The City, County and State continue to struggle with what has been characterized as a housing crisis. This article is an in-depth review of some of the most notable projects that have been funded by the City of Albuquerque, the Bernalillo County Commission and the New Mexico Legislature as their efforts to address the housing shortage. The article also provides in depth statistics of the city’s housing shortage followed by Analysis and Commentary.
HOUSING PROJECTS FUNDED BY CITY
On August 4, the Albuquerque City Council passed R-25-177, a measure to appropriate $7,562,000 in State Capital Outlay funding to three specific affordable housing projects in City Council District 2 represented by District 2 City Councilor Joaquín Baca. The funding, appropriated during the 2025 legislative session through House Bill 450, aims to expand housing options for low- to moderate-income residents.
The resolution allocates Capital Outlay funding from the State to projects that are designed to increase the number of “affordable, transitional, and supportive housing” units. The projects are contingent upon being formally designated as “Qualifying Grantees” and receiving final approval from the Mortgage Finance Authority (MFA) and the New Mexico Department of Finance/Local Government Division.
R-25-177, directs the funding toward three distinct projects in the Downtown and Barelas areas of the city. The largest portion, $5 million, will be used to convert the old Wells Fargo building located third and Lomas into the Lomas Towers. The adaptive reuse projects are expected to create between 100 and 120 rental units for residents earning up to 80% of the area median income. The conversion also includes plans for new commercial space to help revitalize downtown Albuquerque.
All three projects required final approval by the New Mexico Mortgage Finance Authority and Department of Finance.
PROJECTS IDENTFIED
The three projects identified to receive the $7.5 Million in funding are:
- WELLS FARGO BUILDING CONVERSION INTO LOMAS TOWERS APARTMENTS.
A $5 million appropriation for a major adaptive reuse project that will convert approximately 85% of the 14-story former Wells Fargo Building, situated at Third Street and Lomas, into the Lomas Towers Apartments. It will be a 100-120 workforce housing apartment complex. The project aims to address the city’s housing shortage by creating attainable housing for households earning 80% or less of the area median income while also revitalizing the downtown area with new residential and commercial spaces.
On December 19, 2025 it was reported that the sale of the Wells Fargo building, has gone through. The acquisition closed on December 5, marking a significant step in allowing the tower’s new owners to begin their plans to redevelop the structure into mixed-use housing. The new owners are local real estate firm Geltmore LLC and California-based affordable housing developer Lincoln Avenue Communities, a subsidiary of Lincoln Avenue Capital.
The finalized acquisition allowed the developers to access the building, seal off the ground floor and begin some interior demolition and asbestos abatement work as they secure funding and tax credits over the next several months. The structure is expected to be prepped and ready for construction by early summer 2026.
The prep work is the first tangible step in the transformation of the 13-story banking and office building into roughly 100 workforce affordable housing units. Half of the one- and two-bedroom apartments will be priced for those who make 70% or below Albuquerque’s median income and the other half will go to those who make 50% or below the area’s median income, according to Snow.
Twelve stories of the building are dedicated to affordable housing, which will include 60 one-bedroom apartments and 40 two-bedroom apartments. The ground floor will be renovated into office and retail space.
The apartments will be priced for those who make 70% of Albuquerque’s median income and capped at 80%, which for one person stands at $51,200 a year, according to the U.S. Department of Housing and Urban Development guidelines for 2025.
The second floor will include community amenity rooms and a fitness room for residents, while the ground floor will feature publicly accessible commercial, retail and office uses. Lincoln owns and will handle the residential portion of the project, while Geltmore owns the ground floor and land and will handle the commercial components,
- THE ROMERO
This is a $1,931,249 appropriation for a community-driven development in Barelas. The Portland-based developer, Palindrome Communities, estimates the total project cost to be $20.8 million. The project overlooks the Railyards at Second and Santa Fe. A three-story apartment complex is planned that will provide 69 units at varying rates of affordability, ranging from 30% to 80% of the city’s median income. That range means that a person who makes around $18,000 a year and a person who makes nearly three times that will be living side by side. The development will also include 7,521 square feet of commercial space and several live-work units, fostering local entrepreneurship and creating a new mixed-use hub.
