[ABQalex]

Earlier this year the city issued an RFP for residential conversion projects in Metropolitan Redevelopment Areas along Central Avenue east of Carlisle Boulevard. They are offering $4 million in gap financing for this effort. To qualify for this funding the projects must have at least 20 percent of their units as affordable housing. The deadline for submissions is Wednesday.

I wonder whether these two projects at San Mateo and Central are going to be submitted to the RFP and that's why they are including at least some affordable housing and that’s why the developer stated that they were working with the city on that front.

https://www.bizjournals.com/albuquer...e-housing.html

The City of Albuquerque is looking to incentivize New Mexican developers to create affordable housing units by offering gap financing in a new request for proposal.

Opened Friday, the RFP from the City’s Metropolitan Redevelopment Agency is distributing a pool of $4 million to those interested in converting existing structures along the Central Avenue corridor between Carlisle and Tramway boulevards into affordable housing units.

Specifically, the RFP mandates projects must be within the Central/Highland/Upper Nob Hill, Near Heights or East Gateway areas. Applicants will have to guarantee at least 20% of units are set aside for households at or below 80% of the area median income.

Terry Brunner, director of the MRA, said the Central Avenue corridor was chosen due to interest from the community, with residents telling the department there’s strong need for development in the area.

He added the ultimate goal for these areas is that City-sponsored development will spur more private investment.

“We’re trying to kind of get a bit of a snowball effect here,” Brunner said. “Where we, hopefully, can start to see some major improvement on Central by all of us working on several projects over the years that you can almost link together.”

The RFP is part of the City’s larger effort to increase Albuquerque’s housing supply, dubbed the Housing Forward ABQ plan. Median home prices in New Mexico have nearly doubled in the past decade, with many blaming a shortage of residential units, especially affordable ones, for the increase.

As part of the initiative, the City has focused on the conversion of dilapidated properties, especially old motels and hotels, into affordable rental units. Its first such project, Los Altos Lofts, a former hotel purchased by the City in April 2023, is currently looking for applicants.

In addition to gap financing — or awarding money to fill the difference between a developer’s capital and a project's budget — applicants could be eligible for MRA tax credits, such as the Low Income Housing Tax Credit, which can further offset costs for a conversion.

The MRA will give special consideration to developers that include community amenities, such as solar panels, art installations and landscaping, as well as those who support local and underrepresented businesses like minority-owned contracting firms.

Brunner noted that even if there are projects the City can’t fund in this RFP, the process will be a good measure of potential developments in the future.

“If there is one that we can’t fund on this round, we know we can go after, maybe, in a subsequent round,” Brunner said. “This is helpful in uncovering all the different project ideas that are out there.”

A full description of the RFP can be found on the City’s website and proposals will be accepted until April 24.

https://www.cabq.gov/mra/request-for-proposals