Executive Summary:

New Mexico is currently facing a severe affordable housing crisis, characterized by a shortage of up to 90,000 housing units, rapidly rising home prices and rents, and an increasing number of homeless individuals. This plan outlines a comprehensive strategy to address these challenges, starting in 2027. The goal is to create or preserve 25,000 affordable housing units by 2032, reduce housing cost burdens for low-income households by 20%, and decrease homelessness by 30%.

To achieve these objectives, the plan will utilize current assessments, best practices from other states, and available funding sources. It emphasizes increasing the housing supply through regulatory reforms, preserving existing housing stock, expanding rental assistance, and leveraging public-private partnerships.

Implementation will involve collaboration among various state agencies, including the New Mexico Mortgage Finance Authority (MFA), local governments, non-profit organizations, and developers. The estimated annual budget for this initiative is between $250 million and $300 million, sourced from federal, state, and private funds. Success will be measured through annual progress reports and key performance indicators.

Current Situation Analysis:

As of 2025, New Mexico's population stands at approximately 2.1 million across 825,000 households, with slow growth of 1.1% over the past five years.

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However, housing affordability has deteriorated significantly:

• Home prices increased 59.4% from 2019 to 2023, making ownership inaccessible for many.

• Median rents rose 60% from 2017 to 2024, far outpacing national trends.

• There are only 41 affordable and available rental homes for every 100 extremely low-income (ELI) households (those at or below 30% of the area median income, or AMI).

• Overall, the state has 57 affordable units per 100 low-income renters, resulting in a shortage of about 28,000 units for this group alone, with broader estimates reaching 90,000 units.

• Over 43% of renters are cost-burdened (spending more than 30% of income on housing), and homelessness surged 87% from 2017 to 2024.

• Vulnerable populations, including ELI renters (76.6% unable to afford the median rent) and rural communities, are hit hardest.

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​Projections indicate flat population growth through 2030, dependent on migration patterns, but housing needs will intensify due to aging infrastructure and economic pressures. Without intervention, the shortage could worsen, exacerbating social issues like displacement and economic inequality.

Existing programs provide a foundation:

• The MFA administers key initiatives like down payment assistance, rental development loans, and the New Mexico Housing Trust Fund.

• Local efforts include Albuquerque's Section 8 Housing Choice Voucher (HCV) program and Santa Fe's Affordable Housing Trust Fund.

• Recent state investments, such as $120 million allocated in 2025 for housing and homelessness, demonstrate commitment but fall short of needs.

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Goals and Objectives:

My plan sets ambitious yet achievable targets aligned with projected needs:

1. Increase Affordable Housing Supply: Develop or rehabilitate 25,000 units by 2032, prioritizing ELI households (target: 10,000 units) and rural areas.

2. Preserve Existing Stock: Extend affordability for 15,000 units at risk of market-rate conversion.

3. Enhance Accessibility: Reduce cost-burdened renters from 43% to 35% and homelessness by 30% through expanded assistance.

4. Promote Equity: Ensure 40% of new units serve underserved groups, including Indigenous communities, veterans, and seniors

5. Sustainability: Incorporate energy-efficient designs in 70% of projects to lower long-term costs.​​​​​​​​​​​​​​​​​​​

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These goals build on a market-based assessment of population and job growth, as recommended in ongoing housing agendas.

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Strategies and Actions:

Drawing from successful U.S. strategies—such as legalizing accessory dwelling units (ADUs), reducing parking requirements, and land use reforms—this plan employs a multi-pronged approach.

Strategies are categorized below:​​​​

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1. Regulatory Reforms to Boost Supply:

Key Actions:

• Enact statewide legislation to legalize ADUs, multifamily housing in single-family zones, and office-to-residential conversions.

• Reduce or eliminate parking mandates and streamline permitting processes to cut development costs by 15-20%.

• Implement inclusionary zoning requiring 10-15% affordable units in new developments, with density bonuses as incentives.

Responsible Entities:

• State Legislature

• MFA

• Local Governments

Expected Impact:

• Add 10,000 new units; address restrictive regulations fueling shortages.

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2. Preservation and Rehabilitation:

​Key Actions:

• Expand the New Mexico Preservation Loan Fund with low-interest loans for at-risk multifamily properties.

• Offer grants for roof repairs, energy upgrades, and hazard removal in low-income homes.

• Discourage early exits from Low-Income Housing Tax Credit (LIHTC) programs through extended affordability requirements.

Responsible Entities:

• ​MFA

• Ventana Fund

• USDA Rural Development

Expected Impact:

• ​Preserve 15,000 units; prevent loss of affordable stock.

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​3. Rental and Homeownership Assistance:

Key Actions:

• ​Scale up Section 8 HCV vouchers and state rental assistance to cover 5,000 more households annually.

• Provide down payment assistance and foreclosure prevention for moderate-income buyers (up to 80% AMI).

• Partner with non-profits for tenant protections against displacement.

Responsible Entities:

• MFA

• Local Housing Authorities

• Non-Profits

Expected Impact:

• Reduce cost burdens; support 20,000 households.

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4. Targeted Programs for Vulnerable Populations:

Key Actions:

• Allocate funds for supportive housing for homeless individuals, including $20 million annually for projects aiding families.

• Develop modular and micro-apartment solutions in urban areas.

• Focus on rural and tribal lands with infrastructure financing.

Responsible Entities:

• State Homeless Coalition

• Tribal Governments

Expected Impact:

• Cut homelessness by 30%; serve 10,000 vulnerable residents.

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5. Innovation and Partnerships:

Key Actions:

• Pilot creative solutions like community land trusts and public-private financing.

• Collaborate with developers via tax incentives and expedited reviews.

Responsible Entities:

• ​MFA

• Private Sector

• Universities

​Expected Impact:

• Foster 5,000 units through innovative models.

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​Timeline:

My plan unfolds in phases, starting in 2027:

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Funding Sources:

Annual funding of $250-300 million will be drawn from:

• State Sources: New Mexico Housing Trust Fund ($50M), Opportunity Enterprise Revolving Fund ($30M), and legislative appropriations.

• Federal Sources: LIHTC, CDBG, HOME, ESG ($150M combined).

• Private and Other: Bonds ($50M), CDFIs like Ventana Fund ($20M), and grants/loans from USDA ($10M). Diversification ensures resilience, with potential for bond issuances as in 2025's $525M private activity bonds.

 

​Stakeholders and Implementation:

• Lead Agency: MFA, coordinating with the Governor's Office.

• Partners: Local governments (e.g., Albuquerque, Santa Fe), non-profits (e.g., New Mexico Coalition to End Homelessness), developers, and federal agencies.

• Community Engagement: Annual town halls and advisory councils to incorporate resident feedback.

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Monitoring and Evaluation:

Progress will be tracked via MFA's annual Housing Needs Assessment, with KPIs including units built, cost-burden reductions, and demographic equity. Independent audits every two years will ensure accountability, with adjustments based on data. This adaptive approach mirrors best practices for incremental success.

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(Last Edited & Published Oct. 2025)

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