Las Cruces will tap into its Telshor Fund for a $4 million loan to help pay for construction of an affordable housing apartment complex on the northeast side.
Las Cruces City Council originally pre-committed the $4 million in December 2022 for the Peachtree Canyon Apartments, a multifamily apartment complex that will occur in two phases and ultimately consist of 244 rental units at 7081 North Jornada Road and Peachtree Hills Road.
While adopting the Fiscal Year 2025 budget, city officials determined they would spend about $28.3 million from the Telshor Fund to complete various projects, including $14 million for three different affordable housing projects.
More: Las Cruces commits $6 million to complete affordable rental complex
The $28.3 million from the Telshor Fund would pay 16 projects, reducing the fund from a current market value of $42.9 million to $14.1 million, mostly on capital projects.
Additionally, in September 2022, the City Council approved $2 million in America Rescue Plan Act funding toward the affordable housing project. It is expected to close in September and break ground before the end of 2024. The estimated total cost of the project is $40 million, utilizing city, county, state and federal funding sources.
According to housing development specialist Jan Lauterbach, construction can begin when the mortgage, security agreement and land use restriction agreement are required for final approval.
Phase I of the project will cost an estimated $29 million. It consists of 72 one-bedroom units, 54 two-bedroom units and 18 three-bedroom units. 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.
Thomas Development Group, based in South Dakota, is working on the Peachtree Canyon project. The units are rent restricted, meaning landlords would set rent based on the renter’s income up to 60% of the area’s median income. According to Lauterbach, rents will range from $795 per month for a one bedroom up to $1,101 for a three-bedroom for renters earning up to 60% of the median income. Lauterbach said there have been apartments set aside for households that make no more than 30% of the median income.
City Council waives about $591,000 in fees for the project
In an effort to offset costs associated with the project, City Council waived approximately $591,000 in various fees.
The fees waived were:
Permit fees at $130,979
Park impact fees at $374,400
Public safety impact fees at $85,770
“Through the state of New Mexico’s Affordable Housing Act and the City’s Affordable Housing ordinance, the waiver of impact fees, or payment by alternative source, for affordable housing, is allowed and exempt from anti-donation,” Lauterbach said.
Jason Groves can be reached at 575-541-5459 or jgroves@lcsun-news.com. Follow him on X @jpgroves.
This article originally appeared on Las Cruces Sun-News: Las Cruces approves $4M loan for affordable housing complex
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