Not every housing story is about new construction. Sometimes the job is keeping the homes a city already has from falling apart.
The Albuquerque Housing Authority and Housing New Mexico celebrated the grand reopening of two renovated public housing communities on Wednesday, Oct. 14. According to Housing New Mexico, the day included a grand opening at Veranda Housing Community and tours and an afternoon open house at La Plata Housing Community.
"We're excited to see these properties updated for the first time in decades, providing better options for low-income families," said Linda Bridge, executive director of the Albuquerque Housing Authority, which manages and developed both properties.
Veranda: 35 family-sized homes
Veranda, at 9000 Veranda Road NE, is a 35-unit public housing complex with a total development cost of about $15.3 million.
These aren't small apartments. Veranda has 12 two-bedroom units averaging 786 square feet, 16 three-bedroom units averaging 934 square feet, five four-bedroom units averaging 1,117 square feet and two five-bedroom units averaging 1,280 square feet.
The Housing New Mexico board approved about $766,000 a year in 9% Low-Income Housing Tax Credits, which are expected to produce about $7.1 million in cash equity over 10 years, plus a $400,000 National Housing Trust Fund loan.
Upgrades include children's playgrounds, an upgraded community building, community gardens and drought-tolerant landscaping.
La Plata: 32 homes for families
La Plata, at 120 La Plata Road NW, has 32 units for low-income families and a total development cost of about $12.6 million. It has eight two-bedroom units averaging 783 square feet, 22 three-bedroom units averaging 936 square feet, one four-bedroom unit averaging 1,091 square feet and one five-bedroom unit averaging 1,268 square feet.
Housing New Mexico approved about $750,000 a year in 9% tax credits, expected to produce about $6.7 million in equity over 10 years, and another $400,000 National Housing Trust Fund loan.
Improvements at La Plata include hard-surface flooring, washer and dryer hookups, patio space, attached storage units, playgrounds, an upgraded community building, community gardens and drought-tolerant landscaping.
Both communities will be income-restricted to households earning up to 30%, 50% or 60% of area median income. For a family of three in Albuquerque, that means $27,120, $45,200 or $54,240 a year. For a family of four, it's $30,120, $50,200 or $60,240.
"We know that, as families across the state tighten their belts in the face of today's economy, the need for housing solutions is growing," Bridge said.
Isidoro Hernandez, Housing New Mexico's executive director and CEO, said the work will help local families "alleviate the stress of finding safe housing on a limited budget."
Why it matters for Contractors
Rehab work like this is a big and often overlooked part of the housing business. Together, these two projects cost nearly $28 million for 67 homes. That works out to more than $400,000 per home in total development cost, which is real money flowing to contractors who know how to work inside existing buildings. The large share of three-, four- and five-bedroom units also means more bedrooms and more square footage per home than a typical apartment rehab, which adds up on flooring, paint, doors and trim.
Public housing rehabs usually mean a little of everything: demolition, new flooring, kitchens and baths, plumbing, electrical and HVAC upgrades, windows, roofing, landscaping and site work. The list of improvements at La Plata, from hard-surface floors to washer and dryer hookups and attached storage, shows the kind of work involved. Drought-tolerant landscaping and community gardens add work for landscape crews.
Housing New Mexico's release doesn't name a general contractor for either project, and we aren't naming one here.
The 9% tax credits behind these projects are the same kind that pay for a lot of new affordable construction, so rehab and new building draw on the same well. Housing New Mexico says it has 62 active multifamily developments in various stages of construction statewide, covering 5,522 apartments and more than $463 million in funding.
For contractors who specialize in renovation, that's a reminder that a lot of affordable housing work isn't new buildings at all. Older public housing across the state will need updates sooner or later, and the crews who can do rehab work well, on budget and around the needs of the families who live there, will have steady work.