Town of Bernalillo

 ACKNOWLEDGEMENTS Thank you to the following funders, elected officials, and community stakeholders: Funded by: Town of Bernalillo CDBG The New Mexico Mortgage Finance Authority Bernalillo Town Council: Mayor Jack Torres Marian A. Jaramillo Santiago Montoya Ronnie A. Sisneros Dale Prairie Town of Bernalillo: Maria Rinaldi, Director, Community Planning and Development Department; Acting Town Administrator Community Stakeholders: Santa Fe Civic Housing Authority Table of Contents Table of Contents ........................................................................................................................................... i I. Executive Summary ............................................................................................................................... 1 II. Introduction .......................................................................................................................................... 4 Organization of the Plan ....................................................................................................................... 4 Methodology ........................................................................................................................................ 5 Public Participation ............................................................................................................................... 5 Summary of Recommendations ........................................................................................................... 6 III. Community Profile ................................................................................................................................ 8 Population Growth ............................................................................................................................. 10 Community Characteristics ................................................................................................................. 11 Demographic and Community Profile Summary ................................................................................ 25 IV. Housing Profile and Analysis ............................................................................................................... 26 Housing Density .................................................................................................................................. 28 Housing Construction Trends ............................................................................................................. 30 Characteristics of the Existing Housing Stock ..................................................................................... 33 Housing Affordability and Market Analysis ........................................................................................ 36 V. Housing Needs Assessment ................................................................................................................ 43 VI. Land Use and Policy Review ................................................................................................................ 48 Existing Plans and Land Use Policies ................................................................................................... 48 Governmental Constraints to Affordable Housing Development ...................................................... 61 Non‐Governmental Constraints to Affordable Housing Development .............................................. 67 Potential Areas for New Housing Developments ............................................................................... 70 VII. Goals and Recommendations ............................................................................................................. 74 Quantifiable Objectives ...................................................................................................................... 74 Policy and Program Recommendations .............................................................................................. 75 Potential Sources of Financing and Subsidies to Support Housing Development .............................. 77 Appendix A. Public Involvement ................................................................................................................ 79 July 18, Public Meeting ....................................................................................................................... 79 Interviews ........................................................................................................................................... 81 Appendix B. Minimum Density Calculations ............................................................................................... 82 Appendix C. Funding Resources .................................................................................................................. 91 i | T o w n o f B e r n a l i l l o H o u s i n g P l a n Tables Table 1. Summary of Affordable Housing Objectives ................................................................................... 6 Table 2. Comparative Population Growth, 1990‐2010 ............................................................................... 10 Table 3. Select Population Characteristics .................................................................................................. 12 Table 4. Select Household Characteristics .................................................................................................. 14 Table 5. Income and Poverty, 1999 and 2009 ............................................................................................ 16 Table 6. Median Income by Demographic Characteristics, Town of Bernalillo, 2010 ................................ 16 Table 7. Income Distribution, 2010 ............................................................................................................. 17 Table 8. Estimate of Households by % AMI, 2010 ...................................................................................... 18 Table 9. Population with a Disability ........................................................................................................... 20 Table 10. Travel Time to Work, Bernalillo Residents .................................................................................. 23 Table 11. Employment Characteristics, 2010 ............................................................................................. 24 Table 12. Housing Characteristics, 2010 ..................................................................................................... 34 Table 13. Housing Condition Indicators, 2010 ............................................................................................ 35 Table 14. Housing Units with a Housing Cost Burden ................................................................................. 36 Table 15. Bernalillo Housing Units with a Housing Burden by Income Level ............................................. 36 Table 16. Homes for Sale by Affordability for Different Income Levels*.................................................... 38 Table 17. Affordable Rental Housing Complexes in Bernalillo.................................................................... 41 Table 18. Estimated Housing Rehabilitation Needs by Target Neighborhood ........................................... 44 Table 19. Types of Housing to Address Current Affordable Housing Needs of Cost‐Burdened Renters .... 45 Table 20. Types of New Housing to Address Future Affordable Housing Needs ........................................ 46 Table 21. Current and Future Housing Needs ............................................................................................. 46 Table 22. Zoning by Total Acreage .............................................................................................................. 54 Table 23. Zoning Designations with Residential Uses for the Town of Bernalillo ...................................... 56 Table 24. Cost of Permits and Fees per Unit ............................................................................................... 57 Table 25. Summary of Single Family Housing Price and Affordability Gap by Density and AMI Level ....... 59 Table 26. Summary of Multifamily Development Cost and Affordability by Density and AMI Level ......... 60 Table 27. Yearly Objectives to Meet Housing Need ................................................................................... 74 Figures Figure 1. Bernalillo Location Map ................................................................................................................. 9 Figure 2. Town of Bernalillo Population Trends .......................................................................................... 10 Figure 3. Population Distribution by Age Groups, Town of Bernalillo, 1990—2010 .................................. 13 Figure 4. Population Pyramid, Town of Bernalillo, 2010 ............................................................................ 14 Figure 5. Income Distribution for Town of Bernalillo, 1999—2010 ............................................................ 17 Figure 6. Total Gross Receipts for the Town of Bernalillo, 2006‐2011 ....................................................... 22 Figure 7. Total Gross Receipts by Sector for the Town of Bernalillo, 2006‐20011 ..................................... 22 Figure 8. Bernalillo Neighborhoods ............................................................................................................ 27 Figure 9. Representative Densities of Bernalillo Neighborhoods ............................................................... 29 Figure 10. Building Permits, Town of Bernalillo, 2003‐2011....................................................................... 30 Figure 11. Bernalillo Building Permits, Single Family Homes (2003‐2011) ................................................. 31 Figure 12. Bernalillo Building Permits, Mobile Homes (2003‐2011) ........................................................... 32 Figure 13. Towne Center Apartments ......................................................................................................... 39 Figure 14. Rinaldi Apartments .................................................................................................................... 40 Figure 15. La Villa Elena Apartments .......................................................................................................... 41 Figure 16. Recommended Land Uses, US 550 Station, TOD Plan ............................................................... 51 Figure 17. Recommended Land Uses, Downtown Station, TOD Plan ......................................................... 53 Figure 18. Zoning for the Town of Bernalillo .............................................................................................. 55 ii | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 19. Vacant Lots Smaller than 12,000 Square Feet in R‐R Zones ...................................................... 62 Figure 20. Vacant Lots Smaller than 6,000 Square Feet in Residential Zones ............................................ 63 Figure 21. Examples of Single Family Houses on or Designed for Narrow Lots .......................................... 64 Figure 22. Physical Constraints to Development and Flood Control Projects ............................................ 69 Figure 23. Potential Sites for Housing Development .................................................................................. 72 Figure 24. Other Vacant Parcels Suitable for Infill Development. .............................................................. 73 iii | T o w n o f B e r n a l i l l o H o u s i n g P l a n I.
Executive Summary The Town of Bernalillo is located in Sandoval County, New Mexico along I‐25 north of Sandia Pueblo and Albuquerque. The Town’s population has increased steadily over many decades, reaching 8,320 in 2010. Bernalillo is the County seat of Sandoval County. The purpose of this plan is to identify affordable housing needs and barriers to housing development within the Town of Bernalillo, and propose goals and implementation steps aimed at addressing affordable housing needs in the Town. This report conforms to the guidelines set forth by the New Mexico Mortgage Finance Authority (MFA), which administers grants and technical support to New Mexico’s municipalities and counties for affordable housing. The plan is organized into the following sections: Community and Economic Profile. This section describes demographic trends and projections for the Town of Bernalillo, highlighting community characteristics that are relevant to housing needs. It includes data about populations that often have special housing needs, including single parent families, seniors, disabled individuals and people living in poverty. Housing Assessment. The housing assessment examines the types, condition and affordability of housing in the Town. It also examines characteristics and affordability of for‐sale housing currently on the market as well as available rental housing. Finally, it describes local programs and organizations working to address housing needs in Bernalillo and the surrounding region. Housing Needs. This section provides a concise description of the specific housing needs by type, population and number of units needed. Land Use and Policy Review. The policy review examines relevant planning documents and their impacts on affordable housing. This section also describes other governmental and non‐governmental constraints to affordable housing development, including land use and environmental barriers. Potential Projects and Strategies. This section provides a description of projects and strategies that could be utilized by the Town to address affordable housing needs and eliminate barriers in the Bernalillo, including project types, potential locations, opportunities for cooperation with other entities, and potential policy actions by the Town. Quantifiable Goals, Objectives and Action Steps. This section puts forth specific yearly objectives for the number of housing units by type to be built or rehabilitated. It then lists a number of goals and action steps, including the strategies explained in the previous chapter, which should be implemented in order to achieve these objectives. The responsible party for carrying out each action step is noted, whether it be the Town of Bernalillo, a nonprofit organization, or another entity. Data for this plan came from many sources. The most current sources of demographic data, include the American Community Survey (2006‐2010 five‐year estimates), and the 2010 Census. Data regarding housing for sale and rent was obtained from www.homes.com as well as listings in local newspapers and local Realtor web sites. Interviews were conducted with local Realtors, developers, housing service 1 | T o w n o f B e r n a l i l l o H o u s i n g P l a n providers, and other stakeholders, and the consultants held a public meeting to get general public input. Finally, a literature review was conducted to obtain information about local, regional and national planning and affordable housing practices. Based on the research, the types of housing needs in the study area: 1. Market Rate Entry Level Home Ownership Opportunities. The majority of homes for sale in Bernalillo are not within the financial reach of most Bernalillo residents. Mobile homes are frequently the source of affordable home ownership, but these do not afford the same benefits to the buyers as site built homes. Nevertheless, the community greatly values home ownership, and has shown a preference in the past for single family homes to multifamily complexes. In addition, many people from Bernalillo who live in Rio Rancho have expressed their desire to live in Bernalillo, if housing were available. Creating single family developments that have the higher densities in line with Bernalillo’s core neighborhoods may be a way to create homes affordably priced for the essential workforce and young families. The target market should include households earning 80% to 120% of the AMI. 2. Market Rate Rental Housing. There are currently no market rate multifamily units in Bernalillo, and this is the one of the greatest affordable housing needs. Rentals would provide a source of affordable entry level housing for people earning low to moderate income (50% to 120% of the AMI). This would include young people moving out of their families’ homes, essential workforce including teachers, firefighters, police, EMTs, etc., young small families, and seniors on a moderate income looking to downsize. New rental housing might come in a variety of styles: as small complexes in a style fitting to the community’s character (duplexes, 4‐plexes, townhomes, etc), in larger multifamily complexes, or as accessory dwelling units to existing single family homes. 3. Subsidized Senior Housing. There is a need for subsidized senior housing, similar to the Villa Elena complex, to provide affordable housing to seniors on a fixed income. There may also be a need for resources to help low‐income seniors make existing housing ADA‐accessible. 4. Subsidized Rental Housing. Subsidized rental housing is needed for individuals and families facing poverty, including women transitioning out of the domestic violence shelter, individuals recovering from substance abuse, some low‐income seniors on a fixed income, and others. Creating projects that include both market rate and subsidized rental units may make them more financially viable for the developers, more acceptable to the community, and less likely to be stigmatized. 5. Rehabilitation and Repair Programs. There is need for assistance with home repair and rehabilitation, particularly in the Town’s core neighborhoods. Low‐income families and seniors would the primary target for this type of assistance. Seniors may also require assistance with housing rehab that would make their homes ADA‐accessible. 6. Emergency Homeless Shelter. Input from local stakeholders and residents suggest that there is a transient homeless population in Bernalillo, made up of youth temporarily leaving their homes and of individuals coming from outlying areas in search of work. A homeless facility providing temporary overnight shelter would help meet the immediate needs of those individuals. To 2 | T o w n o f B e r n a l i l l o H o u s i n g P l a n meet longer term needs for individuals and families, transitional housing as described below is a better model. 7. Transitional Housing and Residential Treatment Programs. Temporary housing – from 30 to 90 days – is available to victims of domestic violence. However, there are not many options for women and children who need longer term housing. Transitional housing and residential treatment facilities are needed not only in Bernalillo, but in all of Sandoval County. The Town of Bernalillo is not likely to provide such a program. Partnering with Sandoval County or a local or regional non‐profit could be potential solutions to developing transitional housing programs. The plan identifies several barriers to affordable housing in the plan area. These are described in the Land Use and Policy Review chapter. Some of the most salient constraints include:  High construction and other development costs. These are not unique to Bernalillo, but they affect the private sector’s ability to provide affordable housing, particularly for those below the average median income for the region.  Limited land that is appropriately zoned, although adopted plans and policies support zone changes.  Current zoning and subdivision regulations that prohibit three‐story buildings, require large lot sizes, and otherwise limit affordable housing development.  A large number of existing lots in residential neighborhoods that are smaller than current zoning requires for a single family home.  Limited availability of construction financing for developers.  Credit issues and lack of financial stability of consumers, particularly those with low to moderate incomes.  Neighborhood resistance to higher densities and multifamily development, especially for low‐
income projects. As a traditional rural community, actual densities are quite high in some neighborhoods. The existing housing in the neighborhoods is small scale, however, and preserving traditional development patterns is important to the community.  Bernalillo is a close knit community with families who have lived in the area for generations. Housing and property is often transferred within families, and much of the land is not generally available for development. The complete list of goals and implementation actions can be found in the final chapter of the report. Some of the most important recommendations for the municipalities include:  Upon adoption of this Housing Plan, adopt an Affordable Housing Ordinance, which will allow the Town to donate land, materials, and other contributions for the development of affordable housing.  Work with the Santa Fe Civic Housing Authority and other government landowners to make land identified as suitable for affordable housing available for that; ensure appropriate zoning; and establish appropriate partners, if needed, for affordable housing development.  Make changes to the zoning code to facilitate the development of affordable housing in appropriate locations as identified in this plan  Provide incentives to developers to create affordable housing as well as housing that is handicap accessible 3 | T o w n o f B e r n a l i l l o H o u s i n g P l a n II.
Introduction The State of New Mexico enacted amendments to the New Mexico Affordable Housing Act in 2007. The Affordable Housing Act permits State and local governments to provide or pay the cost of land buildings or necessary financing for affordable housing projects. Affordable housing projects are residential housing primarily for persons or households of low or moderate income. Under the provisions of the Act, a municipality may: “A. donate, provide or pay all, or a portion, of the costs of land for the construction on the land of affordable housing; B. donate, provide or pay all or a portion of the costs of conversion or renovation of existing buildings into affordable housing; C. provide or pay the costs of financing or infrastructure necessary to support affordable housing projects; or D. provide or pay all or a portion of the costs of acquisition, development, construction, financing, operating or owning affordable housing." The Act requires the local governing body to enact a local affordable housing ordinance and a resolution authorizing housing assistance grants. The New Mexico Mortgage Finance Authority is the State entity charged with accomplishing the proposed of the Affordable Housing Act, and has established procedures that local governments must follow to take advantage of certain MFA grants and other housing resources. Organization of the Plan To document needs and strategies, the MFA requires that local governments prepare an affordable housing plan. The affordable housing plan helps communities identify existing and projected future housing needs. This affordable housing plan for the Town of Bernalillo contains the information that has been collected and analyzed to further an understanding the housing market and unmet needs in Bernalillo. The affordable housing plan identifies specific obstacles to affordable housing and unique opportunities available to meet the needs identified in the community profile and housing needs assessment. Then, the plan recommends how, when, where and by whom local housing issues will be addressed. These recommendations are contained in goals, policies, and quantifiable objectives to increase affordability by housing types for owners and renters. The programs that are recommended, which include actions by the Town administration and other housing providers, address specific needs for construction, rehabilitation, preservation and financing of affordable housing. The affordable housing plan is organized according to the MFA requirements for such plans, with the following sections: Community Profile  Demographics, including the characteristics of the local population and economic conditions.  Housing, including general characteristics of the Town’s existing housing stock. 4 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Housing Market Analysis, including the recent development trends and the market for homes for sale and rentals Housing Needs Assessment, including existing and projected needs Goals, Policies and Quantifiable Objectives, including the target number of new and rehabilitated units per year by type. Land Use and Policy Review, including potential affordable housing sites and constraints to developing affordable housing. Goals and Recommendations, including quantified goals to meet identified needs and policy recommendations. Methodology Four main types of information were used in compiling this document: 1) demographic, economic, and housing data 2) local housing and related information from stakeholder interviews and public meetings, 3) existing documents, plans and policies, and 4) information from websites, articles and other secondary sources. Sources for statistical data include the 2010 US Census counts, the American Community Survey 2006‐
