, which are within the protected classes and the characteristics
used to perform the audits. The small audit sample size represents a small
percentage of a protected class, but is useful in the detection of different
treatment and/or information given within the housing market of the City.
The trained auditors that interviewed with prospective lenders and real
estate/property managers were both male and female. The audits were
designed to determine if any bias existed related to ethnic and national
differences and disabilities as they related to treatment/courtesy of the person,
inquiries concerning auditor and/or spouse, information made available,
information requested, disparaging comments, location/steering, and/or other
specific factors common to seeking housing (as noted in the Audit Analysis).
The following table provides a brief breakdown of the audit results and conclusions:
Rental Housing Audit: Based on RACE
Site No. Institution Type Auditor/Tester Class Audit Results
No. 1 Rental Housing Protected Auditor: Female, No finding of differential treatment
African American
Control Auditor: Female,
Caucasian
No. 2 " " Same As Above No findin of differential treatment.
No. 3 " " Same As Above N/A. Different employees saw testers on
different days. As a result, differential
treatment could not be determined.
No. 4 " " Same As Above Testers experienced differential
treatment in Availability and
Courtesy/Contribution Categories in
favor of the Control Tester. No
differences in other categories.
Conclusion: Differential treatment in
favor of Control Tester.
Rental Housing Audit: Based on DISABILITY
No. 1 Rental Housing Protected Auditor: Female, Testers experienced differential
Disabled treatment in the Availability Category in
Control Auditor: Female, favor of the Control Tester. No
Able-bodied differences in other categories.
Conclusion: Differential treatment in
23
favor of Control Tester.
No. 2 " " " " No findin of differential treatment.
No. 3 " " " " No findin of differential treatment.
No. 4 " " " " No findin of differential treatment.
Rental Housing Audit: Based on NATIONAL ORIGIN
No. 1 Rental Housing Protected Auditor: Female, Testers experienced differential
Asian treatment in the Availability Categary in
Control Auditor: Female, favor of the Control Tester and
Caucasian Courtesy/Contribution Category in favor
of the Protected Tester. No differences
in other categories.
Conclusion: Differential treatment in
favor of Control Tester.
No. 2 " " " " N/A. Unable to com lete audit.
No. 3 " " Protected Auditor: Male, No finding of differential treatment.
Hispanic
Control Auditor: Male,
Caucasian
No. 4 " " " " Testers experienced differential
treatment in the Availability Category in
favor of the Protected Tester. No
differences in other categories.
Conclusion: Differential treatment in
favor of Control Tester.
Conclusion: Out of the 12 randomly selected sites, the following results of all audits were found: Two—
N/A, six—No finding of differential treatment, and four—Differential treatment in favor of Control Tester.
It should be noted that the differential treatment is an overall determination based on the category(ies) in
which the Control Tester was favored over the Protected Tester. In some instances, the Protected
Tester was favored over the Control Tester, while in others there was no difference. Differences
detected in the Courtesy/Contribution category that related to courtesy was not used to determine
differential treatment. This is a very ambiguous determination (e.g., agent could have had a bad day or
experience prior to meeting tester, there could have been only a slight difference in how the agent
interacted with the testers). The results of the audit reveal that there could be some discriminatory
practices within the rental housing field or it could simply be a lack of knowledge of the Fair Housing
Laws and Regu�ations or more practically how an agents should be consistent in their interaction (words,
actions, materials, etc. with ossible tenants.
Sales 8� Mortgage Lending Institution: Based on RACE
No. A Lending Protected Auditor: Female, Testers experienced differential
Institutions African American treatment in the following: (1)
Control Auditor: Female, Treatment/Courtesy Category in favor of
Caucasian the Protected Tester, (2) Inquiries in
favor of the Protected Tester, (3) Loan
Terms Exchange in favor of the Control
Tester, and (4) Disparaging Comments—
no difference.
Conclusion: Differential treatment in
favor of Control Tester.
No. B " " " " Testers ex erienced differential
24
treatment in the following: (1)
TreatmenUCourtesy Category—no
difference, (2) Inquiries—unable to
determine differential treatment, (3) Loan
Terms Exchange—no difference, and (4)
Disparaging Comments—no difference.
Conclusion: No finding of differential
treatment.
No. C " " " " Testers experienced differential
treatment in the following: Unable to
determine differential treatment as
testers were unable to meet with the
same person.
Conclusion: N/A
Sites G, H, and I: Questions and audit
criteria different than above sites.
Information provided is the Recap of .
audit.
No. G " " " " Conclusion: No finding of differential
treatment.
No. H " " " " Conclusion: Differential treatment in
favor of Control Tester.
No. I " " " " Conclusion: No finding of differential
treatment.
Sales & Mortgage Lending Institution: Based on NATIONAL ORIGIN
No. D " " Protected Auditor: Male, Testers experienced differential
Japanese treatment in the following: (1)
Control Auditor: Male, Treatment/Courtesy Category— no
Caucasian difference, (2) Inquiries—no difference,
(3) Loan Terms Exchange in favor of the
Protected Tester, and (4) Disparaging
Comments—no difference.
