The Santa Fe City Council on Sept. 24 voted to approve a donation agreement with HomeWise for Las Estrellas Tract 6A, a roughly 20‑acre city‑owned parcel north of State Highway 599. The donation clears the way for HomeWise to pursue entitlements, perform additional site studies and pursue a mixed-income development that HomeWise says could include both affordable and market-rate housing.

City asset development manager Terry Lease described the tract, the 2023 feasibility study and the request-for-qualifications process that selected HomeWise. Lease said the donation agreement includes conditions — including required feasibility milestones and a quitclaim deed contingency — under which the city can reclaim the property if HomeWise does not meet specified benchmarks.

Councilor Michael Garcia, who earlier asked the item be pulled from consent to permit public comment, said he sought the delay to ensure neighborhood engagement. After public comment and a return to the item, the council moved the donation forward. HomeWise and city staff told the governing body they plan additional neighborhood outreach and noted the development review process requires early neighborhood notification, public hearings on preliminary and final plats and technical reviews (traffic, geotechnical, water and utilities) before project approvals.

Residents who spoke during petitions from the floor expressed mixed views: some supported the donation as a way to add desperately needed affordable housing, while others urged caution, asking for additional geotechnical and drainage studies and more time for neighborhood charrettes. City staff and the developer said these studies and additional community meetings are part of the next steps and are required as part of the entitlement process.

On a roll-call vote the council approved the donation. Lease and HomeWise representatives emphasized that the item authorizes HomeWise to proceed with feasibility and entitlement efforts but does not guarantee a final project; final approvals will follow the city’s development review process.