Las Cruces will use its Telshor Fund for a $4 million loan to finance the construction of an affordable housing apartment complex on the Northeast Side.
The Las Cruces City Council originally allocated the $4 million in December 2022 for Peachtree Canyon Apartments, a multifamily complex to be built in two phases and ultimately consist of 244 rental units at 7081 North Jornada Road and Peachtree Hills Road.
In adopting the fiscal year 2025 budget, city officials decided to spend approximately $28.3 million from the Telshor Fund to implement various projects, including $14 million for three different affordable housing projects.
More: Las Cruces allocates $6 million to complete affordable rental complex
The $28.3 million from the Telshor Fund would finance 16 projects, reducing the fund’s current market value from $42.9 million to $14.1 million, with most of these funds being used for investment projects.
Additionally, in September 2022, the City Council approved $2 million from the America Rescue Plan Act for the affordable housing project. It is scheduled to be completed in September and groundbreaking is expected to occur before the end of 2024. The total estimated cost of the project is $40 million and will utilize city, county, state and federal funding sources.
According to housing construction specialist Jan Lauterbach, construction can begin once the land charge, the security agreement and the agreement on building restrictions have been submitted for final approval.
Phase I of the project is estimated to cost $29 million. It consists of 72 one-bedroom units, 54 two-bedroom units and 18 three-bedroom units. The Council approved funding for Phase I (144 units) in December 2022, committing $7 million to both Peachtree Canyon and the Pedrena Senior Apartment Project.
South Dakota-based Thomas Development Group is working on the Peachtree Canyon project. The apartments are rent-controlled, meaning landlords set the rent based on the tenant’s income, which can be up to 60% of the area’s median income. Lauterbach said rents for tenants earning up to 60% of the median income will range from $795 a month for a one-bedroom apartment to $1,101 for a three-bedroom apartment. Lauterbach said apartments have been reserved for households earning no more than 30% of the median income.
The city council is waiving fees totaling approximately $591,000 for the project
To offset the costs associated with the project, the City Council waived various fees valued at approximately $591,000.
The fees waived were:
- Permit fees of $130,979
- Parking fees of $374,400
- Public safety impact fees of $85,770
“The New Mexico Affordable Housing Act and the city’s Affordable Housing Ordinance allow waiving development fees or paying from alternative sources for affordable housing and exempts them from the donation ban,” Lauterbach said.
Jason Groves can be reached at 575-541-5459 or [email protected]. Follow him on X @jjpgroves.
