Committee extends sunset for depositing certain land-sale revenues into Affordable Housing Trust Fund to 2030

The City of Santa Fe Finance Committee on April 28 approved a bill amending Section 11-14-5 of the Economic Development Fund Ordinance to change the sunset date for depositing certain land-sale revenues in the Affordable Housing Trust Fund from Dec. 31, 2025, to Dec. 31, 2030.

Johanna Nelson, director of the Office of Economic Development and interim director of the Office of Affordable Housing, told the committee the amendment is intended to keep revenue flowing into the Affordable Housing Trust Fund as the city prepares to sell several properties, including parcels at Midtown. Nelson said the ordinance currently directs that 50% of funds from the sale of city assets be allocated to the economic development fund and to the Office of Affordable Housing, and that the amendment would allow that funding structure to continue through 2030.

Councilor Lindell asked why the change was limited to 2030 rather than made permanent. Nelson said the five-year extension was chosen to avoid the funding lapse at the end of 2025 while giving the council an opportunity to revisit the allocation in the medium term. Some councilors said a longer or permanent change could be considered, but others urged caution because ongoing litigation over the excise tax could alter revenue expectations.

A question arose about whether proceeds from Midtown property sales must remain dedicated to Midtown operations. Nelson said she was not aware of language tying Midtown sales exclusively to Midtown; Councilor Michael Garcia said he believed a 2016 ordinance requires that Midtown sale proceeds be reinvested in Midtown. Staff said they would follow up with the city attorney’s office to clarify how the Midtown link operates and whether any sale proceeds are restricted by earlier ordinances.

The committee approved the bill on a roll-call vote (yes: Councilor Cassatt; Councilor Lindell; Councilor Faulkner; Councilor Lee Garcia; Chair Merritt). The motion passed.

Staff and several councilors said the extension is intended to maintain funding flexibility for affordable housing while the city sells assets and continues to monitor litigation and other revenue changes. The committee did not adopt a permanent change at this meeting; staff offered to return with additional legal clarity if needed.