Established in 1609, Santa Fe, New Mexico, the oldest U.S. capital city, continues its traditional role as a regional center of commerce and government. Its rich multicultural heritage and historical tradition are characterized in its diverse lifestyles, architecture, art, cuisine, and celebrations. Santa Fe provides for many of northern New Mexico's needs, including employment opportunities, economic activities, and special services not available in rural localities.
For the first year of the Consolidated Plan, housing needs predominate in the planned use of $1.2 million in Community Development Block Grant (CDBG) funds, including CDBG program income, $610,000 in HOME Investment Partnership Program (HOME) affordable housing funds, and $140,000 in Emergency Shelter Grant (ESG) funds. Santa Fe expects to have an additional $4.2 million available from other U.S. Department of Housing and Urban Development (HUD) programs and $2.5 million in low-income housing tax credits.
Santa Fe's Community Services Department has been designated the lead agency for preparing this Consolidated Plan. In June 1994 the department teamed with the city's Planning and Land Use Department to solicit public input and comment for the city's General Plan update. Through a series of 20 public hearings, citizens and city and county government representatives discussed the Consolidated Plan. Notices of each meeting were broadcast in English and Spanish on television and radio, published in newspapers, and distributed on flyers posted throughout the city and county. Some meetings were broadcast on the local public access channel.
Citizen participation included consultations with the Community Development Board and the Affordable Housing Advisory Commission, as well as a coalition of assisted housing and service providers known as the Santa Fe Affordable Housing Roundtable, a consortium of those primarily concerned with the housing needs of children, the elderly, the disabled, and homeless persons.
Santa Fe published a summary of its proposed Consolidated Plan in the local newspapers and, as part of this summary, announced the availability of the draft plan at the public library for a 30-day public comment period. The plan was adopted after a final public hearing February 8, 1995.
Long-time Santa Fe residents are typically lower-income Hispanic families. Their city ties, some that go back more than 300 years, are related to family, church, and community.
However, an influx of newcomers, who are attracted by the small-town flavor, mild climate, and many recreational opportunities, has pushed Hispanics out of the city's majority for the first time in history.
During the past 10 years, gated residential communities built in the north and east sides have increased gentrification, which has sent housing prices out of Hispanics' reach. Under these circumstances, long-term residents are moving to the southern part of the city or to Santa Fe County.
The city of Santa Fe has nearly the highest cost of living and housing prices in New Mexico, and these costs are considerably higher than the national averages. In 1994 the median price of a house was $173,750.
In 1994 the median family income (MFI) for a family of four in Santa Fe was $46,000. Household income levels and their numbers are:
The low- or moderate-income family that wants to buy a house in the city often must settle for either a substandard house or a mobile home. They are more likely to rent or buy outside the city. Many new workers in Santa Fe commute from Albuquerque, Rio Rancho, Espanola, or rural areas.
Ethnic separation is occurring along socioeconomic lines. The greatest number of immigrants into Santa Fe are middle- and upper-income whites. These new immigrants, who want the Old World town ambience and proximity to a commercial center, are displacing low-income families. Pressures of these growing populations often are creating overcrowded conditions with children living in extended families or in mobile homes outside the city.
According to the 1990 census, Santa Fe's low-income families and minorities are concentrated primarily near downtown and within the southwestern part of town. Low- income Hispanic migrants and residents in outlying areas come to the city for employment and social services.
Housing opportunities for low- and moderate-income owners and renters are critically needed. Programs are being developed and implemented for downpayment assistance, mortgage pools, and other methods of assisting owners in obtaining mortgages.
The private sector is concentrating its efforts on the high-end market, paying little attention to building housing that is affordable to moderate-income households. The number of homes that even median-income families can afford, those in the $100,000 to $130,000 range, has declined over the past few years. Housing for less than $100,000 has all but disappeared from the market; less than 8 percent of the houses sold in 1994 cost under $100,000. Only 10 percent of Santa Fe's residents can afford the median- priced house, which costs more than $173,000. Low-income households are priced out of the homeownership market entirely.
A February 1995 study showed that the average cost of new construction for a 1,100- square-foot home in a 7-unit per acre subdivision is $106,200. Half of Santa Fe's households have income levels less than $32,000; these families cannot afford to buy a house costing more than $96,000. As speculators continue to tie up more of the land that is approved for building, land prices will continue to rise.
