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Rio Rancho proposes $120,000 pilot to help employees with home down payments
Summary
City staff proposed a $120,000 pilot program that would offer forgivable loans up to $20,000 to qualifying city employees to encourage recruitment and retention and to promote living in Rio Rancho.
City staff presented a $120,000 pilot program in the FY‑26 HR budget to provide down‑payment assistance to city employees, aiming to support recruitment, retention and encourage employees to reside within city limits.
Under the broad program parameters discussed at the work session, staff said the pilot would make up to $20,000 available per eligible employee as a forgivable loan in second position on a home mortgage. The loan would be forgivable over five years, with 20% forgiven each year, and would require at least one year of service and primary residence within the Rio Rancho city limits. Staff said the program is intended to have broad eligibility and is not proposed to include income caps tied to the benefit.
City Manager Matt Geisel said the program is being designed for both recruitment and retention, and staff would return to the governing body after they finalize program parameters and select a service partner. "Once we have the final program parameters put together... we can definitely share it with the governing body," Geisel said.
Councilors expressed support. Councilor List called the proposal "a wonderful opportunity" and said it signals the city's commitment to employees and housing stability. Councilor Tyler and other members asked staff to bring the detailed program parameters to a future meeting so the governing body can review how the pilot would be administered and whether the funding level will meet demand.
Staff noted that comparable programs exist in other contexts — for example, some public employers and medical institutions use similar tools — and that Albuquerque has used CDBG funding for targeted down‑payment assistance with income limits, which differs from the broad eligibility being discussed for this pilot.
Next steps: Staff said they are still working on final program parameters and plan to select a partner; they will return to the governing body with a final proposal for consideration and potential implementation.
