Facing an ongoing affordable housing shortage in the state, the New Mexico Mortgage Finance Authority is awarding millions in low-income housing tax credits to address the issue.
MFA announced this week it has awarded more than $53 million in tax credits to five projects across the state, a move it says will address some of those shortages in the near term.
“LIHTC funding supports projects that help address housing needs throughout the state,” MFA Director and CEO Isidoro Hernandez said in a statement. “It will allow greater stability, health, and wellness for families and economic growth for communities across New Mexico.”
The move to aid affordable housing projects in New Mexico follows a 2022 report released by MFA earlier this year that shows a shortage of more than 30,000 homes for renters making less than 30% of the area median income.
The report, conducted on an annual basis, added that more than 200,000 households in the state are cost burdened. MFA, which administers the low-income housing tax credits, receives a yearly allocation of federal tax credits for the program that are then disbursed to housing developers through a “highly competitive process,” according to a news release. It is expected that the awarded projects have an economic impact of nearly $33 million through all stages of development, as well as supporting roughly 450 jobs.
The awarded projects are as follows:
• Route 66 Flats in Albuquerque was awarded $14.2 million to be used toward the construction of 48 housing units located near Central and Unser. Thirty-three of those units are earmarked for individuals transitioning out of homelessness. According to the news release, the project includes “trauma-informed design principles, exemplified by the strategic placement of the courtyard, visible from the indoor community space and surrounding apartments,” as well as a community garden, a walking path and other features meant to enhance the quality of life of residents.
• Calle Cuarta in Albuquerque was awarded $3.2 million to support the construction of 61 units located on 4th Street. The project last year was awarded $10.8 million in low-income housing tax credits, bringing the total award to roughly $14 million. The news release says the property will include laundry rooms on each floor, computer labs, a social service office, a fitness room, among other amenities. The developers of the project also secured financing for retail shops and live/work units on the ground level of 4th Street, as well as nearly two dozen for-sale townhomes.
• Tierra Encantada in Anthony, New Mexico was awarded $3.9 million for the rehabilitation of an existing development that includes 24 housing units specifically meant for households employed in the agriculture industry.
• Farolito Senior Community in Albuquerque was awarded $16.2 million for the construction of a senior-living community in Albuquerque. The community, located near Central Avenue and Eubank Boulevard and across from the Luminaria Senior Community, will include up to 92 units, the New Mexico State Land Office told the Journal in December 2022. According to the MFA news release, the “community was designed with aging-in-place elements, a dog park, an indoor pet washing station, a pollinator garden, and a deck.” The project is expected to be completed by July 2025.
• Felician Villa II in Rio Rancho was awarded $16.2 million to help toward the construction of a three-story, 66-unit housing development located near the Meadowlark Senior Center. Felician Villa II is the second phase of the Felician Villa project aimed at seniors. The first phase of the project received $12.3 million in tax credits last year.
