HomeMy WebLinkAboutz 2026-06-10 HC B3 LQ Village Apts - Affordable Housing AgrmtBUSINESS SESSION ITEM NO. 3
City of La Quinta
HOUSING COMMISSION MEETING: June 10, 2026
STAFF REPORT
AGENDA TITLE: RECOMMEND SUPPORT OF A DENSITY BONUS AFFORDABLE
HOUSING AGREEMENT FOR 74 MODERATE -INCOME RENTAL UNITS WITHIN THE
LA QUINTA VILLAGE APARTMENTS PROJECT LOCATED AT THE NORTHEAST
CORNER OF WASHINGTON STREET AND AVENUE 50
RECOMMENDATION
Recommend support of a Density Affordable Housing Agreement for 74 moderate -income
rental units within the La Quinta Village Apartments project located at the northeast corner
of Washington Street and Avenue 50.
EXECUTIVE SUMMARY
• On November 21, 2023, Council approved the La Quinta Village Apartments roject,
a 252-unit multifamily rental community consisting of 178 market -rate units and 74
moderate -income affordable rental units.
• A Density Affordable Housing Agreement (Affordability Agreement) for the
74 moderate -income units would secure deed -restricted rental units for income -
qualified households in a market segment increasingly difficult to serve by
conventional private development.
• This project would include City contribution for specific public improvements through
a Reimbursement Agreement for Construction of Public Improvements
(Reimbursement Agreement).
• City participation would facilitate delivery of 74 moderate -income units toward the
City's Regional Housing Needs Allocation (RHNA) goals.
FISCAL IMPACT
No Housing Funds will be used for the project.
BACKGROUND/ANALYSIS
On November 21, 2023, Council approved entitlements for the La Quinta Village
Apartments project, a 252-unit apartment development consisting of 178 market -rate
units and 74 moderate -income affordable rental units, on approximately 14.03 acres,
located at the northeast corner of Washington Street and Avenue 50.
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An Affordability Agreement is the primary mechanism by which the City can ensure that
the project's 74 moderate -income units are rented to households meeting the applicable
income standards and rents consistent with program requirements established in the
agreement. At minimum, such an agreement should define the number and bedroom mix
of restricted units, the applicable income limits, rent -setting methodology, required term
of affordability, affirmative marketing expectations, annual monitoring and reporting
requirements, and remedies for noncompliance
The proposed City contribution, provided through a Reimbursement Agreement, would
fund specific public improvements, including offsite utilities, street, sidewalk, curb and
gutter, striping, signage, and related transit improvements on Washington Street and
Avenue 50, rather than provide a direct subsidy to the private residential devleopment.
This structure ties the City's assistance to specific infrastructure improvements required
for the project and ensures the development proceeds in a timely manner.
Staff recommends support for the Affordability Agreement because it would facilitate the
delivery of 74 moderate -income units that would count toward the City's 6th Cycle RHNA
obligations. The Reimbursement Agreement and any related appropriation are
anticipated to be presented to the City Council at the June 16, 2026, meeting for formal
consideration.
ALTERNATIVES
The Commission may decline to recommend support for the proposed funding
participation.
Prepared by:
Approved by:
Laurie McGinley, Management Specialist
Gilbert Villalpando, Director of Business Unit and Housing
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