Approximately 63 percent of the estimated 29,000 housing units in the city are owner occupied. Ten percent of those units are substandard. More than half of the substandard units are occupied by renters. The vacancy rate for owner units is about 3 percent, excluding about 1,000 second or vacation homes. Owner-occupied units are predominantly single-family detached units, ranging from old houses in need of some rehabilitation to very large custom-built homes. Condominiums and townhouses are usually small but can be quite expensive, depending primarily on their proximity to the city center.
Rental costs are increasing at three times the rate of incomes, making it ever more difficult to afford available rental units. As of September 1994 the fair market value for a two- bedroom rental unit in Santa Fe was $690 per month.
A majority of the rental units are one- and two-bedroom units in multifamily developments. Large three- and four-bedroom units are rare and expensive. However, condominiums and townhouses of various grades are available for rent throughout the city, and semi-detached and single-family rentals are available at a premium. Conversion of existing housing to rental units is occurring, but the conversion is to tourist homes, not apartments.
The rental vacancy rate is less than 1 percent for units renting for less than $500 per month. The private rental building market is continuing to build multifamily rental units for the middle- to high-price market, with limited interest in building for low- and moderate- income households.
Extremely low-income households (those earning 0-30 percent of MFI) usually are renters, and many occupy substandard housing. About half of them are small families, and 20 percent are elderly. Many are immigrants and homeless persons who live with relatives or friends, in shelters, or in cars, or who camp as weather permits. In Santa Fe the Civic Housing Authority takes care of only extremely low-income housing needs. The few extremely low-income homeowners usually live in overcrowded conditions or have housing units that need to be repaired.
More than 75 percent of low-income households (those earning 31-50 percent of MFI) need some housing assistance, and many live in substandard housing. More than 61 percent are small families. Many owners in this category live in overcrowded housing that needs repair. Most renters spend more than 30 percent of their incomes for housing, meaning they are cost burdened, or even 50 percent, of their incomes for housing, meaning they are severely cost burdened.
Even among moderate-income households, about half need some housing assistance. Many are young persons who rent because they cannot afford to buy. Some could make the transition to homeownership with the help of downpayment or other financial assistance. Older moderate-income homeowners may need help with upkeep of their homes. Some in this category experience overcrowding when married children are forced to move in with their parents.
Middle-income households (those earning 81-120 percent of MFI) have many of the characteristics of moderate-income households. About 30 percent need some kind of housing assistance. Less than 10 percent of houses sold in Santa Fe last year would be affordable to middle-income households.
Extremely low- and low-income households need more emergency and transitional housing, rental assistance, and housing rehabilitation. Because the price of single-family units is out of reach for 55 percent of Santa Fe's residents, nearly all extremely low- and most low- income earners will not be able to afford a house in Santa Fe, even with a subsidy from the nonprofit housing agencies. Until this trend is altered, there will be a continued need for affordable rental units. Substantially more studios, and one- and two-bedroom units priced in the range of $362 to $449 per month, are needed for renters.
Homeless population data in Santa Fe are based on statistics collected by the local shelters, the 1990 census, and the New Mexico State Housing Division. On any given night in Santa Fe, approximately 600 people are homeless. Almost three out of four are unsheltered. Their greatest needs are for transitional and permanent housing. Some facilities that serve the homeless, such as group homes and some shelters, are located in principally residential areas.
An estimated 890 individuals were accommodated in 42 emergency shelter beds in 1994, and 400 families stayed in 94 emergency shelter beds. The 16 transitional housing beds available for families were used by 130 people, and the 17 transitional housing beds for individuals were used by 40 people.
There are no reliable statistics for unsheltered individuals, but a large and transient population of Mexican nationals and other U.S. citizens live part of the year in Santa Fe. People live in tents, shacks, and cars in a few out-of-the-way places in and around the city.
The following subpopulations of homeless were identified:
A large network of services for people with HIV/AIDS offers shelter for that population.
