The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated December 20, 2022, due from Palm Desert Pacific Associates, a California Limited Partnership. The Authority Loan shall bear interest at three percent (3%) simple interest per annum, and repayment will commence as follows: 50% of Project Net Cash Flow, as defined in the Loan Agreement shall be paid to PDHA on an annual basis on June 30th after the first anniversary of issuance of a final certificate of occupancy for the project and each annual anniversary thereafter (with respect to the Project New Cash Flow for the preceding year ending on June 30th prior to each such payment date) until the Note has been satisfied in full. As of June 30, 2025, the total receivable from Palm Desert Pacific Associates was $6,030,000 and management has no reason to believe any allowance for doubtful accounts should be established for the loan.
On August 28, 2008, the City Council approved through resolution the Energy Independence Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City to create the funding mechanism to assist the residents and businesses entering into a loan agreement with the City and providing the money for the borrowers to acquire and install energy efficient improvements. Assembly Bill AB811 allows the City to lien the properties through annual property tax assessments for a period not to exceed 20 years. To date, 279 residents and business owners entered into loan agreements with the City and have completed their improvements through the EIP program, as of June 30, 2025, 160 loans have been repaid. The loans are payable in two annual installments for a period of 5 years to 20 years at an interest rate of 7% annually. On June 30, 2025, the outstanding loans receivable through the EIP Program was $186,349.
On November 1, 2024 The Palm Desert Housing Authority entered into a new loan agreement with A0358 Monterey L.P., a California limited partnership, in the amount of Seven Million Two Hundred Thirty-Five Thousand Dollars ($7,235,000) from the Authority's Low and Moderate Income Housing Asset Fund to fund the construction of One-Hundred Thirty Nine (139) of the One-Hundred Seventy Four (174) affordable housing units comprising the proposed apartment project, Crossings at Palm Desert Apartments.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing Authority has loans for several other projects, all of which are secured by a deed of trust. An allowance for doubtful accounts equal to the loan balance has been recognized since there is a significant possibility that these loans will either become uncollectible or forgiven by the Housing Authority at a future date if all the terms of the loans have been met.
On June 13, 2024, the City Council approved through a resolution of the Palm Desert Housing Authority a Disposition, Development and Loan Agreement (DDLA) with Chelsea Investments Corporation in the amount of Three Million Dollars ($3,000,000) from the Authority's Low and Moderate Income Housing Asset Fund, and have a term of Fifty-Five (55) years from the date of the issuance of the Certificate of Occupancy. The Authority Loan shall bear interest at three percent (3%) simple interest per annum, and principal will be repaid from a proportional share of the Projects residual receipts. The Authority Loan will be due and payable at the end of the loan term and will be used to fund the construction of Thirty-Nine (39) multi-family affordable housing units comprising the proposed apartment project, Arc Village Apartments.