Black and Latino Families Paid Millions in Compensation For Being Displaced in 1950s-60s California Urban Renewal

The Palm Springs City Council has approved a $5.9 million settlement for Black and Latino families whose homes were razed during the city's urban renewal project in the 1950s and 1960s. The unanimous decision comes years after former residents of Section 14 — tribal-owned land in the heart of the city — filed a claim for the forced removal of predominantly African American and Latino families from their homes on leased land.

The settlement includes compensation for lost personal property based on the current value of 197 non-abandoned homes. The city will fund programs to address long-standing economic disparities, including $20 million for housing initiatives over ten years. An additional $1 million will support local businesses in marginalized communities over five years. These programs will target Section 14 families, although they are open to the wider Palm Springs community.

As well as the settlement, the city has agreed to create a day of remembrance to honor Section 14's contributions to Palm Springs, a request frequently voiced by the Californian community.

After a standing ovation in the City Hall chambers, councilmembers praised former residents for sharing their stories. "It is the responsibility of the city of Palm Springs to compensate individuals for the destruction of personal property," said Councilmember Lisa Middleton, the Los Angeles Times reported.

Pearl Devers, president of the Palm Springs Section 14 Survivors, which includes over 1,000 former residents and their descendants, called the agreement "a pivotal moment in the city's history", according to the Palm Springs Post.

The city had previously issued an apology in 2021 for its role in displacing Section 14 residents, but Thursday's settlement marks a significant step in the city's effort to address the harm caused by the urban renewal project.

Mayor Jeffrey Bernstein acknowledged the challenge of healing historical wounds. "The truth is that we can't right the wrongs of the past," he said, adding that while money cannot fully heal the trauma, the settlement is part of a broader effort toward restorative justice.

The Section 14 neighborhood, located within the Agua Caliente Band of Cahuilla Indians Reservation, was originally home to Black and Latino workers excluded from other parts of the city due to racist housing policies. Despite poor living conditions, it became a thriving community of hospitality workers, contributing to the development of Palm Springs.

The city began demolishing Section 14 homes in the early 1950s. A state probe in 1968 labeled the city's actions as a "city-engineered holocaust," though no criminal charges were filed. The $5.9 million settlement will be distributed to verified residents and descendants.