Las Cruces council moves more funds to affordable housing

LAS CRUCES — Affordable housing dominated the agenda Monday as Las Cruces city councilors approved a series of resolutions paving the way for hundreds of additional units of housing, including single-family homes and apartments.

New Mexico’s second-largest city is aiming to close an estimated gap of 5,600 rental units, with several housing projects already underway with more projects under development or seeking funding, with the goal of making housing, amenities and social services available to low- and moderate-income households and senior citizens in desirable, mixed-income neighborhoods.

In May, Las Cruces officials and property developers formally opened a $22 million complex offering 70 apartments for low-income renters built on vacant city land.

At its regular session Monday, the Las Cruces City Council voted unanimously to approve housing loans and grants for three developments and the purchase of private land for another.

“We’re talking about all different kinds of housing unit options,” Councilor Becki Graham said. “We have single-family homes, we have multifamily homes, we have a community dedicated to seniors. … Housing is never a monolith, and I just want to applaud the work we’re all doing together as a community.”

The council approved a $6 million housing development loan for the second phase of the Peachtree Canyon Apartments, a 144-unit complex consisting of 1-, 2- and 3-bedroom apartments under construction near the city’s Metro Verde and East Mesa area. The development is close to elementary and middle schools, mountain trails and parks. The first phase of the $40.8 million project began in October with a target completion date in January.

Funding for phase 2 had been set aside in 2023 and made contingent on the approval of low-income housing tax credits by Housing NM, formerly known as the New Mexico Mortgage Finance Authority. The units will be reserved for households earning up to 30% to 60% of area median income. City staff said land use and mortgage and security agreements would ensure the development remains dedicated to affordable housing.

The council awarded a housing grant of up to $1.4 million to the nonprofit developer Tierra del Sol Housing Corp. for financing infrastructure improvements for a planned affordable housing project known as the Skylark Subdivision, on Central Road a mile a half away from the Peachtree Canyon Apartments. The homes will be available under a homeownership program administered by Tierra del Sol and ensured under a deed restriction and restrictive covenants agreement with the city.

Another affordable housing grant was approved for developers of the Pedrena Apartments, an 80-unit senior housing complex nearing completion after starting construction in 2024. The grant awards $300,000 in state funds earmarked for affordable housing, to be used for infrastructure improvements.

Lastly, the council approved the $3.25 million purchase of nearly 12 acres of land for a subdivision in the Metro Verde area from a holding company that will build infrastructure for 52 residential lots for single-family homes before closing the deal.

The negotiated price was based on two appraisals of the property and an estimated cost of building the lots at $62,500 each. The deal would close after the city’s public works office signed off on the subdivision improvements, according to the resolution and purchase terms.

“I know that what we did today was just part of the process. We’ve been talking about these for a long time but I just wanted to highlight and underscore the power of that,” Councilor Johana Bencomo said.