- GIZMO ARTSPACE:
The resolution allocates $630,751 for the GIZMO Artspace project. The Gizmo building has historical significance. The building was once a J.C. Penney, which had its grand reopening in 1949. The $630,751 appropriated is not enough to renovate the upper floor into housing, but it’s the first step to getting the decades long-vacant building operable again. Plans are to renovate the vacant Gizmo building on Central into a hub for artists from all walks of life. The 53,000-square-foot, four-story building will house two galleries, 24 artist studios, a library, an art supply store, a print shop and six apartments.
Links to relied upon or quoted news sources are here:
https://www.koat.com/article/albuquerque-city-council-affordable-housing-projects/65601263
https://www.youtube.com/watch?v=lKTQqlUC9ak
https://www.youtube.com/watch?v=lKTQqlUC9ak
https://www.youtube.com/watch?v=lKTQqlUC9ak
UPTOWN CONNECT
On August 19, 2025 the Bernalillo County Commission approved $46 million in revenue bonds to help subsidize the construction of two apartment buildings that will bring more than 200 affordable housing units to Uptown. The project is intended to draw low-to-middle-income residents to the Uptown area immediately South of Coronado Center that is already filled with jobs, amenities and public transit.
The Uptown Connect project is estimated to cost $115 million in total, and through a combination of federal, state, municipal and private dollars, the project is almost fully funded. Palindrome Communities development company is the firm behind the project. Palindrome hopes to break ground in the first half of 2026 and be move-in ready by mid-2028, pending funding from the state.
The Uptown Connect apartment complex will include a four-story tower and a six-story tower. It is planned around ABQ Ride’s preexisting Uptown Transit Center at Indian School and Louisiana NE. The project is expected to increase ridership on city buses and lower single-person car ownership among residents. The neighborhood offers multiple grocery stores, banks, shopping centers and office buildings within a half mile, making it highly walkable for those who can afford it.
When completed, Uptown Connect will be the first affordable housing complex in the neighborhood. The new complex will feature primarily affordable housing. Fifty percent will be reserved for people who make $32,000 a year or less. There will also be 36 apartments that are not income restricted and that will be rented out at market rate. In addition to housing, Uptown Connect will revamp the transit center and add 11,000 and 8,000 square feet of commercial and office space.
The Bernalillo County commission will voted on final approval for the bonds in January 2026.
The link to the quoted or relied upon news source is here:
$2 MILLION FOR CALLE CUARTA PROJECT
On June 2, 2025, the Albuquerque City Council appropriated $2 million dollars for a transformative affordable housing development in Albuquerque’s North Valley known as the Calle Cuarta project. Located at Fourth and Candelaria, Calle Cuarta will deliver 61 affordable rental units for low-income individuals and families, ranging from studios to three-bedroom apartments. The development will also include ground-level retail space and four live-work units to support neighborhood vibrancy. The project is currently under construction and is expected to be completed this fall. City Councilors said that the project is now fully funded for enhancements like solar, EV charging, and landscaping.
The $2 Million investment ensures the addition of sustainability upgrades and community-focused features to benefit future residents. This includes $1.6 million in ARPA Emergency Rental Assistance funding and $380,000 in State Capital Outlay Funding. The funding builds on a prior $3.5 million investment from the City’s Workforce Housing Trust Fund and the donation of five acres of City-owned land to make this project a reality.
Links to relied upon or quoted news sources are here:
141 UNIT DOWNTOWN “SENDERO” AFFORDABLE HOUSING POJECT MOVES FORWARD
On January 8, 2026, it was reported that construction on a stalled housing project in Downtown Albuquerque will continue with a new developer. The project, called Sendero, was announced in 2022 under the name the Downtowner and was originally slated for completion in late 2025, though city officials said the project was delayed due to rising construction costs, financing challenges and market conditions. The Nonprofit affordable housing developer Sol Housing has now taken over the project, slated for a vacant lot on First and Silver SW, from Rembe Urban Design + Development.
The building will reserve some of its proposed 141 units for income-restricted affordable housing. City officials hope the project will be completed in 2027. The original development, Downtowner, had a budget of $30.1 million. City officials at the time had said the development would include 207 rental units, 11 work units and a coffee shop on its bottom floor.
Some of the units will be available for rent based on affordable housing standards set by the U.S. Department of Housing and Urban Development, Brunner said, though income restrictions have not yet been decided. The city had provided the land, a $1.8 million gap financing grant and a tax abatement valued at roughly $1.5 million over seven years for the previous project overseen by Rembe. Once complete, Sendero will include a ground-floor community space, bicycle parking, rooftop amenities and connections to the under-construction Albuquerque Rail Trail, a 7-mile loop connecting core parts of the city to pedestrians and bikers.
