The city of Santa Fe is navigating a complex situation regarding a new apartment project in the Tierra Contenta area, which could significantly impact the local Affordable Housing Trust Fund. On October 16, the Santa Fe Planning Commission approved the Zorro Blanco complex, consisting of 165 units, without any affordability requirements. This decision, based on recommendations from city staff, has raised concerns about the lack of affordable housing in a development area specifically intended for that purpose.
The Tierra Contenta development, located on the southwest side of Santa Fe, aims to provide affordable housing options for families and individuals. The third phase of this development, led by Homewise, is expected to offer homeownership opportunities. Yet, the city has declined to accept a $684,000 fee-in-lieu payment from developer Zydeco 66, which would bolster the Affordable Housing Trust Fund. This amount represents a significant increase compared to previous funding sources, including a Community Development Block Grant from the U.S. Department of Housing and Urban Development.
Mike Loftin, CEO of Homewise, argues that refusing this payment is counterproductive. He emphasizes the importance of a well-funded Affordable Housing Trust Fund, which supports the construction of new affordable housing and assists residents in maintaining their current homes. Loftin acknowledges that while Homewise has a vested interest in the fund, the city’s decision to reject the payment does not align with the needs of the community.
The ongoing confusion stems from differing interpretations of local statutes by city officials, including the departing City Attorney Erin McSherry. The relevant ordinances regarding affordable housing are complex and have led to conflicting viewpoints about compliance for the new apartments. Initially, city staff sought to have the project adhere to the Santa Fe Homes Program, which stipulates that multifamily developments must allocate 15% of their units as affordable or pay a fee into the Affordable Housing Trust Fund. However, they later claimed that the annexation agreement for Tierra Contenta exempted this project from such requirements.
Despite these complications, Zydeco 66 received permission from the Tierra Contenta board to offer the fee-in-lieu payment, with the expectation that the funds would be directed towards future affordable housing initiatives in the area. Board members have expressed their belief that the annexation agreement does permit adherence to the Santa Fe Homes Program guidelines.
The crux of the issue lies in ensuring that all housing projects in Santa Fe incorporate affordability measures. Currently, the overall requirement for the Tierra Contenta development mandates that 40% of its housing be affordable. Without the fee-in-lieu payment, Homewise’s ability to meet these guidelines in the upcoming phase could be compromised.
Going forward, advocates are urging the city to appeal the Planning Commission’s decision to the City Council. If the city fails to act, Homewise has indicated it will pursue an appeal, and Loftin has stated that legal action may be necessary if the nonprofit is not granted the opportunity to challenge the ruling. Such a lawsuit would undoubtedly delay the project, which the community cannot afford.
The city of Santa Fe faces a critical decision that could set a precedent for future housing developments. Accepting the fee-in-lieu payment would not only enhance the Affordable Housing Trust Fund but also demonstrate a commitment to addressing the pressing need for affordable housing in the region. It is essential for city officials to work collaboratively to ensure that bureaucratic hurdles do not hinder progress towards a more inclusive housing strategy.
