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Desert Hot Springs council approves up-to-$10 million bond for Skybourne homes
Summary
The Desert Hot Springs City Council unanimously approved a resolution authorizing issuance of bonds for Community Facilities District No. 2025-2-1 (Improvement Area 1), enabling up to $10 million in financing to support infrastructure for the Skybourne/Lennar 286-home development; staff said bond proceeds may reimburse developer-built public improvements and fund utility facilities.
The Desert Hot Springs City Council on June 2 unanimously adopted a resolution authorizing the issuance of bonds for Desert Hot Springs Community Facilities District No. 2025-2-1 (Improvement Area 1), bond series 2026, with a proposed not-to-exceed par amount of $10,000,000 to support infrastructure associated with the Skybourne development.
Staff and Michael Bush of Urban Futures told the council the Skybourne project, led by Lennar, encompasses 286 single-family homes and is expected to be fully developed in roughly 18 months, with an estimated buildout around February 2028. "This specific development is 286 single family homes," Bush said, explaining the timing and lot status (completed homes, homes under construction and remaining lots).
Bush and city staff said bond proceeds can be used only for public facilities that the city or a public agency will own — for example, roads, parks and water or wastewater facilities — and noted that the developer may use proceeds to refinance fees it has already paid, reimburse public-improvement costs the developer already funded, or finance facilities jointly with Mission Springs Water District as part of a community facilities agreement. Staff also presented good-faith estimates for the financing, including projected per-parcel annual levies ranging from $2,140 to $2,916 in the first year depending on home size.
The presentation outlined a tentative schedule: staff will post a preliminary official statement and, if market conditions are favorable, price the bonds the following week with a goal to close the transaction before the end of the fiscal year so the city can draw down proceeds within the fiscal period. Councilmembers asked clarifying questions about eligible uses; staff reiterated the legal limitation that CFDs only fund facilities turned over to a public agency.
Mayor Mattis moved to adopt the resolution; Councilmember Pitts seconded. The motion passed unanimously. No public speaker offered substantive opposition during the item.
The council’s action enables the city and developer to proceed with bond pricing and closing, subject to market conditions and final financing documents. The city will return with final bond-pricing details and the disclosures required by the bond documents prior to closing.
