On March 9, Governor Michelle Lujan Grisham signed into law four education bills putting years of investment and measurable student gains into permanent state law. The four bills are intended to bolster reading and math instruction, establish a state Office of Special Education and significantly reduce  health insurance premiums for educators. The four bills cover literacy instruction, math teacher preparation, special education services and school employee insurance.  All four bills  passed both chambers of the legislature with near-unanimous or unanimous bipartisan support.

Following is a summation of the legislation  Governor Lujan Grisham signed into law:

SB 37 (HIGH QUALITY LITERACY INSTRUCTION ACT)

Senate Bill 37 is known as the High Quality Literacy Instruction Act. It  seeks to improve how the state’s schools teach reading by using a grade-specific testing system for early readers and requiring teachers to use approved instructional materials from the Public Education Department. SB 97 was sponsored by Senate President Pro Tempore Mimi Stewart, Rep. Joy Garratt and Rep. Catherine Cullen, and passed unanimously in both chambers.

SB 37 requires teachers to train in literacy instruction with a special focus on students with reading disabilities and English-language learners. Under the bill, the Public Education Department will assign a literacy coach to elementary schools with low average reading proficiency beginning in the 2027-28 school year.

Senate Bill 37 requires K to 3^rd grade  reading assessments, mandates that parents be notified when a child is struggling and assigns literacy coaches to schools statewide to support classroom teachers. The legislation builds on $60.4 million in state literacy investment since 2019, including training more than 10,000 educators in evidence-based reading instruction.

Nearly half of New Mexico elementary and middle school students now read at grade level, up from upwards of  one-third three years ago. Reading proficiency across grades 3 to 8 has climbed 10% since 2022. Students who have historically been underserved are leading those gains:

• Native American students posted 13% improvements.
• Economically disadvantaged students gained 12%.
• Hispanic students gained 10%.
• English learners improved by 8%.

The state is  investing $30 million in capital outlay for a new literacy institute which is modeled on successful programs in Kansas, Florida and Pennsylvania.  The new literacy institute is to be completed by end of 2026 and capable of serving 500 students at a time.

Senate Bill 37  requires schools to employ best practices from a pedagogy known as structured literacy. A Legislative Education Study Committee report on the bill found that similar approaches have paid off to significant effect in states like Mississippi, which also spent years at the bottom of national NAEP scores.  Data published by the Urban Institute shows Mississippi has risen to the top of several categories, when adjusted for demographic information such as race and special education status.

Senate Bill 37  is a companion to Senate Bill 29 discussed  immediatly below.

SB 29  (MATH IMPROVEMENT)

Senate Bill 29  is an effort to reform math instruction in New Mexico’s schools. The bill requires student teachers to take additional undergraduate coursework in math pedagogy to get a teaching license and establishes regular statewide standards for math instruction.  SB 29 requires teachers to conduct regular math assessments in kindergarten through third grade, and to notify a student’s parents if they show difficulty in math.

SB 29 raises math coursework requirements for all teacher licensure levels and directs the New Mexico Public Education Department to develop a Mathematics Instructional Leadership Framework, which outlines math instruction for teachers. Beginning in the 2027-28 school year, the bill requires early math screening in grades K to 3^rd grade, with parent-notified support plans and interventions for at-risk students.

SB 29 passed unanimously in both chambers and was  sponsored by Sen. William Soules, Rep. Debra Sariñana and Rep. Catherine Cullen, and

HB 30 (STIPEND FOR UNDERGRADUATE TEACHER RESIDENTS)

House Bill 30 sets the minimum stipend for an undergraduate teacher resident at 65% of an entry level teacher’s salary, or $35,750. For teacher residents with a bachelor’s degree, the bill raises the minimum stipend to 80% of an entry level salary, or $44,000. The bill mandates teacher residents to spend a minimum of three years at any public school in New Mexico, instead of at the district or school where they completed their residency under the previous law.

SB 64 (OFFICE OF SPECIAL EDUCATION)

has long been a priority for Governor Lujan Grisham. She first established the office by executive order in 2023 and she urged lawmakers to permanently house it within PED during her final State of the State address in January. The office is meant to track and prevent discrimination against special-needs students.

The Office of Special Education will create a statewide Individualized Education Program,  known as an IEP, that will be maintained electronically so that families with special-needs children will not have to start over if they transfer school districts. Governor Lujan Grisham said the initiative is of particular importance to her, because her sister was a special needs student who often had instruction in a “broom closet” because there was no other space for her.

Senate Bill 64 establishes a state Office of Special Education, housed within the PED, to protect and support disabled students. The Office of Special Education will monitor and prevent discrimination against students with special needs, and work to establish policies to help them succeed in school. The special education office will also implement a uniform Individualized Education Program, otherwise known as an IEP, to ensure continuity when students with disabilities move between schools.

Lujan Grisham said the special education bill will help the state meet its requirements under the 2019 Yazzie-Martinez decision, which ruled that the state has a constitutional obligation to provide every student with a sufficient education, especially Native American students, English-language learners, students with disabilities and economically disadvantaged students.

The SB 64 passed 62 to 1 in the House and 38 to 1 in the Senate. SB 64 was sponsored by Senate Pro Tem Mimi Stewart, Rep. Joy Garratt and Sen. Cindy Nava.

HB 47  (SCHOOL EMPLOYEE INSURANCE)

House Bill 47, effective at the beginning of July, requires employers to pay at least 80% of health insurance premiums for public school workers, bringing them to parity with other state employees. Employees would cover a maximum of 20% of their premiums under the bill. HB 47 replaces a tiered employer insurance contribution structure, which varied from 60% to 80% depending on salary, with a flat minimum of 80% for every school district and charter school employee, regardless of salary. The bill is backed by $73.15 million in new appropriations to the public school fund for FY 2027.

Teachers and other state employees will get a 1% raise under the new state budget, down from 3% last year.  Lawmakers have said they hope the cheaper health insurance will make up for next year’s smaller raises.  Sen. Natalie Figueroa, D-Albuquerque said this:

“Health insurance is a cost that is rising so fast it eats into those raises that we try and give our educators. … There is no educator that can stay in a career where their paycheck shrinks year after year after year.”

HB 47 passed unanimously in both the House and Senate  chambers. HB 47 was Sponsored by Rep. Raymundo Lara, Sen. Natalie Figueroa, Senate Pro Tem Mimi Stewart, Rep. Tanya Mirabal Moya and Rep. Brian Baca.

GOVERNOR’S STATEMENT

Flanked by local students and lawmakers from the House and the Senate Education committees, Governor Lujan Grishman she hoped the  package of legislation would help change the state’s reputation for public education, particularly in science and math. Lujan Grisham said that New Mexico’s literacy rate is climbing while the nation’s rate decreases.

