Las Cruces commits $6 million to complete affordable rental complex
Las Cruces City Council took another step toward its goal of cutting into the 5,600 affordable housing rental unit shortfall by 2025.
Council members approved a $6 million pre-commitment to help fund Phase II of the Peachtree Canyon Apartments — a multifamily apartment complex that will ultimately consist of 244 rental units at 7081 North Jornada Road and Peachtree Hills Road — via resolution without discussion at its meeting on Monday. City staff needed Council's pre-commitment before the end of the month in order to preserve the project's eligibility for a Low Income Housing Tax Credit through the state's Mortgage Finance Authority.
"It goes toward meeting that shortfall, but it's the first affordable-style living complex in the Metro Verde development that exists so it's also achieving the goal of diversifying housing across the city," said Councilor Becky Corran, who represents District 5, where the complex will be located.
Phase I of the project will cost an estimated $29 million. Council approved funding for Phase I (144 units) in December of 2022, pledging $7 million for both Peachtree Canyon and the Pedrena Senior Apartment Project.
Phase II will cost an estimated $40 million in total development costs.
Phase I is expected to break ground in the first quarter of 2024 and is made up of one- and two-bedroom units while Phase II will consist of two- and three-bedroom units.
Phase II will not begin until 2026.
Units are rent restricted, meaning landlords would set rent based on the renter's income. Preference would be given to active and retired military and will be smoke free. The property will be all electric and include electric vehicle parking and solar.
"This meets our goals in terms of diversifying affordable housing across the city and makes sure people from low income families have the same access to things as folks in other parts of town," Corran said.
Developer has history of affordable housing projects in southern New Mexico
In October, the Council unanimously authorized $3.3 million in loan agreements between the City and Idaho-based developer Thomas Development Company for the construction of the Pedrena Apartments. The apartments are an 80-unit, senior, rent restricted apartment complex located at 801 Farney Lane and 1955 El Paseo Road.
Construction is expected to begin in January 2024 and when completed, would be available to residents who are 55 or older.
Not to be confused with the prior company, the Thomas Development Group, based in South Dakota, is working on the Peachtree Canyon project.
"There is a partnership with Sierra Norte (Land Holdings LLC) because it's their land, so there is a local connection," Corran said.
"Thomas Development) are more oriented toward sustainability, which falls into desirable characteristics for us and they do use local contractors to make sure they have continuous work so that is part of the reason to kind of stack them."
The Thomas Development Group has a history of affordable housing construction in Las Cruces and southern New Mexico.
According to Development Director Jonathan Andrews, his father, Thomas, worked for a decade on low income housing tax credit development projects in the area, including the Paseo del Oro and Robledo Ridge apartments in Las Cruces and the El Camino apartments in Hatch.
"We are fortunate to have a working relationship with Housing Neighborhood Services Department spanning more than a decade," Jonathan Andrews wrote in an email. "The support and financial commitment from the Las Cruces City Council recognizing the urgent need for more affordable housing solutions led to the Peachtree Canyon Apartment design concept."
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: Las Cruces City council pledges $6M to affordable housing complex
