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City Announces $36 Million AHSC Award to Advance Park Lane Homes and Infrastructure

Desert Hot Springs Planning Commission · February 11, 2026

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Summary

The community development director told the Planning Commission the city received a $36,000,000 Affordable Housing and Sustainable Communities (AHSC) award to fund phase 1 of Park Lane Homes (87 units) and infrastructure improvements including Pearson Boulevard complete‑street upgrades.

The community development director announced at the Feb. 10 Planning Commission meeting that Desert Hot Springs received a $36,000,000 Affordable Housing and Sustainable Communities (AHSC) award to support the first phase of Park Lane Homes and associated infrastructure.

The director said the AHSC award comes as a mix of a $24,000,000 low‑interest loan and roughly $11,200,000 in grants to the city for infrastructure, with the loan intended to help finance 87 affordable housing units and an early childhood education center. Planned infrastructure improvements include remaking Pearson Boulevard into a complete street with wider sidewalks, ADA upgrades, street lights, shade trees, street furniture, additional parking, a transit station and bike lanes. The city is partnering with Abode Communities for the housing component and will pursue additional tax‑credit financing to fill remaining funding gaps.

Officials said the award was highly competitive statewide and that Desert Hot Springs was one of four rural cities to receive funding in the program category named in the application. The director characterized the win as a major step toward advancing Park Lane Homes and related transit and mobility improvements. The director also reported a larger permitting trend: the city permitted 245 dwelling units in 2025 versus 136 in 2024.

The announcement frames the AHSC award as infrastructure and housing financing that will enable subsequent construction and transit investments; project partners will need to secure supplemental financing (Tax Credit Allocation Committee or other sources) before full project buildout. The director said work will begin with entitlements and infrastructure design, and that construction staging depends on the timing of tax credits and additional capital.