The Governor said  this of the legislation she signed into law:

“No child will be left [behind]. No family will be unsupported. … Every student can learn to read. Every student will get support in every context. … I think New Mexico can be the education model for the country … and I’m really proud that I got to be at the beginning phases of that. … This is … one of the state’s most important moments.  …  Today marks another milestone in changing the trajectory of public education in New Mexico. Reading proficiency is up 10 percentage points since 2022. Teacher pay is 30% higher than when I took office. We moved that needle substantially, and we’re not done. Thank you to every lawmaker who invested in New Mexico’s students this session.”

COMMENTARY AND ANALYSIS

New Mexico has long ranked near the bottom of the National Assessment of Educational Progress scores. New Mexico ranked 50th in the country in reading and math in a 2024 report from the National Assessment of Educational Progress, which showed only 20% of fourth graders were proficient in reading and 23% were proficient in math. In middle school, progress worsened with 19% of eighth graders showed proficiency in reading and 14% in math. Governor Lujan Grisham and a bipartisan coalition of state lawmakers at the  bill signing said they hope to see all  that change as a result of the legislation and funding past.

Evidence of improving the state’s education system is becoming clear. Proficiency in reading and math is increasing. Teacher starting salaries in New Mexico are 30% higher than when Governor Lujan Grisham took office over seven years ago. A $30 million summer reading intervention program enrolled more than 16,000 students over two years, producing an 11% increase in reading proficiency among participants.

It’s notewothy that both Senate Bill 37 and Senate Bill 39 passed unanimously in both the House and the Senate. The signing of all the bills into law reflect a sustained  investment in New Mexico public education. Taken together the  bills reflect a major milestone of improving the states lagging education system.

Links to quoted or relied upon news sources are here:

https://www.krqe.com/video/governor-signs-four-education-bills/11592308/

https://www.koat.com/article/governor-signs-four-education-bills-new-mexico-law/70692707

https://www.kob.com/new-mexico/governor-signs-4-education-bills-into-law-with-new-reading-math-requirements/

https://www.abqjournal.com/news/governor-signs-education-package-on-reading-math-teacher-benefits/2996858

https://www.governor.state.nm.us/2026/03/09/governor-signs-four-education-bills-sb-37-builds-upon-years-of-progress-in-literacy-instruction/

https://www.yahoo.com/news/articles/mexico-gov-michelle-lujan-grisham-194345610.html?fr=sycsrp_catchall

 

On March 10, 2026, Governor Michelle Lujan Grisham signed into law the Universal Child Care Act making New Mexico the first state in the nation to guarantee no-cost child care that sets young children up for success and helps make life more affordable for families. The governor also signed legislation removing local zoning and homeowner association barriers to child care expansion in the state.  The two new laws taken together  mark the culmination of a “cradle to career” education plan Lujan Grisham launched during her first year in office.  New Mexico is now  the only state in the nation to offer its residents tuition-free college and no-cost universal child care. The governor signed the bills flanked by lawmakers, families and children enrolled at Santa Fe’s Garcia Street Club School,  the oldest preschool in northern New Mexico and the second oldest in the state, having served Santa Fe families since 1945.

SENATE BILL 241 (THE UNIVERSAL CHILD CARE ACT) 

Senate Bill 241 known as the Universal Child Care Act guarantees that families across New Mexico can access affordable care regardless of income.

Since the program’s launch on Nov. 1, 2025, an additional 12,666 families and 16,706 children have enrolled statewide, and 63 new child care providers have registered for business in New Mexico. More than half of new enrollees were already income-eligible under prior assistance programs. About 30,000 families and 44,000 children are on track to receive free child care this year. According to Early Childhood Education and Care Secretary Elizabeth Groginsky more than 60 new child care providers around the state have also had their applications approved

The Universal Child Care Act  (SB 241)  establishes the statutory foundation for universal child care in New Mexico, allowing the legislature to appropriate up to $700 million between 2026 and 2031 from the Early Childhood Education and Care Fund provided that the fund remains above $10 billion. New Mexico’s FY 2027 budget includes a $160 million increase for child care assistance for a total child care budget of $606 million, plus an additional $30 million, over three years, to support the early childhood wage scale and career ladder.

The legislation also provides fiscal safeguards. Specifically, if inflation spikes or oil revenues decline, the program can adjust co-pay structures to ensure sustainability of the program. As for the guardrails built into the bill, they include potential co-pays for higher-income families and child care waitlists. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices.

Senate Bill 241 contains certain “triggers” that  would allow co-pays to be charged to higher-income families and childcare wait lists to be implemented. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices. The co-pays would only apply to working families, making more than 600% of the federal poverty level. That amount is currently $198,000 per year for a family of four.

The  built-in “triggers” to Senate Bill 241 are as follows:

• Allowing co-pays for higher-income families and child care wait lists.
• A state early childhood agency would be required to take certain steps if any of four different conditions occur.
• Those conditions are higher-than-expected child care enrollment, less than $50 per barrel oil prices, higher than 3% inflation and state revenue growth lagging behind inflation.
• Under any of those scenarios, the agency would either have to enact a waiting list or charge co-pays for working families making more than 600% of the federal poverty level. That amount is currently $198,000 per year for a family of four.

Childcare costs rank among the largest household expenses for working families nationally, averaging more than $13,000 per child per year in many states. New Mexico is making child care free for families who need it, backed by a statutory framework that other states can model as affordability remains a pressing national challenge.

Lawmakers initially expressed skepticism about the governor’s request for additional dollars to pay for the initiative in the run-up to this year’s 30-day session, but ultimately provided at least a temporary funding stream.

Lujan Grisham expressed confidence the program would remain sustainable even after she leaves office at the end of the year.

Senate Bill 241  was sponsored by Senators Michael Padilla, George Muñoz, Linda Trujillo and Bobby Gonzales. House sponsors include Rep. Doreen Gallegos.  The only Democrat in either legislative chamber to vote against the bill was Rep. Joseph Sanchez of Alcalde. Four House Republicans and only one Senate Republican  supported the legislation.

SENATE BILL 96   (THE REGULATED CHILD CARE ZONING REQUIREMENTS ACT)

SB 96  clears the path for more child care providers by prohibiting local governments and home owners associations (HOA’s)  from imposing restrictions on child care homes and centers.  The bill is intended to ensure home-based daycares are not blocked from opening by local zoning requirements. SB 96 will ease zoning restrictions on regulated child care homes in residential areas.  The Governor said she hoped to knock down barriers to where child care facilities can go.