The link to the quoted or relied upon news source is here:
COMMERCIAL PROPERTY CONVERSIONS INTO HOUSING
There are two commercial office building being converted in to housing with city subsidized funding. Those conversions are as follows:
TWO PARK CENTRAL TOWER
On December 7, it was reported that the City has reached a development deal with the Houston company Silverstone Equity Partners that owns the vacant 10-story tower in the International District, a key step toward turning the building into housing. The 10-story, 101,000-square-foot Two Park Central Tower sold in August 2023 for just under $2 million. The Two Park Central Tower property tax bill is currently $87,090, but is expected to increase to $205,238 after the apartments are developed. On September 4, the City Council approved a seven-year tax abatement will save the developer a total of $744,332 on its property tax bills.
The development agreement between the city of Albuquerque and Silverstone Equity Partners follows the approval of a building permit for the development in October. The company plans to renovate the property into housing, bringing 110 studios and one-bedroom apartments to the tower that sits at San Mateo and Central NE. A groundbreaking is expected in January, 2026 with the project completion targeted for the first quarter of 2027.
The city has agreed to put $2 million into the project, which is expected to cost $23 million. The project, located at 300 San Mateo NE, will also benefit from a tax abatement the city approved in June, providing more than seven years of tax breaks valued at nearly $750,000.
As part of Silverstone’s plans for the building, 41 of the 110 units will be affordably priced for families making at or below 80% of the area’s median income. The remaining units will be market rate.
On January 8, a groundbreaking ceremony took place on the building as the start of the Serenade at Park Central project. Preparations are being made for full construction to begin in February. The development will feature over 100 new affordable housing units, market-rate apartments, commercial space and landscaping. City leaders believe this project will address Albuquerque’s housing shortage and safety concerns.
https://www.kob.com/new-mexico/__city_invests_2m_for_san_mateo_towers/
https://www.abqjournal.com/business/article_e799fed7-667d-4499-8384-da3823b8e242.html
BANK OF THE WEST TOWER
Another affordable housing development project is the old Bank of the West tower located at Central and San Mateo. Silverstone Equity Partners also owns the larger tower at the intersection. Decades ago it was originally a branch of the First National Bank. It is a 17 story a high-rise office building completed in 1963. When it was built it was the tallest building in the city. It is now the fifth tallest building in the state, and the tallest outside of Downtown Albuquerque. The developer intends to convert the 17-story tower into 160 apartments with “high-end” features like a roof deck, a pool and pickleball court.
TAX ABATEMENTS FOR MAJOR HOUSING DEVELOPMENT PROJECTS
The City of Albuquerque offers tax abatements for projects in the city’s 22 Metropolitan Redevelopment Areas (MRA’s). The majority of MRA’s in the city are in older parts of the city including the Downtown area or on Broadway.
How tax abatement works is that for seven years the city suspends or “freezes” the developer’s taxes at the amount they paid before the property gets any new buildings or upgrades. A developer might be transforming a vacant lot into new housing, for example, which dramatically increases the value of the property. Without the tax abatement, the property tax would have a corresponding increase.
Technically, the city takes the title of the property and leases it back to the developer, exempting the property from property taxes, and the developer makes a payment in lieu of taxes to Bernalillo County that is equivalent to the pre-development property tax. The city’s tax abatement program is relatively new, and about 10 properties have been approved for it.
After the seven years are up, the property taxes will be based on the property’s value at that moment and presumably go up. In the long term, the tax abatement program can increase city revenue because it can incentivize developers to build when they might otherwise leave the property vacant. Developers are required to get the tax abatement approved by city council before securing city building permits.
TAX ABATMENT PROJECTS OUTLINED
There are five major tax abatement projects approved by the city council in the last year. Those projects are as follows:
- The 10-story Two-Park Central Tower near the corner of San Mateo and Central has been approved for a tax abatement by the City and it will now be converted into housing. Developer Route 66 Multifamily plans to turn the vacant office building into 110 apartments. Some of the apartments will be market value, and some might become affordable housing. The Two Park Central Tower property tax bill is currently $87,090, but is expected to increase to $205,238 after the apartments are developed. On September 4, 2024 the city council approved a seven-year tax abatement that could save the developer a total of $744,332 on its property tax bills.