The city is developing an ordinance that would allow emergency and transitional facilities in some commercial and light industrial districts. Meanwhile, meeting the needs of homeless individuals and families has been hampered mostly by the lack of funds. Two Supportive Housing grants have been awarded in Santa Fe. One grant will be used for the construction of eight transitional units at a total cost of $1.8 million; AND the other grant of $540,000, will provide rental assistance for persons with HIV/AIDS. The present rental assistance program, funded entirely by the city, serves about 10 clients with terminal illnesses, including AIDS, annually.
The Santa Fe Civic Housing Authority operates 561 public housing units. Approximately 65 percent of them serve elderly households. More than 75 percent of the stock includes one- and two-bedroom units scattered throughout the city. Large-family units are in short supply. In accordance with Section 504 standards, about 5 percent of the units will be made accessible to persons with disabilities.
Most of the units are in good to excellent condition, and approximately 100 units will undergo minor rehabilitation this year. The vacancy rate is less than 2 percent. While no units are expected to be lost from the inventory in the near future, a Homeownership and Opportunities for People Everywhere (HOPE) grant will fund the evaluation of 25 units for possible conversion to ownership units.
Of the 473 Section 8 assisted units, 236 are certificates and the balance are vouchers. Twenty-five of the certificates are reserved for the housing agency's Family Self-Sufficiency Program. However, qualified applicants have difficulty finding affordable housing.
As the principal provider of low-rent housing in Santa Fe, the housing agency has developed a philosophy that affirms social values and addresses the physical and economic needs of those seeking housing assistance. It has nurtured partnerships with other nonprofit housing groups so needy individuals and families are directed to the best source. The housing agency recently has made administrative changes to expedite the application process and unit maintenance.
The high cost of housing is the primary obstacle to affordable housing development. Some factors, such as rugged mountain terrain, limit the amount of land suitable for affordable housing development. The cost of infrastructure in the mountains, along with strenuous escarpment building rules, make affordable housing development prohibitive on much of the east side of the city. Maintaining affordability also is a problem. State law prohibits rent control and makes deed restrictions for affordability purposes difficult. Each year the city promotes passage of enabling legislation for long-term affordability controls.
Local public policy, however, continues to favor affordable housing development. In the past year, several initiatives have enhanced the creation of new affordable housing units, such as providing building permit fee waivers and fast tracking through the permit process for developments containing at least 25 percent affordable housing. A proposed inclusionary zoning ordinance would mandate construction of affordable housing in exchange for more concessions from the city, including density bonuses.
The Community Services Department acts as an advocate for all of the organizations in Santa Fe that promote housing and community development for lower-income residents. Community Services strives to help these organizations enhance affordable housing and services.
More than two-thirds of Santa Fe's homes, or 17,689 houses, were built before lead-based paint was banned. With about 19 percent of the population living below the poverty level, the city estimates that 3,360 homes could have potential lead-based paint hazards. The typical adobe style used throughout the city, however, incorporated the use of wet plastering, thereby reducing the need for painting walls.
By the end of 1999, the city proposes to hire a consultant to test houses most likely to have lead-based paint and take action to rid the homes of any discovered lead hazards. Santa Fe's Community Services Department will work closely with the State of New Mexico Housing Division and the State Lead-Based Paint Task Force in adhering to the National Center for Lead-Safe Housing's recommendations as part of a 5-year strategy to reduce exposure to lead in housing.
A number of people with special needs are not homeless, but are living in substandard housing or require supportive housing. An estimated 200 persons who have mental, physical, or developmental disabilities may need housing assistance. Among the supportive services for the elderly are the Meals on Wheels program provided through the Santa Fe Seniors Services and the adult day-care services provided by Open Hands.
Victims of domestic violence, including physical and sexual abuse, also need special supportive housing. The majority of these individuals earn less than 50 percent of the median income and need assistance in finding and keeping housing. With more than 2,000 adults and children victimized each year, the potential need is great.
There is limited housing stock available to serve persons with disabilities and persons with HIV/AIDS: 4 group homes house 36 developmentally disabled persons; HOPE House has a group home for 6 persons with HIV/AIDS; and a publicly supported nursing home serves the incapacitated elderly. The city has implemented a rental assistance program that will serve 10 to 12 persons diagnosed with terminal illnesses who are waiting to participate in the Section 8 voucher program.