2010 five year estimates, the Mid‐Region Council of Governments and the Bureau of Business and Economic Research at the University of New Mexico (BBER). The most up‐to‐date data was used when possible. Generally, 2010 is the most recent year for which comprehensive demographic and economic data are available. The consultants conducted interviews with area developers, real estate agents, and nonprofit organizations to gain insight into the housing situation. A complete list of people interviewed can be found in the Appendix. A public meeting was held in July 2012 to obtain information from the public about housing in Bernalillo, public perceptions of housing needs, and preferences for new housing opportunities. The Town’s adopted Plans, regulations and policies were reviewed to determine how these impact the development of affordable housing. An annotated summary of these documents and potential impacts of current regulations are documented in the Land Use and Policy Review. Public Participation The Town, with the assistance of the consultant team, held a public meeting on July 18, 2102, to obtain public input into the plan. Participants included primarily housing service providers. At this meeting, the team reviewed demographic information and the need documented in that data. Meeting participants were asked to contribute their perceptions of current conditions, issues that they have experienced, the types of housing that would be appropriate for Bernalillo, potential locations for new housing, and any other information that should be included in the plan. Public meeting results are summarized in Appendix B. On December 20, 2012, the Town Council held a public hearing on the plan as well as an Affordable Housing Ordinance. Three members of the public spoke at the hearing. While all speakers were supportive of housing that meets the needs of Bernalillo residents, some concerns were expressed. First, the speakers were concerned that new housing could not be limited to Bernalillo residents, and 5 | T o w n o f B e r n a l i l l o H o u s i n g P l a n there is no guarantee that these housing will be occupied by local families. Second, they expressed concern about the quality of affordable housing. Third, they are generally opposed to higher densities, noting that the neighborhoods surrounding the TOD areas had opposed higher densities there. The consultant met separately with two of the speakers after the hearing to listen to their concerns and describe the goals of the plan in more detail. Higher density projects west of the river near commercial areas along NM 528 and higher density or new projects on vacant land that doesn’t have a negative impact on existing neighborhoods would be most acceptable to these residents. In addition to the public meeting and hearing, the project team interviewed fifteen stakeholders who know about housing issues in Bernalillo and the region. These stakeholders include Town staff, developers, Realtors, housing service providers, property owners, employers, and others who are familiar with the local housing market. Summary of Recommendations The following information summarizes the recommendations of the Affordable Housing Plan, including annual objectives and policy and program recommendations. Annual Affordable Housing Objectives The recommendations summarized in Table 1 indicate goals to meet the range of affordable housing needs in Bernalillo. Subsidized rental units will be provided in reasonably sized projects and are not stated as an annual goal. Other programs geared to individuals can be accomplished on an annual basis. Table 1. Summary of Affordable Housing Objectives Type of Housing Entry Level Home Ownership Opportunities Market Rate Rental Units* Total Need Current: 48 units
Future: 560 units Goal Based on Existing Capacity 25 to 30 units per year
Current: 67 units
Future: 120 units Subsidized Senior Housing* Current: 76 units Future:150 to 180 units Housing Choice Vouchers Current: 83 vouchers
Future: 100 vouchers 24 to 30 units per phase, with subsequent phases to begin as prior phase is fully leased. A total of up to 200 units. 150 to 180 units, potentially in phases as funding and incentives are available. Increase vouchers available to cost‐burdened Bernalillo households by 10 to 15 per year Subsidized Rental Housing, including housing choice vouchers and new construction* 290 total units Future: Housing Rehabilitation (focus on owner 294 mobile homes
413 single family units 6 | T o w n o f B e r n a l i l l o H o u s i n g P l a n New construction of up to 300 units in 24 to 30 unit phases with the following unit mix. 35% 1‐BR 35% 2‐BR 20% 3‐BR 5% 4‐BR These projects will be built in phases over time. Individual projects will occur as funding and incentives are available. 3 to 6 units per year
occupied units) Emergency Homeless Shelter Transitional Housing Long Term Supportive Housing 16 multi‐family units
10‐15 beds 10‐15 units or beds
10‐15 units 15 beds
15 beds/units
Increase vouchers by five units per year or provide 10 to 15 units in a single complex. *New multifamily projects will be built in phases, with each phase representing a multi‐year goal. Policy and Program Recommendations Policy and program recommendations describe the steps that the Town of Bernalillo can take to address existing barriers and constraints to housing development in Bernalillo. These recommendations are as follows: 1. Adopt this Affordable Housing Plan as an addendum to the Comprehensive Land Use Plan. 2. Adopt an Affordable Housing Ordinance pursuant to the requirements of the New Mexico Affordable Housing Act. 3. Amend the zoning code to eliminate barriers to affordable housing as identified in the Affordable Housing Plan and previous studies. 4. Approve zone code changes or variances on projects that conform to the recommended land uses and projects set forth in the Rail Runner Station Areas TOD plan. 5. Create an informational program (brochure) to promote and educate the public about the development of ADUs as an affordable housing resource. 6. Work with Sandoval County and interested non‐profits to identify an appropriate location for a homeless shelter and transitional housing facilities. 7. Offer incentives to developers willing to include a percentage of affordable housing units in their developments 8. Improve existing code enforcement efforts to ensure that houses in Bernalillo are maintained in acceptable condition. 9. Pursue condemnation and demolition of buildings or other structures that are in violation of the Town building code and deteriorated beyond repair. 10. Any properties obtained through efforts to remove dangerous buildings or debris from properties could be offered to the Santa Fe Civic Housing Authority or other agency to develop with affordable single family housing or townhomes, depending on location and lot size. 7 | T o w n o f B e r n a l i l l o H o u s i n g P l a n III. Community Profile The Town of Bernalillo, located in the southern portion of Sandoval County, forms part of the metropolitan region created by Albuquerque and Rio Rancho, along with the smaller communities of Corrales and Los Ranchos (see Figure 1). It is one of the oldest settlements in the area, and has been an important destination along major travel routes, specifically the Camino Real, which linked Mexico City and Santa Fe. Bernalillo was settled by Mexican families in the 17th century as an agricultural community, taking advantage of the rich soil along the Rio Grande. This agrarian history greatly influenced the town’s development pattern. Unlike many traditional Mexican and Spanish settlements in New Mexico that were oriented around a central plaza, Bernalillo was developed with clusters of family compounds in a north‐south pattern adjacent to the river and along the town’s main street—Camino del Pueblo (State Road 313). This “cordillera” style of development still informs the town’s character today,1 though new housing developments have sprung up on the west side of the river along State Road 528 in a more typical suburban fashion. The Town of Bernalillo was incorporated as a municipality in 1948 and is the county seat for Sandoval County. Even as Albuquerque has burgeoned to the south and Rio Rancho emerged as a major housing community to its west, Bernalillo has remained a quiet rural community with a small‐town feel, something very much valued by its residents. It is bordered by the Sandia Indian Reservation to the south and the Santa Ana Indian Reservation to the north, which serve to help insulate the town from sprawl and keep its rustic feel. The sweeping views of the Bosque, Rio Grande, and the Sandia Mountains are tremendous assets both to current residents and those seeking to move to Bernalillo. With the development two Rail Runner Express stations in 2006 and recent efforts to improve Camino del Pueblo with pedestrian amenities, the town is becoming even more attractive. Bernalillo is unique within Sandoval County, having a predominantly Hispanic population, and boasting families who descended from some of the town’s original settlers centuries ago. It is a close‐knit community, where neighbors know one another, and several generations often live within the same home or in a cluster of homes, also known as a family compound. Stakeholders report that unlike many small communities, Bernalillo’s young people are eager to remain in the town to make their home. They are often unable to do that, however, due to a lack of affordable housing, and many end up living in neighboring Rio Rancho. Although the influx of new suburbs, especially west of the Rio Grande, has altered the variety of available housing in Bernalillo, the core or heart of the town, remains relatively unchanged. 1
Mid‐Region Council of Governments (MRCOG). Comprehensive Land Use Plan for the Town of Bernalillo, New Mexico. 2004. 8 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 1. Bernalillo Location Map 9 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Population Growth Population Trends After experiencing a dip in population between 1960 and 1970, Bernalillo has steadily grown with an average annual growth rate of 3.6% from 1970—2010. Its growth rate has been less than that of Sandoval County due to the explosion of growth in neighboring Rio Rancho, one of the fastest‐growing communities in all of New Mexico. Compared to other small towns, Bernalillo’s growth has been strong, and was nearly double that of New Mexico as a whole in the 2000—2010 period. The US Census puts the 2010 population for Bernalillo at 8,320, up from 6,611 in 2000. Figure 2. Town of Bernalillo Population Trends Town of Bernalillo Population Trends
9,000
8,320
8,000
Population
7,000
6,611
6,000
5,732
5,000
4,000
2,574
3,000
2,000
1,000
2,988
2,016
1,922
0
1950
1960
1970
1980
1990
2000
2010
Year
Source: US Census, 1950—2010 Table 2. Comparative Population Growth, 1990‐2010 1990 Bernalillo 2000 2010 % change 1990‐2000 % change 2000‐2010 5,732 6,611 8,320 15.3% 25.9% 386,988 448,607 545,852 15.9% 21.7% Rio Rancho 32,551 51,765 87,521 59.0% 69.1% Sandoval County 63,319 89,908 131,561 42.0% 46.3% 1,515,069 1,819,046 2,059,179 20.1% 13.2% Albuquerque New Mexico Source: US Census, 1990—2010 10 | T o w n o f B e r n a l i l l o H o u s i n g P l a n According to the Bernalillo MainStreet Community Economic Assessment2, growth in the town has historically been the result of a high birth rate coupled with a stable population. This may be shifting, however, as the proportion of young people to the total population declines (see Figure 3). The community does appear to be relatively stable, with 40.6% of households moving into their homes before 2000, though this is a slightly lower rate compared to New Mexico as a whole (42.2%)3. Future growth in the town will likely be a combination of growth in the existing population (young families) as well as new inhabitants to the area, provided that there is adequate housing. Future Population Growth in New Mexico over the past decade has occurred primarily in the central region of the state—in the metropolitan areas of Bernalillo, Sandoval, and Valencia Counties—and this trend is expected to continue. While Bernalillo County is projected to have the greatest population increase in numbers, Sandoval County is expected to have the highest percent change—an anticipated 142% increase from 2008 to 2035.4 The Mid‐Region Council of Governments (MRCOG) projects that by 2035 the county will double both in population and employment base. Much of this growth is anticipated in Rio Rancho, and the Rio Rancho City Center will emerge as an important seat of employment, providing approximately 10,000 jobs. Bernalillo is expected to grow as well. Although data specifically for the town is not available, the 2035 population of Bernalillo can be estimated at roughly 14,700, with 5,384 total households, using Data Analysis Subzone (DASZ) projections from MRCOG5. Future employment for the Town of Bernalillo in 2035, based on these projections, is estimated to be 5,531. This would more than double the estimated 2000 employment in the town of 2,335 jobs. In addition to the natural growth of the community, new housing developments and the location of two Rail Runner Express train stations in Bernalillo will likely influence growth6. According to the Bernalillo MainStreet report (2007), future growth will be largely influenced by commuters to Albuquerque and other areas who seek housing in Bernalillo. The Rail Runner stations create a prime opportunity for housing that would appeal to current residents as well as newcomers who commute to Albuquerque and Santa Fe. Community Characteristics Select demographics for the Town of Bernalillo, Sandoval County and New Mexico are shown in Table 3. The most noticeable difference between Bernalillo and the county and state is related to ethnicity. Nearly 70% of Bernalillo’s residents identified themselves as Hispanic or Latino in 2010, compared to 35.1% and 46.3% in the county and state, respectively. Similarly, 45% of the town’s residents speak Spanish, while only 18.7% and 29.3% of the county and state do. In addition, 15.7% of Bernalillo residents are foreign‐born—primarily from Mexico—while only 6.1% of the county’s residents and 9.9% of the state’s were born abroad. This likely explains why a higher proportion of Bernalillo residents speak English “less than well”—14.1% compared to 5.2% and 9.8% in the county and state. The fact that the town has a more similar make‐up to the state rather than the county is reflective of the dominance of Rio Rancho, which formed 66.5% of the county’s population in 2010, and the presence of several large Native American communities in the county. 2
Dr. Jeffrey Mitchell. Bernalillo MainStreet: Community Economic Assessment. University of New Mexico, Bureau of Business and Economic Research (BBER): October 2007. 3
2006—2010 American Community Survey 5‐Year Estimates 4
Mid‐Region Council of Governments. 2035 Regional Forecast. Approved April 2011. 5
See appendix for map of the DASZ areas in relation to the Town of Bernalillo boundaries. 6
Bernalillo MainStreet: Community Economic Assessment. 11 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 3. Select Population Characteristics Town of Bernalillo 2000 Town of Bernalillo 2010 % Change Town of Bernalillo 2000‐
2010 % Total Town of Bernalillo (2010) % Total Sandoval County (2010) 6,611 8,320 25.9% 8,320 131,561 Total Population Age Groups % Total New Mexico (2010) 2,059,179 Under 5 years 540 543 0.6% 6.5% 6.9% 7.0% 5 to 9 years 607 555 ‐8.6% 6.7% 7.5% 7.0% 10 to 14 years 572 548 ‐4.2% 6.6% 7.8% 6.9% 15 to 19 years 523 581 11.1% 7.0% 7.1% 7.3% 20 to 24 years 462 548 18.6% 6.6% 5.3% 6.9% 25 to 34 years 851 984 15.6% 11.8% 11.8% 13.0% 35 to 44 years 1,034 1,030 ‐0.4% 12.4% 13.4% 12.1% 45 to 54 years 915 1,256 37.3% 15.1% 15.3% 14.1% 55 to 59 years 282 621 120.2% 7.5% 7.0% 6.6% 60 to 64 years 217 541 149.3% 6.5% 6.0% 5.8% 65 to 74 years 357 692 93.8% 8.3% 7.2% 7.5% 75 to 84 years 211 302 43.1% 3.6% 3.4% 4.2% 40 119 197.5% 1.4% 1.3% 1.6% 31.9 38.8 21.6% 38.8 37.9 36.7 608 1,113 83.1% 13.4% 11.9% 85 years or over Median Age Total Senior Population (Aged 65+) 13.3% Sex Male 3,202 4,201 31.2% 50.5% 48.9% 49.4% Female 3,409 4,119 20.8% 49.5% 51.1% 50.6% Race, Ethnicity and Language* Hispanic or Latino 4942 5804 17.4% 69.8% 35.1% 46.3% White 3978 5255 32.1% 63.2% 68.0% 68.4% 49 74 51.0% 0.9% 2.1% 2.1% Black or African American Native American 259 439 69.5% 5.3% 12.9% 9.4% 52.6% 45.0% ‐14.4% 45.0% 18.7% 29.3% 603 1,048 73.8% 14.1% 5.2% 9.8% Foreign Born 9.7% Source: US Census, 2000 and 2010 unless otherwise indicated 15.7% 61.9% 15.7% 6.1% 9.9% Speaks Spanish Speaks English “less than very well”** *2010 language and place of birth data for Bernalillo was obtained from the 2006‐2010 American Community Survey 5‐year Estimates; 2010 data for Sandoval County and New Mexico was obtained from the 2010 American Community Survey 1‐year Estimates. **Refers only to the population ages 5 and over 12 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Bernalillo varies from the county and state in terms of age, having a slightly older population. The median age of Bernalillo residents is 38.8, up significantly from 31.9 in 2000, and higher than the county and state’s median age—37.9 and 36.7, respectively. This shift towards an older population is consistent with a nationwide trend, as the large Baby Boomer population reaches retirement age. Figure 3 illustrates the shift in age groups over time. While children and young adults continue to make up the largest portion of the community, their presence has gone from 43.8% of the population in 1990 to 33.4% in 2010. The proportion of seniors has grown to 13.4%, slightly higher than the county and state. Development in the last few years of active adult communities aimed at individuals 55 or older may have slightly raised the proportion of seniors in the community. Stakeholder input suggests that a lack of rental and affordable housing options has created an outward migration of youth and young families to neighboring Rio Rancho. Census data support the anecdotal information regarding a lack of housing opportunities for young families. The proportion of the population younger than 45 – i.e. younger families with children – has diminished in each of the decades since 1990. Figure 3. Population Distribution by Age Groups, Town of Bernalillo, 1990—2010 50.0%
45.0%
43.8%
40.9%
40.0%
35.0%
33.2%
33.4%
29.1%
28.5%
30.0%
24.2%
25.0%
21.4%
20.0%
15.1%
13.4%
15.0%
9.2%
8.0%
10.0%
5.0%
0.0%
1990
2000
< 24
25‐44
Source: US Census, 1990—2010 45‐64
2010
65+
Figure 4 below shows a population pyramid of Bernalillo’s current population by age group. It indicates a relatively stable population with little to no growth, based solely on the birth and death rates of the current population. However, as previously noted, much of Bernalillo’s growth will be based on in‐
migration, particularly of individuals commuting to Albuquerque and other areas for work. Furthermore, anecdotal evidence suggests that young families from Bernalillo wish to live in the community but are forced to live in neighboring Rio Rancho or other areas because of the lack of available housing. If more suitable housing were available to young people and families, the population pyramid would likely be broader at the bottom in the younger age groups. 13 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 4. Population Pyramid, Town of Bernalillo, 2010 90 years and over
80 to 84 years
70 to 74 years
60 to 64 years
50 to 54 years
40 to 44 years
30 to 34 years
20 to 24 years
10 to 14 years
Under 5 years
10
8
6
4
2
0
Female (%)
2
4
6
8
10
Male (%)
Source: US Census, 2010 Household data for the Town of Bernalillo is shown in Table 4. There is a smaller proportion of family households and households with children under 18 in Bernalillo compared to Sandoval County, though these are higher in the Town than in the state. The average household size and family size are also both smaller in Bernalillo than in Sandoval County as a whole. While most of the household data places Bernalillo between Sandoval County and the state, Bernalillo stands out in its proportion of female‐
headed households. There is a greater proportion of female‐headed households in general in Bernalillo—15.8% compared to 12.5% and 14.0% in the county and state, respectively—as well as more female‐headed households with children—10.5% in Bernalillo, compared to 8.4% and 9.5%. As discussed in the following section, these households are often more at risk of experiencing poverty. Table 4. Select Household Characteristics % Change % Total Town of Town of Town of Town of Bernalillo Bernalillo Bernalillo Bernalillo 2000 2010 2000‐
(2010) 2010 % Total Sandoval County (2010) % Total New Mexico (2010) Total Households 2,309 2,952 27.8% 100.0% 100.0% 100.0% Family Households With children under 18 years Married couple family With children under 18 years Female householder With children under 18 years 1,725 942 1,133 573 430 286 2,080 1,027 1,397 595 465 310 20.6% 9.0% 23.3% 3.8% 8.1% 8.4% 70.5% 34.8% 47.3% 20.2% 15.8% 10.5% 72.6% 37.2% 53.9% 24.7% 12.5% 8.4% 65.5% 34.5% 45.3% 19.8% 14.0% 9.5% 14 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Non‐Family Households Householder living alone Householder 65 years and older Households with individuals 65 years + Average family size Average household size % Change % Total Town of Town of Town of Town of Bernalillo Bernalillo Bernalillo Bernalillo 2000 2010 2000‐
(2010) 2010 584 466 159 467 3.30 2.86 872 723 269 821 3.15 2.65 49.3% 55.2% 69.2% 75.8% ‐4.5% ‐7.3% 29.5% 24.5% 9.1% 27.8% 3.15 2.65 % Total Sandoval County (2010) 27.4% 22.0% 7.9% 32.9% 3.22 2.75 % Total New Mexico (2010) 34.5% 28.0% 9.3% 33.6% 3.13 2.55 Source: US Census, 2000 and 2010 Income and Poverty While Sandoval County is the second wealthiest county in the state, that prosperity has not touched Bernalillo to the same extent, and its residents on average have a significantly lower incomes than those in both the county and New Mexico overall. In 2010, the median household income in Bernalillo was $36,167— less than 70% of the county’s median income, and about 90% of the state’s. Interestingly, only a slighter larger proportion of Bernalillo’s residents received social security or supplemental security income than those in the other municipalities, though the proportion of households receiving food stamps (SNAP) was more than double that of the county. Not surprisingly, Bernalillo residents are more likely to live in poverty. About a fifth of all individuals and families in Bernalillo experience poverty, including 34.6% of children (compared to 14% in Sandoval County and 26% in the state), and 23.1% of seniors (compared to 10.8% and 12.5% in the county and state, respectively). Table 6 looks more closely at the median income of various groups within Bernalillo. Single‐parent family households—whether headed by a male or female—and senior‐headed households have the most significant disparity in income, with female‐headed households earning less than 60% of the median household income. This is likely due to the discrepancy between households with a single earner and those with two or more working adults. In addition, families with children and households with a Hispanic householder earned slightly lower than the overall median income. 15 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 5. Income and Poverty, 1999 and 2009 Town of Town of % Change Bernalillo Bernalillo 1999‐2009 Income % Total % Total % Total Town of Sandoval New Bernalillo County Mexico Median Household Income $30,864 $39,167 26.9% $39,167 $57,158 $43,820 Median Family Income $36,286 $45,341 25.0% $45,341 $65,906 $52,565 Per Capita Income Households receiving Social Security (SS) income Households receiving Supplemental Security Income (SSI) Households receiving cash public assistance Households receiving food stamps/SNAP $13,100 $17,870 36.4% $17,870 $25,979 $22,966 533 715 34.1% 26.1% 27.2% 28.5% 161 189 17.4% 6.9% 4.1% 4.6% na 79 na 2.9% 2.1% 2.4% na 481 na 17.6% 7.4% 10.0% 1,178 1,784 51.4% 22.9% 11.4% 18.4% Families below poverty level 233 361 54.9% 19.9% 8.3% 13.9% Children under 18 below poverty level Individuals 65 years and older below poverty level 506 765 51.2% 34.6% 14.0% 26.0% 90 188 108.9% 23.1% 10.8% 12.5% Poverty Individuals below poverty level Source: US Census 2000; 2006—2010 American Community Survey 5‐Year Estimates Table 6. Median Income by Demographic Characteristics, Town of Bernalillo, 2010 Median Income % Difference from (Median Household Income Households $39,167 0.0% Families $45,341 15.8% With children under 18 years $36,136 ‐7.7% With no children under 18 years $55,399 41.4% Married couple families $60,647 54.8% Female‐headed families, no husband present $22,348 ‐42.9% Male‐headed families, no wife present $26,833 ‐31.5% Hispanic or Latino, any race $36,635 ‐6.5% White, not Hispanic $45,896 17.2% Native American $46,200 18.0% Householder 65 years or older $23,188 ‐40.8% Source: 2006‐2010 American Community Survey 5‐Year Estimates At the same time, new subdivisions have attracted higher income households, increasing percentage of households with incomes above $50,000 since 1999 (see Figure 5). Nevertheless, as shown in Table 7, Bernalillo lags behind Sandoval County and New Mexico. In Bernalillo, 44% of households earned less 16 | T o w n o f B e r n a l i l l o H o u s i n g P l a n than $35,000 in 2010, compared to 28% and 40.5% in the county and state, respectively. Meanwhile, just 18.8% of Bernalillo households were in the $75,000 or higher income brackets, while 35.6% and 26.4% of county and state households were in these higher income brackets. Figure 5. Income Distribution for Town of Bernalillo, 1999—2010 35.0%
29.6%
30.0%
26.1%
25.0%
18.9%
20.0%
15.0%
19.5%
17.7%
16.0%
13.4%
12.7%
9.6%
8.2%
10.0%
7.0%
7.6%
5.0%
11.2%
2.4%
0.0%
Less than $10,000
$10,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
% Total Households 1999 $50,000 to $74,999
$75,000 to $99,999
$100,000 or more
% Total Households 2010
Source: US Census 2000, 2006‐2010 American Community Survey 5‐Year Estimates Table 7. Income Distribution, 2010 Total # Households, Town of Bernalillo % Total Town of Bernalillo % Total Sandoval County % Total New Mexico Less than $10,000 264 9.6% 5.7% 9.3% $10,000 to $24,999 715 26.1% 14.0% 19.3% $25,000 to $34,999 225 8.2% 8.3% 11.9% $35,000 to $49,999 484 17.7% 15.5% 15.2% $50,000 to $74,999 534 19.5% 20.9% 17.9% $75,000 to $99,999 208 7.6% 14.5% 10.9% $100,000 or more 308 11.2% 21.1% 15.5% Source: 2006‐2010 American Community Survey 5‐Year Estimates Table 8 shows the estimated percentage of Bernalillo households at each income level in 2010 based on the Census household distribution and the FY 2010 area median income. The AMI for a four person household was used to develop this estimate. Nearly one quarter of Bernalillo residents had incomes at 30% of AMI or below. An additional ten percent had incomes at 40% of AMI or below. Nearly 80% of the Town’s households fell within an income range that might qualify for some type of housing assistance.
