CITY OF SANTA FE
AFFORDABLE
HOUSING PLAN
Prepared for:
New Mexico Mortgage Finance Authority
344 4
th
Street SW
Albuquerque, NM 87102
Prepared by:
The City of Santa Fe
Office of Affordable Housing
PO Box 909
Santa Fe, NM 87504-0909
BBC Research &Consulting
1999 Broadway, Suite 2200
Denver, CO 80202-9750
FINAL DRAFT-REVISED December 2016
TABLE OF CONTENTS
I. Executive Summary i
II. Introduction 1
New Mexico Affordable Housing Act 1
Purpose of the Plan 1
Methodology 1
III. Community Profile 2
Top Trends 2011 to 2014 2
Demographic Profile 3
Housing Stock and Characteristics 9
Affordable Housing Inventory 13
IV. Land Use and Policy Review 19
Introduction ................................................................................................................... 19
Land Use Code ................................................................................................................... 20
Other Best Practices .............................................................................................................. 25
Historic Preservation ............................................................................................................. 27
Development Fees and Review Process ................................................................................ 29
Santa Fe General Plan ............................................................................................................ 30
Housing and Transportation Affordability ............................................................................. 31
Affordable Housing Policies ................................................................................................... 33
Conclusion: Barriers to Affordable Development ................................................................. 34
V. Housing Development Feasibility Analysis ................................................................. 35
Single Family Housing Development...................................................................................... 35
Multi-Family Housing Development ..................................................................................... 36
Analysis of Current Zoning to Support Affordable Housing ................................................... 38
Sites Analysis ......................................................................................................................... 39
VI. Housing Needs Analysis .......................................................................................... 42
Update from 2013 Needs Analysis 42
Gaps Analysis 48
Existing and Projected Housing Needs
51
VII. Goals and Recommendations .................................................................................. 54
Appendices
Appendix A: Funding Sources for Affordable Housing
Appendix B: SFCC Chapter XXVI (City of Santa Fe Code)
Appendix C: 2013 Housing Needs Assessment
LIST OF FIGURES
Figure 1. Population and Households, City of Santa Fe, 2000 to 2014
Figure 2. Race and Ethnicity, City of Santa Fe, 2000 through 2014
Figure 3. Age Distribution, City of Santa Fe, 2000, 2007, 2010 and 2014
Figure 4. Change in Population by Age, 2000 to 2010 and 2010 to 2014
Figure 5. Reason for Moving Out of the City of Santa Fe
Figure 6. Household by Tenure, City of Santa Fe, 2000, 2007, 2010 and 2014
Figure 7. Median Household Income by Tenure, City of Santa Fe 1999, 2006, 2010 and 2014
Figure 8. Poverty by Age, City of Santa Fe, Santa Fe County and New Mexico, 2014
Figure 9. Employment, Santa Fe MSA 2001 to 2013
Figure 10. Employment by Industry, Santa Fe MSA, Q3 2011 and Q4 2013
Figure 11. Household Trends, City of Santa Fe, 2000 to 2014
Figure 12. Inventory of Subsidized Rental Units
Figure 13. City of Santa Fe Zoning Districts
Figure 14. Permitted Uses by District, City of Santa Fe
Figure 15. Dimensional Standards for Residential Districts
Figure 16. City of Santa Fe Historic Districts
Figure 17.
Housing and Transportation Costs as a % of Income
Figure 18.
AMI and Affordability in Santa Fe County – 2016
Figure 19. Single Family Development Feasibility Analysis
Figure 20. Multi-Family Development Feasibility Analysis
Figure 21. Analysis of City Zoning Districts
Figure 22.
SUMMARY Sites Analysis
Figure 23.
Median Home Value, City of Santa Fe, 2000 to 2014
Figure 24 Median Sale Price of Single Family Homes, City of Santa Fe, by Quarter, 2000 - Q2 2015
Figure 25. Median Sale Price of Condominiums, City of Santa Fe, 2000 through Q2 2015
Figure 26. Residential Affordability, City of Santa Fe, 2000 to 2014
Figure 27. Median Contract Rent, City of Santa Fe, 2000 through 2014
Figure 28. Average Rent by Unit Type, City of Santa Fe, 2004 through 2014
Figure 29. AMI Distribution of Rents, City of Santa Fe, 2011 and 2014
Figure 30. Vacancy Rates, City of Santa Fe, 2005 through 2014
Figure 31. Vacancy Rates by Unit Type, City of Santa Fe, 2005 through 2014
Figure 32. Rental Market Mismatch, City of Santa Fe, 2014
Figure 33. Renters’ Ability to Buy, City of Santa Fe, 1999/2000–2014
Figure 34. Ownership Gaps for Renters Who May Wish to Buy, City of Santa Fe, 2014
Figure 35. Poverty, Housing Problems and Special Needs Populations, City of Santa Fe, 2014
Figure 36. Existing and Projected Housing Needs, City of Santa Fe, 2014
Figure 37. Spectrum of Housing Need
Figure 38. City of Santa Fe Housing Production Plan – Five Year Production Goals
Figure 39. Affordable Housing Goals and Outcomes (Consolidated Plan)
Figure 40. Recommendations for Funding to Support Housing
Figure 41. Recommendations for Increasing Capacity to Provide Housing
Figure 42. Recommendations for Program Development
Figure 43. Recommendations for Real Estate Development
Figure 44. Recommendations for Regulatory Environment
I. Executive Summary
The purpose of the City of Santa Fe Affordable Housing Plan is to assess housing need in Santa Fe
and to provide recommendations for addressing the needs. This study is required by the New
Mexico Mortgage Finance Authority and must be in compliance with the New Mexico Affordable
Housing Act, the enabling legislation that exempts affordable housing from the Anti Donation
clause of the New Mexico State Constitution. Under the Act’s rules, it identifies specific
requirements to ensure that governmental entities donate resources to qualifying grantees
under terms that ensure long-term affordability.
This plan provides a community profile, establishes housing needs and identifies gaps in existing
inventory and services, and provides objectives for future programming, funding and capacity
building in order to achieve housing goals. It is required as a condition to receiving financial
assistance and to qualify the city for other housing benefits, including consideration for Low
Income Housing Tax Credits. Lastly, this plan serves to inform other housing studies as required
by HUD, including the Analysis of Impediments to Fair Housing and its successor, the
Assessment of Fair Housing, The analysis is organized by the categories described below with a
summary of the findings and recommendations.
Community Profile
This section describes demographic trends in the City of Santa Fe, with an emphasis on how the
city has changed since the 2013 Housing Needs Assessment (2013 HNA).
Most of Santa Fe’s population growth between 2011 and 2014 can be attributed to the
annexation of approximately 13,000 residents. Population growth excluding the annexation
was about 0.8 percent per year.
Santa Fe’s senior population increased from 18 percent of the total population in 2010 to 20
percent in 2014, primarily due to Baby Boomers aging into the 65 and over cohort from the
45 to 64 cohort.
Median household income increased by 12 percent between 2010 and 2014—from $44,090
to $49,380. Renters experienced a 24 percent income increase (from $28,240 to $34,945)
and owners experienced a 7 percent increase (from $58,467 to $62,727).
The increase in renter incomes is a departure from previous trends and a phenomenon
seen in other desirable cities. (Median renter incomes increased in the state and nation
overall, but not at the same rate as in Santa Fe—8% in New Mexico and 12% in the U.S.). It
is unclear if this is a result of rising wages for renters or an in-migration of higher income
renters and displacement of lower income renters. As shown in Figure 18, the income
distribution of renters has shifted dramatically since 2011: proportionately fewer renters
earn between 30 and 50 percent of the Area Median Income (AMI) and more earn more
than 100 percent of the AMI.
The median home value declined by 8.5 percent between 2011 and 2014, increasing
ownership affordability for city residents. In 2014, one-quarter of renters could afford the
median value home, up from 14 percent in 2011.
Overall affordability has improved for Santa Fe residents since 2011, due to increasing
incomes and stable home prices. However, the rental gaps analysis reveals a persistent
CITY OF SANTA FE HOUSING PLAN EXECUTIVE SUMMARY, PAGE I
shortage 2,435 rental units priced below $625 per month. This compares to 3,074 in 2011.
The smaller gap in 2014 is primarily due to increasing renter incomes.
Rental affordability is a particular challenge for the 47 percent of renters earning less than
50 percent of AMI due to mismatch of supply and demand of units priced in that
affordability range (28% of units compared to 47% of renters).
Land Use and Policy Review
Though this review did not reveal any severe barriers to affordable development in the land use
code, General Plan or housing policies, the analysis did reveal several things the City of Santa Fe
could improve to help foster affordable development:
Increase the current low density limits for multifamily residential construction in high
density residential zones. If that is not possible, provide height bonus as an affordable
development incentive;
Add an intent to comply with state and federal fair housing laws and regulations in the
general code purpose statement or in the residential district purpose statement;
Provide exemptions for affordable housing to nonconforming structure requirements; and
Provide assistance to homeowners living in historic district with necessary repairs either
through existing homeowner programs or through a new program designed specifically for
such a purpose.
Housing Development Feasibility Analysis
Analysis of housing development and affordability is predicated by the payment capacity of
potential low- and moderate-income buyers or renters. Affordability as a function of area
median income is the starting point for analysis of housing development scenarios. By
comparing development costs across varying densities with pricing and the ability of
homebuyers and renters to cover their housing payment only using 30% or less of their
income, two development scenarios were provided:
Single Family Housing Development. The conclusion is that without any subsidy to bring
down costs, only homebuyers at 100%AMI can afford to buy a home when densities are at
least 8 DU/acre
. Homebuyer subsidy is needed at all income levels and in every development
scenario for those homebuyers at 80% AMI and below. Only the homebuyers at 100% AMI
and above can afford the sales price of homes in the medium and higher density subdivisions.
No buyers can afford homes in 1DU/acre zoning.
Multi-Family Housing Development. The conclusion is that only those renters at
80%AMI and above can reliably afford market rents. At medium densities, if rents are based
on carrying cost, then renters at 60%AMI and above can afford rents. Even with substantial
cost reductions, renters at 30%AMI can’t afford rents in any scenario. While higher densities
reduce per unit carrying cost which could be translated into lower rents, it is highly unlikely in
a rental market with 3% vacancy that a property owner wouldn’t charge the highest rent that
the market will bear.
Analysis of Current Zoning to Support Affordable Housing Development. When the
City’s current zoning map is analyzed, the amount of land that is zoned at densities to support
CITY OF SANTA FE HOUSING PLAN EXECUTIVE SUMMARY, PAGE II
affordable housing is simply not adequate. In the City of Santa Fe, approximately 27,450 acres
are residentially zoned, both undeveloped and developed. Of this total, 78% is zoned at densities
of 5 DU/acre and below. As illustrated in the analysis, this zoning density cannot support
affordable housing without substantial subsidy or reduction in market rate costs. Sixteen
percent (16%) of residential zoning can support affordable homeownership, while only 5% of
residential zoning can support affordable multi-family zoning. An additional 1% has the
potential to support affordable housing, however, affordability is only likely in the Mobile Home
Park zoning.
Housing Needs Analysis
The analysis in this section examines housing need across all income levels to identify
mismatches in supply and demand for all households in Santa Fe. It reports the results of a
modeling effort called a gaps analysis, which compares the demand for and supply of housing
by income level. Instead of estimating the type of housing each household in the city would
prefer, income is used as a proxy, as income is the most important factor in accessing housing.
The gaps analysis shows the following:
The greatest need in Santa Fe’s market is for rental units priced between $375 and $500 per
month, serving renters earning between $15,000 and $20,000 per year. In this income
range, there is a current shortage of 800 rental units, up from 715 in 2011.
The rental gap for households earning $20,000 to $25,000 also increased between 2011
and 2014—from 169 to 444. However, the cumulative rental gap, for all households earning
less than $25,000 declined from 3,074 in 2011 to 2,435 in 2014.
The gaps model estimates that as many as 2,435 renters earning $25,000 and less cannot
find affordable units and, as such, are cost burdened. Most of these renters earn less than
$20,000.
The median home value declined by 8.5 percent between 2011 and 2014, increasing
ownership affordability for some city residents. In 2014 nearly one-quarter of renters could
afford the median value home, up from 14 percent in 2011. This increase in
homeownership affordability is also a result of renters’ incomes increasing since 2011.
Over 400 homes are in substandard condition (incomplete kitchen/plumbing facilities) and
are in probable need of rehabilitation.
Goals and Recommendations
The needs identified above are likely to be met by a combination of efforts by non-profits,
market offerings and public investments by the City of Santa Fe. The city’s current goals to
address affordable housing needs identified in the city's most recent Consolidated Plan and in
the 2015-2016 CAPER aim to support over 200 households per year: 124 (long term rental
assistance); 57 (short term rental assistance), 31 (downpayment assistance loans) and 14 (home
improvement grants/loans). If these goals are applied to the needs identified above, over the
next five years the City of Santa Fe would be able to assist 875 low income renters. The city
would also support increased homeownership opportunities with downpayment assistance
loans for 150 current renters and would assist over 40 current homeowners with necessary
repairs through home improvement loans.
CITY OF SANTA FE HOUSING PLAN EXECUTIVE SUMMARY, PAGE III
Recommendations. The following recommendations are thus organized to meet the housing
needs discussed above and correlated with the goals identified in the City’s Consolidated Plan.
The analysis of demographic, economic and housing data provides a basis for determining need
by income level and housing type. Five organizing principles are considered:
• Funding to Support Housing
• Capacity to Provide Housing
• Program Development
• Real Estate Development
• Regulatory Environment
Funding to Support Housing Services. The biggest challenge for the City of Santa Fe over
the next five years will be to continue to address the increasing demands of housing needs with
limited financial resources. Therefore, the funding policy recommendation that spans all housing
needs is for the City to establish a permanent funding mechanism to support affordable housing
that is not dependent on local budgeting processes or federal programs. Recommendations are
as follows:
• Continue support for street outreach and other linkage services for youth, veterans,
those with disabilities, and families experiencing homelessness.
• Continue funding for human services, and children and youth programs that focus on
expanding educational, life skills, and job training opportunities.
• Identify and dedicate a funding stream to support a short-term, rental assistance
program based on Rapid Rehousing to stabilize those in precarious housing situations.
• Continue supporting the use of federal funds for tenant-based and project-based rental
assistance.
• Identify a funding stream to support a landlord/tenant counseling service that is free of
charge, bi-lingual, and locally accessible.
• Continue to provide financial support for foreclosure prevention programs.
• Continue allocating city-controlled resources for downpayment assistance, energy
efficiency improvements, and home repair.
• Continue supporting administrative contracts with housing providers for
homebuyer/owner support services.
Capacity to Provide Housing. The City’s philosophy is to help build the capacity of
community-based service providers, rather than to increase the size of its bureaucracy. One
recommendation that spans all housing needs relative to building capacity is for the City to
convene a time-limited task force to drive implementation of this housing plan once it’s adopted.
Through this process, the task force would identify other solutions to address gaps in the current
affordable housing landscape, particularly the lack of affordable rental housing production, with
the end goal of providing strategic and actionable policy and program initiatives.
• Continue support for the work of nonprofit service providers on an administrative level
so that they can use City funds to leverage private and other governmental funds.
• Support efforts of the New Mexico Coalition to End Homelessness through participation
in a coordinated services network and linking homeless to appropriate services.
• Participate in coordinated efforts such as the proposed One-Door Homeless campus
and/or the Supportive Housing Toolkit.
CITY OF SANTA FE HOUSING PLAN EXECUTIVE SUMMARY, PAGE IV
• Coordinate the provision of services, including the development of a shared resource
database that provides referral information for those seeking services as well as listing
information for homes that are for rent or sale.
Program Development. The City supports highly effective homebuyer/owner services,
delivered through its nonprofit partners. However, the needs of very low income renters,
especially those who are housed, if precariously, are not well-addressed.
• Support a coordinated services delivery system to ensure that homeless who seek
shelter or housing have access to support services.
• Re-instate tenant-based rental assistance that is short-term without restrictions to keep
housed those renters who are in danger of becoming homeless and/or are in arrears
with rent and utility payments or need deposit funds to secure immediate housing.
• Re-fund landlord/tenant counseling services that are bilingual and free to Santa Fe
residents.
• Work with private landowners to create scattered-site rental program using ADUs and
guesthouses.
• Identify all existing affordable rentals and develop a preservation plan as needed.
• Design an energy efficiency program to retrofit rental properties owned by low-income
landlords and/or large-scale privately-owned rental properties where energy savings
are passed on to the low-income renter to reduce utility payments.
• Continue to support emergency repair grant programs targeted toward very-low income
homeowners (less than 50%AMI), including possible use of subsidy to pay for short-
term insurance to cover the construction process.
• Continue to support rehabilitation loan programs targeted toward low to moderate
income homeowners (50%-80% AMI), which includes home renovations and energy
conservation measures including the purchase of new appliances, retrofits, and solar
water heaters.
• Design and implement a home repair program specific to income-qualified homeowners
living in Santa Fe’s historic districts which may include subsidy or an exemption to offset
the cost of historic retrofits.
Real Estate Development. Future production of new units will need to reflect the needs of
emerging populations, specifically older, smaller households; the elderly; the self-employed;
and special needs groups such as veterans. While realtors and lenders report that activity is
rebounding in the real estate market which indicates positive benefit for the economy as a
whole, many cite high land costs and regulatory constraints as reasons not to build in Santa Fe.
• Leverage City-owned resources to support facilities such as the proposed One Door
Homeless Campus.
• Work with for-profit and non-profit organizations to develop at least one new multi-
family, mixed income rental property.
• Support the SFCHA’s RAD conversion project to renovate 121 public housing units and
build 30 new units. Support the project through fee waivers if they receive the second
round of funding for the conversion of 237 public units for seniors.
• Incentivize construction of affordably-priced rental units through donations of city-
owned land, fee waivers, regulatory exemptions and other municipal resources.
• Require LIHTC projects that receive City donations to set aside a percentage of units for
households earning less than 50% of the AMI.
• Complete the Paseo del Sol Road extension in Tierra Contenta to open up Phase 3 of the
Master Plan for development.
CITY OF SANTA FE HOUSING PLAN EXECUTIVE SUMMARY, PAGE V
Regulatory Environment. Santa Fe’s regulatory environment is characterized by its long
history of implementing an inclusionary zoning program which has resulted in the construction
of nearly 1,000 affordable homes. However, other aspects of the land use development code and
the Santa Fe Homes Program regulation have unintended consequences and may actually be
hindering housing production. One regulatory recommendation that is relevant to all housing
needs is to add the intent to comply with state and federal fair housing laws and regulations in
the general code purpose statement or in the residential district purpose statement of the City’s
Land Use Code. Another is to exempt affordable housing from nonconforming structure
requirements. And finally, the City needs to bring its code into compliance with the revised Rules
of the NM Affordable Housing Act, specifically Chapter 26-2.
• Exempt emergency shelters from nonconforming structure requirements.
• Modify the Santa Fe Homes Program (SFHP) so that the rental requirement is financially
viable from the prospective of a multi-family development proforma.
