Palm Springs New Homes
For those who were in the market for Palm Springs new homes, but feared that they could not afford them, they were offered a new option in 2005. The City’s Community Redevelopment Agency implemented an affordable housing program for the purchase of Palm Springs new homes. With the program, some of the Palm Springs new homes built in an adjacent neighborhood to the popular Mountain Gate subdivision on the north side of Palm Springs, CA were priced at $229,000. These Palm Springs new homes were designed to the same model as those constructed at Mountain Gate, but unlike Mountain Gate homes which started at $334,990, the homes built, under the program, were priced at more than $100,000 less.
To have been eligible to buy one of the affordable Palm Springs new homes, a family of four could not have an annual income that exceeded $66,800. A two-person household could not earn more than $53,450. At the time, the Community Redevelopment Agency owned 12 lots in the Desert Highland Gateway neighborhood. Builders of the Palm Springs new homes made a profit, but all direct financial assistance that came from the Community Redevelopment Agency went directly to the buyer.
The financial assistance for potential buyers came in the form of a silent loan that the buyer did not have to repay to the Community Redevelopmnt Agency unless they sold the house. This rule was employed to prevent someone from buying a home, then selling it at a much higher price. The state of California required that these homes remain affordable for 40 years. To qualify, interested home buyers had to fill out the necessary paper work at City Hall. If their income made them eligible, they still obtained a conventional mortgage as any silent loan from the Community Redevelopment Agency was in addition to the first bank loan.
Source: City of Palm Springs press release: Affordable homes to be built thanks to City program (March 24, 2005)
Interested in buying or selling a home in the Coachella Valley area? Contact Patrick Stewart Properties.