17 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 8. Estimate of Households by % AMI, 2010 Income Range $10,000 to $24,999 2010 AMI Less than $10,000 30% $18,100 264 40% $24,120 50% $30,150 60% $36,180 70% $42,210 80% $48,250 90% 100% % AMI $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 or more Total % of Total 386 650 23.7% 287 287 10.5% 116 158 5.8% 38 147 5.4% 195 195 7.1% 195 195 7.1% $54,270 91 148 5.4% $60,300 129 129 4.7% 120% $72,360 Over 120% $72,360+ 258 258 9.4% Total 42 264 109 715 56 225 484 56 208 308 572 20.9% 534 208 308 2,738 100.0% Source: US Census, HUD, Sites Southwest Groups with Special Needs There are several categories of households and individuals in Bernalillo that may have special housing needs. Single‐parent Households. Single‐parent households are generally at an income disadvantage because there is often only one income earner. As noted in the previous section, Bernalillo has a higher proportion of female‐headed households than both Sandoval County and the state. The median income for female‐headed households is $22,348, the lowest of any group and nearly 43% less than the overall median household income. Male‐headed households with no wife present do not fare much better, earning a median income of $26,833. Affordable rental opportunities are needed to provide adequate housing for these families. In 2010, there were 310 female‐headed households with children under 18, and 94 male‐headed single‐parent households with their own minor children. Seniors. Seniors are one of the fastest growing demographic groups in the country. By 2030, the US Census Bureau predicts that 26.4% of the New Mexico population will be made up by seniors.7 Seniors often experience changing housing needs as they age. Initially, many wish to downsize and have less responsibility for the maintenance that comes from owning one’s home, while later, they may have health issues that require additional care and special housing needs. Potential housing types that may appeal to seniors include active living (retirement) communities that provide a range of opportunities (both independent and group housing care facilities), condominiums and apartments. In Bernalillo, it is common for multiple generations to live in the same household, or in close proximity to family, and many seniors may wish to stay in their current houses. However, these may require modifications that provide handicap‐accessibility. As they age, seniors may also be less likely to be able to take care of their homes, and would benefit from rehabilitation programs. 7
US Census Bureau, Interim Population Projections, 2005. 18 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Because seniors are often on a fixed income, there is an even greater need for affordable housing. In Bernalillo, senior‐headed households have a median income of $23,188 (over 40% less than the median household income), and 23.1% of all seniors live in poverty. Currently, the Villa Elena Apartments provide subsidized housing to low income seniors, but the waiting list is approximately two years long for new tenants. Local developers and Realtors have indicated that there is a potentially strong market for active living and senior housing in Bernalillo, though it is likely to be of a quality and price that will only be accessible to outsiders of the community, whether from the greater metropolitan area or out‐
of‐state. It will be important to find ways that local seniors have access to affordable housing options as well. Non‐profits that provide housing assistance under specific programs indicated a need for affordable rentals for seniors who do not meet the requirements of their specific programs. They noted that elderly women in particular are finding it difficult to remain in their homes. Their incomes may be reduced when they are widowed as social security benefits and pension income decreases. Assistance with repair and rehabilitation may not be the best solution if these individuals have inadequate income, and they are not physically able to maintain their homes after repairs are completed. Individuals with Disabilities. Individuals with physical disabilities and mental illnesses, including substance abuse issues, have a variety of unique housing needs. Those with physical disabilities may require ADA‐accessible homes, an additional living space for a full‐time caregiver within their homes, or an assisted living facility. People with severe mental health issues may not be capable of living on their own, and could also require assisted living facilities, while those with substance abuse problems often require transitional housing that provides a range of counseling, education, and employment services. Organizations that serve the disabled population in Bernalillo include:  Hogares: provides behavioral and mental health services to youth and their families  La Buena Vida: provides mental health and substance abuse counseling services as part of their supportive housing program for people who are homeless and have a chronic disability  Abrazos : provides services to individuals and families whose members have developmental delays or disabilities According to input from these organizations, there are currently no assisted living facilities in Bernalillo (or Sandoval County) that provide services to individuals with mental health or substance abuse problems. Transitional and longer term supportive housing programs available are limited in scope to specific groups, primarily the homeless with chronic disabilities. Clients may be referred to programs in Albuquerque, though these often have limited capacity to accept them. In addition, families with disabled individuals are often in need of affordable housing, as they sometimes have a lower income due to one adult taking care of the disabled individual rather than working full‐time. The most recent data for the number of disabled individuals in Bernalillo is from 2000 (see Table 9). Because disabilities can run the gamut from the impact they have on an individual’s life, employment capabilities, and housing needs, it is hard to estimate the precise housing needs (in terms of numbers) of disabled people in Bernalillo. 19 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 9. Population with a Disability Town of Bernalillo 1999 % Total Town of Bernalillo (2010) % Total Sandoval County (2010) % Total New Mexico (2010) Disabled Individuals 5 to 17 years With a self‐care disability 18 to 64 years With a self‐care disability Going outside the home disability Employment disability With independent living disability 65 years and older With a self‐care disability Employment disability 3.4% 0.8% 38.0% 2.0% 18.5% 29.1% na 44.1% 7.4% 21.9% na na na na na na na na na na 2.8% 1.2% 12.0% 2.3% na na 3.7% 36.9% 7.4% 15.1% 4.3% 0.8% 11.3% 2.3% Na Na 4.1% 41.4% 9.6% 17.3% Percent employed (disabled population, ages 21 – 64) 66.3% na na na Source: US Census, 2000 and 2010 American Community Survey 1‐year Estimates Note: Disabilities are calculated for the civilian non‐institutionalized population. Town of Bernalillo data was only available from the 2000 Census. Disabilities were determined for age groups 5 to 15 years (shown above as 5 to 17), and 16 to 64 years (shown here as 18 to 64 years) for Bernalillo. Sandoval County and New Mexico disability data was available from the 2010 American Community Survey 1‐year Estimates. Women Experiencing Domestic Violence. Women experiencing domestic violence have a range of housing needs. According to the Executive Director of Haven House, which has an emergency shelter serving about 300 women and children per year in Sandoval County, their clients are often in need of both affordable housing and additional supportive services such as mental health services and substance abuse counseling. Many Haven House clients have little more than a high school education and may not have financial resources available to them. Their job options and earning potential are limited, and, therefore, so is their ability to find suitable housing. Most of these women need affordable housing, including rental opportunities and subsidized housing, and some require housing with more specialized services. These would include long‐term transitional housing that would provide counseling and life skills, assisted living for women with debilitating mental health problems, and group homes for women recovering from substance abuse. While there are some facilities in Albuquerque that provide these services, they do not have the capacity to serve many Bernalillo and Sandoval County residents. Haven House reported that they are able to place one or two clients per year in facilities in Albuquerque out of 50‐75 clients who are from the Bernalillo/Rio Rancho area. Individuals at Risk of Homelessness. There are currently no shelters serving homeless individuals in Sandoval County. According to a Community Support Worker at Hogares, there is a need for an emergency shelter to serve youth and adults. Troubled youth face housing crises when they leave their homes temporarily, and end up sleeping in parks or other public places. In addition, young adults from the outlying Pueblos often come looking for work in Rio Rancho and Bernalillo, and also end up on the streets until they are able to find a way to return home. Hogares estimates that a shelter with 10‐15 beds would be sufficient to meet the need in Bernalillo. 20 | T o w n o f B e r n a l i l l o H o u s i n g P l a n There are resources for short‐term and long‐term housing that are part of a continuum of care to end and prevent homelessness. However, these resources are limited and do not meet all of the needs identified by the service providers based on their waiting lists and calls from people who are not eligible for their specialized services. La Buena Vida provides long term supportive housing through the HUD Shelter Plus Care Program for people who meet the HUD definition of homelessness and have a chronic disability. Approximately 22%, or 9, of the 42 households in Sandoval County using vouchers under this program are in Bernalillo. The program has a waiting list of 58, of which 15 to 20 percent (up to 12 individuals and families) are Bernalillo families. An estimated 1/3 of the units in Bernalillo that have been considered for the program did not pass habitability inspections. Another one or two units were upgraded by the landlord to become eligible. Because of the age of housing in Bernalillo, mobile homes often pass the habitability inspections more easily than older conventional construction. The breakdown of units needed by type is approximately 25‐30 percent each one‐bedroom and three‐bedroom units and 45‐50 percent two bedroom units. Catholic Charities recently began providing short term assistance to prevent homelessness in Sandoval County through its RAP Program and longer term assistance through its La Luz Program. Help NM administers the CSBG emergency services program in Sandoval County to provide one‐time emergency assistance to prevent homelessness. Economic Profile Bernalillo is located along major transportation corridors—both Interstate 25 and the railroad—, and is positioned between the metropolitan areas of Albuquerque, Rio Rancho and Santa Fe. The recent development of two Rail Runner stations in Bernalillo put it in a favorable position for future economic and housing growth. The Bernalillo TOD (Transit Oriented Development) Plan envisions lively mixed use centers around the stations that are pedestrian‐friendly, support local small business development, reflect the town’s character and history, and include a variety of housing types, including affordable housing. As improvements are made to the two stations and TOD areas, Bernalillo can expect its economy and housing sector to blossom. Despite being a fairly small community, Bernalillo has a diversified economy, including a notable manufacturing sector. Retail trade has also been an extremely important sector, especially since the opening of a Wal‐Mart in Bernalillo in 2008. The total gross receipts for Bernalillo in 2011 were nearly $305 million. (In comparison, nearby Corrales, which has roughly the same size population, had a total of $91.9 million in 2011). Both total gross receipts and taxable gross receipts have increased by about a third since 2006. 21 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 6. Total Gross Receipts for the Town of Bernalillo, 2006‐2011 350
315.3
300
250
282.5
283.8
304.8
286.9
237.4
200
145.2
150
159.8
147.4
143.0
150.2
110.4
100
50
0
2006
2007
2008
Total GRT, in millions $
2009
2010
2011
Total Taxable GRT, in millions $
Source: New Mexico Taxation and Revenue Department As shown in Figure 7, wholesale and retail trade make up a significantly larger portion of gross receipts, while manufacturing and construction have fallen from their peaks in 2007 and 2008. Figure 7. Total Gross Receipts by Sector for the Town of Bernalillo, 2006‐20011 $160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
2006
2007
2008
Construction
Wholesale/Retail Trade
Other Services (Except Public Administration)
2009
2010
2011
Manufacturing
Accomodation and Food Services
Source: New Mexico Taxation and Revenue Department, 2012 Approximately 63% of Bernalillo residents ages 16 and older are employed, while 6.5% are unemployed. Nearly three quarters are employed by private businesses, one fifth are government workers, and the remaining 5% are self‐employed. Thirty percent of Bernalillo workers work in sales and office occupations, and nearly a quarter are employed in management, business, science and arts occupations. Meanwhile, the top industry sectors for Bernalillo workers are education, health care and social 22 | T o w n o f B e r n a l i l l o H o u s i n g P l a n assistance; construction; arts, entertainment, recreation, accommodation and food services; and retail trade (see Table 11). According to the 2006‐2010 American Community Survey 5‐Year Estimates, 34.1% of Bernalillo residents worked in the town, while the remaining 65.9% worked outside of the town. Slightly more than half—
55.5%—worked outside of Sandoval County. Based on the travel times to work shown below in Table 10, the majority of those working outside of Sandoval County are likely employed in Albuquerque or other parts of Bernalillo County, though a small portion (the 6.9%) likely work in Santa Fe. Table 10. Travel Time to Work, Bernalillo Residents Travel time to work % Total 14 minutes or less 32.3% 15 to 24 minutes 33.3% 24 to 39 minutes 27.6% 40 minutes or more 6.9% Source: 2006‐2010 American Community Survey 5‐Year Estimates 23 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 11. Employment Characteristics, 2010 % Total Town of Bernalillo % Total Sandoval County % Total New Mexico Employment, Population 16 and older In labor force 63.2% 64.8% 61.9% Not in labor force 36.8% 35.2% 38.1% 6.5% 6.7% 7.2% Unemployed Class of Worker Private wage and salary worker 74.2% 73.6% 69.9% Government workers 20.9% 20.0% 22.3% 5.0% 6.3% 7.5% Management, business, science, and arts occupations 23.9% 37.8% 34.4% Service occupations 18.3% 15.0% 19.0% Sales and office occupations 30.0% 28.3% 24.3% Natural resources, construction, and maintenance occupations 16.1% 10.1% 12.7% Production, transportation, and material moving occupations 11.7% 8.7% 9.6% 1.8% 1.2% 4.1% 16.8% 7.6% 8.5% Manufacturing 9.1% 10.8% 5.3% Wholesale trade 1.7% 2.3% 2.2% Self‐employed Occupation Industry Agriculture, forestry, fishing and hunting, and mining Construction Retail trade 11.8% 12.5% 11.6% Transportation and warehousing, and utilities 4.3% 4.3% 4.6% Information Finance and insurance, and real estate and rental and leasing Professional, scientific, and management, and administrative and waste management services 2.4% 2.3% 1.9% 4.3% 6.4% 5.1% 6.1% 11.9% 10.8% Educational services, and health care and social assistance 18.6% 19.6% 23.4% Arts, entertainment, and recreation, and accommodation and food services 13.8% 9.3% 10.3% 2.8% 4.0% 4.7% 6.3% 7.8% 7.5% Other services, except public administration Public administration Source: 2006‐2010 American Community Survey 5‐Year Estimates 24 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Demographic and Community Profile Summary The following are salient characteristics about Bernalillo in its regional context, and may have implications for the development of affordable housing and housing programming.  Bernalillo has a much higher Hispanic population than Sandoval County, as well as more foreign‐born and non‐English speaking residents.  Bernalillo residents and households on average have a much lower income level than those in surrounding Sandoval County. This means that Bernalillo households will likely have a greater need for affordable housing than other communities in southern Sandoval County and in the Albuquerque metropolitan area. The housing profile and analysis in the next section looks more closely at housing costs and affordability.  Bernalillo’s senior population is growing, but young people still make up the largest demographic in the town. Whether or not they are able to remain in the community will depend on the availability of affordable housing suitable for young families.  Bernalillo has a small population of homeless or others with special needs. Appropriate housing for these populations include short‐term emergency shelter and longer term transitional housing and residential treatment programs that address the special needs. Regional context  There is strong continued population and employment growth in Rio Rancho.  There is an increasing senior population, including well‐off households looking to downsize (whether from nearby Placitas or around the country).  The location of Rail Runner Express stops in Bernalillo, its geographic position between Albuquerque, Santa Fe and Rio Rancho, and its scenic views of the Bosque makes the town ripe for future residential development. In summary, Bernalillo is somewhat of an enclave population, unique from the surrounding county, with a long history and families who have lived in the same area for generations. Opportunities for future housing development exist, but if only market‐driven, there will not be affordable options for local residents. The risk of gentrification is high if housing is left only to market forces. 25 | T o w n o f B e r n a l i l l o H o u s i n g P l a n IV. Housing Profile and Analysis As noted in the Community Profile, Bernalillo is one of the oldest settlements in the region. It has a strong agricultural past, and grew in a north‐south fashion on the east side of the Rio Grande along NM 313 (previously US 85—the only road between Albuquerque and Santa Fe as late as the 1940s). Residents value home ownership, and the uniqueness of their community. They appreciate being able to live in single family home, and yet enjoy community spaces created by shared cultural events, close dwelling units, and public places. In the last decade, there has been significant housing development on the west side of the river in the Santiago and Bosque Encantado neighborhoods. These neighborhoods represent a marked change from the dense housing patterns in the heart of Bernalillo, favoring the more typical suburban style development prevalent in Rio Rancho. Anecdotal evidence suggests that these neighborhoods are not well integrated into Bernalillo; the barrier of the river, the different housing style, and the tendency of residents to be newcomers to the community rather than long‐standing residents serves to separate them, both literally and figuratively from the heart of the town. The core of Bernalillo itself includes the Cocinitas, Sawmill, and Old Town neighborhoods (see Figure 8). These neighborhoods feature dense, single‐family homes. Many are old, and some even have historic character, or were built on foundations from the original settlement, dating to the 1700s and 1800s. Abode homes are not uncommon in these neighborhoods. The Rio Grande neighborhood has large tracts of vacant land, but is still close to the core of Bernalillo, and has been identified as a potential growth area for new single family housing. El Llanito also has vacant land, but much of this is still being actively farmed, and contributes to the community’s rural character. The Mountain View and Charing Cross neighborhoods are almost exclusively made up of mobile homes, and provide a source of affordable housing to the community. The Gutierrez neighborhood is a mix of single family site built homes and mobile homes. 26 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 8. Bernalillo Neighborhoods 27 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Housing Density There is a range of housing densities in Bernalillo (see Figure 9), with variation in density from block to block in many neighborhoods. The historic pattern of development in Bernalillo has been fairly small lots, and newer developments include large lot subdivisions and typical suburban subdivisions. Lower density areas include Bosque Encantado, which has a density of less than three dwelling units per acre (du/acre), and blocks of the Rio Grande neighborhood, which have densities of three to seven dwelling units per acre. Representative blocks in the Mountainview, Charing Cross and Gutierrez neighborhoods also have densities ranging from three to five and five to seven du/ac. Density in the Santiago neighborhood also varies by block. A majority of blocks in Santiago have density in the five to seven du/acre range, though there are several in the seven to nine du/acre range. The oldest neighborhoods—those in the core of Bernalillo—tend to have smaller lots, and consequently, higher densities. As shown on the map, blocks in the Sawmill and Cocinitas neighborhoods have densities ranging from seven to nine units per acre or greater than nine units per acre. The Transit‐Oriented Development Plan for Bernalillo identified the following overall densities for the older neighborhoods: 10.3 du/ac Cocinitas (North): Cocinitas (South): 9.15 du/ac Sawmill townhouses: 14.16 du/ac Sawmill (overall): 11.08 du/ac Residential densities in other additions that are within or near the transit oriented development areas range from 6.0 to 14.26 units per acre. 28 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 9. Representative Densities of Bernalillo Neighborhoods 29 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Housing Construction Trends Housing growth peaked in 2006 in Bernalillo, and has leveled out in the years following. Since 2003, the Town of Bernalillo has granted a total of 1,031 building permits for new homes. Of those, 842 were single family homes and 188 were mobile homes, and 1 was for a condominium project. Figure 10 shows the annual number of permits for new single family site‐built homes from 2003 through 2011. The annual number of units peaked in 2006 with 242 new units. In 2008, the Town saw a decline to 63 units, but building has slowly resumed. Residential construction in Bernalillo mirrors the pattern in Rio Rancho and Albuquerque, with a very active market in the mid 2000’s, and a crash in about 2008. Local officials believe that the housing boom of 2006‐2007 was somewhat of an anomaly, and the current level of housing development is consistent with the town’s past. The vast majority of new single family site‐built homes were in the Santiago and Encantado developments, with the exception of a few new developments in the eastern portion o f the plan area. New mobile homes, meanwhile, were permitted almost exclusively in the Mountainview, Charing Cross, Gutierrez and El Llanito neighborhoods (see Figure 11 and Figure 12). Figure 10. Building Permits, Town of Bernalillo, 2003‐2011 300
242
250
200
150
117
94
93
100
93
70
63
48
50
20
7
35
25
19
9
19
24
11
18
0
2003
2004
2005
2006
2007
Single Family Homes
2008
2009
2010
Mobile Homes
Source: Town of Bernalillo Planning and Zoning Department, 2012 th
Note: Data regarding permits granted for the 4 quarter of 2009 was not available and is not included here. 30 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 2011
Figure 11. Bernalillo Building Permits, Single Family Homes (2003‐2011) 31 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 12. Bernalillo Building Permits, Mobile Homes (2003‐2011) 32 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Characteristics of the Existing Housing Stock As of 2010, there were 2,993 housing units in Bernalillo. This represents a 21% increase over 2000, when there were 2,473 total housing units. MRCOG projects that total housing units in Bernalillo by 2035 will reach 5,660 – nearly doubling the number of units. It should be noted that the MRCOG 2035 projections were very aggressive for the entire region, and that actual growth to 2010 did not meet the growth projected in this data. The projection should be considered a high growth scenario. In Bernalillo, 91.5% of houses are occupied; about three fourths of these are owner‐occupied and the remainder is renter‐occupied. Despite the fact that nearly a quarter of homes are renter‐occupied, there are few market rate apartment complexes in the plan area. The majority of homes are single family detached units (54.8%), and another significant portion is made up of mobile homes (36.2%). The percentage of mobile homes in Bernalillo is twice that of the state and over four times that of the county. Approximately one‐third of owner‐occupied mobile homes and 22 percent of renter occupied mobile homes were built prior to 1980. Most of these older units would not meet the HUD‐code building standard introduced in 1976. The American Community Survey 5‐year estimates report the median value of all owner‐occupied housing in Bernalillo to be $106,600. The median value of owner‐occupied mobile homes is $34,100. Although there were only five mobile homes for sale in Bernalillo in June 2012, as described further in the market analysis, the prices are consistent with the Census findings. Mobile home prices were $48,000 to $65,000, except for one unit on a large lot located on a major commercial corridor and zoned for commercial use. Single family home prices began at $95,000, except for two that were either very small (850 sf) or in very poor condition. Mobile homes and manufactured homes on permanent foundations were priced more favorably to conventional construction. A review of homes available for sale in December 2012, six months after the original search, showed that four of the five mobile homes were still for sale. Prices had been reduced an average of ten percent, with reductions ranging from two to 23%. While the range of price reductions on conventional homes was similar, the typical reduction was less than five percent. An independent study conducted by the Southwest Regional office of Consumer’s Union found that there is significant variation in the appreciation of mobile homes and manufactured homes relative to site built homes.8 When a mobile or manufactured home is on owned land, permanently installed, maintained over time, and in a preferred neighborhood, it appreciates in value similar to conventional construction. On the other hand, units on leased land, units on leased land that have been moved or must be moved if sold, that are in less desirable neighborhoods, and are not well maintained tend to depreciate in value. The property along Charing Cross Loop provides ½ acre mobile home sites for lease at a rate of $300 per month. There is very low turnover, with most tenants having rented for many years. There are rarely vacancies, and the sites that become available are rented quickly. New restrictions on mobile home placements (i.e. foundation requirements) and the cost of new units have been disincentives to the purchase of new mobile homes. The units on Charing Cross Loop are older single‐wide units. 8
Consumers Union, Southwest Regional Office: Austin, Texas, Appreciation in Manufactured Housing: Stereotypes and Data, April 2003. 33 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 12. Housing Characteristics, 2010 Total # Town of Bernalillo Total % Town of Bernalillo Total % Sandoval County Total % New Mexico Total housing units 2,993 100.0% 100.0% 100.0% Occupied housing units 2,738 91.5% 89.2% 85.2% Owner‐occupied (% total occupied) 2,057 75.1% 81.3% 69.6% Renter‐occupied (% total occupied) 681 24.9% 18.7% 30.4% 255 8.5% 10.8% 14.8% Homeowner vacancy rate 2.3% 2.3% 2.0% 2.1% Rental vacancy rate 9.1% 9.1% 7.9% 8.3% Average HH size for owner‐occupied 2.92 2.92 2.75 2.67 Average HH size for renter‐occupied 2.68 2.68 2.77 2.46 1, detached 1639 54.8% 82.8% 64.3% 1, attached 126 4.2% 3.1% 3.8% 2 13 0.4% 0.2% 1.9% 3 to 4 13 0.4% 2.7% 3.8% 5 to 19 103 3.4% 1.6% 5.4% 8 0.3% 1.8% 4.0% 1084 36.2% 7.8% 16.7% 7 0.2% 0.1% 0.1% Vacant housing units Type of housing by units in structure 20 or more Mobile home Boat, RV, van, etc. Source: 2006‐2010 American Community Survey 5‐Year Estimates About 15% of the housing stock in Bernalillo was built in the last decade, with an additional 45% built during the 1980 and 90s. Although some of the housing stock is not very old, the prevalence of mobile homes in the plan area has an impact on the overall condition of housing and the appearance of the community. As noted previously, there are a significant number of homes in the heart of Bernalillo that have historic character and are made of adobe. Adobe requires regular maintenance, and some families may not be able to repair them adequately, particularly seniors or low‐income individuals. The Town could partner with a non‐profit skilled in adobe construction to repair these homes. A windshield survey revealed that there are several neighborhoods in Bernalillo that would benefit from rehabilitation efforts. These include the Sawmill and Cocinitas neighborhoods—both made up of older single family homes—as well the Mountain View and Charing Cross neighborhoods, which consist primarily of mobile homes. In Sawmill, it is estimated that approximately 75‐80% of homes are in need of rehab, while about 40‐50% are in need of rehab in the Cocinitas neighborhood. The Mountain View neighborhood includes mostly owner‐occupied homes, and may benefit from programs that encourage mobile home owners to transition to site‐built homes, or to build a permanent foundation for their manufactured homes. The majority of mobile homes in Charing Cross is renter‐occupied, and therefore may face more rehabilitation challenges. The Gutierrez neighborhood has a mix of mobile homes and site‐built homes. About 30% of all homes in that neighborhood are in need of rehabilitation. The plan recommends that mobile homes older than 1980 be targeted for rehabilitation or replacement. 34 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Other indicators of housing condition include whether or not homes have complete kitchen and plumbing facilities. In Bernalillo, 2.7% of housing units lack complete kitchen facilities, while 2.3% lack complete plumbing. Both of these indicators are higher than those in the county and state. In addition, 5% of Bernalillo housing units are overcrowded, while an addition 0.7% are severely overcrowded. Table 13. Housing Condition Indicators, 2010 Total #,