• Convert existing and support the development of new ADUs into affordable rental stock
through the modification of Chapter 14 restrictions (eg. allow greater diversity of
placement on the site -on top of garages or other outbuildings-and eliminate
architectural consistency standards if under a certain size, allow existing ADUs to be
nonconforming uses).
• Increase low-density limits for multi-family residential construction.
• Raise the square footage threshold that triggers a development plan requirement on
residential projects from 10,000 square feet to over 30,000 square feet when the
proposed project meets redevelopment and mixed use goals.
• Revise density bonus incentives so that it is tiered to award deeper levels of affordability
or higher percentages of affordability in homeownership and rental projects subject to
the Santa Fe Homes Program.
CITY OF SANTA FE HOUSING PLAN EXECUTIVE SUMMARY, PAGE VI
II. Introduction
The New Mexico Affordable Housing Act
The New Mexico Affordable Housing Act is enabling legislation that exempts affordable housing
from the Anti Donation clause of the New Mexico State Constitution. Under the Act,
municipalities or counties wishing to donate, provide incentives or pay all or a portion of the
costs of affordable housing (including land, acquisition, renovation, financing, or infrastructure)
must have in place an affordable housing plan or a housing component in their general plan in
addition to an affordable housing ordinance.
The Affordable Housing Act Rules identify specific requirements to ensure that governmental
entities donate resources to qualifying grantees under terms that ensure long-term affordability.
This plan is submitted the NM Mortgage Finance Authority to ensure compliance with the NM
Affordable Housing Act. As per the Rules, the required housing plan elements provide a
community profile, establish housing needs and gaps in existing inventory and services, and
provide objectives for future programming, funding and capacity building in order to achieve
housing goals.
Definition of Affordable Housing
For purposes of this document, affordable housing is defined as a dwelling unit whose monthly
cost does not exceed 30% of a family’s gross monthly income. This applies to all households
earning up to 120% of the Area Median Income (AMI).
Purpose of Plan
The purpose of the City of Santa Fe’s Affordable Housing Plan is to assess housing need in Santa
Fe and to provide recommendations for addressing the needs. As approved by the New Mexico
Mortgage Finance Authority, this plan is in full compliance with the New Mexico Affordable
Housing Act. This enables the City of Santa Fe to revise its ordinance and mobilize public
resources to support the provision of affordable housing and related services, new construction
and the rehabilitation of existing homes.
This plan is organized to identify needs based on the entire housing spectrum. It evaluates
existing housing gaps for the current population and projects needs for the future. Most
importantly, it proposes strategies and recommendations for meeting housing needs and
identifies opportunities for increasing and improving the City’s housing stock to serve a variety
of housing situations.
The information in this plan will help the City of Santa Fe to:
• Establish baseline information for current and future housing needs and evaluate
progress in meeting goals.
• Develop and implement strategies to ensure that Santa Fe offers its residents a full range
of housing choices and opportunities.
• Implement specific affordable housing projects and obtain financing from federal, state,
and private lending institutions.
• Recommend roles and responsibilities for implementation.
CITY OF SANTA FE HOUSING PLAN INTRODUCTION, PAGE 1
III. Community Profile
This section provides an update to select data tables from the 2013 Housing Needs Assessment
Update (HNA).
For the sake of convenience the figure notes in this document reference the
comparable 2013 HNA figures.
The City of Santa Fe annexed territory that included
approximately 13,000 new residents effective January 1, 2014. However, that annexation does
not appear to be represented in 2014 ACS data. Unless otherwise noted, the figures relying on
ACS data exclude the recent annexation.
Top Trends 2011 to 2014
The primary findings from the data update include:
Most of Santa Fe’s population growth between 2011 and 2014 can be attributed to the
annexation of approximately 13,000 residents. Population growth excluding the annexation
was about 0.8 percent per year.
Santa Fe’s senior population increased from 18 percent of the total population in 2010 to 20
percent in 2014, primarily due to Baby Boomers aging into the 65 and over cohort from the
45 to 64 cohort.
Median household income increased by 12 percent between 2010 and 2014—from $44,090
to $49,380. Renters experienced a 24 percent income increase (from $28,240 to $34,945)
and owners experienced a 7 percent increase (from $58,467 to $62,727).
The increase in renter incomes is a departure from previous trends and a phenomenon
seen in other desirable cities. (Median renter incomes increased in the state and nation
overall, but not at the same rate as in Santa Fe—8% in New Mexico and 12% in the U.S.). It
is unclear if this is a result of rising wages for renters or an in-migration of higher income
renters and displacement of lower income renters. As shown in Figure 18, the income
distribution of renters has shifted dramatically since 2011: proportionately fewer renters
earn between 30 and 50 percent of the Area Median Income (AMI) and more earn more
than 100 percent of the AMI.
The median home value declined by 8.5 percent between 2011 and 2014, increasing
ownership affordability for city residents. In 2014, one-quarter of renters could afford the
median value home, up from 14 percent in 2011.
Overall affordability has improved for Santa Fe residents since 2011, due to increasing
incomes and stable home prices. However, the rental gaps analysis reveals a persistent
shortage 2,435 rental units priced below $625 per month. This compares to 3,074 in 2011.
The smaller gap in 2014 is primarily due to increasing renter incomes.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 2
Rental affordability is a particular challenge for the 47 percent of renters earning less than
50 percent of AMI due to mismatch of supply and demand of units priced in that
affordability range (28% of units compared to 47% of renters).
Demographic Profile: Updates from Section I of the 2013 HNA
This section describes demographic trends in the City of Santa Fe, with an emphasis on how the
city has changed since the 2013 Housing Needs Assessment (2013 HNA).
City population and trends. The population of Santa Fe increased by 14,166 residents
between 2011 and 2014. However, the vast majority of that growth can be attributed to the
annexation of approximately 12,500 residents. Population growth excluding the annexation was
1,657 residents, or about 0.8 percent per year between 2011 and 2014.
Figure 1.
Population and Households, City of Santa Fe, 2000 to 2014
Note: Year 2000 and 2010 population and household estimates are from the US Census, 2005 and 2007 population and household estimates are
from the 2005 and 2007 Santa Fe Trends Reports. The 2014 estimate that excludes annexation is from the 2014 ACS; the 2014 estimate
including annexation is from the 2014 Santa Fe Trends Report. The annexation was effective January 1, 2014. State data are from the 2000
and 2010 Census and the 2007, 2011 and 2014 ACS.
This is an update to Figure I-2 in the 2013 HNA.
Source: 2000 Census, 2010 Census, 2005 ACS, 2007 ACS, 2011 ACS, 2013 HNA, 2014 ACS and 2014 Santa Fe Trends report.
Excluding the annexed population, Santa Fe’s share of the county population remained relatively
stable over the last 15 years (47 percent in 2014 and 2010 and 48 percent in 2000) after falling
from 56 percent in 1990. However, with the addition of the 12,500 new residents through
annexation, the city’s share of the total county population is now back up to 56 percent.
Population growth between 2010 and 2014 (3.4% excluding the annex; 21.9% including the
annex) in the city exceeded the rate of growth both in the county (2.8%) and the state (1.3%)
overall.
Year
City of Santa Fe
2000 62,203 27,569
2005 65,800 1.1% 29,788 1.6%
2007 68,359 1.9% 30,490 1.2%
2010 67,947 -0.2% 31,895 1.5%
2011 68,634 1.0% 30,493 -4.4%
2014 excluding annexation
70,291 0.8% 31,001 0.6%
2014 includng annexation
82,800 6.5% 36,518 6.2%
State of New Mexico
2000 1,819,046 677,971
2005 1,887,200 0.7% 727,820 1.4%
2007 1,969,915 2.2% 734,847 0.5%
2010 2,059,179 1.5% 791,395 2.5%
2011 2,037,136 -1.1% 767,285 -3.0%
2014 2,080,085 0.7% 760,916 -0.3%
Compound
Annual
Growth Rate
Compound
Annual
Growth Rate
Population
Households
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 3
Race and ethnicity. The racial and ethnic distribution of Santa Fe residents has not changed
substantially since 2011. According to 2014 data, nearly half of Santa Fe residents are of
Hispanic descent. Forty-five percent are non-Hispanic white, 3 percent are Native American, 2
percent are Asian and 1 percent are African American.
Compared to the state overall, the City of Santa Fe has a higher proportion of residents who are
non-Hispanic white and a lower proportion of residents identifying as a racial or ethnic minority.
Figure 2.
Race and Ethnicity, City of Santa Fe, 2000 through 2014
Note: This figure did not appear in the 2013 HNA.
Source: 2000 Census, 2007 ACS, 2011 ACS and 2014 ACS.
Age distribution. Figure 3 compares the age distribution of the city's population in 2014 to
2000, 2007 and 2010. Santa Fe’s senior population increased from 18 percent of the total
population in 2010 to 20 percent in 2014, primarily due to Baby Boomers aging into the 65 and
over cohort from the 45 to 64 cohort. The increase in seniors was offset by a drop in the
proportion of Baby Boomers. The proportion of all age cohorts under the age of 45 remained
steady between 2010 and 2014.
Figure 3.
Age Distribution,
City of Santa Fe,
2000, 2007, 2010 and
2014
Note:
This is an update to Figure I
-7 in
the 2013 HNA.
Source:
2013 HNA and 2014 ACS.
Figure 4 presents the change in residents by age group between 2000 and 2010 and between 2010
and 2014. The most notable changes between 2010 and 2014 are a substantial increase in
2000 2007 2011 2014 2014
Total Population 61,805 63,977 68,634 70,291 2,085,572
Race
White 77% 73% 84% 84% 73%
Black or African American 1% 1% 1% 1% 2%
American Indian and Alaska Native 2% 2% 1% 3% 10%
Asian 1% 2% 3% 2% 2%
Native Hawaiian and Other Pacific Islander 0% 0% 0% 0% 0%
Some other race
15% 19% 7% 9% 11%
Two or more races
5% 2% 3% 3% 3%
Ethnicity
Hispanic 48% 47% 47% 49% 48%
Non-Hispanic 52% 53% 53% 51% 52%
Non-Hispanic white
48% 47% 45% 45% 39%
City of Santa Fe
New Mexico
2000
2007 2010 2014 2014
Infants and toddlers (under 5) 5% 5% 6% 5% 6%
School aged children (5 to 17) 15% 13% 13% 13% 17%
College aged adults (18 to 24) 9% 9% 8% 8% 10%
Young adults (25 to 44) 29% 27% 25% 25% 25%
Baby boomers (45 to 64) 28% 30% 31% 29% 26%
Seniors (65 and older) 14% 17% 18% 20% 15%
Total 100% 100% 100% 100% 100%
City of Santa Fe
New Mexico
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 4
residents aged 65 to 74 which indicates that Santa Fe continues to be a desirable location for
retirees. Declines were evident for residents aged 25 to 44 and slight declines noted for children
between 5 and 17 years old.
Figure 4.
Change in Population by Age, 2000 to 2010 and 2010 to 2014
Note: This is an update to Figure ES-3 and Figure I-8 in the 2013 HNA.
Source: 2013 HNA and 2014 ACS.
As part of the 2013 HNA, BBC surveyed Santa Fe residents and in-commuters. Of the survey
respondents, 22 percent once lived within city limits. Most moved out more than 5 years ago and
moved because housing was too expensive, as shown in Figure 5.
Figure 5.
Reason for Moving Out of
the City of Santa Fe
Note:
n=32. There were too few respondents to
allow for reliable comparison between
owners and renters.
This is an update to Figure
ES-4 and Figure
II
I-13 in the 2013 HNA.
Source:
BBC Research & Consulting 2012
Resident Survey.
Tenure. The city’s homeownership rate rose slightly between 2000 (58%) and 2010 (61%) but
dropped back to 59 percent by 2014. According to survey results, the 2007 homeownership rate
was also in this range at 59 percent. The slight decline in homeownership between 2010 and
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 5
2014 is consistent with state and national trends, both of which reflect a two percentage point
drop in homeownership over the same period, partially due to the introduction of Millennials,
who are most likely to rent, into the housing market.
Compared to the county and the state overall, the City of Santa Fe has a higher proportion of
renters—typical for urban areas.
Figure 6.
Household by Tenure, City of Santa Fe, 2000, 2007, 2010 and 2014
Note: This is an update to Figure I-3 in the 2013 HNA.
Source: 2013 HNA and 2014 ACS.
Income and poverty. The median household income in the City of Santa Fe was $49,380 in
2014—higher than the state overall ($44,803) but slightly below Santa Fe County ($52,809).
Figure 7 displays median household income of both renters and owners in Santa Fe for 1999,
2006, 2010, 2011 and 2014. Overall, median household income increased by 12 percent between
2010 and 2014—from $44,090 to $49,380. Renters experienced a 24 percent income increase
(from $28,240 to $34,945) and owners experienced a 7 percent increase (from $58,467 to
$62,727). It is unclear whether the increase in renter incomes reflects the incomes of current
renters or whether it’s indicative of lower-earning renters leaving the city to seek more
affordable housing in other communities. Likewise, newer residents moving into the city since
2011 are possibly higher earners with more mobility options.
Num.
Pct. Num. Pct. Num. Pct. Num. Pct.
Total
households
27,569
100% 30,586 100% 31,895 100% 31,001 100% 60,565 760,916
Own 16,052 58% 18,168 59% 19,299 61% 18,156 59% 68% 67%
Rent 11,517 42% 12,418 41% 12,596 39% 12,845 41% 32% 33%
New
Mexico,
2014
2014
2010
2007
2000
City of Santa Fe
Santa Fe
County ,
2014
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 6
Figure 7.
Median Household Income by Tenure, City of Santa Fe 1999, 2006, 2010 and 2014
Note: This is an update to Figure I-10 in the 2013 HNA.
Source: 2013 HNA and 2014 ACS.
Nearly 12,000 Santa Fe residents (17% of the population) are living in poverty. Children are the
most likely age group to be living in poverty (30%) and seniors are the least likely to be living in
poverty (6%). The city has a lower poverty rate than the state (21%) but a higher rate than Santa
Fe County (14%). Figure 8 displays poverty by age for Santa Fe residents in 2014.
Figure 8.
Poverty by Age, City of Santa Fe, Santa Fe County and New Mexico, 2014
Note: This figure did not appear in the 2013 HNA.
Source: 2014 ACS.
Employment. The total number of jobs in the Santa Fe metropolitan statistical area (MSA)
peaked in 2007 at 90,272 jobs.
1
Between 2007 and 2010, the MSA lost an average of nearly
1,100 jobs per year, dropping the total jobs count to 86,987. Between 2010 and 2013, the
number of jobs stabilized and job losses slowed to just 28 per year on average. Figure 9 displays
employment trends in the Santa Fe MSA between 2001 and 2013.
1
Employment data from the Bureau of Economic Analysis is only available at the MSA or county level.
Median HH Income
1999 $40,392 $52,634 $28,177 $33,974 $40,432 $22,267
2006 $50,000 $60,000 $36,344 $40,629 $49,948 $24,651
2010 $44,090 $58,467 $28,240 $42,090 $51,871 $26,278
2011 $46,617 $64,690 $29,291 $41,963 $52,711 $25,980
2014 $49,380 $62,727 $34,945 $44,803 $55,135 $28,410
1999 to 2006 24% 14% 29% 20% 24% 11%
2006 to 2011 -7% 8% -19% 3% 6% 5%
1999 to 2011 15% 23% 4% 24% 30% 17%
2011 to 2014 6% -3% 19% 7% 5% 9%
Percent Change in MHI
Renters
City of Santa Fe
State of New Mexico
All Households
Owners
All Households
Owners
Renters
Num. in
Poverty
Pct. in
Poverty
Num. in
Poverty
Pct. in
Poverty
Num. in
Poverty
Pct. in
Poverty
Total population 11,938 17% 20,673 14% 436,153 21%
Under 18 years 3,700 30% 5,853 21% 145,966 30%
18 to 64 years
7,333 17% 13,003 15% 248,861 20%
65 years and over
905 6% 1,817 6% 41,326 13%
New Mexico
Santa Fe County
City of Santa Fe
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 7
Figure 9.
Employment
, Santa Fe MSA 2001
to 2013
Note:
CAGR is defined as “
compound annual growth rate.”
This is an update to Figure I
-14 in the 2013 HNA.
Source
s:
2013 HNA and Bureau
of Economic Analysis (BEA).
One quarter of all 2010 and 2014 jobs were self-proprietor jobs, a slight increase over 2007 self-
employment rates. According to the 2014 Economic and Industry Snapshot for Santa Fe, the
Santa Fe MSA has a larger percentage of self-employed workers than any other MSA in the state
except Las Cruces.
Industry profile. As of the fourth quarter of 2013, Public Administration (local, state and
federal government) was the largest employment sector in the city, which is typical of a capital
city. Retail Trade and Health Care are the next largest sectors, each accounting for 15 percent of
total Santa Fe employment. The Accommodation and Food Services industry also supports a
large share of jobs, indicative of the tourism economy in Santa Fe. Figure 10 displays these Santa
Fe employment data by industry. Employment data for the third quarter of 2011 are also
included for the sake of comparison.
2001 62,787 16,717
79,504
2005 68,367 19,656
88,023 2.6%
2007 70,114 20,158
90,272 1.3%
2010 65,425 21,562 86,987
-1.2%
2013 65,234
21,670 86,904 0.0%
Wage
and Salary
Jobs
Proprietor Jobs
Total Jobs
CAGR from
previous
period
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 8
Figure 10.
Employment by Industry, Santa Fe MSA, Q3 2011 and Q4 2013
Note: Total employment in Q3 2011 was 60,825. Total employment in Q4 2013 was 61,252.
This is an update to Figure I-16 in the 2013 HNA.
Source: Economic and Industry Snapshot, Santa Fe MSA/County, 2012 and 2014.
Average wages in the Santa Fe MSA have recently trailed the U.S average, but are similar to the
average for the state of New Mexico. According to the Bureau of Labor Statistics’ Quarterly
Census of Employment, in 2014 the average annual wage for the private sector in the Santa Fe
MSA was $39,468, compared with $49,192 in the U.S. and $39,520 in New Mexico.
2
Housing stock and household characteristics
Figure 11 provides an overview of some of the housing stock and household characteristics in
Santa Fe in 2000, 2010 and 2014.
2
Average annual wages applies a full-time, 52 week work year to average weekly wage statistics provided by the Bureau of
Labor Statistics.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 9
Although the population of Santa Fe increased slightly (excluding annexation) between
2010 and 2014, the total number of housing units remained flat. The overall mix of housing
structure types (single family, multifamily and mobile homes) also held steady.
The homeownership rate declined slightly from 61 percent in 2010 to 59 percent in 2014. A
corresponding drop in the rental vacancy rate was evident over the same period as more
households began to occupy the rental housing stock. A local study by Southwest Planning
indicates that the occupancy rate in 2015 was 96.5 percent. In other words, the most
current research indicates that the City of Santa Fe has an approximate 3 percent rental
vacancy rate. The 2015 CBRE Apartment Market Survey also reports a 3 percent vacancy
rate for 2015—indicating a very tight rental market.
