FY27 Affordable Housing Trust Fund (AHTF)

The purpose of this Request for Proposals (RFP) issued by the Central Purchasing Division (CPD) in coordination with the Office of Affordable Housing (OAH) is to solicit sealed proposals through a competitive process to establish contracts for projects that advance affordable housing in the City of Santa Fe. This RFP is focused on supporting eligible costs associated with both rental and ownership projects. Rental projects include new construction development acquisition, renovation/rehabilitation, preservation, supportive housing and mixed income housing developments. Ownership of affordable housing—or related supporting affordable housing infrastructure for rental or affordable housing homeownership are eligible for proposal submission.

All proposed projects must align with the community’s established affordable housing goals and priorities, as defined under the Affordable Housing Trust Fund (AHTF) and related City plans and policies. As codified in Santa Fe City Code (SFCC) 26-3, the primary purpose of the AHTF is to increase and preserve the supply of affordable housing for low- and moderate-income residents in the City of Santa Fe.

Housing Development and Preservation (Infrastructure-Focused)

The AHTF supports projects that involve the creation, rehabilitation, or preservation of affordable housing units, including associated infrastructure necessary to support housing development.

The City is seeking proposals that will advance the development of for-sale affordable housing to include but not limited to single-family homes, condominiums, townhomes, duplex, triplex or rental of developed Accessory Dwelling Units (ADU) that expands long-term affordability and supports neighborhood stability.

Priority consideration will be given to development teams that demonstrate the ability to:

• Deliver high-quality affordable to low- and moderate-income households
• Provide a mix of affordability levels that serve workforce and entry-level homebuyers
• Incorporate long-term affordability mechanisms such as:
  • Deed restrictions
  • Ground lease structures
  • Shared equity approaches

Resultant projects should include a combination of the above and below, based upon the development type:

• Include innovative resident engagement models that enhance onsite safety and community stability, including voluntary residency by qualified public safety personnel in exchange for defined community participation activities, consistent with all applicable fair housing and funding requirements
• Maximize the number of affordable units delivered per site
• Support pathways to homeownership for income-qualified households
• Utilize cost-effective design and construction methods to improve attainability
• Include infrastructure and site improvements within the development scope
• Align affordability periods with long-term community housing goals

Proposals shall incorporate innovative development solutions that increase health and safety, and approaches designed to minimize reliance on direct public subsidy, while ensuring long-term affordability.

The City is particularly interested in developments that create sustainable homeownership opportunities, promote neighborhood integration, and ensure the long-term availability of single-family housing and/or multi-family housing development for income-qualified residents.

This solicitation is also open to multi-family deep affordable housing developers for maximum unit count.

The New Mexico Affordable Housing Act (The “Act”) and its implementing regulations establish the framework for eligible uses of funds, applicant eligibility criteria, and proposal requirements to ensure compliance with the State of New Mexico’s Anti-Donation Clause. Oversight and enforcement of the Act are administered by the New Mexico Mortgage Finance Authority (MFA) through the Affordable Housing Act Rules.

Under the Act, the City is authorized to support the following costs related to affordable housing initiatives:

• Acquisition of land on which affordable housing will be constructed;
• An existing building that will be renovated, converted, or demolished and reconstructed as affordable housing;
• Costs related to the acquisition, development, construction, financing, operation, or ownership of affordable housing;
• Costs of financing or infrastructure necessary to support affordable housing.

All proposals must demonstrate consistency with the “Act” and the “Rules” and clearly identify how the requested funding supports the development, sustainability, or facilitation of affordable housing in accordance with applicable legal requirements.

Awards under this RFP are subject to the availability of funds in the AHTF. All allocations are contingent upon current and projected revenue into the Fund from designated sources, as well as annual budget appropriations approved by the City’s Governing Body. The Community Development Committee (CDC) will review and evaluate eligible proposals and make formal recommendations to the City’s Governing Body, which retains final authority on funding awards.