Governor moves housing office, parts ways with housing adviser in policy shake-up

SANTA FE — Gov. Michelle Lujan Grisham’s administration is shifting its approach to housing issues, moving a state Office of Housing from the Governor’s Office to the state labor department and parting ways with the governor’s housing policy adviser.

Amid a recent surge in housing and rent prices, the governor described the move as a way to increase the effectiveness of state housing initiatives.

“New Mexico has devoted a significant amount of money to solving its housing challenges, and it is essential that this investment leads to tangible progress as soon as possible,” Lujan Grisham said in a Monday statement.

The governor, who is currently in Asia leading a two-week trade mission, created the state Office of Housing administratively last year after a bill seeking to establish the office stalled at the Roundhouse.

Similar legislation also failed during this year’s 60-day session, though lawmakers appropriated $110 million to support affordable housing and transitional housing efforts during this year’s legislative session.

Legislators also approved funding for housing-related initiatives for individuals with opioid use disorder and senior citizens. In addition, $5 million was earmarked for local government responses to homeless encampments.

Just days after the session ended, however, Lujan Grisham fired Daniel Werwath, who had been the governor’s housing policy adviser since January 2024.

A Lujan Grisham spokesman did not provide a reason Monday for the split, but issued a statement acknowledging the work of Werwath, whose last day was April 3.

“Gov. Lujan Grisham appreciates Daniel’s contributions in developing housing policy for New Mexico, including crafting financing proposals and working with the Legislature,” the governor’s spokesman Michael Coleman said.

“The governor thanks Daniel for his service and wishes him well in his future endeavors,” Coleman added.

Lujan Grisham has repeatedly expressed frustration about homelessness in New Mexico, and has indicated the state could take on a larger role as a housing provider for homeless individuals.

But the Legislature has balked at some of her proposals, including a plan that would have made panhandling at some medians a crime.

The governor’s latest action will place the Office of Housing under the purview of the state Workforce Solutions Department, though the arrangement could be temporary. The office’s four current staffers will make a recommendation in the coming months about where the office should be permanently located, the Governor’s Office said.

In the meantime, Workforce Solutions Secretary Sarita Nair said the new arrangement would allow for more accountability and collaboration.

“Across the state, businesses, job seekers and our own staff tell us that one of New Mexico’s biggest workforce challenges is the housing shortage,” said Nair.