LAS CRUCES, NM – The Las Cruces City Council approved a resolution for the implementation of a pilot plan that contemplates a revolving loan fund for the purchase of affordable housing.
According to the City Council, the funding would facilitate the development of affordable single-family housing. The Revolving Loan Fund could provide a solution to the current affordable housing crisis, which disproportionately affects low- and moderate-income households.
The Fund will initially have $500,000 from the Affordable Housing Trust Fund, pursuant to the Las Cruces Municipal Code of 1997, as amended, Chapter 13 Division II: Affordable Housing General Oversight Ordinance.
In addition, the Revolving Fund is intended to incentivize developers to create modestly sized and priced homes that appeal to first-time homebuyers or other homebuyers earning as much as 120 percent of the area median income.
The goal of the City’s financing is to help reduce costs for eligible developers building homes in a single-family development by providing low-interest loans to reimburse builders for land acquisition, on-site infrastructure, and building costs.
City staff has recommended an initial partnership with Tierra Del Sol Housing Corporation, a non-profit affordable housing developer and qualified grantee for the construction of affordable housing at the Metro Verde Planned Unit Development.