GOVERNOR’S STATEMENT

During the bill signing, and in a statement issued, Gov. Michelle Lujan Grisham described the Universal Child care act  as a “monumental” and said this:

“I really wanted something that would create a sea change for families and children in New Mexico.  … New Mexico is [now] the first state in the nation to offer universal, no-cost child care. … [My]  hope is that we won’t be the last.  I encourage other states to consider our model, and New Mexico is ready to assist in helping others turn the vision into reality for families across the nation. … All parents who need child care can now get it. … When parents are guaranteed no-cost child care, they can improve their family’s quality of life, fully engage in the workforce and contribute to our state’s economy. Families shouldn’t have to choose between paying rent or paying for child care, and as of today, they no longer will. …  I thank every legislator who sponsored these bills or voted to move them across the finish line to my desk. … Their support and hard work will make a profound difference in the lives of New Mexico families.”

 COMMENTARY AND ANALYSIS

There is no doubt that the two most defining issues of the 2026 New Mexico legislative session are medical malpractice reform and free universal childcare to New Mexico families, regardless of income.  Both measures have now been signed into law and will be  the final defining and enduring legacy of Governor Michell Lujan Grisham.

In all, the governor has now signed 66 of the 74 bills sent to her desk. She has not vetoed any bills approved this year.  As of March 11, there are several high-profile measures that remain to be signed including the  $11.1 billion budget bill and a tax package featuring a $10,000 tax credit for physicians.

Links to quoted or relied upon news sources are here:

https://www.abqjournal.com/news/gov-signs-universal-child-care-bill-into-law-vows-program-will-be-sea-change-for-families/2997657

https://www.krqe.com/news/politics-government/legislature/universal-free-childcare-program-becomes-law-in-new-mexico/

https://www.kob.com/new-mexico/governor-michelle-lujan-grisham-signs-universal-child-care-into-law/

https://www.koat.com/article/new-mexico-no-cost-child-care-law/70702925

https://sourcenm.com/2026/03/10/new-mexico-gov-lujan-grisham-signs-free-universal-child-care-into-law/

https://www.abqjournal.com/news/gov-signs-universal-child-care-bill-into-law-vows-program-will-be-sea-change-for-families/2997657

https://www.governor.state.nm.us/2026/03/10/governor-lujan-grisham-signs-nations-first-universal-child-care-law-new-mexico-is-a-national-model-for-early-childhood-care-and-education/

Links to related blog articles are here:

Governor Michelle Lujan Grisham Signs Medical Malpractice Reform Bill, Other Health Care Bills Into Law; All Bills Signed Taken Together Mark Historic Milestone For State Struggling With Shortage Of Health Care Professionals

 

2026 NM Legislative Update: Senate Passes Universal Child Care With Up To $1 Billion Funding Source; Medical Malpractice Bill Moves To House Floor; Passage Of Both To Become Law Remains In Doubt

The Integrated Development Ordinance (IDO) is essentially all of the city zoning laws on how properties are zoned for residential, commercial or industrial use development. The IDO includes zoning and subdivision regulations to govern land use and all development within the City of Albuquerque. It establishes the City’s system of planning citywide. The IDO allows the Albuquerque City Council to amend it every two years. This amendment process has resulted in upwards of 140 amendments in the last two years resulting in mass confusion to the public.

“Up zoning is a land-use planning tool that changes existing zoning regulations to permit more intensive development in specific areas already zoned. Zoning laws govern how property can be used, including housing density, minimum lot sizes, building heights, and parking requirements. Up zoning alters these rules to increase permitted density or intensity of use, allowing more units per acre, taller buildings, or different uses like commercial establishments in residential zones. This process does not directly create new housing but removes regulatory barriers, incentivizing new construction.

The link to the quoted and relied upon source is here:

https://legalclarity.org/what-is-upzoning-and-how-does-the-legal-process-wo

CITY COUNCIL VOTES TO KILL UPZONING

On Wednesday, February 18, after months of debate and two committee hearings, the 9 member  Albuquerque City Council voted 5 to 4 reject a series of amendments Mayor Tim Keller sought  to the city’s zoning laws known as the Integrated Development Ordinance mandating “up zoning” in all established residential areas of the city. The council chamber was packed with spectators. More than 70 people signed up to speak about the amendments with many arguing compassionately either for or against the amendments.  The meeting lasted for hours and until midnight.

The goal of the zoning changes was to double  or triple housing density in established neighborhoods to address what Mayor Keller declared an affordable housing shortage. The zoning law changes would have mandated up zoning and deny adjoining property owners and neighborhood associations all existing rights to dispute or challenge the upzoning. Ultimately, 16 amendments were proposed. All the “up zoning amendments” were voted down by the majority of city  councilors on a 5-4 vote. Voting to reject the zoning changes  were City Counselors Klarisa Pena, Dan Lewis, Renee Grout, Dan Champine and Brook Bassan. Voting in favor of the upzoning  amendments were City Councilors  Tammmy Fiebelkorn, Nichole Rogers, Joaquin Baca and Stephnie Telles.

According to a recent study by Root Policy Research, Albuquerque is 13,000 to 28,000 housing units short of meeting the demand for housing for low-income residents. When supply doesn’t meet demand, rents go up for residents. The proposed amendments to the IDO included a mandate for “up zoning” of all existing residential properties to increase density and allow casita, duplex development, townhome and apartment complex development on virtually every single residential property in established neighborhoods in the city as a permissive use.

In zoning law, a “permissive use” is where a property owner has the exclusive right to decide how their  property can be developed without government approval nor notice to adjoining property owners for approval.  A “conditional use” is  where a property owner is required to secure government approval and construction permits for development of real property and are required to give notice to adjacent property owners with  adjacent  property owners having  rights to object and rights of  appeal.

With the up zoning changes to the IDO, no city applications for up zone changes would have been required and all rights to contest or appeal the upgrading by adjoining property owners and neighborhood associations would have been eliminated.  The mandatory up zoning would have allowed for the development of apartments or commercial use, such as bodegas, on all corner lots in residential areas.

During the February 18 marathon City Council meeting, it was progressive Democrat City Councilor Tammy Fiebelkorn who attempted to reinstate zoning code changes that had been removed in a previous committee meeting. Specifically, the proposed changes would have allowed townhomes, duplexes  and apartments to be built in established single-family neighborhoods, as well as small retailers as a “permissive use”.  The rejected proposals included expanding the definition of casitas and reducing parking requirements to enable denser housing. Among the failed proposals was a push to loosen regulations for Safe Outdoor Spaces, which are city sanctioned homeless encampments on private property owned by churches, businesses or residents. Mayor Keller has said he wants 100 safe outdoor spaces to accommodate 1,000 unhoused people with 10 allowed at each sanctioned city encampment.

