Santa Fe officials pledge $3 million to Affordable Housing Trust Fund, outline shift toward unit production

Santa Fe city leaders told the Finance Committee on Tuesday that the city will transfer $3 million into the Affordable Housing Trust Fund for fiscal 2026 and that staff are reorganizing grant rounds and application language to emphasize producing affordable housing units.

The announcement came as Alisa Montoya, community development director, introduced Johanna Nelson, interim director of the Office of Affordable Housing, who summarized the office’s 2025 accomplishments and FY26 goals. “The Office of Affordable Housing managed and deployed housing funds to increase affordable housing supply, preserved existing homes, and expanded access to homeownership and rental assistance through strategic investments, partnerships, and support programs,” Nelson said.

The $3 million contribution appears in the proposed FY26 budget as a transfer from one‑time FY24 unanticipated revenue, Christina Martinez, senior budget analyst, confirmed during the meeting. Martinez directed councilors to page 25 of the budget book, where the transfer is shown under “transfers out.” The City Manager said staff recommended using one‑time funds because recurring general‑fund dollars are limited this year and because the city is awaiting the outcome of litigation over a 3% excise tax on high‑end home sales that, if upheld, would create a recurring revenue stream for…