Two developments would add 272 apartments for older residents, while a separate proposal would transfer city-owned land for two affordable homes

Damien Willis, Organ Mountain News

LAS CRUCES - The Las Cruces City Council will consider up to $7 million in funding commitments Monday for two affordable housing developments that could add 272 apartments for older residents, including projects seeking another opportunity to secure state housing tax credits.

The proposals are among three affordable housing measures scheduled for the council's 1 p.m. meeting Nov. 2. A separate ordinance would authorize the transfer of two city-owned parcels on East May Avenue to a nonprofit developer for construction of affordable single-family homes.

The city's 2026-2030 Consolidated Plan identifies a shortage of nearly 4,500 rental units for low-income households, according to the council agenda packet.

The two larger projects would serve different areas of Las Cruces. Both funding commitments would depend on the developers receiving Low-Income Housing Tax Credit awards from Housing New Mexico and meeting applicable requirements.

Sonoma Ranch project seeks renewed $4 million commitment

Resolution 27-077 would renew a commitment of up to $4 million for The Residence at Sonoma Ranch, a proposed 192-unit development for residents 55 and older near Sonoma Ranch Boulevard and Central Road in the Metro Verde planned development.

The project would be built in two phases of 96 apartments each. All units would be reserved for households earning no more than 60% of the area's median income.

The City Council previously approved up to $4 million for the development under Resolution 25-069. According to the agenda packet, that financing arrangement became infeasible after the project's difficult development area designation was removed.

Thomas Development Group, working with TCON Construction, plans to submit another application for 4% Low-Income Housing Tax Credits through Housing New Mexico in November.

The renewed city commitment would be limited to 15% of total development costs and would support the first 96-unit phase, according to the proposed resolution.

Plans call for a multilevel clubhouse with fitness and business centers, outdoor gathering areas, walkways, gazebos and a covered pavilion.

The agenda summary identifies $1.7 million in available city funding toward the proposed $4 million commitment, with the remaining $2.3 million funding source listed as undetermined. The action would amend the city budget.

Royal Crossing returns with a senior housing proposal

Resolution 27-078 would authorize a commitment of up to $3 million for Royal Crossing Senior Housing, an 80-unit affordable apartment development north of Apodaca Park along Samaritan Drive.

The project would include one- and two-bedroom apartments for income-qualified older residents, along with fitness facilities, community gardens, outdoor grilling areas, shaded pavilions and walking paths.

The City Council previously approved a commitment of up to $4.7 million for Royal Crossing as a family affordable housing project, but the development did not receive a tax-credit award during the 2025-2026 funding cycle.

The city subsequently purchased the property to preserve it for affordable housing, according to the agenda packet.

The new proposal calls for Enriched Communities LLC, in partnership with Tierra Del Sol Housing Corporation, to seek funding through Housing New Mexico's 2026-2027 competitive 9% tax-credit program.

If the project receives an award, the city would enter into an 80-year ground lease with the developer or development partnership. The lease would require annual payments of $12,000.

The proposed $3 million commitment would not exceed 15% of total development costs. The agenda summary identifies general obligation bond revenue as the funding source and states that the action would not amend the city budget.

City-owned May Avenue lots proposed for affordable homes

A third measure, Ordinance 3127, would authorize the city to transfer two vacant parcels at 713 and 717 E. May Ave. to Tierra Del Sol Housing Corporation.

The parcels were formerly part of a property at 710 E. May Ave. that the city's Nuisance Abatement Team acquired in 2019 after identifying it as a deteriorated nuisance property.

The property was placed in the city's Affordable Housing Land Bank and subsequently divided into two lots.

Tierra Del Sol proposes to construct two single-family homes for sale to income-qualified households participating in its homeownership program.

Because the parcels are within the South Mesquite Overlay Historic District, construction plans would require review by the city's Historic Preservation Committee.

The proposed transfer would include land-use restrictions intended to preserve the property's affordable housing purpose. The agreement also includes provisions allowing ownership to revert to the city if development requirements are not met.

Council decisions scheduled Monday

The two senior housing resolutions would establish conditional funding commitments rather than immediately authorize construction. Both depend on future tax-credit awards and certification of the developers as qualified grantees.

Council members also will consider whether to authorize the May Avenue land transfer.

The Las Cruces City Council meets at 1 p.m. Monday, Nov. 2, in the City Council Chambers at City Hall, 700 N. Main St.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.