City of Belen

Prepared for the City of Belen

Mayor Rudy Jaramillo

Councilor David Carter

Councilor Mary T. Aragon

Councilor Jerah R. Cordova

Councilor Wayne Gallegos

City of Belen Affordable Housing Plan

February 2013

Prepared by:

Housing Strategy Partners

Alexandra Ladd, AICP, Principal Lisa G. Roach

Daniel Werwath

City of Belen Affordable Housing Plan

Submitted to:

New Mexico Mortgage Finance Authority 344 4th St SW

Albuquerque, NM 87102 505.843.6880

www.nmhousing.org

227 E. Palace Ave, Suite M Santa Fe, NM 87501 505.795.4010 [email protected]

ACKNOWLEDGMENTS

City of Belen Staff Mary Lucy Baca, Acting City Manager Leona Vigil, Deputy City Clerk Steven Tomita, Planning Director

Affordable Housing Advisory Committee Roy Archuleta, My Bank Bob Garcia, Southwest Neighborhood Housing Services Lisa R Miller, City of Belen Planning Department Dennis Salas, New Mexico Department of Human Services Martin Sisneros, Sisneros Bros. Manufacturing Rod Storey, City of Belen Planning and Zoning Board

The following organizations provided information that was used to prepare this plan: Central New Mexico Housing Corporation Valencia Counseling Services My Bank Belen Chamber of Commerce El Camino Rael Housing Authority USDA Los Lunas Service Center Valencia Shelter Services New Mexico Habitat for Humanity Mid-Region Council of Governments New Mexico Mortgage Finance Authority UNM Bureau of Business and Economic Research Valencia County Counseling Services

TABLE OF CONTENTS

EXECUTIVE SUMMARY INTRODUCTION 1 Section I: Community Profile 6

Demographic Profile Economic Profile Housing Profile Section II: Affordable Housing Inventory 30

Inventory Summary Special Needs/Shelter Beds Public Housing Subsidized Rental Private Market Rental Subsidized Owner-Occupied Regional Housing Services Section III: Land Use and Development 35

Regulatory Analysis Non-Governmental Constraints Development Feasibility Analysis

Sites Inventory Section IV: Housing Market Analysis 62

Housing Markets and Affordability Homeownership Market Analysis Rental Market Analysis

Section V: Housing Needs Assessment 78 “Catch Up” Demand “Keep Up” Demand

Section VI: Implementation Plan 87 Summary of Projected Needs

Implementation Plan Matrix Funding Capacity Programming Real Estate Development Regulatory APPENDICES

Appendix A: Public Outreach Materials Appendix B: Affordable Housing Ordinance Recommendations Appendix C: Income and Affordability for Valencia County Appendix D: Development Funding List and Process Flow Chart

Appendix E: Constraints Analysis

LIST OF TABLES AND FIGURES

List of Tables Table 1.1: Natural Increase Table 1.2: 2035 Population Projections, MRCOG Region Table 1.3: Population Projections for the Belen Area, 2008-2035. Table 1.4: Household Characteristics. Table 1.5: Demographic Characteristics. Table 1.6: Economic Characteristics. Table 1.7: Source of Household Income. Table 1.8: Change in Number of Jobs, by Industry. Table 1.9: Housing Units. Table 1.10: Housing Vacancies. Table 1.11: Housing Characteristics. Table 2.1: Belen Housing Inventory by Type Table 3.1: Summary of Regulatory Constraints Table 3.2: Belen Zoning Categories Table 3.3: Belen Percentage Land Area by Zoning 2003 Table 3.4: Subdivision Street and Design Standards Table 3.5: Income Limits for Valencia County Table 3.6: Single Family Development Feasibility Analysis Table 3.7: Multifamily Development Feasibility Analysis Table 3.8: Summary of Development Potential Table 3.9: City-owned Property Table 4.1: Income Measures Table 4.2: Housing Affordability Indicators. Table 4.3: Cost Burden Distribution by Census Tract (within Belen City limits) Table 4.4: HUD 2012 Income Guidelines for Valencia County Area Median Income Table 4.5: Affordability Matrix for Valencia County - 2012 Table 4.6: All Belen Households by Percent of 2012 AMI Table 4.7: Belen’s Homeowner Households by AMI Table 4.8: Survey of Homes for Sale Table 4.9: For Sale Market Survey by Affordability, City of Belen

Table 4.10: Renter Households by Percent of 2012 AMI, City of Belen Table 4.11: Private Market Rental Survey Table 4.12: Private Market Rentals by AMI Table 5.1: Projected Housing Needs to Meet Catch Up Demand Table 5.2: Projected Housing Needs by Unit Size Table 5.3: Employment Change in Valencia County, 2001 to 2010 Table 5.4: Projected Employment Growth, 2008 to 2025 Table 5.5: Projected Household Growth Rates, 2008 to 2035 Table 5.5: Projected Housing Unit Increases, 2008 to 2035 Table 6.1: Housing Production Plan – Five-Year Goal Table 6.2: Housing Production Plan by Unit Size – Five-Year Goal Table 6.3: Implementation Plan Matrix Table 6.4: Funding - Opportunities/Constraints Table 6.5: Capacity Building - Opportunities/Constraints Table 6.6: Program Development - Opportunities/Constraints Table 6.7: Real Estate Development - Opportunities/Constraints Table 6.8: Regulatory Environment – Opportunities/Constraints List of Figures Figure 1.1. Change in Population and Households by Census Tract 2000 - 2010 Figure 1.2. Historical Population Growth Figure 1.3. Belen Area Sub-Regions, based on MRCOG’s Data Analysis Sub-Zones Figure 1.4. Annual Unemployment Rate, 2008-2012 Figure 1.5. Job Growth Figure 1.6. Year Housing Built Figure 1.7. Selected Housing Characteristics by Census Tract (within Belen city limits) Figure 3.1: Belen 2003 Zoning Map Figure 3.2: Station Area Plan Land Use Figure 3.3: Belen Flood Plan Map Figure 3.4: Rehabilitation Priority Area Figure 4.1. Income Distribution by Percent of 2012 AMI, City of Belen

Belen Affordable Housing Plan – EXECUTIVE SUMMARY i

EXECUTIVE SUMMARY

What is clear from Belen’s unique demographic and housing needs is that improving housing opportunities in Belen will require a multi-pronged approach. Mainstream strategies such as creating income-restricted rental units, providing homebuyer subsidies, and rehabilitating the homes of low-income renters and owners will address some of the gap between incomes and housing costs. However, the needs of those with disabilities, market pressures on local rental stock and rehabilitation opportunities for Belen’s historic buildings mean that there is no “one size fits all” approach to providing affordable housing in Belen. Rather, as the following analysis and the recommendations in this plan illustrate, real estate development will only happen as part of a “ripple effect” of improving the city’s local development capacity, increasing the financial options for people seeking housing, creating a “mortgage ready” pool of potential homebuyers, improving the collaboration and effectiveness of the service delivery network for emergency and supported housing, and rehabilitating older and deteriorating homes. Incomes and Affordability Almost two-thirds of Belen’s households (1,849) can be classified as low-income, with an additional 16% of households (449) classified as moderate income. According to the U.S. Department of Housing and Urban Development (HUD), housing is considered “affordable” if a household pays no more than 30% of its annual household income on housing costs. A household is considered “cost-burdened” if its housing costs exceed this threshold. Cost burden for homeowners in Belen is relatively high (34%) compared with Valencia County (29.2%), New Mexico (25.5%), or the nation (30.4%); however, cost burden for renters in Belen (50.3%) is lower than Valencia County (55.9%), higher than New Mexico (47.9%), and on par with national figures (50.8%).

• An unusually high percentage of households (26%) can be categorized as extremely low income, earning $16,700 or less per year.

• An unusually small percentage of households (16%) earns between 80% and 120% of AMI, a prime category for entry-level and/or workforce homeownership.

• An unusually high percentage (82%) of households can be classified as low to moderate income.

Renter Households. In Belen, approximately 84% or 957 renter households are estimated to be low-income, earning less than 80% of AMI. An additional 3%, or 37 households, earn less than 120% AMI, and are considered moderate income. In total, 87% of Belen’s renter-occupied households earn either low or moderate income. A very high percentage of renter households are Extremely Low Income (36%), earning less than 30% AMI, and Very Low Income (31%),

Belen Affordable Housing Plan – EXECUTIVE SUMMARY ii

earning between 30% and 50% of AMI. These households are the most likely to experience housing cost burden and are the largest target market for affordable rentals in Belen. Homeowner Households. Several important observations may be made from looking at the income distribution of Belen’s homeowner households. There are two clusters of Belen’s homeowners by income – 19% earn 30% AMI or below, and 24% earn 120% AMI or above. The top and bottom of the income spectrums represent a combined total of 43% of all homeowner households. An estimated 60% of Belen’s homeowner households earn 80% AMI or below and are classified as low-income. More than three quarters of Belen’s homeowner households earn 120% AMI or below and are classified as low-to-moderate income. The following table represents the major federal categories for affordable housing, their corresponding level of area median income, their affordable rent levels and their mortgage capacity. Generally, most HUD programs focus on families below 80% of area median income (AMI), with some programs and high cost markets offering assistance for moderate-income families. The income levels depicted are for a family of three people and are based on the 2012 HUD published median income numbers.

Summary of Land Use and Development In recent years, not much new development has occurred in Belen due to a variety of factors. The biggest constraints are related to lack of development capacity of local builders and service providers, issues related to the flood plain and the general difficulty in obtaining construction financing. While subdivision design requirements are not burdensome, the three-stage review process may involve higher up front costs before final approvals are made. Belen’s zoning map indicates high enough densities to achieve affordability in a variety of residential zones;

HUD Income Category Income Range Rent Mortgage No. of Households*

% of Total Households

Extremely Low Income (30% AMI or below) $16,700 or below $390 $72,600 718 26%

Very Low Income (30 to 50% AMI) $16,701 to $27,900 $650 $121,700 470 17%

Low Income (50 to 80% AMI) $27,901 to $44,500 $1,040 $193,640 661 24%

Total Low Income 1,849 67%

Moderate Income (80 to 120% AMI) $44,501 to $66,850 $1,560 $290,560 399 14%

* Number of households in each income category is approximate, as income categories used in the 2006 to 2010 American Community Survey differ from those used by HUD.

Belen Affordable Housing Plan – EXECUTIVE SUMMARY iii

however, only 3% of the area is zoned for multi-family residential. On the positive side, there is momentum for redevelopment and transit-oriented development as articulated in the Belen Station Area Plan and according to Belen staff. Likewise, land costs, infrastructure costs and construction costs are not significantly higher in Belen than the Albuquerque region. Furthermore, the City of Belen owns several land parcels that may be appropriate for development or redevelopment. The feasibility analysis in this plan looks at how the City might incentivize and provide support for future development. Single Family Development. An analysis of single-family development illustrates the relative affordability of this type of development as a function of area median income. In fact, the only income level that can’t afford the market rate home are those homebuyers earning less than 50% of the area median income. The City would not need to donate land or resources to make this type of development financially feasible. However, as all demographic and market factors indicate, this is not the market segment that needs priority in Belen. Furthermore, resources may be better used toward redevelopment and rehabilitation of the City’s historic center where donation of land parcels would make a significant difference in a development budget. Multifamily Development. Given that half of Belen’s population earns less than 60% of the area median income, there is likely to be a much greater market for multi-family rental units. Also, the city’s aging population and growing number of renters indicate a need for smaller rental units. The development scenario indicates a subsidy gap for all renters earning less than 60% of area median income. In fact, even if the City were to donate land to support a multi-family development, the subsidy gap at 30% of area median income is $325 per unit per month. Furthermore, it is clear that additional external subsidy sources such as the LIHTC, HOME Rental Development, or other sources would need to be co-mingled in the project budget. Housing Market Analysis The purpose of the Housing Market Analysis is to describe the state of Belen’s homeownership and rental markets, including the economic and demographic drivers of these markets, the challenges they face, and the outlook for the future. The Market Analysis determines the extent to which households at various income levels can afford housing in Belen. The gap between household incomes and housing prices is indicative of Belen’s housing affordability. The decade between 2000 and 2010 was marked by decline in Belen’s rate of homeownership, particularly among households whose heads were under age 45. Between 2000 and 2010, renter-occupied housing rose from 30.1% to 34.8%, for a 28.7% growth in Belen’s renter households. Nearly all of the rental growth during this period was among households whose heads were over age 45. Growth in Belen’s renter households outpaced that of owner households by 25% and Valencia County’s rental vacancy rates fell from 7.2% in 2009 to 5.6% in 2012.

Belen Affordable Housing Plan – EXECUTIVE SUMMARY iv

• As the renter population increases, rents slowly rise, and renter household income declines,

there is a growing supply gap of affordable rentals in Belen, particularly for extremely low-income households. Fewer of Belen’s young people are becoming homeowners, while more and more of Belen’s baby-boomers are becoming renters.

• A large inventory of off-market housing vacancies puts Belen’s neighborhoods at risk of deterioration and threatens surrounding home values.

• Belen’s existing foreclosures will have to be absorbed by the market before a demand for new single-family housing development can arise.

• Continued improvement in job growth will be key to the rebound of the homeownership market in Valencia County.

• Although Valencia County’s median sales price fell almost 12% from 2010 to 2012, home sales rose over 35% during this period.

Summary of Projected Needs In order to identify projected housing needs, several supply/demand factors are taken into consideration. This plan identifies two types of need: “Catch Up” which considers the current unmet needs and supply deficiencies in the community; and “Keep Up” need which considers job/population growth and projects future demand.

Implementation Plan The implementation section of this plan presents the recommendations based on the immediate, mid-term and long-term capacity of the City of Belen to implement them; lead

Housing Production Plan – Five-Year Goal

Housing Type Five Year

Production Goal (units)

Affordable Housing

Cost Emergency/Transitional Units* 3 - 4 < $303/mo Disabled/Senior/Frail Elderly Rental* 31 - 41 < $579/mo Rental Units for Renters with < 40% AMI* 83 - 110 < $579/mo Rental Units for Renters with 40 - 60% AMI** 25 – 33 < $809/mo Homeownership for Renters 40–60% AMI 0 n/a Rental Units for Renters at 60-80% AMI** 13 - 18 < $1,040/mo Homeownership for Renters at 60-80% AMI 5 - 6 < $217,981 Rental Units for Renters with 80-120% AMI 5 - 6 < $1,560/mo Homeownership for Renters at 80-120% AMI 5 - 6 < $290,568

Totals New Construction 208 - 276 Rehabilitation/Weatherization 131 - 174

Total Rehabilitation 131 - 174 NOTE: All affordability levels are calculated for a 3-person family unless otherwise noted. * 1-person family ** 2-person family

Belen Affordable Housing Plan – EXECUTIVE SUMMARY v

roles; and likely funding possibilities. For the City of Belen Housing Plan, five organizing principles were considered: Funding Recommendations. There are several sources of funding that may not be currently accessible in Belen or at least not used to their maximum benefit. Some funding opportunities, such as MFA-sponsored lending products and construction funding may not be currently maximized or used at all. This plan proposes which sources are most likely to be viable to fund the City’s proposed affordable housing activities, to be passed through to nonprofit partners, or to be applied for directly by the nonprofit community.

1.1 Create the City of Belen Affordable Housing Trust Fund 1.2 Apply for third party funding currently not used in Belen 1.3 Invest local/public resources to expand affordable housing services in Belen 1.4 Motivate local lenders to provide MFA, FHA, USDA mortgage products

Capacity Building Recommendations. This plan calls for strategically organizing housing services and future housing development based on the highest need and greatest potential return. For instance, the City may consider several service models that also build the capacity of non-governmental entities to provide services. One option is to build the capacity of an existing nonprofit partner through a contractual relationship with the City in which the nonprofit provides services in return for an annual grant. Or the City may consider a professional services contract with a regional nonprofit to meet affordable housing needs in the immediate term, such as homebuyer training services and/or affordable housing project development. Another opportunity for Belen is to take advantage of different sources of technical assistance funding that specialize in serving rural areas and building the capacity of the governmental, nonprofit and private sectors.

2.1 Establish affordable housing expertise on the municipal level 2.2 Access technical assistance to identify gaps and improve service models 2.3 Establish partnerships between private/public/nonprofit sectors

Program Development Recommendations. There are several programmatic needs not being met in Belen identified in previous sections of this plan. Emergency shelter services are limited to those fleeing situations of domestic violence. Renters in subsidized or income-restricted rental units do not have access to any financial fitness services to help them become homeowners, and they find themselves without savings, poor credit ratings and general unawareness of their potential to become homebuyers. Existing homeowners are likely to live in mobile homes if their home is less than thirty years old and in possibly substandard housing if they live in an older home. In either case, they may have need for energy-efficiency retrofits and rehabilitation. Finally, there are several conditions unique to Belen – a higher percentage of the population has disabilities, low participation rates in labor force, 27% of the population

Belen Affordable Housing Plan – EXECUTIVE SUMMARY vi

living under the poverty line, older housing stock – that are not being addressed through current program delivery systems.

3.1 Prioritize the needs of Belen’s very low-income residents 3.2 Create a citywide homeownership education and counseling program 3.3 Develop a home rehabilitation/energy efficiency improvement program, including retrofits to improve accessibility

Real Estate Development Recommendations. Affordable housing development and rehabilitation offers the opportunity to create high quality, energy efficient housing that is often better suited for low and moderate-income households because it implies lower long-term housing costs. Housing development and rehabilitation also presents the opportunity to both create and leverage subsidy from third party sources. Another positive ripple effect is the overall neighborhood benefit of crime reduction and improved streetscapes in areas where properties are newly built or rehabilitated. Also, construction activity has the potential to provide much needed economic growth in Belen’s real estate and construction sectors.

4.1 Support multi-family development 4.2 Initiate a housing development program that ties affordable housing provision to economic redevelopment efforts 4.3 Prioritize rehabilitation of existing units

Regulatory Environment Recommendations. In general, Belen’s zoning regulations do not appear to place a significant barrier or financial burden on the development of affordable housing. While Belen’s development-related administrative fees are on par with other communities, there are aspects of the subdivision process and design standards that could be more efficient and less costly for developers. The City also lacks any regulatory framework to guide the proper administration and design of affordable housing programs. The proposed regulation should specify the qualifications and requirements of grantees, long-term affordability requirements, application procedures, and general monitoring and compliance provisions. Success of this ordinance as a regulatory mechanism will rely on the proper design and implementation of administrative procedures.

5.1 Create a regulatory framework/ordinance that complies with all the rules and regulations of the NM Affordable Housing Act 5.2 Develop policies and procedures for administering the Belen Affordable Housing Trust Fund, including a competitive process for accessing funds 5.3 Consider an overlay zoning district for Belen’s downtown 5.4 Create incentives for private sector builders to produce affordably priced homes

Belen Affordable Housing Plan – INTRODUCTION 1

INTRODUCTION

Having a roof over one’s head is one of our essential needs as human beings, as important as eating, sleeping, and receiving medical care. Yet, too often, the poor, the disabled, the elderly and even many in the workforce are not able to afford a house that meets their needs. A lack of high quality housing directly affects one’s ability to build wealth, participate in civic activities, enjoy leisure time, and most of all, to have a decent and safe place to live. The overall health and vitality of a community suffers directly when its residents aren’t housed adequately. In Belen and all communities, choices become most limited when the housing market does not offer a full spectrum of housing choices, from emergency shelter to rental to homeownership, as illustrated in Figure 1.

If options are limited in any of the categories of housing, then some residents may get “stuck” and are unable to move into a different housing situation as their needs or financial resources change. In turn, once they are unable to move, the next person needing the type of housing currently occupied is not able to move. It is important to note that not only are opportunities for moving up the spectrum important, but that some people, such as seniors or people with special needs, will choose to move “down” into smaller homes or rental homes with associated

Homeless

Transitional Special Needs

Subs. Renter

Subs. Homebuyer

Homeowner

Figure 1: Belen Spectrum of Housing Need

30 - 80% AMI

50 - 120% AMI

30 - 60% AMI

Under 50% AMI

Under 30% AMI


amenities. Other residents will lose their current housing, (as represented by the counterclockwise arrows), particularly if they don’t have necessary support services, which is another indication that the spectrum is not solely “one-way.” Definition of Affordable Housing For purposes of this document, affordable housing is defined as a dwelling unit whose monthly cost does not exceed 30% of a family’s gross monthly income. This applies to all households earning up to 120% of the Area Median Income (AMI). Definition of Service Area While this Plan is focused on recommendations for the City of Belen, it takes into account households in the unincorporated areas adjacent to the City that may wish to move into the City limits, or whose social service needs are met within the City. For this reason, Housing Strategy Partners has identified a “service area” based on Census Tracts 9405.01, 9707, 9709.01 and 9708. These Census Tracts include the incorporated City of Belen, portions of adjacent communities, and some additional unincorporated households. Some of the data collected for this Plan is formatted according to these four census tracts, which, once totaled, are referred to as the “Belen Service Area.” Purpose of Plan The purpose of the City of Belen Affordable Housing Plan is to assess housing need in Belen and to provide recommendations for addressing the needs. As approved by the New Mexico Mortgage Finance Authority, this plan is in full compliance with the New Mexico Affordable Housing Act. This enables the City of Belen to adopt an ordinance and mobilize public resources to support the provision of affordable housing and related services, new construction and the rehabilitation of existing homes. This plan is organized to identify needs based on the entire housing spectrum. It evaluates existing housing gaps for the current population and projects needs for the future. Most importantly, it proposes strategies and recommendations for meeting housing needs and identifies opportunities for increasing and improving the City’s housing stock to serve a variety of housing situations. The information in this plan will help the City of Belen to:

• Establish baseline information for current and future housing needs and evaluate progress in meeting goals.

• Develop and implement strategies to ensure that Belen offers its residents a full range of housing choices and opportunities.

• Implement specific affordable housing projects and obtain financing from federal, state, and private lending institutions.

• Recommend roles and responsibilities for implementation.


