NCRTD accepts State of New Mexico Funding Agreement for Espanola Workforce Housing Project

The North Central Regional Transit District Board Directors unanimously voted on Friday, Feb. 2 to enter into a $500,000 funding agreement with the New Mexico Department of Finance and Administration (DFA) to complete the design and engineering phase of the District’s proposed workforce housing development in Española. The DFA identified the funding as part of Governor Michelle Lujan Grisham’s Housing Initiative that was created to support innovative housing projects that are intended to relieve the affordable housing crisis taking place across New Mexico.

The development is planned on three vacant acres owned by the District behind its administration and maintenance facility on North Riverside Drive and Silkey Way Road. It is adjacent to a proposed seven-acre affordable housing development the city of Española is in the preliminary stages of planning. Both entities have come together to create a continuous workforce and affordable market rate housing developments on their respective sites.

“The lack of affordable housing in the area has created challenges for the District to hire drivers and other essential staff required to restore services on many routes that have been suspended due to driver shortages,” said NCRTD Board Chair and City of Española Councilor Dennis Tim Salazar. “This funding is a first step to develop preliminary design and engineering documents for the project and we are grateful for the State of New Mexico and Governor Lujan Grisham’s commitment to provide affordable housing options across the state.”

Project Background

In 2022, the District completed a study in partnership with the North Central New Mexico Economic Development District (NCNMEDD) to determine the need for workforce housing and identify housing priorities for current staff. In partnership with the NCNMEDD, a pro forma document was developed to determine potential costs, revenues, funding strategies, conceptual layouts, and unit mix for an estimated $4.5 million project. The District is seeking a Capital Outlay Grant from the New Mexico legislature to fully fund the project. The design and engineering funding awarded by the DFA requires no local match, so the full cost of design and engineering will be funded through the DFA Housing Initiatives program. All funding must be expended by June 30,2024, the end of the State of New Mexico’s fiscal year. Please see attached Capital Outlay Request for more information.