A full rehab of one of Albuquerque's senior affordable housing complexes is done.
A nonprofit celebrated the renovation of Encino Gardens, 165 affordable apartments for people 62 and older and people with disabilities in southeast Albuquerque, KRQE reported. The project was backed by $24 million in Bernalillo County revenue bonds.
The building
Encino Gardens is a five-story senior complex at 412 Alvarado Drive SE, according to Bernalillo County. It sits on 2.6 acres, according to Housing New Mexico, the state's mortgage finance authority.
Housing New Mexico said in 2023 that the rebuilt complex would have 46 studios, 118 one-bedroom units and one manager's unit, along with office space, a kitchenette and dining areas, indoor and outdoor community areas, a fitness room, laundry facilities and two elevators.
The property also serves as a City of Albuquerque meal service site on weekdays, open to residents and the wider community, the county said.
What the rehab covered
According to Housing New Mexico's 2023 announcement, the planned rehabilitation covered all resident units, corridors, interior common areas, mechanical systems, lighting fixtures, plumbing fixtures and outdoor common areas. LED lighting, Energy Star appliances and low-flow faucets and shower heads were planned to cut energy and water use.
The plan also called for removing the swimming pool and adding other amenities to encourage outdoor activity, plus a full-time service coordinator for residents.
At the time, Housing New Mexico said work was expected to start in March 2024 and finish by March 2026.
How it was paid for
The financing shows how complicated it is to rehab affordable housing.
In December 2023, Bernalillo County commissioners approved project revenue bonds of up to $24 million for NCNO Limited Partnership, LLLP, to finance the renovation, the county said. The county exempts $68,494 in property taxes a year and collects a $24,100 annual issuer fee, over a 30-year term. The bonds aren't county debt. The owner pays bondholders directly.
The county estimated the construction would generate $39 million in economic output and support about 260 construction jobs.
Housing New Mexico's board approved $2.8 million more, including $2 million from the New Mexico Housing Trust Fund and $800,000 in federal HOME funds. It also allocated about $15 million in federal Low-Income Housing Tax Credits over 10 years, expected to generate $13.2 million in equity.
The buyer and developer was Encino Development & Management, Inc., a nonprofit that has provided senior affordable housing for about 50 years, according to Housing New Mexico. Monarch Properties, Inc. was named as manager.
More rehabs could follow
In 2023, Encino Development & Management Vice President Greg Leach said the nonprofit hoped to grow across New Mexico, "including the redevelopment of three affordable senior communities in the area."
Why it matters for contractors
Encino Gardens is a good example of a kind of work that doesn't get as much attention as new construction: the full rehab of an occupied or recently occupied affordable building. Bernalillo County estimated about 260 construction jobs on this project alone.
These jobs touch nearly every trade. Mechanical, plumbing and electrical upgrades, new fixtures and appliances, corridor and unit finishes, accessibility work, elevators, site work and amenity changes are all part of it. Energy and water efficiency requirements, like LED lighting and low-flow fixtures, are common because tax credit and state housing funds often call for them.
The financing stack, with county bonds, tax credits and state and federal loans, also brings requirements. Contractors bidding on this kind of work should be ready for detailed documentation, inspections and, often, wage rules.
With the developer talking about three more senior community redevelopments in the area, Albuquerque contractors who do multifamily rehab should keep this nonprofit on their radar.