Methodology and Data Sources The planning team approached the planning process in iterative phases, each of which informed the next, as well as providing feedback for the former phase. The first was data gathering from statistical data sources, planning documents, rental and sales information, and regional studies. Qualitative data was compiled through interviews with stakeholder organizations, elected officials, industry representatives and other community members, as well as through the wide distribution of a community survey. Next, the team compared the existing housing inventory and available housing services with qualitative needs and quantifiable data. This was used to project the number of housing units required over a five-year planning window, thus establishing a “Five Year Production Goal.” From this analysis and determination of need, the team formulated recommendations and detailed implementation steps. Data Sources. Several sources were analyzed to determine demographic characteristics and housing affordability:

• 2000 and 2010 U.S. Census • 2006-2010 American Community Survey 5-Year Estimates • New Mexico Selected Health Statistics Annual Report 2010, The State Center for Health

Statistics, Bureau of Vital Records and Health Statistics, New Mexico Department of Health

• Datasets: 2035 Regional Forecast, Mid-Region Council of Governments (2010) • NM Department of Workforce Solutions, Economic Research and Analysis, Tables A and D • Foreclosure Data: www.realtytrac.com

Planning Documents and Other Relevant Analyses. This Plan also draws upon several planning documents related to the City of Belen, as well as analyses of the greater New Mexico and national housing markets. It should be noted, however, that 2010 US Census data was substituted for any outdated demographic, economic and social statistical data contained in these planning documents.

• Mid-Region Council of Governments, Valencia County Mobility Plan, updated 2008 • Mid-Region Council of Governments, Belen Station Area Planning Study, 2009 • City of Belen, Comprehensive Land Use Plan, 2003 • City of Belen Zoning and Subdivision Regulations • Mid-Region Council of Governments, Socioeconomic Projections • Mid-Region Council of Governments, Existing and Projected Land Use • Vogt Williams Bowen Research, Market Feasibility Analysis of the Proposed

Redevelopment of the Belen Apartments, 2009 • Joint Center for Housing Studies of Harvard University, State of the Nation’s Housing

2012, published by the President and Fellows of Harvard University


• New Mexico Mortgage Finance Authority, State of Housing 2011: Long Road to Recovery, published by the New Mexico Mortgage Finance Authority

• Mid-Region Council of Governments, 2035 Regional Forecast, 2010 Public Participation Stakeholder Interviews. Stakeholder interviews were conducted with several groups including: the staff of the City of Belen (Planning, Community Development, Mapping); providers of affordable housing and related services (State Office of Habitat for Humanity, El Camino Real Housing Authority, Southwest Neighborhood Housing Services, Valencia County Shelter for Victims of Domestic Violence; Valencia Counseling Services); other governmental resources (Middle Rio Grande Council of Governments; UNM Bureau of Business and Economic Research; NM Mortgage Finance Authority). Belen Housing Advisory Group. Two focus group meetings were held with the Belen Housing Advisory Group, convened by the City for the purposes of providing feedback and context to the planning process. All outreach materials are included in Appendix A to this plan. The Implementation Plan section of this document reflects the input from the participants of these meetings. The first meeting was held on June 7, 2012 with 6 attendees. After a presentation on the initial findings from the Community Profile, the group provided their opinions on what they perceived housing needs to be in Belen. Several concerns were expressed about:

• High numbers of vacant buildings in Belen, both commercial and residential; • Belen’s low incomes, low educational attainment and high poverty rates; • Lack of general public’s understanding of homebuilding and the home buying process; • More people who used to have good jobs qualifying for assistance; • Land ownership concentrated with several families who over-value the worth of their

properties, thereby hindering efforts to redevelop Belen’s downtown. A follow up meeting with the Housing Advisory Group was held on July 11, 2012. At this meeting, participants discussed conceptual recommendations proposed for this plan. The biggest needs and opportunities identified by the group included:

• Rehabilitation of dilapidated properties • Low-income rental development • Transitional housing to stabilize vulnerable populations • Housing for the elderly • Tying in development to the Railrunner station area


Presentation to the Governing Body. On June 18, 2012, a presentation was made to the Belen City Council presenting the community profile and describing the planning process and next steps. The minutes from the meeting are included in Appendix A. Final recommendations were presented to the Belen City Council on January 22, 2012; however, minutes from this meeting are not yet available. Community Survey. A community survey was distributed widely to ascertain concerns and perceptions among community members about affordable housing in Belen. Participation in the survey was NOT limited strictly to residents of the Belen city limits, but also to households who consider themselves part of Belen and/or conduct most of their business or provide services primarily to residents of Belen. The survey was also provided in Spanish. The survey was available online, from a link on the City of Belen homepage and distributed through several community networks including: the Chamber of Commerce list serve, the City of Belen employee list serve, two local churches, and the Belen Consolidated Schools employee list serve. Paper copies were available at City Hall, the Belen Library, the Community Center and the Public Health Dept. Stakeholders, city council members and Advisory Board members were asked to distribute the survey to their professional networks, friends and family members. A display ad was run in the Valencia News-Bulletin and a local reporter wrote a piece about the survey. All outreach materials are attached in Appendix A. A complete report of the survey results is contained within Appendix A. A summary of survey results is as follows:

• One in five respondents indicated that their current housing situation did not meet their needs; of those, 57% identified poor physical or structural condition as the reason.

• Replacing windows, flooring, doors, landscaping and stucco were the top five repair

needs.

• One in five respondents (20%) is currently looking for housing.

• Sixty-one percent (61%) of respondents think that there is a lack of affordable, high quality housing in Belen.

• Low incomes, not having a down payment, high sales prices and expensive rents were

given as the top three reasons that Belen residents can’t afford housing.

• Renovating abandoned homes was the most popular strategy for improving housing in Belen; next was helping homebuyers finance a buying a home; improving infrastructure was third.

Belen Affordable Housing Plan – COMMUNITY PROFILE 6

SECTION I: COMMUNITY PROFILE

Demographic Profile In summary, the following demographic characteristics are observed in Belen:

• Belen’s population growth rate was 5.3% from 2000 - 2010, compared to 15.7% in Valencia County as a whole and 47.8% in Los Lunas. This growth is likely to be due to natural increase.

• Belen’s population constitutes 9.5% of Valencia County’s.

• MRCOG projects that the population of the Belen area will grow by approximately 45,898 between 2008 and 2035– a 173.1% growth rate that accounts for more than 55% of the total growth in Valencia County, with 42% of the growth occurring in the NW.

• That household growth has outpaced population growth is indicative of a trend towards smaller households, consistent with state and national trends.

• Belen has a higher percentage of the population over age 65 (16.6%) than Valencia

County (12.9%), New Mexico (13.3%), or the nation (13.1%).

• The 2010 U.S. Census reveals that 65.3% of Belen residents are Hispanic or Latino, but Belen has a lower percentage of foreign-born residents than the rest of NM.

• 26.8% of Belen’s population lives below the poverty level, compared to 19.4% in Valencia

County, 18.4% in New Mexico, and 13.8% nationally.

• Only 52.3% of Belen’s adult population was estimated to have participated in the labor force, compared to a 57.4% in Valencia County, 61.9% in New Mexico, and 65% nationally.

• Unemployment rates and trends in Valencia County are consistent with the U.S., peaking

in 2010 approximately 9.5% and dropping to approximately 8.2% as of April of 2012.

• Job losses bottomed out in 2009 at approximately -4.3% in Valencia County, Bernalillo County, and New Mexico, but have since improved to -3.0% in Valencia County in 2010.

• Central Belen alone is expected to gain over 1,100 jobs in the services sector between

2015 and 2035.


Population The 2010 U.S. Census shows a population of 7,269 for the City of Belen, which represents a 5.3% growth from 2000. During this same period, Valencia County as a whole grew by 15.7%, reaching a population of 76,569 in 2010. Almost half of the growth in Valencia County between 2000 and 2010 occurred within the Village of Los Lunas, which experienced a 47.8% growth rate for a population of 14,835 in 2010. Thus, while Belen has experienced slow growth in recent years, its neighbor to the north has been growing rapidly. The most likely cause of this difference in the pace of growth between Belen and Los Lunas is proximity to Albuquerque, the economic center of the region. A look at the Census Tract level population data (See Figure 1.1) within Belen reveals the following:

• A 4.2% population growth in CT 9708, which includes most of downtown Belen, north of Camino del Llano on the west side of Main Street and north of E. Reinken Avenue / Hwy 309 on the east side of Main Street.

• A 3.8% population loss in CT 9709.01, which includes the southern and eastern parts of the City, including all of the area within City boundaries east of the railroad tracks.

• Significant growth (617%) in CT 9713, which includes the area west of I-25 along Camino del Llano. Population in this area grew from 53 in 2000 to 380 in 2010.


Figure 1.1. Change in Population and Households at the Census Tract level for Belen, 2000 - 2010.


Historic Population Trends. Belen’s population grew steadily over the last century, experiencing its highest rates of growth in the 1920s, 1930s and 1940s (62.0%, 43.6%, and 47.9%, respectively). Growth began to slow in the 1950s (11.9%), and population actually declined by 4.1% in the 1960s. In the 1970s and 1980s, Belen’s growth rates picked back up to around 16.5% in each of those decades and dropped to approximately 5.3% for the 1990s and through 2010. (See Figure 1.2.) Figure 1.2. Historical Population Growth.

Belen’s population constitutes approximately 9.5% of Valencia County’s overall population, which has grown rapidly over the last century, with one equally rapid population drop in the 1980s. The population of Los Lunas was historically lower than that of Belen; however, since the 1970s, population growth in Los Lunas has outpaced Belen significantly, resulting in a current population that is more than twice that of Belen’s. Natural Increase and Migration. Belen’s birth to death ratio was 1.2 for 2010, compared with 1.7 in Valencia County, and 1.8 in New Mexico and the U.S. overall.1 Between 2000 and 2010, the population of Belen rose by 368 (5.3%), which could easily be accounted for by

1 Data Source: New Mexico Selected Health Statistics Annual Report 2010, The State Center for Health Statistics, Bureau of Vital Records and Health Statistics, New Mexico Department of Health. 2 The demographic features that drive these forecasts – births, deaths, and migration – are largely independent of economic conditions and short-term growth cycles. Long-term forecasts by BBER are historically highly accurate and

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Population Belen

Los Lunas

Valencia County


natural increase of around 39 people per year, as was the case in 2010. When also taking into account regional job losses since 2008, this indicates very low in-migration and a possible net out-migration. Table 1.1. Natural Increase. Geography Births Deaths Natural Increase Birth:Death Ratio Belen (2010) 264 225 39 1.2 Valencia County (2010) 947 560 387 1.7 New Mexico (2010) 27,795 15,866 11,929 1.8 United States (2007) 4,317,119 2,423,712 1,893,407 1.8 Data Source: New Mexico Selected Health Statistics Annual Report 2010, The State Center for Health Statistics, Bureau of Vital Records and Health Statistics, New Mexico Department of Health.

Population Projections. In its 2035 Regional Forecast, the Mid-Region Council of Governments (MRCOG) predicts a short-term slowdown in population growth between 2008 and 2015, followed by a rebound through 2035. Using a land-use allocation model (LAM) in collaboration with the Bureau of Business and Economic Research (BBER), MRCOG developed a regional socioeconomic forecast dataset with benchmark years of 2015, 2025 and 2035. MRCOG’s forecast for Valencia County projects a 107% population increase between 2008 and 2035, the second highest in the MRCOG region. Table 1.2. 2035 Population Projections, MRCOG Region

Geography 2008 2035 Numeric Growth

Pace of Growth

Valencia County 77,545 160,532 82,987 107.0% Belen Area* 26,474 72,299 45,825 173.1%

Bernalillo County 649,916 1,037,719 387,803 59.7% Sandoval County 127,928 309,356 181,428 141.8% Torrance County 17,923 27,836 9,913 55.3% Southern Santa Fe County 10,589 16,682 6,093 57.5% MRCOG Region 883,901 1,552,125 668,224 75.6% Data Source: 2035 Regional Forecast, Mid-Region Council of Governments (2010). * For the purposes of this analysis, HSP has included the following DASZ units from MRCOG’s Socioeconomic Forecast in the “Belen Area”: 4155, 4166, 4167, 4172, 4173, 4174, 4175, 4176, 4181, 4182, 4183, 4184, 4185, 4186, 4187, 4191, 4192, 4201, 4202, 4203, 4531, 4611 and 4621. These units include all of Belen proper and the immediately contiguous area.

County population forecasts are developed by BBER using a cohort-component method that considers birth rates, mortality rates, and migration patterns. The forecasts were developed in 2008, prior to the downturn in the housing market and the prolonged recession. Although this method does not consider economic factors directly, migration patterns can be influenced by economic factors. Small-area population forecasts are developed by MRCOG as part of the


development of its Metropolitan Transportation Plan and are bound to the county control totals developed by BBER. MRCOG uses a land-use allocation model to determine where new growth will locate within a county. The model distributes new housing based on existing zoning, access to roadway infrastructure, and other factors. MRCOG also inputs formal development plans into the model, such that parcels within those identified locations are likely to develop first. Table 1.3. Population Projections for the Belen Area, 2008-2035.

Geography Data Analysis Sub-Zones (DASZ)

Numeric Growth, 2008 to 2035

Rate of Growth, 2008 to 2035

Share of Valencia County's Growth

Belen Area 4155, 4166, 4167, 4172, 4173, 4174, 4175, 4176, 4181, 4182, 4183, 4184, 4185, 4186, 4187, 4191, 4192, 4201, 4202, 4203, 4531, 4611, and 4621

45,825 173.1% 55.3%

Central Belen 4181, 4182, 4183, 4184, 4185, and 4186

1,240 21.4% 1.5%

Northwest Belen (includes recent annexation)

4155 and 4201 35,213 NA* 42.4%

West Side of Belen 4202 and 4203 2,083 154.4% 2.5%

East Side of Belen 4173 and 4192 1,280 45.8% 1.5%

Southeast of Belen 4191 501 19.4% 0.6% East of Belen (Rio Communities) 4611 and 4621 -73 -1.6% -0.1% North of Belen (area between Belen & Los Lunas)

4166, 4167, 4171, 4172, and 4531

3,074 41.6% 3.7%

Data Source: 2035 Regional Forecast,Mid-Region Council of Governments (2010). Analysis conducted by Housing Strategy Partners. * The Rate of Growth for Northwest Belen is too large to be expressed as a percent, since the area was virtually unpopulated in 2008 and is predicted to grow to over 35,000 in 2035.

A closer examination of the data reveals that the population of the Belen area is predicted to grow by approximately 45,898 – a 173.1% growth rate that accounts for more than 55% of the total growth in Valencia County between 2008 and 2035. According to MRCOG’s predictions, the area to the northwest of Belen, which includes a currently undeveloped recent annexation to the City, alone accounts for more than 42% of the overall predicted population growth in Valencia County by 2035. This area is predicted to grow from a population of 13 in 2008 to a booming population of over 35,000 in 2035. It is important to point out that this northwest area includes a planned development (Rancho del Cielo) that was set in motion prior to the economic downturn. Depending upon the pace and timing of this planned development, population growth may be delayed or significantly reduced in the short-term compared with


MRCOG’s predictions. However, recent funding decisions on the state level indicate a greater probability that the highway interchange integral to the project will be built in the near future. Additionally, approval of additions to the city’s airport and construction of a new hospital may be indicators that Belen’s economic recovery is well underway which will have a definite effect on future population growth. Figure 1.3. Belen Area Sub-Regions, based on MRCOG’s Data Analysis Sub-Zones.

Among the currently inhabited areas within Belen’s city limits, the west side of Belen is predicted to grow at the fastest rate (154.4%), adding more than 2,000 people by 2035, while central Belen will grow at a much slower rate (21.4%), increasing its population by around 1,200


during this period. The east side of Belen is also expected to add over 1,200 people by 2035, representing a 46.8% growth over its 2008 population. Beyond the city limits, the area to the north, between Belen and Los Lunas, is also predicted to grow substantially by 2035, adding over 3,000 people for a growth rate of 42.6% over its 2008 population. Rio Communities, located on the east side of the Rio Grande from Belen, is expected to lose population during this period. All of these figures point to the potential for significant population growth in Valencia County and in the Belen area in the relative near future. Furthermore, this analysis reveals particular growth potential in areas with extensive developable land that also have easy access to I-25 and, to a lesser extent, the Railrunner, for ease of commute to the Albuquerque area due to greater employment opportunities. However, while the region is likely to experience meaningful population growth in the coming decades, it is reasonable to assume that the 2008 BBER population forecasts for Valencia County and Belen are somewhat high. And since the forecasts pre-date the decline in the housing market with its related impact on migration, population growth could be understood as being delayed or pushed back due to economic conditions.2 Household Characteristics Household Count and Size. Between 2000 and 2010, there was an 11.2% increase in number of households in Belen, for a total household count of 2,887 in 2010. That household growth has outpaced population growth is indicative of a trend towards smaller households, which is consistent with similar trends in New Mexico and the U.S. in general. Average household size in Belen dropped from 2.6 to 2.5 between 2000 and 2010. This compares with an average household size of 2.7 in Valencia County, 2.6 in New Mexico, and 2.6 nationally. Household Type. There was a 3.2% decrease in Belen’s family households and an equal increase in nonfamily households between 2000 and 2010. Of family households, there was a 6.5% decrease in husband-wife family households, a 6.1% decrease in family households with children under 18 years, and a 2.6% increase in households with a female householder with no husband present. These changes contribute to an overall decrease in average family size from 3.1 to 3.0, compared with 3.2 in Valencia County and NM in general and 3.1 nationally. 2 The demographic features that drive these forecasts – births, deaths, and migration – are largely independent of economic conditions and short-term growth cycles. Long-term forecasts by BBER are historically highly accurate and all short-term fluctuations tend to disappear over time. In other words, MRCOG’s regional and local growth predictions are considered reasonable in spite of short-term conditions, but the form and location of growth within the area are subject to change.


Data Source: 2010 U.S. Census

Table 1.4. Household Characteristics

Household Characteristics United States New Mexico Valencia County City of Belen 2010 2010 2010 2010 2000 % change

Total Households 116,716,292 791,395 27,500 2,887 2,596 11.2% Household Size 1-person households 26.7% 28.0% 22.1% 28.7% 26.2% 2.5% 2-person households 32.8% 32.9% 33.9% 33.6% 32.0% 1.6% 3-person households 16.1% 15.3% 16.5% 16.2% 16.4% -0.2% 4-person households 13.4% 12.4% 13.6% 10.5% 13.2% -2.7% 5-person households 6.5% 6.7% 8.1% 6.4% 7.4% -1.0% 6-person households 2.6% 2.8% 3.4% 3.1% 2.7% 0.4% 7 + person households 1.9% 2.0% 2.3% 1.4% 2.1% -0.7% Average Household Size 2.6 2.6 2.7 2.5 2.6 -10.0% Household Types Family Households 66.4% 65.5% 72.6% 65.3% 68.5% -3.2% With children under 18 yrs 49.6% 50.8% 50.3% 49.3% 55.4% -6.1% Husband-wife family 48.4% 45.3% 51.8% 37.8% 44.3% -6.5% With children under 18 yrs 44.7% 43.8% 44.0% 39.5% 48.6% -9.1% Female HH, no husband 13.1% 21.6% 21.8% 26.3% 23.7% 2.6% With children under 18 yrs 65.0% 67.8% 67.4% 65.6% 70.3% -4.7% Nonfamily Households 33.6% 34.5% 27.4% 34.7% 31.5% 3.2% Householder living alone 26.7% 28.0% 22.1% 28.7% 26.2% 2.5% Householder age 65 yrs+ 22.1% 22.6% 22.5% 26.9% 24.8% 2.1% Householder age 65 yrs+ living alone 42.6% 41.2% 35.2% 41.7% 42.6% -0.9% Average Family Size 3.1 3.2 3.2 3.0 3.1 -10.0% Household has 3 + gen. 4.4% 5.0% 5.8% 5.5% na na Household w/o 3+ gen. 95.6% 95.0% 94.2% 94.5% na na

Age. Between 2000 and 2010, there was a 2.1% increase in households in which the householder is 65 years or older. Census data also show that Belen has a higher percentage of the population over age 65 (16.6%) than Valencia County (12.9%), New Mexico (13.3%), or the nation (13.1%). Between 2000 and 2010, Belen saw significant decreases in numbers of children under the age of 15 and in numbers of adults ages 25 to 44. However, during this time period, there were significant increases in the population ages 55 to 74. These shifts account for an overall increase in the median age from 34.6 in 2000 to 38.9 in 2010. By comparison, the 2010 median age was 37.7 in Valencia County, 36.7 in New Mexico, and 37.2 nationally.


Disability. In 2000, Belen showed a higher percentage of the population with disabilities (42.1%) than Valencia County (34%), New Mexico (33.7%) or the nation (31.7%).3 Of these people with disabilities, a lower percentage were ages 5 to 20 (1.4%) than in the county, state or nation, and slightly lower percentage were ages 21 to 64 (63.9%) than in the county, state or nation. However, the percentage of people with disabilities ages 65 and over was higher in Belen (34.7%) than in the county, state or nation. Race, Ethnicity and Language. The 2010 U.S. Census reveals that 65.3% of Belen residents are Hispanic or Latino, which is higher than Valencia County (58.3%), New Mexico (46.3%), or the U.S. (16.3%). Belen also shows a higher percentage of residents who speak Spanish at home (30.0%) than Valencia County (27.0%), New Mexico (25.9%), or the U.S. (11.5%). However, Belen has a significantly lower percentage of residents who were foreign born (4.6%) than Valencia County (7.0%), New Mexico (9.7%), or the U.S. (12.7%).

3 Due to a change in the wording of the disability question in the American Community Survey as of 2008, current data on disability will not be available until the ACS has 5 years of consistent data. In other words, until 2013 when the estimates for the 2008-2012 period are released, we must continue to use the 2000 Census data.