- The old Bank of the West Tower located at Central and San Mateo has also been approved for a tax abatement. The 17 story a high-rise office building is the fifth tallest building in the state, and the tallest outside of Downtown Albuquerque. Developer Route 66 plans to turn the commercial building into apartments.
- A third and only project dedicated to affordable housing that has been approved for a tax abatement will be built at the corner of Central and Alcazar SE. The land has been vacant for almost 20 years. The 70-unit Somos Affordable Housing complex is being developed by Sol Housing. The nonprofit plans to set aside 84% of the units for income-restricted affordable housing. The tax abatement on this project will save the developer an estimated $514,376. The city already owns the land that the Somos project is being built on and will transfer ownership to Sol Housing after the abatement period ends. Felipe Rael, the executive director of Sol Housing, said this in a statement: “With the construction of 70 apartment homes and commercial space to support local small businesses, SOMOS can achieve the vision of the international marketplace, providing much needed housing and economic benefits to the International District. … The city’s support furthers this vision as we work to stabilize housing for 70 senior households.”
- Another housing development project slated for a tax abatement will be undertaken by Titan Development. Titan Development. Titan is planning for a new long-term resident inn and food hall at the corner of Central and Cedar NE across from the Presbyterian Hospital complex. It is being proposed that the 126-unit residential development could be used by traveling nurses working across the street at Presbyterian Hospital. The tax abatement should save the developers an estimated $998,128 over seven years.
- Sunlight Properties and Garfield Townhomes has also received council approval for a tax abatement for a townhome project in the University Heights neighborhood. The developers plan to build 16 townhomes on a vacant lot on Garfield. The current property tax bill of $1,509 would increase to an estimated $25,511 after development, so approval of the abatement will save the developer $151,209 over seven years.
MORTGAGE FINANCE AUTHORITY FUNDING APPROVED
At its May and June, 2024 meetings, the New Mexico Board of Directors of the Mortgage Finance Authority approved a $50 million allocation, along with the $34.6 million in state fiscal year 2025 severance tax bond funding. The breakdown includes:
- $26.6 million to create more housing.
- $20 million for down payment assistance.
- $10 million to preserve existing affordable housing.
- $1 million to create stable housing environments.
- $27 million in reserve to use based on particular demands.
MFA Executive Director Hernandez said this about the allocations:
“Whether it’s building homeownership and wealth, creating more housing, preserving existing affordable housing or creating stable housing environments, our efforts and programs directly align with the key findings in the housing needs assessment report. … I appreciate our board of directors, the governor and legislators for their support and funding for these much-needed programs in our state.”
The full housing needs assessment and links to quoted or relied upon news sources are here:
https://housingnm.org/…/new-mexico-mortgage-finance…
https://www.koat.com/…/monday-breaks-record…/61688417
https://citydesk.org/…/homelessness-has-increased-by…/
2025 NEW MEXICO LEGISLATURE APPROVES $140 MILLION FOR HOUSING PROGRAMS, $83 MILLION EARMARKED FOR CITY
Last year, the 2025 New Mexico Legislature approved upwards of $140 million for housing programs during the legislative session. $83 Million of that is earmarked for projects in the Albuquerque area for housing and the unhoused. On August 26, City, Bernalillo County and State Officials held a press conference to announce that $60 million of the $80 million will be allocated for housing and homelessness projects in the Albuquerque area that will be dedicated to getting 1,000 unhouse people off the streets by July, 2026.
More than $20 million of the funding will be used for expansion of the Gateway network of shelters and services. That includes $5 million for a 204-unit shelter for seniors; $6.5 million for Gateway West, which serves 660 people nightly; and additional funding for Gateway Young Adult.
Another $42.85 million of funding is earmarked to be spent as follows:
- $17.85 million for the purchase of the Poblana Place apartments in Bernalillo County for an 84-unit workforce housing complex for seniors and displaced youth;
- $1.5 million for a new mixed-income development Sombra del Oeste in southwest Albuquerque, adding 72 homes;
- $10 million to convert the iconic but vacant Wells Fargo building in downtown Albuquerque into the 13-story Lomas Tower, which will mean 100 residents for 140 people who earn less than 70% of the area median income (in Bernalillo County, that’s $44,800 for a one-person household);
- and $13.5 million for West Mesa Ridge A and B in the 700 block of Coors Boulevard, which will include 128 three-bedroom homes for residents earning from 30% to 80% of the area median income.
