The Palm Springs City Council on Jan. 14 denied an appeal from nearby property owners and approved a $3.8 million city funding commitment to support an 82‑unit, 100% affordable development at 305 West San Rafael proposed by Redtail Multifamily Development.

Planning staff explained the project is taking advantage of state density‑bonus provisions for 100% affordable housing that allow increased height, density and some parking waivers where statutory criteria are met. Associate planner Glenn Malacker noted the project would have three buildings fronting San Rafael, parking to the south and clear‑story windows set high on the south elevations. “They are providing 3rd floor clear story windows that are about 6 to 7 feet from the floor,” staff said, and the minimum 3rd‑floor setback achieved on the south façade is approximately 139 feet from the appellants’ property line.

Neighbors who filed the appeal said they are not opposed to affordable housing but asked the council to impose enforceable conditions to protect privacy, such as removing the clerestory windows facing single‑story backyards, allowing light via skylights only, prohibiting balconies or installing tall hedging. Appellant William (Gordon) Phillips said the issue is not opposition to affordable housing but “privacy impacts from having these 35 to 40 foot tall structures that look down into our single story backyards.”

Applicant Bob Garrison said Redtail had met repeatedly with appellants, provided sight‑line analysis and proposed additional planting and screening; he noted coordination with Southern California Edison on tree heights adjacent to power lines. Garrison said the project’s trash enclosures will include organics, recycling and refuse and confirmed no balconies or openings would provide direct views into pools; trash and drainage plans were reviewed by staff.

Councilmembers weighed the neighbors’ privacy concerns against state law limits on local conditioning of density‑bonus projects. Members urged the developer to pursue additional hedging and design solutions at ARC (Architectural Review Committee) and recommended firm commitments on screening. Councilmember Garner moved to deny the appeal and uphold the Planning Commission’s approval; the motion passed. Immediately afterward council approved staff’s recommended commitment letter for a $3,800,000 city loan (3% simple interest, 57‑year term, residual‑receipts repayment with typical forgiveness provisions at the end of the affordability term) to help the project secure 4% tax‑exempt bond financing and low‑income housing tax credits.

Staff said the loan is structured to be repaid from project residual receipts when cash flow allows and to align with the long‑term affordability regulatory agreement. Councilmembers asked staff to ensure ARC and the project team address privacy mitigation, undergrounding of utilities where feasible, and coordination with neighborhood stakeholders as the project proceeds.