PRO AND CON ARGUMENTS

The proposed zoning law  changes drew both gushing, philosophical praise from supporters as well as  anger and condemnations from the public, residential property owners and neighborhood association representatives who signed up to speak to the city council. Throughout the meeting, several supporters of the up zoning amendments were asked to leave the council chambers because of their shouting out loud or speaking out of turn. The failed votes were met with bitter disappointment by proponents and major relief by opponents.

According to city planners who drafted the reforms, the amendments could have spurred development in a city short ten of thousands of housing units.  Albuquerque faces what progressive Democrat Mayor Keller and the 4 progressive democrats on the city council are calling  a “housing crisis.”  They argue without enough housing units to meet demand, rent and home prices will continue to  soar while residents’ wages stagnate. Although both sides are in somewhat agreement that Albuquerque faces a housing shortage but  to what extent it is in question.

Advocates say that housing  shortages are worsening homelessness, which has doubled in Albuquerque since the pandemic, according to recent point-in-time counts. Advocates for the up zoning amendments tried to couch enactment of the zoning changes in terms of moral obligations and a economic rift between generations.

Albuquerque resident Marceline Kostiner during public comment described the zoning changes in moral terms, saying that the council’s reluctance to change rigid zoning code means less affordable housing, worsened poverty and more people living and dying on the streets of Albuquerque. Kostiner said this:

“It will kill people. …The incrementalism here will kill us.”

Jordon McConnell, an Albuquerque resident and spokesperson for the progressive advocacy group Strong Towns said this:

“The people speaking in favor of these amendments are overwhelmingly younger than the people speaking against them. … Most of them already own a home. That’s not a coincidence. It’s the generation that’s trying to stay here to build a life in Albuquerque, asking all of you to make just the smallest amount of room for us.”

CITY COUNCILOR TAMMY FIEBELKORN PLAYS RACE CARD

Progressive Democrat Albuquerque City Councilor Tammy Fiebelkorn was the sponsor of the up zoning amendments at the request of Mayor Tim Keller. During council debate, Fiebelkorn played the “race card” when she said that the existing zoning codes, when applied incorrectly, segregated people of color and the poor from more affluent residents. Fiebelkorn said this:

“One commenter earlier today made the statement that [single-family residential zoning] was created for a purpose. … And I want to say, ‘Yeah, it really was.’ It was created for the purpose of keeping ‘those people’ out of your neighborhood. There is no other reason to think that you would not want a duplex next door to you.”

OPPOSITON TO UPZONING

Opponents said up zoning changes would open up their neighborhoods to investment development and to gentrification. Opponents argued that loosening zoning regulations and limitations only serves to line developers’ pockets because there is no incentive to build affordable housing and only high end housing and  luxury apartments would be developed.

For established homeowners, the amendments were viewed as an overt threat to their way of life and to their home ownership. Homeowner Keith Allen said this during public comment:

“[Homeownership] is the American dream.  People work for 30 or 40 years for a [residential] zoning place. We want to keep those requirements.”

Westside  City Councilor Dan Lewis  agreed with homeowners, who he said worked hard and intentionally sought out suburban areas for peace and quiet. Lewis said the citywide zoning changes threatened to undo those decisions by opening neighborhoods up to unwanted development and population density, he said.

https://www.abqjournal.com/news/city-council-votes-down-zoning-reforms-in-tense-final-meeting/2984846

https://nationaltoday.com/us/nm/albuquerque/news/2026/02/26/albuquerque-city-council-rejects-controversial-zoning-code-changes/

https://www.abqjournal.com/news/city-council-votes-down-zoning-reforms-in-tense-final-meeting/2984846

https://www.newsradiokkob.com/2026/02/19/57571/

https://citydesk.org/2025/08/14/opt-in-zoning-proposal-suffers-decisive-defeat-in-committee/

COMMENTARY AND ANALYSIS

There is no doubt that the failure of all the proposed IDO amendments and zoning code changes highlighted the City’s challenges in addressing its housing affordability and availability issues. The debate also highlighted and exposed the tensions between affordable housing activists who want to increase density to boost housing supply and homeowners and neighborhood associations concerned about preserving neighborhood character and tranquility without increasing density.

Affordable housing activists are continuing with their aggressive efforts demanding city wide up zoning by disparaging on social media the city councilors who voted to reject the up zoing amendments and now targeting those city councilors up for re election in 2027. Affordable housing activists have gone so far as to target City Council President Klarissa Pena  on social media with unfounded and vicious attacks on her vote, her integrity and reputation and her 12 years of service as a city councilor. They simply do not like the fact she is a voice or reason as she seeks a viable and reasonable compromise. The affordable housing activists attitude is that it is there way or suffer the risk of being voted out of office.

FEIBELKORN PLAYS THE RACE CARD, LOBBY’S LEGISLATURE TO STRIP CITY OF ZONING AUTHORITY

It is downright reprehensible that Albuquerque City Councilor Tammy Feibelkorn played the race card in her effort to get the city council to enact her amendments. She did so during the Land Use Planning and Zoning Committee which she was chaired at one time but was removed by the new City Council President Klariss Pena.

Feibelkorn has insulted multi-generational Hispanic New Mexicans implying that they are racist for wanting to protect their homes and their communities by opposing up zoning that would destroy the historical nature of their neighborhoods by developers. Vocal opponents of up zoning include Bianca Encinias, a neighborhood activist with the Historic Neighborhood Alliance and Loretta Naranjo Lopez, who is a representative from Envision Albuquerque and who is also a multi-generational resident from Martineztown. Ms. Loretta Naranjo Lopez is the longtime President of the Martineztown-Santa Barbara  Neighborhood Association. She is also a retired from the City of Albuquerque having worked in the Planning Department dealing with city zoning laws and code enforcement.

During the 2026 New Mexico legislature, and attempt was made to eliminate the possibility to reassess property values for tax increases  when a property is rezoned. The legislation failed in committee. The 2026 legislature also considered legislation sponsored by Albuquerque area State Senators  Moe Maestas and Heather Berghmans that would have removed all zoning authority from city and county governments. That legislation also died in committee. City Councilor Tammy Feiblkkorn actively lobbied for the legislation that would have stripped the city of Albuquerque of all its zoning authority in the interest of creating more “affordable housing”.

COUNCIORS BACA AND ROGERS VOTE YES TO DETRIMENT OF CONSTITUENCY

The proposed amendments to the Integrated Development Ordinance were a pathetic attempt by progressive Democrats Mayor Keller and the 4 progressive Democrate  city councilors to address the city’s so called “housing crisis” and to increase affordable housing. The term affordable housing is about as misleading as it gets. It is a term often used by politicians, elected officials and developers to promote their own personal or political agendas to gain support for their positions and government funding for development projects. When the term “affordable housing” is used by the politicians, elected officials and real estate developers, what they actually mean is “subsidized government housing”.