Town of Bernalillo Total %,
Town of Bernalillo Total %, Sandoval County Total %, New Mexico Year Structure Built 2000 or later 438 14.6% 28.3% 13.3% 1990 to 1999 717 24.0% 25.2% 18.6% 1980 to 1989 643 21.5% 22.2% 17.8% 1970 to 1979 532 17.8% 14.6% 19.1% 1960 to 1969 177 5.9% 4.1% 10.5% 1950 to 1959 193 6.4% 2.0% 10.6% 1940 to 1949 104 3.5% 1.0% 4.5% 1939 or earlier 189 6.3% 2.6% 5.7% Lacking complete kitchen facilities 74 2.7% 1.6% 1.2% Lacking complete plumbing facilities 63 2.3% 1.5% 1.1% 2,329 85.1% 75.5% 67.5% 53 1.9% 9.3% 10.8% 260 9.5% 7.7% 14.0% 2 0.1% 0.4% 0.1% 87 3.2% 6.9% 7.1% Solar 0 0.0% 0.2% 0.3% No fuel used 7 0.3% 0.0% 0.2% 136 5.0% 2.0% 2.4% 19 0.7% 0.8% 0.8% Housing Facilities Home Heating Fuel Utility gas Bottled, tank, LP gas Electricity Fuel oil, kerosene, etc. Wood, coal, or other fuel Overcrowded Housing Units Overcrowded Severely overcrowded Source: 2006‐2010 American Community Survey 5‐Year Estimates Many rental properties are older structures, and owners have built additions and made repairs themselves over the years. These homes may not meet HUD housing quality standards. Non‐profit service providers with clients in Bernalillo note that about 1/3 of the units considered for affordable rentals do not meet HUD standards. In an additional ten percent of cases, landlords make changes to meet the standards. Landlords are most willing to make minor changes – replacing existing kitchen and bathroom electrical outlets with GFCI outlets or replacing cracked window panes, for example. Because mobile homes are newer, on average, than conventional construction, they are more likely to pass inspection. 35 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Housing Affordability and Market Analysis There are several ways to determine the level of affordable housing in a given community. The first is by examining the number of households experiencing a housing cost burden. A cost burden indicates that households are paying a disproportionate share of their income for housing, and exists when a household pays over 30% of their income on housing and related expenses. The analysis of housing affordability and the current housing market indicates that there is a huge issue with affordability for the Town’s low and moderate income residents. The high percentage of cost burdened households and the dramatic mismatch between local incomes and new home prices indicate major issues with gentrification and housing affordability in Bernalillo. According to the most recent data from the American Community Survey, 31.7% of Bernalillo households are experiencing a housing cost burden—about the same percentage as households in the County and State (see Table 14). Owners fair better in Bernalillo; just less than a quarter experience a housing cost burden, while 54.8% of renters have a housing cost burden. When comparing housing burden by income group, it is clear that households in the lowest income brackets are much more likely to experience a housing cost burden (see Table 15). Of those earning between $20,000 and $34,999, 49.3% of homeowners and 43.1% of renters have a cost burden, while in the lowest income bracket—
those earning $20,000 or less—a striking 62.5% of owners and 87.8% of renters have a housing cost burden. Table 14. Housing Units with a Housing Cost Burden Total Number, Town of Bernalillo Total Owner‐Occupied Renter‐Occupied % Total, Town of Bernalillo % Total, Sandoval County 31.7% 24.0% 54.8% 31.3% 28.5% 43.8% 867 494 373 % Total, New Mexico 30.5% 25.3% 42.4% Source: American Community Survey, 2006‐2010 Table 15. Bernalillo Housing Units with a Housing Burden by Income Level Owner‐Occupied Annual Household Income Total Number Total Percent Renter‐Occupied Total Number Total Percent Less than $20,000 220 62.5% 331 87.8% $20,000 to $34,999 152 49.8% 25 43.1% $35,000 to $49,999 50 13.4% 17 18.3% $50,000 to $74,999 41 8.2% 0 0.0% $75,000 or more 31 6.4% 0 0.0% Source: American Community Survey, 2006‐2010 In addition to examining the number of cost burdened households, another way to measure housing affordability is by determining the price‐to‐income ratio, which compares the median price of homes for sale with the median household income in a given community. 36 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Homes for Sale In 2008, Grubb & Ellis reviewed housing affordability in Bernalillo.9 This study found that only 14.6 percent of the homes listed for sale at the time were listed for sale at less than $200,000. The median price of homes listed for sale was $335,000, which was over $150,000 higher than the metro area median at the end of 2007. The study had several recommendations, including the steps taken in this Affordable Housing Plan to inventory vacant land, review codes, and suggest code amendments to make affordable housing development more feasible. A review of the housing market in 2012 indicates that homes are still priced out of the affordable range for most Town residents. A current snapshot of the current local housing market was made by reviewing MLS listings for Bernalillo on June 27, 2012. A total of 63 homes were available for sale in Bernalillo on that date10. The median price of homes for sale was $305,975, while the median household income was $39,167. The 2012 price‐to‐income ratio of median single family home price in Bernalillo to median household income is 7.81. In other words, it would cost a family at the median income level nearly 8 times their annual income to purchase the median‐priced home. In comparison, the price‐to‐income ratio nationwide was 2.83 as of January 1, 2012.11 Note that this measure only includes the sale price of the home, and does not take into account financing costs, which could make the ratio even higher. Regardless, whether considering housing burden or price‐to‐income ratio, Bernalillo is clearly facing an affordable housing problem. The issue is even more notable when the prices of homes are broken down into categories and compared to the Area Median Income (AMI). The AMI is determined by the Department of Housing and Urban Development (HUD), and is used to determine eligibility of households for various housing programs. For Sandoval County, including Bernalillo, the 2012 AMI is $61,000. Based on that measure, only 17.6% of homes for sale are affordable to people earning less than 100% of the AMI, which is about 61.7% of the total Bernalillo population. Meanwhile, 73.5% of homes are available at prices affordable only to households earning 120% or more of the AMI. Note that the actual median household income in Bernalillo is significantly lower than the Area Median Income and that of the County, meaning that even fewer homes are affordable to Bernalillo residents. Stakeholder interviews and community input indicated that the household types most in need of housing in Bernalillo include young individuals, young families, and the local essential workforce, which includes teachers, firefighters, police officers and EMTs. These occupations are vital to the functioning and safety of a community, but unfortunately, people in those professions are often unable to live in the same places they work, as is the case in Bernalillo. Information obtained in interviews and public meetings further noted that young adults who have grown up in Bernalillo and have family there would prefer to live in the Town. Because of the lack of 9
Schaefer, Ken, Grubb & Ellis New Mexico, Town of Bernalillo Housing Affordability Study, May 2008. Note: This count includes site‐built single family homes, mobile homes, and condominiums, both built and not yet built. Not built homes were for sale in subdivisions and were not available to be sold as vacant lots or for other housing plans. The count excludes vacant residential lots or homes available only in active adult communities, as those are not available to the general public. 11
Gudell, Svenja. “Comparing Price‐to‐Income Ratios to Affordability Across Markets.” Zillow Real Estate Research, June 29, 2012. 10
37 | T o w n o f B e r n a l i l l o H o u s i n g P l a n housing affordable to young families, the Town’s youth end up living in adjacent communities. Both affordable and entry level market rate housing are needed to meet this demand. The lack of affordable housing for the community’s young adults and the large number of cost burdened households indicate an urgent need for the Town and housing providers to address the issues of housing costs and lack of supply. Table 16. Homes for Sale by Affordability for Different Income Levels* Household Income Percentage of Area Median Income (AMI) Approximate % of Households at this Income Level Affordable Monthly Housing Costs Affordable Home Price Total Homes in Price Range Currently on the Market $18,300 30% AMI or less 24% Up to $458 $71,007 or less $24,400 30%‐40% AMI 11% $458‐$610 $71,007‐$94,676 $30,500 40%‐50% AMI 6% $610‐$763 $94,676‐$118,346 $36,600 50%‐60% AMI 5% $763‐$915 $118,346‐$142,015 1 condo (unbuilt) 1.5% $48,800 60%‐80% AMI 14% $915‐$1,220 $142,015‐$189,353 2 single family 2.9% $61,000 80%‐100% AMI 10% $1,220‐$1525 $189,353‐$236,901 5 single family 7.4% $73,200 100%‐120% AMI 9% $1,515‐$1,830 $236,901‐$284,239 1 single family 1.5% $73,201+ 120% AMI+ 21% $1,830+ $284,239 or more 1 mobile home‐
commercial lot 49 single family 73.5% 1 mobile home 1 single family 1 mobile home 1 single family 1 mobile home 1 mfg‐perm foundation 3 single family Percent Total 2.9% 2.9% 7.4% Source: Homes.com, Summer 2012 * Does not include Alegria active adult community, which has age restrictions. In addition to the homes for sale surveyed above, Bernalillo also has an active living senior housing development called Alegria. Alegria is a gated community for individuals ages 55 and over, which features 376 lots for single family homes in several different styles. Prospective residents choose from one of nine models, ranging in size from 1,403 to 2,387 square feet, and priced between $224,990 and $303,916. Some existing units were for sale, and others could be purchased new. In summer 2012, two units were affordable to households from 80‐100% of AMI; ten were affordable to households at 100‐
120% of AMI, and 14 were affordable to households with incomes above 120% of AMI. Although Alegria offers multiple activities and home styles appealing to seniors, they would be unaffordable to the majority of Bernalillo’s older population. Rental Housing If affordable home ownership opportunities are limited, the scarcity of affordable rental units is even more marked. The survey revealed a total of 5 available units advertised for rent. The median monthly rent for those is $1,200, while the average rental price is $1,549. Of the available units, one was an apartment, and the other four were single‐family homes. Town staff checked local bulletin boards and looked for “for rent” signs during the course of developing the plan to find rentals that might be available but not advertised otherwise. However, no rental notices were posted. 38 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Because there is limited information on housing for rent, three local landlords were interviewed to get a more in‐depth picture of the rental market. The landlords interviewed do not advertise available units. They rely on word of mouth to find new tenants. One local landlord of rental properties noted that she receives three to four phone calls about rentals before they are even listed as available, due to word of mouth. She noted that most of the rentals go to young individuals or young families who are from Bernalillo and wish to stay close to family. Figure 13. Towne Center Apartments Another landlord noted that he has long‐term renters, so he rarely has a vacant unit. His units currently rent for $750 to $1,000 per month. These rents are appropriate for households with incomes from slightly below 50% of AMI to just above 60% of AMI. In spite of the rent levels reported by landlords or through rental advertising, the median rent according to the 2010 Census was only $546. This is likely skewed by the nearly 150 subsidized housing units in Bernalillo. In addition, stakeholder input reveals that there may be more rentals available, but that these are not advertised through typical means. Rather, word of mouth is a common way of spreading the word about available rentals. This still suggests that the rental market is severely constrained. Mobile homes are another source of rental units, though none were available at the time of the housing survey. Local stakeholders note that often the land is owned by one party, and the actual home is owned by another, so unless the mobile home is owned by the tenant, a tenant can end up paying two different rents—one for the land, and one for the home. As noted above, ½ acre mobile home lots are rented for $300 per month, which is affordable if the cost of the mobile home is low. As with home and apartment rentals, mobile home lots are occupied by long term renters and rarely become available. The interviewees did not have opinions about the condition of rental units, probably because they are only familiar with their own properties. However, a review of data regarding units potentially needing rehabilitation shows that approximately fourteen percent of rental units (97 of 681 units) are potential candidates for rehabilitation as compared to 19% of owner occupied units. Interviewees were asked why there are so few apartments in Bernalillo. The comments were as follows: 1. Property owners are not apartment developers, and potential developers have owned property. Land ownership is the biggest constraint to new housing development, including rental housing. 2. Larger projects have been built in Rio Rancho adjacent to Bernalillo and in Albuquerque just to the south, so demand has been met in neighboring cities. 3. When affordable and entry level housing is provided in Bernalillo, buyers and renters are not necessarily local, so there is no guarantee that new housing projects will meet a local need. 4. Interviewees expressed the opinion that small scale projects are more appropriate in Bernalillo’s established neighborhoods than large apartment complexes. The 8‐unit Towne Center Apartments on Calle del Presidente, which are comprises two four‐plexes built in 1975, are an example of small scale. 5. The landlord interviewees feel that large parcels on the west side of the river may be appropriate for large apartment complexes. 39 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 6. The Town’s regulations were not identified as a reason why there are so few apartments, but there is some concern about current and future resident opposition and ambivalence towards growth. Existing Affordable Housing Resources There are currently three affordable rental housing complexes in Bernalillo. These include public housing units located at 857 Calle los Mayores, the John Rinaldi Apartments, and the La Villa Elena Apartments. Tenant based vouchers are also available through the local public housing authority, The Public Housing complex on Calle los Mayores is largest affordable housing complex in Bernalillo, with 75 units, including 20 one‐bedroom units, 24 two‐bedroom units, 24 three‐bedroom units and seven four‐bedroom units. It is a public housing complex managed by the Santa Fe Civic Housing Authority, which is the public housing authority that serves the Town of Bernalillo. The Calle los Mayores apartments were originally built in 1971. The complex has been renovated and upgraded several times over the years. Recent renovations include renovation of 18 two‐bedroom units and, most recently, new cabinets in 24 units. Units are available to low and very low income families, who pay rent based on a flat monthly fee. Current rents are $400 for the one‐bedroom units, $500 for the two‐bedroom units, $600 for the three‐
bedroom units and $700 for the four‐bedroom units. Public housing has a waiting list for all unit sizes. The current waiting list is 188 households, of which 84 are waiting for a one‐bedroom unit, 77 are waiting for a two‐bedroom unit, 25 are waiting for a three‐
bedroom unit, and 5 are waiting for a four‐bedroom unit. The greatest demand is by the elderly or near elderly (55+), although there is also demand from single parent families. Older adults generally require one‐bedroom units as long as there are no children living at home. Single parent families need one‐
bedroom units if children are under five years old and two‐bedroom units if children are older. The Calle los Mayores site has an additional nine acres of property adjacent to the existing public housing and the Rotary Park. This land is available for future affordable housing development. The Town of Bernalillo and the Santa Fe Civic Housing Authority are currently working to relocate the Sandoval County Senior Center to this site and develop affordable senior housing units there. Approximately 7 acres are available for housing, for a capacity of 80‐100 new units. The John Rinaldi Apartments offer 40 affordable housing units. This complex was built in 1973 through a USDA program. All of the units have income eligibility requirements, but only 18 are subsidized with rental assistance by the USDA Rural Development. Renters of subsidized units pay a maximum of 30% of their monthly income. The remaining units are still available at below‐market prices, which are as follows: $475 for a 1‐bedroom unit; $530 for a 2‐bedroom unit, and $560 for a 3‐
bedroom unit. The apartment complex has applied to receive subsidies for all 40 units. The apartment Figure 14. Rinaldi Apartments 40 | T o w n o f B e r n a l i l l o H o u s i n g P l a n manager notes that the units are usually full, but at the time of the interview, had one 1‐bedroom unit available. Meanwhile, three households were waiting for a 2‐bedroom unit, and two were waiting for a 3‐bedroom unit. The manager felt that young families are most in need of affordable housing in Bernalillo, and that 2‐ and 3‐bedroom units are consistently more in demand than the smaller units. Finally, the La Villa Elena apartments provide 54 units of affordable housing to elderly or disabled individuals. The project is funded by USDA Rural Development. Residents pay a maximum of 30% of their monthly income. The waiting list for Villa Elena is approximately two years. For this population, 1‐BD units are in highest demand. Recently, Villa Elena underwent an extensive rehabilitation financed through the NMMFA through the tax credit program. Units received new furnaces, roofs and evaporative cooling systems. In addition, the ADA‐accessible units were remodeled, as were Figure 15. La Villa Elena Apartments some kitchens and bathrooms. Table 17. Affordable Rental Housing Complexes in Bernalillo Complex Name Subsidizing Organization Town of Bernalillo Public Housing HUD John Rinaldi Apartments USDA Rural Development La Villa Elena Apartments USDA Rural Development Number on Waiting List Total Units 75 20‐1 BD units 24‐2 BD units 24‐3 BD units 7‐4 BD units 18 subsidized
(40 total) 54: 42‐ 1 BD units 12‐ 2 BD units Eligibility 188
Low and very 84 for 1 BD low income 77 for 2 BD 25 for 3 BD 5 for 4 BD 3 for 2 BD
Low Income
2 for 3 BD About 1‐2 months 36 for 1BD units Low Income, 3 for 2BD units Elderly (62+) or Approximately 2 Disabled (any years age) 1971 At Risk of No Longer Being Affordable? No 1973 No 1988 No
Year Built In addition to these apartment complexes, Housing Choice Vouchers (Section 8) are available for a limited number of renters. As of July 1, 2012, the Town of Bernalillo is contracting with the Santa Fe Civic Housing Authority to administer its Section 8 housing vouchers. There are over 200 clients for the Section 8 program. The waiting list for vouchers is closed, although the Housing Authority anticipates opening up the waiting list soon. An anticipated 200 households are expected to apply and will be on the waiting list for about two years. According to the Executive Director, the availability of rental units in Bernalillo is so slim that the vast majority of people with vouchers end up using them in Rio Rancho where rental housing is more readily available. Of the 200 clients, only eight to ten live in Bernalillo. 41 | T o w n o f B e r n a l i l l o H o u s i n g P l a n There are currently few programs in Bernalillo offering housing rehabilitation services. Housing rehabilitation is needed in several neighborhoods, and the Town could partner with the non‐profits that serve Sandoval County to increase resources available for owner‐occupied housing repair and rehabilitation. Rebuilding Together Sandoval County is an all volunteer non‐profit organization that partners with the community to repair and rehabilitate the homes of elderly, disabled, and low‐income residents. Projects include small‐scale repairs and rehabilitation as well as modifications to make homes accessible for the elderly and disabled. The Bernalillo County Housing Authority has recently administered HOME homeowner rehabilitation program funds in Sandoval County, receiving funding for seven home rehabilitations in the Sawmill neighborhood. Central New Mexico Housing Corporation provides Energy$mart weatherization services in Sandoval County. The Bernalillo Youth Conservation Corps works to rehabilitate public buildings, particularly adobe structures. The Town has expressed interested in using this resource to assist with rehabilitation efforts of low‐income and senior households. The state enabling legislation for the New Mexico Youth Conservation Corps does not allow the organization to work on private properties. The Town can seek assistance from other organizations that are not restricted by anti‐donation law. AmeriCorps has partnered with organizations in New Mexico that provide rehabilitation and weatherization for private properties through Federal and other grants. Santa Fe Civic Housing Authority does not offer home rehabilitation services at this time, but has expressed interest in meeting this need in the future. Once SFCHA has fully integrated the operations of the Bernalillo Housing Authority and completed current projects, it can begin to look at ways to address other community housing needs. 42 | T o w n o f B e r n a l i l l o H o u s i n g P l a n V.
Housing Needs Assessment Based on quantitative data, stakeholder interviews and public input, Bernalillo has a tremendous need for affordable housing. There are a considerable number of individuals and families living in poverty, as well as those who experience a housing cost burden. There is an extreme lack of affordable housing for low‐income individuals, as well as a lack of market rate entry level housing, both in home ownership opportunities and rentals. The following groups face the greatest housing need, in order of priority:  Young Families and Essential Workforce—require rental and owner opportunities (both market rate and subsidized)  Seniors—require affordable housing rental opportunities; programs to assist with home rehabilitation and repair; programs to assist with making homes ADA‐accessible  Homeless youth and families—require short‐term emergency shelter  Victims of domestic violence—require transitional housing  People dealing with substance abuse—require residential treatment programs The specific types of housing and housing programs needed include: 1. Market Rate Entry Level Home Ownership Opportunities. The majority of homes for sale in Bernalillo are not within the financial reach of most Bernalillo residents. Mobile homes are frequently the source of affordable home ownership, but these do not afford the same benefits to the buyers as site built homes. Nevertheless, the community greatly values home ownership, and has shown a preference in the past for single family homes to multifamily complexes. In addition, many people from Bernalillo who live in Rio Rancho have expressed their desire to live in Bernalillo, if housing were available. Creating single family developments that have the higher densities in line with Bernalillo’s core neighborhoods may be a way to create homes affordably priced for the essential workforce and young families. The target market should include households earning 80% to 120% of the AMI. 2. Market Rate Rental Housing. There are currently very few market rate multifamily units in Bernalillo, and this is the one of the greatest affordable housing needs. Rentals would provide a source of affordable entry level housing for moderate income households (80% to 120% of the AMI). This would include young people moving out of their families’ homes, essential workforce including teachers, firefighters, police, EMTs, etc., young small families, and seniors on a moderate income looking to downsize. New rental housing might come in a variety of styles: as small complexes in a style fitting to the community’s character (duplexes, 4‐plexes, townhomes, etc), in larger multifamily complexes, or as accessory dwelling units to existing single family homes. Some existing market rate rentals in Bernalillo are affordable to households with incomes at 60% of the AMI, but new projects might not be able to achieve this rent level. 3. Subsidized Senior Housing. There is a need for subsidized senior housing, similar to the Villa Elena complex, to provide affordable housing to seniors on a fixed income. There may also be a need for resources to help low‐income seniors make existing housing ADA‐accessible or to provide repairs. If incomes are very low and a senior homeowner is unable to handle routine maintenance, rental housing may be a good choice even for homeowners. 43 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 4. Subsidized Rental Housing. Subsidized rental housing is needed for individuals and families facing poverty, including women transitioning out of the domestic violence shelter, individuals recovering from substance abuse, some low‐income seniors on a fixed income, and others. Creating projects that include both market rate and subsidized rental units may make them more financially viable for the developers, more acceptable to the community, and less likely to be stigmatized. Households with incomes below 80% of AMI may require some subsidy to rent. 5. Rehabilitation and Repair Programs. There is need for assistance with home repair and rehabilitation, particularly in the Town’s core neighborhoods. Low‐income families and seniors would the primary target for this type of assistance. Seniors and others with physical disabilities may also require assistance with modifications to make their homes ADA‐accessible. The neighborhoods with the highest need for rehabilitation are Sawmill, Cocinitas and Gutierrez, which are all located in the older part of Bernalillo. A large number of mobile homes are not on permanent foundations and pre‐date the 1972 HUD standards. These mobile homes are now over 40 years old and in need of replacement. Table 18 shows the estimated number of units needing rehabilitation and repair in these neighborhoods. These include approximately 429 conventionally constructed homes and approximately 155 mobile homes. Mobile homes in need of replacement should be replaced by affordable conventional construction or by manufactured housing on permanent foundations. Table 18. Estimated Housing Rehabilitation Needs by Target Neighborhood Neighborhood Sawmill Cocinitas Gutierrez Total in Target Neighborhoods Total Units in Neighborhood 548 191 327 1,066 Est. # Units Needing Rehab 398 88 97 584 Est. # of SF Homes Est. # MF Units Est. # of Mobile Homes 307 72 35 413 12 3 1 16 79 14 62 155 Additional older mobile homes outside of these neighborhoods should be evaluated for repair or replacement. Approximately 140 mobile homes outside of the target neighborhoods are estimated to need repair or replacement because of their age. 6. Emergency Homeless Shelter. Input from local stakeholders and residents suggest that there is a transient homeless population in Bernalillo, made up of youth temporarily leaving their homes and of individuals coming from outlying areas in search of work. A homeless facility providing temporary overnight shelter would help meet the needs of those individuals. 7. Transitional Housing and Residential Treatment Programs. Transitional housing and facilities for residential treatment programs are needed not only in Bernalillo, but in all of Sandoval County. Because Bernalillo is among the smaller and less wealthy of the communities in Sandoval County, providing these types of housing programs may not be within the Town’s capabilities, and this housing is the community’s lowest priority at this point. At the same time, Bernalillo provides excellent access to the regional transportation network and some social services, and might be an ideal location for these facilities. Partnering with Sandoval County 44 | T o w n o f B e r n a l i l l o H o u s i n g P l a n and/or regional non‐profits could be the potential solution to transitional housing and residential treatment programs. 8. Long Term Supportive Housing. As part of a continuum of care to end and prevent homelessness there is a need for long term supportive housing, either as a rental project or through rental assistance combined with social services. This could be an expansion of existing programs or a new program or project. Current programs provide rental assistance combined with services, and affordable rental units provided through programs listed above could be partners with supportive housing services. The total current housing need was determined by evaluating the current number of households with a cost burden by income level, as discussed previously (see Table 15). Of the total 836 cost‐burdened households, 55.4% own houses, while 44.6% rent. The majority of cost‐burdened households fall within the lowest income categories, earning less than 60% of the AMI, and a significant portion earn less than 30% AMI. Assistance to current homeowners will be primarily home repair and rehabilitation assistance, if needed, although foreclosure prevention assistance may also be needed. Assistance to renters will range from rental assistance to new affordable and market rate rental housing. Table 19. Types of Housing to Address Current Affordable Housing Needs of Cost‐Burdened Renters Recommended % of Housing to be Met by: Income Level Less than 30% AMI 30 ‐ 60% AMI 60% to 80% AMI 80% to 120% AMI Cost‐burdened Housing Choice Renter Vouchers Households 331
