2017 Affordable Housing Plan Final

103 Pages·2016·2.62 MB·English

P.O.Box140387,Edgewater,CO 80214
www.csicolorado.org
303-902-9028
City of Las Cruces
Affordable Housing Plan
Preparedby:
CommunityStrategiesInstitute
P.O.Box140387
Edgewater,CO80214
PreparedFor:
CityofLasCruces,NewMexico
October2016
LasCruces,NewMexico
AffordableHousingPlan
TheCommunityStrategiesInstitutewasformedin2003toprovidefiscalandeconomicanalysis,education
andtrainingtoindividualsandgroupswishingtobetterunderstandandimprovetheeconomicandsocial
factorsinfluencingaffordablehousingdevelopment,housingconditionsandcommunityinfrastructureas
thoseelementsinfluencetheeconomicmobilityoflow-incomepopulations. TheInstituteDirectorsand
Membershavediversebackgroundsinhousingdevelopment,finance,management,policyandresearch.
The Institute can be your partner in designing research, programs, and investments for expanding
opportunitiesforindividualstobecomeeconomicallystablemembersofcaringcommunities.
Formoreinformationcontact:
TomHart
303.902.9028
[email protected]
JennieRodgers
303.668.2534
[email protected]
Visitourwebsite:
www.csicolorado.org
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I. EXECUTIVESUMMARY.........................................................................................................................................5
II. COMMUNITYANDHOUSINGPROFILE.................................................................................................................8
DEMOGRAPHICCHARACTERISTICS...........................................................................................................................8
POPULATION........................................................................................................................................................8
POPULATIONBYAGE............................................................................................................................................9
POPULATIONBYRACEANDETHNICITY..............................................................................................................11
HOUSEHOLDINCOMES.......................................................................................................................................12
POVERTY.............................................................................................................................................................13
ECONOMYANDLOCALEMPLOYMENT...............................................................................................................14
SPECIALNEEDSPOPULATIONS...........................................................................................................................17
HOUSEHOLDCHARACTERISTICS..............................................................................................................................22
EXISTINGHOUSING............................................................................................................................................22
HOUSEHOLDS,HOUSINGSIZE............................................................................................................................26
HOUSINGMARKETANALYSIS..................................................................................................................................28
HOUSINGCOSTS.................................................................................................................................................28
AFFORDABILITY..................................................................................................................................................31
HOUSINGCOSTANDINCOME............................................................................................................................36
DEVELOPMENTMARKET....................................................................................................................................38
III. HOUSINGNEEDSASSESSMENT...................................................................................................................41
EXISTINGNEEDS......................................................................................................................................................41
POVERTY/COSTBURDENEDHOUSEHOLDS........................................................................................................41
EXISTINGMARKETNEEDS..................................................................................................................................42
CONDITIONOFHOUSING........................................................................................................................................44
SPECIALNEEDS...................................................................................................................................................46
EXISTINGHOUSINGNEEDCONCLUSIONS..........................................................................................................49
PROJECTEDNEEDS..................................................................................................................................................54
IV. LANDUSEPOLICYREVIEW..........................................................................................................................56
GENERALPLAN............................................................................................................................................................56
THEGENERALPLANANDITSAPPLICABILITYTOCOUNTYPLANS.......................................................................56
GENERAL ANALYSIS OF LAND USE PARCELS INCLUDING ZONING, SIZE AND EXISTING USE, ENVIRONMENTAL
CONSTRAINTS,AVAILABILITYOFINFRASTRUCTURE...............................................................................................59
DevelopmentAreaDesignationandDesiredHousingDensities........................................................................59
DEVELOPMENTSTANDARDSANDFEESFORRESIDENTIALZONEDISTRICTS...............................................................................62
DevelopmentandImpactFeesforResidentialDevelopment............................................................................64
