Palm Springs, CA

The City of Palm Springs announced today that it has fulfilled the payment terms of its historic settlement agreement with survivors and descendants of Section 14, transferring $5.9 million to their legal representatives. The payment marks the completion of the City’s financial commitment under the agreement approved by the Palm Springs City Council in November 2024.

The settlement resolved decades-old claims tied to the controversial redevelopment of Section 14 during the 1950s and 1960s, when hundreds of families — largely from the city’s Black, Latino, and Indigenous communities — were displaced from the neighborhood. The comprehensive agreement provides not only direct financial compensation but also long-term housing, business, and cultural initiatives aimed at reconciliation.

Settlement Terms and Progress

Under the terms of the agreement, the City Council authorized $5.9 million in direct financial compensation for eligible survivors and descendants, contingent on receipt of at least 1,200 legal waivers. As of October 6, nearly 1,500 releases had been received, surpassing the required threshold.

The City has transferred the settlement funds to the designated claimant representatives and their attorneys, who will oversee the distribution of individual payments. As with all settlements, the City emphasized it does not play a role in how proceeds are shared between claimants and legal representatives.

Beyond the direct compensation, the settlement commits:

• $20 million for affordable housing programs over the next decade, prioritizing access for former Section 14 families.
• $1 million in small-business support to expand economic opportunities in Palm Springs.
• Development of a public memorial and dedicated park honoring Section 14 families.
• Support for a community-led initiative to establish a Section 14 Cultural and Racial Healing Center, which may include letters of support though not direct City funding.

A Step Toward Healing

City Manager Scott Stiles said the settlement reflects Palm Springs’ commitment to reconciliation and inclusion.

“The City approached this settlement with care, transparency, and respect for everyone involved,” Stiles stated. “Our goal from the beginning has been to resolve these longstanding claims in a way that is fair, equitable, and with a focus on healing and progress.”

Continuing Reconciliation Efforts

The City has emphasized that the settlement is only one part of a broader reconciliation process, which also includes investment in housing, cultural recognition, and ongoing dialogue with the community.

For more information on Section 14 history and the City’s reconciliation initiatives, residents are encouraged to visit EngagePalmSprings.com.