25%
25
0%
17
0%
0
NA
Subsidized Rental Housing Market Rate Rental Housing 75%
75%
25%
NA
0% 25% 50% NA Home Ownership Opportunities 0%
0%
25%
NA
In the future, the appropriate programs for new households will vary based on income level and special needs. Despite the overall preference for home ownership, it may not be feasible to provide new subsidized home ownership opportunities at a low enough price with a reasonable level of subsidy to be affordable to those in the very lowest income brackets. Furthermore, it may not be desirable, particularly if families do not have adequate credit or reserves to be able to pay their mortgages in times of crisis, such as job loss. Therefore, the plan recommends that affordable housing solutions be divided among subsidized rentals, market rate rentals, and market rate and subsidized home ownership opportunities. Within each of these categories, a portion of the housing should be designed to meet special needs, which are described in Table 21. The following distribution of housing by type and income is recommended: 45 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 20. Types of New Housing to Address Future Affordable Housing Needs Income Level Less than 30% AMI 30 ‐ 60% AMI 60% to 80% AMI 80% to 120% AMI Housing Choice Vouchers 25%
0%
0%
0%
Recommended % of Housing to be Met by: New Subsidized Market Rate Rental Rental Housing Housing 75%
0% 75%
25% 25%
50% 0%
25% Home Ownership Opportunities 0%
0%
25%
75%
Table 21 quantifies Bernalillo’s current housing needs, based on the figures above and future housing needs based on projected population growth. Table 21. Current and Future Housing Needs Type of Housing Entry Level and Affordable Home Ownership Opportunities Target Market Households earning between 80% and 120% of the Area Median Income (AMI); Includes essential workforce, young families, and potentially some seniors. Current Total Need 28 units annually, based on projected total housing growth of approximately 70 to 75 single family units per year Estimated Additional Future Need* 25 to 30 units per year Comments 2 BD, 3BD, and 4BD homes are in greatest demand. Appropriate sale prices by income group would be: 80% AMI: $129,177 to $172,235 100% AMI: $172,236 to $215,294 120% AMI: 215,295 to $258,352 Market Rate Rental Units Households earning 100% AMI and above; Includes essential workforce, young families, students. Current need includes cost‐burdened renter households and households who would live in Bernalillo if market rate rentals were available. A subsidy may be needed for households below 80% of AMI. 50 for 100% AMI and up 150 for 80% AMI and up 2 BD and 3BD in greatest demand. Appropriate monthly rents by income group are: 100% AMI: $1,423 120% AMI: $1,708 Subsidized Senior Housing Senior‐headed households with a cost burden. Currently 28.1% of senior‐headed households have a cost burden. 76 units 43 for up to 30% AMI 21 for 30% up to 60% AMI 12 for 60% up to 80% AMI 150‐180 units** Up to 100 for up to 30% AMI Up to 50 for 30% up to 60% AMI Up to 30 for 60% up to 80% AMI To meet immediate need, 70 units should be 1‐BD, and 6 should be 2‐BD units, based on current demand. Units should be subsidized to the point that eligible households pay 1/3 of their adjusted monthly incomes on rent. 46 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Type of Housing Target Market Current Total Need Estimated Additional Future Need* 100 vouchers Housing Choice Vouchers Renter Households earning less than 30% of AMI 83 vouchers for households earning up to 30% of AMI Subsidized Rental Housing Households earning up to 80% of the Area Median Income, excluding senior‐headed households (which are included above). Note that current need is by cost‐burdened households living in Bernalillo. 305 total units 248 for up to 30% AMI 22 for 30% up to 60% AMI 5 for 60% up to 80% AMI 350 units 175 for up to 30% AMI 100 for 30% up to 60% AMI 50 for 60% to 80% of AMI Housing Rehabilitation Housing rehabilitation is needed to bring homes up to code. Units that cannot be rehabilitated should be replaced. Approximately 25 units per year Emergency Homeless Shelter Transitional Housing To provide short‐term shelter for individuals and families experiencing homelessness. To provide short‐term housing (3 months up to 18 months) in addition to services such as job training, education, life skills, counseling, etc. to people leaving domestic violence situations as well as those recovering from substance abuse. To provide long term rental housing for individuals and families needing housing and ongoing services related to a mental or physical disability. 294 mobile homes 413 single family units 16 multi‐family units 10‐15 beds 10‐15 units or beds Unknown Very few vouchers are currently being used in Bernalillo. However, cost‐
burdened renter households living in the community now could benefit from rental assistance. There is a need for 2 BD and 3 BD units. Units should be subsidized to the point that eligible households pay 1/3 of their adjusted monthly incomes for rent. Appropriate monthly rents by income group are: 30% AMI: $427 40% AMI: $569 50% AMI:$712 60% AMI: $854 80% AMI: $1,139 Rehabilitation estimates include all housing, owner and renter occupied and vacant. 1‐BD units or rooms within a facility would be appropriate. All for 30% of AMI or below. Long Term 10 to 15 units Waiting lists of 10 A mix of one, two and Supportive to 12 Bernalillo three bedroom units. Housing residents, assuming All for 30% AMI or below, duplicates among although some tenants similar programs may increase their incomes over time. *Overall, future housing needs were based on an estimated total of 5,384 households in 2035, assuming that the proportion of household levels at various percentage levels of the AMI remain the same, that the percentage of cost‐burdened households within each income level will remain the same, and that the current housing needs are met. ** Future senior housing needs assume that senior‐headed households will grow from a current 9.1% of all households to 15% of all households. Seniors currently make up 13.4% of Bernalillo’s population, but are anticipated to form up to 26.4% of the population state‐wide by 2030. 47 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Unknown Comments VI. Land Use and Policy Review This chapter reviews existing policies as well as physical characteristics to determine any constraints or barriers to housing development in Bernalillo. It also incorporates data from stakeholder interviews to identify additional barriers. Existing Plans and Land Use Policies Comprehensive Land Use Plan for the Town of Bernalillo, New Mexico, 2004 The most recent comprehensive plan for the Town of Bernalillo dates to 2004, and has not been updated to incorporate the recent changes in the town’s development, specifically housing growth on the west side of the river. The plan’s land use map from 2001 indicates that vacant land was the largest land use at that time, and the town could easily absorb the future projected population. There are several goals, objectives and recommended actions related to housing that impact the development and recommendations of the Affordable Housing Plan. These include the following: Goal: Preserve and enhance the unique small town character and culture of Bernalillo. Objective: Protect the character of established residential neighborhoods. Objective: Provide assistance and incentives to preserve historical structures within the following areas: Las Cocinitas, Abenecio Salazar Historic District, Our Lady of Sorrows Church and Convent, and the Coronado State Monument. Objective: Use zoning and other regulatory ordinances to control the density and distribution of development. Goal: Apply long‐range planning and land use management techniques that ensure a desirable mix of land uses and densities in future development. Objective: Allow flexibility for mixed‐use zoning and expand the range of densities and housing types. Goal: Provide open space areas for recreation, public appreciation, and natural resource protection. Objective: Encourage cluster development in new planned unit developments to preserve open space. Goal: Provide adequate housing for all residents of the Town of Bernalillo. Objective: Regulate the location and placement of housing of manufactured housing to ensure attractive and affordable housing choices. Objective: Provide opportunities for multi‐family housing units to be located in areas where higher density is acceptable and designed in a manner that would not be disruptive to surrounding neighborhoods. 48 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Objective: Locate higher density development in existing multi‐family residential zones for more effective land use and to conserve natural resources. In addition to the goals listed above, the Comprehensive Plan lists as part of its action plan the adoption of a comprehensive housing plan. The development of this Affordable Housing Plan fulfills that goal. Bernalillo TOD Plan: A Community Vision for Transit Oriented Development, 2007 The Town adopted a Transit Oriented Development Plan in 2007 that serves as a supplement to the Comprehensive Plan. Its purpose is to guide development—including housing— in specific areas around the two Rail Runner stations. This plan is discussed in greater detail below, on page 49. This plan was created to guide development around the two Rail Runner train stops in Bernalillo, and includes specific guidelines for housing. According to the plan, Transit Oriented Development (TOD) is a land use pattern that “creates vibrant, livable, and walkable neighborhoods around transit such as the commuter rail stations. TOD includes a variety of housing types, along with complementary public uses, jobs, retail, and services that are concentrated in mixed‐use developments.” The plan introduces several important housing‐related terms including: Traditional village center density. This refers to existing densities of core Bernalillo neighborhoods. These ranged from 9.15 to 10.30 dwelling units per acre in the Cocinitas area to 11.08 du/ac in Sawmill as whole. Sawmill townhomes have a density of 14.16 du/ac, and the Southern Addition has a density of 14.26. The plan does not specify what the specific density should be; merely that it should be in character with these existing densities. The plan also recommends a variety of housing styles. Each has its own unique features, but there are also shared characteristics. For instance, all of the housing recommended should be of compact format and include shared open space, offer a variety of floor plans with 1‐, 2‐, and 3‐bedroom options, have ground‐related entries, and be architecturally appropriate for the local climate and history. The specific recommended housing types include the following: Plaza housing. Plaza housing includes single family homes and duplexes that share a minimum of 20% of the site as a neighborhood public space (either a plaza or green area). These would require no front setbacks, require porches, and have a maximum height of two stories. Bernalillo townhouses. The plan recommends townhouses in areas that are not in the traditional core of the Town, but within walking distance of the Rail Runner stations. These would be 1, 2, and 2.5 story maximum, and include up to a maximum of 20% triplexes. No front setback is required, and private garden spaces with access to ditches are encouraged, as are public gathering spaces and community buildings. Mixed‐use lofts. The plan recommends mixed‐use lofts that would offer residential and commercial uses. These could include assisted living units, hotels, or safe houses. They would include studios, and 1‐, 2‐, and 3‐bedroom units, located either on the ground or second floor, and require no minimum setbacks. 49 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Compound housing. This traditional housing pattern includes mostly single‐family houses, with up to 50% duplexes (up to 2.5 stories) that have private yards. Common features include a shared parking courtyard and grouped mailboxes. Courtyard housing. In this arrangement, houses are organized in a U‐shape, and share a non‐
vehicular garden courtyard. Homes have private yards, and zero lot lines. The two Rail Runner stops are the US 550/Sandoval County station, located in the northeastern corner of the plan area, and the Downtown station, located in the heart of Bernalillo just east of Camino del Pueblo. Both present opportunities for future housing development. Land uses for the US 550 station were divided into four areas which include the TOD Commercial Core, TOD Secondary Commercial Mixed‐Use, Primary TOD Housing and TOD Residential Mixed‐Use (see Figure 16). Housing in these areas is recommended as following:  Commercial Core (7.5 acres) and Secondary Commercial Mixed‐Use (7.5 acres). In these areas, the plan recommends uses permitted in the existing C‐1 Commercial Zone. As part of this type of development, the plan encourages residential uses on upper floors above ground‐story commercial uses as part of mixed‐use developments.  Primary Housing (8.13 acres). The plan recommends uses consistent with the R‐1 single‐family zoning for the two primary housing areas. The plan encourages traditional village center density, which would accommodate between 64 and 100 new housing units, and notes that housing should include affordable options. The plan recommends the following housing types for this area, to be distributed in a fashion consistent with traditional village center density: Bernalillo townhouses, compound housing, courtyard housing, plaza housing, and single‐family housing with accessory dwelling units.  Residential Mixed‐Use Housing (4.76 acres) This area is located north of US 550, and the plan notes that TOD residential development should be considered if appropriate pedestrian or bike connections (such as an underpass) are made to create a ten‐minute walk to the rail station. The plan generally recommends master plan developments for this area that adopt traditional village center densities for residential uses, along with service and employment uses. 50 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 16. Recommended Land Uses, US 550 Station, TOD Plan 51 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Land uses for the Downtown station were likewise divided into distinct areas: a TOD Commercial Core, Downtown Primary TOD Housing, and Downtown Secondary TOD Housing. Residential uses in these areas are recommended as following:  Commercial Core (17.92 acres): In this area, the plan recommends mixed‐use development consistent with uses allowed in the existing C‐R Commercial Residential Zone. The plan encourages upper story residential uses above ground floor commercial uses.  Downtown Primary Housing (26.1 acres). This area, east of the Commercial Core, includes several large parcels of underutilized and vacant land suitable for housing development. The plan recommends uses consistent with R‐2 Multi‐Family Residential Zone, and encourages traditional village center density to include Bernalillo townhouses, mixed‐use lofts, and courtyard housing. Following this model, the area could accommodate approximately 260‐
300 residential units.  Downtown Secondary Housing (33.21 acres). The plan recommends that this area (which also has underutilized and vacant parcels) be likewise developed with traditional village center density, to accommodate approximately 240‐330 single‐family units. Uses consistent with R‐1 zoning are recommended, including Bernalillo townhouses, compound housing, courtyard housing and plaza housing. In order for the recommended land uses to be implemented, zone changes would be required. Rather than change the zoning outright, the Town wishes to approve zone change proposals that are in line with the TOD plan. In addition to the general recommendations listed above, the plan also lays forth a series of specific “next steps” to be viewed as recommended actions to carry out the goals of the plan. In addition to general circulation and pedestrian improvements, and the adoption of overlay districts for the two TOD areas, there is one specific recommended action related to housing, for the Downtown Station Area: Work with NMDOT to acquire their maintenance yard east of the tracks for a possible land trust with the intent of providing affordable and mixed‐income housing. Consider supporting a Community Development Corporation to initiate and manage the project. The Town still wishes to pursue this action step, and the property is identified as a potential site for new affordable housing. The resolution adopting the TOD Plan (No. 10‐30‐07) notes that the TOD Plan should serve as a supplement to the existing Comprehensive Plan. However, the TOD Plan does not change existing ordinances, zoning or subdivision regulations. The recommendations of the TOD Plan should, however, guide development, including zone map amendments if needed, in the TOD areas. The Plan identifies these areas as suitable for “affordable housing in mixed‐income, mixed‐use neighborhoods.” 52 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 17. Recommended Land Uses, Downtown Station, TOD Plan 53 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Comprehensive Zoning Ordinance for the Town of Bernalillo, Sandoval County, New Mexico, 2005 Zoning for the Town of Bernalillo includes the following districts: A‐R Agricultural Residential Extraterritorial R‐R Rural Residential Zone R‐1 Single‐Family Residential Zone R‐1A Mixed Single‐Family Residential Zone R‐2 Multiple‐Family Residential Zone C‐R Commercial Residential Zone C‐1 Retail Commercial Zone M‐1 Light Industrial Zone S‐U Special Use Zone The total acreage by zone is shown below: Table 22. Zoning by Total Acreage Zoning District Total Acreage Percent Total A‐R 3.8 0.2% R‐R 909.4 36.6% R‐1 422.1 17.0% R‐1A 224.3 9.0% R‐2 139.1 5.6% C‐R 48.5 2.0% C‐1 288.7 11.6% M‐1 155 6.2% S‐U 146.9 5.9% Exempt/Government 145.5 5.9% *Note: There are several parcels in Bernalillo that do not have zoning data, and were excluded from this chart. Parcels in the extraterritorial zone were also excluded. Residential areas dominate the plan area, forming nearly 70% of zoning. West of the river is zoned with primarily Rural Residential and R‐1 designations, with one area each of R‐2 and C‐1 zones. Rural Residential zoning is also the primary designation north of US 550 and in the area east Camino del Pueblo (SR 313).The R‐1A designation is also prominent east of Camino del Pueblo, as well as just west of this main street, in what would be considered Bernalillo’s core. The core also has a portion of R‐2 zoning, consistent with its historically higher densities. Agricultural Residential zoning is mostly located out of the town’s borders, in the extraterritorial zone, though portions exist in the southern and northern parts of the town. This zone is not listed in the town’s zoning code. Commercially‐zoned areas follow the main arteries of the town—primarily along US 550 and Camino del Pueblo—while manufacturing areas are located in the eastern portion of the plan area near I‐25 and in the southern part of the town (see Figure 18). 54 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 18. Zoning for the Town of Bernalillo 55 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table 23 lists the requirements of residential zones in the Bernalillo Zoning Code and compares the permitted and conditional housing types, lot size requirements, setbacks, height limits and number of units allowed per lot. The Rural Residential zone requires minimum lot sizes of 12,000 square feet, while the remaining residential zones require minimum lot sizes of 6,000 square feet for single family home and 4,000 square feet for townhomes. Mobile homes are allowed only in the R‐R and R1‐A zones. Meanwhile, townhomes are only allowed in the R‐2 zone only as a conditional use, and apartments are allowed only in the R‐2 or C‐R zones as a conditional use. Table 23. Zoning Designations with Residential Uses for the Town of Bernalillo Zone Purpose R‐R Large lot low density residential uses, limited agricultural Low density single‐family dwellings R‐1 R‐1A R‐2 C‐R C‐1 SU (PUD) Mix of single‐
family site built and manufactured housing Moderate density including multifamily housing Single‐family & multifamily housing; limited retail Commercial uses Uses which require special consideration Permitted & Conditional Residential Uses Single‐family unit, including mobile homes Minimum Lot Size Required Setbacks 12,000 sq ft with 70 feet along front yard line Front – 20 ft
Side –5 ft Rear – 10 ft Maximum Allowed height Dwelling Units per Lot 35 ft 1 Single‐family unit, 6,000 sq ft NO mobile homes with 60 ft along front yard line Single‐family unit, 6,000 sq ft including with 60 ft mobile homes along front yard line Front – 20 ft
Side –5 ft Rear – 10 ft 35 ft 1 Front – 20 ft
Side –5 ft Rear – 10 ft 35 ft 1 Single‐family, No
mobile homes Boarding and lodging houses Garage apartments Conditional: ‐Apartments ‐Townhouses & zero lot line developments Same as R‐2 Apartments as a conditional use Permitted‐same as R‐2 Hotels/motels as conditional use Set by a Master Development Plan Single‐family: 6,000 sq ft with 60 ft along front yard line Townhouses: 4,000 sq ft with 30 ft along front yard line 35 ft Front – 20 ft
Rear – 10 ft Side – 5 ft; 10 ft for corner lots; none required for townhouses Varies
Note: max of 4 attached units per structure in townhouse development with min 15 feet between structures 6,000 sq ft with 60 ft along front yard line Residential: 6,000 sq ft with 60 ft along front yard line Subject to master dev. Plan Front – 20 ft
Side –5 ft Rear – 10 ft 35 ft Residential: Front – 20 ft Side –5 ft Rear – 10 ft 45 ft Same as R‐2 Not specified for apartments Same as R‐2
Subject to master dev. plan Subject to Subject to master master dev. plan dev. plan 56 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Subdivision Regulations for Town of Bernalillo, 1997 The Town of Bernalillo Subdivision Ordinance is a standard ordinance for a town of Bernalillo’s size. The subdivision ordinance was not mentioned as a limitation relative to housing affordability in stakeholder interviews with developers and Realtors. Infrastructure costs are the responsibility of the property owner, which is typical in New Mexico. The ordinance requirements are geared to public health and safety. However, the Town may be able to assist in some areas. Landowners must provide water rights equal to need or pay a fee in lieu of water rights based on 0.336 acre‐feet per year of consumptive water use per dwelling unit. The City could pay some of these fees from a municipal funding source for subdivisions that provide affordable housing. Park fees are $200 per unit. Some of these fees could also be paid from a local source for subdivisions that include affordable housing. Local streets must include 50 feet of right of way and 35 feet of paving to accommodate a design speed of 25 mph. This width accommodates two narrow travel lanes and on street parking. ITE, the State of Oregon and others have explored the potential for narrower streets with design speeds of 20 mph. However, the right of way is generally used for pedestrian amenities. Development Fees The Town of Bernalillo charges fees for processing zoning and subdivision applications and for water and sewer utility hookups. New infrastructure required for subdivisions as well as line extensions to new development is the responsibility of the property owner. Fees are shown in Table 24. While fees are relatively low, waiver of utility hookup fees would have the greatest impact on lot costs. In the past, the Town has covered the cost of line extensions for eligible projects with funds from the General Fund. In one case, this was about $9,000. An Affordable Housing Ordinance would allow this type of contribution for housing projects that meet the requirements of the Affordable Housing Act. Table 24. Cost of Permits and Fees per Unit Conditional Use Permit Preliminary Plat Lot Split Re‐plat or vacation Variance Zoning Amendment Zoning Appeal Zoning Permit Park Dedication Water Rights Fixed Fees $75.00 $250.00 $270.00 $50.00 $75.00 $125.00 $100.00 $15.00 $200.00
Variable Fees Plus $10 per lot Water rights equal to need or fee in lieu based on 0.336 acre‐feet per year of consumptive use. Fee is adjusted to construction cost index. Water connection $1,200.00 Sewer connection $1,200.00 Infrastructure extensions Cost to the property owner Roadway improvements Cost to the property owner Source: Town of Bernalillo Planning and Zoning 57 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Infrastructure Capacity The Town has recently undertaken projects to improve infrastructure capacity. Wastewater capacity is deemed adequate, after an $8 billion plan upgrade several years ago. The Town is currently upgrading the water distribution system in the Cocinitas neighborhood to address line breaks and other issues. This will both raise property values, and create a more stable environment for growth and investment. The only part of Bernalillo in which infrastructure could pose a challenge to development in an area annexed several years ago in the northern part of the town, east of I‐25. Development here will require significant extensions of water and wastewater lines, which would be financed by the potential developer, rather than the Town. Minimum Density Calculations This section evaluates increasing density as a way to reduce costs of single family and multifamily homes. In 2008, the Town commissioned a review of the development cost of single family housing at the density proscribed by the Town’s zoning – 6,000 acre lots – compared to townhouses built at 14 units per acre, or lots of approximately 2,000 square feet.12 The analysis assumed 1,700 square foot units and a five‐acre site. The analysis indicated a potential savings of 28.31% per unit at the higher density. The development cost per unit for 6,000 sf lots was estimated at $242,743, and the development cost of townhomes was $174,012. Appendix Tables B‐1 and B‐2 show the estimated cost per unit for homes and apartments at different densities in Bernalillo. Appendix Tables B‐3 and B‐4 show how incentives, including fee waivers and donation of land affect affordability. Complete spreadsheets showing the detailed assumptions, including construction costs, soft costs, financing options, etc. can be found in Appendix B. Densities were calculated for the existing minimum lot sizes in the Town’s single family zones, as well as for smaller lot sizes not currently allowed in existing single family zoning that would create townhouse densities of up to 14 dwelling units per acre. Lots of approximately 6,000 square feet on Calle Evangeline are currently selling for $45,000 per lot, which is approximately $20,000 to $30,000 less than the price of lots on the same street in 2008. The current price of $45,000 for 6,000 square feet is the benchmark developed lot cost used in the 2012 analysis. The cost savings per unit is estimated to be $22,000 per unit between the homes on 6,000 square foot lots and townhomes. While this is less than the estimated savings in 2008, primarily due to lower land cost in 2012, the savings is still substantial with the higher density development. As summarized in Table 25, new single family homes under current density allowances are affordable only to families earning 100 percent of the AMI and above. The affordability gap shows the difference between what a family at each income level can afford to pay for a home and the cost for a home at the calculated market rate price – i.e. the subsidy needed at each income level. A dash indicates that the market price of a home is affordable to families at this income level. At townhouse densities, market rate single family homes are very close to affordable to families earning 80 percent of the AMI. Incentives, including fee waivers and donation of land would reduce costs enough at all 9 and 14 units per acre to make the example home affordable to families earning 80 1212