The two City Council Districts that would have been the most affected by the mandatory up zoning changes would have been District 2 and District 6. District 6 is the city-center district encompassing downtown, old town, and includes the most historical areas of the city, part of the west mesa, and the entire valley east of the river and is represented by City Councilor Joaquin Baca.  District  6 includes Albuquerque’s Southeast Heights encompassing the University of New Mexico, and the International District and is represented by City Councilor Nichole Rogers.

Both Districts 2 and 6 have the highest concentration of minorities and lower income residents. It is these two districts that would have been  the likely biggest targets by investors, speculators and developers to buy up properties from generational family’s for redevelop leading to gentrification. Both City Councilors voted for the up zoning changes believing the change in law would lead to “affordable housing” when in fact it would have resulted in the displacement of many of their constituents as investors sought to buy up residential properties for high end developments and not affordable or low income housing.

EXISTING HOMEOWNERS CANNOT AFFORD UPZONING CONSTRUCTION COST

Mayor Tim Keller, his Planning Department and all the four progressive City Councilors who support up-zoning want to double or triple housing density in established neighborhoods over strenuous objections from property owners and neighborhood associations.

They want up zoning  development  by existing residential property owners to increase density and allow casita, duplex development and townhome development in virtually every established neighborhood in the city, even historical areas of the city.  Ostensibly, they believe existing property owners can afford to build on their own properties whether they own the home outright or if there is a mortgage.

Residential  zoning covers 68%  of the city’s existing housing and consists of 120,000 single-family detached homes on  residential lots.  The lots  allow only single-family homes, which city officials say has contributed to exclusionary patterns and limits housing options for lower-income households. The new rezoning process proposed was designed to loosen those restrictions and allow to double or triple housing development in established neighborhoods ignoring what the neighborhoods want.

Construction costs are consistent when it comes to building an entire house or adding a free-standing casita or converting a residence to a duplex or town home. There is no real differentiation between the basic construction costs to construct “affordable housing” and other types of housing.

According to the Homebuilders Digest construction costs cover everything from materials to the actual construction. In Albuquerque there are four basic categories of construction:

1. A value-based custom home would start around $175per square foot. This is a home that would have builder-grade finishes, such as ceramic tile, laminate flooring, basic cabinets, level one granite or quartz, aluminum or builder-grade vinyl windows, value series appliances, and basic plumbing and electrical fixtures.
2. A mid-range home would start at around $225per square foot. Mid-range finishes would include porcelain tile, engineered wood, mid-level cabinets with soft close, level two or three granite or quartz, and a moderate budget for plumbing and electrical fixtures. It would also have premium vinyl or fiberglass windows and higher-end appliances.
3. A high-end custom home would start at around $275 per square foot. Such a home would have all high-end custom finishes, fiberglass or wood windows, and professional appliances.
4. A home with energy efficiency features would range between $200 to $400per square foot depending on selections for mechanical systems, windows, plumbing and lighting fixtures, cabinets, appliances, flooring, and more.

The link to the relied upon or quoted source is here:

https://www.homebuilderdigest.com/cost-guides/how-much-does-it-cost-to-build-a-house-in-albuquerque/

The minimum hard construction cost to build a 750 square foot free standing casita or convert an existing residence to a duplex by adding on 750 square feet of living space at the value base cost of $175 or the mid-range cost of $225 would between $131,250 (750 square ft. X $175) or $168,750 (750 X $225). The homeowner who does not have the cash savings to pay the construction costs, a second or third mortgage on the residence would be required.

The overwhelming majority of existing homeowners cannot afford the construction costs for a free-standing casita or the conversion of their homes to a duplex,  townhome or apartments. Simply put, only developers and investors who speculate will be able to double or triple density by buying up existing homes for purposes of building casitas or converting residences to a duplex, town home or apartments.  After that is done, the profit motive will be to sell or rent at the highest level and not for affordable housing.

ZONING CHANGES WOULD HAVE  DESTROYED  NEIGHBORHOODS

Mayor Tim Keller, the  City Planning  and City Councilors who want to allow apartment development or retail business development, such as bodegas, on all corner residential lots in all established neighborhoods, They want to benefit developers by  depriving adjacent property owners the right to object and appeal. Such development will no doubt result in magnets for crime and heavy traffic patterns destroying the tranquility, livability and character of established neighborhoods.

Keller and the Planning Department erroneously believe that increased density will increase affordable housing as they simply ignore the market forces and the profit motive. They argue in essence that “flooding the market” with more housing than what is needed will result in lower cost of housing and make available more housing for sale and rent. It’s a false and very misleading narrative.

The one thing Albuquerque does have is open space that can be developed. There is no need to increase density in established neighborhoods that will destroy a neighborhood’s character. Sources within the Planning Department have confirmed the city has already “pre-platted” residential development of 125,000 to 150,000 residential lots. If  Mayor Keller and City Planning want to allow “up-zoning” they should do so only on undeveloped, vacant land or vacant commercial properties and leave existing neighborhoods alone without forcing them to sue.

UPZONING WOULD HAVE LEAD TO PROPERTTY TAX INCREASES AND  TO GENTRIFICATION

The Bernalillo County property tax code is clear. The taxable value of a property is 33 1/3% of the assessed value as determined by the Bernalillo County Assessor. Under the property tax code, residential property assessments may NOT rise more than 3% per year unless the property changes ownership, is improved or is REZONED.

The mandatory up zoning would have allowed the Bernalillo County assessor to increase property values and increase property taxes. Such a scenario has played out in Las Cruces, New Mexico where property taxes in fact were raised dramatically because of up zoning.

What should be alarming to all existing residential property owners is that the Planning Department failed to consider how the up-zoning zoning changes they were  proposing would  likely change Bernalillo County’s property value assessments and tax assessments.

Rezoning all residential property would have  affected the property tax cap of 3% and allow for increases in property taxes. Simply put, increasing density increases real property values for tax assessment. Government entities never resist the temptation to increase property taxes and property taxes historically never, ever come down.

The  “Up-Zoning” agenda of the Planning Department and Mayor Tim Keller would have made gentrification an official city policy because real property taxes will soar and lower income property owners would not be able to afford the increase in property taxes. They would be forced to sell their properties to speculators and developers resulting in displacement and gentrification.

One thing is clear, there was absolutely no language in the Integrated Development Ordinance amendments that specifically required affordable housing. There was no language in the proposed amendments that addressed private equity and developer price speculation.

Specifically, the proposed changes would have allowed townhomes,  duplexes and apartments to be built in established single-family neighborhoods, as well as small retailers and grocery stores known as bodegas. The rejected proposals included expanding the definition of casitas, and reducing parking requirements to enable denser housing.

