Santa Fe Council discusses $3M Affordable Housing Trust Fund funding strategies and challenges

The Santa Fe City Council's recent budget meeting highlighted critical discussions surrounding funding for the Affordable Housing Trust Fund, a key initiative aimed at addressing the city's growing housing crisis. Council members expressed concerns about the sustainability of funding sources, particularly as the city navigates tight budget constraints.

During the meeting, it was revealed that the city anticipates allocating $3 million to the Affordable Housing Trust Fund for the fiscal year 2026, sourced from one-time funding rather than recurring general fund dollars. This decision stems from the city's current financial limitations and the hope that an excise tax on high-end homes will eventually provide a more stable revenue stream. However, the timeline for implementing this tax remains uncertain due to ongoing litigation.

Councilor Garcia raised important questions about the implications of relying on one-time funds, emphasizing the need for a long-term strategy to ensure continued support for affordable housing initiatives. The council acknowledged the challenges posed by the complex nature of housing development, which can delay the disbursement of funds to contractors and ultimately impact the availability of affordable housing units.

In response to concerns about the effectiveness of current funding strategies, the council discussed the necessity of exploring alternative revenue sources. Councilor Cassett pointed out that previous studies have identified various potential funding mechanisms, including adjustments to tax structures that could be presented to voters.

The meeting also touched on the importance of transparency and accountability in how funds are allocated and spent. Council members expressed a desire for a comprehensive review of past funding cycles to better understand the impact of investments made through the Affordable Housing Trust Fund.

As the city grapples with the pressing need for affordable housing, the council's discussions underscore a commitment to finding innovative solutions while navigating financial challenges. The outcomes of these deliberations will play a crucial role in shaping Santa Fe's housing landscape in the coming years, as officials work to balance budgetary constraints with the urgent needs of the community.