Abeita Consulting, Density Analysis for the Town of Bernalillo, December 2008. 58 | T o w n o f B e r n a l i l l o H o u s i n g P l a n percent of the AMI. It should be noted, that an estimated 60% of Bernalillo households earn less than 80% of AMI. Significant subsidies would be required to provide the sample home to families at or below 60% of AMI, even with a range of incentives. Other measures, including development by a non‐profit builder, which would reduce or eliminate the builder/developer profit, a smaller unit size and more basic interior and exterior finishes could reduce costs to a level affordable to 60% of AMI. For example, by reducing the unit size to 1,200 square feet and eliminating developer profit, the prices with incentives would be reduced to $139.251 at 14 units per acre, which is affordable to households with incomes of 60% of AMI. Table 25. Summary of Single Family Housing Price and Affordability Gap by Density and AMI Level Density (units/acre): 3 (RR Zone) 6 (R‐1 Zone) 9 (R‐2 Zone) Affordable Housing Price 120% AMI $284,239 100% AMI $236,901 80% AMI $189,353 60% AMI $142,015 50% AMI $118,346 40% AMI $94,676 30% AMI $71,007 Market Rate House Price 14 (TH) $240,673 $208,199 $197,374 $189,642 120% AMI ‐‐ ‐‐ ‐‐ ‐‐ 100% AMI $3,772 ‐‐ ‐‐ ‐‐ 80% AMI $51,320 $18,846 $8,021 $299 60% AMI $98,658 $66,184 $55,360 $47,628 50% AMI $122,327 $89,853 $79,029 $71,297 40% AMI $145,996 $113,522 $102,698 $94,966 30% AMI $169,666 $137,192 $126,367 $118,635 $207,074 $190,108 $184,444 $180,253 120% AMI ‐‐ ‐‐ ‐‐ ‐‐ 100% AMI ‐‐ ‐‐ ‐‐ ‐‐ 80% AMI $17,721 $755 ‐‐ ‐‐ 60% AMI $65,059 $48,093 $42,429 $38,238 50% AMI $88,728 $71,763 $66,098 $61,907 40% AMI $112,398 $95,432 $89,768 $85,576 30% AMI $136,067 $119,101 $113,437 $109,245 Affordability Gap (Subsidy Needed) Per Unit Affordability with Fee Waiver and Land Donation Incentives House Price with Incentives Affordability Gap (Subsidy Needed) Per Unit A summary of market rents for new rental units built at different densities and reductions that can be achieved through incentives is shown in Table 26. Unit sizes were calculated at 850 square feet. The multifamily densities that work best in Bernalillo range from a low density apartment building of 12 units per acre to a typical garden apartment density of 20 or so units per acre. 59 | T o w n o f B e r n a l i l l o H o u s i n g P l a n For the analysis of multifamily rentals, relatively high densities were included in the analysis because these might be appropriate at the Rail Runner station areas or on the west side, even though they are not traditional building types in Bernalillo. Construction costs for urban density developments are higher per square foot because of increased construction costs for buildings over three stories. Because of higher construction costs, urban densities are not an effective strategy for reducing overall costs for rental apartments, as shown in the table. These higher densities are not recommended; however, the analysis of higher densities is included as information. As shown, new market rate apartment units are not affordable to families below 100 percent of the AMI. Through incentives, including fee waivers and land donation, needed subsidies are significantly reduced, but . Other subsidies would be required to make units available to lower income families. Detailed tables showing development costs, required rents, and the estimated rent gap, or subsidy needed, by AMI at each density is shown Appendix B. Table 26. Summary of Multifamily Development Cost and Affordability by Density and AMI Level Density (units/acre): 12 21 29 35 Affordable Monthly Rents 120% AMI $1,733 100% AMI $1,444 80% AMI $1,155 60% AMI $867 50% AMI $722 40% AMI $578 30% AMI Project Cost $433 $1,803,750 $2,993,998 $4,580,160 $5,437,120 $1,325 $1,275 $1,374 $1,355 ‐‐ ‐‐ ‐‐ ‐‐ Rent Required to Meet Financial Target Affordability Gap (Subsidy Needed) 120% AMI 100% AMI ‐‐ ‐‐ ‐‐ ‐‐ 80% AMI $186 $136 $235 $216 60% AMI $471 $421 $520 $501 50% AMI $613 $563 $662 $643 40% AMI $756 $706 $805 $786 30% AMI $898 $848 $947 $928 $1,644,100 $2,812,748 $4,379,710 $5,222,270 $1,238 $1,218 $1,328 $1,316 120% AMI ‐‐ ‐‐ ‐‐ ‐‐ 100% AMI ‐‐ ‐‐ ‐‐ ‐‐ 80% AMI $99 $79 $189 $177 60% AMI $384 $364 $474 $462 50% AMI $526 $506 $616 $604 40% AMI $669 $649 $759 $747 30% AMI $811 $791 $901 $889 With Fee Waiver and Land Donation Incentives Project Cost Rent Required to Meet Financial Target Affordability Gap (Subsidy Needed) 60 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Governmental Constraints to Affordable Housing Development While Comprehensive Plan level policies support future housing development and higher densities in appropriate locations, there are a few governmental barriers to providing higher density housing, as described in the previous sections. In summary, these barriers are listed below. Zoning Code There are several zoning issues that may hinder the development of both affordable and market rate housing. For instance, there are a significant number of vacant parcels in R‐R zones smaller than 12,000 square feet, primarily in the El Llanito, Charing Cross and Gutierrez neighborhoods (see Figure 19). With the exception of contiguous lots under the same ownership, these lots are currently undevelopable based on their lot size. In addition, large portions of the TOD plan areas currently have R‐R zoning, including most of the secondary housing area in the Downtown station area, and several small areas around the US 550 station. These would require zone changes in order to be developed as recommended in the TOD plan. While higher densities are allowed as Planned Unit Developments under the SU Special Use District, the additional layer of approval might be viewed as a barrier to density. However, once the Master Development Plan for the PUD is approved, projects that follow the Master Development Plan can proceed without additional zoning level review, such as a zone change or variances. Small lots and higher densities have been approved in planned unit developments. However, current zoning classifications provide for larger lots than what is typical in the Town’s historic neighborhoodsThe minimum lot sizes allowed are larger than in Albuquerque, but similar to provisions in Rio Rancho. For example, the minimum lot size for single family detached housing in Albuquerque is 4,000 square feet compared to 6,000 in Bernalillo. The minimum lot size for townhouses is 2,200 in Albuquerque compared to 4,000 in Bernalillo, except that Albuquerque zoning allows lots as small as 1,760 square feet when access is from the rear from an alley. Albuquerque’s spacing between buildings is ten feet compared to Bernalillo’s 15 feet. Rio Rancho and Los Lunas have similar minimum lots sizes to Bernalillo in residential zones, and both communities allow townhouses and higher densities in their multifamily zones. Similar to Bernalillo, Los Lunas has special density provisions for its Rail Runner Station Area. The Bernalillo Zoning Ordinance allows a maximum of four units per building for townhouses. Albuquerque’s Zoning Code does not limit the number of townhouse units in a building, except that only two units per building are allowed when the development abuts the rear or side yards of lots zoned for single family houses. Other residential zones, aside from R‐R, set minimum lots sizes that are larger than some existing lots. Figure 20 shows vacant parcels that are less than 6,000 square feet, and thus undevelopable under existing regulations. These are concentrated in the Rio Grande, Cocinitas and Charing Cross neighborhoods and could be targeted for infill townhome development. The plan recommends changing the zoning code to allow infill development on smaller lots as a conditional use to address this problem. Homes can be built on lots as small as 25 feet in width, especially if the lots have alley access. Figure 21 shows examples of such houses near downtown Albuquerque and narrow lot home designs. 61 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 19. Vacant Lots Smaller than 12,000 Square Feet in R‐R Zones . 62 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 20. Vacant Lots Smaller than 6,000 Square Feet in Residential Zones 63 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 21. Examples of Single Family Houses on or Designed for Narrow Lots 64 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Homes on narrow lots should be designed to ensure that the homes fit well with the neighborhood and meet all health and safety standards. Issues that should be considered if the Town allows development of small lots as conditional in its zoning ordinance are  Compliance with fire safety regulations, providing for at least five to ten feet between structures,  Setbacks consistent with neighborhood character,  Façade design to avoid a row of garage doors facing the street,  Adequate on‐site open space and  Adequate provision for off‐street parking. A third issue with current Bernalillo zoning is that accessory dwelling units (ADUs) are not allowed, except for garage apartments, which are permitted in the R‐2 zone. ADUs, also known as mother‐in‐law quarters or “casitas” are small residential units that share a parcel with a primary single‐family dwelling. They may be attached or separate from the main residence, and are usually are sized as a studio apartment. ADUs have multiple benefits:  They provide a source of affordable housing for individuals or couples, particularly young students or seniors who do not require a large living space;  They can serve a function similar to the compound housing traditionally found in Bernalillo, where family members live in close proximity to one another. ADUs work well for young adults leaving the main home, or older grandparents.  They provide an additional income source to the primary household renting out the ADU. This can be an important income stream to home‐owning seniors or others living on fixed incomes.  They are a source of higher density housing that fits the local character and history of the community. Bernalillo may wish to consider allowing ADUs in particular zones or neighborhoods as a conditional use, and even supporting ADU development through an informational campaign. Figure 22 shows a sample lot layout for an ADU at the rear of a single family lot. It is possible to accommodate these units, protect open space for residents and provide adequate parking. Figure 22. Sample Lot Layout with Accessory Dwelling 65 | T o w n o f B e r n a l i l l o H o u s i n g P l a n A constraint to multi‐family development is the lack of a zone that allows these as permitted uses. Apartments and townhouses are conditional uses in the R‐2, C‐R and C‐1 zones and in the SU zone subject to a master development plan. The approvals required add a layer of approvals that may be a constraint to higher density housing. The Town could either allow these uses as permitted uses in the R‐
2, C‐R and/or C‐1 zones or provide a zoning classification with apartments and townhouses as permitted uses. The higher density zone could be mapped in areas identified as suitable for higher densities, such as the TOD areas or the properties near Walmart on the west side. Affordable housing density bonuses could be incorporated into the zoning code. The Village of Los Lunas grants density bonuses of up to 20% to developers of housing developments that agree to one of several options:  Then percent of the units in a rental projects are affordable to households at or below 60% of AMI.  Five percent of rental units are affordable to households at or below 50% of AMI.  Ten percent of the total units in a for sale project are affordable for purchase by households at or below 80% of AMI.  A senior housing development. Affordability is defined based on household size. Designated affordable units must remain affordable for a period of at least thirty years. Although this provision has been considered for master planned communities, it has never been used. A 20% density bonus applied to the Town’s existing zones would allow for 5,000 square foot single family lots in the R‐1 and R‐2 zones and 3,333 square foot townhouse lots in the R‐2 zone. Subdivision Ordinance The Town could set aside funds to assist with water rights and park fees for subdivisions that include affordable housing. Assistance would be proportional to the percentage of affordable units and the level of affordability. In addition, the Town could consider narrow neighborhood streets in Planned Unit Developments. The ITE has set standards for narrow local streets in traditional neighborhoods. TOD Plan The Plan identifies the areas within walking distance of the Rail Runner stations as suitable for “affordable housing in mixed‐income, mixed‐use neighborhoods.” As noted in the previous section, the TOD Plan does not change existing ordinances, zoning or subdivision regulations. Rather the plan recommendations are intended to guide future development, including zone map amendments if needed. Developers must go through the zone map amendment process to accomplish the mixed‐uses and higher densities envisioned, potentially confronting neighborhood opposition. It will be important for the Town to uphold the policies of the TOD Plan for any zone map amendment requests that are consistent with the policies of the TOD Plan. Infrastructure Capacity In most of the Town, recent infrastructure upgrades have created adequate capacity for future growth. Infrastructure capacity is a potential barrier to development in the northern part of the town, east of I‐
25. Development here will require significant extensions of water and wastewater lines. The cost of line extensions is the responsibility of the developer, rather than the Town. As a result, housing prices affordable to low and moderate income housing may not support these infrastructure costs, even if 66 | T o w n o f B e r n a l i l l o H o u s i n g P l a n higher densities are allowed. However, a number of potential sites have been identified that are already served by water and wastewater. Non‐Governmental Constraints to Affordable Housing Development A number of issues were discussed with interviewees and the public to determine if they posed a constraint to housing development in Bernalillo. At the Town level, development process and procedures, permitting, fees and extractions, and availability of infrastructure were not deemed to be a hindrance to affordable housing development. The main issues that have posed a problem, particularly to multifamily housing, include the following. Physical Constraints to Development Physical constraints that potentially pose a threat to development include steep slopes and floodplain areas. These are shown in Figure 23. Although large portions of the Town lie within the floodplain, this has not been a hindrance to development. Most of the flooding risk is related to water flowing from the Sandia Mountain Watershed, rather than from Rio Grande flooding. The Eastern Sandoval County Arroyo Flood Control Authority (ESCAFCA) is currently installing flood control facilities throughout the town, in the areas shown in Figure 23 to address flooding. Traditional Neighborhood Values While there is vacant land in Bernalillo’s traditional neighborhoods, most is privately owned. It is very common for landowners to keep property and housing in the family. They are not likely to sell to a builder – rather landowners give or sell land to family members. Large parcels adjacent to the newer neighborhoods west of the Rio Grande offer other opportunities for residential development at a range of densities. These large parcels are suitable for a single family or multi‐family builder. Individual lots in existing subdivisions do not present this same opportunity. Vacant lots in Alegria are preplanned, with specific home models designated for each parcel. Land in large lot subdivisions is intended for one custom designed single family residence and is expensive. Market Demand Bernalillo is adjacent to Rio Rancho, one of the fastest‐growing cities in New Mexico. Because of the rapid housing development in Rio Rancho, both of single‐family and multifamily developments, Bernalillo has not experienced as much growth, particularly in apartments. Many of the recent Rio Rancho multifamily developments are right on the edge of Bernalillo, providing a source of housing to Bernalillo residents. Nevertheless, Bernalillo residents who wish to reside within the town, particularly in the core of the town, have a difficult time finding suitable housing. Interviews with owners of rental properties, including an owner of several homes and duplexes and an owner of mobile home rental lots, indicate that while they can quickly find new tenants through word of mouth or a sign posted on the property, they are not contacting them looking for rentals. However, the perceived lack of demand could be the result of the Town’s historic lack of rental housing and the availability of rental housing in Rio Rancho and Albuquerque. 67 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Public Perception In the past, residents of Bernalillo have not embraced higher density projects such as apartments, townhomes and condominiums, as not being in line with the local character and history. Some stakeholders, however, indicated that the public would likely be more in favor of projects that included affordable units, as previous proposals have been of a price range out of reach to most residents. Furthermore, as the TOD Plan showed, there are a number of housing styles, including compound housing, plaza housing and courtyard housing, that are in fact in line with the historical character of the town, and that have higher densities similar to those already present in the core of the town. Based on stakeholder interviews, the public perception is that projects like the subsidized single family housing in the Sawmill neighborhood do not help local families. A strategy for marketing new affordable housing to local residents and former residents would help ensure that new affordable housing benefits local families. 68 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 23. Physical Constraints to Development and Flood Control Projects 69 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Potential Areas for New Housing Developments Despite the issues noted above, Bernalillo has developable vacant land in appropriate zones, including in R‐2 and C‐R zones that would allow apartments or townhomes. These are potential locations for future multifamily development. The areas appropriate for future housing development, based on existing conditions, are shown in Figure 24. Zoning approvals will be required for apartments or townhouse development at any of these sites. The identified properties include: A. Calle los Mayores. The Town of Bernalillo and the Santa Fe Civic Housing Authority have expressed interest in building new subsidized senior housing units, although the project could also include income‐eligible families. Approximately 7 acres is available for development. The site’s capacity is 40 to 60 new units, which would surpass the current senior housing need. The Town may want to consider allocating a portion of these units to income‐eligible families, and increase the size to 2‐ and 3‐bedrooms for those units. The site is has infrastructure in place or nearby, and it is zoned E‐Exempt ‐ Government. Rezoning, if required, will be initiated by the Town. This property is owned by the Town and would be donated for a suitable project. B. NMDOT site near Downtown Rail Runner stop. The Town of Bernalillo has expressed interest in having a housing trust developed on a 5.6‐acre property owned by the NM Department of Transportation, if the DOT is willing to enter into a land trade agreement. This site would be suitable for a combination of single‐family owner‐occupied units and multifamily units. Capacity for this site ranges from 35 to 70 units, depending on density. One challenge with this site is that due to its current and past use as a vehicle maintenance yard, it is currently classified as a brownfield, and would require environmental remediation before being an appropriate location for housing. This site is zoned for Government use, so rezoning would be needed. This property is currently owned by the NMDOT, and the Town is working with them to obtain the site. If the Town is successful in securing the property, it can be donated or offered at a reduced cost for an appropriate affordable housing project. Infrastructure is adequate for residential use. The site is zoned E‐Exempt ‐ Government. Rezoning, if required, will be initiated by the Town. C. TOD Housing Development in the Downtown Rail Runner Station Area. Additional housing in the vicinity of the Downtown Rail Runner stops should be pursued by private landowners, consistent with the densities and housing styles proposed in the TOD plan. These properties are privately owned. Infrastructure is in place. As identified in the analyses of the TOD plans and development constraints, the properties are not zoned for the densities proposed in the plan document. Zone map amendments and conditional use approvals will be necessary to enable the townhouses, apartments and mixed uses proposed in the plan. Town support of the Station Area Plan policies will be important to the successful development of this Station Area. D. TOD Housing Development in the US 550 Rail Runner Station Area. Several potential sites, labeled D‐1, D‐2 and D‐3 in Figure 24, are located near the US 550 Rail Runner station. These sites are suitable for residential and mixed use development consistent with the TOD Plan. These properties are privately owned. Infrastructure is in place. These properties are zoned RR and C‐1, both of which would require a zone map amendment and conditional use approval. The sites could be developed through the SU zone as PUD’s, which requires a zone map amendment 70 | T o w n o f B e r n a l i l l o H o u s i n g P l a n and master development plan. As with site C, Town support of adopted policies will be important to realize the higher density housing envisioned here. E. Potential Sites West of the Rio Grande. Large tracts of land located adjacent to and behind the Walmart on NM 528 are zoned R‐2. Due to their proximity to the commercial area, this would be a prime location for larger scale apartments, though affordable single‐family homes could also be built here. Based on the size of the site, it has a capacity of 100 to 180 units, depending on density. These properties are privately owned. Infrastructure is in place. A conditional use approval is required for apartments and townhouses in the R‐2 zone. In addition to the large sites above, there are a number of vacant lots within existing neighborhoods that could be targeted for infill development. These are shown in Figure 25, and include parcels with suitable lot sizes, as well as those noted earlier in the chapter than cannot be developed under existing zoning regulations. Finally, the Rio Grande neighborhood, located in the heart of the Town, has a lot of vacant land, and would be ideal for the development of small subdivisions for new single family housing. Zoning in the Rio Grande neighborhood is a mix of residential and commercial. Minimum lot sizes are 5,000 to 6,000 square feet for single family use, depending on the zone. Smaller lots would help reduce housing costs. A density bonus, development as a PUD, or ordinance change would be needed to enable smaller lots. 71 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 24. Potential Sites for Housing Development A. Calle los Mayores
D. US 550 Station Area TOD Sites
B. NMDOT Site E. West Side Sites C. Downtown Station Area TOD
72 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Figure 25. Other Vacant Parcels Suitable for Infill Development. 73 | T o w n o f B e r n a l i l l o H o u s i n g P l a n VII. Goals and Recommendations Quantifiable Objectives The Town of Bernalillo has the following goals for new housing development. Table 27. Yearly Objectives to Meet Housing Need Type of Housing Total Need Entry Level Home Ownership Opportunities Current: 48 units Future: 560 units Market Rate Rental Units* Current: 50 units Future: 150 units Subsidized Senior Housing* Housing Choice Vouchers Subsidized Rental Housing, including housing choice vouchers and new construction* Yearly Goal Based on Existing Capacity 10 to 12 units per year 24 to 30 units per phase, with subsequent phases to begin as prior phase is fully leased. A total of up to 200 units. Current: 76 units 150 to 180 units, Future:150 to 180 potentially in units phases. Current: 83 Increase vouchers vouchers available to cost‐
Future: 100 burdened vouchers Bernalillo households by 10 to 15 per year 305 total units Future: up to 350 new units Responsible Party Town of Bernalillo Role Private developers; Santa Fe Civic Housing Authority for infill lots Density bonuses or other incentives to developers, including affordable housing options. (See Recommendations for more details). Make Town‐owned properties available through donation or at a discounted cost for development of housing targeted to 80% of AMI or below. This could include any properties acquired through code enforcement. Density bonuses or other incentives to developers that include affordable housing options. (See Recommendations for more details). Private developers,
potentially partnered with a non‐profit for mixed income projects. Santa Fe Civic Housing Authority Donate city‐owned site
adjacent to existing Calle los Mayores property. Santa Fe Civic Housing
Authority Work with SFCHA to identify cost burdened renter households and landlords suitable for the Housing Choice Vouchers to take advantage of new waiting list when it opens. Density bonuses or other incentives to developers including affordable housing options. (See Recommendations for more details). New construction Santa Fe Civic Housing of up to 350 units – Authority 24 to 30 unit Other housing non‐profit phases; 35% 1‐BR 35% 2‐BR 20% 3‐BR 5% 4‐BR 74 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Type of Housing Housing Rehabilitation (focus on owner occupied units) Emergency Homeless Shelter Total Need 294 mobile homes 413 single family units 16 multi‐family units 10‐15 beds Yearly Goal Based on Existing Capacity 3 to 6 units per year 15 beds
Responsible Party Town of Bernalillo Role Existing non‐profits institutions. Santa Fe Civic HA has expressed interest; Rebuilding Together Sandoval County Interested non‐profit
Administrative and other support to non‐profit organizations. Assistance through code enforcement to ID owners in need and require landlords to comply. Work with Sandoval County to identify potential sites; support with zone changes if necessary. Work with Sandoval County to identify potential sites; support with zone changes if necessary. Work with local non‐profits to provide new housing units or to identify suitable housing in the community; educate landlords on habitability standards Transitional Housing 10‐15 units or beds 15 beds/units
70% 1‐BR 30% 2‐BR Interested non‐profit
Long Term Supportive Housing 10‐15 units Increase vouchers by five units per year or provide 10 to 15 units in a single complex. 30% 1‐BR 50% 2‐BR 20% 3‐BR Interested non‐profit
*New multifamily projects will be built in phases, with each phase representing a multi‐year goal. Policy and Program Recommendations The following policy recommendations are aimed at addressing existing barriers and constraints to housing development in Bernalillo. 1. Adopt this Affordable Housing Plan as an addendum to the Comprehensive Land Use Plan. 2. Adopt an Affordable Housing Ordinance pursuant to the requirements of the New Mexico Affordable Housing Act. 3. Make the following changes to the zoning code: a. Allow the development of housing on existing lots that are too small to be developed under current regulations, as a conditional use. Include provisions for the following in the zoning code amendment to allow development of substandard lots: i. Street access. ii. Emergency access to the unit from a street or alley. iii. Size (allow development of small lots, which typically range from 25 to 40 feet wide). iv. Parking must be accommodated on site. Alley access is preferred. v. House must meet front and rear yard setback; side yard may be reduced to minimum that meets fire code. vi. Useable on‐site open space or proximity to common open space. 75 | T o w n o f B e r n a l i l l o H o u s i n g P l a n b. Allow accessory dwelling units as a conditional use in residential zones. The ADU policy should include language that specifies: i. A lot size that can accommodate additional dwelling within standard setbacks. ii. Useable open space (not occupied by buildings) per lot, either on site or nearby common open space. iii. Space for on‐site parking or available on‐street parking; the goal is to avoid parking in front yards other than driveways. iv. Allowed setbacks. The rear yard setback for accessory buildings rather than the setback for the primary residence would typically apply. v. Whether or not the ADU must blend architecturally with the existing primary residential units c. Amend the R‐2 and C‐R zones to allow townhomes and apartments as a permitted use, rather than conditional use. (Currently, townhomes are not allowed in the C‐R zones, though apartments are as a conditional use, and both are allowed as conditional uses in the R‐2 zone). As part of these amendments, reduce the spacing between structures to ten feet eliminate the restrictions on units per structure except for lots adjacent to R‐R, R‐1 and R‐1A zoned lots. d. Consider amending the R‐2 and C‐R zones to allow homeless shelters and transitional housing facilities as conditional uses, identified as community residential programs. Items to consider when determining eligibility for development include: i. The facility should have all applicable licenses from the State of New Mexico. These should be provided as part of a conditional use application. ii. For facilities not licensed by the State, programs must satisfy the Town of Bernalillo that they meet all Town ordinances and regulations and that the health and safety of the residents will be adequately protected. iii. The facility should provide a planned program of care with a full‐time programmatic supervisor, counseling and/or therapy, and assistance in the development of daily living skills. iv. The design of the facility should be compatible with the neighborhood within which is located, including the building size, roofline, setbacks, landscaping, location of parking, and garage location. v. The program operators should have a written plan for maintaining good relationships with neighboring residents and businesses. vi. To ensure that facilities are well integrated into their neighborhoods, community residential facilities should be separated from one another. A spacing of 1,000 to 1,500 feet may be appropriate. And the Town may elect to limit the total number of facilities per neighborhood. vii. The Town may also want to review other zones to ensure that once a community residential facility is established, uses that would be detrimental to the residents not be allowed nearby. An example of this would be modifying the Town Zoning Ordinance to restrict the location of bars or package liquor stores to a certain distance from a residential facility for the treatment of substance abusers. 4. Approve zone code changes or variances on projects that conform to the recommended land uses and projects set forth in the TOD plan. 76 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 5. Create an informational program (brochure) to promote and educate the public about the development of ADUs as an affordable housing resource. 6. Work with Sandoval County and interested non‐profits to identify an appropriate location for a homeless shelter and transitional housing facilities. 7. Offer incentives to developers willing to include a percentage of affordable housing units in their developments. Potential incentives include: a. 20% density bonuses over existing zoning b. Elimination or reduction of development fees and utility hookup fees for affordable units c. Land donation where appropriate d. Assistance with off‐site infrastructure costs Each development will be considered on a case by case basis. Resources that are available or could be available once the Affordable Housing Ordinance is in place include density bonus and donation of Town‐owned land adjacent to the existing public housing. The Town is actively pursuing a trade with NMDOT for the department’s yards. The local funds to cover fee waivers and assistance with infrastructure cost have not yet been budgeted. 8. Improve existing code enforcement efforts to ensure that houses in Bernalillo are maintained in acceptable condition. 9. Pursue condemnation and demolition of buildings or other structures that are in violation of the Town building code and deteriorated beyond repair. The process for this is described in NMSA 3‐18‐