The link to relied upon or quoted news sources are here:
https://www.abqjournal.com/news/article_38b5041d-c3e9-4f66-b8e5-660fa8d37a47.html
CITY’S HOUSING SHORTAGE
A recent study by Root Policy Research found that Albuquerque has a significant shortage of units for low-income renters. It is estimated that Albuquerque is 13,000 to 28,000 units short of meeting the demand for housing.
The most recent Point-In-Time (PIT) Report for the number of unhoused PERSONS experiencing homelessness in Albuquerque is 2,960 broken down in 3 categories:
- Emergency Shelters: 1,327
- Transitional Housing: 266
- Unsheltered: 1,367
Total: 2,960
The link to review the entire 62-page 2024 PIT report is here:
Mayor Keller’s office estimates that there are upwards 5,000 people who are unhoused and who are living on the streets in Albuquerque.
Over the past two decades, rent and house prices have risen faster than income nationwide, meaning low-income Americans are getting priced out and spending, at times, more than 30% of their paycheck to keep a roof over their heads, according to the U.S. Treasury Department.
Albuquerque is struggling with being able to provide sufficient “affordable housing” which is a major contributor to homelessness. A 2024 Denver-based Root Policy Research report, entitled “Albuquerque Region Housing Needs Assessment” found a significant shortage of units for low-income renters. The report found that residents are spending more than a third of their monthly income on housing and that occupied units, such as apartments and single-family homes, often had more residents than rooms available.
The link to a quoted or relied upon news source is here:
STATISTICS PRESENTED
Over the past 5 years, the city has supported the construction of 2,224 housing units, 1,021 of which are subsidized for low to moderate income tenants. On average, the city has been producing between 200 and 250 affordable units per year, for about 450 units total. The city now has a goal of producing 1,000 affordable housing units per year. To reach that goal, the current housing output will have to at least quadruple.
Joseph Montoya, the city’s Deputy Director of Housing, reported the following statistics to the city council:
- Nearly half of renters are rent-burdened.
- Rents have increased 20% since 2021.
- The median house price is $360,000.
- The city’s current waiting list for help with housing is about 800 people long. The city needs to produce 1,500 new units a year to keep up however only 200-250 units are being produced.
In addition to the initiatives already in place, Montoya outlined additional strategies the city would like to use. Those strategies include:
- Expediting planning approvals for affordable housing developments,
- Opening request for proposals, known as RFPs, to “for-profit” as well as nonprofit developers.
- Creating a loan fund for homeowners building affordable accessory dwelling units.
- Align the city’s RFP process with the Metropolitan Redevelopment Agency and to create funding packages for developers.
NEW MEXICO MORTGAGE FINANCE AUTHORITY REPORT ON HOUSING NEEDS
On July 24, 2024 the New Mexico Mortgage Finance Authority (NMFA) officials reported on the findings of the state’s most recent housing needs assessment. It outlined how $84.6 million in state funding will be allocated to address those needs. The New Mexico Housing Needs Assessment is a comprehensive annual report produced by New Mexico Mortgage Finance Authority. It comprises an array of housing indicators describing affordable housing needs in the state.
MAJOR FINDINGS OF MFA REPORT
Following is an edited version of the major findings of the 2024 MFA Housing Needs Report deleting graphs and figures:
NEW MEXICO’S DEMOGRAPHIC PROFILE
“There are 2,112,463 people residing in New Mexico and 812,852 households in the state. New Mexico’s population grew 1.3% over the last five years, a rate which lags its neighboring states: Utah (9.7%), Nevada (7.5%), Texas (6.6%), Colorado (6.2%), and Arizona (5.3%).
New Mexico’s working population, defined as persons 16 years and older, is primarily employed in education and healthcare, at a rate of 25.7%. This rate is consistent with national trends.”
NEW MEXICO’S ECONOMIC PROFILE
- The poverty rate in New Mexico’s poverty is 18.3%, higher than the national rate of 12.5%.
- New Mexico’s median household income is $58,722, which is lower than the national median household income of $75,149.
- The percentage of the population living with a disability in New Mexico totals 34.4%, which is higher than the national rate of 26.4%.
- The rate of households with seniors, which are defined as households with one or more people 65 years of age or older, in New Mexico is 33.8%. Nationwide, the rate of households with seniors is 11.5%.
