Palm Desert’s homelessness programs are facing potential state funding cuts and uncertainty as the city prepares to seek new providers for its outreach services.
At Monday’s meeting of the city’s Homelessness Task Force, Homeless and Supportive Services Manager Ivan Tenorio reported that revenues from the state’s Permanent Local Housing Allocation (PLHA) program may decline during the next five-year cycle beginning in fiscal year 2026-27.
The program currently funds the city’s agreements with area resource providers totaling about $170,000 annually.
According to the California Department of Housing and Community Development, statewide PLHA revenues are expected to drop, which would in turn reduce Palm Desert’s allocation. The department also plans to require jurisdictions to dedicate part of each annual allocation to Affordable Owner-Occupied Workforce Housing.
While the state initially projected a 40% set-aside for that program, the final percentage will not be confirmed until the state releases its Notice of Funding Availability for the 2026-31 cycle in December. “It could be 30%, it could be 40%, could be 50, I don’t know,” Tenorio said.
The CityNet report on services it provided in Palm Desert in September, the latest report available.
If Palm Desert were to receive $100,000 annually in PLHA funds and the set-aside were confirmed at 40%, only $60,000 would remain for homelessness services — less than what is currently committed. Existing PLHA obligations already exceed what the city expects to receive in the next funding cycle.
Amid this financial uncertainty, the city plans to issue a request for proposals on Dec. 1 for homeless outreach services. The current contract with CityNet expires this year, and both CityNet and other organizations will be invited to submit bids. The RFP will be available on the city’s open government website.
CityNet currently partners with the Sheriff’s Department’s homeless liaison officer to engage residents experiencing homelessness in the city and connect them with support such as benefit referrals, identification assistance, housing placement, health care, addiction recovery services, and food and shelter resources.
During the meeting, one task force member questioned whether CityNet’s work overlaps with efforts by volunteer organizations, noting that the city’s homeless population appears to have declined and that local collaborations have become more active. The member suggested inviting representatives from other service providers to present reports on the work they do in Palm Desert.
Tenorio agreed that volunteer groups have resumed activity in the city and acknowledged that CityNet occasionally encounters situations already being managed by those organizations.
Currently, Palm Desert allocates $125,000 in PLHA funds to CVAG for its CV Housing First program and about $45,000 annually to the Coachella Valley Rescue Mission for shelter bed access. The city’s contribution to CVAG recently rose for the first time in more than 15 years, from $100,000 to $125,000.
Tenorio said he plans to return with funding recommendations before the task force’s next meeting in May 2026.