Conclusion: Differential treatment in
favor of Protected Tester.
No. E " " " " Testers experienced differential
treatment in the following: (1)
Treatment/Courtesy Category in favor of
the Protected Tester, (2) Inquiries- no
difference, (3) Loan Terms Exchange in
favor of the Protected Tester, and (4)
Disparaging Comments—no difference.
Conclusion: Differential treatment in
favor of Protected Tester.
No. F " " " " Testers experienced differential
treatment in the folfowing: (1)
Treatment/Courtesy Category in favor of
the Protected Tester, (2) Inquiries in
favor of the Protected Tester, (3) Loan
Terms Exchange—no difference, and (4)
Disparaging Comments— no difference.
Conclusion: Differential treatment in
favor of Control Tester.
Sites J and K: Questions and audit
25
criteria different than above sites.
Information provided is the Recap of
audit.
No. J " " Protected Auditor: Female, Conclusion: Differential treatment in
Hispanic favor of Protected Tester.
Control Auditor: Female,
Caucasian
No. K " " " " Conclusion: No finding of differential
treatment.
Conclusion: Out of the 11 randomly selected sites, the following results of all audits were found: One—
N/A, four— No findings of differential treatment, three — differential treatment in favor of Control Tester,
and three—differential treatment in favor of Protected Tester.
Differential treatment was experienced in all categories in favor of both testers given the specific site
except in the categories of Disparaging Comments. No differential treatment was detected when it came
to the Disparaging Comments Category. It is apparent that education and promotion of Fair Housing
Laws and Regulations is needed. However, it appears as though the differential treatment may be more
from the lack of knowled e of the laws and re ulations than intentional discriminato ractices.
VI. Actions to Remedy Findings/Impediments:
RECOMMENDATIONS:
Based on the impediments revealed in this audit, the following recommendations
are suggested for Palm Desert to continue the alleviation of impediments to fair
housing; some of the recommended strategies may support already existing or
proposed programs within Palm Desert. These suggestions are still included to
emphasize their importance.
The City of Palm Desert should give added attention to the promotion of Fair
Housing laws and regulations in the rental housing market. The audits noted that
there was some differential treatment apparent in both the rental and sale and
mortgage lending institutions. To educate and increase awareness of the
discriminatory practices with emphasis on discouraging this type of practice, the
City will continue to sponsor workshops and contract with the FHCRC to provide
education and counseling relative to Fair Housing laws and regulations. The City
will also ensure that its policies and practices are consistent with this directive.
Recommendations:
• In order to broaden the understanding of the diversity of cultures in these
communities, more education, training, and outreach seminars regarding
fair housing laws and cultural sensitivity issues should be provided to
rental property owners, leasing consultants and agents as well as
apartment owner associations and management companies.
• In seeking a rental unit, signs should be posted at the property to let the
general public know that a unit is available. There is no City Ordinance
that disallows signs being posted. This is probably viewed by many as a
way to keep the rental process selective and preventing others in the
various protected classes from having an opportunity to partake in the
26
rental process. Rental property owners and leasing consultants should be
encouraged to provide written information to all applicants which include
the listings of all available housing, standard information on the terms and
conditions of the application process, posting Fair Housing informational
signs and providing Fair Housing literature. Additionally, more education,
training, and outreach regarding fair housing laws and cultural sensitivity
issues should be provided to local realtors, rental property owners, and
leasing consultants and agents.
• Continue to develop, expand and provide more education and outreach to
housing providers, community organizations, and the general public
concerning housing discrimination, fair housing laws, and services
provided by the Fair Housing Council.
• Outreach programs should be conducted to promote equality in rental
resources for all protected classes, since there is an appearance that a
selective process may be in effect to limit the number of protected class
applicants.
• City employees and staff involved in work related to housing should be
carefully trained to understand how fair housing laws and Americans with
Disability Act (ADA) applies to building codes, zoning, special use permits,
and other housing issues that the audited cities have a responsibility to
understand.
• Audits should be conducted periodically to determine the nature, extent,
and changes to housing practices throughout the City. It is recommended
that additional audits be expanded to include other characteristics such as
sex, sexual orientation, religion, and any other protected classes defined
by law. These audits can be conducted through a contract with the Fair
Housing Council of Riverside County, Inc.
The City of Palm Desert will continue to work with the FHCRC to educate
individuals, businesses, and residents of Fair Housing Laws through such
programs as:
• FHCRC continued education campaign (e.g., education, training,
workshops, brochures, outreach seminars, attendance at business
association, and HOA meetings, etc.) regarding fair housing and culturally
sensitive issues to all within the housing rental, sales and mortgage
lending institutions as well as employees of the City that deal with
housing.
