INTER-OFFICE MEMORANDUM March 19, 2025
TO: Brook Bassan, President, City Council
FROM: Timothy M. Keller, Mayor
SUBJECT:
title
Approval of the Agreement to the Somos Apartments Development Agreement
with Sol Housing to Utilize HUD HOME & ARPA Treasury Funds Towards
the New Construction of a Senior Rental Housing Project
body
This request for approval is for the proposed Somos Apartments Development Agreement between the City of Albuquerque and Sol Housing (formerly Greater Albuquerque Housing Partnership), to provide $6,179,187.54 of federal funding towards the Somos Apartments project located at 7200 Central Avenue SE. The $5,179,187.54 of HUD HOME Investment Partnerships grant funds (which includes $4,817,326.29 of HOME entitlement and $361,861.25 of HOME match) was procured under RFP-2024-511-RG and RFP-2024-610-RG and the $1,000,000.00 of American Rescue Plan Act (ARPA), Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) from U.S. Department of Treasury was procured under RFP-2024-600-RG. This federal funding will provide the local contribution needed for the Low Income Housing Tax Credit allocation from the New Mexico Mortgage Finance Authority and close the financing gap caused increasing construction costs experienced by the project and its more than $25 Million in Total Development Cost.
The Project includes the construction of 70 residential units on land currently owned by the City of Albuquerque’s Metropolitan Redevelopment Agency, which will be conveyed to the Developer. The development will contain seventy (70) 1-bedroom rental housing units, common space, and an approximate 1,000 square foot commercial space, all totaling approximately 63,399 heated square feet. Of the 70 units, 24 units shall be for households at or below 60% of AMI, 14 units shall be for households at or below 50% AMI, 21 units shall be for households at or below 30% AMI and 11 units that are unrestricted and will be leased at Market Rate. The Project shall remain an affordable rental housing project, abiding by the High-HOME and Low-HOME rents for the 20-year HOME Affordability Period and will have a concurrent restriction for the ARPA funding.
SUBJECT: Approval of the Agreement to the Somos Apartments Development Agreement with Sol Housing to Utilize HUD HOME & ARPA Treasury Funds Towards the New Construction of a Senior Rental Housing Project.
Approved: Approved as to Legal Form:
_______________________ ____________________________
Samantha Sengel, EdD Date Lauren Keefe Date
Chief Administrative Officer City Attorney
Recommended:
_______________________
Gilbert Ramirez Date
Director