Las Cruces Awarded $11 Million for Housing Projects

Note: As a partner with the State of New Mexico, the City of Las Cruces is sharing this information with residents.

Funding part of statewide push to expand attainable housing, reduce homelessness

Las Cruces and Doña Ana County will receive $11 million for housing initiatives as part of a $120 million statewide investment announced by Governor Michelle Lujan Grisham.

The strategy aims to expand attainable housing, create pathways out of homelessness and improve public safety across New Mexico. The New Mexico Department of Workforce Solutions’ (NMDWS) Office of Housing will oversee distribution of the funds.

“A home offers security, hope and the chance to put dreams about the future into action,” said Lujan Grisham. “With these investments, we’re proving that New Mexico is serious about ending homelessness and giving families the stability of a permanent roof over their heads.”

“The projects we’re supporting in Las Cruces demonstrate the range of strategies needed to confront New Mexico’s housing crisis,” said Secretary Sarita Nair of the New Mexico Department of Workforce Solutions. “Under Governor Lujan Grisham’s leadership, we’re investing in proven solutions from expanding affordable and attainable housing to creating pathways out of homelessness, to supporting landlords who accept housing vouchers.”

The 2025 Housing New Mexico Housing Needs Analysis identified a demand for more housing options across the state, including for both low- and moderate-income families as well as homeowners and renters. The analysis says that to afford the median sale price of $345,000, a household must have an annual income of $108,935. Currently, only 13.5% of the state’s population can afford the median priced home, assuming an interest rate of 6.45%, and a 5% down payment. The situation is worse for renters, who are more likely to be “cost-burdened” than homeowners. “In New Mexico, 76.6% of renters who earn less than $50,000 annually are cost-burdened, which is consistent with the national rate of 81.4%,” the analysis states.

“This year we made historic, direct investments in expanding access to housing and reducing homelessness in our communities because we know nothing is more critical to the stability of our families than the roof over their heads,” said Representative Nathan Small (D-Las Cruces). “We also know that access to safe, stable housing is key to improving child well-being, addressing crime, and creating more economic opportunity in our communities. I am grateful to see us begin breaking ground on the first of many projects that will expand what’s possible for countless families in Southern New Mexico and strengthen our state as a whole.”

“With this $11 million investment in affordable housing, we are doubling down on strategies we know deliver results,” said Johana Bencomo, mayor pro tem and city councilor, District 4. “Together with our legislators, we are ensuring more people in Las Cruces can count on the security and stability of a home. I am deeply grateful to our housing staff, our community partners, legislators, Secretary Nair, and Governor Lujan Grisham for their leadership, trust, and support in making this vision a reality.”

Project Descriptions

Arcadia 4 Subdivision: $3,250,000 

Situated in the Metro Verde Planned Unit Development, Arcadia 4 will deliver 52 new single-family homes designed for attainable homeownership. Targeted to households earning up to 120% of the Area Median Income (AMI), the subdivision is permit-ready and supports the City’s efforts to expand housing opportunities in one of Las Cruces’ fastest-growing neighborhoods. The project will be constructed in collaboration with Mesilla Valley Habitat for Humanity and Tierra del Sol Housing Corporation, two nonprofit developers that specialize in affordable homeownership, leveraging sweat equity, technical assistance, and inclusive design to make homeownership achievable for working families.

Peachtree Canyon Apartments Phase I: $4,300,000 

Peachtree Canyon Apartments Phase I will bring 144 new multifamily rental housing to Las Cruces, with units targeted to low- and moderate-income households earning up to 60% AMI. The project is part of a larger planned community at Peachtree and Jornada, with Phase II already in the pipeline. The development is being advanced by Thomas Development Group and the New Mexico Housing & Community Development Corporation.

Pedrena Senior Apartments: $400,000 

Pedrena Senior Apartments is an 80-unit development designed for seniors aged 55 and older. The project will include affordable rental homes for households earning up to 60% AMI, with supportive community spaces and aging-in-place features to promote long-term stability and quality of life for seniors on fixed incomes. The project is in partnership with Thomas Development Co.

Skylark Subdivision: $1,400,000 

Located on the East Mesa near Central Road, Skylark Subdivision will provide 32 new single-family homes for affordable and attainable ownership. Targeted to households up to 120% AMI, the project will expand homeownership opportunities. The subdivision is being delivered in partnership with Tierra del Sol Housing Corporation, which has decades of experience creating single-family homeownership opportunities in southern New Mexico.

Amador Crossing: $1,725,000 

Located at 1101 W. Amador Avenue, Amador Crossing is a 50-unit housing complex under construction in partnership with Mesilla Valley Community of Hope (MVCH). The two-story building will provide efficiency and one-bedroom units, including ADA-accessible apartments, for individuals and families transitioning out of or at risk of homelessness. Residents will have access to on-site case management, mental health services, and other supportive programs.

Landlord Risk Mitigation Program- MVCH: $100,000

In partnership with Mesilla Valley Community of Hope (MVCH), the City of Las Cruces is expanding access to rental housing for vulnerable populations through the Landlord Risk Mitigation Program. Originally launched with funding from the American Rescue Plan Act, which expires in September, the program now continues with new support to grow its impact. It features a revolving fund to reimburse landlords for damages or lost rent, helping reduce financial risk and incentivize leasing to tenants who face barriers to housing stability. MVCH will oversee program administration and facilitate connections between landlords and tenants through its housing navigation services.