Council hears Housing Forward Fund report, asks for details as emergency repairs and senior projects move forward

The Albuquerque City Council on April 21 received the Housing Forward Fund fiscal year 2025 report and pressed housing officials about the fund’s cash balance, emergency repair costs and the city’s strategy for owning versus subsidizing new affordable housing.

Housing staff told councilors the portfolio’s committed and expended total is about $23 million and that the apartment fund — the internal operating reserve for city‑owned rentals — typically holds about $500,000 for emergencies. Councilors asked about a recent large unanticipated repair at the Beach Apartments (reported as a $3.33 million repair bill), and staff described late discovery of structural deterioration caused in part by an attached staircase design that concealed damage. Staff said repairs will replace attached staircases with freestanding systems that are safer though they will alter the building’s appearance.

Councilor Grout and others pressed staff on how rental revenue is allocated. Housing staff said rental income is pooled into an apartment fund used for administration, debt service where applicable, and emergency repairs; they said the city has not appropriated new funds to that pot since FY2022 and that the fund fluctuates with vacancy and repair needs.

Separately, the council voted on and approved multiple housing motions and agreements. The council approved two related supplemental and development agreements to support new senior rental housing construction with Sol Housing using HUD HOME and ARPA funds (EC360 and EC361). EC360 (second supplemental agreement to Farolito Senior community development agreement) passed on a recorded 6–0 vote (Councilors Rogers, Baca and Lewis were temporarily excused). EC361 (Sumos Apartments development agreement to use HOME/ARPA funds for senior rental construction) passed unanimously after questions about the size of the requested gap financing; housing staff said rising construction costs, interest rates and labor constraints drove larger gap needs but that the city’s contribution is targeted as last‑mile gap financing.

Councilors asked about longer term plans. Commissioners said the city is pursuing two approaches: incrementally growing the number of city‑owned units (to be able to respond to urgent capital needs) while continuing to use gap financing to leverage far more units through private developers. Staff said paying off outstanding debt service in about three years will free money for future capital work.

Councilors asked for more detailed cash‑flow and appropriation breakdowns for the apartment fund, and staff agreed to provide a department‑level breakdown and follow‑up on specific projects named in the report. Councilors also discussed the trade‑offs between purchasing and gap financing for unit creation and emphasized the need to increase rental reserves.