Council reallocates $232,744 in CDBG funds to fix flooding at Taos Palms Apartments

The Palm Desert City Council voted unanimously on Dec. 11 to reallocate available Community Development Block Grant (CDBG) funds to address a documented flooding and drainage problem at Taos Palms Apartments.

Development-services management analyst Lorena Ritchie told the council the city had an entitlement for fiscal year 24–25 and identified $14,987.64 in currently available funds plus a prior Housing Authority award of $217,756.47. Staff recommended directing the full available total — $232,744.11 — to immediate public‑infrastructure corrective work at Taos Palms to benefit low- and moderate‑income residents; council approved the reallocation 5-0.

Staff said Taos Palms was prioritized after bid preparations for another property revealed greater urgency at Taos Palms; the reallocation aims to maximize the community impact of federal funds and address safety and habitability concerns quickly.

Next steps: staff will proceed with procurement and corrective construction work at Taos Palms in coordination with the Palm Desert Housing Authority and report back on project progress and expenditures.