3
Median home value and the median mortgage payment for Santa Fe owners declined
between 2010 and 2014 after rising substantially the previous decade (2000 to 2014). In
contrast, the median contract rent increased by 14 percent between 2010 and 2014 (from
$767 to 872).
Average household size for owners dropped slightly from 2.2 to 2.1 but average household
size for renters increased from 2.0 to 2.4 between 2010 and 2014. The reason for the renter
household size is unclear; however, renter income also increased over the period which
may reflect larger households or families that are typically owners opting to rent instead. A
possible reason for households opting in to the rental market is the decline in home value
and the high cost of maintaining a home makes renting more economically appealing.
The distribution of householders by age reflects the overall age trends in the city—an
increase in senior householders offset by a decrease in boomer-aged householders (aged 55
to 64) and to a lesser extent middle aged adult households (aged 35 to 54).
As discussed earlier in this report, the median income in Santa Fe increased for all
households between 2010 and 2014, with renters experienced the largest percentage gains
(24% increase compared to 7% for owners).
The number and proportion of cost burdened households in the city declined between 2010
and 2014. In 2014, 11,313 households (38% of all households) were paying more than 30%
of their income on housing, compared to 14,275, (46%) in 2010.
3
CB Richard Ellis Apartment Market Surveys, Apartment Association of New Mexico Apartment Market Survey, RRC Associates
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 10
Figure 11.
Household Trends, City of Santa Fe, 2000 to 2014
Note: 2014 data do not include recent annexation of approximately 13,000 residents. This is an update to Figure I-1 in the 2013 HNA.
Sources: 2013 HNA and 2014 ACS.
New Mexico
2014
Population and Housing Units
Population 62,203 67,947 70,291 9% 3% 2,085,572
Housing Units 30,533 37,200 37,051 22% 0% 912,910
Occupancy and Tenure:
Occupied Housing Units 27,569 31,895 31,001 16% -3% 760,916
– Owner Occupied Units 58% 61% 59% 67%
– Renter Occupied Units 42% 40% 41% 33%
Vacant Housing Units 10% 14% 16% 17%
– For rent 2% 4% 3% 3%
– For sale 1% 2% 2% 1%
– Rented or sold, not occupied 0% 1% 1% 1%
– Seasonal/recreational/occasional use
5% 6% 7% 6%
– Other vacant 1% 2% 3% 6%
Type of Housing Unit:
Single family 60% 57% 58% 65%
Multifamily 37% 38% 37% 19%
Mobile homes 4% 4% 5% 16%
Value/Price of Housing:
Median Home Value 182,800$ 301,000$ 269,900$ 65% -10% 158,400$
Median Mortgage Payment 1,177$ 1,597$ 1,447$ 36% -9% 1,195$
Median Contract Rent 644$ 767$ 872$ 19% 14% 655$
Household Characteristics
Average Household Size 2.2 2.1 2.2 2.7
Owners 2.3 2.2 2.1 2.7
Renters 2.1 2.0 2.4 2.6
1-person 36% 41% 40% 30%
2-persons 34% 33% 36% 34%
3-persons 14% 12% 12% 14%
4-persons 10% 8% 9% 12%
5+ persons 6% 6% 3% 10%
Household Type
Percent married couples with children 16% 13% 13% 16%
Percent married couples without children
22% 21% 22% 28%
Percent Single parent 11% 10% 9% 11%
Percent other family without children 6% 6% 6% 9%
Percent living alone 36% 41% 40% 30%
Percent other non-family 9% 9% 10% 6%
Percent
Change 2010
to 2014
Percent
Change 2000
to 2010
2000
2010
2014
City of Santa Fe
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 11
Figure 11 (continued).
Census Profile and Trends, City of Santa Fe, 2000 to 2014
Note: 2014 data do not include recent annexation of approximately 13,000 residents. This is an update to Figure I-1 in the 2013 HNA.
Sources: 2013 HNA and 2014 ACS
New Mexico
2014
Household Characteristics (continued)
Age of Householder
15 to 24 years 4% 4% 3% 5%
25 to 34 years 15% 12% 13% 14%
35 to 44 years 20% 15% 14% 16%
45 to 54 years 24% 19% 17% 19%
55 to 64 years 16% 24% 20% 21%
65 years and older 21% 26% 33% 26%
Household Income
Under $15,000 16% 19% 10% 17%
$15,000 to $24,999 14% 12% 13% 13%
$25,000 to $34,999 14% 11% 12% 10%
$35,000 to $49,999 17% 11% 16% 15%
$50,000 to $74,999 19% 20% 16% 17%
$75,000 to $99,999 10% 10% 13% 11%
$100,000 or more 12% 16% 21% 17%
Average Household Income 56,494$ 65,306$ 70,642$ 16% 8% 61,470$
Median Household Income 40,184$ 44,090$ 49,380$ 10% 12% 44,803$
Owners 52,634 58,467 62,727 11% 7% 55,135
Renters 28,177 28,240 34,945 0.2% 24% 28,410
Housing Problems
Percent of cost-burdened
(spending 30% or more of income for housing)
34% 46% 38% 31%
Number of cost-burdened 8,566 14,275 11,313 67% -21% 232,697
Percent of overcrowded units
(1.01 or more persons per room)
5% 3% 2% 4%
Percent of substandard units
(incomplete kitchen/plumbing facilities)
1% 1% 1% 2%
City of Santa Fe
Percent
Change 2000
to 2010
Percent
Change 2010
to 2014
2000
2010
2014
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 12
Affordable Housing Inventory
Emergency Services. Emergency shelter programs generally provide short-term crisis
oriented support services including case management, meals, and crisis counseling. Increasingly
the limitations to this approach have become obvious. Service models have shifted to emphasize
permanent supported housing which provide a range of longer-term services designed to
support client stability and growth, including general case management services to identify
client needs and to develop client specific case management plans, general counseling services
for mental health, substance abuse services, family counseling, life skills education, GED and
personal financial counseling, employment counseling, and child development classes. The
following describes the facilities and services available in Santa Fe to homeless people or those
in danger of becoming homeless:
• St. Elizabeth. St. Elizabeth provides 28 year-round emergency shelter beds for men at
its main facility, in addition to a library, TV room, laundry, showers and some case
management. The organization also offers longer term and transitional shelter options.
Casa Familia offers five family rooms, with 16 additional dormitory beds reserved for
women, in addition to supportive services and can house up to 30 people per night. Casa
Cerrillos contains 28
efficiency
apa
rtments
for longer term residency for people with
physical, mental, and co-occurring substance abuse issues. Sonrisa Family Shelter offers
eight apartments where families can stay
for up to two years while they stabilize their
finances and find permanent housing.
•
Interfaith Shelter. Several faith based organizations support a seasonal shelter from
November to May. The shelter offers meals, showers and laundry, in addition to beds and
also some case management services. Embedded within the shelter is the Resource
Opportunity Center which is open two days per week, serves 120-140 people per day,
and offers more intensive case management and legal services.
• Life Link. Established in 1987 in a motel, Life Link has evolved into a highly effective
mental health center. At La Luz, 24 transitional apartment units are provided to people
with mental illness and other co-occurring disorders. The facility also offers extensive
outpatient treatment, pyscho-social rehabilitation, homeless prevention and rental
assistance, peer support services and onsite healthcare screening. Additionally, an offsite
facility called Casa Milagro offers permanent housing for 12 individuals.
•
Esperanza. Esperanza is a full service organization offering counseling, case
management and advocacy for survivors of domestic violence. The organization operates
a shelter that can house up to 42 people, as well as 21 beds of transitional housing to
allow clients establish independence while still receiving supportive services. The
organization also offers comprehensive non-residential counseling services.
•
Youth Shelters. On any given night, the organization estimates that 100 youth may
be
homeless
on the streets of Santa Fe. Services are provided to homeless, runaway and in-
crisis youth and their families including street outreach, emergency shelter, transitional
living, counseling and Civic Justice Corps. Special initiatives are the Pregnant and
Parenting Project, including referrals, case management, parenting skills; and the
Workforce Development/GED Initiative, which helps youth with job readiness skills and
GED preparation. Youth can stay at the emergency shelter for up to 30 days and in the
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 13
transitional, apartment style living program for 18 months. Street Outreach is a drop-in
resource center that assists youth with emergency services such as food and warm
clothing and provides longer term services to help youth leave the streets. All services
are free of charge.
Continuum of Care/Shelter Plus Care. The purpose of HUD’s Shelter Plus Care program is to
subsidize rents
for people
with disabilities and their families. Shelter Plus Care rental vouchers
are administered either on a project basis or directly to tenants to use at privately-owned
scattered sites. Life Link uses vouchers to subside its rents at La Luz, as well as administering
them to its clients who are able to live off site. For several years, the Housing Trust has
administered vouchers to people living with AIDS and is initiating a project-based voucher for its
newly constructed subsidized rental projects, the Village Sage and the Stagecoach Apartments.
Another Shelter Plus Care grant, initiated in 2012 is administered by St. Elizabeth at its Siringo
Senior Housing site.
Emergency rent, mortgage and utility assistance. Given the effects of the economic
recession, concerted efforts have been made to expand the safety net of services in Santa Fe. In
2010, the city allocated CDBG and Housing Trust funds to Faith at Work which provided 3 months
of emergency rent/mortgage assistance to 62 families, preventing immediate eviction and
default. Of these families, 53 percent were extremely low-income, earning less than 30 percent
AMI. Forty-one families in 2011 were provided emergency rent/mortgage assistance through
Esperanza Shelter’s Emergency Assistance Program (EAP), all of whom were female-headed
household with presumed household incomes in the 30 –50 percent AMI range. In FY 2015-16,
the City provided Affordable Housing Trust Funds to Life Link to provide short term rental
assistance. 90 very low income renters were served, earning an average of 26%AMI.
Santa Fe Civic Housing Authority. As reported in 2015, the Santa Fe Civic Housing Authority
(SFCHA) is the public housing agency in Santa Fe. It manages 490 units of public housing, and
administers 670 Section 8 vouchers in Santa Fe. There are a total of 369 units for seniors,
leaving 121 for families. Currently, 269 people are on the public housing waiting list for a
housing authority apartment unit, and approximately 171 people on the Section 8 waiting list for
Santa Fe. SFCHA receives approximately 35 applications per month for public housing. The wait
for a household to receive a unit is between 18 and 24 months, and the voucher wait list contains
132 households. It takes a household between 12 and 18 months to get to the top of that list.
All of the units are in livable condition but maintenance is a continuous effort. With the
exception of the new Villa Alegre and Campo Alegre units, all are planned for rehabilitation over
the next several years. SFCHA is participating in the RAD program and by June of 2016, 120 units
will be substantially rehabilitated to be brought up to modern code standards, incorporate
“green” building standards such as solar panels, and include modern amenities such as
daylighting. The sites include Agua Fria (6 units), Cerro Gordo (25 units), Gallegos Lane (25
units), Hopewell/Mann (40 units) and Senda Lane/Senda del Valle (24 units).
Additional affordable units in the production pipeline include two tax-credit projects for senior
units: a 116-unit development at Villa Hermosa (one- and two-bedroom units for seniors) which
has already received tax-credits and a 120-unit senior development at Pasa Tiempo for which a
LIHTC application will be submitted to MFA next year.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 14
Subsidized Rental Units
Santa Fe’s inventory of subsidized rental units is fairly robust. However, with the exception of
the units constructed by the Housing Trust and those rehabilitated by the Housing Authority,
many are aging and in need of renovation. It doesn’t appear that any will revert to market rate.
Figure 12
Inventory of Subsidized Rental Units
Tax Credit Apt Name Address Type
# of
Units
Council
District
The Bluffs
6600 Jaguar Drive
Family
160
3
Cedar Creek
3991 Camino Juliana
Family
94
3
Country Club
5999 Airport Road
Family
62
3
Evergreen
2020 Calle Lorca
Family
70
2
Las Palomas
2001 Hopewell
Family
280
2
Paseo del Sol
4551 Paseo del Sol
Family
80
3
Tuscany at St. Francis
2218 Miguel Chavez
Family
176
2
Ventana de Vida
1500 Pacheco
Elderly
120
2
Casa Rufina
2823 Rufina
Elderly
120
4
Villa Real
501 W. Zia
Family
120
2
Vista Linda
6332 Entrada de Milagro
Family
109
3
Tres Santos
189 Pacheco
Family
136
2
Casa Vallita
3330 Calle Po Ae Pi
Elderly
106
4
Villas de San Ignacio
3493 Zafarano
Family
127
4
Village Sage
5951 Larson Loop
Family
60
3
Stagecoach Apt
3360 Cerrillos Rd
Family
60
4
TOTAL
1880
Civic Housing Authority
Villa Alegre Senior Housing
811 W. Alameda
Elderly
50
1
Villa Alegre Family Housing
821 W. Alameda
Family
60
1
Villa Alegre Ph. III
104 Camino del Campo
Elderly
28
1
TOTAL
138
1
Section 8/202 Apt Name
Sangre de Cristo
1801 Espinacitas
Family
164
2
Santa Fe Apts
255 Camino Alire
Family
64
1
Encino Villa
1501 Montano
Elderly
40
1
La Cieneguita
1601 La Cieneguita
Elderly
32
1
TOTAL
300
Project Based Rental
La Luz
2325 Cerrillos
Family
24
1
TOTAL
24
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 15
Construction of New Units
Nonprofit production. Santa Fe’s three primary nonprofit single-family home developers are
Habitat for Humanity, Homewise, and The Housing Trust. To date, Habitat has created 100
affordable homes; Homewise, 599; and the Housing Trust, 711; for a total of 1,410 homes
created by nonprofit partners.
Habitat for Humanity. Like all Habitat affiliates, the Santa Fe office develops homes
through a self-help model that brings together the future homeowner, a licensed contractor
and a team of volunteers to build each home. The price of the home is thereby reduced by
the 500 hours of “sweat equity” earned by the homeowner in helping to build the home.
Habitat clients earn less than 50 percent of the area median income.
Homewise. Homewise was founded in 1987 as a nonprofit agency helping homeowners
repair and renovate their homes. Since then, the organization has expanded into a full
service homeownership center, offering homebuyer training and counseling, financial
fitness classes, mortgage financing and refinancing, ongoing home repair services, and
assistance with energy efficiency retrofits. The organization has also built many affordably-
priced homes in Santa Fe.
The Housing Trust. Formerly known as the Santa Fe Community Housing Trust, the Trust
was established in 1991 to use the land trust model to increase affordability. Since then, the
organization has expanded its model to provide a full range of homebuyer and homeowner
services including: homebuyer training and counseling, reverse mortgage financing, rental
assistance for special needs populations, and real estate development. Since 2010, the
Housing Trust has constructed 120 units of affordable rental housing that is green-built and
serves renters earning up to 60% AMI, with one-quarter of units at each site reserved for
renters transitioning out of homelessness.
NSP-funded acquisition and rehab. The City of Santa Fe was one of the first communities in
New Mexico to use HUD’s Neighborhood Stabilization Program (NSP) funds. NSP was
administered according to CDBG guidelines as a means through which communities could
purchase and redevelop abandoned or foreclosed homes.The city partnered with Homewise to
finance the purchase of 14 homes by qualified buyers and also partnered with Life Link to
purchase and rehabilitate four homes to be used as permanent housing for renters with mental
illness.
Homebuyer training and counseling. In partnership with Homewise and the Housing Trust,
the city supports homebuyer training and counseling through administrative contracts. Potential
homebuyers attend classes where they learn about real estate transactions, budgeting, mortgage
lending and other aspects related to buying a home. Specifically, the nonprofits work with clients
to make them “buyer-ready” with the overall objective of ensuring that homebuyers are
approved for prime rate mortgages that they can afford and are capable of paying. Several
funding sources are dedicated to these efforts including CDBG, CIP-Funded Assistance, and the
Affordable Housing Trust Fund. Approximately 400 buyers are trained per year.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 16
Homeowner assistance. The city and its partners also support homeownership through
rehabilitation and home repair, energy efficiency upgrades, and foreclosure prevention
programs. In 2015 the city funded 16 single-family rehabilitation projects between Community
Development Block Grant and Affordable Housing Trust Funds between two local non-profit
service providers: Habitat for Humanity and Homewise. Of this number, approximately ten (10)
of the single family homes have mortgages. Central New Mexico Housing Corporation is the
weatherization provider for Santa Fe, using funds through the NM Energy$mart program.
Approximately 25 homes per year are weatherized in the city with an average cost of $6000 per
unit.
Tierra Contenta. Until recently, production of affordably-priced homeownership units in Santa
Fe occurred primarily in Tierra Contenta, a master-planned community of 1,400 acres. The
Tierra Contenta Corporation, a nonprofit development entity, provides builder ready tracts of
land to both nonprofit and for profit builders. Nearly 2,500 homes have been built since 1995, 45
percent of which are affordable.
Inclusionary zoning. One of the city’s most effective tools for spurring the provision of
affordable housing is through its inclusionary zoning programs. The first city program, the
Housing Opportunity Program (HOP), was implemented in the late 1990s. The program required
that all new development trigger an affordability requirement so that either 11 percent or 16
percent of units built were sold to qualified homebuyers at a predetermined price point (reliant
on homebuyer’s family size, HUD income limits, etc.). HOP homebuyers on average earn 65
percent of area median income and no more than 80 percent of area median income.
In the mid-2000s, the city initiated a more stringent inclusionary zoning program, the Santa Fe
Homes Program (SFHP) which originally mandated a 30 percent requirement for any application
including annexation, rezoning, subdivision plat and increase in density. For homeownership
housing, three income tiers are served: 50-65 percent AMI; 65-80 percent AMI; and 80-100
percent AMI, with 10 percent of the total units serving each tier. The requirement for rental
housing is 15%, with the income tiers adjusted downward to include a tier for renters earning
less than 50%.
In 2010, in response to the economic slowdown, in particular the building and construction
industries, the city further modified the requirement such that 20 percent of new homes
proposed for construction are sold to income-qualified homebuyers (down from the original
30%). The rental requirement remains the same. In 2016, further adjustments were made to the
program to allow multifamily developers to pay a fee-in-lieu by right (as opposed to having to
get City Council approval). This accommodation was motivated by Santa Fe’s historically high
rental occupancy rates which have had the effect of driving up rents across all segments of the
market. Those with the lowest incomes are least able to absorb the increases and it is assumed
that some of these renters have left the community due to their increased cost burdens. The
amendment to the requirement has a four year sunset period when it will expire. At year three,
staff is directed to evaluate whether it has had any positive effect on the construction of market
rate rental housing with the expectation that increasing rental inventory will expand choices.
Santa Fe offers development incentives through the Santa Fe Homes Program (SFHP) in the form
of a density bonus and fee waivers. The density bonus allows for the number of base units: the
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 17
total number of units that would otherwise be allowed by the zoning district to be multiplied by
15 percent. It does not impact other code standards such as height limits, lot sizes or require a
general plan amendment. While this is an important incentive, its applicability to fairly low
maximum density limits (10 units per acre), somewhat limits its effectiveness, since a maximum
density of 11.5 units per acre is still below that achieved by many townhouse developments (and
some single-family detached developments). The fee waivers reduce development review,
construction permit and impact fees as well as utility expansion charges proportionately based
on the number of SFHP units in the development.
