Palm Springs City Council on Jan. 14 approved commitments of city financing to help Pacific West Communities (TPC) move a 110‑unit 100% affordable project forward at the northwest corner of McCarthy Road and San Rafael Drive.

Housing staff requested two related actions: a $2,250,000 city acquisition loan to allow the developer to close on roughly five acres and a subordinated city fee loan for up to $2,500,000 to capture eligible development impact fees and developer fees as long‑term, repayable city financing. Both loans were proposed as residual‑receipts loans accruing simple interest at 3% and repaid over the long‑term affordability period.

Developer representatives said an early city funding commitment improves the project’s score on state funding applications and makes the overall financing package more competitive for tax‑exempt bonds and low‑income housing tax credits. A Pacific West principal explained that city loan commitments often function as part of the “tie breaker” when state funding applications are evaluated.

Council members asked about coordination with the nearby navigation center and community services. The developer said it will work with on‑site service providers and suggested monthly coordination meetings among managers in the neighborhood to address operational issues and extend services to nearby residents. Counciltalk also touched on undergrounding utilities; the developer provided a preliminary estimate of about $600,000 to underground the lines along the site’s perimeter, and councilmembers discussed whether the city should subsidize that wholesale undergrounding vs. preserving funds for additional projects.

After discussion the council approved the acquisition and fee loan commitments and authorized the city manager to execute documents necessary to implement the funding commitments.