The Bernalillo County Board of Commissioners voted Tuesday night to grant extensions for two major affordable housing redevelopment projects, allowing developers more time to secure crucial financing.
The projects—Villa Hermosa and Desert Willow Apartments—will receive an additional 180 days to obtain tax credit letters from the New Mexico Mortgage Finance Authority (MFA), a necessary step to access nearly $66 million in project revenue bonds. The vote amends previous administrative resolutions that were set to expire in mid-July.
Together, the redevelopments represent over $25 million in planned improvements to more than 500 affordable housing units in the Albuquerque area.
Both complexes are owned by subsidiaries of Dominium Development and Acquisition, LLC, a national affordable housing developer. Once completed, the Villa Hermosa project (2600 Americare Court NW) will renovate 288 units, while Desert Willow, located at 8901 Jefferson St NE, will update 224 units. The projects will remain 100% affordable, with rents restricted to tenants earning 60% or less of the Area Median Income (AMI). A portion of the units are also reserved for residents using Housing Choice Vouchers.
Renovations include energy-efficient upgrades like modern LED lighting, improved HVAC systems, and water-saving plumbing fixtures. The improvements are expected to significantly reduce utility costs for both the properties and residents—potentially cutting water consumption by up to 40%.
To finance the renovations, Dominium is applying for 4% Low-Income Housing Tax Credits, which require an inducement of private activity bonds from the county and a volume cap allocation from the state. Without the tax credit support, officials say the projects will not proceed.
“This is not only an investment in our housing stock, but in the quality of life for hundreds of low-income families,” said Marcos Gonzales, the county’s Economic Development director, whose department sponsored the resolution.
Once finalized, Dominium has committed to operating both properties through the compliance period under a 30-year agreement to maintain affordability.
The extension vote passed 5-0. The updated timeline gives both projects until January 2026 to complete their financing and move forward with rehabilitation.