SUBDIVISIONREGULATIONSFORTHECITYOFLASCRUCES...................................................................................................65
RECOMMENDATIONSFORLANDUSEREGULATIONSANDOTHERDEVELOPMENTREQUIREMENTS................................................68
EVALUATIONOFSUITABILITY,AVAILABILITY,ANDREALISTICDEVELOPMENTCAPACITYOFDEVELOPMENTSITES,INCLUDINGAPPROPRIATE
ZONINGFORSPECIALNEEDSHOUSING..............................................................................................................................69
LandAvailabilityandOpportunitiesforDevelopmenttoIncreaseSupply.........................................................69
Downtown,CentralBusinessDistrictOpportunityArea....................................................................................78
FinancialConstraints..........................................................................................................................................78
HousingSustainability........................................................................................................................................79
IDENTIFICATIONOFCONSTRAINTS: GOVERNMENTALANDNONGOVERNMENTAL.......................................................................82
SummaryofLandUse,DevelopmentandZoningRegulationsthatPoseConstraintstoAffordableHousing...82
Non-GovernmentalConstraintstoAffordableHousingDevelopment...............................................................82
DevelopmentCapacity.......................................................................................................................................83
MINIMUMDENSITYCALCULATIONSTARGETEDTOAFFORDABLEHOUSINGPOPULATIONS.............................................................84
SingleFamilyOwnership....................................................................................................................................84
V. FIVEYEARAFFORDABLEHOUSINGGOALS,POLICIES,ANDQUANTIFIABLEOBJECTIVES..............................87
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COSTESTIMATESFORACTIONSTEPS...............................................................................................................................87
Goal1: PreservationofExistingAffordableHousingStock...............................................................................87
GOAL2: IncreaseAffordabilityofRentalHousingforLowIncomeHouseholdsandSpecialNeedsPopulations
thatHaveDifficultyCompetingintheHousingMarket.....................................................................................89
GOAL3. ExpandHomeownershipOptions........................................................................................................91
GOAL4: ReduceHomelessness..........................................................................................................................93
Goal5: CreateInnovativePartnershipsBetweenGovernmentandthePrivateSectorbyCreatingOrdinances,
PlansandPoliciesthatExpandHousingOpportunitiesandSupportEconomicDiversity..................................94
FUNDINGSOURCESFORAFFORDABLEHOUSING.................................................................................................................96
Planning.............................................................................................................................................................96
HomeownershipPrograms.................................................................................................................................96
HousingDevelopment........................................................................................................................................98
Homeless&RentalAssistancePrograms.........................................................................................................102
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I. EXECUTIVE SUMMARY
The City of Las Cruces has commissioned this affordable housing plan as a first step to facilitate the
expansion of affordable housing options for the low and moderate income residents in the City of Las
Cruces. This plan will provide a framework for the City to identify priority needs, possible actions,
potential implementers and resources which could be utilized in affordable housing projects and
programs. TheCityrecognizesthatduetosomestatutorylimitationscontainedintheAnti-DonationAct,
localgovernmentshavebeenconstrainedintheirabilitytosupportaffordablehousingactivitieswithCity
resources.
TheStateofNewMexicoenactedamendmentstotheNewMexicoAffordableHousingActin2007.These
changes in the Affordable Housing Act provide more flexibility to local governments wishing to provide
public resources to support affordable housing. The Affordable Housing Act permits State and local
governments to provideorpay the cost ofland, buildings ornecessary financingforaffordable housing
projects.Affordable housingprojects areresidential housingprimarily forpersons orhouseholds oflow
ormoderateincome. UndertheprovisionsoftheAmendedAct,agovernmentalentitymay:
• “A.donate,provideorpayall,oraportion,ofthecostsoflandfortheconstructionontheland
ofaffordablehousing;
• B. donate, provide or pay all or a portion of the costs of conversion or renovation of existing
buildingsintoaffordablehousing;
• C.provideorpaythecostsoffinancingorinfrastructurenecessarytosupportaffordablehousing
projects;or
• D.provideorpayalloraportionofthecostsofacquisition,development,construction,financing,
operatingorowningaffordablehousing."
TheActrequiresthelocalgoverningbodytoenactalocalaffordablehousingordinanceandaresolution
authorizing housing assistance. The New Mexico Mortgage Finance Authority is a quasi-public entity
charged with overseeing the Affordable Housing Act Rules to provide further guidance to local
governmentsoncomplyingwiththeAffordableHousingAct. Localgovernmentswhowishtodonatelocal
resources towards affordable housing must comply with the Affordable Housing Act and Rules. The
AffordableHousingActrequiresagovernmententitytohaveanaffordablehousingplanandordinance,
approvedbyMFA,priortoanylegaldonationstowardsaffordablehousing.
