MFA Awards $53 Million for Affordable Workforce Housing Construction and Rehabilitation Across New Mexico
On May 17, 2023, The New Mexico Mortgage Finance Authority (MFA) Board of Directors approved $53 Million in Low-Income Housing Tax Credits (LIHTC) for the new construction and rehabilitation of affordable housing across New Mexico. The funding will benefit five projects: Route 66 Flats, Calle Cuarta, Tierra Encantada, Farolito Senior Community, and Felician Villa II, resulting in a total of 281 affordable rental units across Bernalillo, Dona Ana, and Sandoval counties.
According to MFA Director and CEO Isidoro Hernandez, "LIHTC funding supports projects that help address housing needs throughout the state. It will allow greater stability, health, and wellness for families and economic growth for communities across New Mexico.”
MFA administers the LIHTC program and receives an annual allocation of federal tax credits, which are then awarded to housing developers through a highly competitive process. In this competitive round, five of the nine applications were provided awards based on project readiness, financial feasibility, project design and implementation, and ability to meet all program requirements. Under the administration of MFA, more than $150 million has been awarded in federal tax credits, resulting in the creation or rehabilitation of 19,558 housing units for New Mexicans.
A 2022 statewide housing study commissioned by MFA revealed a shortage of 32,000 affordable rental units to meet the needs of renters with extremely low incomes in New Mexico. The shortage is most prevalent in Bernalillo, Dona Ana, Santa Fe, and Sandoval Counties. To address this issue, the awarded projects will set aside 33.1% of the units for extremely low-income renters.
The 2023 LIHTC awarded projects have an estimated economic impact of more than $32.8 million across all stages of the development process and will support roughly 450 jobs.
MFA Chief Housing Officer Donna Maestas-De Vries emphasized that “This program not only creates housing opportunities for New Mexicans but also boosts local economies by providing local revenue, tax income, and jobs. We are proud to offer such an effective program."
Below are the details of the 2023 Low-Income Housing Tax Credit Awards:
Route 66 Flats – Albuquerque, NM
Award: $14,170,000
This award will be allocated towards the construction of 48 units located near Central and Unser in Albuquerque, New Mexico. Notably, 33 units will be dedicated to providing permanent supportive housing for individuals transitioning out of homelessness. The project incorporates trauma-informed design principles, exemplified by the strategic placement of the courtyard, visible from the indoor community space and surrounding apartments. Additionally, residents will benefit from various amenities such as bike racks, a community garden, a walking path, and a range of other features designed to enhance the overall quality of life for the residents.
Calle Cuarta – Albuquerque, NM
Award: $3,162,860
This project received an award of $10,785,400 in 2022 and $3,162,860 in this round, for a total award of $13,948,260 that will support the construction of 61 units in Albuquerque, New Mexico. The project is located on 4th Street and offers a range of spaces from studios to three-bedroom apartments. The property will have community amenities such as a demonstration kitchen, laundry rooms on each floor, computer labs, a social service office, and a fitness room. In addition, the developers of this project have secured financing to incorporate five retail shops along 4th Street, four ground-floor live/work units off Fitzgerald Street, and 21 for-sale townhomes.
Tierra Encantada – Anthony, NM
Award: $3,887,820
This award will be used for the rehabilitation of this existing development in Anthony, New Mexico. When the project is complete, 24 units serving households employed in the agriculture industry will be upgraded to extend the useful life of their homes and the community building will be reconfigured to provide space for supportive services. This project is located within a mile of an elementary school, two grocery stores, an independent pharmacy, the local public health office, and a bank, which is crucial when considering the rural area does not have a public transportation network.
Farolito Senior Community – Albuquerque, New Mexico
Award: $16,228,050
This award will be utilized for the construction of 82 units in Albuquerque, New Mexico. The project’s prime location on Central Avenue and Eubank was made possible through a long-term land lease with the New Mexico State Land Office. The community was designed with aging-in-place elements, a dog park, an indoor pet washing station, a pollinator garden, and a deck.
Felician Villa II – Rio Rancho, New Mexico
Award: $16,217,230
This award will contribute to the construction of 66 units in Rio Rancho, New Mexico. The project consists of a three-story building, located within 500 feet of Meadowlark Senior Center, which offers reduced-cost meals and educational seminars for health and wellness. Felician Villa II is the second phase of the Felician Villa project for seniors which received a $12,287,600 tax credit award in the previous year. The land for Felician Villa II was generously provided by Felician Sisters of the Southwest.