CONCLUSION

Up zoning efforts by Mayor Tim Keller and City Councilors Tammmy Fiebelkorn, Nichole Rogers, Joaquin Baca and Stephnie Telles are nothing more than giving investment speculators and developers carte blanche to buy up residential properties to destroy existing neighborhoods by increasing density leading to gentrification.  Mayor Keller and the city council need to keep their hands off established neighborhoods. They need to seek better and more informed ways to create affordable housing.

The link to a related blog article is here:

2026 Legislative Update By Steve Holman: “Major State-Wide “Upzoning” Bill Usurping Local Government’s Zoning Authority Killed In Senate Committee; ABQ City Councilor Tammy Fiebelkorn Goes Rogue Asking Legislature To Usurp All Local Government Zoning Authority”; ABQ City Council Will Meet Feb.18 For Final Votes On Integrated Development Ordinance Amendments Rejecting Upzoning; Contact Your City Councilor

On March 6, Governor Michelle Lujan Grisham  signed several bills enacted by the 2026 New Mexico Legislature with the goal of  transforming New Mexico’s health care system by reforming medical malpractice law, health care affordability, patient billing transparency and hospital funding and more.  The governor signed the bills at the  soon-to-open Valencia County Hospital, a 15-bed acute care facility owned by Valencia County and operated by Community Hospital Corp. and Lovelace. The new Valencia County Hospital is being partially funded with a $50 million state investment.

The bills the Governor signed are  HB 99, HB 4, HB 306 and SB 101, among others. Taken together, the bills represent a historic milestone in the governor’s years-long push to alleviate statewide physician shortages, make health care more affordable and improve the long-term financial security of hospitals across New Mexico.  Following is a summation of the legislation signed into law:

MEDICAL MALPRACTICE REFORM BILL

HB 99 is the medical malpractice reform bill. Its goal is to help reduce the cost of medical malpractice insurance and attract more physicians to New Mexico. The bill creates tiered caps on punitive damages. Those caps are $1 million for independent providers, $6 million for locally owned hospitals and $15 million for large systems.

Critics have said the multi-tiered cap on punitive damages in medical malpractice cases will ultimately be subject to court challenge as being unconstitutional. The higher cap would apply to more than 30 hospitals statewide, including five Presbyterian Healthcare Services hospitals and five Lovelace Health System hospitals. It could also apply to the new Valencia County Hospital, a $61 million facility set to open as soon as this fall that will be jointly operated by Lovelace and Community Hospital Corp., its CEO Tammie Chavez said.

HB 99 also raises the evidentiary standard  from a “preponderance of evidence” to “clear and convincing,” requiring judicial review before punitive damage claims can proceed. The bill passed the House 66 to 3 and the Senate 40 to 2. Sponsors include Reps. Christine Chandler, Minority Floor Leader Gail Armstrong and House Majority Whip Day Hochman-Vigil.

Supporters of HB 99  said the caps on punitive damages are necessary to reduce doctors’ insurance premiums and lower the cost to practice in the state, which could help New Mexico recruit and retain physicians. A Legislative Finance Committee survey published in January found about two-thirds of New Mexico physicians were considering leaving the state. The most common reason for leaving the state was punitive damages associated with medical malpractice. Opponents argued HB 99 would leave malpractice victims with less of a path to justice without improving the state’s supply of providers.

HB 99 was the result of an “incredible journey” said sponsor Rep. Christine Chandler, D-Los Alamos. The bill stemmed from more than a year of tense legislative discussions, with behind-the-scenes negotiations ramping up in the weeks ahead of the 2026 legislative session.  Chandler said this of the final version of HB 99:

[HB 99] is a balanced approach that will improve the climate for our doctors while preserving avenues to justice for our patients who are harmed. …  This is a reasonable compromise that brings our laws more in line with what other states do, and it assures our doctors that they are valued. And it will also help bring providers here.”

New Mexico doctors anticipate it will take time to see the effects of the reform. Dr. Robert Underwood, president of the New Mexico Medical Society, said this:

“Physician training is kind of on an annual cycle, and so it’ll be a couple of years as we can attract more and more physicians to the state. … I think it sends a really good signal to physicians and honestly to medical malpractice insurance underwriters, that we are open for business and we’re coming back online, and that’s going to shift the whole culture of health care in the state of New Mexico.”

PROTECTING COVERAGE WHEN CONGRESS WON’T

HB 4 increases revenue to the Health Care Affordability Fund, ensuring coverage stays affordable for working families and small businesses statewide. The FY27 budget approved by New Mexico lawmakers includes $294.4 million for health care affordability programs and for protecting coverage for up to 46,600 New Mexicans and reducing costs for up to 122,000 people statewide.

In 2025, Republicans in Congress eliminated the Affordable Care Act’s enhanced premium tax credits and slashed Medicaid. Without this state investment, tens of thousands of New Mexicans would risk losing medical coverage immediately. HB 4 passed the House 48 to 19 and the Senate 24 to12. Sponsors include House Floor Leader Reena Szczepanski, Rep. Liz Thomson, Rep. Bobby Gonzales, Rep. Joseph Hernandez and Rep. Anita Gonzales.

ENDING SURPRISE BILLS FOR ROUTINE CARE

HB 306 prohibits hospitals and health systems from charging facility fees directly to patients for preventive outpatient care, outpatient vaccinations and telehealth services and is intended to curb  surprise charges for routine care. The bill preserves facility fees for inpatient and emergency care and protects rural hospitals. It also strengthens patient notice requirements and standardizes billing so families understand what they may owe before care is delivered. HB 306 passed both chambers unanimously. Sponsors include House Floor Leader Reena Szczepanski and Sen. Liz Stefanics.

PROTECTING HOSPITALS THAT SERVE MEDICAID PATIENTS

SB 101 repeals the sunset clause in the Health Care Delivery and Access Act ensuring continued financial support for eligible hospitals that care for Medicaid members. The Act, signed in 2024, was created to support urban and rural hospitals using a funding structure that leverages federal dollars.  Federal changes enacted in July 2025 reduced funding levels for hospital programs like this one nationwide, and the program is expected to shrink to about one-third of its current size. SB 101 helps protect the program from future federal changes that could put it at risk of termination. The bill passed both chambers unanimously. Sponsors include Sen. Liz Stefanics, House Floor Leader Reena Szczepanski, Rep. Liz Thomson, Sen. Linda Lopez and Sen. Nicole Tobiassen.

OTHER LEGISLATION SIGNED

The governor also signed the following health care bills:

HB 38: Wheelchair Insurance Coverage
HB 34: School Nurse Licensure Provisions
HB 156: Repeal Special Session Vaccination Laws
SB 20: Prior Authorization & Prescription Drugs
SB 21: Medicare Supplement Open Enrollment
SB 30: Repeal existing requirement to report all induced abortions statewide.