As with its other housing programs, the city relies on its nonprofit partners, Homewise and the
Housing Trust to train, counsel and qualify the buyers. Additionally, homebuyers are often
subsidized with downpayment assistance funded through CDBG, the Affordable Housing Trust
Fund, the NM Mortgage Finance Authority, or other sources accessed by the housing counseling
agencies.
To date, approximately 100 HOP, 27 SFHP and 397 Low-Priced Dwelling Units have been
created, with an additional 400 units created through annexation agreements that predate the
inclusionary zoning program.
Economic Development
The City of Santa Fe’s Economic Development Division has refined its strategy to focus on
entrepreneurship of its main initiative. Developing home grown entrepreneurs is a proven job
creation strategy as small businesses often create one, two or more jobs and in aggregate these
form the largest sector of private sector employment in Santa Fe. The City launched a pilot
accelerator program designed to provide a fast track to growth for small businesses. The City
also continues to support its business incubator which provides the support of a shared facility
and business development services for resident and affiliate companies.
Through these efforts the city is diversifying the local economy through job creation and support
for small business creation and growth. The main goal of the City’s economic development work
is to strengthen the economy by developing industries other than the main employment areas of
government and tourism. This is outlined in the policy document adopted in 2008 by the City
Council, the Strategy for Implementation in economic development.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 18
IV. Land Use and Policy Review for Barriers to
Affordable Housing
This section summarizes BBC’s evaluation of the City of Santa Fe’s public policies related to
housing opportunities. Specifically BBC reviewed the city’s land use code, historic
preservation policies, impact fees, General Plan, and housing policies in order to identify
any
potential constraints to affordable housing development present in policies.
Introduction
One of the most common local governmental constraints to the private production of affordable
housing is zoning, subdivision, and land development regulations. In some cases, land use
regulations that intentionally or unintentionally cause barriers to affordable development can
offset the impact of affordable housing subsidies or increase the need for subsidies as a vehicle
for meeting affordable housing goals.
A number of studies, including a 2006 book by Jonathan Levine (Zoned Out), have documented
the impact of zoning regulations on the supply of affordable housing.
4,
5
Common zoning
regulations negatively impacting affordable development include:
Minimum house size, lot size, or yard size requirements;
Prohibitions on accessory dwelling units;
Restrictions on land zoned and available for multifamily and manufactured housing; and
Excessive subdivision improvement standards.
A national study conducted by the National Association of Home Builders in 2007 evaluated
which types of subdivision regulations have the greatest impacts on housing costs.
6
The study
compared benchmark standards for single family housing (necessary for public health and
safety) and compared the cost of building homes under those benchmarks with actual costs of
single family home construction. The study found that
65 percent of the added costs were caused by minimum lot size requirements; and
9 percent of the added costs were caused by lot width requirements.
4
Levine, Jonathan, Zoned Out (RFF Press, Washington, D.C., 2006).
5
Colorado Deportment of Local Affairs, Reducing Housing Costs through Regulatory Reform (Denver: Colorado Department of
Local Affairs, 1998).
6
Study of Subdivision Requirements as a Regulatory Barrier. EcoNorthwest, for National Association of Homebuilders
Research Center, 2007.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 19
Minimum house size requirements also had a significant impact on cost—accounting for 17
percent of the added costs in communities that have such restrictions.
7
Land Use Code
The zoning review conducted for this analysis focuses on key land use regulations that can have
significant impacts on housing affordability and availability, derived from work conducted by
Don Elliott of Clarion Associates. The following discussion is organized by:
Permitted uses, or types of housing units allowed (e.g., multifamily parcels, manufactured
homes, accessory dwelling units (ADU’s), mixed use districts, and group housing);
Residential development standards such as lot size, minimum house size, density and
parking standards;
Other best practices to help foster the production of affordable housing (purpose
statements, flexibility on nonconforming structures and incentives for affordable
development).
The City of Santa Fe’s zoning code does include multiple mixed use districts and the residential
districts are generally inclusive of many housing types. Even low density residential districts
allow multifamily development, manufactured homes and accessory dwelling units. Group
homes for eight or fewer residents are also allowed by right in all residential districts, although
the occupancy limit for unrelated persons in a single family home that isn’t a “group home” is
five persons.
Figure 13 displays the zoning map for the City of Santa Fe.
7
This is an uncommon requirement; only 8 percent of local governments imposed a minimum house size at the time the study
was conducted.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 20
Figure 13.
City of Santa Fe Zoning
Districts
Source: City of Santa Fe.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 21
Permitted uses. In order to promote affordability, the zoning code should allow for a diversity
of housing types and should accommodate the construction of multifamily and manufactured
housing as well as encouraging housing production in close proximity to employment. Best
practices for residential uses that foster affordable development are described below:
Mixed Use. Housing should be allowed near businesses that employ workers, particularly
moderate and lower income employees. To do that the code should permit residential units
in at least one commercial zone district (preferably more) and/or should map some lands
for multifamily development in close proximity to commercial districts.
Multifamily Parcels. At least one zone district (or overlay district, or permit system)—
preferably more—should allow the construction of multifamily housing, and enough land
should be mapped into that district to allow a reasonable chance that multifamily housing
will be developed. Maximum heights should be reasonable and consistent with the
maximum density permitted; avoid mapping areas for multifamily densities and then
imposing height restrictions that prohibit efficient development at those densities. Failure
to provide opportunities for multifamily development has been identified as one of the four
leading regulatory causes of increased housing costs.
Accessory Dwelling Units. The code should allow accessory dwelling units in at least
one zone district—preferably more—either as an additional unit within an existing home
structure or in an accessory building on the same lot. While some communities require a
special permit for these uses, others find that they can be allowed by right provided that
they comply with standards limiting scale, character, and parking. Avoiding a special permit
or approval requirement is preferable.
Manufactured Homes. Manufactured housing that meets HUD safety standards should
be allowed in at least one zone district (per the federal Manufactured Housing Act of 1974).
While restricting these homes to manufactured home parks is common, the better practice
is to allow them in at least one residential zone where the size and configuration matches
the scale and character of the area.
Group Housing. The code should clarify that housing for groups protected by the Fair
Housing Act Amendments of 1988 are treated as residential uses (not commercial uses,
regardless of whether residents of those facilities are paying for services), and should
generally allow those group housing uses in at least one residential district where similarly
sized homes or apartments are permitted—preferably more. As a general rule, small
facilities (no more than eight residents) should be allowed in at least one zone district
where single-family detached homes are allowed—preferably more. Some HUD offices and
advocates believe that compliance with the FHAA requires that these facilities be allowed
everywhere similarly sized homes and apartment buildings are permitted, and under the
same conditions, but some court decisions have upheld additional conditions or procedures
for group housing projects. While some communities require a special permit for these
uses, others find that they can be allowed by right provided that they comply with
standards limiting scale, character, and parking. Failure to provide for these uses in the
code could subject the city to a developer’s request for “reasonable accommodation” under
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 22
the Act, and failure to provide “reasonable accommodation” could be a violation of federal
law.
Figure 14 summarizes select residential uses by zone.
Figure 14.
Permitted Uses by District, City of Santa Fe
Note: A "P" in a cell indicates that a use category is permitted by right in the respective zoning district.
An "S" in a cell indicates that a use category is permitted only if reviewed and approved as a special use permit.
An “A” in a cell indicates that a use category is permitted as an accessory use.
A blank cell indicates that the use type is prohibited in the zoning district.
* In the RR district, multiple-family dwellings are limited to four per lot..
Source: City of Santa Fe Land Development Code.
Residential development standards. As discussed in the introduction, dimensional
standards, such as lot size, house size and density have a substantial impact on housing costs.
Parking standards can also be a barrier to affordable development, particularly for multifamily
developments.
Density and lot size. Minimum lot size requirements are the type of regulation most
responsible for increasing housing costs. While the appropriate minimum lot size will vary with
the character of the community, a zone allowing minimum lot sizes in the 3,000-6,000 square
foot range is generally considered appropriate for urbanized or non-rural areas. In addition, lot
width requirements should be reasonable and consistent with minimum lot sizes; while some
codes require minimum lot widths of 70 feet or more, small homes can be constructed on lots as
narrow as 40 feet, and an increasing number of new codes for urban areas allow residential
development on 25 foot wide lots.
District Description
Multi-
family
dwelling
Single
family
dwelling
Manu-
factured
home
Accessory
dwelling
unit
Group home
for 8 or fewer
residents
RR
Rural Residential
P* P P A P
R-1 - R-6
P P P A P
R-7 - R-9
P P P A P
R7 (I)
P P A P
RC-5, RC-8
P
P P A P
R-10 - R-29
P P P A P
MHP
Mobile Home Park P P P A
RAC
Residential Arts and Crafts P P P A P
C-1
Office and Related Commercial P P P A P
C-2
General Commercial
P P P A S
C-4
Limited Office and Arts and Crafts
P P P A P
HZ
Hospital Zone
P P P A P
BCD
Business-Capitol P P P A P
I -1
Light Industrial A
I -2
General Industrial A
BIP
Business and Industrial Park A S
SC-1 - SC-3 Planned Shopping Center
P
MU
Mixed Use P P P A P
Residential (Numeral indicates
maximum number of dwelling units per
acre. “(I)” indicates Infill).
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 23
Figure 15 displays the dimensional standards for Santa Fe’s residential districts and the mixed
use and commercial districts with residential uses.
Figure 15.
Dimensional Standards for Residential Districts
Source: City of Santa Fe Land Development Code.
Santa Fe’s residential districts allow for a variety of densities—from one dwelling unit per acre
up to 10 units per acre. The higher density residential districts (R-7, R-8 and R-9) cite
affordability in their purpose statement noting that their intent is to “allow a density that
enables affordability.” However, 10 units per acre is below the density achieved by many
attached single-family (townhouse) projects, and most multifamily projects would require
densities higher than 10 units per acre to build efficiently. In Santa Fe, it appears that achieving
fairly standard multifamily densities require special approval. The city might consider allowing
multifamily construction in some districts at densities higher than 10 units per acre without
special development plan approval, perhaps by defining building envelopes based on the
surrounding height and scale of development rather than a dwelling unit per acre cap. While
taller height limits might allow for more efficient and affordable multifamily development, we
understand that low-scale development is a key element of Santa Fe’s history, character, and
tourist industry, and do not recommend that additional heights should be achievable without
special review.
The minimum lot sizes for single family units are also low enough to allow for affordable
development (4,000 square feet in most residential districts, 3,000 square feet in high density
residential districts, and only 2,000 square feet when there is common open space). Lot widths
are not specified in the code.
District
Max. Gross Density (dwelling
units per acre)
Minimum Lot Area
Max Height
of Structures
Residential Districts
RR 2 to 3 units per acre
SF: 4,000 sq ft
SF with common open space: 2,000 sq ft
MF: as required to comply with max density
24 feet
R-1 - R-9
and R7(I)
Numeral indicates max units
per acre
(e.g., R-1=1, R-9=9)
SF: 4,000 sq ft
SF with common open space: 2,000 sq ft
MF: as required to comply with max density
24 feet
R-10 -
R-29
R-10=10
R-12, R-21 and R-29=10 or per
development plan or special
use permit
SF: 3,000 sq ft
SF with common open space: 2,000 sq ft
MF: as required to comply with max density
R-10, R-12: 24 ft
R-21, R-29: 24 ft or 36
with special use permit
or development plan
RAC
10 units per acre or per
development plan or special
use permit
Same as R-10 - R-29 24 feet
Mixed Use and Commercial Districts
MU 12-14 units per acre None, except as needed to satisfy other regs 25-35 feet
BCD 18-56 feet
C-1 - C-4 24-45 feet
varies, but generally must maintain the current residential scale
same as R-21 or contiguous residential district
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 24
Minimum house sizes. Minimum house size requirements are not common but have been
identified as a significant cause of increased housing price in those communities where they are
in place. As a best practice for reducing barriers to affordable development, zoning and
subdivision regulations should not establish minimum house or dwelling unit sizes (beyond
those in the building code). The Santa Fe code does not specify minimum house sizes.
Parking standards. Although the traditional standard of two parking spaces per dwelling unit
may be reasonable for many areas, a lower standard can and generally should be used for
affordable housing, multi-family housing, group housing, and special needs housing.
As is typical, Santa Fe code requires two parking spaces for each detached dwelling unit and for
each attached dwelling unit when the structure has five or fewer units. For larger multifamily
dwellings (more than five units) and for group homes with more than eight residents the Santa
Fe code lowers the parking requirements (multifamily requirements range from 1.25 to two
spaces per dwelling depending on square footage and group homes require one space per two
beds). Although these requirements are not unreasonable, many newer codes are adopting
lower parking standards for more urban areas, particularly for multifamily housing and group
homes, and Santa Fe might consider adjusting those standards downward.
Architectural design standards. Santa Fe is well known for its exceptional historic character,
and the city’s economic health depends in part on preserving that character, and architectural
design standards are an important tool to preserve that character. Architectural design
standards can coexist with affordable residential development if they follow two key principles.
First, objective standards that can be reviewed by city staff for compliance (without the need for
individualized review and negotiation in front of a committee) are preferable. In other cities,
affordable housing developers sometimes comment that it is not the standards themselves that
make compliance difficult but the time and expense of completing a discretionary design review
process (especially if multiple presentations and appearances are required before approval).
Second, there is sometimes room for adopting lower design standards—or exempting affordable
projects from some standards—without significantly compromising neighborhood or historic
character. For example, new construction projects can still be required to meet a defined historic
style, allowing some of the details (for example, depth of required insets or projections, or the
level of entryway definition or window details) to be varied can result in construction savings
that enhance affordability. In other cities, building stepback requirements for higher floors have
been identified as a particularly expensive design requirement for affordable projects.
Other Best Practices
In addition to the regulations discussed above, there are some proactive components local
governments can incorporate in their zoning regulations to promote housing choice. These
include purpose statements, flexible nonconforming structure regulations and affordable
development incentives.
Purpose Statement. The code should reflect the jurisdiction’s purpose to provide housing
choice for its residents and to comply with applicable federal and state law regarding housing
choice. The purpose of Santa Fe’s land use code is to:
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 25
Implement the purposes of the general plan, including guiding and accomplishing a
coordinated, adjusted and harmonious development of Santa Fe that will best promote
health, safety, order, convenience, prosperity and the general welfare as well as efficiency
and economy in the process of development, and to ensure that the regulations adopted
pursuant to this chapter are in accordance with the general plan; and
Create conditions favorable to the health, safety, convenience, prosperity and general
welfare of the residents of Santa Fe by coordinating streets within proposed subdivisions
with existing or planned streets or other features of the general plan; providing parks and
trails; providing sewer, water and other infrastructure; providing adequate open space for
traffic, recreation, drainage, light and air; and providing for the appropriate distribution of
population and traffic.
The code also includes a purpose statement specifically for residential districts, which is more
explicit in promoting housing choice: “A variety of dwelling types to serve a wide range of
individual requirements is available throughout the residential districts, including single-family
dwellings or multiple-family dwellings, attached or detached dwelling units, site-built or nonsite-
built dwelling units, conventional subdivision arrangements, zero lot line, cluster developments
or compounds, as long as they are in keeping with the overall character of the district and all
other applicable requirements are met.”
The high density residential districts (R-7, R-8 and R-9) specifically include affordability as one
of their purposes.
Adding an intent to comply with state and federal fair housing laws and regulations in either the
general code purpose statement or the residential district purpose statement would be helpful.
Flexibility on Nonconforming Structures. Although zoning codes generally require that
nonconforming structures damaged or destroyed through fire or natural causes can only be
rebuilt in compliance with the zoning code, an increasing number of codes are exempting
affordable housing from this requirement. Often the most affordable housing in a community is
located on lots that are too small or narrow for the district where they are located, or in multi-
family buildings that have too many units for the district where they are located. If forced to
replat with larger lots or to reduce density following a disaster, those affordable units may be
lost, and allowing rebuilding with the same number of units as before may be the most efficient
way to preserve this these units in the housing stock.
Santa Fe’s code does not currently exempt affordable housing from nonconforming structure
requirements.
Incentives for affordable development. In order to encourage the development of
affordable housing, the code should recognize the difficult economics involved and should offer
incentives. Common incentives include smaller lots, increased density in multi-family areas,
reduced parking requirements, or waivers or reductions of application fees or development
impact fees. Some communities provide additional incentives for housing that is restricted for
occupancy at lower percentages of the Area Median Income (AMI). For example, developments
restricted for households earning less than 50% of AMI could receive more generous incentives
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 26
than those for households earning less than 80% of AMI. While zoning and subdivision
incentives alone are often not enough to make development for lower levels of AMI economically
feasible, they can be part of a broader package of incentives (for example, including financial
incentives or land contributions) that make those project feasible. Any incentives offered should
be updated as new housing studies are completed and new information about specific affordable
housing needs is obtained.
Historic Preservation
The City of Santa Fe has five historic districts that cover approximately 20 percent of the city—
about 6,000 buildings. The mission of the Historic Preservation Division is to preserve the
character of Santa Fe by effectively administering the Historic Districts and Archaeological
Districts ordinances and by educating the public about historic preservation. Figure 16 displays
the city’s historic districts.
For residents of a historic district, all exterior alterations and ground disturbance require an
approval through the Historic Preservation Division, even if a permit is not required. The
process and alteration standards can create additional affordability burdens by adding both time
and expense to necessary home repairs. The city may want to consider providing assistance to
homeowners living in historic districts with necessary repairs either through existing
homeowner programs or through a new program designed specifically for such a purpose.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 27
Figure 16.
City of Santa Fe
Historic Districts
Source: City of Santa Fe.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 28
Development Fees and Review Process
Santa Fe collects impact fees on new residential and commercial development. Waivers are
granted for homes or rental units that are part of the Santa Fe Homes Program and Housing
Opportunity Program homes. For single family homes, the impact fee is determined by the size of
the heated living area, ranging from $3,079 for 1,500 square feet or less up to $3,895 for more
than 3,000 square feet. Water rights are given to the developer for each affordable housing unit.
Fee waivers are generally valued at $8,000. The Land Use Department’s building permit fees are
based on the building valuation.
Multifamily housing. The site development process for multi-family developments with less
than 10,000 square feet of gross floor area involves approval of an administrative development
plan by City Development Review Team staff members. This review process adds about two
weeks to the normal construction permit review process. The approval process for multi-family
developments with over 10,000 square feet of gross floor area, or which involve densities
greater than ten dwelling units per acre, involves an early neighborhood notification meeting
and a public hearing before the Planning Commission or Board of Adjustment. Those procedures
take approximately four months to complete, prior to filing an application for a construction
permit.
Rezoning. Increasing density involves an early neighborhood notification meeting and public
hearings before the Planning Commission and the Governing Body. Those procedures take
approximately five months to complete, prior to filing an application for a construction permit.