Table 1.5. Demographic Characteristics

Demographic Characteristics United States New Mexico Valencia County Belen

Population Total Population 308,745,538 2,059,179 76,569 7,269 Age Under 5 years 6.5% 7.0% 6.9% 6.9% 5 to 9 years 6.6% 7.0% 7.1% 6.4% 10 to 14 years 6.7% 6.9% 7.7% 6.5% 15 to 19 years 7.1% 7.3% 7.6% 7.6% 20 to 24 years 7.0% 6.9% 5.9% 7.0% 25 to 34 years 13.3% 13.0% 11.7% 11.2% 35 to 44 years 13.3% 12.1% 12.6% 11.3% 45 to 54 years 14.6% 14.1% 15.1% 13.8% 55 to 64 years 11.8% 12.4% 12.8% 12.7% 65 to 74 years 7.0% 7.5% 7.8% 8.9% 75 to 84 years 4.3% 4.2% 3.9% 5.3% 85 years and over 1.8% 1.6% 1.2% 2.4% Median Age 37.2 36.7 37.7 38.9 Race White alone 72.4% 69.4% 73.2% 74.3% Black or African American alone 12.6% 2.1% 1.4% 1.4% American Indian or Alaska Native alone 0.9% 9.4% 3.8% 2.6% Asian alone 4.8% 1.4% 0.5% 0.4% Native Hawaiian or Other Pacific Islander alone 0.2% 0.1% 0.1% 0.1% Some other race alone 6.2% 15.0% 17.0% 16.3% Two or more races 2.9% 3.7% 4.0% 4.8% Ethnicity Not Hispanic or Latino 83.7% 53.7% 41.7% 34.7% Hispanic or Latino 16.3% 46.3% 58.3% 65.3% Language* Speaks Spanish at home 11.5% 25.9% 27.0% 30.0% Origin* Foreign Born 12.7% 9.7% 7.0% 4.6% Disability** Population with Disabilities 31.7% 33.7% 34.0% 42.1% 5-20 years 3.8% 3.9% 4.3% 1.4% 21-64 years 64.9% 65.1% 68.5% 63.9% 65 years and older 31.2% 31.0% 27.2% 34.7% Data Source: 2010 U.S. Census, unless otherwise specified.

* Data Source: 2006-2010 American Community Survey ** Data Source: 2000 U.S. Census

Belen Affordable Housing Plan – ECONOMIC PROFILE 17

Economic Profile Income and Poverty American Community Survey (ACS) estimates from 2006-2010 Census reveal that per capita income in Belen is $16,710 – 16.2% lower than that of Valencia County, 27.2% lower than that of New Mexico, and 38.9% lower than the national per capita income. As a result of low incomes and a lack of high paying jobs, 26.8% of Belen’s population lives below the poverty level. This compares with 19.4% in Valencia County, 18.4% in New Mexico, and 13.8% nationally. In 2010, median household income in Belen was estimated to be $32,899 – 21.7% lower than that of Valencia County, 24.9% lower than the state, and 36.6% lower than the nation. Educational Attainment The 2006-2010 ACS estimates that a larger percentage of people age 25 and over lack a high school degree (24.7%) compared with Valencia County (19.9%), the state (17.3%), and the U.S. (14.9%). ACS data from 2006-2010 show that 33.4% of Belen’s population age 25 and over held a high school diploma as the highest level of education received, compared with 30% in the county, 27% in the state, and 29% in the nation. Although 30.8% of Belen’s population age 25 and over had some college or an Associate’s Degree, a far lower percentage held a bachelor’s degree or higher (11.1%) than Valencia County (16.7%), New Mexico (25.4%), or the U.S. (27.9%). Table 1.6. Economic Characteristics

Economic Characteristics United States New Mexico Valencia County Belen

Per Capita Income $27,334 $22,966 $19,955 $16,710 Median Household Income $51,914 $43,820 $42,044 $32,899 Below Poverty Level 13.8% 18.4% 19.4% 26.8% Education Level (age 25 and over) Less than High School Degree 14.9% 17.3% 19.9% 24.7% High School Degree 29.0% 27.0% 30.0% 33.4% Some College, Associate's Degree 28.1% 30.3% 33.3% 30.8% Bachelor's Degree or Higher 27.9% 25.4% 16.7% 11.1% Labor Force (as % of population 16 and over) 65.0% 61.9% 57.4% 52.3% Unemployment Rate (age 16 and over) 7.9% 7.2% 8.4% 8.8% Data Source: 2006-2010 American Community Survey

Workforce Participation In 2010, only 52.3% of Belen’s adult population was estimated to have participated in the labor force, compared to a 57.4% participation rate in Valencia County, 61.9% in New Mexico, and 65% nationally. Belen’s low workforce participation rate contributes to its low per capita income and high poverty rates. Factors that may contribute to low workforce participation may include a high disability rate, decreases in working-age population coupled with increases in


retirement-age population, and a high number of households that depend on non-wage income. Sources of Income In looking at sources of household income from the 2006-2010 ACS, it is noteworthy that 22.7% of households in Belen receive Cash Public Assistance Income or Food Stamps/SNAP, compared with 15.1% in the county, 10.7% in the state, and 10% nationally. Also noteworthy is a high percentage of households receiving Supplemental Security Income (11.4%) – almost twice the county level and almost three times the state and national levels.4 Table 1.7. Source of Household Income.

Source of Household Income United States New Mexico Valencia County Belen

Wage or Salary Income 76.6% 74.5% 74.0% 69.8% Social Security Income 27.5% 28.5% 30.6% 33.3% Supplemental Security Income 4.0% 4.6% 5.9% 11.4% Cash Public Assistance Income or Food Stamps/SNAP 10.0% 10.7% 15.1% 22.7% Retirement Income 17.5% 19.1% 19.2% 17.4% Data Source: 2006-2010 American Community Survey

Employment Employment by Industry. The largest sector of employment in Belen is Health Care and Social Assistance (17.2%), followed by Educational Services (12.5%) and Retail Trade (12.3%). Other strong sectors are Public Administration (9.3%), Transportation and Warehousing (8.4%), Accommodation and Food Services (7.1%), and Construction (6.8%). Approximately 66.9% of those employed in Belen are private wage and salary workers, while 28.1% are government workers and 4.7% are self-employed. The top two employment sectors in Belen – Health Care / Social Assistance and Educational Services – account for a higher percentage of total employment than those sectors in Valencia County or New Mexico. Unemployment. Although the unemployment rate in Valencia County has consistently remained higher than that of New Mexico over the last five years, unemployment rates and trends in Valencia County have been consistent with the U.S., peaking in 2010 approximately 9.5% and dropping to approximately 8.2% as of April of 2012. 4 To receive SSI, a person must be either age 65 or older, blind, or disabled and have limited income, limited resources and be a U.S. citizen (http://www.ssa.gov/ssi/text-eligibility-ussi.htm).


Figure 1.4. Annual Unemployment Rate, 2008-2012.

Employment Change. Between 2001 and 2010, the sector that experienced the most growth in Valencia County was Health Care and Social Assistance, adding 1,866 jobs in that period. The Retail Trade sector gained 325 jobs, while Manufacturing lost 308 jobs.

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Annual Unemployment Rate, 2008-‐2012 (YTD)

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Valencia County


Table 1.8. Change in Number of Jobs, by Industry

Industry Sector, Valencia County 2001 2010 Change in No. of Jobs

Agriculture, Forestry, Fishing, and Hunting 134 188 54 Mining (including Oil and Gas) - 28 - Construction 679 726 47 Manufacturing 859 551 -308 Wholesale Trade 150 198 48 Retail Trade 1,820 2,145 325 Transportation and Warehousing 894 980 86 Utilities - 51 - Information 80 80 0 Finance and Insurance 251 300 49 Real Estate and Rental and Leasing 100 260 160 Professional, Scientific, and Technical Services 222 260 38 Management of Companies and Enterprises - 67 - Administrative and Waste Management 130 225 95 Educational Services 34 31 -3 Health Care and Social Assistance 999 2,865 1,866 Arts, Entertainment and Recreation 77 70 -7 Accomodation and Food Services 1,082 1,182 100 Other Services, except Public Admin. 216 243 27

Total Private 7,823 10,328 2,505 Total Government 3,976 4,252 276 Federal 118 143 25 State 1,359 1,396 37 Local 2,499 2,713 214 Total, All Industries 11,799 14,580 2,781

Data Source: NM Department of Workforce Solutions, Economic Research and Analysis, Table D

Job Growth. Trends in annual rates of job growth in Valencia County have mirrored those of Bernalillo County and New Mexico in recent years, with net annual job losses reported since 2008. Job losses bottomed out in 2009 at approximately -4.3% in Valencia County, Bernalillo County, and New Mexico, but have since improved to -3.0% in Valencia County in 2010. However, it is important to point out that although there have been net annual job losses since 2008, Valencia County gained a total of 2,781 jobs between 2000 and 2010, for a decennial growth of 23.5%.


Figure 1.5. Job Growth.

Employment Forecast. According to the Mid-Region Council of Governments’ 2035 Regional Forecast, the MRCOG region will continue to experience an economic slump through at least 2015, followed by a rebound by 2025 and through the next decade. MRCOG predicts that Valencia County will gain approximately 35,000 jobs by 2035 and hold 5.6% of the MRCOG region’s employment base (compared with 4.5% in 2008). The top five job centers for the region will not change greatly, aside from the eventual replacement of Midtown (Industrial) Albuquerque by Mesa Del Sol, alongside the I-25 North Corridor, Kirtland Airforce Base, Downtown Albuquerque, and University of New Mexico Main Campus. The City of Belen is home to manufacturing companies Avonite and Sud-Chemie and numerous small businesses. In addition to the top five job centers, growing employment centers such as Valencia County’s Los Morros Business Park in Los Lunas, will be critical components of the region’s economic future. Located just to the north of Belen, Los Lunas is a rapidly growing and increasingly important part of the Albuquerque metro area. Los Morros Business Park includes a large Wal-Mart distribution center and continues to attract new employers and provide the impetus for new housing development. Rancho Cielo is a planned mixed-use, residential and commercial development located northwest of Belen, in a recently annexed area. Investments (formerly RS Investments) has plans

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2002 2003 2004 2005 2006 2007 2008 2009 2010

Annual Job Grow

th Rate

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Valencia County

Bernalillo County

New Mexico


for an industrial park in Rancho Cielo, and residential development is planned to cover approximately nine square miles. Should this development move forward, it will nearly double the area of developed land in the City of Belen and will have a major economic impact on the entire region. 5 A closer look at MRCOG’s employment projections shows that Belen and the immediately contiguous area will gain over 7,800 jobs by 2035.6 The majority of these gains are expected to occur in the services sector (over 6,000 new jobs), especially in the areas of healthcare, social services and education, according to MRCOG. Central Belen alone is expected to gain over 1,100 jobs in the services sector between 2015 and 2035. Geographically, the largest employment gains are predicted in the area northwest of central Belen, including Rancho Cielo. The MRCOG data suggest that job growth in this northwest area will account for almost 62% of job growth in the Belen area by 2035. However, it should be noted that, as with the population projections, employment projections in this area may be high, at least in the short-term, as they are dependent upon the timing and pace of development for Rancho Cielo. Commuting Although more than half (50.4%) of workers in Valencia County work outside of Valencia County, only 26.8% of workers in Belen work outside the county. ACS data on travel time to work closely mirror this statistic, as 26.6% of workers travel between 30 and 59 minutes to work. Taking into consideration the large employment draw of Albuquerque and given that the average driving time to Albuquerque from Belen is approximately 38 minutes, it can be assumed that most of Belen’s workers who work outside of Valencia County most likely work in Albuquerque

5 Information on Rancho Cielo was taken from the “Market Feasibility Analysis of the Proposed Redevelopment of the Belen Apartments,” prepared by Vogt Williams Bowen Research (2009). 6 For the purposes of this analysis, HSP has included the following DASZ units from MRCOG’s Socioeconomic Forecast in the “Belen Area”: 4155, 4166, 4167, 4172, 4173, 4174, 4175, 4176, 4181, 4182, 4183, 4184, 4185, 4186, 4187, 4191, 4192, 4201, 4202, 4203, 4531, 4611 and 4621. These units include all of Belen proper and the immediately contiguous area.

Belen Affordable Housing Plan – HOUSING PROFILE 23

Housing Profile Summary of Selected Housing Characteristics A study of data related to Belen's housing stock reveals several notable characteristics: • Housing Age. Belen's housing stock is generally older than that of Valencia County or

NM. More than 10% of homes in Belen were built prior to 1940, compared with 3.2% in the County and 5.7% in NM. More than 25% of Belen's homes were built in the 1940s and 50s; 32.7% in the 1960s and 70s; and 26.1% in the 1980s and 90s. Only 5.5% of Belen's homes were constructed between 2000 and 2010. Almost 75% of homes were built prior to 1990 and are thus more than 20 years old, indicating a strong need for rehab and repair of Belen's existing housing stock. This rehab need is strongest in Central Belen – Census Tract 9708, where 80% of homes are 30 years old or older, and Census Tract 9709.01, where 48% of homes are at least 30 years old.

• Substandard Housing. The percentages of homes in Belen that lack complete plumbing facilities, kitchen facilities, or telephone service are all much higher than the levels in Valencia County as a whole, but are similar to state levels. The relative preponderance of substandard housing also indicates a need for rehab of existing housing in Belen.

• Housing Type. The majority of housing units in Belen are detached, single-family homes (65.5%). Belen has a slightly higher percentage of this housing type than Valencia County (57.3%), NM (64.3%), or the nation (61.1%). The second most numerous housing type is mobile homes (18.6% - much lower than the county at 32.9% but on par with NM at 16.7% and higher than the nation at 6.7%). Belen has a higher percentage of duplexes (4.4%) than the county, state or nation.

• Tenure. Belen's owner-occupied housing (65.2%) is lower than VC or NM but on par with the nation; conversely, Belen's renter-occupied housing (34.8%) is higher than VC or NM but on par with the nation. Interestingly, a lower percentage of owner-occupied units are owned with a mortgage, and a higher percentage of owner-occupied units are owned free and clear in Belen than in the county, state or nation.

• Overcrowding. Belen has a higher percentage (3.4%) of overcrowded homes (more than 1 person per habitable room) than the county (3.0%), the state (2.4%), or nation (2.2%).


Housing Units According to 2010 U.S. Census data, there are 3,346 housing units in Belen, representing a 13.3% growth since 2000. In contrast, the Village of Los Lunas experienced a growth rate of 53.9%, adding 2,071 new housing units between 2000 and 2010. The number of housing units in Valencia County as a whole grew by 22.1% during this period, adding a total of 5,442 housing units. The majority of new housing units between 2000 and 2010 were constructed in Census Tract 9708 (187 new units / 11.7% growth) and in Census Tract 9713 (147 new units / 506.9% growth). These figures indicate that housing growth is happening most rapidly in the northern and western parts of central Belen and on the west side of I-25 along Camino del Llano. Growth in Census Tract 9709.01, located in southern and eastern parts of Belen, has been slower, adding just 60 units for a growth rate of 4.5% between 2000 and 2010. (See Figure 1.1.)

Table 1.9. Housing Units.

Geography 2010 2000 Change (No.)

Change (%)

Belen 3,346 2,952 394 13.3% CT 9708 (part) 1,790 1603 187 11.7% CT 9709.01 (part) 1,379 1,319 60 4.5% CT 9713 (part)* 176 29 147 506.9% CT 9704.05 (part)** 0 Na Na na CT 9707 (part)** 1 1 0 0% Los Lunas 5,916 3,845 2,071 53.9% Valencia County 30,085 24,643 5,442 22.1% New Mexico 901,388 780,579 120,809 15.5% Data Source: U. S. Census Bureau

* Census Tract 9712 from the 2000 Census became 9713 in the 2010 Census. Vacancy. According the the U.S. Census, housing vacancy rates in Belen have generally gone up, from 12.1% in 2000 to 13.7% in 2010. The highest vacancy rate is in Southeast Central Belen (CT 9709.01, 18.8%), followed by Northwest Central Belen (CT 9708, 10.4%), and the west side of Belen (CT 9713, 8%). By contrast, the Village of Los Lunas had an overall vacancy rate in 2010 of 7.7%, and Valencia County of 8.6%. A look at vacancy rates by housing tenure using 2006-2010 ACS estimates shows that in Belen, there is a homeowner vacancy rate of 3.6% (higher than the county, state or nation) and a rental vacancy rate of 5.3% (lower than the county, state or nation).


Table 1.10. Housing Vacancies. Geography 2010 2000

No. % No. % Belen 459 13.7% 356 12.1% CT 9708 (part) 186 10.4% 133 8.3% CT 9709.01 (part) 259 18.8% 217 16.5% CT 9713 (part)* 14 8.0% 6 20.7% CT 9704.05 (part)** na Na Na Na CT 9707 (part)** na Na Na Na Los Lunas 453 7.7% 244 6.3% Valencia County 2,585 8.6% 1,962 8.0% New Mexico 109,993 12.2% 102,608 13.1% Data Source: U. S. Census Bureau

* Census Tract 9712 from the 2000 Census became 9713 in the 2010 Census. ** For Census Tracts 9704.05 and 9707, total numbers of housing units were too small to calculate valid vacancy rates.

Housing Characteristics Housing Type. According to 2010 ACS estimates, the majority of housing units in Belen are single-family, detached houses (65.5%). This is a slightly higher percentage than Valencia County (57.3%), New Mexico (64.3%), and the nation (61.6%). The second most numerous housing type in Belen is the Mobile Home (18.6%). This compares with 32.9% Mobile Homes in Valencia County, 16.7% in NM, and 6.7% nationally. Belen has a higher percentage of duplexes (4.4%) than the county, state or nation and a similar percentage of triplexes and four-plexes (2.1%) to Valencia County, though lower than New Mexico or the U.S. Apartments with 5 or more units account for 8.2% of housing units in Belen, compared with 2.4% in Valencia County, 9.4% in New Mexico, and 14.9% nationally. Within Central Belen, Census Tract 9708 has a high percentage of single family homes (73%) and a relatively high percentage of multifamily housing (8.7% with 20 or more units). By contrast, Census Tract 9709.01 has on 55% detached single family homes, 31% mobile homes (mostly located near the railroad tracks), and 6% duplexes. On the west side of Belen, in the Desi Loop area, 81% of homes are detached single family dwellings, and 19% are mobile homes. Housing Tenure. The 2010 U.S. Census reports that Belen has a lower percentage of owner-occupied housing units (65.2%) than the county (80%) or the state (68.5%) but on par with national figures (65.1%). Conversely, there is a higher percentage of renter-occupied housing in Belen (34.8%) than the county (20%) or the state (31.5%) but equal with national levels (34.9%). In Belen, a lower percentage of occupied housing units are owned with a mortgage (38.9%) and a higher percentage are owned free and clear (26.3%) than the county, state or nation. Within


Central Belen, there are more owner-occupied homes (62%) in Census Tract 9708 and more renter-occupied homes (45%) in Census Tract 9709.01. On the west side of Belen, in the Desi Loop area, all occupied homes are owner-occupied. Housing Type by Tenure. According to the 2006-2010 ACS estimates, 51.1% of occupied housing units are owner-occupied, single-family homes, while 17.7% are renter-occupied single-family homes, 12.1% are renter-occupied multifamily housing, 11.2% are renter-occupied mobile homes, and 8.1% are owner-occupied mobile homes. Housing Size. The 2006-2010 ACS estimates that 48.6% of housing units in Belen are 3-bedroom, 30.6% are 2-bedroom, 9.2% are 1-bedroom, 7.6% are 4-bedroom, 3.1% are 5 or more bedrooms, and less than 1% are studios. Within Central Belen, Census Tract 9708’s homes are 51.6% 3-bedroom, 30.3% 2-bedroom, 6.4% 1-bedroom, 5.8% 4-bedroom, and 4.2% 5-or-more-bedroom. Census Tract 9709.01, in Southeast Central Belen, includes 43.9% 3-bedroom homes, 31.3% 2-bedroom homes, 12.9% 1-bedroom homes, 10.2% 4-bedroom homes, and 1.7% 5-or-more-bedroom homes. In the Desi Loop area of Belen, 81.1% of homes are 3-bedroom, and 18.9% are 2-bedroom. Housing Size by Tenure. The ACS estimates that 51.1% of all occupied housing units in Belen are 2 or 3 bedroom owned homes, while 30.7% are 2 or 3 bedroom rented homes, 7.1% are 1 bedroom rented homes, 6.4% are 4 or more bedroom owned homes, 3.1% are 4 or more bedroom rented homes, and 1.6% are 1 bedroom owned homes. Group Quarters. The 2010 U.S. Census reports that there are 103 people in Belen living in group quarters. Of these, 98 are living in a nursing facility and 5 are in an unspecified non-institutionalized setting. Housing Age. Belen’s housing stock is generally older than that of Valencia County or New Mexico. More than 10% of homes in Belen were built prior to 1940, compared with 3.2% in the county and 5.7% in New Mexico. More than 25% of Belen’s homes were built between in the 1940s and 1950s; 32.7% were built in the ‘60s and ‘70s; and 26.1% were built in the ‘80s and ‘90s. Only 5.5% of homes were constructed between 2000 and 2010. Almost three quarters of Belen’s housing stock was built prior to 1990, and is more than 20 years old. Almost 60% of homes were built prior to 1980 and are more than 30 years old. And more than 40% of homes were built prior to 1970 and are more than 40 years old. Within Central Belen, there is some variation. In Census Tract 9708, 80% of homes are 30 years old or older, and in Census Tract 9709.01, 48% of homes are at least 30 years old. On the west side of Belen, in the Desi Loop area, 100% of homes were constructed after 1980; however, over 75% of these were built between 1980 and 1989 and are thus at least 20 years old.


Figure 1.6. Year Housing Built

Substandard Housing. 2006-2010 ACS data show that 1.6% of Belen’s homes lack complete plumbing facilities – a slightly higher percentage than the state as a whole (1.2%). The percentage of Belen’s homes that lack complete kitchen facilities is on par with the state, at 1.1%. Although 5.6% of Belen’s homes lack telephone service, this figure is lower than the state percentage of 6.1%. Overcrowding. The U.S. Census and HUD define “overcrowded” housing conditions as more than 1 person per habitable room (PPR) and “severely overcrowded” as more than 1.5 persons per habitable room (PPR). Belen has a higher percentage (3.4%) of overcrowded homes than the County (3.0%), the state (2.4%) or the nation (2.2%), but no homes that are severely overcrowded.