5, powers of municipalities. The cost of removal of a condemned building is the responsibility of the land owner. Ideally, the Towns efforts to eliminate dangerous buildings and debris will encourage owners to repair or remove substandard buildings. If, however, property owners refuse to remove the building or debris and refuse to cover the cost of the Town paying for removal, the Town can file a lien against the property. The lien can be foreclosed, and some communities have obtained property in this way when property owners refuse to either remove the dangerous structure or refuse to cover the costs to the municipality. 10. Any properties obtained through efforts to remove dangerous buildings or debris from properties could be offered to the Santa Fe Civic Housing Authority or other agency to develop with affordable single family housing or townhomes, depending on location and lot size. Potential Sources of Financing and Subsidies to Support Housing Development Appendix C contains a list of federal, state and local financing for housing. Resources include programs and financing or other support for rental, homeownership and special needs housing. Because it is contiguous and adjacent to the City of Rio Rancho, an urban area with a population greater than 50,000, Bernalillo is not currently eligible for rural development programs of the US Department of Agriculture (USDA). However, USDA/Rural Development programs are typically designed for smaller communities like Bernalillo. There is a discretionary provision that can apply to areas that are determined to be “rural in character” and are (1) an urbanized area that has two points on its boundary 77 | T o w n o f B e r n a l i l l o H o u s i n g P l a n that are at least 40 miles apart, which is not contiguous or adjacent to a city or town that has a population of greater than 150,000 inhabitants or the urbanized area of such a city town; or (2) an area within an urbanized area contiguous and adjacent to a city or town of greater than 50,000 population that is within ¼ mile of a rural area. Bernalillo could petition for this designation. 78 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Appendix A. Public Involvement July 18, Public Meeting Attendance Present: 6 attendees, including members of the general public, representatives of area nonprofits, and Town of Bernalillo employees, in addition to two Sites Southwest consultants. Agenda 
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Welcome and Introductions Background and Plan Purpose Large Group Discussion Small Group Exercise and Debrief Materials Handouts: Bernalillo Demographic Trends Additional Materials on Hand: Bernalillo Zoning Ordinance Bernalillo TOD Plan; Housing Section Maps: Zoning Map Aerial Map with Neighborhoods Map of Publicly‐Owned Parcels Summary Town of Bernalillo Director of Community Development and Capital Programs, Maria Rinaldi, welcomed the attendees and introduced the consulting team, Sara Bautista and Barbara Herrington. Sara Bautista described the purpose and process of creating an affordable housing plan, and the potential ways it could impact the town. Ms. Bautista then reviewed the demographic information sheet with the attendees. Of particular note was the lower median income level of Bernalillo residents compared with that of Sandoval County and the state, as well as the higher instance of poverty among families and individuals in Bernalillo. Housing data was also telling: of the available homes for sale, only 11.2% were in a price range affordable to families earning less than 100% of the area median income (AMI), while 73% were affordable only to those earning 120% or more of the AMI. Ms. Bautista reviewed the initial finding that young families and individuals seemed to be those most in need of affordable housing. Meeting participants validated this finding, sharing anecdotal information about two young Bernalillo firefighters who had been approved for financing, but were unable to find housing in the town. There was a brief discussion about other young people who sought housing in Bernalillo, but were forced to live in Rio Rancho because of the 79 | T o w n o f B e r n a l i l l o H o u s i n g P l a n dearth of local affordable housing. Meeting attendees highlighted the closeness of town residents and the local tradition of intergenerational housing and compound living, underscoring the important need for affordable housing for young adults and working families. Ms. Wykel, a representative of Haven House, an area domestic violence service provider, shared information about the greatest housing needs facing the organization’s clients. She listed subsidized affordable housing (primarily rentals), transitional housing and residential treatment programs (for individuals dealing with substance abuse) as the greatest needs. Next, Ms. Bautista led the group in a discussion of housing assets and issues in Bernalillo. The assets listed were many, including:  The character: unique housing styles rather than tract housing or typical suburban subdivisions; multigenerational compound housing; the tradition of single family housing density; buildings with historic significance  A close‐knit, small town with strong cultural traditions and history  The adoption of MainStreet design guidelines  The presence of two Rail Runner stations  The presence of land available for development  The transition of the local housing authority to the Santa Fe Civic Housing Authority, which has a development arm In addition to the overall lack of affordable housing, meeting attendees listed other housing issues. Among those were:  Insider/outsider issues between Anglo and Mexican newcomers and the longstanding Hispanic community; sense that the West side homes are not part of the community  The perception that the Town doesn’t benefit much from the expensive new homes built on the West side, either through property taxes or dollars spent in the community  The perception that increased density allowances have not led to increased affordable housing, but rather higher profit margins for developers; residents tend to think of “high density” as a bad thing despite the historical pattern of high density single family housing development in Bernalillo’s core neighborhoods  The need for housing rehabilitation. Although there is a Youth Conservation Corps, it is unable to work on private homes due to the anti‐donation clause. (The group discussed how an Affordable Housing Act could potentially allow this type of rehabilitation assistance to low‐income households). Following this overview, attendees continued to work together on the mapping exercise, while Ms. Bautista noted items on an aerial photo of the study area. Participants noted several neighborhoods in need of rehabilitation, including the Sawmill and Cocinitas neighborhoods. The Mountain View and Charring Cross neighborhoods, both of which are comprised primarily of mobile homes, were also deemed in need of rehabilitation. The Gutierrez neighborhood is an area with lots of potential for infill development, while the Rio Grande neighborhood, with its availability of larger tracts of vacant land, was deemed appropriate for future larger scale single family home developments (subdivisions). Multifamily development would be appropriate in the areas around the Rail Runner stations and along the main street, as indicated in the Bernalillo TOD plan. 80 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Finally, there was much discussion surrounding the appropriate styles of affordable housing development for Bernalillo. Participants noted that local residents very much value home ownership, homes with unique character, and homes that have “their own space” and yet are well‐integrated into the community (rather than either “cookie cutter” homes or apartment buildings whose design limits neighbor interaction). Family compound housing, duplexes and 4‐plexes were considered to be acceptable styles of multifamily housing, though attendees noted that two‐ or 2 ½ story multifamily buildings might be appropriate in some areas. Infill development and the allowance of accessory dwelling units (ADUs or “casitas”) were considered highly desirable in Bernalillo as a source of affordable housing. Finally, for larger projects, participants supported the idea of mixed income developments that would not clearly distinguish which residents/units were “low income.” Interviews The following stakeholders contributed information to the plan through one‐on‐one interviews. Ron Abouselman, Bernalillo Landlord Ben Beck, Bernalillo Landlord Ron Bohannan, Tierra West Porter Dees, La Puerta Realty Fawn Dolan, community volunteer and business owner Jeff Hoehn, Development Director, Abrazos Family Support Services John Rinaldi Apartments, Assistant Manager Wendy Kent, New Mexico Youth Conservation Corps Bianca Lloyd, Community Support Worker, Hogares Cheryl Manning, La Villa Elena Apartments Sandy Poling, La Puerta Realty Ed Romero, Executive Director, Santa Fe Civic Housing Authority Linda Simon, Executive Director, La Buena Vida Patricia Taraddei, Town of Bernalillo Department of Housing Services Diane Torrance, Executive Director, Haven House Wayne Wormwood, Town of Bernalillo Building Inspector 81 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Appendix B. Minimum Density Calculations 82 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Table B‐1. Minimum Density Calculations ‐ Single Family for Sale Unit Type Parcel Size (acres) Low Density ‐ R‐1 Zones, 6 units/ac. Moderate Density ‐ R‐2 Zone, 9 units/ac Townhomes ‐ TOD Areas Density (units per acre) SF Detached Parking Spaces per Unit Average Unit Size DEVELOPMENT COST STRUCTURE Raw Land Cost/SQFT Land Development Cost/SQFT Construction Cost/SQFT Soft Costs as % of Development Costs DEVELOPMENT SUMMARY Land Cost Low Density ‐ R‐R Zone, 3 units/ac. % of AMI 120 100 Low‐Income (80% AMI) 60 Very Low Income (50% AMI) 40 30 PROJECT OUTLINE Income Limit $73,200 $61,000 $48,800 $36,600 $30,500 $24,400 $18,300 Monthly Hsg Cost @ 28% $1,708 $1,423 $1,139 $854 $712 $569 $427 Inputs Principal & Int $1,357 $1,131 $904 $678 $565 $452 $339 Affordable Price $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 SF Attached or Detached SF Detached SF Attached 1 1 1 1 3 6 9 14 2 1,500 2 1,500 2 1,500 2
1,500 $2.00 $2.00 $100.00 $2.00 $2.00 $100.00 10% 12,000 Lot Size Total Units Land Cost per unit Land Development Cost per unit Total Land Cost per unit Construction Cost per unit Soft Costs per unit Total Cost Developer/Builder Profit Housing Price 83 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 10%
4,000 6 $14,520.00 $14,520.00 $29,040.00 $150,000.00 $16,452.00 $195,492.00 $12,706.98 $208,198.98 $2.00 $2.00 $100.00 10% 6,000 3 $29,040.00 $29,040.00 $58,080.00 $150,000.00 $17,904.00 $225,984.00 $14,688.96 $240,672.96 $2.00 $2.00 $100.00 10% 2,645 9 $9,680.00 $9,680.00 $19,360.00 $150,000.00 $15,968.00 $185,328.00 $12,046.32 $197,374.32 14
$6,222.86
$6,222.86
$12,445.71
$150,000.00
$2,442.57
$13,179.72
$178,068.00
$11,574.42
Low Density ‐ R‐R Zone, 3 units/ac. Inputs Market Rate Housing Price Affordable House Price 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI Gap* 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI FINANCING STRUCTURE ASSUMPTIONS Interest Rate (%) Term (years) Annual Housing Costs % Down Downpayment Loan Amount Annual Debt Service Insurance Property Tax Total PITI Low Density ‐ R‐1 Zones, 6 units/ac. $240,672.96 Moderate Density ‐ R‐2 Zone, 9 units/ac $208,198.98 $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐ $3,772 $51,320 $98,658 $122,327 $145,996 $169,666 $197,374.32 $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐ ‐‐ $18,846 $66,184 $89,853 $113,522 $137,192 4.0% 30 $189,642.42
$284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐ ‐‐ $8,021 $55,360 $79,029 $102,698 $126,367 4.0% 30 Townhomes ‐ TOD Areas $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐
‐‐
$289 $47,628 $71,297 $94,966 $118,635 4.0% 30 4.0%
30
5% $12,034 $228,639 $13,099 $1,203.36 $2,189 $16,491 5% $10,410 $197,789 $11,331 $1,040.99 $1,894 $14,266 5% $9,869 $187,506 $10,742 $986.87 $1,795 $13,524 5%
$9,482 $180,160 $10,321 $948.21 $1,725 $12,994 * Shaded areas show where affordability gap exists. Negative numbers indicate that a household at this income level could afford a higher payment than required to purchase the example home. 84 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Appendix Table B‐2. Minimum Density Calculations, Multifamily Rental Inputs Scenario 1 PROJECT OUTLINE Unit Type Parcel Size (acres) Density (units per acre) Parking Spaces per Unit Average Unit Size Common Area Percentage DEVELOPMENT COST STRUCTURE Land Cost/SQFT Site Prep/SQFT Construction Cost/SQFT Parking Cost/Space Soft Costs as % of Construction Costs FINANCING STRUCTURE Required Debt‐Coverage Ratio Interest Rate (%) Term (years) Cap Rate OPERATING COST STRUCTURE Avg. Vacancy Rate Annual Operating Expense per SF RENTS (month/unit) Market Rent Affordable Rent 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI Gap 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI Scenario 2 MF‐L 1 12.0 1.75 850 10% $3.00 $2.00 $105.00 $2,000 30% 85 | T o w n o f B e r n a l i l l o H o u s i n g P l a n ‐‐ ‐‐ $186 $471 $613 $756 $898 $1,374 $1,708 $1,423 $1,139 $854 $712 $569 $427 $1,355 $1,708 $1,423 $1,139 $854 $712 $569 $427 ‐‐ ‐‐ $136 $421 $563 $706 $848 5.0%
$4.75 1.20 6.5%
30
6.50%
5.0% $4.75 $1,275 $1,708 $1,423 $1,139 $854 $712 $569 $427 $3.00 $2.00 $120.00 $2,000 30%
1.20 6.5% 30 6.50% 5.0% $4.75 $1,325 Urban Density
1 35 1.25
850 10%
$3.00 $2.00 $120.00 $2,000 30% 1.20 6.5% 30 6.50% 5.0% $4.75 Scenario 4 MF‐H 1 29 1.75 850 10% $3.00 $2.00 $105.00 $2,000 30% 1.20 6.5% 30 6.50% Scenario 3 MF‐M 1 21 1.75 850 10% $1,708 $1,423 $1,139 $854 $712 $569 $427 ‐‐ ‐‐ $235 $520 $662 $805 $947 ‐‐
‐‐
$216 $501 $643 $786 $928 Inputs Scenario 1 DEVELOPMENT SUMMARY Land Cost Site Prep Residential Units Unit Square Footage Common Area Square Footage Total Square Footage Construction Cost Parking Spaces Parking Construction Cost Soft Costs Total Development Cost Project Value Annual Debt Service Equity Loan Amount Annual Debt Service OPERATING SUMMARY (FULL OCCUPANCY) Gross Scheduled Rent ‐Vacancies ‐Expected Operating Expenses Net Operating Income Desired Net Income Net Income DEBT‐EQUITY POSITION Project Cost (from above) Supportable Mortgage Required Initial Cash (Gap) Effective Loan to Value Project Value from Cap Rate $130,500 $87,120 12 10,200 1,020 11,220 $1,178,100 21 $42,000 $366,030 $1,803,750 $1,803,750 $130,500 $87,120 21 17,850 1,785 19,635 $2,061,675 37 $74,000 $640,703 $2,993,998 $2,993,998 $360,750 $1,443,000 ($109,449) 86 | T o w n o f B e r n a l i l l o H o u s i n g P l a n $1,087,424 $4,349,696 ($329,916)
$478,152 ($23,908) ($117,088) $337,157 $38,677 $38,776 Bottom Lines $1,803,750 $1,445,269 $358,481 80.13% $2,043,231 $130,500 $87,120 35 29,750
2,975
32,725
$3,927,000 44
$88,000 $1,204,500 $5,437,120 $5,437,120 $916,032 $3,664,128 ($277,917) $321,300 ($16,065) ($84,788) $220,448 $23,301 $23,361 $130,500 $87,120 29 24,650 2,465 27,115 $3,253,800 51 $102,000 $1,006,740 $4,580,160 $4,580,160 $598,800 $2,395,198 ($181,671) $190,800 ($9,540) ($48,450) $132,810 Scenario 4 Scenario 3 * Shaded areas show the gap between monthly cost and market rents. Scenario 2 $569,100 ($28,455)
($141,313)
$399,333 $59,224 $59,240 Bottom Lines $2,993,998 $2,398,960 $595,037 80.13% $3,391,500 $70,947 $69,416 Bottom Lines $4,580,160 $3,669,019 $911,141 80.11% $5,187,029 Bottom Lines
$5,437,120 $4,345,628 $1,091,492 79.93%
$6,143,577 Table B‐3. Minimum Density Calculations ‐ Single Family for Sale with Fee Waivers and Donated Land Low Density ‐ R‐R Zone, 3 units/ac. Inputs PROJECT OUTLINE Unit Type Parcel Size (acres) Density (units per acre) Parking Spaces per Unit Average Unit Size DEVELOPMENT COST STRUCTURE Raw Land Cost/SQFT Land Development Cost/SQFT Construction Cost/SQFT Fees per unit Soft Costs as % of Development Costs DEVELOPMENT SUMMARY Land Cost Lot Size (sf) Total Units Land Cost per unit Land Development Cost per unit Total Land Cost per unit Construction Cost per unit Fees per unit Soft Costs per unit Total Cost Developer/Builder Profit Housing Price Low Density ‐ R‐1 Zones, 6 units/ac. SF Detached SF Attached or Detached 1 6 2 1,500 Townhomes ‐ TOD Areas SF Detached 1 3 2 1,500 Moderate Density ‐ R‐2 Zone, 9 units/ac SF Attached 1 9 2 1,500 1 14 2
1,500 $2.00 $2.00 $100.00 $2,508.33 $2.00 $2.00 $100.00 $2,466.67 $2.00 $2.00 $100.00 $2,461.11 $2.00 $2.00 $100.00 $2,442.57 10% Less Fees 10% Less Fees 10% Less Fees 10%
Less Fees
12,000 3 $0.00 $29,040.00 $29,040.00 $150,000.00 $0.00 $15,395.67 $194,435.67 $12,638.32 $207,073.99 87 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 6,000 6 $0.00 $14,520.00 $14,520.00 $150,000.00 $0.00 $13,985.33 $178,505.33 $11,602.85 $190,108.18 4,000 2,645 9 14
$0.00 $0 $9,680.00 $6,223 $9,680.00 $6,223 $150,000.00 $150,000 $0.00 $0 $13,506.89 $13,028 $173,186.89 $169,251 $11,257.15 $11,001
$184,444.04 $180,253
Scenario 1 Affordability Affordable House Price 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI Gap* 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI FINANCING STRUCTURE ASSUMPTIONS Interest Rate (%) Term (years) Annual Housing Costs % Down Downpayment Loan Amount Annual Debt Service Insurance Property Tax Total PITI Scenario 2 $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 Scenario 3 $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐ ‐‐ $17,721 $65,059 $88,728 $112,398 $136,067 $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐ ‐‐ ‐‐ ‐‐ $755 $48,093 $71,763 $95,432 $119,101 ‐‐ $42,429 $66,098 $89,768 $113,437 ‐‐
$38,238 $61,907 $85,576 $109,245 5.0% 30 5.0% 30 4% $8,283 $198,791 $12,806 $1,035 $1,883 $15,725 $284,239 $236,901 $189,353 $142,015 $118,346 $94,676 $71,007 ‐‐ ‐‐ Scenario 4 5.0% 30 4% $7,604 $182,504 $11,757 $951 $1,729 $14,436 5.0%
30
4% $7,378 $177,066 $11,406 $922 $1,678 $14,006 4%
$7,210 $173,042 $11,147 $901 $1,640 $13,688 * Shaded areas show where affordability gap exists. Negative numbers indicate that a household at this income level could afford a higher payment than required to purchase the example home. 88 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Appendix Table B‐4. Minimum Density and Incentive Calculations, Multifamily Rental Inputs PROJECT OUTLINE Unit Type Parcel Size (acres) Density (units per acre) Parking Spaces per Unit Average Unit Size Common Area Percentage DEVELOPMENT COST STRUCTURE Land Cost/SQFT Site Prep/SQFT Construction Cost/SQFT Parking Cost/Space Fees per Project Soft Costs as % of Construction Costs FINANCING STRUCTURE Required Debt‐Coverage Ratio Interest Rate (%) Term (years) Cap Rate OPERATING COST STRUCTURE Avg. Vacancy Rate Annual Operating Expense per SF RENTS (month/unit) Market Rent Affordable Rent 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI Gap 120% AMI 100% AMI 80% AMI 60% AMI 50% AMI 40% AMI 30% AMI Scenario 1 Scenario 2 Scenario 3 MF‐L 1 12.0 1.75 850 10% MF‐M 1 21 1.75 850 10% $3.00 $2.00 $105.00 $2,000 $29,150.00 30% Less Fees 5.0% $4.75 $1,238 5.0% $4.75 $1,218 $1,708 $1,423 $1,139 $854 $712 $569 $427 1.20 6.5% 30 6.50% $1,328 $1,708 $1,423 $1,139 $854 $712 $569 $427 ‐‐ ‐‐ $99 $384 $526 $669 $811 89 | T o w n o f B e r n a l i l l o H o u s i n g P l a n $3.00 $2.00 $120.00 $2,000 $69,950.00 30% Less Fees 1.20 6.5% 30 6.50% 5.0% $4.75 MF‐H 1 29 1.75 850 10% $3.00 $2.00 $105.00 $2,000 $50,750.00 30% Less Fees 1.20 6.5% 30 6.50% $1,708 $1,423 $1,139 $854 $712 $569 $427 ‐‐ ‐‐ $79 $364 $506 $649 $791 Scenario 4 ‐‐ ‐‐ $189 $474 $616 $759 $901 Urban Density 1 35 1.25 850 10% $3.00 $2.00 $120.00 $2,000 $84,350.00 30% Less Fees 1.20 6.5% 30 6.50% 5.0% $4.75 $1,316 $1,708 $1,423 $1,139 $854 $712 $569 $427 ‐‐ ‐‐ $177 $462 $604 $747 $889 Scenario 1 DEVELOPMENT SUMMARY Land Cost Site Prep Residential Units Unit Square Footage Common Area Square Footage Total Square Footage Construction Cost Parking Spaces Parking Construction Cost Fees Soft Costs Total Development Cost Project Value Annual Debt Service Equity Loan Amount Annual Debt Service OPERATING SUMMARY (FULL OCCUPANCY) Gross Scheduled Rent ‐Vacancies ‐Expected Operating Expenses Net Operating Income Desired Net Income Net Income DEBT‐EQUITY POSITION Project Cost (from above) Supportable Mortgage Required Initial Cash (Gap) Effective Loan to Value Project Value from Cap Rate Scenario 3 Scenario 4 $0 $87,120 $0 $87,120 $0 $87,120 $0 $87,120 12 10,200 1,020 11,220 $1,178,100 21 $42,000 $0 $336,880 $1,644,100 $1,644,100 21 17,850 1,785 19,635 $2,061,675 37 $74,000 $0 $589,953 $2,812,748 $2,812,748 29 24,650 2,465 27,115 $3,253,800 51 $102,000 $0 $936,790 $4,379,710 $4,379,710 35 29,750 2,975 32,725 $3,927,000 44 $88,000 $0 $1,120,150 $5,222,270 $5,222,270 $328,820 $1,315,280 ($99,762) $562,550 $2,250,198 ($170,673) $178,272 ($8,914) ($48,450) $120,908 $306,936 ($15,347) ($84,788) $206,802 90 | T o w n o f B e r n a l i l l o H o u s i n g P l a n $1,044,454 $4,177,816 ($316,880) $462,144 ($23,107) ($117,088) $321,949 $36,548 $36,128 Bottom Lines $1,644,100 $1,315,753 $328,347 80.03% $1,860,129 $875,942 $3,503,768 ($265,754) $21,343 $21,147 * Figures show the gap between affordable monthly cost and market rents. Scenario 2 $56,952 $56,195 Bottom Lines $2,812,748 $2,250,464 $562,284 80.01% $3,181,565 $552,720 ($27,636) ($141,313) $383,772 $67,989 $66,892 Bottom Lines $4,379,710 $3,503,526 $876,184 79.99% $4,953,066 Bottom Lines $5,222,270 $4,176,290 $1,045,980 79.97% $5,904,177 Appendix C. Funding Resources The following lists potential sources of federal, state and local financing and subsidies to support affordable housing in New Mexico. Resources are listed by type of housing and funding agency or source. Primary resources include HUD, FHA and the New Mexico Mortgage Finance Authority (NMMFA). Bernalillo is ineligible for USDA Rural Development Programs. The information is not all‐
inclusive, but it provides the Town with information about the most commonly used housing resources for non‐profit and public agency housing providers, housing developers, and individual homeowners and renters. Many of these programs are competitive, so it will be important for the Town to understand how a package of multiple sources can be combined to accomplish the desired project. In addition, the Town will likely partner with a non‐profit or other housing developer that will take the lead on the project. Resources for Non‐Profit and Organizations and Public Agencies Most capacity building resources are focused on nonprofit housing providers, although the NMMFA also works with public partners. In its Action Plan, the MFA commits to building capacity in the state to: provide decent housing; provide a suitable living environment; and expand economic opportunities for the state’s low‐ and moderate‐income residents. The MFA’s capacity building programs as well as other capacity building resources include the following. The CHDO Program builds the capacity of selected nonprofit Community Housing Development Organizations (CHDOs) to develop affordable housing with support from the U.S. Department of Housing and Urban Development. Participating CHDOs are provided technical assistance, training, and networking opportunities. CHDO’s are well suited to address affordable housing needs at the local level. At this time, there is no CHDO in Bernalillo or that serves Bernalillo, but this program is a way to empower community‐based non‐profit housing providers. Funding for certain CHDO activities is provided through the HOME program. There is no CHDO in Sandoval County at this time, although YESHousing, based in Albuquerque, serves communities throughout the state. Other capacity‐building resources for nonprofits that are eligible to receive assistance include: Local Initiatives Support Coalition (LISC) has helped nonprofit community development corporations acquire and preserve housing developments, build partnerships with housing authorities and other organizations, and advocate for government policies that can reduce the loss of affordable homes and apartments. LISC’s Housing Authority Resource Center brokers relationships between local housing authorities, LISC local offices and other community developers to provide access to best practices, information and training The Institute for Community Economics (ICE) provides technical assistance and training to community‐
based groups who seek to set up community land trusts. ICE’s principal lending goes to community land trusts, limited equity cooperatives, and community‐based nonprofit organizations creating housing that is permanently affordable to people with lower incomes. A community land trust has been mentioned as a possible model for permanently affordable housing on the NMDOT property near the downtown TOD. The Housing Counseling Assistance Program enables anyone who wants to (or already does) rent or own housing‐whether through a HUD program, a Veterans Affairs program, other Federal programs, a State or local program, or the regular private market‐to get the counseling they need to make their rent 91 | T o w n o f B e r n a l i l l o H o u s i n g P l a n or mortgage payments and to be a responsible tenant or owner in other ways. The counseling is provided by HUD‐approved housing counseling agencies. HUD provides support to a nationwide network of Housing Counseling Agencies (HCA) and counselors. HCA's are trained and approved to provide tools to current and prospective homeowners and renters so that they can make responsible choices to address their housing needs in light of their financial situations. Resources for Homeless and Special Needs HUD Emergency Solutions Grant (ESG) Program is a federal grant program designed to help improve the quality of existing emergency shelters for the homeless, to make available additional shelters, to meet the costs of operating shelters, to provide essential social services to homeless individuals, and to help prevent homelessness. The ESG program is designed to be the first step in a continuum of assistance to prevent homelessness and to enable homeless individuals and families to move toward independent living. The three programs are the Supportive Housing Program (SHP), Shelter Plus Care (SPC) program, and Section 8 Single Room Occupancy (SRO) program. These are all competitive grants that require the development of a Continuum of Care system in the community where assistance is being sought. HUD Supportive Housing Program (SHP) is designed to promote, as part of a local Continuum of Care strategy, the development of supportive housing and supportive services to assist homeless persons in the transition from homelessness and to enable them to live as independently as possible. The program is provided to help homeless persons meet three overall goals: to help homeless people achieve residential stability, increase their skills and/or incomes, and obtain greater self‐determination (i.e. more influence over decisions that affect their lives. The Sandoval County La Luz Program is funded through SHP. The HUD Shelter Plus Care Program is designed to provide housing and supportive services on a long‐