Applications are rarely denied, and processing fees are waived for affordable housing projects.
Other than the time required, these processes are not viewed as constraints. However, the
higher cost of land closer in to the city, along with neighborhood opposition to multifamily
densities in these areas, are clearly constraints for applicable infill development proposals.
Overlay incentives. Recently, the Governing Body approved the Midtown LINC overlay zone
for the St Michael’s Drive corridor, one of Santa Fe main thoroughfares. The objective of the
overlay district is to spur mixed use redevelopment, to densify existing uses, and to encourage
the creation of a more interesting and vibrant street façade. Constructed as a bypass in the early
1960s, St Michael’s is currently characterized by strip mall development, car dealerships, and
some big box anchor stores. It is six lanes wide in most places, (plus a turning lane), largely
bordered by expansive parking lots, engineered to facilitate vehicular speed and as a result is an
unpleasant and unsafe pedestrian and bicycling environment.
The LINC establishes standards for “qualifying projects” that meet the City’s objectives for
redevelopment of the corridor. Those projects are subject to relaxed standards for setbacks,
height restrictions, landscaping and parking standards and also qualify for certain fee waivers
and/or reductions (construction permit fees, impact fees, water UECs, etc.). Importantly,
qualifying projects of a certain size can be approved through administrative review, rather than
going through an ENN and hearing at the Planning Commission. The Santa Fe Homes Program
requirements are in effect throughout this zone and any fee revenues collected through the
ordinance will be reserved for use in the surrounding neighborhoods as a buffer to future
gentrification of these areas.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 29
Santa Fe General Plan
Santa Fe’s General Plan was last updated in 1999 and provides a comprehensive, long-term plan
for the physical development and conservation of Santa Fe. The plan identifies 14 overall themes
that represent public concerns and values and that provide a foundation for guiding and
implementing policies. Those themes are:
Affordable housing. Actively participate in the creation of affordable housing.
Quality of life. Enhance the quality of life of the community and ensure the availability of
community services for residents.
Transportation alternatives. Reduce automobile dependence and dominance.
Economic diversity. Develop and implement a comprehensive strategy to increase job
opportunities, diversify the economy, and promote arts and small businesses.
Sustainable growth. Ensure that development is sustainable and that growth,
conservation, redevelopment, and natural resource protection are balanced.
Regional perspective. Maintain a regional growth management perspective and work
with other private and governmental entities towards that goal.
Water. Undertake comprehensive efforts to conserve water and ensure adequate supplies
with growth.
Character. Maintain and respect Santa Fe's unique personality, sense of place, and
character.
Urban form. Promote a compact urban form and encourage sensitive/compatible infill
development.
Community-oriented downtown. Put community activities back into Downtown.
Community-oriented development. Orient new development to the community; foster
public life, vitality, and community spirit.
Mixed use. Provide a mix of land uses in all areas of the city.
Review process. Streamline the planning and development review processes.
Implementation. Ensure consistency between the General Plan, implementing
ordinances (including zoning and impact fees), and the Capital Improvements Program
(CIP).
The inclusion of affordable housing as a top theme in the General Plan and in the Land Use
chapter of the Plan helps maintain a long-term focus on affordability as a development value.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 30
Other themes, such as urban form, transportation alternatives and mixed use also contribute to
affordable principles of development.
Housing and Transportation Affordability
According to the Center for Neighborhood Technology Housing+Transportation Affordability
Index, Santa Fe’s population on average, per households spends 66 percent of its income on both
housing and transportation. As shown by the percentage breaks below the map, households
closer to the city center may be located in the lowest income census tracts, but spend less on
transportation costs due to the housing stock’s proximity to multi-modal options, such as
walkability, multiple intersecting bus routes and bike paths. Similarly, housing located farther
out from the city center but closer to transit corridors also spends less (24-36%). Housing costs
increase in the areas in dark blue due to both rural locations and larger lots, and are almost
entirely automobile dependent, pushing both costs further up to between 70 and 87 percent of a
household’s income.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 31
Figure 17.
Housing and
Transportation
Costs as a % of
Income
Source: Center
for Neighborhood
Technology 2003-
2015. Accessed
March 2016.
CITY OF SANTA FE HOUSING PLAN LAND USE AND POLICY REVIEW, PAGE 32
Affordable Housing Policies
The City of Santa Fe has long approached the provision of affordable housing with an innovative
mix of policy, funding and regulation. Even during the recession, the city continued to provide
and expand housing choices for its residents, serving the whole spectrum of housing need, from
homeless to homeowner. In fact, several of the city’s nonprofit partners developed new
programs and service delivery systems in direct response the increasing levels of need and
corresponding decreasing levels of available funding.
The city’s primary affordable housing policies and programs are discussed on the following
pages.
Housing ordinance. The city has a housing ordinance (Chapter XXVI of the City Code) which
includes the following regulations:
Santa Fe Homes Program Ordinance, the city’s inclusionary zoning ordinance, which is
discussed in greater detail later in this section;
The Low Priced Dwelling Units Ordinance which defines the qualification requirements for
low priced dwellings that may qualify for incentives in various city codes (e.g., affordable
housing density bonus);
The Affordable Housing Trust Fund Ordinance, set up as a repository for development fees
generated through the affordable housing program and ensures expenditure of these funds
is in accordance with the NM Affordable Housing Act; and
The Fair Housing Ordinance, which prohibits discrimination in housing based upon race,
color, religion, gender, sexual orientation, national origin, familial status, or disability.
Inclusionary zoning. One of the city’s most effective tools for spurring the provision of
affordable housing is through its inclusionary zoning programs. The first city program, the
Housing Opportunity Program (HOP), was implemented in the late 1990s. The program required
that all new development trigger an affordability requirement so that either 11 percent or 16
percent of units built were sold to qualified homebuyers at a predetermined price point (reliant
on homebuyer’s family size, HUD income limits, etc.). HOP homebuyers on average earn 65
percent of area median income and no more than 80 percent of area median income.
In the mid-2000s, the city initiated a more stringent inclusionary zoning program, the Santa Fe
Homes Program (SFHP) which mandates a 20 percent requirement for any application including
annexation, rezoning, subdivision plat and increase in density. Three income tiers are served:
50-65 percent AMI; 65-80 percent AMI; and 80-100 percent AMI, with 10 percent of the total
units serving each tier.
In 2010, in response to the economic slowdown, in particular the building and construction
industries, the city decreased the requirement such that 20 percent of new homes proposed for
construction are sold to income-qualified homebuyers. As with its other housing programs, the
city relies on its nonprofit partners, Homewise and the Housing Trust to train, counsel and
CITY OF SANTA FE HOUSING PLAN
LAND USE AND POLICY REVIEW, PAGE 33
qualify the buyers. Additionally, homebuyers are often subsidized with downpayment assistance
funded through CDBG, the state’s Mortgage Finance Authority, or other sources accessed by the
housing counseling agencies.
To date, approximately 100 HOP, 27 SFHP and 397 Low-Priced Dwelling Units have been
created.
Tierra Contenta. Consistent with past years, production of affordably-priced homeownership
units in Santa Fe occurs primarily in Tierra Contenta, a master-planned community of 1,400
acres. On an annual basis, 30 percent of all residential construction permitted in Santa Fe occurs
in Tierra Contenta. The Tierra Contenta Corporation, a nonprofit development entity, provides
builder ready tracts of land to both nonprofit and for profit builders. Nearly 2,500 homes have
been built since 1995, 45 percent of which are affordable.
Conclusion: Barriers to Affordable Development
The land use policy review did not reveal any severe barriers to affordable development in the
land use code, General Plan or housing policies. However the analysis did reveal several things
the City of Santa Fe could improve to help foster affordable development:
Increase the current low density limits for multifamily residential construction in high
density residential zones. If that is not possible, provide height bonus as an affordable
development incentive;
Add an intent to comply with state and federal fair housing laws and regulations in the
general code purpose statement or in the residential district purpose statement;
Provide exemptions for affordable housing to nonconforming structure requirements; and
Provide assistance to homeowners living in historic district with necessary repairs either
through existing homeowner programs or through a new program designed specifically for
such a purpose.
CITY OF SANTA FE HOUSING PLAN
LAND USE AND POLICY REVIEW, PAGE 34
Housing Development Feasibility Analysis
Analysis of housing development and affordability is predicated by the payment capacity of
potential low- and moderate-income buyers or renters. Figure 18 demonstrates the monthly
housing payment capacity and sales price affordability at varying area median income levels.
Figure 18.
AMI and Affordability in Santa Fe County - 2016
% of AMI
2016 AMI
Affordable
Rent/mo*
Affordable
Sales Price
HH 1 pers
HH 2 pers
HH 3 pers
<50%
$ 22,650
$ 25,900
$ 29,100
$ 388
$ 118,500
60%
$ 29,400
$ 33,650
$ 37,850
$ 917
$ 154,000
80%
$ 36,200
$ 41,400
$ 46,550
$ 1,035
$ 189,750
100%
$ 45,250
$ 51,750
$ 58,200
$ 1,422
$ 237,000
*includes utilities
Single Family Housing Development. Affordability as a function of area median income is the
starting point for analysis of housing development scenarios. The following depicts an analysis of
varying densities on one acre of land. The home is assumed to be a 1,000 square foot home and
affordability levels are based on the AMI for a 3-person family. The zoning categories were chosen
to reflect the range in which the majority of single family neighborhoods are located in Santa Fe.
The scenario illustrates that homebuyer subsidy is needed at all income levels and in every
development scenario for those homebuyers at 80% AMI and below. Only the homebuyers at 100%
AMI and above can afford the sales price of homes in the medium and higher density subdivisions.
No buyers can afford homes in 1DU/acre zoning. It is also important to remember that there
remain significant gaps between what people should afford and what they are willing to pay. Also,
the capacity to pay rent and mortgage payments is limited by debt, interest rates and credit history.
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 35
Figure 19.
Single Family Development Feasibility Analysis
ITEM
Low
Density
Medium
Density
Maximum
Density
Max Density +
Land
Donation
Max Density +
Land& Cash
Donation
# of Units =
1 DU
# of Units =
4 DU
# of Units =
8 DU
# of Units =
8 DU
# of Units =
8 DU
Construction
Land (per acre)
$120,000
$120,000
$120,000
Donation
Donation
Infrastructure
$25,000
$85,000
$170,000
$170,000
$170,000
Permits
$200
$800
$1,400
$1,400
$1,400
Cost to Build @
$125sf
$125,000
$500,000
$1,000,000
$1,000,000
$1,000,000
Professional Services
$5,000
$20,000
$35,000
$35,000
$35,000
Construction Financing
$4,250
$17,000
$29,750
$29,750
$29,750
Other Soft Costs and
Contigency
$7,700
$30,800
$53,900
$53,900
$53,900
Builder Profit and
Overhead 10%
$15,150
$53,160
$90,805
$89,505
$77,005
TOTAL Development Cost
$302,300
$826,760
$1,500,855
$1,379,555
$1,367,055
Cost Per Unit
$302,300
$206,690
$214,408
$197,079
$195,294
100% AMI Affordability
$222,000
$222,000
$222,000
$222,000
$222,000
100% AMI Subsidy Gap
($80,300)
$15,310
$7,592
$24,921
$26,706
80% AMI Affordability
$160,000
$160,000
$160,000
$160,000
$160,000
80% AMI Subsidy Gap
($142,300)
($46,690)
($54,408)
($37,079)
($35,294)
50% AMI Affordability
$80,000
$80,000
$80,000
$80,000
$80,000
50% AMI Subsidy Gap
($222,300)
($126,690)
($134,408)
($117,079)
($115,294)
Multi-Family Housing Development. Clearly affordable multifamily development is one
of the greatest needs for low- and very-low renter households in Santa Fe. The following
scenario depicts an affordable rental development scenario at three different density levels.
One includes a municipal donation of land and cash resources.
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 36
Figure 20.
Multi-Family Development Feasibility Analysis
ITEM
Low Density
Medium Density
High Density
High Density +
Donations
# of Units = 4
# of Units = 8
# of Units = 14
# of Units = 14
Construction
Land Cost (per acre)
$200,000
$200,000
$200,000
Donation
Site Prep/Infrastructure
$100,000
$160,000
$300,000
Donation
Permits
$2,000
$4,000
$7,000
$7,000
Exactions
$20,000
$40,000
$70,000
$70,000
Cost to Build
$500,000
$1,000,000
$1,400,000
$1,750,000
Misc. Construction Costs
$12,000
$24,000
$42,000
$42,000
Professional Services/Fees
$4,500
$9,000
$12,000
$12,000
Construction Financing
$2,500
$5,000
$8,750
$8,750
Soft Costs
$1,000
$2,000
$3,500
$3,500
Syndication
$750
$1,500
$2,675
$2,675
Reserves
$3,000
$6,000
$12,000
$12,000
Developer’s/Sponsor Cost
$15,000
$30,000
$52,500
$52,500
TOTAL Development Cost
$860,750
$1,481,500
$2,110,425
$1,960,425
Cost Per Unit
$215,188
$185,188
$150,745
$140,030
Rent (based on carrying cost)*
$967
$833
$678
$630
100% AMI Affordable Rent**
$1,422
$1,422
$1,422
$1,422
Affordability Gap
$455
$589
$744
$792
80% AMI Affordable Rent**
$1,035
$1,035
$1,035
$1,035
Affordability Gap
$68
$202
$357
$405
60% AMI Affordable Rent**
$917
$917
$917
$917
Affordability Gap
($50)
$84
$239
$287
30% AMI Affordability**
$388
$388
$388
$388
Affordability Gap
($579)
($445)
($290)
($242)
*4.5% interest amortized for 40 years
**2-person household
While this scenario indicates that higher densities reduce per unit carrying cost which could be
translated into lower rents, it is highly unlikely in a rental market with 3% vacancy that a property
owner wouldn’t charge the highest rent that the market will bear. With this in mind, and if rents are
adjusted to reflect a weighted average rental rate for 2-bedroom units in Santa Fe
8
, the actual
affordability scenario reveals that only those renters at 80%AMI and above are reliably able to afford
market rents. This scenario also removes the donation option, as the donation would only be made
with the requirement that affordability is maximized.
8
September 2015 Albuquerque/Santa Fe Multifamily Market Survey, CBRE
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 37
Figure 21.
Multi-Family Development Feasibility Analysis with Market Rents
Low Density
# of Units = 4
Medium
Density
# of Units = 8
High Density
# of Units =
14
Cost Per Unit
$215,188
$185,188
$150,745
Rent (based on carrying cost)*
$967
$949
$949
100% AMI Affordable Rent**
$1,422
$1,422
$1,422
Affordability Gap
$455
$589
$744
80% AMI Affordable Rent**
$1,035
$1,035
$1,035
Affordability Gap
$68
$202
$357
60% AMI Affordable Rent**
$917
$917
$917
Affordability Gap
($50)
($32)
($32)
30% AMI Affordability**
$388
$388
$388
Affordability Gap
($579)
($445)
($290)
Analysis of Current Zoning to Support Affordable Housing Development. When the City’s
current zoning map is analyzed, the amount of land that is zoned at densities to support affordable
housing is simply not adequate. In the City of Santa Fe, approximately 27,450 acres are residentially
zoned, both undeveloped and developed. Of this total, 78% is zoned at densities of 5 DU/acre and
below. As illustrated in the previous discussion, this zoning density cannot support affordable
housing without substantial subsidy or reduction in market rate costs. Sixteen percent (16%) of
residential zoning can support affordable homeownership, while only 5% of residential zoning can
support affordable multi-family zoning. An additional 1% has the potential to support affordable
housing, however, affordability is only likely in the Mobile Home Park zoning.
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 38
Figure 21.
Analysis of City Zoning Districts
Given the high demand for rental units and the need for redevelopment that also realizes the City’s
economic development goals, a consultant was hired in 2014 to evaluate the developable potential of
City-owned sites. The assumption is that without a substantial subsidy, most likely in the form of
Low Income Housing Tax Credits, developing rental housing in Santa Fe that is affordable to renters
earning less than 80% of AMI is not feasible. Further, LIHTC funds provide an opportunity to
leverage City resources on a 1:10 ratio and in turn, the City can require that a portion of the units
provided in the project are set aside for very-low income renters earning 30% and below and/or
transitioning out of homelessness.
SITES ANALYSIS
The Santa Fe Arts + Creativity Feasibility Report
9
looked at 10 sites, both city-owned and privately
held, identified through interviews with city staff, real estate professionals, and other local
9
Prepared for the City of Santa Fe by Creative Santa Fe and New Mexico Inter-Faith Housing, February 2015
Zoning Category
# of acres
% of Total
RR Rural Residential
107.73
R1, (PUD) Single- Family 1du/ac.
13640.87
R2, (DT), (PUD),(AC) Single - Family 2du/ac
1398.28
R3, (PUD) Single - Family 3du/ac
2055.73
R4 Single - Family 4du/ac
390.56
R5, (DT), (PUD), (AC), R6, (PUD) Single - Family 5-6du/ac
3674.85
RC5, RC5AC Compound 5du/ac
20.25
Total Residential Zoning @5DU or less
21,300
78%
R7, (I), (PUD), R8 Single - Family 7-8du/ac
346.58
RC8, RC8AC Compound 8du/ac
202.44
R10, (PUD) Multiple - Family 10du/ac
107.31
PRC, PRRC Planned Community
3647.73
Total Residential Zoning @7DU or more
4,300
16%
R21, (PUD) Multiple - Family 21du/ac
440.52
R21, (PUD) Multiple - Family 21du/ac
872.82
R29, (PUD),(AC) Multiple - Family 29du/ac
192.58
Total Multi-family Zoning
1500
5%
RAC Residential Arts & Crafts
39.49
MHP Mobile Home Park
316.40
Other Residential
350
1%
TOTAL RESIDENTIAL ACRES BY ZONING CATEGORY*
27,450
*These values are rounded to the nearest 50
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 39
affordable housing organizations. Because the LIHTC Qualified Allocation Plan (QAP) heavily favors
projects with municipal contribution, as allowed pursuant to the NM Affordable Housing Act, this
Plan focuses on the sites owned or under a lease agreement by the City. Criteria to include the site in
the analysis hinged on size, location (where affordable housing is needed but not overly
concentrated, proximity to transit corridors, retail/commercial areas, and other amenities), access to
infrastructure, existing zoning, and ease of site control.
The sites that were considered included:
• The City’s Public Works Yard, located on Siler Road - This site is part of 20+ acres of city land
that includes current public safety and public works facilities and is the site of the former waste
treatment plant. This area is desirable because of the Siler Road street frontage, and the
potential for this site to garner extra points for LIHTC award because it may require some
environmental remediation. Also it is located in a Qualified Census Tract (QCT) and currently
lacks any major affordable housing facilities. It is zoned I2 which requires rezoning before it can
be eligible for a LIHTC award. As part of the proposal, the City plans to donate approximately 5
acres of this land towards the Arts+Creativity Center, which would permit up to 70 units, with
approval of a proposed zone change to C-2.