• Rental property owners, managers, and realtors should be encouraged to
provide written information to all applicants which include standard
information on housing complex, unit details, listing of available units,
costs, conditions of application process, etc. for distribution to potential
tenants as well as posting and distributing fair housing information.
• Enforcement of Housing Element.
• City education program through articles in the BrightSide Newsletter
• Annual FHCRC testing to monitor discrimination and other fair housing
issues.
27
• Develop a program to educate and resolve the problems uncovered in the
audit specifically targeting those in the property management, real state,
and mortgage lending industry.
• Continual annual audits or not less than every two years. Audits will
determine the nature, extent, and changes and possibly other
characteristics such as religion, sexual orientation, and other protected
classes to housing discrimination throughout the City.
• Continue to develop, expand, and provide more education and outreach to
housing providers, community organizations, and the general public
requesting housing discrimination, fair housing laws, and services.
VII. Conclusions:
A. Goal:
The City is dedicated to eliminating, to the extent possible, discrimination
and other impediments to further fair housing and to create equal housing
opportunities within Palm Desert. The City will work closely with the Fair
Housing Council of Riverside County to continue educating people and
businesses of fair housing laws and regulations and discriminatory
practices. The Fair Housing Council will provide training and technical
assistance, workshops, creation and distribution of educational materials,
participation in business association meetings, process and resolving
discrimination and tenant/landlord complaints, testing, etc. to further fair
housing within Palm Desert. These efforts will be undertaken to enforce
laws and regulations of California State Department of Fair Employment
and Housing and HUD. To continue to educate and enforce fair housing
opportunities the City will continue to contract with FHCRC and/or an
agency that provides similar services through the CDBG Program.
Fair Housinq Impediment Analvsis:
The audit findings of the rental housing and sales and mortgage lending
institutions revealed that in the protected categories of Race, Disability,
and National Origin there was differential treatment at some sites both in
favor of the protected tester and in some cases the control tester. Overall,
the audits found that there was differential treatment there is not
widespread discriminatory practices within Palm Desert.
Given the findings and as outlined within the audit report pertaining to
rental housing, it appears that information concerning the number, type
and location of available units for rent, as well as the types of comments,
courtesies, and materials offered to prospective tenants are areas most in
need of consideration for apartment managers and leasing agents. As for
the sales and mortgage lending institutions, it appears as though type,
criteria, and guidelines of loans available, educating potential mortgagees
of the pros and cons of each loan option, treat everyone the same and in a
consistent manner, provide the same verbal and non-verbal (e.g.,
28
materials) information to all potential home buyers, when showing
properties base it on information asked and answered from client, which
should eliminate the appearance of steering.
Public Policv and Practices:
B. Executive Summary of Findinqs/Impediments:
Illegal discrimination is not always overt and can be difficult to prove. The
mere filing of a complaint alleging housing discrimination neither proves
nor disproves allegations of discrimination. It is accept that when large
numbers of the same type of complaints are received over a measured
period of time, and by more than one agency, it is reasonable to assume
that a problem exists. This report reflects that testing of the mortgage
lending institutions indicates that differential treatment based on race is
occurring. While there did appear to be some differential treatment in the
rental section, it appeared to be more prevalent in the mortgage
institutions.
The results of the Fair Housing Audit tend to coincide with and lend
support to the aforementioned assertion that the complaints filed with
FHCRC may be indicators of a housing discrimination problem, even
though each complaint ultimately must be validated on its own merits. In
short, an evaluation of data contained in this report suggests that while not
widespread housing discrimination does exist in Palm Desert, in subtle
and not so subtle forms. The FHCRC received 17 discrimination
complaints and 419 tenant/landlord complaints, which reflects that
additional education and outreach is needed to educate
persons/companies within the rental industry as well as in the
mortgage/lending institutions.
The City will continue to contract with FHCRC to undertake annual testing
to monitor progress in fair housing as well as impediments. These
updates will keep the City informed of what is occurring in the community
and allow focus on areas of need. This information will also assist the City
in developing a plan of action to target businesses with findings of
differential treatment in the rental housing and mortgage/lending
institutions within Palm Desert.
As for public policy, the City will continue to review its zoning practices,
general plan implementation, public housing, taxation/fees, etc. to ensure
that it is following Fair Housing Laws and Regulations. As noted in the
Public Policies and Actions Section,
the City are areas that reflect the City has is aware of its impact on the
community and those within the protected classes and make decisions
that hopefully will benefit or not discriminate against those within the
protected classes.
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Appendix
1. Data for Audit Testing for Sales and Mortgage Lending
Based on Race and National Origin in Palm Desert, 2007
2. City of Palm Desert Audit Analysis 2007
Race, Disability, and National Origin
3. Fair Housing Council of Riverside Quarterly Reports
4. General Plan
5. Palm Desert Redevelopment Agency Housing Element
6. Federal Financial Institutions Examination Council regarding CRA and MHDA
webpage, https�//cdr.ffiec.qov/CDR/
30