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

1939 or earlier

1940 -‐ 1959

1960 -‐ 1979

1980 -‐ 1999

2000 -‐2010

Year Housing Built

New Mexico

Valencia County

Belen


Table 1.11. Housing Characteristics.

Housing Characteristics United States New Mexico Valencia County Belen

Total Housing Units* 130,038,080 901,388 30,085 3,346 Tenure and Vacancy* Occupied units 88.6% 87.8% 91.4% 86.3% Owner-occupied 65.1% 68.5% 80.0% 65.2% Owned with a mortgage 45.4% 42.7% 54.2% 38.9% Owned free and clear 19.7% 25.8% 25.8% 26.3% Renter-occupied 34.9% 31.5% 20.0% 34.8% Vacant units 11.4% 12.2% 8.6% 13.7% Homeowner vacancy rate 2.4% 2.1% 1.6% 3.6% Rental vacancy rate 7.8% 8.3% 5.8% 5.3% Type of Units 1-unit detached 61.6% 64.3% 57.3% 65.5% 1-unit attached 5.7% 3.8% 4.4% 1.1% 2 units 3.9% 1.9% 0.9% 4.4% 3 to 4 units 4.5% 3.8% 2.0% 2.1% 5 to 19 units 9.3% 5.4% 0.9% 2.9% 20 or more units 8.2% 4.0% 1.5% 5.2% Mobile home 6.7% 16.7% 32.9% 18.6% Boat, RV, van, etc. 0.1% 0.1% 0.2% 0.3% Size of Units (No. of Bedrooms) No bedroom 1.8% 2.5% 0.5% 1.0% 1 bedroom 11.3% 9.7% 4.1% 9.2% 2 bedroom 27.2% 26.1% 22.5% 30.6% 3 bedroom 39.8% 46.0% 57.1% 48.6% 4 bedroom 15.8% 13.6% 13.1% 7.6% 5 or more bedrooms 4.0% 2.1% 2.7% 3.1% Year Structure Built 2000 or later 12.8% 13.3% 11.1% 5.5% 1990 to 1999 14.1% 18.6% 29.3% 10.9% 1980 to 1989 14.2% 17.8% 20.4% 15.2% 1970 to 1979 16.4% 19.1% 20.6% 16.8% 1960 to 1969 11.4% 10.5% 8.0% 15.9% 1950 to 1959 11.3% 10.6% 5.2% 16.3% 1940 to 1949 5.8% 4.5% 2.2% 9.2% 1939 or earlier 14.1% 5.7% 3.2% 10.1% Housing Condition Lacking complete plumbing facilities 0.5% 1.2% 0.6% 1.6% Lacking complete kitchen facilities 0.8% 1.1% 0.6% 1.1% No telephone service available 3.7% 6.1% 4.7% 5.6% Overcrowding Overcrowded (>1PPR) 2.2% 2.4% 3.0% 3.4% Severely overcrowded (>1.5PPR) 0.9% 0.8% 0.6% 0% Data Source: 2006-2010 American Community Survey, unless otherwise specified * Data Source: 2010 U. S. Census


Figure 1.7. Selected Housing Characteristics by CensusTract (within Belen City limits).

City of Belen Affordable Housing Plan – INVENTORY 30

Section II: Affordable Housing Inventory

Inventory Summary The following housing inventory was conducted through personal interviews, review of third party data sources, online mapping programs and windshield surveys. Table 2.1 summarizes the housing supply in Belen by type. For more detail, see narrative in following sections. Table 2.1: Belen Housing Inventory by Type.

Housing Type # Units

Pop Served Income Eligibility 1 BR 2BR 3BR SHELTERS Valencia County Shelter for Victims of Domestic Violence

Helen’s House 17 shelter beds Domestic violence victims Transitional rental assistance 5 scattered site units Domestic violence victims

TOTAL Shelter Beds 22 PUBLIC HOUSING El Camino Real <80%AMI

Vouchers 121 Family/Elderly/Disabled Units 0 0 0 n/a

TOTAL PUBLIC HSG 121 SPECIAL NEEDS/ASSISTED/ELDERLY Belen Vista 30 Elderly/Disabled <60% Casa Encantada 6 Elderly/Disabled <60% Rio Verde 30 10 Elderly/Disabled <60% HUD 811 Group Home 5 Disabled <50%? Shelter Plus Care Tenant-Based approx 5 vouchers in Belen Mentally Ill <50%?

TOTAL Special Needs 76 10 SUBSIDIZED RENTAL Altura Apt 4 20 Family <60% Belen Crossing/Court 24 16 Family <60% Belen Vista 26 Family <60% La Hacienda Apt 6 16 Family <50%AMI Westside Apt 4 20 Family <60% Total Subsidized Rental 14 106 16 UNIT TOTALS Shelter/Emergency 22 Public Housing Vouchers 121 Special Needs/Assisted/Elderly* 86 Family* 136

TOTAL 365 *Includes 7 dedicated accessible units in family complexes and 6 dedicated accessible units in elderly/disabled. SUBSIDIZED HOMEBUYER/OWNER New Construction (SWNHS) 4 <80%AMI Rehabs (SWNHS) 6 <80%AMI Weatherization (CNMHC) 111 (since July 2009) <200% Poverty

TOTAL 121


Emergency Housing Shelter Services. Belen has one emergency housing facility, the Valencia County Shelter for Victims of Domestic Violence which is operated by Valencia Shelter Services. The shelter has 17 beds in an undisclosed location and provides supportive services such as case management, life skills, counseling and assistance with education and employment. Every year, approximately 200 women seek shelter, resulting in 4,000 shelter nights provided. The maximum length of stay at the shelter is 90 days. Additionally, the shelter operates a transitional housing program that assists five families at a time, providing rental assistance for an open market unit. Families may receive assistance for up to 24 months and the program generally assists approximately four families a year. Every year, approximately 500 unique people are served by all of the programs combined. Valencia Shelter Services plans to apply for Emergency Shelter Grant (ESG) funds from HUD that would expand the number of families that receive transitional housing assistance starting in 2013. In addition, the organization intends to open a disclosed location homeless shelter with expanded service beyond victims of domestic violence. Public Housing Belen is in the jurisdiction of El Camino Real, a merger of the Socorro County and Valencia County housing authorities, based in Socorro. El Camino Real handles the administration of Housing Choice vouchers in Valencia County and operates one day per week out of a Los Lunas office located in the train station. Rental Vouchers. One hundred twenty-one (121) housing choice vouchers are administered through the El Camino Real Housing Authority in Valencia County. It is not certain how many are used within the city limits of Belen, but we may assume that after Los Lunas, the next biggest concentration of vouchers is in Belen. Several private rental listings in the paper noted acceptance of Section 8 vouchers, indicating a pool of willing landlords in Belen. According to the outgoing voice mail greeting on its telephone line, El Camino Real is not accepting applications from Valencia County at this time due to being at capacity for the number of available vouchers for the county. While Valencia County residents can apply for and use a voucher in Socorro County and then port the voucher to Belen, it is unlikely that this option is meeting the demand for vouchers. Public Housing Units. At this time, there are no public housing units in Valencia County.


Special Needs/Assisted/Elderly Three of Belen’s subsidized apartment complexes offer units for people with special needs, disabled and frail elderly. They are all funded with a combination of USDA, Section 8 and tax credit. Vacancies are at 0%, excepting turnover times for vacated units. Most complexes report a one-year waiting list, which is often exceeded for the units that are reserved for elderly and disabled residents. Shelter Plus Care. Valencia County Counseling Services works in partnership with El Camino Real Housing Authority to administer Shelter Plus Care tenant-based rental vouchers for people with mental illness. The housing authority is the grantee and is in its second round of funding from a five-year grant, the first having been initiated in 2005. VCCS provides intake services, maintains the waiting list and also offers counseling and other treatments to voucher holders. Approximately 25 vouchers are held within Valencia County and staff estimates that five of them are currently being used in Belen and the surrounding areas. Section 811. Valencia County Counseling Services also runs a Section 811 group home, located in Belen. The facility has five resident beds and one on-site resident manager. Currently two of the beds are empty due to the past practice of referring mentally ill patients from the counseling center rather than seeking anyone with a disability, as the Section 811 mandate would allow. The organization’s new director intends to fill the beds and initiate a marketing plan within the next several months. Subsidized Rental Within the city limits, there are five multi-family rental complexes, providing a total of 136 units. Unit sizes range from one, two or three bedroom units, however, almost 80% of the units are two bedrooms. All complexes reported 0% vacancy and those who keep waiting lists estimate the wait to be up to one year. Rents range from approximately $300 - $500 for one bedrooms; $325 - $600 for two bedrooms; and $390 - $700 for three bedrooms, reflecting varying income levels and rates of subsidy. Four complexes are funded through USDA in combination with other funding sources, including Low Income Housing Tax Credits (LIHTC) and Section 8. La Hacienda was a formerly market rate project that was renovated using Neighborhood Stabilization Program (NSP) funds and now restricts income eligibility to 50% of the area median income. Belen Crossing was also recently renovated, using USDA and tax credit funds and in partnership with SWNHS. All complexes serve renters earning up to 60% of the area median income. All are privately managed.


Homeownership New Homebuyers. Southwest Neighborhood Housing Services (SWNHS) is the only non-profit that has recently developed affordable housing both rental and homeownership in the Belen area. In addition the organization provides homebuyer training and education for first time homebuyers. Between 2008 and 2013 SWNHS constructed six new affordable homes for people under 80% of the area median income. SWNHS has also provided homebuyer education, counseling to over 3500 families in the greater Albuquerque area, with annual service averages over the last five years ranging from 400 to over 800 annual participants. In that same period of time, SWNHS provided several homebuyer education workshops in Belen. In addition, SWNHS also provides foreclosure prevention counseling to current homeowners, a service which has steadily increased from zero participants prior to 2008 and escalating from 40-50 cases a year, to over 140 in 2011. Looking forward, SWNHS would like to revamp homebuyer education and counseling outreach in Belen, explore further housing development, implement a housing rehabilitation program for existing homes and possibly develop transitional housing. The only other homebuyer services provided in Valencia County was through the local affiliate of Habitat for Humanity which has been permanently closed due to financial insolvency. Conversations with past board members indicate that this affiliate could not be reactivated without absolving significant debt. This information was partially contradicted by the statewide Habitat Office which suggested that the affiliate could be reopened if there was a motivated group of people to drive that process. Existing Homeowners Rehabilitation. According to MFA staff, Valencia County lacks a grantee for HOME rehab funds so currently there are no rehab programs underway in the county. Prior to 2008, SWNHS rehabilitated and resold six single-family homes. In addition, SWNHS was one of the partners in redeveloping 80 units of subsidized rental housing in two projects in Belen. Weatherization. Valencia County is in the jurisdiction of Central NM Housing Corporation which provides weatherization services. From January 2012 through November 2012, 27 homes were weatherized in Belen. Staff indicated that there is a notable need for weatherization services in Belen. Since the provider is not located in Belen and covers a very large territory of western New Mexico, staff explained that services are provided once several projects can be lined up to maximize cost and time efficiencies.


Regional Housing Services Given its close proximity to Albuquerque, Belen has the advantage of being eligible to receive a wide range of services from several regional service providers. The following description of services is based on the MFA’s Services Provider Directory and is provided to indicate that there is opportunity to access services not available in Belen. There is not verification of any of these services currently being provided in Belen so they are not included in the preceding services inventory. Also, while these services are quite comprehensive, it’s important to note that for people in crisis, it may not be feasible to travel over 30 miles in a region with limited public transportation to access them. Some homeless providers encompass Valencia County in their service areas. They include Adelante Development Center that provides family and elderly support services; All Faith’s Receiving Home offers shelter and family support services and Amistad Crisis Shelter serves youth who need emergency services. Joy Junction provides emergency shelter, family support services for survivors of domestic violence and Youth Development Inc. offers shelter and crisis intervention services for youth. Some housing services are offered closer to home in neighboring Los Lunas, 10 miles north of Belen. Casa Encantada Shared Living offers short-term beds, rental assistance and family support services, including for people with developmental or behavioral health needs. Valencia Counseling Services Inc., also based in Los Lunas, offers housing services through its Casa Milagro facility and the Mid-West New Mexico Community Action Program offers emergency rent, utility and mortgage assistance. Independent Living Resource Center (ILRC) provides a wide range of services designed to empower people with disabilities to maintain or increase their independence and participate fully in work, family, and community life. While providing a range of supportive services for people with disabilities in the greater Valencia County area, ILRC does not currently provide any housing services specific to Belen. In the past they have provided homebuyer training classes, but there are no current plans to offer those services in the future.

Belen Affordable Housing Plan – LAND USE 35

SECTION III Land Use and Development From interviews, data analysis, and review of policy and land use regulations, it is clear that Belen’s current housing stock is not adequately meeting the needs of its residents. This section presents a review of current land use policy and proposed revisions; analyzes development constraints; presents a sites inventory for future development and provides an overview of housing development and rehabilitation and weatherization opportunities in Belen. Also included is a feasibility analysis to guide the planning process for affordably priced housing. Recommendations from this section are incorporated into the Implementation Plan portion of this document.

Regulatory Analysis The following section analyzes Belen’s current regulations regarding land use and development identifying constraints and opportunities for supporting affordable housing, as summarized in Table 3.1. Table 3.1: Summary of Regulatory Constraints

Regulation High Constraint

Medium Constraint

Low Constraint Comment

Affordable Housing

Ch. 15.24 P The 25-unit maximum potentially hinders

affordable, multi-family development

Economic Development

Ch. 15.44 P

Includes “affordable housing” as an allowable contribution but does not specify parameters for contribution

Zoning Ordinance

Ch. 17 P

Adequate densities to support affordability in residential zones but not enough land dedicated to multi-family

Subdivision Regulation P The review process requires upfront costs

for applicant

Water/Sewer P The process for establishing the cost basis and req’m for water rights is in need of updating

Vacant Structure

Ordinance P

Provides opportunity to support neighborhood revitalization, rehab foreclosed structures.

Historic Preservation

Ch. 15.16 P

Will have more impact as downtown revitalization moves forward

chrisgraeser

Line


Affordable Housing Policy Housing Policy Ordinance. The City of Belen has a housing ordinance in place, Chapter 15.24, which provides general guidelines for the promotion of affordable housing. Passed in 1981, this includes the “encouragement of low-income and subsidized housing” on scattered sites throughout Belen, avoiding areas that already have high concentrations of low-income and minority people. The ordinance also dictates a maximum density of 25 units per low-income housing site, with an exception for senior housing which may go up to 75 units. The ordinance calls for City consultation on design of low-income housing to ensure flexibility and compatibility in design type and construction technique but offers no formal outline of a process under which to do that. The ordinance also explicitly allows for low-income housing development in all census tracts. Lastly, the ordinance allows for the use of public monies for the rehabilitation of housing within areas that are prime for redevelopment. Currently, the city does not have official redevelopment areas established, but this will be accomplished with the update of the Master Plan, with Belen’s downtown area identified as a priority area. While well intentioned, this ordinance may place unnecessary constraints on the development of affordable housing, particularly the 25-unit limit which could disadvantage Low Income Housing Tax Credit development or larger subdivision development. This issue should be addressed with the passage of a new municipal affordable housing ordinance that will supersede the existing ordinance and is in compliance with the New Mexico Affordable Housing Act. The new ordinance will also address how the City of Belen’s planning staff will review and provide recommendations for proposed projects particularly in terms of design and how to meet greater affordability and redevelopment goals. Economic Development Plan Ordinance. Chapter 15.44 of the municipal code is an economic development ordinance. The ordinance requires that any entity requesting assistance from the City for an economic development activity be recognized as a “qualifying entity”; provide evidence that the proposed activity will provide a quantifiable benefit to the community, particularly in regard to job training and creation; be subject to an annual performance review; and provide a security interest to the City of Belen (letter of credit, bond, mortgage or lien). The ordinance language identifies the Greater Belen Economic Development Corporation (GBEDC) as the entity responsible for considering applications and making recommendations to the City. At the time GBEDC was a quasi-governmental organization. While they still fulfill this role at this time, city staff is reassessing their relationship now that GBEDC is now an independent agency. The ordinance requires that the proposed activity will make a “substantive contribution” to the City including having “value and may be paid in money, in-kind service, jobs, expanded tax base, property or other thing or service of value for the expansion or improvement of the economy.” Affordable housing is included as an example of such contribution, however, it is not


clear whether this provision has ever been implemented and the ordinance does not specify any terms to this contribution. Zoning Ordinance Chapter 17 of the municipal code covers the zoning categories for the city of Belen. The ordinance includes 14 specific categories, including eight zones specific to residential housing. Table 3.2: Belen Zoning Categories

The more dense zoning categories allow for adequate densities to achieve the economies of scale necessary to produce affordable housing. However, the 2003 Comprehensive Plan dedicates a surprisingly small percentage of land use to multifamily housing. The lack of appropriately zoned multifamily land could be acting as a hindrance to affordable rental housing development. Interviews with private developers, housing nonprofits and City planning and zoning staff indicate that the City will accept rezoning requests for the purpose of providing affordable, multi-family homes. Table 3.3: Belen Percentage Land Area by Zoning 2003

Zone Setback (FxSxR) Min. Lot Size Density

(DU) Height Floor Area Ratio

A-R agricultural/residential (20-5-15) 1 acre 1 35 R-1 single-family residential (20-5-15) 6000 sq ft 7 35 R-1A single-family mixed (20-5-15) 6000 sq ft 7 35 R-2 multifamily residential (20-5-15) 7000 sq ft 45 1 R-2A (10-5-15) 4000 sq ft 10 45 1 R-3 small lot residential (15-0-10) 3000-3500 sq ft 12-14 35 1 R-4 medium residential (10-5-15) 4000 sq ft 10 45 1 C-R commercial/residential same as R-2 Becker Avenue Zone 45 C-1 general commercial same as R-2 C-2 mixed used commercial (0-0-15) 65 Main Street Overlay 10 front M-C manufacturing/ commercial No residential SU-1 special use zone (mobile homes) (20-5-10) 4500 sq ft 9


Figure 3.1: Belen 2003 Zoning Map


Subdivision Development Subdivision Regulations and Design Standards for the City of Belen were created in 1993 by Molzen Corbin and Associates. While complete for their time, the current regulations definitely need updating as they are now nearly 20 years old. This should be undertaken as a function of the update of the city’s comprehensive plan. Areas that need addressing are increased detail, streamlining for affordable housing, more flexibility and enhancing enforcement tools. The current subdivision regulations detail a three-step process that includes pre-application, preliminary plat and final plat stages. Step One. Pre-application includes informal consultation with land use staff followed by submission of a location map, “sketch plan” and basic written information about the proposed subdivision. This stage does not have a formal review period of fees associated with it. Step Two. The Preliminary Plat stage requires the submission of eight copies of the preliminary plat, a detailed improvement plan 14 days prior to a scheduled city council meeting. Also required are soils tests, storm drainage management plan, schedule of development, and a special problems analysis. Once the application is submitted, the Governing Body has 35 days to make a decision although a 21-day extension is available if engineering analysis is required. This stage also requires at least one public hearing with 15-day notice. This stage requires a fee of 1.5% of estimated construction cost paid to the City at the time of application. Step Three. The Final Plat follows a similar pattern to the preliminary plat and must be submitted 14 days prior to a scheduled meeting of the governing body and has a 35-day approval period. The Final Plat approval also requires the dedication of all public streets and lands within the subdivision to the City of Belen. Prior to the submission of application for final plat, the developer must complete the required improvements contained in the design standards. Alternatively the developer may submit a bond or escrow the amount necessary for the improvements. The design standards are detailed and include monuments, streets, sidewalks, domestic water, sanitary sewer, drainage and streetlights. Subdivision Design Requirements. In general, the two aspects of subdivision regulation that have the can have the greatest effect on housing affordability are lot size and design and street requirements. The Belen subdivision regulation does not include any provisions for lot design as these are governed by the underlying zoning. Road design standards are commensurate with other communities and do not place an undue constraint on housing development. The design standards for streets include four categories of roadway including alleys, residential, collector and arterial streets. Table 3.4 demonstrates the minimum width of both right of way and paved surfaces.


Table 3.4: Subdivision Street Design Standards

Street Type Minimum Right of Way Min. Pavement Width Alley 20 ft. N/A Residential 50 ft. 32 ft. Collector 68 ft. 48 ft. Arterial 100 ft. 66 ft.