• Siringo Road City Complex – This site currently houses city warehouse and office facilities but is
generally considered to be functionally obsolete for the City’s purposes. The size of the site
means that an apartment project would be denser and most likely have to go up in height to
accommodate the number of desirable units which may result in higher costs due to the
structural demands of taller buildings. Another concern was that Siringo is not a major public
transit corridor and surrounding neighborhoods have been highly resistant to apartment
proposals. The R-5 zoning of this site allows 23 units on approximately 4.46 acres.
• Santa Fe University of Art and Design (SFUAD), located off St. Michael’s Drive – Many parcels on
this site are owned by the City along with other institutions (State of NM and Santa Fe Public
Schools), with the majority of land leased to the University. Integrating housing into this area is
considered crucial for the City’s redevelopment efforts of St. Michael’s Drive, although its close
proximity to the subsidized housing in the Hopewell-Mann neighborhood may lead to a
substantial concentration of affordable housing in this neighborhood. The R-5 zoning of this site
allows 39 units on 7.9 acres; or 113 units on 22.7 acres. Depending on the acreage in question, it
is possible that a zone change to a higher density would be needed to achieve the minimum 60
units for a potential LIHTC project to be competitive.
• Guadalupe/Baca Street Railyards – These sites are desirable given their walkability, proximity to
creative spaces, local businesses, public transit, trails, Railrunner Train stops and beneficial
Business Capital District (BCD) zoning. However, the developable sites are small and site control
is administered by the Santa Fe Railyard Corporation through land leases which limit the
number of units. Donating the land at less than market value would put the City in a position of
not generating revenue through its current lease agreements.
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 40
• Tino Griego/La Farge Library, located between Siringo and St Michael’s Drive – Centrally located
near both public schools and the SFUAD, the site offers the opportunity for adaptive reuse of
existing facilities as well as supporting the City’s goals for redeveloping St. Michael’s. However,
while the City owns the buildings, the land is leased from the Santa Fe Public Schools, as well as
being bisected by a major arroyo. Land ownership could be resolved through a land swap with
the school district. The existing buildings may have issues of asbestos and lead-based paint
which would be cost prohibitive to remediate. The library is situated on a shared parcel with a
school totaling 25.42 acres and is all R-5 zoned. It is therefore currently impossible to calculate
the dwelling units per acre until surveyed for a potential lot split, should a land swap occur. It
could, however be estimated that approximately one-third of the acreage of this parcel would
yield 42 units.
Figure 22.
SUMMARY Sites Analysis
Site
Size
(acres)
Zoning Site Control Location Considerations
Siler 5 I2 City
Meets
development and
redevelopment
priorities
Site with most
favorable
combination of
attributes
Siringo
Complex
2.5 R5 City
Lacks direct
access to transit
Size may be limiting;
also neighborhood
opposition a
possible factor
SFUAD 4 R5
City, Other
Institutions
Meets
development and
redevelopment
priorities
Potential to overly
concentrate
affordable units in
area
Railyards 1 BCD
City, through
Railyard Corp
Meets
development and
redevelopment
priorities
Lease agreement
would be expensive
and limiting
Tino Griego/
La Farge
Library
3 R5
SFPS; City
lease
Meets
development and
redevelopment
priorities
Site control is
complicated; site
has terrain issues
and buildings are
substandard
Arts + Creativity Center. Based on the sites analysis included in this document, the City is in the
process of donating a portion of the Siler Road site to the "Arts + Creativity Center" (A+CC). A+CC is
envisioned as a facility that offers both affordable rental housing, as well as commercial and retail
space for creative businesses. Integral to the success of this project will be the award of Low Income
Housing Tax Credits (LIHTC), made more likely if the City donates the development site. Securing tax
credits has the potential to leverage up to $13 million of development financing into the community.
Resolution No. 2014-13 directed City staff to work with Creative Santa Fe to identify building sites
appropriate for developing the project. Once a site was identified, (a portion of the City-owned Siler
Road complex), Resolution 2015-24 was adopted which clarified the process for staff to determine
appropriate criteria for making a land donation, as well as developing a legal mechanism in
compliance with the New Mexico Affordable Housing Act or the Local Economic Development Act.
On July 29, 2015, the Governing Body approved donating a parcel of land for the project during
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 41
Executive Session, contingent on the developer receiving funding through the LIHTC program.
Resolution 2016-30 further clarified the intent of the Governing Body to support the New Mexico
Interfaith Housing Corporation’s application for LIHTC funds, both through the donation of a project
site and associated development fee waivers. The objective is for the City to donate 10% of the
project costs in order to make the application competitive.
In October of 2016, the Planning Commission voted
to rezone this parcel to C-2 from its current
industrial zoning classification to allow for the development of the A+CC project on the basis
that affordable rental housing is a demonstrated need in Santa Fe and that the project is directly
relevant to the City’s economic development priorities. Furthermore, because the City’s
donation is contingent on securing the tax credits, if the project is not successful, the C-2 zoning
enhances the value of the City’s asset and creates more flexibility in future uses of the parcel.
The Governing Body supported the Planning Commission’s action by approving Resolution
2016-94 at its December 14
th
City Council meeting which amends the City’s Future Land Use
Map to allow for the project’s rezoning. Contingent to the Resolution, the Council also adopted
Ordinance 2016-44 which legally amends the City’s zoning map.
Soleras Station. Another LIHTC project supported by the Governing Body is Soleras Station, a
proposed 87-unit complex developed by the Housing Trust. In addition to providing much-needed
affordable housing for low income renters, Soleras Station will be a pilot project for the WELL Build
Institute, featuring an emphasis on healthy living environments as well as performing to a LEED
certified green building standard.
Located in Las Soleras, a planned community in the southwest sector of Santa Fe, this project
was initiated through an alternate compliance to the Santa Fe Homes Program. Pulte Homes
proposed to purchase and donate a parcel of land zoned for multi-family housing in lieu of
providing affordable homes in its two-phase development. Additionally, the developer agreed to
pay for predevelopment costs associated with submitting an application for LIHTC funding. The
application was not funded in the 2016 round but will be submitted again in 2017. If funding is
not secured, the City will renegotiate the terms of Pulte’s alternate compliance.
CITY OF SANTA FE HOUSING PLAN HOUSING FEASIBILITY ANALYSIS, PAGE 42
Housing Needs Analysis
Updates from Section II of the 2013 HNA
This section discusses housing affordability in the Santa Fe market for both ownership and rental
properties. A gaps analysis is also included to identify any possible mismatches in housing supply
and demand. Housing market data for this section are primarily from the Santa Fe Association of
Realtors MLS Statistics (MLS), the American Community Survey (ACS) and the Apartment
Association of New Mexico (Apartment Association).
Ownership market. According to the 2014 ACS, the median home value in Santa Fe was $269,900,
similar to Santa Fe County ($269,300) but above the state median of $158,400.
Figure 23.
Median
Home
Value, City
of Santa Fe,
2000 to
2014
Source: 2000
Census, 2011 ACS
and 2014 ACS.
There have been some affordability improvements in Santa Fe’s ownership market since 2011as
residents benefit from increasing incomes and stable home prices.
As displayed in Figure 23, sale prices of single family homes experienced steep increases in the early
2000s followed by steady declines between 2007 and 2012, excluding a few quarter spikes. Data for
2013 and 2014 (along with the first two quarters of 2015) suggest that home prices are leveling out
or even rising slightly.
A similar sale price trend is evident in condo sales in Santa Fe. Figure 24 displays the quarterly
median sale price of condos from 2000 through the second quarter of 2015. Since a decline in 2008
and 2009, condo prices seem to have stabilized in recent years.
2000 2011 2014
Change
2000-2014
Change
2011-201
City of Santa Fe
$182,800 $295,000 $269,900 48% -9%
Santa Fe County
$189,400 $292,300 $269,300 42% -8%
New Mexico
$108,100 $159,000 $158,400 47% 0%
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ANALYSIS, PAGE 42
Figure 24.
Median Sale Price of Single Family Homes, City of Santa Fe, by Quarter 2000 through Q2 2015
Note: Figures for 2006-2015 include sales in the Airport area; previous years do not.
This is an update to Figure II-2 in the 2013 HNA.
Source: 2013 HNA and Santa Fe Association of Realtors.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1st Quarter $205,000 $214,500 $216,432 $242,400 $315,950 $365,000 $308,000 $354,125 $301,500 $308,000 $464,000 $282,000 $290,000 $247,975 $285,000 $261,000
2nd Quarter $212,250 $209,000 $268,119 $269,000 $343,000 $393,440 $352,000 $403,000 $344,000 $307,500 $288,000 $309,000 $287,500 $299,000 $270,000 $299,000
3rd Quarter $195,350 $221,000 $241,250 $290,500 $341,950 $364,000 $349,500 $376,950 $427,250 $287,000 $318,000 $276,250 $265,000 $345,000 $322,500
4th Quarter $197,000 $241,000 $272,000 $280,000 $375,500 $470,000 $375,000 $350,000 $350,000 $329,500 $297,000 $310,250 $280,000 $278,550 $310,500
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ANALYSIS, PAGE 43
Figure 25.
Median Sale Price of Condominiums, City of Santa Fe, 2000 through Q2 2015
Note: Figures for 2006-2015 include sales in the Airport area; previous years do not.
This is an update to Figure II-3 in the 2013 HNA.
Source: 2013 HNA and Santa Fe Association of Realtors.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1st Quarter $199,375 $212,450 $159,950 $250,000 $258,000 $237,500 $267,500 $310,000 $229,975 $248,250 $286,500 $285,750 $190,500 $212,500 $215,000 $212,000
2nd Quarter $171,500 $199,000 $174,650 $177,000 $201,250 $225,000 $261,100 $303,802 $260,000 $250,000 $238,500 $235,000 $240,000 $215,000 $217,000 $219,000
3rd Quarter $212,000 $181,900 $184,000 $251,500 $185,000 $214,000 $295,000 $364,000 $282,000 $220,500 $260,000 $268,000 $270,000 $250,000 $209,500
4th Quarter $221,750 $193,000 $200,000 $205,000 $213,000 $233,137 $282,000 $310,605 $307,500 $250,000 $225,000 $222,000 $262,000 $272,000 $273,950
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ANALYSIS, PAGE 44
Figure 26 compares median home values and sale prices with household incomes in 2000, 2011
and 2014. Between 2000 and 2011, residential affordability in the housing market in Santa Fe
declined as increases in home prices and values outpaced income gains. However, that trend was
reversed between 2011 and 2014 as sale prices and values declined at a higher rate than
incomes. Affordability increased most notably for renters who may wish to buy as they
experienced the highest income gains, gaining purchasing power in the for-sale market.
Figure 26.
Residential Affordability, City of Santa Fe, 2000 to 2014
Note: This is an update to Figure II-6 in the 2013 HNA.
Source: 2013 HNA and 2014 ACS.
Foreclosure rate. As of February 2016, RealtyTrac estimates that Santa Fe County has a
foreclosure rate of 1 in every 1,515 housing units. This is lower than neighboring counties
Sandoval (1 in 493) and Bernalillo (1 in 902) but higher than Rio Arriba (1 in 6,498) and San
Miguel (1 in 7,756). The State of New Mexico overall has a foreclosure rate of 1 in 1,386 housing
units.
Rental market.
Between 2000 and 2011, rental affordability in Santa Fe declined as
substantially as rents increased. Rental costs over that period did not fluctuate as much as home
prices but renter incomes were harder hit by the economic recession than homeowner
incomes—the net result is a more significant decline in rental affordability. In recent years,
however, renter incomes have been on the rise, outpacing rising rents and resulting in net
affordability gains for Santa Fe renters. Even so, many renters still struggle to find affordable
units—the gaps analysis reveals a persistent shortage 2,435 rental units priced below $625 per
month.
Median Home Value $182,800
$295,000 $269,900 61% -9%
Median Price of Single Family Homes
1st Quarter $205,000 $282,000 $285,000 38% 1%
2nd Quarter $212,250 $309,000 $270,000 46% -13%
3rd Quarter $195,350 $276,250 $322,500 41% 17%
4th Quarter $197,000 $310,250 $310,500 57% 0%
Median Price of Condominiums
1st Quarter $199,375 $285,750 $215,000 43% -25%
2nd Quarter $171,500 $235,000 $217,000 37% -8%
3rd Quarter $212,000 $268,000 $209,500 26% -22%
4th Quarter $221,750 $222,000 $273,950 0% 23%
Median Household Income
Owners $52,634 $64,690 $62,727 23% -3%
Renters $28,177 $29,291 $34,945 4% 19%
2014
Percent
Change
2011-2014
Percent
Change
2000-2011
2000
2011
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 45
Trends in rents. As shown in Figure 27, median contract rent (that is, rent excluding utilities)
increased by 8 percent between 2011 and 2014; however, median income for renters increased
by 19 percent over the same period.
Figure 27.
Median Contract Rent, City of Santa Fe, 2000 through 2014
Note: This is an update to Figure II-7 in the 2013 HNA.
Source: 2013 HNA and 2014 ACS.
Figure 28 displays the average rent by unit type in Santa Fe from 2004 to 2015. Average rents in
2015 for all sizes increased substantially over the past year, surpassing the peak rent levels of
2006 and 2007. These trends are consistent with increased rental demand (low rental vacancy
rates and declining homeownership) and increasing renter incomes.
Between 2004 and 2015, average rent for 2-bedroom/1-bath units increased the most (24%).
Rent for 2-bedroom/2-bath units increased by 19 percent and rent for 1-bedrooms and 3-
bedrooms increased by 20 percent between 2004 and 2015.
Figure 28.
Average Rent
by Unit Type,
City of Santa Fe,
2004 through 2014
Note:
This is an up
date to Figure
I
I-8 in the 2013 HNA.
Source:
2013 HNA and Apartment
Association of New
Mexico CBRE Apartment
Market Survey, May 2014
and September 2015
.
Affordability by AMI. Despite some gains in recent years, rental affordability remains a
challenge for the 47 percent of renters earning less than 50 percent of Area Median Income
City of Santa Fe $644 $800 $767 $804 $872 8% 35%
Santa Fe County $626 $771 $735 $809 $824 2% 32%
New Mexico $432 $531 $596 $618 $655 6% 52%
2011
2014
Percent
Change
2011-2014
Percent
Change
2000-2014
2000
2007
2010
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 46
(AMI). As shown in Figure 29, there is a shortage of rental units priced in that affordability range
(28% of units compared to 47% of renters.
Figure 29.
AMI Distribution of Rents, City of Santa Fe, 2011 and 2014
Note: Affordable rent for 2011 based on FY2011 HUD AMI of $67,800; affordable rent in 2014 based on FY2014 HUD AMI of $52,800.
*The FY 2014 Consolidated Appropriations Act changed the definition of extremely low-income to be the greater of 30/50ths (60 percent)
of the Section 8 very low-income limit or the poverty guideline as established by the Department of Health and Human Services (HHS),
provided that this amount is not greater than the Section 8 50% very low-income limit. Consequently, the 0-30% AMI and 30-50% AMI
income brackets in 2014 are not directly comparable to previous years.
This is an update to Figure ES-2 and Figure II-9 in the 2013 HNA.
Source: 2013 HNA, 2014 American Community Survey (ACS) and BBC Research & Consulting.
Vacancy rates. As displayed in Figure 30, between 2005 and 2007 the residential vacancy rate
in Santa Fe hovered around 3 percent. The vacancy rate was higher between 2008 and 2014
before dropping back to 2.5 percent in 2015. This trend indicates a tightening rental market in
recent years with 2015 marking a 10-year low in rental vacancies.
Figure 30.
Vacancy Rates, City of Santa
Fe, 2005 through 2014
Note:
This is an update to Figure I
I-11 in the 2013
HNA.
Source:
2013 HNA and Apartment Association of New
Mexico CBRE Ap
artment Market Survey, May
2014 and September 2015
The Apartment Association Market Survey reports a large spike in the vacancy rate in 2009
(17%) before dropping to 7 percent in 2010. Although there is not a clear cause of the vacancy
rate spike, it could be related to renters leaving Santa Fe in the wake of the economic downturn.
Another explanation could be second homeowners putting their vacation homes on the long-
term rental market.
Income as a
Percent of AMI
0-30% of AMI* $515
10% 34% $596 13% 32%
31-50% of AMI $859 31% 20% $816 15% 15%
51-60% of AMI $1,030 16% 7% $980 25% 8%
61-80% of AMI $1,374 24% 11% $1,306 23% 13%
81-100% of AMI $1,717 9% 8% $1,633 13% 7%
More than 100% of AMI $1,718+ 10% 19% $1,634+ 11% 25%
2014*
Max
Affordable
Rent
Distribution
of Rents
Distribution
of Renters
2011
Max
Affordable
Rent
Distribution
of Rents
Distribution
of Renters
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 47
Figure 31 displays vacancy rates by unit type in 2005, 2007, 2010, 2014 and 2015. In 2005 the
vacancy rate was highest for 3-bedroom units but in 2015 3-bedroom units have the lowest
vacancy rate (1.7%) indicating very high demand for these larger units. Two-bedroom/2 bath
units were also in high demand with a vacancy rate of 2.1 percent.
Figure 31.
Vacancy Rates by Unit
Type, City of Santa Fe,
2005 through 2014
Note:
This is an update to Figure I
I-12 in the
2013 HNA.
Source:
2013 HNA and Apartment Association of
New Mexico CBRE Apartment Market
Survey, May 2014
and September 2015.
Gaps analysis
The analysis in this section examines housing need across all income levels to identify
mismatches in supply and demand for all households in Santa Fe. It reports the results of a
modeling effort called a gaps analysis, which compares the demand for and supply of housing by
income level. Instead of estimating the type of housing each household in the city would prefer,
income is used as a proxy, as income is the most important factor in accessing housing.
Housing is “affordable” if no more than 30 percent of a household’s monthly income is needed
for rent, mortgage payments (including interest, taxes and insurance) and utilities. When the
proportion of household income needed to pay housing costs exceeds 30 percent, a household is
considered “cost burdened.”
The rental gaps analysis displayed in Figure 32 compares the number of renter households in
Santa Fe in 2014, their income levels, the maximum monthly housing payment they could afford,
and the number of units in the market that were affordable to them. The “Rental Gap” column
shows the difference between the number of renter households and the number of rental units
affordable to them. Negative numbers (in parentheses) indicate a shortage of units at the specific
income level; positive units indicate an excess of units. The rental gaps analysis shows the
following:
The greatest need in Santa Fe’s market is for rental units priced between $375 and $500 per
month, serving renters earning between $15,000 and $20,000 per year. In this income
range, there is a current shortage of 800 rental units, up from 715 in 2011.
The rental gap for households earning $20,000 to $25,000 also increased between 2011
and 2014—from 169 to 444. However, the cumulative rental gap, for all households earning
less than $25,000 declined from 3,074 in 2011 to 2,435 in 2014.
