$6 million Affordable Housing GO Bond could be sold in February

The City of Las Cruces has started three projects with funds that voters approved in 2022 through the issuance of general obligation bonds.

But the City has yet to issue the $6 million affordable housing bond. Once sold, those funds will be added to the City's affordable housing trust fund to help plan, design, construct, acquire and preserve affordable housing as the City looks to address a shortage of 5,600 affordable rental units.

Affordable housing means a household is paying no more than 30 percent of their gross income for rent/mortgage and utilities.

The City hopes to create 300 affordable/attainable housing units by 2025. The $6 million Affordable Housing GO Bond could leverage up to $36.5 million in federal, state, and private funds to add another 175 affordable housing units to the city, according to the City's website.

Unlike the other $17 million in municipal bonds that voters approved for capital projects throughout the City, the affordable housing bond is taxable so the City has held off on its sale in order to avoid interest rates and taxes that might cannibalize the bond.

During a Las Cruces City Council work session on Monday, Las Cruces Housing and Neighborhood Services manager Natalie Green said the bonds could be issued in February of 2024.

"We anticipate those favorable rates will occur in February 2024 so we will sell the bond around then," Green said. "It does allow us to reimburse ourselves for any funding we have already put out."

Green said the City has contracted with Project Moxie to develop the housing investment strategy and also cover the City's overall affordable housing program.

Among the key takeaways so far, an analysis of the City's data has indicated that all types of housing is needed across the income spectrum. Location is critical with preference to close proximity to transportation and work, but Green added that affordable housing projects should also occur in areas of future development. Projects should be prioritized to evaluate and select investment opportunities to balance immediate needs and long term projects. The City will also work with private developers to add housing to already existing or new developments and also leverage expected historical funding levels from the state.

Green said an affordable housing steering committee has met three times. The steering committee will provide feedback regarding the project, assist in community engagement and will recommend projects to City Council.

Green said that City staff is working on a number of developments that are at various stages of permitting and financing prior to construction. The City's housing pipeline includes three multifamily projects across the City that would total over 400 housing units that range from — multifamily apartments, single-family homes for first-time homebuyers and housing for seniors on fixed incomes, for instance.

By choosing to fund the ready to go projects, the community would see the impact of their tax dollars sooner rather than later.

"Given the way development works where you have a pre-commitment, then you package all of your financing and then you start construction, we want to fund some of the projects that are more ready in the pipeline than the further out ones," Green said.

Public Works Director David Sedillo provided an update on the other three GO Bond projects that voters approved in 2022, as well as the outstanding projects from GO Bonds voters approved in 2018.

New Fire Station No. 9 currently over budget

Voters approved a $9.8 million bond in 2022 for a new fire station for central Las Cruces and Sonoma Ranch.

According to Sedillo, the estimated cost for construction is $12.2 million.

"Those are schematic estimates at this time as we work through the final design and based on what is incorporated to the facility," Sedillo said. "At that point we can either work on that number or look to see what additional funding is lacking to be able to build it to that level of service."

Sedillo reported that programming and schematic design has been completed and that the next step is design development with the goal of a bid date in April of 2024.

The estimated cost of $12.2 million is for the base bid for the facility plus bid lot No. 1 for additional bunk spaces. Sedillo also included estimated costs for bid lot No. 2 for a solar carport ($430,000) and bid lot No. 3 for rooftop solar ($440,000).

"We did go back and utilize the services of the architect that were involved with Fire Station NO. 3 and it did help reduce some of those costs," Sedillo said.

$4.9 million to East Mesa Public Recreational Complex

Voters approved $4.9 million in 2022 for the next phase of the East Mesa Recreational Complex. Sedillo said in June the City has $6.9 million for this phase, with the extra two million coming from the State.

About $2.25 million of the new money is being spent on items from Phase 1 - which includes ongoing installation of irrigation and land scaping and play equipment and shade structures for the 10-acre site. Sedillo said the City is in the procurement process with Musco Lighting for $1.9 million.

"Once those materials are received, we will work on installation at the stie," Sedillo said.

The final $2.75 million will be used to continue work at the East Mesa Public Recreation Complex. The design contract for the next phase was awarded to Wilson and Company for $280,000, Sedillo said.

$1.98 million to park improvements

La Llorona Park along the Rio Grande and Tellbrook Park south of the interstate interchange were chosen for improvements from the Parks and Recreation Department's master plan.

La Llorona was identified as the top priority with a new restrooms, upgraded amenities and trail repair, Sedillo said.

Sedillo said the contract for architecture and engineering is out for approval for an estimated $71,000.

Sedillo said any monies left over from design and construction at La Llorona will be used for exercise equipment replacement at Tellbrook Park.

Animal Services Center work nearly done

Before reporting on the 2022 GO Bond projects, Sedillo said the finishing touches at the Animal Services Center of Mesilla Valley should be completed by the end of the year to wrap up the outstanding items funded by the 2018 GO Bonds. The other $35.75 million overwhelmingly approved by voters have all been completed.

Sedillo said work for the get acquainted area will be completed by the end of October. Puppy kennels have been shipped and installation has started and cat condos will be delivered in mid-October.

Jason Groves can be reached at 575-541-5459 or jgroves@lcsun-news.com. Follow him on X, formerly Twitter @jpgroves.

This article originally appeared on Las Cruces Sun-News: $6 million Affordable Housing GO Bond could be sold in February