Albuquerque, NM, September 25, 2024 – On September 25th, 2024, Sol Housing broke ground on Farolito Senior Community, an 82-unit mixed-income apartment community in the East Gateway neighborhood of Albuquerque. Located across from Sol Housing’s Luminaria Senior Community on state lands, Farolito will provide another much-needed affordable option for Albuquerque’s seniors. The City of Albuquerque has designated the elderly as a priority for affordable housing development. Felipe Rael, executive director of Sol Housing explains, “It is an established fact that a significant number of our elderly are housing cost burdened and losing housing stability.” According to 2020 Census data, New Mexico is ranked 13th among all 50 states for percentage of population who are 65 and older, up from 24th in 2010 and we are on track for being 4th in the nation by 2030. This aging population, lower household incomes, high occupancy rates, and dramatic increase in rents have contributed to the need to provide more affordable housing options for Albuquerque’s seniors.
Sol Housing has established an unprecedented partnership with the New Mexico Commissioner of Public Lands Stephanie Garcia Richard and the State Land Office, first with Luminaria and now with Farolito, to utilize State Land for housing development while contributing to the economic development of the East Gateway neighborhood. Land managed by the State Land Office is held in a trust with 94% of earnings from lease payments going to support the New Mexico public education system, public universities, and hospitals. Thus, an affordable housing development on State Land creates a beneficial cycle of investment for our public institutions while also helping the City of Albuquerque’s housing needs and goals. The Farolito lease in particular will generate $1.9 million for New Mexico’s public schools.
“The cost of living is becoming a bigger problem every year, especially for seniors on a fixed income. I’m committed to addressing this growing problem and am pleased this project will continue to revitalize the East Central corridor. State lands can be utilized to help communities meet the very real needs they face, including a lack of quality, affordable housing,” Commissioner Garcia Richard said.
“Farolito will fill a critical need for senior housing at a time when the cost of living is on the rise,” said Mayor Tim Keller. “We will continue to work together to combat the housing crisis and build more affordable housing options in Albuquerque.”
"The Farolito development will build on the success of the Luminaria Senior Apartments to provide needed affordable housing for our senior citizens," said Albuquerque City Councilor Renée Grout. "This partnership with Sol Housing and the State Land Office will also redevelop a blighted part of Central Avenue - it's a win-win-win for Albuquerque!"
“There is an urgent need for more affordable housing in our city, which is vital for creating pathways out of homelessness. This need is especially critical for our senior citizens, many of whom are on a fixed income,” said Health, Housing, and Homelessness Director Gilbert Ramirez. “The Farolito Senior Community represents a positive step forward, and we are actively exploring innovative solutions to expand the number of affordable housing units across our city.”
Farolito will be a work site for the YouthBuild Program, a national pre-apprenticeship program funded by the U.S. Department of Labor that provides educational, occupational certification, and leadership development services for youth ages 16-24 who face barriers to employment. Youth Development Inc. was awarded $1.5 million to administer the program over the next 40 months. Sol Housing and Jaynes Corporation, the general contractor, have partnered with YDI and Associated Builders and Contractors of New Mexico to provide the work site and job training.
“Sol Housing is leading New Mexico in their approach to tackling our state’s housing shortage — creating jobs and providing the next generation with tools to build careers in their home communities, while ensuring more New Mexicans have a roof over their heads,” said Senator Heinrich. “Every person deserves a quality, affordable place to call home, and I’m committed to doing the work necessary to make that a reality for all.”
Funding for the $27.3 million development includes $16.2 million in federal Low-Income Housing Tax Credits awarded through Housing New Mexico, which over a 10-year period, are expected to produce approximately $14.2 million in cash equity; $4.6 million from the City of Albuquerque HOME and CDBG funds; $3 million in ARPA funds; $13.6 million in construction loan funds from the Bank of Albuquerque; and $4.5 million permanent loan from Rocky Mountain CRC. The project architect is Dekker and the general contractor is Jaynes Corporation.
“This community will provide affordable housing for many Albuquerque residents, and we are happy to partner with Sol Housing on this development,” said Isidoro Hernandez, Housing New Mexico Executive Director/CEO. “We all know that affordable housing is needed across the state, and this new community will provide an opportunity for seniors in the area to call Farolito home.”
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