The Las Cruces City Council unanimously adopted a Resolution approving a precommitment of as much as $7 million in City funds for two federal low-income housing tax credit projects.
The Resolution was approved by City Council during its regularly scheduled meeting on Monday, Dec. 19, 2022, in Council Chambers at City Hall, 700 N. Main St.
The two projects will create a combined 224 affordable multi-family housing apartments. Apartments for both projects will be rent restricted for approximately 40 years.
A request for funding assistance to create affordable housing was submitted to the City’s Economic Development Department by New Mexico Housing and Community Development Corporation (NMHCDC), in partnership with Thomas Development Group. A second proposal was submitted by Thomas Development Company. The two projects to be built will be the 144-unit Peachtree Canyon Apartments, at 7081 N. Jornada Road, and the approximately 80-unit Pedrena Senior Apartments, at the northeast corner of Farney Lane and El Paseo Road.
Both projects will apply for 4 percent Low-Income Housing Tax Credit (LIHTC) funding through the New Mexico Mortgage Finance Authority. Successful applications for 4 percent LIHTC awards for the two projects will leverage additional resources from City government and efficiently use tax credits.
The investment of City funds will provide an opportunity to directly address affordable housing needs. The construction of Peachtree Canyon Apartments will create affordable units to meet the high demand and critical shortage of affordable housing in Las Cruces.
The Peachtree Canyon Apartments will be the largest affordable housing project in Las Cruces history.
Peachtree Canyon Apartments will have 72 one-bedroom apartments, 60 two-bedroom apartments, and 12 three-bedroom units. Amenities also will include a community building, a pool area, pickleball courts, covered gathering spaces, age-appropriate playgrounds, garden areas, and walking paths.
Pedrena Senior Apartments will include 44 one-bedroom and 36 two-bedroom apartments, a community room, computer center, management office, exercise workout room, and a secure package drop-off. Both projects will have 100-percent electric apartments.
Also at Monday’s meeting, City Council adopted a Resolution establishing a new fee schedule for the City’s Community Development Department. The new fee schedule will go into effect in February.
The new fees include:
- A unified fee schedule that addresses all fees charged for activities related to construction and development.
- Fair market value fees for the local area.
- Fees in support of technology and staffing that are right sized to reflect industry demand.
- Fees that provide a minimum off-set of 80 percent of the cost of providing the points of information of services in the Las Cruces Development Center.
The new fee schedule does not include across-the-board changes, nor does it include impact fees that are adopted using a separate methodology. Most fees will remain the same.
The new fees will make trade fees clearer and simpler, and lower fees for affordable housing will be introduced.