Summaryofcitizenparticipationprocessandconsultationprocess
TheLasCrucesCommunityDevelopmentDepartmentfunctionsastheleadagencyinthepreparationof
theplan. TheCityofLasCrucessoughtinputfromlocalcitizens,housingdevelopers,Realtors®,impacted
populations, service providers, local government officials and staff, and nonprofit and for-profit
organizations involved in housing and community development activities. Key informant Interviews,
publichearingsandfocusgroupswereheldtogatherinput.Aresidentsurveywasdistributedthroughout
the City. TheCommunityDevelopmentDepartmenthas formedareviewteam,theAffordableHousing
LandBankandTrustFundAdvisorycommittee,toreviewandcommentonthevarioussectionsanddrafts
oftheplan. ThefinaldraftofthePlanhasbeenmadeavailableforpublicreview.
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Methodology
TheCommunityStrategiesInstitute(CSI)wasengagedbytheCitytomanagetheresearchandwritingfor
thePlan. Fourmaintypesofinformationwereusedincompilingthisdocument:
• demographic,economic,andhousingdata
• localhousingandrelatedinformationfromstakeholderinterviewsandpublicmeetings,
• existingdocuments,plansandpolicies,regulations
• informationfromwebsites,articlesandotherpublishedsources
PlanOutcomes
Based on the qualitative and quantitative research processes described above, the following objectives
andoutcomeshavebeenestablishedfortheCityofLasCrucesAffordableHousingPlan:
• PreservationofExistingHousingStock,throughhomeownerhousingrehabilitation,preservation
ofpublicandaffordablehousingunits,andweatherizationofexistinghomes.
• ExpandAffordableRentalHousingforLowIncomeHouseholdsandSpecialNeedsPopulations,
bybuildingnewrentalhousingforhouseholdswhichtheprivatemarketdoesnotserve.
• Expanding and Preserving Homeownership, by providing for single family development, down
paymentandclosingcostassistanceandhousingcounselingservices.
• Create Innovative Partnerships between government and the private sector by creating
ordinances,plansandpoliciesthatexpandhousingopportunitiesandsupporteconomicdiversity.
• ReduceHomelessnessinLas Cruces by supportingbothservice agencies andhousingproviders
whoprovideessentialresourcestothoseexperiencinghomelessness.
OrganizationofthePlan
TheaffordablehousingplanisorganizedaccordingtotheMFArequirementsforsuchplans,includingthe
followingsections:
CommunityProfile
• Demographics,includingthecharacteristicsofthelocalpopulationandeconomicconditions
• Housing,includinggeneralcharacteristicsoftheLasCruceshousingstock
HousingMarketAnalysis
• Discussionoftherecentdevelopmenttrendsandthemarketforhomesforsaleanddemandfor
affordablerentals
HousingNeedsAssessment,
• Identifyingexistingandprojectedneedsforrentalandownerhousing
Goals,PoliciesandQuantifiableObjectives
• Suggestedtargetnumberofnewandrehabilitatedunitsperyearbytype
• Outcomeindicatorsforhousingassistanceandsupportivehousingprograms
LandUseandPolicyReview
• Regulatoryandmonetaryconstraintstodevelopingnewhousing
• Examinationofpotentialaffordablehousingsites
GoalsandRecommendations
• Quantifiedgoalsandproductiontargetstomeetidentifiedneeds
• Regulatory and policy recommendations to reduce market constraints and facilitate the
implementationoftheplan
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II. COMMUNITY AND HOUSING PROFILE
DEMOGRAPHICCHARACTERISTICS
LasCrucesisthecenterofanagriculturalregionirrigatedbytheRioGrande. Thisoncesmallcommunity
wasknownforitsrichfarmlandandNewMexicoStateUniversity(theonlylandbasedgrantuniversity).
ThesettlementofLasCruceswascreatedasanoverflowareafromthecolonyofDoñaAna.Thecityhas
grownrapidly,especiallysince1960.The1910federalcensusrecordedtheLasCrucespopulationat3,386.
In1960,thecityoccupied10.79squaremileswithapopulationof29,367.Today,thecityisprojectedto
encompass76.99squaremiles,withapopulationof101,218.
Figure1: CityofLasCrucesBoundary
Information in this Housing Plan will be presented for the City of Las Cruces, and will sometimes be
comparedtoallofDonaAnaCountyandtheStateofNewMexico.