The design standards for streets include four categories of roadway including alleys, residential, collector and arterial streets. Developer interviews indicate that, while not excessive, the design standards are slightly more costly than other nearby locations such as Los Lunas, although no specific provisions were cited. Additionally, they report that the current structure requires a large amount of upfront design and engineering costs when compared to other communities, and with no guarantee of subdivision approval. As part of updating its Master Plan, City of Belen staff intends to address the constraints identified in this analysis and update the subdivision code accordingly. This may entail reducing or making flexible zoning and subdivision requirements to accommodate diverse housing types and varied densities with the overall objective of accomplishing affordability with minimum or no subsidy. Water and Sewer. Development of a residential subdivision also requires the provision of water rights at the rate of .336 acre-feet per dwelling unit. Included in the regulations are provisions for lowering that contribution to .2 acre-feet for projects that can demonstrate water saving technology integrated into the development, although no specific guidelines are provided in the regulations regarding compliance. Commercial developments (including multi-family housing) do not have to provide water rights as long as their projected use falls within the allotted water budgets. There are also provisions for an in lieu fee paid directly to the City for water rights. This is calculated based on $2400 per acre-foot with an inflation calculation equal to $2400 multiplied by X/200 where X represents the EPA Small City Conventional Treatment Construction Cost Index. Subdivision standards also require the dedication of lands for use of public space. This is calculated at either $200 worth of land per dwelling unit, or the equivalent cash payment to the City. While these provisions do not create an undue constraint on development, there are several aspects of the water policy that could be updated to provide more incentive for housing development. First, the in lieu payments formula is based on an outdated metric no longer published by the EPA. City staff plans to update this and base it on more modern costs of water rights acquisition. Second, while affordable multi-family development is not required to provide water rights, affordable single-family housing is subject to the requirement. By waiving water rights requirements for affordable single-family housing projects, as defined in the new affordable housing ordinance, the city could incentivize the provision of affordable housing. Building Permits. The City of Belen does not have a city-level building code. Chapter 15.04 formally adopts the current State of New Mexico Uniform Code as the applicable code for the


City of Belen. The State of New Mexico’s Construction Industries Division (CID) is thereby responsible for building code inspections and approvals. As is the case in other communities without local inspectors, builders in Belen have to coordinate with an out of town agency, sometimes leading to delays and higher costs. City of Belen planning staff reports that in the past, because the CID is only responsible for building code approvals, some properties were developed without proper adherence to local zoning code requirements, such as setback and lot coverage standards because there was not a process for local review. Staff was only made aware of violations after the structure was constructed, making the enforcement of the City’s local standards inconsistent at best. With the hiring of a new land use director, who is a degreed engineer and certified inspector, the city is now able to review all building applications for compliance with local zoning and subdivision regulations prior to submission to state CID. Other City Ordinances Structural Nuisance Ordinance. The intention of Chapter 15.04 is to mitigate properties that don’t meet a basic standard of exterior upkeep. Landowners can be fined up to $500, which can be compounding if no corrective action is undertaken. The owner or agent of a nuisance property has 10 days from formal notice to repair deficiencies or request a formal hearing. If the deficiencies are not corrected within 10 days the City or its agent may abate the nuisance issues and hold the property owner liable for the costs of the abatement. This ordinance has largely been superseded by Chapter 15.14, Belen Vacant or Foreclosed Structure Registration Ordinance. Vacant or Foreclosed Structure Registration Ordinance. Chapter 15.14 was recently enacted to give the city more leverage to deal with the high number of vacant and nuisance properties within the city. The ordinance requires that owners of building vacant more than 48 hours to register their properties with the city and provide plan for either demolition, security, or rehabilitation within 30 days of filing. The ordinance gives the city the right to inspect vacant properties and enforce regulations regarding safety. Property owners are required to pay an annual registration fee that ranges from $100-$200 for residential properties and $150-$300 for commercial properties and also includes a $300 penalty fee for failure to register and $500 for providing false statements. In the case that a property owner does not comply with these regulations, the city may undertake remedial actions, the cost of which is the responsibility of the property owner. Most importantly, the ordinance gives the city the power to file liens for unpaid fees, penalty fees, and remedial actions and to undertake foreclosure proceedings in the event these fees are not paid. In the short time this new ordinance has been in place, the city has implemented the ordinance aggressively, which has resulted in the demolition of one large vacant commercial structure and has forced movement on several others. This new ordinance will give the city leverage to help stabilize neighborhoods and could theoretically result in the city taking ownership of vacant


structures. This provides a unique opportunity for the City to rehabilitate the foreclosed single-family properties and sell them to low and moderate-income buyers, providing both affordable housing inventory as well as cash flow for affordable housing programs. Historic District Chapter 15.16 of the city code creates a five-member board that oversees the nomination of historic districts and landmarks. The Historic Properties Review Board is responsible for reviewing proposals that will potentially alter the “external features of a historic district” and provides recommendations to the City Council regarding the alteration, construction and demolition of buildings within established historic districts. Another activity within the purview of the Historic Board is the maintenance of buildings and districts that are considered historically significant. Any violation of this Chapter results in a $300 fine. While this board is somewhat stagnant at the moment, it is being ramped up as downtown renovation projects begin to move forward. The participation of this board will be particularly important for any future downtown overlay district planning. Other Land Use Policy Comprehensive Plan. Produced in 2003 by the Mid Region Council of Governments, this comprehensive policy document has several elements with bearing on the development of affordable housing. The plan identifies vacant land as the single greatest land use comprising 30 percent of the total land area of within the municipal boundary. The plan further recommends that because of the ample amount of developable land within the municipality, that annexation should be discouraged in favor of infill housing on existing vacant land. However, in the nine years since the plan’s adoption, two large annexations – the Alexander Airport Area and the northwest I-25 parcel – were approved, totaling over 7500 acres. Overall, the plan does not specifically address affordable housing policy in detail. The majority of housing related recommendations are aimed at preserving Belen’s historic character, better enforcement of current zoning regulations, the promotion of infill development and the creation of policies around annexation. The plan is also considerably out of date and should have been updated in 2008. At this point, the city’s primary planning document is based on 12 year-old Census data. The creation of an up-to-date comprehensive plan is an essential recommendation or this plan and has been identified as a high priority by the new land use director. Valencia County Mobility Plan. This countywide document mobility predates, but acknowledges the future possibility of the commuter rail station in Belen. The plan includes goals for road improvements, public transportation and non-motorized transportation including pedestrians, bicycles and equestrians. Goal F of the plan deals specifically with transportation in relation to land use practices within the county and encourages development


that is either located near existing transportation resources, or includes specific planning around transportation. Within the sub-goals the plan specifically mentions prioritizing public transportation to areas of high density residential and include transportation planning in future development. While the City appears open to these ideas, and much of the Rail Runner Station area plan deals directly with these issues, the need to acquire private land as part of redevelopment is the main obstacle. In most cases, land owners want more money for their land that it is worth. Rail Runner Station Area Plan. The location of the Belen station of the Rail Runner commuter train offers one of the greatest single opportunities for housing development in Belen. In 2009 Fehr and Peers Transportation Consultants along with Dekker, Perich and Sabatini architects conducted transit oriented planning studies and produced two resulting documents, The Station Area Plan and Infrastructure and Development Workshop Document.

Figure 3.2: Station Area Plan Land Use


The Station Area Plan calls for a number of residential housing and redevelopment strategies including scattered site infill, compact new development, multi-family development adjacent to the station and clustered rural residential zones to provide transition to adjacent rural agricultural lands. This document provides a very complete conceptual master plan and several schematic development plans on actual sites. Overall, the plan reinforces existing assets and takes into consideration many important planning variables including existing neighborhood conditions, vacant parcels, protection of existing neighborhood character and amplification of existing efforts such as the Heart of Belen downtown walkability and redevelopment project. The plan calls for compact residential infill development utilizing single-family, townhome and multifamily housing types east of the railroad tracks in both the northern and southern quadrants bisected by Reinken Avenue. Also included is a recommendation to promote Tradition Neighborhood Development through scattered site infill and allowing accessory dwelling units as a strategy to stabilize neighborhoods and create affordable housing. Master planned mixed multifamily development is proposed for a parcel north of the Railrunner Station between the Acequia and the rail yard where there are a number of vacant and underutilized parcels. Directly east of the station, there is a long vacant parcel that is proposed for compact neighborhood development, such as 2 story townhouses. Moving away from the station, the plan proposes a clustered rural residential zone that would still be in walking distance from the station, yet provide a more rural atmosphere, mountain views, open space and functioning acequia system serving as a transition to Belen’s traditional agricultural areas. In the long established neighborhoods to the west of the tracks, the plan proposes continuation of the traditional short block street pattern and the promotion of mixed-use and more intense infill development to maintain walkability. To the north of Reinken Avenue, there is a residential area adjacent to the tracks that is generally seen as affordable. The plan recommends development of a compact neighborhood pattern to create a continuous line of attached structures to form a buffer from the tracks and provide additional affordable housing. Lastly, the plan identifies several contiguous vacant lots fronting 2nd Street from Castillo Avenue to Baca Avenue as prime for redevelopment. For this area, they propose 2-3 story townhomes that would help create a more urban use pattern on the east end of downtown. The second aspect of the plan, the Infrastructure and Development Workshop Document is the outcome of a design workshop that included city staff, staff from MRCOG, the Belen Mainstreet program as well as representatives from Fehr and Peers and Dekker, Perich and Sabatini. During this workshop participants considered specific redevelopment opportunities and produced schematic plans for specific sites. Many of the plans are for non-residential uses such as beautification, street redesign and creating more visibility and permeability to existing assets such as the Harvey House. The Workshop Document also includes several specific recommendations for residential development including multifamily housing in an area named Arrival Park and also calls for the development of row houses, townhomes, terraced and


courtyard apartments. Also outlined are ideas for the redevelopment of Reinken Avenue that include mixed-use development along this vital east-west corridor.

Non-Governmental Constraints Administrative Capacity The city of Belen has two full time land use staff, including a land use director and a code enforcement/GIS position. In the past, the land use director also served as the economic development director. The newly hired land use director is very experienced in land use policy, subdivision level housing development and is a degreed engineer and certified building inspector. In addition, the land use director is currently reviewing all land use policy to ensure expedience and parity with surrounding communities. With the additional capacity from the new Land Use Director, the city should be able to administer and manage funds for affordable housing. As with most smaller communities without a strong nonprofit housing development sector, the city would greatly benefit from ongoing technical assistance with affordable housing program design, access to federal and state housing funds as well as implementation of recommendations contained within this plan. Housing Development Land Costs. Land costs in Belen are relatively inexpensive and as such, do not present a major constraint to affordable housing production. According to a market study conducted by Housing Strategy Partners in May 2012, of the approximately 87 acres of undeveloped lots without infrastructure listed for sale, the average price is approximately $13,000/acre. For the 113 acres of land served with utilities, the average asking price is $54,000/acre. Obviously, lot price is greatly contingent on location and other amenities such as irrigation. However, there is not an abundance of either finished lots or larger tracts suitable for subdivision available. A reoccurring theme from multiple interviewees is that the majority of land is held by a relatively small number of landowners. As a result, little new development has happened in Belen for several years. The City has an opportunity to incentivize private landowners to dedicate their land for affordable housing by publicly recognizing their contribution and also providing technical assistance for accessing affordable housing tax credits or other subsidy. Infrastructure. Based on interviews with developers and City staff, the availability of infrastructure is comparable with other communities. As mentioned in the section regarding subdivision development, while the design standards are somewhat more rigorous than other surrounding communities, the hard costs do not appear to be a significant hindrance to affordable development. Developers interviewed as part of this plan quoted per lot infrastructure costs in the range of $20,000 to $25,000 per lot, a cost commensurate to other communities and not likely to place an undue constraint on housing development.


Construction Costs. Few homes have been built in the last several years in the Belen area. As such, there is little recent data on which to base current construction costs. What little anecdotal information has been uncovers suggests very low construction costs relative to other areas of the state. Staff from SWNHS estimates that for the four homes built on the west mesa, base construction costs were $58/square foot. Further interviews with private developers indicate loaded build costs, not including land, in the range of $85 to $100/square foot, not an unreasonable range for producing affordable housing. Financing. As with most communities, construction financing is significantly harder to secure than in the past. Banks now require much higher equity in projects and that developers have buyers secured prior to the start of construction. With several banks located in Belen, including local banks such as My Bank and Bank of Albuquerque that are proficient in commercial and construction lending, access to financing is not any more of a significant barrier to development than in other communities in New Mexico. However, the lack of permanent mortgage financing for consumers does appear to be a critical constraint on potential housing development activity. Among the local lenders in Belen, there seems to be a very low utilization of secondary market loans, particularly those available through USDA and FHA. USDA reports that they haven’t had a single loan application from the Belen area in the past year. Working to develop the capacity of local lenders in accessing secondary mortgage financing and utilizing FHA and USDA loan products will be essential for developing a pool of mortgage-ready families to drive housing rehabilitation and new development. Construction Management. There are several builders currently operating in the Belen area on a small-scale basis, and several large production builders operating nearby in Los Lunas and Albuquerque. While the current capacity is somewhat low for a housing production boom, any major increase in housing development activity would likely draw the needed capacity from other parts in the region. Nonprofit Capacity Belen lacks any locally-based housing organizations dedicated to affordable housing development. Often the partnership between municipalities and housing nonprofits can fill capacity gaps common in all smaller municipal governments. The lack of housing nonprofits dedicated to activities in the Belen area is a considerable constraint to affordable housing development. Southwest Neighborhood Housing Services has undertaken significant several development projects in the Belen area. Their activities have included single-family, multifamily and


acquisition rehabilitation activities. While clearly motivated to work in the community they have faced multiple challenges in recent years, including the loss of lots in Belen to foreclosure and a cessation of rehabilitation work for the city of Albuquerque. However, the organization remains a HUD-approved Housing Counseling Organization and could still provide potential partnership opportunities for the City of Belen. Importantly, it has expressed motivation to provide housing services and explore new programming aimed primarily at for-purchase housing for low and moderate-income households. YES Housing is a well-established affordable housing developer and asset manager. YES has completed one NSP funded rental rehabilitation project called La Hacienda, which by all accounts was very successful and a great benefit to the community. YES is open to future LIHTC development within the City of Belen, but a large part of their selection process is driven by priority areas in the LIHTC Qualified Allocation Plan. YES indicated that they very much enjoyed working in Belen and that they would be open to undertaking another project, particularly if funding or land donation was available or Belen was included as a priority area in the state Qualified Allocation Plan. Flood Plain Much of downtown Belen lies in the 100-year floodplain. This presents certain challenges to development of affordable housing in this area. In general, the downtown areas currently within the floodplain may only need several feet of elevation to be out of the flood zone. In the case of new construction, buildings can be designed to elevate out of the flood zone, and land use staff has indicated that in many cases more accurate survey data can verify that many currently included properties are actually not in the floodplain. But as was demonstrated by the recent rehabilitation of La Hacienda apartments, floodplain considerations can lengthen development times and increase development costs considerably. The city has recently applied for federal grants to mitigate potential barriers created by floodplain issues.


Figure 3.3: Belen Flood Plan Map


Existing Homes and Rehabilitation There are several factors that indicate a high need for rehabilitation in Belen. First, the City’s housing stock is considerably older than the state’s average, with 67.7% being constructed before 1980. Belen also has higher concentrations of vacant homes than both the county and the state, particularly in census tract 9709.1 which has a vacancy rate of 18.8% of all housing units. Third, federal weatherization programs use 200% of poverty level as eligibility criteria for funding which closely equates to 70% of area median income and many rehabilitation programs have priority for seniors. In Belen, the proportion of households below 70% AMI is 62% of the population. Belen also has a higher percentage of people over 65 years of age than both the state and the Nation. Figure 3.4: Rehabilitation Priority Area


Since the start of 2007, there have been three owner-occupied units rehabbed in Belen funded through the NMMFA’s rehabilitation program. Unfortunately there has not been a rehab provider in Belen since 2009. NMMFA staff reports that there is a subgrantee who may begin providing rehabilitation services in Valencia County, but not until the next contract year. Owner Occupied Rehabilitation. This strategy is critical for stabilizing home values and ensuring that existing homes meet the basic needs of current LMI homeowners and renters. There are currently no formal owner occupied rehabilitation programs available from nonprofit service providers in Belen. USDA Rural offers a Section 504 Rehab Loan and Grant program that provides up to $20,000 in assistance for very low income and senior households. Typical interest rates for the loan may be as low as 1% with a monthly payment of approximately $35. For those 62 and older with imminent health and safety conditions within there home, a grant of up to $7,499 is available. Weatherization. Between January and November of 2012, NM Energy$mart assisted an average of 27 households in Valencia County. Compared to relatively high need factors such as the number of households living in poverty, percentage of seniors and percentage of disabled persons, the overall production through the NM Energy$mart program remains low compared to need. Accessibility, “Age in Place.” Many rehabilitation and weatherization programs prioritize seniors and residents with disabilities, and it’s clear there’s a need to focus on this group in Belen as the number of low income and disabled seniors are both higher than the state and national averages. This in combination with the older housing stock indicates that there may be seniors who are either living in housing that no longer meets their needs or having to leave their homes to live with family members or in institutional settings. Acquisition/Rehabilitation. There are currently no formal acquisition/rehabilitation programs operating in Belen. Given the city’s aging housing stock and the lack of new construction, an acquisition/rehabilitation program would achieve several objectives. It would make it possible for homebuyers with moderate-incomes to buy older homes that otherwise would not be as marketable. As more homes are rehabbed, neighborhoods are enhanced and potentially historic properties are preserved. But with high acquisition costs, and builders reporting similarly high costs for rehabilitation, this may not be an effective strategy for the lowest income households. Foreclosure Prevention. Based on an August snapshot report from Realtytrac.com, Belen had 10 foreclosures in that month and represents a downward trend over the last year. This rate of foreclosure, one foreclosure per 975 homes is on par with the state average of one per 1044 and is lower than both Valencia County rate and the rates found in neighboring Los Lunas. City staff should be trained to provide referrals to foreclosure prevention services located in Albuquerque, as well as considering the implementation of a program based in Belen.


Housing Development Feasibility Analysis Density Analysis Affordability as a function of area median income is the starting point for analysis of housing development scenarios. It is also important to remember that there remain significant gaps between what people should be able to afford and what they are willing to expend in housing expense. Determination of the subsidy needed to close the gap is accomplished by understanding the feasibility of development. Analysis of housing development and affordability is predicated by the payment capacity of potential low and moderate-income buyers or renters. The following table demonstrates the monthly housing payment capacity at varying area median income levels based on family size with the second number representing total mortgage capacity. Monthly payment capacity is calculated at a conservative 28% of gross income to compensate for mortgage insurance, homeowner’s insurance and property taxes. The top line in each income category represents the monthly payment capacity and the number below the corresponding mortgage capacity. Total mortgage capacity was calculated using a five percent interest rate for a 30-year fixed-rate loan. Area Median Income numbers are extrapolated from 2012 published HUD income limits for 100% AMI. A complete table with income levels by AMI and households size and associated assumptions can be found in Appendix B. Table 3.5: Income Limits for Valencia County

HH Size 1 2 3 4 5 6 30% AMI $303 $347 $390 $433 $468 $503

$56,505 $64,547 $72,588 $80,629 $87,149 $93,669 50% AMI $506 $579 $651 $722 $781 $839

$94,321 $107,795 $121,269 $134,526 $145,393 $156,259 60% AMI $606 $693 $779 $866 $935 $1,005

$112,794 $129,093 $145,175 $161,258 $174,080 $187,120 70% AMI $707 $809 $909 $1,010 $1,091 $1,173

$131,701 $150,609 $169,299 $188,207 $203,202 $218,415 80% AMI $809 $924 $1,040 $1,155 $1,248 $1,339

$150,609 $172,124 $193,640 $215,155 $232,542 $249,493 90% AMI $910 $1,040 $1,170 $1,300 $1,404 $1,507

$169,516 $193,640 $217,981 $242,104 $261,446 $280,788 100% AMI $1,012 $1,155 $1,300 $1,444 $1,560 $1,675 $188,424 $215,155 $242,104 $269,053 $290,568 $312,084 110% AMI $1,112 $1,272 $1,430 $1,589 $1,716 $1,843 $207,114 $236,888 $266,445 $296,001 $319,690 $343,379 120% AMI $1,213 $1,387 $1,560 $1,734 $1,873 $2,011 $226,022 $258,404 $290,568 $322,950 $348,812 $374,674


Single Family Housing Development Single-family detached housing development is not the highest affordable housing priority in Belen. Likewise, the gaps between market home prices and income-based affordability are not substantial. Based on existing land use patterns and surrounding uses of proposed affordable housing development sites, the maximum marketable density for single-family detached housing would be seven units per acre as found in residential zoning district R-1. The following scenario depicts an analysis of varying densities on one acre of land in the R-1 zone. The home is assumed to be a 1000 square foot home and affordability levels have been based area median income for a family of three. Table 3.6: Single Family Development Feasibility Analysis

ITEM

Low Density

Medium Density

Maximum Density

Maximum Density +

Land Donation

Maximum Density +

Land and Infr Donation

1 DU/ac 4 DU/ac 7 DU/ac 7 DU/ac 7 DU/ac Construction

Land (per acre) $13,000 $13,000 $13,000 Donation Donation Infrastructure $20,000 $75,000 $125,000 $125,000 Donation Permits $200 $800 $1,400 $1,400 $1,400 Cost to Build @ $100sf $100,000 $375,000 $650,000 $650,000 $650,000

Professional Services $5,000 $20,000 $35,000 $35,000 $35,000 Construction Financing $4,250 $17,000 $29,750 $29,750 $29,750 Other Soft Costs $7,700 $30,800 $53,900 $53,900 $53,900 Builder Profit/OH (10%) $15,150 $53,160 $90,805 $89,505 $77,005 TOTAL Development Cost $165,300 $584,760 $998,855 $984,555 $847,055

Cost Per Unit $165,300 $146,190 $142,694 $140,651 $121,008 100%AMI Mort. Capacity $242,102 $242,102 $242,102 $242,102 $242,102

Surplus Capacity $76,802 $95,912 $99,408 $101,451 $121,094 80%AMI Mort. Capacity $193,640 $193,640 $193,640 $193,640 $193,640

Surplus Capacity $28,340 $47,450 $50,946 $52,989 $72,632 50%AMI Mort. Capacity $121,269 $121,269 $121,269 $121,269 $121,269

50% AMI Subsidy Gap ($44,031) ($24,921) ($21,425) ($19,382) $261 This development scenario illustrates the relatively low need for subsidization of single-family housing. Affordability gaps are shown in red and highlighted in yellow. As a result of low land prices, affordable housing production is possible in nearly all income categories and at various densities of development with the exception of the 50% area median income level. Still, breakeven affordable development is possible with municipal donations, but would likely still require external subsidy such as HOME funds so that affordability could be achieved. By


utilizing municipal donations of land and infrastructure, the achieved level of affordability would serve 56% of the population of Belen with for-sale housing. Multifamily Housing Development Over half of Belen’s population earn 60% or less of the area median income and would qualify for tenancy in a Low Income Housing Tax Credit project. Clearly, affordable multifamily development is one of the greatest needs for very low-income households in Belen. With high number of people at or below the poverty line, this should be a component of any affordable housing construction. The scenario below depicts an affordable rental development scenario at three different density levels and with one with a municipal donation of land and infrastructure. Projected rents are based on debt service at 80% of development cost amortized for 30 years at 5%. Monthly payment includes $100 per unit for taxes, insurance, vacancy and operating reserves. Again, families are assumed to be three-person. Monthly subsidy gaps are in red and highlighted.

