Half of people in Indio struggle to afford housing, and the city hopes state aid can help

With many people in Indio struggling to rent or buy a home, the city is considering a new push to get state grants for affordable housing.

Indio is looking to participate in California's Prohousing Designation Program, which could make the city more competitive in seeking grant funding for community development, public infrastructure and affordable housing.

On Wednesday, the city's community development director, Kevin Snyder, told the city council how the application works. The council didn't take a vote, but the presentation allowed members to ask questions so they can decide later whether the city will apply.

"There are only 27 jurisdictions in the state of California that have this designation out of 482 jurisdictions, so, not a lot," Snyder said.

In Riverside County, only the city of Riverside has a prohousing designation currently.

In the state's latest budget cycle, $26 million was divided among 18 of the 27 participating jurisdictions, Snyder said.

"It's population-based, so the city of Indio could've been eligible for $500,000 in funding that could be used for a variety of purposes to assist the city, either producing affordable housing or assisting in programs that support housing affordability," he added.

Housing needs in Indio

According to Census Bureau data presented on Wednesday, the average home price in Indio has increased from approximately $290,000 to $550,000, from 2018 to 2022. Based on an assumed 20% down payment, a household in Indio would require an annual income of about $100,000 to be able to afford such a home.

Only 22% of households in the city earn that much.

The median home-owning household in Indio earns $67,609, meaning the majority of current homeowners would not be able afford a home in the city today, based on the widely used guideline that people shouldn't spend more than 30% of their before-tax income on housing.

Many people in Indio also struggle to afford rent: Census Bureau data shows 46% of renters in the city don't make the minimum income of $35,317 that's recommended to afford the typical one-bedroom unit.

Half of the homeowners in the city and 57% of renters spend more than 30% of their income on a mortgage or rent.

In a report to the council, city staff said Indio's biggest housing needs are multifamily housing units, such as apartments, duplexes, triplexes, and quadplexes.

How cities can become ‘prohousing’

Cities can obtain a prohousing designation by showing the California Department of Housing and Community Development how they have or will:

• Adopt favorable zoning and land use plans

• Accelerate production timeframes

• Reduce construction development costs

• Provide financial subsidies for projects

The state decides whether a city is prohousing based on how it shows its commitment to support housing production, attainability, affordability and sustainability.

While Snyder said Indio's prohousing plan is in line with these requirements, he noted winning the state designation would likely cost the city money and come with new responsibilities.

Hesitation among council

Councilmember Glenn Miller said going after a prohousing designation could be a good opportunity, but also carries risk as the city would have to spend time and money to get it, without being guaranteed any state funding.

"Right now, the state of California is force feeding this, and they're saying 'Put this money into this account,' (but) they're not guaranteeing (the funds). We'd be fighting against the LA's, against other larger cities," he said.

Mayor Oscar Ortiz said he would like the city to have a shot at "millions of dollars." He added: "We've created a big problem and this is a way to address it."

Snyder said city staff will consider the council's questions and concerns and return with another presentation at a later date.

Eliana Perez covers the eastern Coachella Valley. Reach her at eliana.perez@thedesertsun.com or on Twitter @ElianaPress.

This article originally appeared on Palm Springs Desert Sun: How Indio hopes the state will help it create more affordable housing