Overall 3.1%
3.1% 6.7% 5.2%
By Unit Type
1-bedroom 3.2% 3.7% 5.4% 5.3%
2-bed/1-bath 3.2% 0.0% 6.7% 5.0%
2-bed/2-bath 2.9% 7.5% 7.8% 4.5%
3-bedroom 4.5% 3.2% 6.3% 4.9%
2005
(2nd Quarter)
2007
(March)
2014
(May)
2010
(September)
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 48
The gaps model estimates that as many as 2,435 renters earning $25,000 and less cannot
find affordable units and, as such, are cost burdened. Most of these renters earn less than
$20,000.
Figure 32.
Rental Market Mismatch, City of Santa Fe, 2014
Note: This is an update to Figure II-13 in the 2013 HNA. Median gross rent—rent that includes utilities—was $963 in Santa Fe in 2014.
Source: BBC Research & Consulting.
An analysis of renters’ ability to buy relative to the value of Santa Fe homes during select years is
shown in Figure 33. The analysis assumes a 5 percent downpayment on a 30 year fixed rate
mortgage at market rate for each year. The model also estimates that 30 percent of the monthly
mortgage payment is used to pay for taxes and insurance (based on data from the Santa Fe
Assessor).
The median home value declined by 8.5 percent between 2011 and 2014, increasing ownership
affordability for city residents. In 2014 nearly one-quarter of renters could afford the median
value home, up from 14 percent in 2011. This increase in homeownership affordability is also a
result of renters’ incomes increasing since 2011.
Less than $5,000 566 4% 125$ 29 0% (537) (838)$
$5,000 to $9,999 483 4% 250$ 336 3% (147) (713)$
$10,000 to $14,999 742 6% 375$ 234 2% (508) (588)$
$15,000 to $19,999 1,218 9% 500$ 418 3% (800) (463)$
$20,000 to $24,999 1,353 11% 625$ 909 7% (444) (338)$
$25,000 to $34,999 2,069 16% 875$ 2,927 22% 858 (88)$
$35,000 to $49,999 2,108 16% 1,250$ 4,940 37% 2,832 287$
$50,000 to $74,999 1,744 14% 1,875$ 2,831 21% 1,087 912$
$75,000 or more 2,562 20% $ 1,875+ 796 6% (1,766)
Total/Low Income Gap
(<$25,000/year)
12,845 100% 13,421 100% (2,435)
Percent of AMI
0-30% of AMI 4,051 32% 596$ 1,795 13% (2,256) (367)$
31-50% of AMI 1,894 15% 816$ 1,952 15% 58 (147)$
51-60% of AMI 1,074 8% 980$ 3,345 25% 2,272 17$
61-80% of AMI 1,677 13% 1,306$ 3,110 23% 1,434 343$
81-100% of AMI 911 7% 1,633$ 1,769 13% 857 670$
101-120% of AMI 822 6% 1,959$ 883 7% 61 996$
More than 120% of AMI 2,417 19% $ 1,959+ 567 4% (1,851)
Total/Low Income Gap
(30% AMI and less)
100% 13,421 100% (2,256)
Difference between
Affordable Rent and
Median Gross Rent
Difference between
Affordable Rent and
Median Gross Rent
Maximum
Affordable Rent,
Including Utilities
Income Range
Renters*
Rental Units
Rental
Gap
Number
Percent
Number
Percent
Maximum
Affordable Rent,
Including Utilities
Renters*
Rental Units
Rental
Gap
Number
Percent
Number
Percent
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 49
Figure 33.
Renters’ Ability to Buy, City of Santa Fe, 1999/2000–2014
Note: This is an update to Figure ES-1 and Figure II-14 in the 2013 HNA.
Source: BBC Research & Consulting.
Figure 34 provides a more detailed gaps analysis for renters who may wish to purchase a home
in 2014. The analysis uses the same assumptions as Figure 32; income is presented by AMI. It
should be noted that the analysis is based on all home values, not just homes listed for sale; as
such it may underestimate the gap for renters looking to purchase a home.
Figure 34.
Ownership Gaps for Renters Who May Wish to Buy, City of Santa Fe, 2014
Source: BBC Research & Consulting.
Median Home Value
$182,800
292,600$ 330,000$ 301,000$ 295,000$ 269,900$
Income needed $45,857 $73,402 $82,784 $75,509 $74,004 $70,010
Approximate percent of
renters who can afford
34%
14%
12% 14% 14% 23%
1999/2000
2006
2007
2010
2011
2014
Percent of AMI
0-30% of AMI 4,051 32% 92,576
$
13%
-19% -19%
31-50% of AMI 1,894 15% 126,734$ 4% -11% -29%
51-60% of AMI 1,074 8% 152,081$ 2% -6% -36%
61-80% of AMI 1,677 13% 202,774$ 11% -2% -38%
81-100% of AMI 911 7% 253,468$ 16% 9% -29%
101-120% of AMI 822 6% 304,161$ 11% 5% -24%
121-150% of AMI 845 7% 380,202$ 12% 5% -18%
More than 150% of AMI 1,572 12% $ 380,202+ 31% 18% 0%
Max. Affordable
Home Price
Renters
Homes by
Value (%)
Ownership
Gap
Cumulative
Gap
Number
Percent
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 50
Existing and Projected Housing Needs
Existing housing needs are determined by poverty, cost-burden and special needs households.
Figure 35 summarizes poverty, housing problems and special needs populations in both Santa Fe
and the state overall. This table is intended to provide context for the analysis of existing and
projected housing needs that follows.
Figure 35.
Poverty, Housing Problems and Special Needs Populations, City of Santa Fe, 2014
Note: Homeless estimate assumes all county homeless are located in the City of Santa Fe. Substandard condition means incomplete kitchen
facilities and/or incomplete plumbing facilities.
Source: 2014 ACS, 2015 Point in Time Count and BBC Research & Consulting.
Affordability (or lack thereof) is a primary indicator of housing need but unit type/size is also an
important metric to consider, especially in efforts to address overcrowded households. Vacancy
rates are lowest for larger rental units (see Figure 30) indicating high demand for two and three-
plus bedroom units. Six hundred renter households in the city are large households (five or more
residents) but there are only 588 rental units in the city that have four or more bedrooms.
Rehabilitation. Another measure of housing need is need for substantial rehabilitation. While
the substandard condition measure in the previous figure may capture some rehabilitation
needs, it may exclude other units that do have functional kitchens and plumbing but are
otherwise in a state of substantial disrepair. Fourteen single family substantial, emergency, and
energy-efficiency rehab projects were funded with HUD (CDBG) and City (Affordable Housing
Trust) funds in 2015 for homeowners. Twelve of these were below 60 percent AMI and two
below 80 percent AMI. According to service providers administering repairs, however, the need
is much greater. Santa Fe Habitat for Humanity alone reported that thirty households requested
assistance in 2015. Close to one-half of those households qualified to receive assistance. Those
who did not qualify were due to a lack of homeowners’ insurance which is required of a non-
profit utilizing volunteers for repairs. The second obstacle is income, which has put some
applicants over the threshold for LMI.
Part of the City’s method of determining substantial rehabilitation is if more than 50 percent of
the existing structure is being modified, which can include, but not be limited to a new roof,
expansion of the home footprint or substandard living conditions. HUD’s provides a broader
Number Percent Number Percent
Residents living in poverty 11,938 17% 436,153 21%
Cost-burdened households 11,313 37% 232,697 32%
Renters 6,115 50% 115,284 51%
Owners 5,198 29%
117,413 23%
People who are homeless 323 0.5%
2,629 0.1%
People with a disability 10,359
15% 301,515 15%
Seniors (aged 65 or older) 439 20% 318,086 15%
Female-headed households with children 1,823 6% 59,400 8%
Overcrowded households 1,384
4% 27509 4%
Substandard condition housing units 439 1% 17131 2%
City of Santa Fe
New Mexico
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 51
definition to rehabilitation of a unit in substandard condition to a “decent, safe, and sanitary
level” and “units are in substandard condition when, while they may be structurally sound, they
do not provide safe and adequate shelter, and in their present condition endanger the health,
safety, or well-being of occupants” (24 CFR 235.1206). Of the city’s 1,238 residential building
permits issued in 2015 it is known that six of the single-family residential units being
rehabilitated for homeowners below 60 percent AMI met the definition of substandard housing
and received substantial rehabilitation.
Existing and projected needs summary. Figure 36 (on the following page) displays existing
and projected housing needs for the city. The needs analysis relies primarily on data from 2014
(the most recent available); as such the needs table is labeled as 2014 but does reflect a best
estimate of current need.
Existing needs are categorized in two ways:
Figure 36 (on the following page) displays existing and projected housing needs for the city.
Existing needs are categorized in two ways:
1. Housing problems, which are based on cost burden, overcrowding, substandard housing
conditions and rehabilitation needs of the population overall; and
2. Housing need of special populations, which are based on the incidence of housing
problems and/or poverty among special needs groups.
Data are not available on needs of the recently annexed portion of the city. As such, the existing
needs including the annex assume that the needs of the recently annexed portion of the city
mirror the needs identified within the historic city boundary. It is important to note that the
needs are not additive as a single household may appear in more than one category.
Five-year projections apply a compound annual growth rate of 0.61 percent to current housing
needs (including annexed area) to project housing needs in five years. That growth rate is based
on the non-annexed household growth between 2000 and 2014 in the City of Santa Fe.
CITY OF SANTA FE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE, PAGE 52
Figure 36.
Existing and Projected Housing Needs, City of Santa Fe, 2014
Note: Needs are not additive as a single household may appear in more than one category. Five-year projections apply the compound annual growth of households between 2000 and 2014 (0.61%) to current housing
needs. "Housing problems" include incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
This figure did not appear in the 2013 HNA.
Source: 2014 ACS, 2008-2012 Comprehensive Housing Affordability Strategy (CHAS) data, 2009-2013 Santa Fe Consolidated Plan, 2015 Pont in Time County and BBC Research & Consulting
Household Type
Housing Need Description
Housing Problems
Total cost-burdened 11,313 13,326
13,735
Households spending 30% or more of household income on housing costs
Renters
6,115 7,203 7,424
Renters spending 30% or more of household income on housing costs
Owners
5,198
6,123 6,311
Owners spending 30% or more of household income on housing costs
Total overcrowded 1,384 1,630 1,680
1.01 or more persons per room
Substandard / Needing rehabilitation 439 517
533
Incomplete kitchen/plumbing facilities
Renter and Owner Supply Gaps by AMI
0-30% AMI rental market gap
2,256 2,657 2,739
Renter gap identifed in gaps analysis (Figure XX)
31-50% AMI ownership market gap
87 102
105
Applies ownership gap percent (Figure 23) to annual sales (800 in Q3 2014-Q2 2015)
51-80% AMI ownership market gap 51 60
62 Applies ownership gap percent (Figure 23) to annual sales (800 in Q3 2014-Q2 2015)
Households with special needs
Households containing persons with a disability
3,484 4,104
4,230
Households containing a person with a disability and have one or more housing problems
Hearing or vision impairment 1,655 1,950
2,009
Hearing or vision impairment and one or more housing problems
Ambulatory limitation 1,710 2,014
2,076
Ambulatory limitation and one or more housing problems
Cognitive limitation
1,465 1,726 1,779
Cognitive limitation and one or more housing problems
Self-care or independent living limitation
1,440 1,696 1,748 Self-care or independent living limitation and one or more housing problems
Elderly Households
2,074 2,443 2,518
Elderly households (with a least one person 62 years or older) with cost burden greater than 30%
Large families 245 289
297
Large family households with cost burden greater than 30%
Female headed households with children 423 498
513
Female headed households with children and with household income below poverty level
Homeless 323 380
392 Homeless individuals
Limited English proficiency households 323
380 392
Limited English proficiency households with household income below poverty level
At risk of homelessness 5,371 6,327 6,521
Households spending 50% or more of household income on housing costs
Existing Housing Needs
Housing
Needs in 5
Years
Excluding
annex
Including
annex
CITY OF SANTA FE AFFORDABLE HOUSING PLAN HOUSING NEEDS ASSESSMENT UPDATE PAGE 53
Goals, Policies and Quantifiable Objectives
Having a roof over one’s head is one of our essential needs as human beings, as important eating,
sleeping, and receiving medical care. Yet, too often, the poor, the disabled, the elderly and even many
in the workforce are not able to afford a house that meets their needs. A lack of high quality housing
directly affects one’s ability to build wealth, participate in civic activities, enjoy leisure time, and most
of all, to have a decent and safe place to live. The overall health and vitality of a community suffers
directly when its residents aren’t housed adequately.
In Santa Fe, as in all communities, opportunities for affordable housing become most limited when
the housing market does not offer a full spectrum of housing choices, programs and services. If
options aren’t available in any particular category, then some residents may get “stuck” and are
unable to move into a different housing situation as their needs or financial resources change. In turn,
once they are unable to move, the next person needing the type of housing currently occupied is not
able to move.
It is important to note that not only are
opportunities for “moving up” the spectrum
important (renters buying a home or current
homeowners moving into a larger home) but that
some people, such as seniors, people with special
needs or those facing financial hardship, will
choose to move “down” into smaller homes or
rental homes with associated amenities (as
represented by the light arrows). Other residents
will move down because they lose their current
housing, particularly if they don’t have necessary
support services.
In Santa Fe, lack of affordable housing is
compounded by the fact that as a tourist
destination, the city has attracted people from all
over the world to live here, driving up the value of
real estate beyond the ability of many locals to
afford housing. As noted earlier, the recession
helped to level out skyrocketing appreciation,
which has made homeownership more affordable
for those with moderate incomes. However, those
earning low incomes, mostly renters, are even
more hard-pressed to attain affordable housing. While renter incomes have increased since 2011, it is
unclear whether this is a result of rising wages for renters or an in-migration of higher income
renters which effectively have displaced some lower-income renters.
Fig. 37
Spectrum of Housing Need
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 54
Homeless
<30%AMI
Permanent Supported
Rental Housing <50%AMI
Subs. Renter
30-60%AMI
Subsidized Homebuyer 50-
120%AMI
Homeowner
30-80%AMI
The data analysis provided in Section1 of this report identifies the following top-level needs for
affordable housing in the City of Santa Fe:
Seventeen (17%) percent of Santa Fe’s residents live in poverty with 40% of school age children
living in poverty.
As many as 5,300 residents are extremely cost burdened, paying more than 50% of their incomes
for their housing costs, making them vulnerable to financial stresses and possibly homelessness.
The rental gaps analysis indicates shortage of 2,256 units affordable to households earning less
than 30 percent of AMI (see Figure 32 on page 49). This need can be met through subsidies to bring
the cost of existing units down or through housing production of affordable units. This current gap
reflects a decline from 3,074 in 2011.
Renters' ability to purchase has also improved over the past several years, though there remains a
need for down-payment assistance for renters moving into homeownership (see discussion of
ownership affordability on pages 42-45). Fewer than half of renters earning between 80 and 120
percent of AMI can afford the median value home in the city.
Over 400 homes are in substandard condition (incomplete kitchen/plumbing facilities) and are in
need of rehabilitation (see Figure 35 on page 51).
The needs identified above are likely to be met by a combination of efforts by non-profits, market
offerings and public investments by the City of Santa Fe. Figure 38 outlines the City of Santa Fe’s
proposed Production Plan for the next five years.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 55
Figure. 38
City of Santa Fe Housing Production Plan – Five Year Production Goals
Type of Housing Need
Existing and
Projected Need
Target Market
Intervention
Opportunities
Santa Fe
Five Year Production Goals
Responsible Entity(s)
Unit Size/
Bedrooms Tenure Income Level
Homeless
Existing Need:
323 households
(plus 100+ homeless
youth per night)
Various home
sizes and
bedrooms
Special Needs
Renters
0-30% AMI
Emergency Shelter with wrap
around services, follow up, and
access to PSH
Reserve 50 units in LIHTC
projects for people transitioning
out of homelessness; support
units for youth
Life Link
St Elizabeth’s Shelter
Youth Shelters
Salvation Army
City of Santa Fe
At risk of Homelessness
(50%> cost burden)
Existing Need (2015):
6,327 households
Projected Need
(2020): 6,521
households
Various home
sizes and
bedrooms
Renters/
Less than 80%
AMI
Tenant based rental assistance;
subsidy for construction of
PSH; refinancing, reverse
mortgages, foreclosure
prevention
Pay 1200 rents per year for
chronically homeless (CoC);
provide assistance to 400
renters, 150 assisted with
reverse mortgage; 20 provided
foreclosure assistance
Life Link
St Elizabeth’s Shelter
Housing Trust
City of Santa Fe
Very low income
renters
Existing Need (2015):
2,657 rentals
Projected Need
(2020): 2,739 rentals
Greatest need
is for 3-BR
units and 2-
BR/1-bath
units
Renters
Less than 30%
AMI
New construction of rental
units, preservation of existing
subsidized units
Construct 200 units; support
rehab of 120 HA units (RAD);
rehab existing complex
Santa Fe Civic Housing
Authority,
Nonprofit LIHTC developers
For-profit developers
Low- and Moderate-
income home purchase
Existing Need (2015):
162 homes
Projected Need
(2020): 167 homes
Greatest need
is for 3-BR
homes
Renters/
Owners
80-120% AMI
New construction, homebuyer
assistance
Construct 100 new homes;
Assist 1,000 home purchases
through homebuyer training,
counseling, downpayment
assistance
Homewise
Housing Trust
Habitat for Humanity
For-profit developers
Low-Mod-Income
homeowners, including
age-in-place
Existing Need (2015):
517 homes
Projected Need
(2020): 533 homes
Various home
sizes and
bedrooms
Owners
(focus on elderly)
Less than 120%
AMI
Home improvement loans,
rehab assistance, age-in-place,
energy efficiency
improvements, reverse
mortgages, foreclosure
prevention
100 assisted with home repair
grants (elderly); 400 assisted
with home
improvement/energy efficiency
loans; 150 assisted with reverse
mortgage; 20 provided
foreclosure assistance
Homewise
Housing Trust
Habitat for Humanity
Note: The needs identified above are likely to be met by a combination of efforts by non-profits, market offerings and public investments by the City of Santa Fe. The city’s production goals aim to address a portion of the need based on the city's
budget, capacity and goals identified in the city's most recent Consolidated Plan.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 56
The city’s current goals to address affordable housing needs identified in the city's most
recent Consolidated Plan and in the 2015-2016 CAPER aim to support over 200 households
per year, as shown in Figure 39.
Figure 39.
Affordable Housing Goals and Outcomes (Consolidated Plan)
Source: 2015-2016 City of Santa Fe CAPER.
If these goals are applied to the needs identified above, over the next five years the City of
Santa Fe would be able to assist 875 low income renters. The city would also support
increased homeownership opportunities with downpayment assistance loans for 150
current renters and would assist over 40 current homeowners with necessary repairs
through home improvement loans.
The following goals, quantifiable objectives and recommendations are thus organized to
meet the housing needs based on the spectrum discussed above and correlated with the
goals identified in the City’s Consolidated Plan. The analysis of demographic, economic and
housing data provides a basis for determining need by income level and housing type.