Table 3.7: Multifamily Development Feasibility Analysis

ITEM Low Density Med. Density High Density High Density +

Donations # of Units = 4 # of Units = 8 # of Units = 14 # of Units = 14 Construction

Land Cost (per acre) $13,000 $13,000 $13,000 Donation Site Prep/Infrastructure $80,000 $140,000 $200,000 Donation Permits $2,000 $4,000 $7,000 $7,000 Exactions $20,000 $40,000 $70,000 $70,000 Cost to Build $400,000 $800,000 $1,400,000 $1,400,000 Misc. Construction Costs $12,000 $24,000 $42,000 $42,000

Professional Services/Fees $4,500 $9,000 $12,000 $12,000 Construction Financing $2,500 $5,000 $8,750 $8,750 Soft Costs $1,000 $2,000 $3,500 $3,500 Syndication $750 $1,500 $2,675 $2,675 Reserves $3,000 $6,000 $12,000 $12,000 Developer’s/Sponsor Cost $15,000 $30,000 $52,500 $52,500

TOTAL Development Cost $553,750 $1,074,500 $1,823,425 $1,610,425 Cost Per Unit $138,438 $134,313 $130,245 $115,030

Rent (based on carrying cost) $845 $820 $800 $715 100% AMI Affordable Rent $1,300 $1,300 $1,300 $1,300

Surplus Capacity $455 $480 $500 $585 80% AMI Affordable Rent $1,040 $1,040 $1,040 $1,040

Surplus Capacity $195 $220 $240 $325 60% AMI Affordable Rent $779 $779 $779 $779

Affordability Gap ($66) ($41) ($21) $64 30% AMI Affordability $390 $390 $390 $390

Affordability Gap ($455) ($430) ($410) ($325) The scenario depicted in Table 3.7 clearly demonstrates the need for additional subsidy for affordable rental development very low-income households in Belen. At 60% of area median


income, even at high development densities, donations of land and infrastructure are still necessary to eliminate subsidy gap. The gap at 30% of area median income is $325 per unit per month. With 26% of the population below 30% of area median income, this exemplifies the need for municipal support of very affordable rental in Belen. Furthermore, it is clear that additional external subsidy sources such as the LIHTC, HOME Rental Development, or other sources would need to be utilized. In many cases the current parcels may not be suitable for housing development, but many of these sites could be swapped or sold in order to acquire sites more favorable for development.

Summary of Development Potential As is illustrated in the preceding analysis, the affordability of multi-family development benefits the most from the City’s potential donation of land and other resources. Even so, renters earning less than 30% of the AMI will still need substantial subsidy to afford a rental unit. Table 3.8 illustrates the percentage of Belen’s population that would benefit from new development. In summary, without high density development and corresponding land/resource donations, 44% of the population of Belen cannot afford housing in any scenario. Table 3.8: Summary of Development Potential HUD Income Category

Maximum Rent

Maximum Mortgage

No. of Households*


Potential to be served by Development Scenario

30% AMI or Below ($16,700 or below)

$390 $72,600 718 26% Can’t be served without

additional subsidy 30% to 40% AMI ($16,701 to $22,280)


additional subsidy 40% to 50% AMI ($22,281 to $27,900)


additional subsidy

50% to 60% AMI ($27,901 to $33,400)

$910 $169,300 263 9% Can be served with Donations

and High Density Homebuyer/Renter HH

60% to 70% AMI (33,401 to $38,950)

$1,040 $193,640 255 9% Can be served with Donations


70% to 80% AMI ($38,951 to $44,500)

$1,170 $217,980 123 4% Can be served with Donations


Total Low Income 1,849 66%


Sites Analysis A survey of city owned parcels identified over 100 parcels of undeveloped land and four single-family dwellings, two rented and two vacant. Given the diversity and amount of land currently held by the city, it would appear that this is a critical resource for meeting Belen’s urgent housing needs. In many cases the current parcels may not be suitable for housing development, but many of these sites could be swapped for more suitable land for residential development. Table 3.9: City-owned Property

Alexander Airport The city of Belen owns the municipal airport and extensive amounts of land in the immediate area surrounding the airport. The city is currently in negotiations regarding extensive development at the airport, so there is potential for future growth and development in the area. But given the close proximity to the airport and the potential for future commercial and industrial development these sites are not ideally suited for residential housing development. The city has expressed motivation to swap some of this land for more suitable parcels for residential development closer to the current urban core of the city. Of particular priority are the private parcels identified in the Railrunner Station Area plan. Physical Attributes. The site is located at on Llano Drive, approximately two and half miles west of the western edge of Belen proper. The site is essentially an annexed in holding surrounded by Valencia County. The local airport is owned by the city of Belen and comprises more than 1100 acres. Of that, there are 185.64 acres of platted lots ranging in size from under one acre to five acres in size. These lots have little topography or existing vegetation making them ideal for development. Continuity with Surrounding Uses. While there are some residential uses in the vicinity of Alexander airport, they are generally located much farther away from the airport facility than the land currently held by the city of Belen. Of these residential uses, most are large tracts

LAND USE Acres Roads and Alleys 10.09 Dump Area 222.50 Aragon, Along 1-‐25, Camino del Llano 148.23 Alexander Airport Area 1,118.50 City Facilities Vacant Land/Homes 0.65 Currently Occupied City Facilities/Buildings 21.51 City Parks 12.42

TOTAL City-‐owned Property 1,533.90


being used for ranching and grazing. Given the proximity to the airport, this are should not be considered for housing development. Infrastructure. The site has nearby access to domestic water, sewer, natural gas and electricity. There are no developed roads within the platter area around the airport.

Becker Avenue and Fifth Street This site is home to the former Belen Police Station, which is currently boarded and unused. Much of the site is undeveloped and currently used for parking and storage for municipal vehicles. This site is located in pedestrian distance to many services as well as public transportation including the Railrunner station. The size and eclectic nature of the existing buildings would be well suited for a mixed-use redevelopment. Given the size and location of the site, it is a likely candidate for municipal donation for a low-income housing tax credit redevelopment. As a potential anchor for other downtown revitalization efforts, the city is enthusiastic about redevelopment of this site and is open to donating the land to an appropriate redevelopment project. The city should begin initial due diligence on the site and begin seeking partners for a potential LIHTC development.


Physical Attributes. The site is bounded by Becker and Castillo Avenues between 5th and 6th Street in downtown Belen. The site has eight existing buildings that consist of the vacant police station four commercial buildings with street frontage on Becker Avenue and two prefabricated metal buildings. The balance of the site consists of paved and unpaved parking surfaces which are utilized for the storage of municipal vehicles. In addition, the historic Belen water tower is located on site. Continuity with Surrounding Uses. While the area surrounding the old police station is predominately commercial, there is currently a mix of commercial and residential uses, transitioning to full residential within two blocks of the subject site. To the east on Becker Avenue are several historic buildings that, while not currently used as residential, house second floor residential above commercial first floor spaces. One of the main historic downtown buildings, located two blocks east of the police station site, is currently undergoing renovation to become a winery and event space. There is also the potential for residential development on the upper floor of this building. The police station’s location in the core of urban Belen,

Belen’s Downtown Redevelopment Area


combined with the nearby residential development and historic uses in the area, suggest that a mixed use redevelopment of the site would be appropriate in both scale and use. Infrastructure. The site has full access to infrastructure and there is developed domestic water, sewer, natural gas and electrical infrastructure on site.

Scattered Sites The city of Belen currently owns four single-family homes located at various sites within the city. Two of these units are currently rented at market rate to private individuals. While currently a source of modest cash flow for the city, these houses could potentially provide more benefit to the community. The city should explore the rehabilitation and sale of these homes as part of a homeownership program, the revenue from which could be invested in other affordable housing activities around Belen. In some cases these sites could be subdivided and densified to increase their impact on affordable housing supply in Belen. It is advised that these activities are undertaken with an established development partner that has experience, capacity and a proven track record of leveraged resources to bring to the deal.

The former Belen Police Station.


Privately Owned Sites Given the current conditions in Belen such as little new housing development activity, relatively affordable homes available on the open market, high vacancy rates and a need to stabilize declining neighborhoods, single-family affordable housing development on private land is not a high priority. That said, if housing demand were to increase dramatically, as would be the case if any of the major economic development initiatives were to materialize, this could then become a priority.

City-owned Scattered Site Homes


De La Reina. This 80-unit subdivision developed by Fuller Homes is located immediately east of Interstate 25 north of exit 195. The subdivision consists of 4500 square foot lots intended for relatively high-density townhome type development. The subdivision has had all infrastructure installed including roads. This project stalled approximately six years ago as a result of the housing downturn, and has had no movement in recent years. The likelihood of any construction in the near future is minimal. Both the location far from the center of Belen, and the dense townhome development pattern of the site make it less attractive than other sites in Belen. Nonetheless, there is valuable infrastructure present that could lend to expeditious development were it to move forward.

Rancho Cielo. This 6,500-acre annexation is located to the northwest of Belen on the west side of Interstate 25. The master planned development was originally conceived as a mixed use development with 600-800 acres of commercial and light industrial uses planned for the southern end of the site in close to both the interstate and the BNSF rail line which extends northwest from the Belen Hub. Original plans for the area included the development of 15,000 units of housing and the Rancho Cielo Solar Farm, at the time, the proposed largest of its type in the country. The plans also included industrial and commercial development for Signate Solar


who also planned to build the solar farm. This plan was abandoned in 2005, leaving the future of this large subdivision uncertain.

At present, both the city and developer of Rancho Cielo are actively courting commercial and industrial development opportunities as drivers for the larger project. Given current prospects for development in the area, including a large Burlington Northern Santa Fe Logistic Center, it is conceivable that commercial development could create between 1000-6000 jobs. Given this site’s location far from the current urban core of Belen and the current low demand for new single-family housing development in Belen, particularly on this scale, Rancho Cielo should not be an urgent priority for affordable housing development. If a legitimate commercial development is initiated with the potential for future job creation and development that would nearly double the size of the existing community, the City will need to play a proactive role in its planning. A development of this size should include ample opportunities for the provision of affordable and moderate priced housing, both for sale and rental. If major development plans were to move forward, the city should seek the donation of a development site for a future LIHTC project. In exchange, the city should consider incentive packages for production of both rental and for-sale affordable housing such as waiving water rights requirements and providing assistance with infrastructure development.

Belen Affordable Housing Plan – HOUSING MARKET ANALYSIS 62

SECTION IV: HOUSING MARKET ANALYSIS

Housing Markets and Affordability The purpose of the Housing Market Analysis is to describe the state of Belen’s homeownership and rental markets, including the economic and demographic drivers of these markets, the challenges they face, and the outlook for the future. The Market Analysis will determine the extent to which households at various income levels can afford housing in Belen. The gap between household incomes and housing prices is indicative of Belen’s housing affordability. Analysis of affordability focuses on households having low and moderate income, defined as earning under 80% of Area Median Income (AMI) and 80-120% of AMI, respectively. Summary facts about Belen’s housing market include: • The decade between 2000 and 2010 was marked by decline in Belen’s rate of

homeownership, particularly among households whose heads were under age 45. • Between 2000 and 2010, renter-occupied housing rose from 30.1% to 34.8%, for a 28.7%

growth in Belen’s renter households. • Valencia County’s rental vacancy rates fell from 7.2% in 2009 to 5.6% in 2012. • As the renter population increases, rents slowly rise, and renter household income declines,

there is a growing supply gap of affordable rentals in Belen, particularly for extremely low-income households.

• Between 2000 and 2010, growth in Belen’s renter households outpaced that of owner households by 25%. Nearly all of the rental growth during this period was among households whose heads were over age 45. Fewer of Belen’s young people are becoming homeowners, while more and more of Belen’s baby-boomers are becoming renters.

• A large inventory of off-market housing vacancies puts Belen’s neighborhoods at risk of deterioration and threatens surrounding home values.

• Belen’s existing foreclosures will have to be absorbed by the market before a demand for new single-family housing development can arise.

• Continued improvement in job growth will be key to the rebound of the homeownership market in Valencia County

• Although Valencia County’s median sales price fell almost 12% from 2010 to 2012, home sales rose over 35% during this period.


Economic and Demographic Drivers According to the State of the Nation’s Housing 2012 report by the Joint Center for Housing Studies of Harvard University, 2012 may mark the beginning of the housing market recovery, after several years of unprecedented economic recession.1 The report cites the slowly improving economy and employment growth, in particular, as key drivers of rebounds in the housing market. However, it also warns that a broad weakening of the economy in the short term could slow or even halt the recovery of the housing market. In keeping with this prediction, New Mexico has seen recent decreases in its unemployment rates and the beginning of slow improvements in its housing markets.2 Although the unemployment rate in Valencia County has consistently remained higher than that of New Mexico over the last five years, unemployment rates and trends in Valencia County have been consistent with the U.S., peaking in 2010 at approximately 9.5% and dropping to approximately 8.2% as of April 2012.3 Trends in annual rates of job growth in Valencia County have mirrored those of Bernalillo County and New Mexico in recent years, with net annual job losses reported since 2008. However, job losses bottomed out in 2009 at approximately -4.3% in Valencia County, Bernalillo County, and New Mexico, but have since improved to -3.0% in Valencia County in 2010.4 Continued improvement in job growth will be key to the rebound of the homeownership market. Household Growth and Composition. Household growth and recent changes in household composition impact the housing market recovery by shaping housing demand. Between 2000 and 2010, Belen saw an 11.2% increase in the number of households, compared with a 5.3% population growth.5 Between 2000 and 2010, growth in the number of Belen’s renter households (28.7%) outpaced that of owner households (3.7%) by 25%. Among renters, there was a 41% increase in one- and two-person households during this period, compared with 10.6% among owner-households. Given that an estimated 59.3% of Belen’s housing units in 2010 were three or more bedrooms, these trends point for a strong demand for more one- and two-bedroom rentals to accommodate shrinking household size and an increased number of households (See “Rental Market Analysis” below). As the State of the Nation’s Housing 2012 indicates, “the pace of household growth is set by trends in headship of households (the age at which people form independent households).” Between 2000 and 2010, Belen saw striking trends in age of householders by tenure. While homeowner households whose heads were between the ages of 25 and 45 shrank by 14.4%,

1 Joint Center for Housing Studies of Harvard University, (2012), State of the Nation’s Housing 2012. Published by the President and 2 New Mexico Mortgage Finance Authority, (2011), State of Housing 2011: Long Road to Recovery. Published by the New Mexico Mortgage Finance Authority. 3 New Mexico Department of Workforce Solutions, Economic Research and Analysis, Table A. 4 New Mexico Department of Workforce Solutions, Economic Research and Analysis, Table D. 5 U.S. Census Bureau, 2000 and 2010 Census.


renter households whose heads were over the age of 45 grew by an astonishing 93.5%, accounting for nearly all of the decennial growth in renter households. Fewer of Belen’s young people are becoming homeowners or forming independent households, while more and more of Belen’s baby-boomers are becoming renters. Considering Belen’s overall aging population, these trends also indicate a need for additional, smaller rentals and a need for senior/supported housing. Household Mobility and Wealth. Household mobility has been strongly affected by the economic recession and uncertainty about the future rate of recovery. Fewer people are financially able to buy and sell homes, move, or form independent households. While the majority of Belen’s aging population will likely age in place, many will also downsize, become renters, or seek assisted living alternatives. Among Belen’s younger population under age 45, it is uncertain at what rate household formation will rebound. However, when it does, this delayed new homeownership demand may be partially met by Belen’s inventory of foreclosures and off-market properties (see “Homeownership Market Analysis” below). In the meantime, the need for rehabilitation and energy-efficiency upgrades will be particularly strong among aging homeowners residing in Belen’s prevalent older housing stock. National income and wealth trends show that while household wealth has plummeted in the last 5 years, mortgage debt has remained close to its peak, reducing home equity drastically.6 The impact of plunging home values on household wealth was most dramatically felt by low-income households. In Belen, 66% of households are classified as low-income, earning less than 80% of Area Median Income (see “Income and Affordability” below). Thus, the majority of Belen’s households are among the hardest hit by the recent housing slump. Incomes and Affordability In Belen, median monthly housing costs for homeowners are $1,033, and median monthly rent is $627. Although these figures are lower than county, state, or national housing costs, incomes in Belen are also low. According to the 2006-2010 American Community Survey, the median household income in the City of Belen is $32,899 in 2010 inflation-adjusted dollars. Median household income in Valencia County, however, is substantially higher, at $42,044 – ranking it 9th of 33 counties in New Mexico for household income. By comparison, median household income is $43,820 in New Mexico and $51,914 in the U.S.

6 State of the Nation’s Housing 2012, p.14.


Table 4.1. Income Measures

Per capita income in Belen is very low, at $16,710, compared to $19,955 in Valencia County, $22,966 in New Mexico, and $27,334 nationally. A staggering 26.8% of households in Belen live below the national poverty level – almost twice the national percentage (13.8%) and well above the state (18.4%) and county (19.4%) levels. Affordability and Cost Burden. According to the U.S. Department of Housing and Urban Development, housing is considered “affordable” if a household pays no more than 30% of its annual household income on housing costs. A household is considered “cost-burdened” if its housing costs are greater than this threshold. In Belen, 25.4% of homeowners are cost-burdened, and 50.3% of renters are cost-burdened. These figures are comparable to state levels of 25.5% for homeowners and 47.9% for renters. Table 4.2. Housing Affordability Indicators.

Affordability Indicators Belen Valencia County

New Mexico

United States

Housing units w/o a mortgage 43.5% 33.9% 38.9% 32.1% Median monthly owner costs* $1,033 $1,077 $1,194 $1,524 Cost-burdened homeowners** 25.4% 29.2% 25.5% 30.5% Median monthly rent $627 $662 $683 $841 Cost-burdened renters 50.7% 55.9% 47.9% 50.8%

Data Source: 2006 - 2010 American Community Survey * For homeowners with a mortgage

** Includes all homeowner households

A look at the distribution of cost burden by tenure within the City of Belen reveals some interesting observations. Across the board, from renters to homeowners (with and without a mortgage), there are higher percentages of cost burdened households in Census Tract 9709.01 (southeast Central Belen) than in Census Tract 9708 (northwestern Central Belen). Interestingly, in CT 9709.01, there is also a higher percentage of renters (45%) versus homeowners (55%). In Census Tract 9713, in the Desi Loop area of the west side of Belen, 100% of households are homeowners, and almost 78% of them are cost-burdened, paying more than 30% of their household income on housing costs.

United States

New Mexico

Valencia County Belen

Per Capita Income $27,334 $22,966 $19,955 $16,710 Median Household Income $51,914 $43,820 $42,044 $32,899 Below Poverty Level 13.80% 18.40% 19.40% 26.80% Data Source: 2006-2010 American Community Survey


Table 4.3. Cost Burden Distribution by Census Tract (within Belen City limits).

CT 9708

CT 9709.01 CT 9713

CT 9704.05 CT 9707 Belen City

Estimated Total Renters 597 543 0 NA NA 1140

Estimated Total Homeowners 981 659 9 NA NA 1649 Cost Burden (>30% income spent on housing cost)

Cost Burdened Renters 37.5% 46.8% NA NA NA 50.3% Cost Burdened Homeowners (with a mortgage) 34.5% 42.2% 77.8% NA NA 37.9% Cost Burdened Homeowners (w/out a mortgage) 6.0% 13.6% NA NA NA 9.2%

Data Source: 2006-‐2010 American Community Survey

Area Median Income (AMI) and Income Distribution As determined by the U.S. Department of Housing and Urban Development (HUD), Area Median Income (AMI) for Valencia County is $55,700 in 2012. AMI is used to qualify households for various HUD programs and funding sources. Low-income households earn less than 80% of AMI, very low-income households earn less than 50%, and extremely low-income households earn less than 30%. Typically, 60% AMI is a threshold for households that can afford to buy a home and those that cannot. Table 4.4 shows the income limits in Valencia County according to AMI for various household sizes. The AMI for Valencia County is highlighted, as are the income limits for three-person households which are used in this analysis. Table 4.4: HUD 2012 Income Guidelines for Valencia County Area Median Income HH # 1 2 3 4 5 6 7 8 30% AMI $13,000 $14,850 $16,700 $18,550 $20,050 $21,550 $23,050 $24,500 50% AMI $21,700 $24,800 $27,900 $30,950 $33,450 $35,950 $38,400 $40,850 60% AMI $25,950 $29,700 $33,400 $37,100 $40,050 $43,050 $46,000 $48,950 70% AMI $30,300 $34,650 $38,950 $43,300 $46,750 $50,250 $53,700 $57,150 80%AMI $34,650 $39,600 $44,550 $49,500 $53,500 $57,400 $61,400 $65,350 90% AMI $39,000 $44,550 $50,150 $55,700 $60,150 $64,600 $69,050 $73,500 100% AMI $43,350 $49,500 $55,700 $61,900 $66,850 $71,800 $76,750 $81,700 110% AMI $47,650 $54,500 $61,300 $68,100 $73,550 $79,000 $84,450 $89,900 120% AMI $52,000 $59,450 $66,850 $74,300 $80,250 $86,200 $92,150 $98,100 Table 4.5 shows how much households at each level of AMI can afford in monthly rental payments (Rent) and can qualify for in terms of a house purchase (Own), assuming a 30% conventional loan at 5.5% interest. All calculations assume 28% housing ratio, meaning that 28% of household income is spent on housing costs.


