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Twentynine Palms looks at “Self-Help Home Ownership Program”

During last week's City Council meeting, City Manager Stone James updated the Council on the current status of the Coachella Valley Housing Coalition (CVHC)'s self-help Home Ownership Program. 

The CVHC is a local nonprofit organization based in the Coachella Valley. It’s been around for decades, and they build different types of affordable housing, for rent or with a 55-year deed restriction. They Have several projects throughout the Coachella Valley and Imperial County. They also developed a self-build concept. A family qualifies if they earn less than 80% of the average median income, determined by the county, and can dedicate 40 hours per week towards the construction of the house. They will then receive a set of plans and all materials and be given direction by contractors to help them through the building process, which can take six months to a year. The applicant must have good credit status and meet the low-income qualification. They can have friends and family help meet the 1500-hour or 40-hour-a-week requirement. The enrollment process is through CVHC.

The application process is robust, and there is a 1 to 30 chance an applicant will be approved.

James said that before the Staff could recommend that the City get involved with this project, considerations should be investigated and weighed seriously. He noted deed restrictions that limit house price appreciation, tie the house to the income level, and restrict it from selling for 55 years. Additionally, once Escrow is closed, CVHC will no longer monitor the home. That would fall to the City of Twentynine Palms. Monitoring would entail checking on the current inhabitants and ensuring the owner doesn’t turn the house into a short-term rental or sell it to a cash buyer. 

The City would provide the land and would need to pay for yearly monitoring and due diligence to ensure the land is not toxic. The City must also ensure the ground will remain stable.

Stone estimated the cost to the City of just the land acquisition would be $250,000 or less.

He also advised the Council that other financing considerations could exist, like an equity share, in which the City could recoup what it invested in the project upon sale.

The Council allocated $1 million for a multi-family income-restricted, deed-restricted affordable housing project just west of City Hall. Council Member Scott asked if a balance in the Twentynine Palms Redevelopment Agency funds (RDA funds) could be applied to additional affordable housing. The Council agreed it was a proposal worth consideration.

James said on September 12 of last year, there was an agreement to negotiate with the CVHC. That agreement has served its purpose, and the City is at the table again. He noted that the Staff will investigate how the other jurisdictions have experienced the Self-Help build. 

In conclusion, The City must also evaluate the Surplus Land Act, or SLA, and ensure compliance with the process. Stone added that Staff has ways to address that appropriately, which would be on their radar. “We will identify program milestones and city remedies.” Stone said.


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