- Many New Mexico senior households are low or moderate income with 41.8% earning less than $40,000 annually. The national rate is 37.7%.
- The Homeownership rate in New Mexico is 70.9%, which is higher than the national rate of 64.8%.
- 2% of New Mexican households earn less than $50,000 annually. This rate for the country is 33.8%.
- Renters in New Mexico, like the rest of the nation, are more likely to be low-income compared to homeowners.
- The state’s median household income increased from $48,059 to $58,722, or 22.2%. from 2018 to 2022.
- The median home price increased by a whopping 50% from $200,000 to $306,000.”
HOMEOWNERSHIP MARKET AND DEMOGRAPHICS
“In New Mexico, the median sale price of a home in 2023 was $323,230 which increased 5.6% from the prior year. As home price increases outpace wage growth, the ability to achieve homeownership becomes more difficult.
Inequities in homeownership persist with respect to race:
- White households comprise 37.8% of homeowners but 35.6% of the population.
- Hispanic households account for 35.2% of homeowners but 49.8% of the population.
- The relative rates for Native American households is 5.2% of homeowners and 8.5% of the population.
- Black or African American, Asian and households of two or more races are underrepresented among homeowners.
RENTAL MARKET DISPARITY
“In New Mexico, the median monthly gross rent in 2022 was $966, which increased 7.7% from the previous year and 16.7% from 2018. The state’s renter median income increased from $34,837 to $37,408 or 7.4% from 2021 to 2022, which lagged behind rent price increases.”
DECLINE IN HOUSING PERMITS
“Single-family detached homes comprise the majority of New Mexico’s housing stock, followed by a high percentage of mobile or manufactured homes. The number of building permits for residential construction issued in 2023 decreased by 2.2% from the prior year. Despite this dip in the pace of construction, the decades-long trend of depressed building has abated in recent years, with a 71.7% increase from 2019 to 2023.”
DECLINE IN AFFORDABLE HOUSING
“Cost-burden among renters (43.9%) is higher than homeowners (28.4%), largely due to lower income levels among renters. A decreasing supply of affordable housing options, for both renters and homeowners, coupled with increasing demand as the state’s population grows, threatens to worsen cost burden rates.”
PRESERVATION AND REDEVELOPMENT NEEDS
- 2% of houses in New Mexico were built prior to 1980, which indicates a high need to preserve the stock of existing homes.
- 3% of homes are mobile or manufactured housing units. Mobile homes built before 1976 do not meet HUD’s Manufactured Home Construction and Safety Standards, which are federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. Thus, HUD only allows for the replacement of these units rather than rehabilitation.
- 3% of households are overcrowded.
- 0% of households do not have sufficient plumbing facilities and 1.0% lack complete kitchen facilities.
COMMENTARY AND ANALYSIS
The term “affordable housing” is very misleading. It is a term way too often used by elected officials and politicians to simply declare a crisis with inflated numbers that shows there is not enough housing that allows the poor or low-income people to rent or buy a home and call their own. Housing prices and rental costs never come down. The more appropriate term that should be used is “subsidized” housing where it’s clear what is needed is subsidized government funding for those who cannot afford to buy outright or rent and need assistance.
The housing shortage crisis declared is related to economics, the development community’s inability to keep up with supply and demand and the public’s inability to purchase housing or qualify for housing mortgage loans. The shortage of rental properties has resulted in dramatic increases in rents. It is clear that the City of Albuquerque and the state of New Mexico are suffering from a shortage of housing, but that does not mean it is all affordable housing.
The blunt reality is that it is not at all realistic for the City, County nor the State to try and attempt to solve the housing shortage on their own with nothing but government financing and construction. Government’s responsibility is to provide essential services, such as police protection, fire protection and utilities and not to directly compete with the housing industry. It’s the market forces that must be relied upon to get the job done when it comes to housing of all kinds.
The approach that the City, the County and the State has taken in the form of tax deferrals, subsidies and low interest loans to the private sector as incentives to construct housing are the reasonable and responsible approach to help solve the current housing shortage in the city and the state.
City, County and State government can further help the private sector to build more housing by eliminating policies and zoning restrictions that unnecessarily drive-up housing costs so long as there is a preservation and respect for adjoining property owner’s rights and remedies. One area of reform to help the housing industry would be to address and reduce the states gross receipts tax on construction materials in order to bring down construction costs.