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NMSU urges state aid for campus housing renewal as occupancy nears capacity; costly demolition of old dorms under way
Summary
NMSU officials told the committee the university faces high demand for student housing, a $220–280 million estimated renewal cost for aging residence halls and an especially expensive asbestos‑contaminated demolition at 'Cove Village'; university seeks state participation to preserve affordability and avoid overburdening students
Chris Kinsley, interim vice president for administration and finance at New Mexico State University, told the Legislative Finance Committee in Las Cruces on Sept. 10 that NMSU is at or near 100% occupancy for on‑campus housing and that demand has risen since the COVID years. The university reported a wait list of several hundred students earlier this semester and a successful policy adjustment that backfilled first‑year halls with some sophomores to relieve immediate demand.
Kinsley outlined a facilities picture that combines old housing stock — some dorms date to the 1940s and 1950s — with large deferred‑maintenance liabilities. A recent comprehensive condition study estimated campus renewal costs in the $220 million to $280 million range to modernize halls and meet contemporary standards for student life. While student fees commonly finance dorm construction and debt service, Kinsley said adding new debt service now would push student housing rates above affordable levels for many students.
University officials flagged an urgent demolition and remediation need: "Cove Village," an abandoned apartment‑style complex that has been boarded and stripped and now requires expensive asbestos remediation. NMSU received a $17 million legislative appropriation earlier this year for demolition; Kinsley said that amount will likely cover only part of the cost and that estimates to fully dismantle that site approach $30 million. The asbestos removal work must be done by hand with hazardous‑materials procedures, driving unit costs to an unusually high level for demolition.
Kinsley described several financing pathways the university is exploring: traditional revenue bonds, public‑private partnerships (P3s) and mixed strategies. He cautioned that P3 deals often carry higher student rates because private partners require a return on capital and typically lock in longer concession terms. The university requested additional state assistance to move projects that preserve affordability; officials said this could be targeted state participation to subsidize construction costs rather than full financing. NMSU also asked the Legislature to consider measures that allow institutions to blend sources (state grants, bonds and P3 arrangements) to accelerate replacement of unsafe or obsolete buildings.
