Indian Wells donates housing money.

The wealthy City of Indian Wells will give $1.5 million in housing funds to the City of Coachella, a neighboring town where residents' median income is less than one-third that of Indian Wells' citizens. The money is a portion of the mandatory 20% housing set-aside from an Indian Wells redevelopment project, which transformed desert land into an upscale golf resort.

Indian Wells has spent $13.6 million in housing funds on 90 senior apartments and earmarked $14.6 million for 100 more senior units. The city offered the $1.5 million to Coachella, where Indian Wells officials said the money would go further.

In early December, the Coachella City Council voted 3-2 against accepting the money. "Indian Wells has a responsibility to provide housing for their workers in their city," Coachella Mayor Sylvia Montenegro told the Los Angeles Times. However, a councilwoman elected in November switched her vote on December 28 — three days before special legislation allowed the transfer expired. State officials are now reviewing the transfer.