Table 4.5: Affordability Matrix for Valencia County - 20127

HH Size 1 2 3 4 5 6 7 8 30% Rent $303 $347 $390 $433 $468 $503 $538 $572 Own $56,505 $64,547 $72,588 $80,629 $87,149 $93,669 $100,188 $106,491 40% Rent $506 $579 $651 $722 $781 $839 $896 $953 Own $94,321 $107,795 $121,269 $134,526 $145,393 $156,259 $166,908 $177,557 50% Rent $606 $693 $779 $866 $935 $1,005 $1,073 $1,142 Own $112,794 $129,093 $145,175 $161,258 $174,080 $187,120 $199,942 $212,765 60% Rent $707 $809 $909 $1,010 $1,091 $1,173 $1,253 $1,334 Own $131,701 $150,609 $169,299 $188,207 $203,202 $218,415 $233,411 $248,407 70% Rent $809 $924 $1,040 $1,155 $1,248 $1,339 $1,433 $1,525 Own $150,609 $172,124 $193,640 $215,155 $232,542 $249,493 $266,879 $284,048 80% Rent $910 $1,040 $1,170 $1,300 $1,404 $1,507 $1,611 $1,715 Own $169,516 $193,640 $217,981 $242,104 $261,446 $280,788 $300,131 $319,473 90% Rent $1,012 $1,155 $1,300 $1,444 $1,560 $1,675 $1,791 $1,906 Own $188,424 $215,155 $242,104 $269,053 $290,568 $312,084 $333,599 $355,115 100% Rent $1,112 $1,272 $1,430 $1,589 $1,716 $1,843 $1,971 $2,098 Own $207,114 $236,888 $266,445 $296,001 $319,690 $343,379 $367,068 $390,757 110% Rent $1,213 $1,387 $1,560 $1,734 $1,873 $2,011 $2,150 $2,289 Own $226,022 $258,404 $290,568 $322,950 $348,812 $374,674 $400,537 $426,399 120% Rent $1,213 $1,387 $1,560 $1,734 $1,873 $2,011 $2,150 $2,289 Own $226,022 $258,404 $290,568 $322,950 $348,812 $374,674 $400,537 $426,399

Based on income categories reported by the 2006-2010 American Community Survey, the number and percentage of households in various Area Median Income categories are shown in Table 4.6 and Figure 4.1 for the City of Belen. Please note that HUD income ranges for three-person households were used in this analysis. 7 Income calculations used in the Affordability Matrix are based on the percentage of HUD median income for median family size numbers rounded to the nearest $100. Adjustments for family size are based on the HUD income formula of a 10% decrease in allowance for each family member less than the median size of four and an 8% increase in income for each family member greater than the median size. These numbers are then rounded to the nearest $50 increment as is HUD's policy. This is true for all categories with the exception of the 80% tier which is a published number from HUD and differs from the number derived from full median income because HUD's formula for 80% of median is based on the Very Low Income numbers.


Table 4.6. All Belen Households by Percent of 2012 AMI HUD Income Category

Maximum Rent

Maximum Mortgage

No. of Households*



$390 $72,600 718 26%

30% to 40% AMI ($16,701 to $22,280)

$650 $121,700 274 10%

40% to 50% AMI ($22,281 to $27,900)

$780 $145,175 216 8%

50% to 60% AMI ($27,901 to $33,400)

$910 $169,300 263 9%

60% to 70% AMI (33,401 to $38,950)

$1,040 $193,640 255 9%

70% to 80% AMI ($38,951 to $44,500)

$1,170 $217,980 123 4%

Total Low Income 1,849 66% 80% to 90% AMI ($44,501 to $50,150)

$1,300 $242,100 177 6%

90% to 100% AMI ($50,151 to $55,700)

$1,430 $266,445 76 3%

100% to 120% AMI ($55,701 to $66,850)

$1,560 $290,560 196 7%

Total Moderate Income 449 16%

Total Low and Moderate Income 2,298 82% 120% AMI or Above ($66,851 or above)

NA NA 491 18%


Almost two-thirds of Belen’s households (1,849) can be classified as low-income, with an additional 16% of households (449) classified as moderate income. Income levels are unique in Belen in the following respects:

• An unusually high percentage of households (26%) can be categorized as extremely low income, earning $16,700 or less per year.

• An unusually small percentage of households (16%) earns between 80% and 120% of AMI,

a prime category for entry-level and/or workforce homeownership. • An unusually high percentage (82%) of households can be classified as low to moderate

income.


Figure 4.1. Income Distribution by Percent of 2012 AMI, City of Belen

Homeownership Market Analysis Market Trends Between 2000 and 2010, the rate of homeownership in Belen dropped from 69.9% to 65.2%. Although Belen’s homeownership rate remains high, it has fallen in recent years as an increasing number of households become renters. As stated above, the overwhelming majority of households moving from homeownership to rental have heads of household over the age of 45 (93.5% increase between 2000 and 2010). Likewise, there have been significant declines in homeownership among households whose heads are under age 45 (-14.4% between 2000 and 2010), paired with reduced household formation among these age groups. Nationally, married-couple households with children saw the largest increases in homeownership from 1994 to its peak in 2005 and the largest losses from 2005 to 2011.8 Between 2000 and 2010, the City of Belen saw a 9.1% decrease in the number of married-couple households with children – the largest decline of any household type. Despite this decline, this household type still accounted for nearly 40% of all households in Belen in 2010. If local homeownership trends in Belen mirror national trends, this group of households likely comprises a significant portion of the -14.4% decline in homeownership among households whose heads are under age 45. Owner-occupied Housing Type. According to 2006-2010 American Community Survey estimates, 51% of Belen’s housing units are owner-occupied, single-family homes – a rate that is similar to Valencia County’s. The remainder of Belen’s owner-occupied housing units are 8 State of the Nation’s Housing 2012, Figure 22, p.20. Data Source: U.S. Department of Housing and Urban Development, U.S. Housing Market Conditions.

718 HH (26%)

490 HH (18%)

263 HH (9%)

255 HH (9%)

123 HH (4%)

177 HH (6%)

76 HH (3%)

96 HH (3%)

100 HH (4%)

491 HH (18%)

30% AMI or Below

30% to 40% AMI

40% to 50% AMI

50% to 60% AMI

60% to 70% AMI

70% to 80% AMI

80% to 90% AMI

90% to 100% AMI

100% to 120% AMI

120% AMI or Above


mobile homes, accounting for 8.1% of the Belen’s total housing units (compared with 25% in Valencia County). Home Prices and Sales. According to the NM Association of Realtors, the median sales price in Valencia County of the 106 units sold in the first quarter of 2012 was $125,250. This sales price is almost 12% lower than the median sales price for the first quarter of 2010, ($138,000). However, sales volume since the first quarter of 2010 has increased by over 35%, indicating a fairly robust level of activity in the regional sales market, compared to an 11% increase for Bernalillo County and a 4% increase for the state as a whole. Foreclosures. A search of RealtyTrac.com in August 2012 revealed that there are currently 92 homes in pre-foreclosure status in the Belen area (zip code 87002), indicating that the homeowners are in default on their mortgage but that the house has not yet been repossessed. Research also showed that there are currently 4 foreclosures at auction, 6 bank-owned homes, and 4 foreclosures for sale in the Belen area. A map of the homes in pre-foreclosure shows that there are concentrations in the northwest part of Central Belen (Census Tract 9708) and in Rio Communities, on the east side of the Rio Grande from Belen. Since 82% of Belen’s population earns at or below 120% of Area Median Income (AMI), we can assume that the vast majority of Belen’s homeowners facing foreclosure fall into that category. These figures point to a strong need for homeowner support in the form of pre-foreclosure counseling and also initial homebuyer counseling to prevent such cases in which homeowners take on a larger mortgage than they can afford. As of June 2012, New Mexico had 774 foreclosures and a foreclosure rate of 1 in every 1165 homes – a moderate rate compared with the rest of the nation. Within New Mexico, Valencia County had 54 foreclosures and a rate of 1 in every 557 homes – the fourth highest foreclosure rate in the state, behind Bernalillo, Sandoval and Dona Ana counties. The Belen area (zip code 87002) had only 11 foreclosures at that time, or 1 in every 887 homes – a relatively low rate. By contrast, the Los Lunas area (zip code 87031) had 40 foreclosures, or a relatively high rate of 1 in every 406 homes. Although RealtyTrac.com indicated that foreclosure rates in Valencia County fell over the first half of 2012, it is unclear whether this trend will continue in the near future. The high number of Belen’s homes in pre-foreclosure status in August 2012 indicates that there is likely another wave of foreclosures coming. These and the existing foreclosures will have to be absorbed by the market before a demand for new single-family housing development can arise. Borrowing Constraints and Opportunities. The current lending environment is characterized by low mortgage rates coupled with tight credit constraints and high denial rates. Loans to borrowers with credit scores below 620 have declined 93% since 2008, compared to a 30% decline to borrowers with credit scores above 620.9 Nationally, government-backed loans

9 State of the Nation’s Housing 2012, p.19.


are accounting for a significantly increased percentage of home purchases. Loans insured by the FHA, Veteran’s Administration, and the USDA Rural Development programs rose from less than 10% of home purchases at the peak of the housing boom to more than 50% of home purchases in 2009 and 2010. Funding for these loan programs has also increased dramatically in recent years and is a promising source of homeownership financing for Belen’s low-to-moderate income homebuyers in the near future. In order to maximize this potential, local lenders need to utilize these loan products more effectively and improve participation in assisting first-time, low-to-moderate income homebuyers. Homeownership Vacancy. According the the U.S. Census, housing vacancy rates in Belen have generally gone up, from 12.1% in 2000 to 13.7% in 2010. The highest vacancy rate is in Southeast Central Belen (CT 9709.01, 18.8%), followed by Northwest Central Belen (CT 9708, 10.4%), and the west side of Belen (CT 9713, 8%). These rates are significantly higher than Los Lunas (7.7%) or Valencia County (8.6%). 2006-2010 ACS estimates show that in Belen, there is a homeowner vacancy rate of 3.6% (higher than the county, state or nation) and a rental vacancy rate of 5.3% (lower than the county, state or nation). Off-market vacancies accounted for approximately 66% of Belen’s 459 housing vacancies in 2010, meaning that over 300 homes (9.5% of Belen’s housing stock) are vacant but not on either the for-sale or rental markets. These homes are either foreclosures, abandoned properties, or homes that the owners have not yet determined to sell or rent. This large inventory of off-market vacancies puts Belen’s neighborhoods at risk of deterioration and threatens surrounding home values, thus contributing to the depression of the housing market and a slow market rebound. Homeownership Affordability Based on income categories reported by the 2006-2010 American Community Survey, the approximate number and percentage of homeowner households in various AMI categories is estimated for the City of Belen. Please note that HUD income ranges for three-person households are used in this analysis. Several important observations may be made from looking at the income distribution of Belen’s homeowner households:

• There are two clusters of Belen’s homeowners by income – 19% earn 30% AMI or below, and 24% earn 120% AMI or above. The top and bottom of the income spectrums represent a combined total of 43% of all homeowner households.

• An estimated 60% of Belen’s homeowner households earn 80% AMI or below and are classified as low-income.

• More than three quarters of Belen’s homeowner households earn 120% AMI or below

and are classified as low-to-moderate income.


Table 4.7: Belen’s Homeowner Households by AMI

HUD Income Category Maximum Rent

Maximum Mortgage

No. of Households*



$390 $72,600 315 19%

30% to 40% AMI ($16,701 to $22,280)

$650 $121,700 103 6%

40% to 50% AMI ($22,281 to $27,900)

$780 $145,175 125 8%

50% to 60% AMI ($27,901 to $33,400)

$910 $169,300 146 9%

60% to 70% AMI (33,401 to $38,950)

$1,040 $193,640 150 9%

70% to 80% AMI ($38,951 to $44,500)

$1,170 $217,980 150 9%

Total Low Income 989 60%

80% to 90% AMI ($44,501 to $50,150)

$1,300 $242,100 58 4%

90% to 100% AMI ($50,151 to $55,700)

$1,430 $266,445 100 6%

100% to 120% AMI ($55,701 to $66,850)

$1,560 $290,560 100 6%


Total Low and Moderate Income 1,247 76%

120% AMI or Above ($66,851 or above)

NA NA 402 24%


Current residential home listings in Belen reveal that some homeownership opportunities exist for low and moderate-income households. A review of seventy-four residential listings for Belen revealed a median asking price of $125,000 for single-family homes (or $80.13/sq foot) and $129,450 ($80.18/sq foot) for manufactured homes. Of the listings that were analyzed, 57 were single-family homes, 18 were manufactured homes, and three were townhomes or properties with more than one unit. Not all of the homes listed are located within the city limits but are considered part of the residential area of Belen.


Table 4.8: Survey of Homes for Sale

May 2011 MLS Listings Single-Family Homes

Mfg. Homes

Condos/Multiplex

Total Percent

Under $100,000 20 6 0 26 33% $100,001 to $150,000 18 6 2 26 33% $150,001 to $200,000 8 4 0 12 16% $200,001 to $250,000 5 1 0 6 8% $250,001 to $300,000 2 1 1 4 5% Above $300,000 4 0 0 4 5%

Total 57 18 3 78 100% Median Asking Price $125,000 $129,450 $145,000 $129,450

Sources: Craig’s List, News-Bulletin classifieds, and online Multiple Listing Service search for residential listings for Belen conducted by Housing Strategy Partners, May 2012, using nm-real-estate.com. Thirty-three percent of current residential listings are priced under $100,000, which could be affordable for low-income households of three earning between 40% and 60% AMI in 2012. Most units in this price range were between 900 and 1,700 square feet in size, and had three bedrooms. It appears that most homes were built before 1980 and it is important to recognize that while these homes may appear to be in habitable condition, the likelihood of major repairs is significantly higher on an older home. Large repairs such as a roof or stucco could amount to nearly a year’s income for a very low-income family. Likewise, older homes typically have much higher operating costs mostly related to heating. For these reasons, homeownership for those below 60% AMI should be optimally restricted to new construction. Households of three earning between 60% and 80% AMI in 2012 can afford homes priced up to $190,000, which represents over 70% of homes on the market. Most homes in this price range appeared to be in good condition, were between 1,200 and 2,300 square feet in size, and had mostly three bedrooms, with several four bedrooms. Some homes in this price range are fairly new construction. Moderate-income households of three earning between 80% and 120% AMI in 2012 can afford homes priced up to $290,000, which represents over 95% of homes on the market. Homes in this price range tend to be larger have three, four, and five bedrooms. Table 4.9. For Sale Market Survey by Affordability, City of Belen Income Affd Mortgage Tot Units 1 BR 2 BR 3 BR 4 BR 5+BR

<$120,000 27 1 5 19 2 0

40-‐60% AMI $122,000-‐$170,000 16 0 2 11 2 1 60-‐80% AMI $170,000-‐$218,000 5 0 0 3 0 2 80-‐120% AMI $218,000-‐$290,000 7 0 0 6 1 0

*Data compiled by Housing Strategy Partners from the American Community Survey and HSP Survey of Homes For Sale.


Land Sales. Forty-five land sales were considered for this analysis. The lots were of varying sizes, ranging from ½ acre up to 50 acres; the median lot size was 2 acres and the average price per acre was $32,000. Rental Market Analysis Market Trends Between 2000 and 2010, the rate of renter-occupied housing rose from 30.1% to 34.8%, for a 28.7% growth in the number of renter households in Belen.10 An astounding 93.5% of the growth in renter households was among householders over the age of 45. More than half (53.5%) of this growth was also among households with three or fewer members. Along with reduced renter household size, this period was characterized by a 42.7% increase among non-family renter households in Belen and a 49.1% increase in renter householders age 65 or over. Rental Vacancy. In 2010, the rental vacancy rate was estimated to be 5.3% – lower than that of Valencia County, New Mexico or the nation. According to the Mid-May 2012 Apartment Survey conducted by the Bureau of Business and Economic Research (BBER), rental vacancy rates have fallen in Valencia County from 7.2% in 2009 to 5.6% in 2012. Generally, vacancy rates have remained lower for 1-bedroom rentals than for 2- or 3-bedroom units. With rental vacancy rates dropping and renter households on the rise, the stage could be set for recovery in the rental market. Rental Costs. According to BBER, average monthly rent in Valencia County has risen slightly from $599 in 2009 to $605 in 2012. The 2006-2010 American Community Survey estimates median monthly rent for Valencia County at $662 and for Belen at $627. Although these costs are generally lower than New Mexico or the nation, incomes in Belen are also low, with 82% of households classified as low-to-moderate income and almost 27% of the population living below poverty level. Median renter household income in Belen has also been on the decline, dropping from $24,932 in 2009 to $21,357 in 2010, according to ACS estimates. As of 2010, 84% of Belen’s renter households were considered low-income, earning less than 80% of Area Median Income (see “Rental Affordability” below). Rental Supply and Demand. Growth in the demand for rentals in Belen has meant a shrinking rental supply in recent years. As the renter population increases, rents slowly rise, and renter household income declines, there is a growing supply gap for affordable rentals. This is particularly pronounced among Belen’s large pool of low-income renter households. The hardest hit by these trends are the extremely low-income households earning at or below 30% of AMI, of which 36% of Belen’s renter households are classified (see “Rental Affordability” below). The high demand for rentals puts pressure on those at the lowest end of the income

10 U.S. Census Bureau, 2000 and 2010 Decennial Census.


spectrum, especially since the only affordable home provisions for Belen’s renters come through the Low Income Housing Tax Credit (LIHTC) program and rental vouchers. In Belen, this second option is extremely limited, contributing to a high rate of cost burden. Currently only one in four of Belen’s low-income households receives rental assistance. Renters living in affordable/subsidized housing have lower incidence of cost burden and more money available to spend on essentials. Multifamily Lending. According to the The State of the Nation’s Housing 2012 report, “government lending [has been] responsible for virtually all of the net growth in multifamily loans” since the recession began in 2008.11 Fannie Mae, Freddie Mac, and FHA contributed the majority of new multifamily lending in 2011 and have continued to increase their backing of multifamily loans. Robust government backing and a strong emergence of recovery in the multifamily market has also triggered private investment interest. However, there is uncertainty about the future role of the government in the mortgage market and debate about whether or not government guarantees should continue to apply to multifamily lending. Government backing of multifamily loans was critical during the recession, and as recovery begins and rental demand continues to rise, it may determine the extent to which communities like Belen are able to expand their multifamily housing stock. Rental Affordability Based on income categories reported by the 2006-2010 American Community Survey, the approximate number and percentage of rental households in various AMI categories is estimated for the City of Belen. Please note that HUD income ranges for three-person households are used in this analysis. In Belen, approximately 84% or 957 renter households are estimated to be low-income, earning less than 80% of AMI. An additional 3%, or 37 households, earn less than 120% AMI, and are considered moderate income. In total, 87% of Belen’s renter-occupied households earn either low or moderate income. A very high percentage of renter households are Extremely Low Income (36%), earning less than 30% AMI, and Very Low Income (31%), earning between 30% and 50% of AMI. These households are the most likely to experience housing cost burden and are the largest target market for affordable rentals in Belen.

11 The State of the Nation’s Housing, p.24-25.


Table 4.10. Renter Households by Percent of 2012 AMI, City of Belen HUD Income Category

Maximum Rent

Maximum Mortgage

No. of Households*



$390 $72,600 413 36%

30% to 40% AMI ($16,701 to $22,280)

$650 $121,700 152 13%

40% to 50% AMI ($22,281 to $27,900)

$780 $145,175 200 18%

50% to 60% AMI ($27,901 to $33,400)

$910 $169,300 100 9%

60% to 70% AMI (33,401 to $38,950)

$1,040 $193,640 52 5%

70% to 80% AMI ($38,951 to $44,500)

$1,170 $217,980 40 4%

Total Low Income 957 84% 80% to 90% AMI ($44,501 to $50,150)

$1,300 $242,100 22 2%

90% to 100% AMI ($50,151 to $55,700)

$1,430 $266,445 5 0.4%

100% to 120% AMI ($55,701 to $66,850)

$1,560 $290,560 10 0.9%


Total Low and Moderate Income 994 87% 120% AMI or Above ($66,851 or above)

NA NA 146 13%


Private Market Rentals. A survey of rental listings from Craig’s List, trulia.com and News-Bulletin.com in May 2012 indicate that Belen’s rental market is fairly robust. Fifty-two listings were evaluated for this analysis, of which eleven were mobile homes, and three were mobile home spaces. Most rents did not seem to include utilities, adding extra expense, especially for an older, less energy-efficient home. Unlike many communities, average rents for mobile homes are actually higher than single family homes due to many being located in rural areas with barns and other amenities. Additionally, Belen has a couple of high quality senior mobile home complexes, including one that listed a two-bedroom home for $1,000. Rents for mobile home spaces ranged from $175 for a single wide lot to $265 for a lot in a mobile home park that offers community amenities.


Table 4.11: Private Market Rental Survey Unit Size No. of

listings % of Units on Market

Average Rent

Rental Range Low High

1 bedroom 6 12 $545 $450 $675 2 bedroom 21 43 $640 $500 $1,000 3 bedroom 18 35 $860 $600 $1,700 4 + bedroom 5 10 $1,130 $700 $1,500

Total* 50 100 *Does not include mobile home spaces (3) If organized by AMI, it can be seen that there are no rental opportunities on the private market for renter households earning less than 30% AMI, which is over one-third of Belen’s renter population. Given that Belen’s subsidized rental complexes serve renters up to 60% but do not have any units reserved for very low income brackets, it is likely that these renters are not housed adequately and are paying much more than one-third of their incomes on housing costs. Table 4.12: Private Market Rentals by AMI Income Affd Rent Tot Units 1 BR 2 BR 3 BR 4 BR 5+ BR < 30% AMI < $390 0 0 0 0 0 0 30-‐40% AMI $390-‐650 13 5 7 1 0 0 40-‐60% AMI $650-‐900 17 1 7 8 1 0 60-‐80% AMI $900-‐1170 4 0 0 4 0 0 80-‐100% AMI $1170-‐1400 3 0 0 1 2 0 100-‐120% AMI $1400-‐1500 0 0 0 0 0 0 > 120% AMI $1500 + 2 0 0 1 0 1 *Data compiled by Housing Strategy Partners from the American Community Survey and HSP Private Market Rental Survey.

Belen Affordable Housing Plan – HOUSING NEEDS ASSESSMENT 78

SECTION V: HOUSING NEEDS ASSESSMENT

This section estimates the number of housing units needed to address housing gaps in the City of Belen for the next five years. Two types of demand are considered: “Catch Up Demand” that estimates the housing needs for the current population; and “Keep Up Demand” which looks at housing demand required to accommodate future growth.

