Like many states, New Mexico is seeing an increased demand for multi-family development. This is especially true for New Mexico’s largest cities such as Albuquerque and Santa Fe. Based on a recent report issued by the Associated General Contractors of America, these two cities have seen some of the largest year-to-year construction job growths in the country with Albuquerque totaling in at an 11% growth and Santa Fe at 10%. These numbers are a positive sign that there is an increase in development happening in these areas. However, with only 31% of New Mexico residents being able to afford the median home price, there is an increased demand for affordable housing. Does this increase in development align with the necessity for affordable housing? To understand this growing demand, let’s first understand why we are seeing this population growth.
The Increased Need for Affordable Housing
Recent developments in the tv and film industry have played a part in the population growth currently being seen. Coming in as the 3rd most popular place to film in the country, this has created more jobs in the area. Along with this, major companies such as Netflix, Facebook, and Amazon have started office developments in the state. Although these developments lead to an increase in jobs, cities such as Albuquerque and Santa Fe cannot keep up with the housing demand. One recent report reveals the market will need to develop over 14,000 multifamily units to keep up with the growing population. To help this, the state and federal governments are stepping in to help fund affordable housing developments through low-income housing tax credits (LIHTC). With an estimated $20-25 million to be allocated in 2022, the state is trying its best to keep up with demands. As more affordable housing developments begin construction, you must meet the requirements put together by the federal government to receive these credits. Although meeting these requirements may seem daunting, with an experienced construction consultant on your side, you can feel confident knowing that you have everything in place to obtain your low-income housing tax credits.
How Moran Construction Consultants Can Help Your Next Affordable Housing Project
Moran Construction Consultants has long-standing expertise in assisting lenders, syndicators, and investors in mitigating risks associated with affordable housing projects (both renovations and new construction) not only in New Mexico but across the country. We tailor our reporting to provide extra oversight regarding the LIHTC qualifying conditions and verify that the required features and amenities are included in the Contract Documents. Once construction commences, we will monitor those features and amenities to make sure they are completed to ensure the appropriate tax credits are gained.
Our existing relationships with multiple developers and contractors in the New Mexico market allow us to proactively address any LIHTC-related issues during due diligence as well as throughout construction. Call us at 225-351-2003 or contact us online to learn more about our construction loan monitoring services. Experience peace of mind knowing that your investment is protected.