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Cathedral City receives 2025 housing‑element progress report; staff to explore Prohousing designation
Summary
City staff reported 295 building permits were issued in 2025 (195 completed) and that Cathedral City is roughly a quarter of the way toward its RHNA allocation of 2,549 units for 2021–2029; council asked staff to pursue HCD’s Prohousing designation and other tools to accelerate affordable housing.
The Cathedral City City Council received the city’s 2025 Housing Element Annual Progress Report on March 25, which tracks the city’s progress toward its Southern California Association of Governments (SCAG) allocation of 2,549 units for the 2021–2029 planning period.
Don Camps, planning staff, told the council that no new residential entitlements were approved in 2025 but building permits were issued for 295 units and 195 units were completed. Camps noted approximately 1,600 units remain in the entitlement pipeline from previous years, including several large apartment projects. Of the 295 permits issued in 2025, the staff report categorized roughly 35% as affordable for extremely low and very low income households, 5% as low income, 1% as moderate income, and 59% as above‑moderate income; 96 of the extremely low/very low units are part of the Desert Marigold project, a conversion of an extended‑stay hotel by Abode Communities into deed‑restricted supportive housing.
Staff recommended the council receive the report and authorize its transmittal to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation. Camps also briefed council on the Prohousing designation program administered by HCD, which can improve a city’s competitiveness for grants if the city demonstrates proactive policies (favorable zoning, accelerated permitting, reduced costs, and financial subsidies). Staff indicated that work underway for the development code update presents an opportunity to convert several housing‑element programs into implementable policies (for example, targeted parking and setback flexibility, expanded density bonus incentives, by‑right approvals for qualifying affordable housing, and fee waivers tied to affordable units).
Council questions focused on how building permits are counted toward RHNA (permits issued count), whether units must be within city limits to be credited (yes), the occupancy status of Desert Marigold (staff count permits when issued, occupancy is separate), and how Cathedral City compares with neighboring cities that are further along in certain affordability categories. Council members emphasized practical incentives — free or discounted city land, fee waivers, density bonus enhancements and ministerial (by‑right) approvals — as levers to attract affordable housing developers. City staff said they will pursue further study and bring proposals tied to the development code update and a future study session to improve Cathedral City’s competitiveness for affordable housing funding.