Although housing is a primary need, Santa Fe also needs economic development, as well as additional public facilities, infrastructure improvements, and more public services.
Lack of funds is the primary obstacle to meeting these community development needs. Other obstacles may come from the Santa Fe City Code, which delineates conditions that proposed developments must meet. The city's leadership is carefully considering the long- term effects of various proposed developments, with the aim to provide balance and reason to the city code.
Among the highest priorities are the following community development needs:
In addition, the highest priorities within the economic development needs are commercial- industrial infrastructure, microbusiness development, and business technical assistance.
Over the next 5 years, Santa Fe expects to enable new homeownership and continued homeownership with new and rehabilitated units for 460 moderate-income families, 400 low-income families, and 145 extremely low-income families. For renter households the city plans to help deliver rental housing for 50 moderate-income families, 150 low-income families, and 200 extremely low-income families.
The city also has placed a high priority on helping persons with special needs for outreach, emergency shelter, transitional shelter, permanent supportive housing, and permanent housing.
Preventing homelessness also is a priority. A number of families who come to Santa Fe are not necessarily homeless but need services that are not available elsewhere, such as medical services for the uninsured or for those fleeing domestic violence. With 1,500 families on a 2-year waiting list for rental assistance and public housing, some will become (or remain) homeless during the wait and may require many of the same case management and supportive services as those who are homeless.
High priority was given to housing for small and large renter households earning 50 percent or less of the median income, who must spend more than 30 percent of their incomes on housing. High priority also was assigned to moderate-income owner households with cost burdens greater than 30 percent of income, and both low- and moderate-income owner households with cost burdens greater than 50 percent of income.
Medium priority was given to elderly renter households earning 50 percent of the median income or less, with cost burdens greater than 30 percent of income. This priority also was placed on low- and moderate-income owner-occupied houses with physical defects.
Nonhousing community development priorities established in the planning process were:
Santa Fe will encourage and work in partnership with the local housing providers to reduce the number of households with incomes below the poverty line. The City Council is considering a request to create a Capital Fund for the Indigent, which would be used to construct facilities to serve the most needy. If approved the fund would offer primary or matching funds for various projects, such as transitional housing construction and emergency shelter expansion. City efforts to prevent homelessness include its rental assistance program for the terminally ill indigent and, through the nonprofit housing services, small grant and loan funds.
In addition to housing efforts, the city will continue to encourage small-business development and expansion of existing businesses to provide residents with decent jobs. Education also is a primary component of job preparedness. The city funds numerous programs with the public school system to help prepare youth for college or technical training beyond high school.
Santa Fe expects to use funds from CDBG, HOME, ESG, and a number of other HUD programs to carry out this strategic plan. It also will use New Mexico State Mortgage Finance Authority, city, nonprofit, and foundation funds. More than $21 million is expected to be used in the coming year.
The Santa Fe Community Services Department accomplishes all formal coordination efforts between public and private housing providers and service delivery agencies through the Affordable Housing Roundtable, an organization of local housing providers, including: Santa Fe Civic Housing Authority, Santa Fe Land Trust, Santa Fe Neighborhood Housing Services, Santa Fe Habitat for Humanity, Santa Fe County Housing Authority, the United Way of Santa Fe County, Santa Fe Community Housing Trust, Enterprise Foundation, and the Transitional Housing Coalition. The city has invested an enormous amount of time and resources into making the Roundtable a worthwhile organization for continual coordination on strategic planning.
The Community Services Department, through the Housing Section, has the role of advocate and coordinator and acts as a catalyst in support of housing efforts in the community, as outlined in this Consolidated Plan. To mandate adherence to specific programs and needs, Community Services requires quarterly reports from all of its subcontractors. In addition to these reports, programs are monitored through site visits, file audits, and periodic meetings.
For Fiscal Years 1995 and 1996, the main CDBG activities will consist of citywide direct homeownership assistance, rehabilitation activities, youth center renovation, and community and economic development activities. Key programs include:
MAP 2 depicts points of interest and low-moderate income areas.
MAP 3 depicts points of interest, low-moderate income areas, and minority concentration levels.
MAP 4 depicts points of interest, low-moderate income areas, and unemployment levels.
MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 6 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.
MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point; in addition, a table provides information about the project(s).