POPULATION
Asof2015,101,218peopleresideinLasCruces,upfrom97,618in2010and74,267in2000.Duringthe
past five years, Las Cruces has averaged growthof .7% per year. The annual average growth rate was
higher between 2000 and 2010. Population growth is expected at the rate of .6% between 2015 and
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2020, a lower rate than throughout the county or state. Population growth in Las Cruces, Dona Ana
CountyandNewMexicoisdisplayedinthetablebelow.
Table1: LasCrucesTotalPopulation,2000-2020
Dona Ana
Measure LasCruces County NewMexico
2000 74,267 174,682 1,819,046
2010 97,618 209,233 2,059,179
TotalChange 31.4% 19.8% 13.2%
AverageAnnualChange 3.1% 2.0% 1.3%
2015 101,218 226,855 2,208,450
TotalChange 3.7% 8.4% 7.2%
AverageAnnualChange 0.7% 1.7% 1.4%
2020 104,044 243,164 2,351,724
TotalChange 2.8% 7.2% 6.5%
AverageAnnualChange 0.6% 1.4% 1.3%
Source: USCensus Bureau(2000and2010), UNMBureauof BusinessandEconomicResearch(Stateand County
projections2015and2020)andClaritasData(LasCruces2015and2020)
In Dona Ana County, population growth is a result of both births by current residents, and both
international and domestic migration. The American Community Survey for 2014 shows that 72% of
migrantscomefromMexico,whileotherscomefromotherscomefromotherLatinAmericanCountries,
Asia and Europe. By far the largest component of population change is births and natural population
growth. TheStateofNewMexicodoesnotprovidetheseestimatesattheCitylevel,thoughLasCrucesis
thelargestjurisdictioninDonaAnaCounty.
Table2: ComponentsofPopulationChangeinDonaAnaCounty,April2010–July2012
VitalEvents NetMigration
Total Population Natural
Change Increase Births Deaths Total International Domestic
NewMexico 26,358 27,475 63,673 36,198 -1,069 4,229 -5298
DonaAnaCounty 5,211 4,174 7,408 3,234 1,084 130 954
Source: NewMexicoBureauofBusinessandEconomicResearch(BBER)
POPULATIONBYAGE
ThefollowingtableshowsthenumberofresidentsinLasCrucesbyagerange. NielsonClaritasestimates
that in2015,themedianage was34inLasCruces,and37throughoutNewMexico. Whilesomeofthe
decline in college aged residents age 18 -24 could be from declining enrollment at New Mexico State
University,existingdatacannotconfirmthis. Since2009,54%oftheresidentsinthisagegrouphavebeen
enrolledincollege,thoughtheymayattendoutofstateandstillbeclaimedontheirparent’scensusform.
The census missed most college students in their count, as students are most often counted in their
parent’shousehold.
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Table3: PopulationbyAge,2000-2020
Change Percent
2015 - Change '15 -
Age 2000 2010 2015 2020 2020 '20
0-17 18,649 23,757 25,194 26,156 962 3.8%
18-24 11,866 13,372 11,316 10,293 -1,023 -9.0%
25-44 19,957 25,468 28,007 29,926 1,919 6.9%
45-64 14,074 21,704 21,786 21,406 -380 -1.7%
65-84 8,586 11,624 12,981 14,179 1,198 9.2%
85andover 1,135 1,693 1,934 2,084 150 7.8%
Source:UniversityofNewMexicoBBER,ClaritasDemographics,AmericanCommunitySurvey,CSI
Thenumberofseniorsislowcomparedtothenumberofchildren,youngeradultsandthoseapproaching
retirement. Thepercentageofresidentsineachrangeisverysimilartotheagedistributionofresidents
throughoutthestate.
Figure2: PopulationbyAge,2015,LasCruces
4,804 1,934 7,333
Under5years
8,177 7,044
5to9years
6,631 10to14years
10,624 15to17
4,186
18to20
21to24
4,290
25to34
11,162
7,026 35to44
45to54
11,785 55to64
16,222
Source: Source: New Mexico Bureau of Business and Economic Research (BBER), 2010 ACS, Claritas Data, and
CSI
Thelargestshiftsinpopulationbetween2015and2020willbeinthe18-24agerange,whichwilldecline
by over 1,000 persons, the rise in the 25 – 44 population by over 1,900 persons, and the shift of baby
boomersintothe65–84agerange. Thiscouldleadtoaneedformoreseniortargetedhousingsolutions.
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