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Addressing Santa Fe's Housing Shortage

New Mexico’s housing shortage has compelled a new initiative bringing together federal officials and leaders of local nonprofit organizations.

In order to build more homes to meet the demand, U.S. senator Martin Heinrich of New Mexico authored new tax credit legislation after securing more than $1 million for Santa Fe Habitat for Humanity.

Habitat plans to construct a mixed-income development of 25 to 30 housing units on 6 acres of land next to the Ortiz Dog Park.

Heinrich’s proposed New Homes Tax Credit Act will function as essentially down payment assistance for eligible homebuyers while at the same time incentivizing homebuilders to create entry-level homes.

The senator said it’s a strategy necessitated by the recessionary period around 2008 and 2009, a slow-down that forced many builders of homes to retire.

 ”We have to scale what is working so that we actually rebuild not only more entry-level housing, but more building capacity in custom builders and low-income builders and all the different segments of the housing market. We just lost our builders and this will help rebuild that muscle memory,” Heinrich said.

Heinrich talked about the plan at a meeting on Wednesday with representatives from Habitat for Humanity and Homewise near some Habitat-constructed homes in the Oshara Development off of Richards Avenue.

There’s a shortage of about 3 to 7 million homes in the U.S., said Homewise CEO Mike Loftin. Less than 10 percent of new homes are built for entry-level buyers, he said, and in New Mexico, the figure is closer to only 5 percent.

It could take at least three years before the new development is complete, according to Santa Fe Habitat for Humanity executive director Kurt Krahn. The property, which was donated by developer Carlos Garcia, is in an excellent location, Krahn said, but will require more infrastructure work because it’s on hilly terrain. 

One of the first-time homebuyers who recently moved with her family into a Habitat-constructed home in Oshara said the affordability approach fostered by Habitat was a life-changing opportunity.

Iesha Larrañaga was living at a housing development near Cerillos Road that sometimes felt unsafe, especially with a daughter who is blind and autistic.

"Both my children get to be outside and hang out in a backyard that's theirs and sit on a front porch without having to be scared that somebody's gonna come and hurt them," Larrañaga said.

"I'm starting to get emotional, but it brings me so much joy, because my kids get to be happy."

Criteria for people whose applications are accepted for Habitat-constructed homes include having to live or work in Santa Fe County, employment, need, and willingness to put in 350 hours of work on the construction site for a single- head household and 500 hours for a dual-head household.

Rob Hochschild first reported news for WCIB (Falmouth, MA) and WKVA (Lewistown, PA). He later worked for three public radio stations in Boston before joining KSFR as news reporter.