INTER-OFFICE MEMORANDUM May 6, 2025
TO: Brook Bassan, President, City Council
FROM: Timothy M. Keller, Mayor
SUBJECT:
title
Approval of the Third Supplemental Agreement to the Calle Cuarta
Development Agreement with YES Housing to Utilize State Capital Outlay and
ARPA Treasury Funds Towards the New Construction of an Affordable Rental
Housing Project
body
This request for approval is for the proposed Third Supplemental Agreement to the Calle Cuarta Development Agreement between the City of Albuquerque and YES Housing, Inc., to provide $2,017,005.00 of pass-through grant funds from the State of New Mexico. This State grant funding includes $380,000.00 of State Capital Outlay funding (appropriated by R-22-49 & R-23-123), and $1,637,005.00 of ARPA ERAP2 funding from the U.S. Department of Treasury to be appropriated by City Council under R-25-130.
The funds authorized under this Third Supplemental Agreement will be used to provide Services within the scope of the Original Agreement and the scope of the Developer’s response to the City’s Request for Proposal DFCS-CD-AHD-20-03-BROWN, which provided $3,500,000.00 and City-owned land to the Project. The funding provided for under this Third Supplemental Agreement will allow the Calle Cuarta project to reinstate previous project amenities that were value engineered out of the original Project Budget, as a result of the rising construction costs. The capital expense categories reinstated and funded by the ERAP2 contribution include but are not limited to: installation of solar energy technology, additional landscaping amenities, playground improvements, outdoor shade structure areas, community garden beds, interior fixtures (e.g., ceiling fans, package lockers, etc.), and interior finishes (e.g., solid surface countertops, corner guards, fitness flooring, window shades, etc.).
The Calle Cuarta Project includes the construction of a 61 unit, affordable development that shall consist of 10 (1 studio, 5 one-bedroom, 3 two-bedroom, and 1 three-bedroom) restricted units at 30% Area Median Income (AMI); 21 (3 studio, 8 one-bedroom, 7 two-bedroom, and 3 three-bedroom) restricted units at 50% of AMI; 23 (3 studio, 10 one-bedroom, 7 two-bedroom, and 3 three-bedroom) restricted units at 60% AMI; and 7 (1 studio, 3 one-bedroom, 2 two-bedroom and 1 three-bedroom) restricted units at 80% AMI (collectively, the “Affordable Units”).
The Project shall remain an affordable rental housing project, for its 99-year Affordability Period as required by its original Workforce Housing Trust Funding.
SUBJECT: Approval of the Third Supplemental Agreement to the Calle Cuarta Development Agreement with YES Housing to Utilize State Capital Outlay and ARPA Treasury Funds Towards the New Construction of an Affordable 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
Department of Health, Housing & Homelessness