County outlines plan to add thousands of homes, details bonded affordable development

Dan Osborne, the county’s housing and special projects manager, told the Planning and Zoning Commission on Jan. 14 that Los Alamos needs both more housing and a range of tools to keep homes affordable.

"We needed about 1,300 new units" to hold the community steady and roughly "2,400 units" to meet growing demand and change the affordability baseline, Osborne said, summarizing the county’s 2024 affordable housing plan. He said the plan broadened the county’s eligibility for assistance from 80% of area median income (AMI) to 120% AMI; Osborne added that the state mortgage finance authority (MFA) later increased its threshold to 150% AMI.

The plan, he said, combines increased density and targeted subsidies. Some programs already in operation include a home rehabilitation line with 23 inquiries and four loans issued so far (non‑amortizing loans up to $45,000) and a homebuyer assistance program with four inquiries and two loans. Osborne said staff will mount a spring marketing push to boost take‑up.

The county described a recent local acquisition: 9th Street Studios, an 87‑unit property, where the county worked with a buyer to deed‑restrict units for households at 45% AMI for 20 years and committed roughly $500,000 for improvements; about $100,000 has been spent to date, Osborne said.

Osborne then reviewed two larger redevelopment efforts. The downtown 20th Street site has been prepared with upgraded utilities and is envisioned for higher‑density residential uses consistent with the comprehensive land‑use and downtown master plans. Staff emphasized zoning changes will be necessary to achieve the mixed‑use, 2–7‑story building scale shown in master‑plan graphics.

For North Mesa, staff described a proposed public‑private partnership with Servitas, a fee developer, to build roughly 380 units in a development that would mix market‑rate and deed‑restricted housing. Osborne said the developer’s current proposal includes about 260 market apartments and approximately 120 deed‑restricted units targeted in the 60–100% AMI range. The county applied for a state grant of $3,000,000 to help permanently deed‑restrict a portion of the project, he said; entitlements were expected to start in early February with a neighborhood meeting planned.

Osborne described the financing as a bond model in which a third‑party nonprofit would hold the project while bonds are outstanding; he said the structure is designed so rents cover debt service and need not escalate to satisfy investors, which staff say supports permanent affordability.

Infrastructure and phasing remain critical constraints. Staff said water‑line looping and upsizing, sewer repairs on aging pipes, and other off‑site utilities will require capital investment; staff outlined options to include those costs in a capital improvements plan or to capitalize them into the project and have developers front them in exchange for compensation.

Other items Osborne raised included ongoing negotiation of deed restrictions with Habitat for Humanity, small infill opportunities (an estimated 4–6 units at a 36th and Trinity site), an RV‑park feasibility study (planning for 40–60 spaces), and regional coordination with neighboring counties and land trusts.

The commission asked questions about eligibility for Metropolitan Redevelopment Area funding, the developer’s business model, occupancy rates at recent projects, pedestrian and traffic safety near downtown, and whether short‑term rentals were a concern; Osborne answered that MRA eligibility appears to cover some sites and that the county is still finalizing details with developers.

What’s next: staff expects the Servitas team to submit site‑plan entitlements in February and to host a neighborhood meeting on Feb. 5. The county will continue work on capital planning for required utility upgrades and pursue the state grant to support permanent deed restrictions.