City council clarifies $3M allocation for affordable housing trust fund amid budget discussions

The City Council of Santa Fe convened on May 14, 2025, to discuss several key agenda items, primarily focusing on budget allocations and processes related to the affordable housing trust fund.

The meeting began with a review of the $3 million allocated to the affordable housing trust fund. Council members sought clarification on whether this funding was included in the current year's budget. Councilor Hopkins confirmed that the funds were indeed part of the fiscal year 2024 unanticipated gross receipts tax (GRT) revenue, which had been earmarked for affordable housing in light of pending litigation regarding an excise tax on high-end home sales.

Councilor discussions highlighted the need for improved processes in budget management. One councilor expressed a desire for a more efficient approach, noting that the city had recently acquired the Questica software, which should aid in future budget planning. The council also addressed the timing of budget amendments, emphasizing the importance of timely communication to avoid confusion among members.

Further discussions clarified that the recent amendments to allocate funds for parks were sourced from within the current budget, specifically from the Emergency Services Department and the City Manager's office, rather than from previous budgets. This distinction was deemed crucial for transparency and proper financial management.

The council also noted that the $3 million would be presented to the Community Development Commission for grant awards, with an emphasis on soliciting proposals that would lead to the construction of actual housing units. This shift in strategy aims to better utilize the available funds and prepare for potential future revenues from the excise tax, should it be approved.

In conclusion, the meeting underscored the complexities of budget management and the council's commitment to enhancing processes for future fiscal planning. The discussions around the affordable housing trust fund and the allocation of resources reflect ongoing efforts to address housing needs in Santa Fe while navigating financial uncertainties.