GOVERNOR’S STATEMENT

Governor Lujan Grisham said this of the legislation she signed into law:

“New Mexico is 5,000 doctors short, and that’s before we deal with 7,000, it depends on the number, 9,000 nurses short, and a number of other healthcare practitioners. … New Mexico families deserve a health care system that works for them — one where doctors are available, bills are fair and coverage doesn’t disappear because of bad decisions made in Washington.  The bills I signed today are a direct response to the barriers that have stood between New Mexicans and the health care they need and deserve. … I want to thank every member of the New Mexico Legislature who voted for these bills, and especially the sponsors for their hard work in making sure they got to my desk.  All New Mexicans will benefit as a result.”

OTHER BILLS REMAINING TO BE SIGNED

With the governor facing a March 11 deadline to act on legislation approved during this year’s session, some high-profile measures still remain to be singed into law. Those include a $11.1 billion budget bill for the coming fiscal year and a tax package that includes a $10,000 personal income tax credit for physicians who practice in New Mexico on a full-time basis.  In all, Lujan Grisham has signed 49 of the 74 bills approved by the Legislature. She has not yet vetoed any measures that have reached her desk this year.

COMMENTARY AND ANALYSIS

House Bill 99 was the most closely watched and most contentious measure of the 30-day legislative session.  Gov. Michelle Lujan Grisham, who supported the proposal, insisted she would call a special session if the Legislature failed to pass a substantial overhaul to the malpractice law.

All the enacted legislation signed by the Governor can be considered a major milestone for the state as it struggles with recruiting health care professionals.  As is the case with any legislation as complicated and as contentious as the major changes to Medical Malpractice Act were, it will likely be years before its full  impact can be gaged. No doubt future litigation will occur and the constitutionality of the caps will be challenged by the trial attorneys.

Success will be measured if insurance premiums in fact go down and if the physicians stop leaving the state. The blunt reality is that the unintended consequences just may wind up being that victims of medical malpractice will in no way be adequately compensated for their life changing injuries and medical malpractice will not be adequately addressed, in which case the legislature will be revisiting and wind up  repealing  what they have enacted and the state will be back to square one.

Links to quoted or  relied upon news sources are here:

https://www.abqjournal.com/news/governor-signs-medical-malpractice-bill-predicts-it-will-deliver-quick-results/2995351

https://www.santafenewmexican.com/news/legislature/new-mexico-governor-signs-major-medical-malpractice-bill-into-law/article_2e02aa3a-1f65-42a6-b46e-6305882aa26e.html

https://www.krqe.com/news/politics-government/governor-michelle-lujan-grisham-signs-healthcare-bills-into-law/

https://www.kob.com/new-mexico/governor-signs-bill-for-medical-malpractice-reform/

https://www.kunm.org/kunm-news-update/2026-03-06/new-mexico-governor-signs-malpractice-reform

Governor signs medical malpractice reform, other health care bills into law  

During the 2024 and the 2025 legislative sessions, the New Mexico Legislature dedicated more than $300 million to various housing-related measures at different agencies, including revolving loans for builders, down-payment assistance and anti-homelessness programs.  The Legislature specifically earmarked $110 million in the 2025  year’s budget of the $10.8 billion budget for affordable housing and homelessness assistance programs statewide. That came after lawmakers appropriated more than $20 million for such programs in the previous year.

On August 19, 2025, in a news release, Democrat Governor Michelle Lujan Grisham announced that housing funds the state Legislature approved during the 2025 legislative session would be distributed. According to the news release, the funding includes:

• More than $80 million for housing and homelessness projects in the Albuquerque area
• More than $11 million for housing and homelessness projects in the Las Cruces area
• More than $13 million for housing projects in other parts of New Mexico
• $7.8 million for projects to support students experiencing homelessness at public schools in Albuquerque, Las Cruces and Santa Fe

According to the news release, the newly created Office of Housing within the New Mexico Department of Workforce Solutions (DWS) is responsible for distribution of $120 million of the funding beginning in August. DWS Secretary Sarita Nair said the funding will go toward “proven strategies” for tackling the housing crisis. What this means is focusing on building more housing, preventing homelessness and ensuring that people who move into homes after living on the street have “wrap-around support and thoughtful interventions”.

According to the news release, the governor’s office is expecting the initial funding will result in the creation and support of more than 1,500 affordable housing units, more than 1,500 shelter beds, more than 150 transitional housing units for people leaving shelters and prevention programs to help more than 3,500 families avoid falling into homelessness.  It will also support street outreach with support services for people who live on the streets,

According to recent estimates, the state lacks more than 32,000 housing units. Rents and homelessness have increased far beyond the national average in recent years, especially in Albuquerque, the state’s biggest city.

SPECIFIC DISTRIBUTION OF FUNDING ANNOUNCED

The 2025 New Mexico Legislature approved upwards of  $140 million for housing programs during the legislative session. $83 Million of the $140 Million 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. The $80 Million will be dedicated to getting 1,000 unhouse people off the streets by July, 2026.

The roughly $80 million will fund 10 projects in Albuquerque, including seven affordable housing developments and expansions to homelessness facilities and programs. Of the millions in funding, 23% will benefit homelessness projects, including prevention, and 77% will go toward housing.

More than $20 million of the funding will be used for expansion of the city’s Gateway network of five shelters and services to include the following funding:

• $5 million for a 204-unit shelter for seniors
• $6.5 million for Gateway West, which serves 660 people nightly
• The Gateway and Youth Homelessness Facility, a wraparound services hub with locations at 5400 Gibson SE and 7440 Jim McDowell NW, will collect more than $16 million to expand programs, resources and the number of beds. The Gateway Young Adult program will provide an “appropriate space for young adults” to receive services and a path to permanent housing.

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. This project will receive the most from the roughly $80 million is the Poblana Place Apartments, a “move-in ready” 84-unit complex that Bernalillo County is in negotiations to purchase with the purpose of adding workforce housing and support services for seniors and displaced youth. The project, located at 2818 Fourth NW, is set to receive nearly $18 million.
• $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);
• $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 West Mesa Ridge multifamily facility under construction at 701 Coors NW and set to house up to 448 people, will receive more than $10 million.

For Bernalillo County, the funding is expected to deliver 1,062 housing units and 925 beds for people experiencing homelessness. Bernalillo County Commissioner Barbara Baca said this:

“We need this for our community. … Many families are making impossible choices between housing and food and too many people are without shelter. We all see it. Housing is not just about buildings, however. It’s about the people, our children, our seniors and our working families. When we invest in housing, we are investing in a safer neighborhood, better educational outcomes and (a) stronger economy for all.”

