City Council extends Affordable Housing Trust Fund revenue deadline to 2030

The Santa Fe City Council convened on May 14, 2025, to discuss critical amendments to the Affordable Housing Trust Fund, focusing on extending the timeline for land sale revenue deposits. The meeting highlighted the ongoing challenges of affordable housing in the city and the need for sustainable funding sources.

Councilor Garcia introduced a bill to amend the economic development fund ordinance, proposing to extend the sunset date for depositing certain land sale revenues into the Affordable Housing Trust Fund from December 31, 2025, to December 31, 2030. This extension aims to ensure that funds from city-owned land sales continue to support affordable housing initiatives, which have been a pressing issue in Santa Fe.

During the discussion, concerns were raised about the limited revenue generated from land sales in recent years, with only one significant transaction contributing approximately $243,669 since 2020. Council members debated the necessity of the amendment, with some advocating for a focus on maximizing contributions to affordable housing, while others suggested that future excise tax revenues could provide a more reliable funding source.

An amendment was proposed to sunset the provision if the excise tax, expected to generate over $6 million, successfully passes. Councilor Garcia opposed this amendment, emphasizing the urgent need for every available dollar to be directed toward affordable housing, given the city's current housing crisis.

The council's discussions underscored the complexities of balancing economic development with the pressing need for affordable housing solutions. As the city anticipates potential land sales and the outcome of the excise tax, the council remains committed to addressing these intertwined issues.

The meeting concluded with a recognition of the importance of future governing bodies having the flexibility to make decisions based on evolving circumstances, particularly regarding funding allocations for affordable housing and economic development. The council's ongoing deliberations reflect a commitment to finding sustainable solutions to one of Santa Fe's most significant challenges.