Documents now describe a 90-unit senior development, replacing last year’s 108-unit multigenerational proposal

Damien Willis, Organ Mountain News

LAS CRUCES - The Las Cruces City Council will consider a nearly $2.83 million land purchase Tuesday for a proposed affordable housing development that has changed in size and scope since council first committed funding last year.

Resolution 27-042 would authorize the city to use state grant funding to buy approximately 6.49 acres in the Royal Crossing subdivision near North Main Street and Solano Avenue.

The meeting begins at 1 p.m. Tuesday, Sept. 8, in council chambers at City Hall, 700 N. Main St. The land purchase is scheduled for discussion and is not part of the consent agenda.

Royal Crossing shifts from multigenerational to senior housing

City documents now describe plans for a 90-unit development targeting residents 55 and older. When council approved a preliminary commitment of up to $4.7 million in November 2025, the project was described as a 108-unit multigenerational complex with one-, two- and three-bedroom apartments.

A scope of work included with the state grant agreement describes 90 affordable units for households earning no more than 60% of the area median income. It requires the units to remain affordable for 20 years and calls for the site to be purchased by Dec. 31.

City would buy the land while the developer seeks financing

Under the proposed agreement, the city would pay LC Land Investments LLC $2,827,044 for three lots totaling approximately 6.49 acres. The state grant provides $2,837,044, leaving $10,000 beyond the listed purchase price. The resolution also authorizes payment of applicable closing costs.

The city would own the property after closing. Enriched Communities LLC would become the city’s exclusive development partner for an initial three-year period while pursuing 9% Low-Income Housing Tax Credits and other financing through Housing New Mexico.

Enriched Communities would be required to submit at least one complete tax-credit application and continue pursuing financing during that period. If the company does not secure an award, the city could extend the arrangement, terminate the company’s exclusive development rights or select another developer.

If financing is secured, the city and Enriched Communities would negotiate a development agreement. The packet says that process would include leasing the city-owned land to the developer to demonstrate control of the property for a tax-credit application.

Purchase rights changed hands three times

The purchase agreement has passed through several entities since February 2025.

LC Land Investments initially agreed to sell the property to Kestrel. The purchaser’s rights were assigned to EC Royal Crossing LLP in December 2025, returned to Kestrel in May and assigned to Enriched Communities in August. Enriched Communities would now assign those rights to the city.

The current agreement sets a closing deadline of 5 p.m. Sept. 23.

The proposed purchase price is higher than two earlier appraisals cited by city staff. Those valuations placed the property’s value at $2,261,750 and $2,047,000.

According to the council packet, the earlier appraisals were affected partly by a shortage of comparable land sales. An updated appraisal completed after several additional comparable sales valued the property at $3,111,000. The proposed purchase price is $283,956 below that appraisal.

The latest appraisal, dated Aug. 25, identifies the property as three vacant tracts on Samaritan Drive and says its highest and best use would be commercial development.

Packet leaves funding and acreage questions unanswered

Council previously approved a preliminary commitment of up to $4.7 million toward land acquisition and construction, contingent on the project receiving tax credits. The new documents do not clearly state whether the state-funded land purchase would reduce or otherwise change that earlier city commitment.

The packet also contains conflicting descriptions of the property. The state grant attachment calls the project “Royale Crossing,” lists the site as 6.29 acres and provides $2,837,044 for its purchase. The council resolution calls it Royal Crossing, describes 6.49 acres and lists a purchase price of $2,827,044 plus closing costs.

The three lots identified in the resolution — 1.87 acres, 2.62 acres and 2 acres — total 6.49 acres.

Council may approve, reject, amend or postpone the purchase Tuesday. If it rejects the resolution, the packet says the land would remain privately owned and the state grant funding would be returned.