term basis for homeless persons with disabilities, (primarily those with serious mental illness, chronic problems with alcohol and/or drugs, and acquired immunodeficiency syndrome (AIDS) or related diseases) and their families who are living in places not intended for human habitation (e.g., streets) or in emergency shelters. The program allows for a variety of housing choices, and a range of supportive services funded by other sources, in response to the needs of the hard‐to‐reach homeless population with disabilities. Funds must be matched with in‐kind funding to be used for supportive services. Assistance is provided through four component programs: Tenant‐based, Sponsor‐based, Project‐based, and Single Room Occupancy Rental Assistance. HUD Section 8 Moderate Rehabilitation Single Room Occupancy (SRO) Program – Under the SRO program, HUD enters into Annual Contributions Contracts with public housing agencies (PHAs) in connection with the moderate rehabilitation of residential properties that, when rehabilitation is completed, will contain multiple single room dwelling units. These PHAs make Section 8 rental assistance payments to participating owners (i.e., landlords) on behalf of homeless individuals who rent the rehabilitated dwellings. Assistance provided under the SRO program is designed to bring more standard SRO units into the local housing supply and to use those units to assist homeless persons. The SRO units might be in a rundown hotel, a Y, an old school, or even in a large abandoned home. The MFA Emergency Homeless Assistance Program (EHA: ESG and State funding) provides assistance to units of local government or nonprofit organizations to improve the quality of existing emergency 92 | T o w n o f B e r n a l i l l o H o u s i n g P l a n shelters and to help meet the costs of operating emergency shelters. Organizations may apply for EHA: ESG & State funding through a competitive RFP process. Funding may be used for acquisition, renovation, repair, rehabilitation, conversion, essential or supportive services, operating expenses, prevention activities associated with providing shelter or services to homeless individuals. Intended to supplement the ESG Program; applicants are not eligible to apply for both. HUD Housing Opportunities for Persons with AIDS (HOPWA) provides housing assistance and related supportive services to low‐income people and their families living with HIV/AIDS. The objective of the funding is to maintain housing stability, avoid homelessness, and improve access to HIV/AIDS treatment and care. States, cities, and local governments and nonprofit organizations may apply for HOPWA Competitive funding. The subgrantee that currently serves Sandoval County is NM AIDS Services. HUD Section 811 provides funding to nonprofit organizations to develop rental housing with the availability of supportive services for very low‐income adults with disabilities. The newly reformed Section 811 program is authorized to operate in two ways: (1) the traditional way, by providing interest‐
free capital advances and operating subsidies to nonprofit developers of affordable housing for persons with disabilities; and (2) providing project rental assistance to state housing agencies. The assistance to the state housing agencies can be applied to new or existing multifamily housing complexes funded through different sources, such as Federal Low‐Income Housing Tax Credits, Federal HOME funds, and other state, Federal, and local programs. In FY 2012, no funding was appropriated for traditional 811 capital advances. HUD Section 202 provides capital advances to private nonprofit organizations (public entities are not eligible) to finance the development of supportive housing for the elderly. The capital advance does not have to be repaid as long as the project serves very low‐income elderly persons for 40 years. Project rental assistance funds are provided to cover the difference between the HUD‐approved operating cost for the project and the tenants' contribution towards rent. Project rental assistance contracts are approved initially for 3 years and are renewable based on the availability of funds. Applicants must submit a resolution that they will provide a minimum capital investment equal to 0.5 percent of the HUD‐approved capital advance, up to a maximum of $25,000 for national sponsors or $10,000 for other sponsors. HUD Section 231 insures mortgage loans to facilitate the construction and substantial rehabilitation of multifamily rental housing for elderly persons (62 or older) and/or persons with disabilities. Insured mortgages may be used to finance the construction and substantial rehabilitation of detached, semidetached, walk‐up, or elevator type rental housing designed specifically for elderly or handicapped individuals consisting of eight or more dwelling units. For nonprofit sponsors, the maximum loan amount is 100 percent of the estimated replacement cost of the building (or 100 percent of project value for rehabilitation projects). For all other sponsors, the maximum loan is 90 percent of the replacement cost (or 90 percent of project value for rehabilitation projects). Resources for Rental Housing HUD Section 8 Housing Choice Vouchers The housing choice voucher program is the federal government's major program for assisting very low‐income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on 93 | T o w n o f B e r n a l i l l o H o u s i n g P l a n behalf of the family or individual, participants are able to find their own housing, including single‐family homes, townhouses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. Housing choice vouchers are administered locally by public housing agencies (PHAs). Project‐Based Section 8 Vouchers – Project‐based vouchers are a component of a public housing agencies (PHAs) housing choice voucher program. A PHA can attach up to 20 percent of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set‐aside a portion of the units in an existing development. Mortgage Insurance for Single Room Occupancy Projects (SRO): Section 221(d)(3) and 221(d)(4) insures mortgage loans for multifamily properties consisting of single‐room occupancy (SRO) apartments. There are no Federal rental subsidies involved with this SRO program. It is aimed at those tenants who have a source of income but are priced out of the rental apartment market. SRO projects generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels. Although SRO housing is intended for very low‐income persons, the program does not impose income limits for admission. Local Initiatives Support Coalition (LISC) Affordable Housing Preservation Initiative preserves affordable rental apartments that are in jeopardy because of expiring federal subsidies, and promotes preservation‐oriented public policies. LISC helps nonprofit community development corporations acquire and preserve housing developments, build partnerships with housing authorities and other organizations, and advocate for government policies that can reduce the loss of affordable homes and apartments. Through its Housing Authority Resource Center, LISC assists local housing authorities identify financing structures that will leverage public resources with private investment as well as direct project financing such as predevelopment loans, bridge lending, lines of credit, working capital, and tax credit equity. Resources for Homebuyers Several programs are available through the New Mexico Mortgage Finance Authority (NMMFA) to help low to moderate income homebuyers. The following NMMFA programs could benefit Bernalillo families: Helping Hand – Up to $8,000 down payment and closing cost assistance to first‐time homebuyers with at least one family member that has a disability. This is a soft second loan that does need to be paid back until the property is sold, refinanced, or transferred, and it is assumable if the buyer meets program eligibility requirements. The loan may be forgiven after 10 years. This program is targeted toward households earning 80% or less than AMI, adjusted for family size. Mortgage Booster – A fixed‐rate second mortgage that is used in conjunction with either a Mortgage$aver or Mortgage$aver Zero first mortgage. Mortgage Booster features a 30‐year term and a maximum loan amount of $8,000. Mortgage Booster is priced .5 percent higher than MortgageSaver’s interest rate. Mortgage$aver – 30‐year fixed‐rate loans for low to moderate income buyers; available at below‐
market rates, with a one percent discount and one percent origination fee. 94 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Mortgage$aver Zero – Thirty‐year fixed‐rate mortgage loans priced with 0 percent discount and 0 percent origination fee for low‐ to moderate‐income first‐time homebuyers. Mortgage$aver Plus – 30‐year fixed rate mortgage that includes a 3.5% grant to offset downpayment and closing costs for low to moderate income first time buyers. The interest rate is slightly higher than Mortgage$aver or Mortgage$aver Zero, but there is no origination fee or discount fee. Mortgage$aver Xtra features a deeply discounted interest rate for very low‐income borrowers who are at or below 50 percent of the area median income. Payment$aver Program – A loan that provides the lesser of eight percent of the sale price of the home or $8,000 for a down payment, closing costs, principal reduction and/or interest rate buy‐down for lower income buyers who have not owned and occupied a primary residence for the past three years. This is a zero percent second mortgage loan due on sale, transfer or refinance, which may be forgiven after 10 years. Payment$aver SmartChoice Program – a soft second mortgage that borrower with a Section 8 Housing Boucher can use, with a loan amount of up to $15,000. This loan has a 0 percent interest rate, and is paid back when the property is sold, refinanced or transferred. Mortgage Booster Program – this program provides down payment and closing cost assistance, in the form of a second mortgage, to borrowers who qualify for the Mortgage$aver loan. The maximum loan amount is $8,000. These are repaid over 30 years. HERO program – a special MFA first mortgage loan that includes a 3.5 percent down payment assistance grant to low‐ to moderate‐income households in which at least one member is a teacher, police officer, healthcare worker, firefighter or an active member of the Armed Forces. Individual Development Account (IDA) is a program that partners local non‐profit organizations and financial institutions to encourage participants to save toward the purchase of a first home through a matching grant incentive. The local non‐profit, the IDA program sponsor, recruits participants for the IDA program, provides financial education classes, and may also provide one‐on‐one counseling and training to participants. After signing up for an IDA program, each participant opens up an account with the partnering bank or credit union. Each deposit made by the participant is matched from a source of grant funding. The participant is allowed to withdraw funds when they have achieved their savings goal. Prosperity Works partners with local organizations in New Mexico to teach them how to develop and offer effective IDA programs. Santa Fe Civic Housing Authority is a partner in the New Mexico Assets Consortium. HUD’s Federal Housing Administration (FHA) Section 203(b) mortgage insurance insures loans made to creditworthy borrowers who may not qualify for conventional mortgages on affordable terms. The downpayment requirements can be as little as 3.5% and some fees are limited. Mortgage insurance is available for one‐ to four‐unit residences where the property is the owner’s primary residence. The program has mortgage maximums, which vary depending on number of units. HUD’s Energy Efficient Mortgage (EEM) allows homeowners to finance energy efficiency features in new or existing housing as part of their FHA insured home purchase or refinancing mortgage. Home must be the owner’s principal residence. The borrower doesn’t have to qualify for the higher cost and 95 | T o w n o f B e r n a l i l l o H o u s i n g P l a n doesn’t make a downpayment on it. This can also be used with the FHA Section 203(k) rehabilitation program or HUD’s Title I Home Improvement Loan Program. HUD’s Graduated Payment Mortgage Insurance (Section 245(a)) enables a household with a limited income that is expected to increase to buy a home sooner by making mortgage payments that start small and increase gradually over time. All FHA‐approved lenders may make GPMs available to persons who intend to use the mortgage property as their primary residence and who expect to see their income rise appreciably in the future. The Federal Home Loan Bank Mortgage Partnership Finance®Program combines the retail expertise of community lenders with the wholesale funding advantages of the FHLBanks, resulting in an efficient method of financing mortgage loans. Mortgage lenders can continue to manage all aspects of their customer relationships and depending on the MPF product chosen, lenders may be paid credit enhancement fees for managing the credit risk of the loans they originate and sell. Resources for Housing Development HUD/FHA and the New Mexico Mortgage Finance Authority provide several types of financing and mortgage insurance programs for single family and multi‐family development. They include: The Low Income Housing Tax Credit Program (LIHTC) provides federal income tax credits to individuals or organizations that develop affordable housing through either new construction or acquisition and rehabilitation. The tax credits provide a dollar for dollar reduction in the developer's tax liability for a ten year period. Tax credits can also be used by nonprofit or public developers to attract investment to an affordable housing project by syndicating, or selling, the tax credit to investors. In order to receive tax credits a developer must set‐aside and rent restrict a number of units for occupancy by households below 60% of area median income. These units must remain affordable for a minimum of 30 years. This program is a resource provided by the Internal Revenue Service. In addition to tax credits, the financing "gap" for certain LIHTC projects may be filled with a below market rate HOME loan. Tax credits and rental HOME loans are awarded annually through a competitive application process according to the state's Qualified Allocation Plan. The New Mexico State Affordable Housing Tax Credit (Rental) provides charitable state tax credit for up to 50% of the value of donations (cash, land, buildings or services) for affordable housing projects approved by the MFA, or for donations made directly to the NM Affordable Housing Charitable Trust. FHA Mortgage Insurance for Rental Housing: Section 207. Section 207 mortgage insurance is however, the primary insurance vehicle for the Section 223(f) refinancing program described below. A project is eligible for mortgage insurance if the sponsor can demonstrate that there is a definite market demand, that the project is economically self‐sufficient, and that financing is secure. The program has statutory per unit mortgage limits, which vary according to the size of the unit, the type of structure, and the location of the project. There are also loan‐to‐value and debt service limitations. The mortgage is limited to 90 percent of HUD appraised value. Eligible mortgagors include investors, builders, developers, and others who meet HUD requirements for mortgagors. All families are eligible to occupy dwellings in a structure whose mortgage is insured under this program, subject to normal tenant selections. FHA Mortgage Insurance for Manufactured Home Parks: Section 207. The Section 207 Program insures mortgage loans to facilitate the construction or substantial rehabilitation of multifamily manufactured 96 | T o w n o f B e r n a l i l l o H o u s i n g P l a n home parks. Section 207 promotes the creation of manufactured home communities by increasing the availability of affordable financing and mortgages. The program insures HUD‐approved lenders against loss on mortgage defaults. Insured mortgages may be used to finance the construction or rehabilitation of manufactured home parks. Home parks must consist of 5 or more spaces. Contractors for new construction and substantial rehabilitation projects must comply with prevailing wage requirements under the Davis‐Bacon Act. Eligible mortgagors include investors, builders, developers and others who meet HUD requirements for mortgagors. Eligible Customers include families, individuals, or elderly persons owning manufactured homes or desiring to lease spaces in a manufactured park. FHA Section 207/223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with conventional or FHA insured mortgages. Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program. The program allows for long‐ term mortgages (up to 35 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage‐Backed Securities. This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates. The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years prior to the date of the application for mortgage insurance. The program allows for non‐critical repairs that must be completed within 12 months of loan closing. The remaining economic life of the project must be long enough to permit a ten‐year mortgage. The mortgage term cannot exceed 35 years or 75 percent of the estimated life of the physical improvements, whichever is less. Davis Bacon prevailing wage requirements do not apply to this program. The FHA Section 221(d)(3) and 221(d)(4) program insures mortgage loans for multifamily properties consisting of single‐room occupancy (SRO) apartments. There are no Federal rental subsidies involved with this SRO program. It is aimed at those tenants who have a source of income but are priced out of the rental apartment market. SRO projects generally require assistance from local governing bodies or charitable organizations in order to reduce the rents to affordable levels. Although SRO housing is intended for very low‐income persons, the program does not impose income limits for admission. The BUILD IT! Loan Guaranty Program was created to encourage other lenders to provide interim financing for “high risk” or unconventional projects when they might not otherwise do so – for “high risk” or unconventional projects, unfamiliar types of borrowers or unfamiliar markets. The program offers MFA guaranties of up to 50% of the risk of loss in the underlying loan. BUILD IT! Loan guaranties can be used for owner‐occupied or rental developments or special needs facilities. Sites must be responsive to demonstrated community needs, and zoning must be pending or completed. Commitments for matching contributions from other public sector entities, equal to 10% of the total development costs, must be in place. Finally, at least 40% of the units in the development must be affordable to households earning no more than eighty percent of adjusted area median income. The NM Housing Trust Fund provides flexible funding for housing initiatives that will provide affordable housing primarily for persons or households of low or moderate income. Non‐profit organizations, for‐
profit organizations, governmental housing agencies, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies and other entities as outlined in the Notice of Funding Availability (NOFA). Costs of infrastructure, construction, acquisition, and rehabilitation necessary to support affordable single family or rental housing as outlined 97 | T o w n o f B e r n a l i l l o H o u s i n g P l a n in the NOFA. MFA mortgage may be in first or junior lien position on the property. Rental projects must werve households earning 60% or less of AMI. The MFA Primero Loan Program is a flexible, low cost loan program created to finance the development of affordable rental or special needs residential facilities in New Mexico that would be considered "high risk" by traditional lenders. Its goal is to leverage other public and private funds, and to expand the housing development capacity of New Mexico's nonprofit, tribal and public agency housing providers. The program can be used to finance all types of projects that cannot be accommodated by existing sources. Funding may be approved for specific housing developments, or for programs to be operated by agencies to meet local housing needs. Rental, owner occupied and special needs projects of any size maybe financed under this program, during any stage of the development process. New construction, conversion, and acquisition/rehabilitation projects may be financed. The HOME/Single Family Development Program provides partial or “gap” financing to nonprofit and for‐profit developers, public and tribal entities, and CHDOs for the construction, acquisition and rehabilitation of single family homes throughout New Mexico. Units financed with HOME funds must be affordable to households earning no more than 80% of the area median income adjusted for family size. HOME/SFD provides junior mortgages with below‐market interest rates, and other advantageous loan terms tailored to the needs of the projects. HOME funds may be used in combination with other down payment and closing cost assistance programs. However, all HOME subsidies combined cannot exceed $30,000 per unit. Homes must meet the Model Energy code, accessibility requirements under the Fair Housing Act, and local building codes. The HOME/Rental Loan Program provides gap financing for a variety of affordable and special needs housing projects throughout the state of New Mexico. As gap financing, HOME funds are typically the last dollars committed to a project and are used in combination with other housing resources such as MFA's Tax Credit and 542(c) loan programs. MFA's HOME funds can be awarded as gap financing for projects that qualify for the Housing Tax Credit program. The maximum amount is $20,000 per unit with a maximum of $600,000 per project. 542(c) FHA‐Insured Multifamily Loan Program provides construction and permanent loans for affordable rental developments, including new construction, substantial rehabilitation, refinancing or acquisition of projects having no less than five units per site. Structures may be detached, semi‐
detached, row houses or multi‐family structures. Single asset mortgagors, including nonprofit organizations, for‐profit corporations, joint ventures, limited liability companies, and partnerships are eligible borrowers. Access Loans provide federally insured construction and permanent financing for small‐scale affordable housing projects throughout New Mexico. This program is designed to minimize transaction and due diligence costs and expedite processing for small projects. Eligible projects include new construction, substantial rehabilitation, refinancing or acquisition of projects having no less than five units per site. Detached, semi‐detached, row houses or multifamily structures are eligible. Eligible borrowers may be single asset mortgagors, including nonprofit organizations, for‐profit corporations, joint ventures, limited liability companies, and partnerships. MFA Tax Exempt Bond Financing for Affordable Rental Housing – MFA will provide bond financing for multifamily housing developments through the following mechanisms: 98 | T o w n o f B e r n a l i l l o H o u s i n g P l a n 
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Using Private Activity Bond Volume Cap (PABVC) multifamily project allocations from the State Board of Finance ("SBOF") for new tax exempt bond issues; Refunding outstanding bond issues; or Issuing new 501(c)(3) bonds. Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Section 108 provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and large‐scale physical development projects. This makes it one of the most potent and important public investment tools that HUD offers to local governments. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue larger renewal projects. Local governments borrowing funds guaranteed by Section 108 must pledge their current and future CDBG allocations to cover the loan amount as security for the loan. Loan commitments are often paired with Economic Development Initiative (EDI) or Brownfield Economic Development Initiative (BEDI) grants, which can be used to pay predevelopment costs of a Section 108‐funded project. They can also be used as a loan loss reserve (in lieu of CDBG funds), to write‐down interest rates, or to establish a debt service reserve. Eligible applicants include nonentitlement communities that are assisted in the submission of applications by the state. The Federal Home Loan Banks' Affordable Housing Program (AHP) is funded with 10% of the Federal Home Loan Banks' net income each year. The AHP allows for funds to be used in combination with other programs and funding sources, like the Low‐Income Housing Tax Credit. These projects serve a wide range of neighborhood needs: many are designed for seniors, the disabled, homeless families, first‐time homeowners and others with limited resources. More than 776,000 housing units have been built using AHP funds, including 475,000 units for very low‐income households. The Federal Home Loan Bank System is the largest single funding provider to Habitat for Humanity. The HUD Self‐Help Homeownership Program (SHOP) is a competitive grant program to national and regional nonprofit organizations and consortia that have experience in providing or facilitating self‐help housing opportunities. Grants are to be used by the grantee or its affiliates for eligible expenses in connection with developing non‐luxury housing for low‐income families and persons who otherwise would be unable to purchase a house. Eligible expenses are limited to land acquisition (including financing and closing costs), infrastructure improvements (installing, extending, constructing, rehabilitating, or otherwise improving utilities and other infrastructure), and administrative costs (up to 20 percent of the grant amount). Homebuyers must contribute a significant amount of sweat equity toward the construction of their homes. The Enterprise Community Loan Fund offers flexible, innovative loan products to help make it possible for developers and nonprofit organizations to create sustainable, affordable housing and community facilities. Loan products include predevelopment loans; building or land acquisition loans, predevelopment costs and critical repairs; mini‐permanent loans for the operating buildings, predevelopment costs and critical repairs; and construction and bridge loans. Other Enterprise Programs – Enterprise offers a variety of financing for housing project that meet specific objectives, including green development, transit oriented development, supportive housing, and others. Products include LIHTC and New Markets Tax Credit Equity, multifamily mortgage finance, predevelopment and acquisition loans and technical assistance. Enterprise often works through local partner organizations to accomplish their goals. Enterprise’s Santa Fe office is a resource in New Mexico. 99 | T o w n o f B e r n a l i l l o H o u s i n g P l a n Resources for Rehabilitation and Homeowner Support The New Mexico Energy$mart Weatherization Assistance program is administered through the New Mexico Mortgage Finance Authority. Federal, state and utility funds are used for the program. Weatherization services are performed by four non‐profit providers located throughout the state. Households with incomes at or below 150 percent of the national poverty level are eligible for the program. Central New Mexico Housing Corporation is the service provider for weatherization services in Bernalillo. MFA HOME Investment Partnership Program provides assistance to low‐income homeowners who lack the resources to make necessary repairs to their homes. Assistance can be used for reimbursement of costs for rehabilitation, which includes the following: applicable codes, standards or ordinances, rehabilitation standards, essential improvements, energy‐related improvements, lead‐based paint hazard reduction, accessibility for disabled persons, repair or replacement of major housing systems, incipient repairs and general property improvements of a non‐luxury nature, site improvements and utility connections. MFA relies on nonprofits, housing authorities, and local governments to administer the homeowner rehabilitation program. Funds are awarded through a competitive RFP process. The Bernalillo County Housing Authority currently administers owner‐occupied HOME Rehabilitation program for Sandoval County. HUD ‐ Rehabilitation Mortgage Insurance (Section 203(k)). Section 203(k) insurance enables homebuyers and homeowners to finance the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. The program insures a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. The home must be at least a year old, requiring rehabilitation of at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. Eligible repairs may range from relatively minor to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards. Other Programs HUD 255 Home Equity Conversion Mortgage Program (HECM) – Reverse mortgages are increasing in popularity with seniors (homeowners 62 or holder) who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender. The HECM enables seniors to withdraw some of the equity in their home as a fixed monthly amount or a line of credit or a combination of both. The HECM can be used to purchase a primary residence if the owner is able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property being purchased. The property owner must own the property outright or have paid down a considerable amount, occupy the property as a principal residence, not be delinquent on any federal debt and participate in a consumer information session given by a HUD‐approved 100 | T o w n o f B e r n a l i l l o H o u s i n g P l a n counselor. Single family homes, 2‐4 unit homes with one unit occupied by the borrower, and manufactured homes that meet FHA requirements are eligible property types. 101 | T o w n o f B e r n a l i l l o H o u s i n g P l a n