Funding for “gap financing ” to private developers to ensure affordable housing complexes get built is also included. One such project, the Tierra Linda Projects, will receive $6 million to complete the financing for a 240-home development to house roughly 840 low-income residents in what is now a dirt lot.

The rest of the initial allocation of the $120 million includes roughly $11 million for housing and homelessness projects in Doña Ana County, more than $13 million for housing projects in other areas of New Mexico, and $7.8 million to support families experiencing homelessness in school districts in Albuquerque, Las Cruces and Santa Fe.

In total, city, county and state officials say the investments will create and support more than 1,500 affordable housing units, more than 1,500 shelter beds and programs, more than 150 transitional housing units and more than 3,500 families through prevention programs. Taken together, the new funding will enable leaders in Bernalillo County and Albuquerque to help 1,000 people find stable shelter within the next year.

$175 MILLION CAPTAL OUTLAY2026 PASSED BY NM LEGISLATURE 

During the 2026 legislative session, the New Mexico legislature appropriated $175 million for statewide housing and homelessness initiatives. On March 11,2026 Gov. Michelle Lujan Grisham  signed in into law the capital outlay bill passed during the 2026 NM Legislative Session that ended February 19.

ELECTED OFFICIALS REACT

Governor Lujan Grisham said this about the funding in a statement:

“When families don’t have to worry about keeping a roof over their heads, everything else becomes possible. These investments reflect our commitment to tackling housing and homelessness with urgency and compassion.”

During the August 26 press conference announcing the distribution of funding, New Mexico House Speaker Javier Martínez (D-Albuquerque) said he and his colleagues “took a lot of heat” for requesting such a hefty investment for Albuquerque. Speaker Martínez said the city needs the lion’s share of the new housing funding because it is the epicenter of the state’s housing crisis. Speaker  Martínez said this:

“Here is where the services are for communities. … And so I was not shy, and my House colleagues were not shy, about calling that out and making sure that we delivered money that could be used and executed today. …These are investments that are targeted for working families, so that they can afford their housing. These are investments for people out on the streets, so they can access transitional and supportive housing. … These are big-time ideas, big-time investments, and this is just the first step. … [W]hy is Albuquerque getting this special pot of money? Well, here’s why. Over 70% of our unhoused population comes from other parts of the state. Why? Because here is where the services are for communities.”

During the August 26 press conference, Albuquerque Mayor Tim Keller highlighted the  challenges with affordable housing shortages, addiction and homelessness in Albuquerque.  Keller said this:

“We have national trends, whether it’s a housing shortage in general across America, or whether it is challenges around fentanyl and addiction and unhoused and homelessness, and then we have our own Albuquerque challenges. … But this is a step-change answer to those issues. …
We need help now because these are tough times. …  There is no one answer to all these issues I just laid out. You actually have to attack the problem across the spectrum, whether it’s rehab and prevention, whether it’s treatment. … I think this is the first comprehensive approach to this.”

On August 26, State GOP Chair Amy Barela said this in a statement:

“[T]hese investments are designed to lift up families, create stability, and strengthen our communities. … From new workforce housing at Poblana Place Apartments, to senior housing at Juniper Flats, to expanded youth homelessness facilities, these projects prove what can be accomplished when taxpayer dollars are used wisely to improve lives.”  Barela continued by saying  “our taxpayer dollars must be protected” and cautioned that threatened federal funding cuts — like those currently leveled at the state by the Trump administration — could imperil such investments. Barela said this:

Links to quoted or relied upon news sources are here:

https://sourcenm.com/2025/08/26/albuquerque-area-leaders-tout-arrival-of-more-than-80-million-for-housing-and-homelessness/

https://www.abqjournal.com/news/article_38b5041d-c3e9-4f66-b8e5-660fa8d37a47.html

CITY’S  HOUSING SHORTAGE

According to recent estimates, the state lacks more than 32,000 housing units. Rents and homelessness have increased far beyond the national average in recent years, especially in Albuquerque.  Albuquerque’s count of unhoused individuals has increased by 108% since 2017, a rate more than two-and-a-half times the national average, according to the Pew Charitable Trusts, which also reports median rents in the city increased 46% between 2019 and 2024. Overall, Albuquerque lacks about 20,000 housing units to meet the demand.

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 2,740 broken down in 3 categories:

• Emergency Shelters: 1,289
• Transitional Housing: 220
• Unsheltered: 1,231

Meanwhile, Mayor Tim Keller’s office estimates that there are upwards 5,000 people who are uhoused 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:

https://www.abqjournal.com/news/article_84d10e4c-b9a9-4c5c-8929-39740d6c09d7.html#tncms-source=home-featured-7-block

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 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

Simply put, the term “affordable housing” is about as misleading as it gets. 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 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, Countu 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 owners 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.

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:

1. 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,

2. 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.

3. 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.cabq.gov/council/find-your-councilor/district-2/news/albuquerque-city-council-appropriates-over-7-5-million-for-affordable-housing-projects-in-downtown-and-barelas

https://www.abqjournal.com/business/redevelopment-of-wells-fargo-building-inches-forward-with-sale-finalized/2950837

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.krqe.com/news/albuquerque-metro/over-7-5-million-appropriated-to-affordable-housing-projects-in-downtown-albuquerque-barelas/

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:

https://www.abqjournal.com/business/article_260971e7-5496-4884-aa59-083ff29936f3.html#tncms-source=home-featured-7-block

$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:

https://www.cabq.gov/health-housing-homelessness/news/city-boosts-calle-cuarta-with-final-funding-for-sustainability-and-community-enhancements

https://www.krqe.com/news/politics-government/albuquerque-city-councilors-approve-nearly-2m-for-affordable-housing-development/

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:

https://www.abqjournal.com/business/downtown-affordable-housing-project-to-move-forward-with-new-developer-and-name/2954713

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.msn.com/en-us/money/realestate/city-of-albuquerque-finalizes-agreement-to-convert-tower-at-san-mateo-and-central-to-housing/ar-AA1RRq29

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:

1. 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.
2. 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.
3. 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.”
4. 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.
5. 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://sourcenm.com/2025/08/26/albuquerque-area-leaders-tout-arrival-of-more-than-80-million-for-housing-and-homelessness/

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:

https://568ac5c8-a616-4ffa-987e-7f77d5d1e6aa.filesusr.com/ugd/ad7ad8_0b3a57c7ce914d7f9bc94b6ea37be15c.pdf

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:

https://www.abqjournal.com/news/article_84d10e4c-b9a9-4c5c-8929-39740d6c09d7.html#tncms-source=home-featured-7-block

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.