Five organizing principles are considered:
• Funding to Support Housing
• Capacity to Provide Housing
• Program Development
• Real Estate Development
• Regulatory Environment
Affordable Housing Goals
(ConPlan goals related to Increasing Affordable Housing Opportunities)
Reduced rate of households with cost burden and corresponding drop in
poverty rates for homeless and those in danger of becoming homeless
124
Households receiving rental
assistance
Inventory of rental units and vouchers expanded to meet increased demand
57
Rapid rehousing vouchers
31 Downpayment assistance loa
14
Home improvement loans
Total households served 226
Increased Homeownership opportunities and support for longterm
affordability and accessibility for current homeowners
Annual Affordable Housing
Outcomes
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 57
Funding to Support Housing Services
The biggest challenge for the City of Santa Fe over the next five years will be to continue to
address the increasing demands of housing needs with limited financial resources. Currently, the
City of Santa Fe’s model of service delivery is to pass through federal funds to sub-grantees and
to use local funds to support administrative contracts with service providers and to provide
direct subsidy to renters, homebuyers and homeowners. Specifically, the City uses its General
Fund, HUD funds (CDBG and Continuum of Care), and the Affordable Housing Trust Fund
(AHTF). The sub-grantees are then able to leverage additional programming and project funds,
including LIHTC, HOME, ESG, CDFI, as well as funds allocated through the state’s Mortgage
Finance Authority.
However, ongoing reductions in funding on all levels means that resources to support services
are not increasing and local service providers are grappling with limited capacity to meet
emerging needs. Over the last three years, the City’s general fund allocation for affordable
housing was reduced by 25%. Since the recession, revenues into the AHTF have been erratic,
with the balance not being adequate for annual allocations. While the City’s CDBG entitlement
has remained steady, at approximately $500,000 annually, there is always risk that it will also be
diminished through the federal budgeting process.
Therefore, the funding policy recommendation that spans all housing needs is for the City to
establish a permanent funding mechanism to support affordable housing that is not dependent
on local budgeting processes or federal programs. As the economy recovers, and the City sees an
uptick in its bonding capacity, there is an opportunity to provide a substantial amount of
capitalization for its local trust fund. The City of Albuquerque provides a nearby example of how
this type of bond can be implemented. Other potential sources of funding that are worth
examining include dedicating a portion of recurring public revenues, establishing a fee on
service transactions (building permits or applications) and/or a fee on real estate transfers. The
City may also consider the potential of Tax Increment Financing (TIF) Districts, Public
Improvement Districts (PID) and other governmental mechanisms for leveraging future revenue
from present day incentives.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 58
Figure. 40
Recommendations for Funding to Support Housing
Consolidated Plan
Housing Goal #1
Reduced rate of households with cost burden; drop in poverty rate;
reduced # of households who are homeless or in danger of
becoming homeless
Policy Recommendation(s)
a. Continue support for street outreach and other linkage services
for youth, veterans, those with disabilities, and families
experiencing homelessness.
b. Continue funding for human services, and children and youth
programs that focus on expanding educational, life skills, and job
training opportunities.
Funding Source(s)
Local funds – City of SF Children and Youth, Human Services and
Economic Development
MFA Funds - EHAP, Linkages, RAP
HUD funds – CDBG, Continuum of Care, HOPWA, Housing Choice
Consolidated Plan
Housing Goal #2
Expanded inventory of rental units and assistance for very low-
income renters
Policy Recommendation(s)
a. Identify and dedicate a funding stream to support a short-term,
rental assistance program based on Rapid Rehousing to stabilize
those in precarious housing situations.
b. Continue supporting the use of federal funds for tenant-based
and project-based rental assistance.
c. Identify a funding stream to support a landlord/tenant counseling
service that is free of charge, bi-lingual, and locally accessible.
Funding Source(s)
Local funds – City of SF Affordable Housing Trust Fund, City of SF
General Fund (Office of Affordable Housing), Human Services Grant,
and Economic Development Fund
MFA Funds – HOME, LIHTC, NM Housing Trust Fund
HUD (pass through) - Continuum of Care/Shelter Plus Care for rental
assistance
HUD – CDBG, Public Housing, RAD
Consolidated Plan
Housing Goal #3
Increased homeownership opportunities and support for long term
affordability and accessibility for current homeowners
Policy Recommendation(s)
a. Continue to provide financial support for foreclosure prevention
programs.
b. Continue allocating city-controlled resources for downpayment
assistance, energy efficiency improvements, and home repair.
c. Continue supporting administrative contracts with housing
providers for homebuyer/owner support services.
Funding Source(s)
Local Funds – City of SF Affordable Housing Trust Fund
MFA (via housing providers) – Mortgage$aver, Mortgage Booster,
Helping Hand, Energy$mart
HUD – CDBG (Foreclosure Assistance Project, Down Payment
Assistance, Home Repair Loans, Emergency Repair Grants)
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 59
Capacity to Provide Housing
The City’s philosophy is to help build the capacity of community-based service providers, rather
than to increase the size of its bureaucracy. This has been achieved by providing local funding to
support administrative contracts in all areas of nonprofit services – affordable housing, youth
programs, human services and economic development. In turn, the provider can rely on City
funds to leverage additional private and governmental resources. This further enables the
provider to focus their efforts on building capacity and designing programs, ensuring that
services are efficient and relevant. As a result, the nonprofit network in Santa Fe is among the
strongest in the state of New Mexico. Many pilot programs initiated in Santa Fe have been
replicated not only statewide, but across the nation.
Another strength of the City’s service delivery model is that a wide diversity of services is
provided with little overlap because of the coordination between City departments as well as
between the City and local non-profit organizations. This communication and cooperation are
key to ensuring that services reach a those in the most need, including homeless families and
individuals and those in danger of becoming homeless, veterans, senior citizens, victims of
domestic violence, very-low income renters, at risk youth and people with special needs and
disabilities. The City also relies on private sector partners who are engaged in partnerships with
the nonprofits, in the case of foundations and lending institutions, as well as with the building
and real estate industry.
One recommendation that spans all housing needs relative to building capacity is for the City to
convene a time-limited task force to drive implementation of this housing plan once it’s adopted.
Through this process, the task force would identify other solutions to address gaps in the current
affordable housing landscape, particularly the lack of affordable rental housing production, with
the end goal of providing strategic and actionable policy and program initiatives. Membership
would include a mix of City staff, public officials, planners, services providers, the lending and
real estate industries and the homebuilder community.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 60
Figure. 41
Recommendations for Increasing Capacity to Provide Housing
Consolidated Plan
Housing Goal #1
Reduced rate of households with cost burden; drop in poverty rate;
reduced # of households who are homeless or in danger of
becoming homeless
Policy Recommendation(s)
a. Continue support for the work of nonprofit service providers on
an administrative level so that they can use City funds to leverage
private and other governmental funds.
b. Support efforts of the New Mexico Coalition to End Homelessness
through participation in a coordinated services network and
linking homeless to appropriate services.
c. Participate in coordinated efforts such as the proposed One-Door
Homeless campus and/or the Supportive Housing Toolkit.
Funding Source(s)
Local funds – City of SF General Funds (Office of Affordable
Housing), City of SF Human Services Grant
HUD funds – CDBG
Consolidated Plan
Housing Goal #2
Expanded inventory of rental units and assistance for very low-
income renters
Policy Recommendation(s)
a.
Continue support for the work of nonprofit service providers on
an administrative level so that they can use City funds to leverage
private and other governmental funds.
b. Coordinate the provision of services, including the development
of a shared resource database that provides referral information
for those seeking services as well as listing information for homes
that are for rent or sale.
Funding Source(s)
Local funds –City of SF General Funds (Office of Affordable Housing),
City of SF Human Services Grant
HUD (pass through) - Continuum of Care/Shelter Plus Care for rental
assistance
HUD – CDBG
Consolidated Plan
Housing Goal #3
Increased homeownership opportunities and support for long term
affordability and accessibility for current homeowners
Policy Recommendation(s)
a. Continue support for the work of nonprofit service providers on
an administrative level so that they can use City funds to leverage
private and other governmental funds.
b. Coordinate the provision of services, including the development
of a shared resource database that provides referral information
for those seeking services as well as listing information for homes
that are for rent or sale.
Funding Source(s)
Local funds –City of SF General Funds (Office of Affordable Housing)
HUD (pass through) - Continuum of Care/Shelter Plus Care for rental
assistance
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 61
Program Development
The City supports highly effective homebuyer/owner services, delivered through its nonprofit
partners. Funding from the Affordable Housing Trust Fund (AHTF) is administered by the City to
support homeownership programs including down payment assistance and home improvement
loans. To qualify, households must not exceed 120 percent Area Median Income (AMI). Habitat
for Humanity and Homewise are subrecipients for down payment and home improvement funds
and the Santa Fe Community Housing Trust receives funding for down payment assistance.
Additionally, the City administers funding via the HUD Community Development Block Grant
(CDBG) for homebuyer down payment assistance and home improvement assistance specifically
for households below 80 percent AMI. Several hundred renters become homeowners on an
annual basis through these programs.
However, the needs of very low income renters, especially those who are housed, if precariously,
are not well-addressed. Those renters who are not supported through Housing Choice Vouchers
or are not residents of a subsidized apartment complex are generally extremely cost-burdened
(paying more than 50% of their incomes for housing) which makes them highly vulnerable to
the slightest financial stress. If the car breaks down or hours are cut back at work, the housing
stability of these renters is immediately jeopardized. Compounding this is Santa Fe’s historically
high occupancy rates for its existing market rate rental stock and with a very limited number of
market rate rentals built over the last ten years, rents have been driven up across the market.
In 2014, the City piloted a locally-funded rental assistance program that was administered by the
Life Link, in conjunction with MFA’s Linkages program and HUD’s Continuum of Care program.
The value of the local funds was that the renter did not have to meet stringent qualification
guidelines, other than being in danger of homelessness. However, because funds were not
available from the Trust Fund in the subsequent funding cycle, the program is currently
dormant. Another local support for renters with low incomes would be the reestablishment of
free, bilingual landlord/tenant counseling services. The current provider charges a fee that is
unaffordable for those most in need of the assistance. This may be remedied with the City
providing financial subsidy for the program and/or working with another entity to develop a
program.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 62
Figure. 42
Recommendations for Program Development
Consolidated Plan
Housing Goal #1
Reduced rate of households with cost burden; drop in poverty rate;
reduced # of households who are homeless or in danger of
becoming homeless
Policy Recommendation(s)
a. Support a coordinated services delivery system to ensure that
homeless who seek shelter or housing have access to support
services.
b. Re-instate tenant-based rental assistance that is short-term
without restrictions to keep housed those renters who are in
danger of becoming homeless and/or are in arrears with rent and
utility payments or need deposit funds to secure immediate
housing.
Funding Source(s)
Local funds – City of SF General Funds (Office of Affordable
Housing), City of SF Affordable Housing Trust Funds, City of SF
Human Services Grant
MFA Funds - EHAP, Linkages, RAP
HUD funds – CDBG, Continuum of Care, HOPWA, Housing Choice
Consolidated Plan
Housing Goal #2
Expanded inventory of rental units and assistance for very low-
income renters
Policy Recommendation(s)
a. Re-fund landlord/tenant counseling services that are bilingual and
free to Santa Fe residents.
b. Work with private landowners to create scattered-site rental
program using ADUs and guesthouses.
c. Identify all existing affordable rentals and develop a preservation
plan as needed.
d. Design an energy efficiency program to retrofit rental properties
owned by low-income landlords and/or large-scale privately-
owned rental properties where energy savings are passed on to
the low-income renter to reduce utility payments.
Funding Source(s)
Local funds – City of SF Affordable Housing Trust Fund, City of SF
General Fund (Office of Affordable Housing)
MFA Funds – HOME, LIHTC, NM Housing Trust Fund
HUD (pass through) - Continuum of Care/Shelter Plus Care for rental
assistance
HUD – CDBG, Public Housing, RAD
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 63
Figure. 42
Recommendations for Program Development (Cont.)
Consolidated Plan
Housing Goal #3
Increased homeownership opportunities and support for long term
affordability and accessibility for current homeowners
Policy Recommendation(s)
a. Continue to support emergency repair grant programs targeted
toward very-low income homeowners (less than 50%AMI),
including possible use of subsidy to pay for short-term insurance
to cover the construction process.
b. Continue to support rehabilitation loan programs targeted toward
low to moderate income homeowners (50%-80% AMI), which
includes home renovations and energy conservation measures
including the purchase of new appliances, retrofits, and solar
water heaters.
c. Design and implement a home repair program specific to income-
qualified homeowners living in Santa Fe’s historic districts which
may include subsidy or an exemption to offset the cost of historic
retrofits.
Funding Source(s)
Local Funds – City of SF Affordable Housing Trust Fund
MFA (via housing providers) – Mortgage$aver, Mortgage Booster,
Helping Hand, Energy$mart
HUD – CDBG (Foreclosure Assistance Project, Down Payment
Assistance, Home Repair Loans, Emergency Repair Grants)
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 64
Real Estate Development
Future production of new units will need to reflect the needs of emerging populations,
specifically older, smaller households; the elderly; the self-employed; and special needs groups
such as veterans. Market demand for single-family suburban style housing is likely to drop as
more households will seek housing that is close to transportation, services and amenities and
can be adapted to changing needs to allow “aging in place.” Santa Fe has a high percentage of
“1099 Workers” in its population whose housing needs are sometimes combined with their
needs for space to conduct entrepreneurial activities. Another emerging priority for the City is
to provide economic opportunities for younger workers whose housing needs are not met by
the current housing inventory as they seek to be closer to amenities and transit corridors.
While realtors and lenders report that activity is rebounding in the real estate market which
indicates positive benefit for the economy as a whole, many cite high land costs and regulatory
constraints as reasons not to build in Santa Fe. Until the recession, Tierra Contenta, the master-
planned community in the southwest sector of the City, was developing upwards of 200 homes
per year, of which 40% were rented or sold at affordable prices. When development stalled,
land sales dropped off and the development corporation was not able to install the spine
infrastructure needed for the last connection through Phase III. Building the road will open up
the capacity to provide over 2,000 more homes, as per the original Master Plan.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 65
Figure. 43
Recommendations for Real Estate Development
Consolidated Plan
Housing Goal #1
Reduced rate of households with cost burden; drop in poverty rate;
reduced # of households who are homeless or in danger of
becoming homeless
Policy Recommendation(s)
a. Leverage City-owned resources to support facilities such as the
proposed One Door Homeless Campus.
Funding Source(s)
Local funds – City of SF General Funds (Office of Affordable
Housing), City of SF Affordable Housing Trust Funds, City of Santa Fe
(Human Services Grant)
MFA – RAP, Build it, FDIC, HOME, LIHTC, Primero Investment
HUD funds – CDBG, Continuum of Care
Consolidated Plan
Housing Goal #2
Expanded inventory of rental units and assistance for very low-
income renters
Policy Recommendation(s)
a. Work with for-profit and non-profit organizations to develop at
least one new multi-family, mixed income rental property.
b. Support the SFCHA’s RAD conversion project to renovate 121
public housing units and build 30 new units. Support the project
through fee waivers if they receive the second round of funding
for the conversion of 237 public units for seniors.
c. Incentivize construction of affordably-priced rental units through
donations of city-owned land, fee waivers, regulatory exemptions
and other municipal resources.
d. Require LIHTC projects that receive City donations to set aside a
percentage of units for households earning less than 50% of the
AMI.
Funding Source(s)
Local funds – City of SF Affordable Housing Trust Fund, City of SF
General Fund (Office of Affordable Housing),
MFA – RAP, Build it, FDIC, HOME, LIHTC, Primero Investment
HUD – CDBG, HUD 542(c)
Consolidated Plan
Housing Goal #3
Increased homeownership opportunities and support for long term
affordability and accessibility for current homeowners
Policy Recommendation(s)
a. Complete the Paseo del Sol Road extension in Tierra Contenta to
open up Phase 3 of the Master Plan for development.
Funding Source(s)
Local Funds – City of SF Affordable Housing Trust Fund, City of Santa
Fe Capital Improvement (CIP) funds
MFA – Build it
NMFA – PPRF
HUD – CDBG
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 66
Regulatory Environment
Santa Fe’s regulatory environment is characterized by its long history of implementing an
inclusionary zoning program which has resulted in the construction of nearly 1,000 affordable
homes. However, other aspects of the land use development code and the Santa Fe Homes
Program regulation have unintended consequences and may actually be hindering housing
production. Multi-family developers have cited that integrating rental units at subsidized rents
makes it impossible to cash flow their operating proformas. Without a viable operating budget,
they can’t get construction financing and the project is not built.
One regulatory recommendation that is relevant to all housing needs is to add the intent to
comply with state and federal fair housing laws and regulations in the general code purpose
statement or in the residential district purpose statement of the City’s Land Use Code. Another is
to exempt affordable housing from nonconforming structure requirements. And finally, the City
needs to bring its code into compliance with the revised Rules of the NM Affordable Housing Act,
specifically Chapter 26-2.
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 67
Figure. 44
Recommendations for Regulatory Environment
Consolidated Plan
Housing Goal #1
Reduced rate of households with cost burden; drop in poverty rate;
reduced # of households who are homeless or in danger of
becoming homeless
Policy Recommendation(s)
a. Exempt emergency shelters from nonconforming structure
requirements.
Funding Source(s)
Local funds – City of SF General Funds (Office of Affordable
Housing), City of SF Affordable Housing Trust Funds
Consolidated Plan
Housing Goal #2
Expanded inventory of rental units and assistance for very low-
income renters
Policy Recommendation(s)
a. Modify the Santa Fe Homes Program (SFHP) so that the rental
requirement is financially viable from the prospective of a multi-
family development proforma.
b. Revise the density bonus incentive so that rental projects that
exceed the minimum SFHP requirements get a higher bonus than
those that offer the minimum.
c. Convert existing and support the development of new ADUs into
affordable rental stock through the modification of Chapter 14
restrictions (eg. allow greater diversity of placement on the site -
on top of garages or other outbuildings-and eliminate
architectural consistency standards if under a certain size, allow
existing ADUs to be nonconforming uses).
d. Increase low-density limits for multi-family residential
construction.
e. Raise the square footage threshold that triggers a development
plan requirement on residential projects from 10,000 square feet
to over 30,000 square feet when the proposed project meets
redevelopment and mixed use goals.
Funding Source(s)
Local funds – City of SF Affordable Housing Trust Fund, City of SF
General Fund (Office of Affordable Housing)
Consolidated Plan
Housing Goal #3
Increased homeownership opportunities and support for long term
affordability and accessibility for current homeowners
Policy Recommendation(s)
a. Revise density bonus incentives so that it is tiered to award
deeper levels of affordability or higher percentages of
affordability in homeownership projects subject to the Santa Fe
Homes Program.
Funding Source(s)
Local funds – City of SF Affordable Housing Trust Fund, City of SF
General Fund (Office of Affordable Housing)
CITY OF SANTA FE AFFORDABLE HOUSING PLAN GOALS, POLICIES AND QUANTIFIABLE OBJECTIVES, PAGE 68