Catch-Up Demand Table 5.1 provides the number of new housing units needed by income category to meet the needs of current households in the City of Belen. The overall demand for new, affordable for sale housing is estimated to be very low over the next five years – between 10 and 12 units. The overall demand for new, affordable rental housing is projected to be far greater over the next five years – between 125 and 165 units. Specific discussion of these and other types of housing demand are found below. Table 5.1: Projected Housing Needs to Meet Catch Up Demand

Target Population Potential No. of HH Inventory Demand

(low) Demand

(high) Emergency/Transitional Households Fluctuates 22 3 4

Disabled/Senior Renters 300* 93** 31 41

Renters at 40% AMI or Below 565 13 83 110

Renters at 40-60% AMI 300 136 25 33

Homeownership for Renters at 40-60% AMI 30 38*** 0 0

Renters at 60-80% AMI 92 4 13 18

Homeownership for Renters at 60-80% AMI 35 5 5 6

Renters at 80-120% AMI 37 5 5 6

Homeownership for Renters at 80-120% AMI 37 7 5 6

Homeownership Support at or below 120% AMI**** 600 NA 90 120

Rehab / Weatherization 989 117 131 174

Totals 1,207 440 390 519 Notes:

* Adjusted upward by five percent to capture existing senior homeowners who may need/want to downsize into a rental situation. The total also includes the number of households with a disabled household member (estimated based on population with disabilities). ** Includes 7 dedicated accessible units in family complexes. *** Homes for sale on private market that may be in appropriate condition and attainably priced for lower-income homebuyers. **** Figures for Homeownership Support at or below 120% AMI are estimated by dividing the number of homeowner households earning at or below 120% AMI in half.


Projected needs by unit size were also calculated in Table 5.2, based on the proportion of Belen’s population and household. Given the trend of aging population and the formation of single-headed households, the projections were weighted on the smaller size. Table 5.2: Projected Housing Needs by Unit Size

Unit Size (BR) Total

0-1 2 3+ Percent of Units 33% 39% 28% 100%

Demand (low) 68 82 58 208 Demand (high) 91 108 77 276

Purpose of the Analysis Catch-up demand looks at the housing needs for the current households that live in the City of Belen. The analysis compares the number of households in various income categories to existing housing that they can afford. If the number of households outweighs the number of housing units priced accordingly, a specific number of new units is recommended to be built or provided to meet the need. Theoretically, the vast majority of households considered in this analysis are already being housed, and most will not desire or need new housing. However, there are everyday reasons for existing households to need new or different housing, such as someone becoming disabled, a child being born or a person dying, or a person needing to relocate to a safer living environment. While it is difficult to estimate which of Belen’s households need and desire new housing, for purposes of this analysis, we assume that one out of every five households (20%) in each income category desires a new housing situation. We also provide a more conservative scenario of 15% to capture other unknown factors like further economic recession or job loss and to create what we consider a viable range of housing demand. Methodology Total demand for new housing development is calculated in this plan using the following methodology. A narrative analysis for each target market and income category is provided below.

1. Use the total number of renter households in the City of Belen for each income category.

2. Subtract current viable housing inventory for that income category.

3. Multiply by a “low” and a “high” demand, which assumes that 15-20% of renters in each income category need and desire new housing based on factors such as 1) changing


household circumstances such as a death, birth or disability; 2) lack of affordability; or 3) poor condition of the existing home.

4. Consider any condition unique to the income tier that is not captured by quantitative

data but might affect demand. Emergency/Transitional Shelter. It is not possible to estimate the number of households requiring emergency/transitional shelter from US Census or other data, as the number of people and families in need fluctuates over time. However, the housing inventory conducted by HSP indicates that there are currently 22 emergency/transitional housing units in Belen. From this number, HSP estimates that 3 to 4 units are needed to meet the current demand. Disabled/Senior Housing. According to the 2006-2010 American Community Survey, there are 650 senior households in Belen. Of these, 84% are homeowner households and 16% rent. Eighty percent of seniors are low and moderate income, 68% are low income, and 30% earn less than 30% AMI. The analysis for senior housing need is unique because seniors may choose to sell their homes and begin renting in order to downsize or to receive supportive services or care. Therefore, some existing homeowners should be included in the demand. For purposes of this analysis, HSP adjusted the potential number of senior renter households upward by 5% to accommodate those seniors who may choose to downsize to rental or supportive housing. The analysis also combined senior housing with disabled housing needs. Since there will not be current data on disability until 2013, HSP extrapolated disabled housing needs using data from the 2000 U. S. Census. In 2000, roughly 2600 people (575 households), or over 42% of the population, had a disability. Approximately 150 disabled householders were living below poverty level at this time. Approximately 35% of Belen’s disabled population were also over age 65 (~1000 people). Assuming that all the population with a disability who were 55 to 64 in 2000 are now considered seniors, we can project at least a 7.5% growth in population with disabilities between 2000 and 2010. If the number of disabled householders grew at this same rate, we can estimate that there are currently 620 disabled householders, of which approximately 215 are disabled, senior householders. The housing inventory revealed that there are currently 93 units of senior/disabled housing in Belen, including 7 dedicated accessible units in family complexes. HSP has estimated that there are potentially 300 households in need of senior/disabled housing in Belen, and thus the immediate demand is for 30 to 40 units of new housing to meet this need. Rental Housing at or below 40% AMI. According to Census data, there are approximately 565 renter households earning 40% AMI or less in Belen. The Market Study revealed that this demographic has been the hardest hit by the recession. Growth in the demand for rentals due to a rising renter population in Belen has meant a shrinking rental supply in recent years. As


rents rise and renter income declines, more and more extremely low income households struggle to find decent, affordable housing. The housing inventory for this income category shows that there are only 13 units on the rental market available to serve 565 potential households. Given the very high number of households in this income range and the limited number of rental opportunities available, HSP estimates a need for between 80 and 110 rental units to serve households at or below 40% AMI. This low inventory is exacerbated by the fact that Valencia County does not have any public housing facilities and is only allocated 121 vouchers for the entire county. Rental Housing at 40-60% AMI. There are 300 renter households in Belen between 40% and 60% AMI. We estimate there is an inventory of 136 rental units affordable to this income range. Based on 15-20% demand, we estimate a need for 25 to 33 rental units to serve households earning between 40% and 60% AMI. Homeownership at 40-60% AMI. In Belen, there are currently only 30 homeowner households who earn between 40% and 60% AMI. The inventory shows that there are 38 homes on the market that would be in appropriate condition and affordable to households this income range. While no new for-sale units are currently needed to serve this demographic, what may be needed is new homebuyer and/or credit counseling so that homeownership would be more accessible for this income range. Rental Housing at 60-80% AMI. There are 92 renter households in Belen between 60% and 80% AMI. For the purposes of this analysis, we assume that 70% of these households will remain renting and that 30% may be poised to pursue homeownership. Typically, HSP would assume a ratio of 80% to 20% renters to potential homeowners, but we assumed a higher percentage for homeowners given the affordability of market-rate residential listings. There are only 4 units of subsidized rentals in this price range to serve approximately 65 households. Therefore, this plan estimates that 13 to 18 units of new rental housing are needed to serve households earning 60-80% AMI. Homeownership at 60-80% AMI. We estimate that 30% of the renter households in this income category, or approximately 27 households, may be poised to pursue homeownership. In addition, there are currently 35 homeowner households in this income range. There are currently 5 units affordable to these households were listed on the private market. We therefore assume that at any given time 5 units for sale on the private market are priced between 60% and 80% AMI and are in acceptable condition for low-income buyers. This results in a projected demand of 5 to 6 units in this income category. However, the inventory revealed that there are 38 homes on the market that would be affordable to homebuyers earning 40-60% AMI, which is more than sufficient to meet the homeownership demand in that income range. These homes would also be affordable to households in the 60-80% AMI category, and thus, there is likely very little demand for new for-sale housing to meet Belen’s current needs.


Rental Housing at 80-120% AMI. There are 37 renter households in Belen between 80% and 120% AMI. For the purposes of this analysis, we assume that half of these households will remain renting and that the other half may be poised to pursue homeownership. No subsidized rental housing is offered in this income range, and the housing inventory showed that there are currently 5 market rate rental units available in this price range. Based on 15-20% demand, we estimate a need for 5 to 6 additional rental units at 80%-120% AMI to meet current needs. Homeownership at 80-120% AMI. We estimate that 19, or half of the 37 renter households in this category, may be poised to pursue homeownership. There are no subsidized homeownership units in this category, although 7 units affordable to these households were found in our private market survey. Based on 15-20% demand, we estimate a demand for 5 to 6 new homeownership units at 80%-120% AMI to meet current needs. However, given the limited capacity of local lenders to provide lending products that are appropriate for this income range and the lack of a robust homebuyer training and counseling program in Belen, it is likely that the demand is latent in this category. In other words, demand numbers would surely go up if there were programs to support the capacity of renters in this income range to become homebuyers. Homeownership Support at or below 120% AMI. For the purposes of this analysis, Homeownership Support is defined as counseling and/or training to assist potential new homebuyers in improving their credit, qualifying for an affordable mortgage, and obtaining downpayment or other assistance. Also included in HSP’s definition of Homeownership Support is counseling for homeowners who are in default on their mortgage payments or whose homes are already in pre-foreclosure. HSP estimates a large need for Homeownership Support in Belen, given the prevalence of low incomes and high number of homes in pre-foreclosure. In order to meet the current need for Homeownership Support, counseling or training programs would need to reach approximately 90 to 120 households earning at or below 120% AMI. Rehabilitation / Weatherization. In order to qualify for weatherization through the New Mexico Energy$mart Program, a household must earn less than 200% of national poverty level. In other words, a family of four would need to have a combined household income of less than $44,700, as of 2012. Any home can be eligible, either owned or rented, single-family or multi-family. The service provider for the Belen area is Central New Mexico Housing Corporation (CNMH), and they have served 111 households in Belen since 2009. Households benefiting from this program receive an average of $4,500 in energy efficiency upgrades, resulting in a potential utility savings of $350 to $500 per year. HSP estimates that at least 1000 households in Belen qualify for this program, and given the prevalence of housing stock in Belen that is over 20 years old, the demand is high. In order to improve access, more outreach is needed to educate qualifying households about how to apply through CNMH.


More substantial home rehabilitation, exceeding that provided by the NM Energy$mart Program, is needed to improve the condition of Belen’s vast stock of older homes. HSP estimates that around 500 homes are potentially in need of substantial renovation. The New Mexico Mortgage Finance Authority has set aside a portion of HOME funds for the House by House Rehabilitation Program, serving households earning 80% AMI or less. However, there is currently no service provider to serve the Belen area.

Keep-Up Demand Purpose of the Analysis Keep-up demand looks at the housing needed to accommodate future population growth. For the purpose of affordable housing projections, job growth rather than population growth is typically used to estimate the number and type of housing units needed in the future. This is because job growth is associated with a community’s workforce, and workforce households usually fall within the income categories that require affordably priced housing. Methodology Valencia County has experienced significant growth during the last decade, particularly in the Health Care and Social Services sector, accounting for over 67% of the county’s job growth between 2000 and 2010. While specific job growth—such as that estimated by a relocating company—is more commonly used to estimate housing demand, this analysis also takes into account ten-year trends because of the current economic uncertainty. Although a regional Valencia County Hospital and an industrial park in Rancho Cielo have been proposed, it is unclear when these projects will move forward. Conservative projections assume that the Valencia County Hospital will be constructed in the next five years and that the development of Rancho Cielo will be delayed indefinitely until the economy recovers. Table 5.3: Employment Change in Valencia County, 2001 to 2010

Industry Sectors, Valencia County 2001 2010 Change in

No. of Jobs

Basic Employment (Agriculture, Forestry, Fishing, Hunting, Mining, Construction, Manufacturing, Wholesale, Transportation, Information) 2,796 2,802 6 Retail Employment 1,820 2,145 325 Service Employment (Real Estate, Scientific and Technical, Mgt of Companies, Administrative and Waste Management, Education, Healthcare and Social Assistance, Arts/Entertainment, Accommodation and Food Svs, Other Svs) 3,111 5,503 2,392

Total Private 7,823 10,328 2,505 Total Government 3,976 4,252 276

Total, All Industries 11,799 14,580 2,781 Data Source: NM Department of Workforce Solutions, Economic Research and Analysis, Table D


MRCOG’s Socioeconomic Forecast for the region shows that the current economic slump will last at least through 2015, creating little demand for new housing development in the immediate future. However, between 2015 and 2025, Central Belen is expected to gain over 500 jobs, the vast majority of which will be in the service industries, including healthcare, social services, government, education and finance. If and when commercial and residential development of Rancho Cielo takes place, over 2,500 additional jobs are predicted to be created, vastly increasing the demand for new housing, both rental and homeownership, in that northwest area. Table 5.4: Projected Employment Growth, 2008 to 2025

Predicted Change in No. of Jobs, 2008 -‐ 2025

Area DASZ Basic Retail Service Total Belen Area 4155, 4166, 4167, 4172,

4173, 4174, 4175, 4176, 4181, 4182, 4183, 4184, 4185, 4186, 4187, 4191, 4192, 4201, 4202, 4203, and 4531

592 80 3312 3984


20 -‐4 538 554


4155 and 4201 534 130 1879 2543

West Side of Belen 4202 and 4203 119 64 179 362 East Side of Belen 4173 and 4192 3 -‐43 56 18 East of Belen (Rio Communities)

4611 and 4621 5 15 175 197

Southeast of Belen 4191 25 1 65 91 North of Belen (area between Belen & Los Lunas)

4166, 4167, 4171, 4172, and 4531

-‐104 -‐84 400 212

Data Source: 2035 Regional Forecast,Mid-‐Region Council of Governments (2010). Analysis conducted by Housing Strategy Partners. Note: "Basic" employment is defined as the sum of agriculture, mining, construction, manufacturing, transportation, communication, utilities, wholesale and military. "Service" employment includes finance, insurance, real estate, healthcare, government, and other services.

MRCOG’s 2035 Socioeconomic Forecast also provides predictions of household growth and housing unit increases from which HSP may derive housing keep-up demand in the Belen area. The Forecast predicts that for the total Belen area, the number of households will have grown 8% between 2008 and 2015, for a total of around 800 new households, most of which have already been accounted for by the time of this analysis in 2012. According to MRCOG, this slow growth will be followed by a population boom between 2015 and 2025, resulting in a 106% growth in households during that period, or a total of over 10,000 new households. As mentioned above, the accuracy of these predictions will depend upon the pace of economic growth, and housing needs will follow suit.


Table 5.5: Projected Household Growth Rates, 2008 to 2035

Geography DASZ 2008 to 2015 2015 to 2025 2025 to 2035 Belen Area 4155, 4166, 4167, 4172,

4173, 4174, 4175, 4176, 4181, 4182, 4183, 4184, 4185, 4186, 4187, 4191, 4192, 4201, 4202, 4203, and 4531

8% 106% 25%


7% 8% 13%


4155 and 4201 NA* NA* NA*

West Side of Belen 4202 and 4203 6% 137% 16% East Side of Belen 4173 and 4192 9% 13% 29% Southeast of Belen 4191 8% 9% 7% North of Belen (area between Belen & Los Lunas)

4166, 4167, 4171, 4172, and 4531

7% 17% 19%

East of Belen (Rio Communities)

4611 and 4621 2% 1% 5%

Data Source: 2035 Regional Forecast ,Mid-‐Region Council of Governments (2010). Analysis conducted by Housing Strategy Partners. * The Rate of Growth for Northwest Belen is too large to be expressed as a percent, since the area was virtually unpopulated in 2008 and is predicted to grow to over 12,000 households in 2035.

The vast majority of the more than 13,800 single-family units and more than 5,500 multi-family units projected by MRCOG to be added to the Belen area by 2035 are located in Rancho Cielo, the recently annexed planned development to the northwest of central Belen. If that development moves forward, MRCOG predicts there to be more than 10,300 new single-family homes and more than 3,800 multi-family homes in that area by 2035. Looking at central Belen, housing unit growth is projected to be more steady, with 141 single-family homes and 54 multi-family homes needed by 2025, and an additional 111 single-family homes and 281 multi-family homes needed by 2035. Housing growth on the west side of Belen is anticipated to be more rapid, with 504 single-family homes and 283 multi-family homes expected by 2025, and an additional 83 single-family and 145 multi-family homes by 2035. On the east side of Belen, growth will be slower in the near term, with only 98 single-family and 61 multi-family homes expected by 2025, but an additional 109 single-family and 314 multi-family homes needed by 2035. Generally speaking, MRCOG’s predictions for Belen proper (not including Rancho Cielo) are reasonable given the associated economic forecast. However, uncertainty about the future of the economy could impact these projections significantly and should be taken into account when determining how many housing units are needed to meet future demands. What is clear is that the City of Belen should strive to balance single-family and multi-family housing development as the economy and the housing market improves over the next decade,


recognizing the need for additional affordable rental housing in the wake of the recent recession. Table 5.5: Projected Housing Unit Increases, 2008 to 2035

Area

Single-Family Housing Unit Increases Multi-Family Housing Unit Increases 2008-2015 2015-2025 2025-2035 Total 2008-2015 2015-2025 2025-2035 Total

Belen Area 852 11599 1422 13,873 62 834 4609 5505 Central Belen 141 141 111 393 62 54 281 397 Northwest Belen (includes recent annexation)

185 9703 430 10,318 0 427 3399 3826

West Side of Belen 40 504 83 627 0 283 145 428 East Side of Belen 122 98 109 329 0 61 314 375 East of Belen (Rio Communities) 62 13 94 169 0 0 0 0

Southeast of Belen 82 101 85 268 0 0 3 3 North of Belen (area between Belen & Los Lunas)

220 465 197 882 0 0 420 420

Data Source: 2035 Regional Forecast,Mid-Region Council of Governments (2010). Analysis conducted by Housing Strategy Partners.

Belen Affordable Housing Plan – IMPLEMENTATION PLAN 87

SECTION VI: IMPLEMENTATION PLAN

What is clear from Belen’s unique demographic and housing needs is that improving housing opportunities in Belen will require a multi-pronged approach. Mainstream strategies such as creating income-restricted rental units, providing homebuyer subsidies, and rehabilitating the homes of low-income renters and owners will address some of the gap between incomes and housing costs. However, the needs of those with disabilities, market pressures on local rental stock and rehabilitation opportunities for Belen’s historic buildings mean that there is no “one size fits all” approach to providing affordable housing in Belen. Rather, as the following analysis and the recommendations in this plan illustrate, real estate development will only happen as part of a “ripple effect” of improving the city’s local development capacity, increasing the financial options for people seeking housing, creating a “mortgage ready” pool of potential homebuyers, improving the collaboration and effectiveness of the service delivery network for emergency and supported housing, and rehabilitating older and deteriorating homes. Approach This plan approaches the planning process in a three-step process. First, demographic, economic, and housing data is analyzed to determine the need for affordable housing according to income level and housing type. The next step is to undertake an Opportunities and Constraints Analysis. For the City of Belen Housing Plan, five organizing principles were considered:

• Funding • Capacity Building • Program Development • Real Estate Development • Regulatory Environment

From there, the analysis serves to shape the planning recommendations. To ensure that the planning process is meaningful and results in a document that is used to guide policy and program development, implementing strategies are provided for each recommendation. The implementation section of this plan presents the recommendations based on the immediate, mid-term and long-term capacity of the City of Belen to implement them; lead roles; and likely funding possibilities. Implementation Plan Matrix The Implementation Plan Matrix, Table 6.3, summarizes the recommendations, roles of partner agencies and potential funding sources to support the activities proposed in this plan. For more detail regarding implementation tasks, please refer to the narrative that follows the matrix.

Belen Affordable Housing Plan – IMPLEMENTATION PLAN

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Summary of Projected Needs In order to identify projected housing needs, several supply/demand factors are taken into consideration. This plan identifies two types of need: “Catch Up” which considers the current unmet needs and supply deficiencies in the community; and “Keep Up” need which considers job/population growth and projects future demand. Table 6.1 and Table 6.2 provide Five-Year Production Goals to meet projected housing needs for Belen, broken down by income level, housing type, tenure, and unit size. For more detailed analysis of these needs and the basis for the projection numbers, please refer to the Housing Needs Analysis in the preceding section of this plan.

Table 6.1: Housing Production Plan – Five-Year Goal

Housing Type Five Year

Production Goal (units)

Affordable Housing

Cost Emergency/Transitional Units* 3 - 4 < $303/mo Disabled/Senior/Frail Elderly Rental* 31 - 41 < $579/mo Rental Units for Renters with < 40% AMI* 83 - 110 < $579/mo Rental Units for Renters with 40 - 60% AMI** 25 – 33 < $809/mo Homeownership for Renters 40–60% AMI 0 n/a Rental Units for Renters at 60-80% AMI** 13 - 18 < $1,040/mo Homeownership for Renters at 60-80% AMI 5 - 6 < $217,981 Rental Units for Renters with 80-120% AMI 5 - 6 < $1,560/mo Homeownership for Renters at 80-120% AMI 5 - 6 < $290,568

Totals New Construction 208 - 276 Rehabilitation/Weatherization 131 - 174

Total Rehabilitation 131 - 174 NOTE: All affordability levels are calculated for a 3-person family unless otherwise noted. * 1-person family ** 2-person family

Table 6.2: Housing Production Plan by Unit Size – Five-Year Goal

Unit Size (BR)

Total 0-1 2 3+

Percent of Units 33% 39% 28% 100% Demand (low) 68 82 58 208

Demand (high) 91 108 77 276

City of Belen Affordable Housing Plan – IMPLEMENTATION MATRIX 89

Table 6.3: Implementation Plan Matrix

RECOMMENDATION Implementation Strategies Lead Partner(s) Timeframe

Funding S M L

1.0 - FUNDING

1.1 Create The City of Belen Affordable Housing Trust Fund.

1.1a: Implement “best practices” of publicly controlled affordable housing trust funds to develop a funding model for Belen. 1.1b: Create a line item for fund in the City’s budget that is tied to the policies and procedures for allocating the funding. 1.1c: Dedicate local funds to provide leverage for funding applications. 1.1d: Establish revenue streams to support fund.

City ✔

No funding required to set up; “seed” funding from City General Funds, transactional fees, lot sales, third-party “pass through” funds

1.2 Apply for third party funding currently not used in Belen.

1.2a: Consider working with a nonprofit technical assistance provider (RCAC, Enterprise Community Partners, etc.) to identify funds not used/maximized in Belen and link them to gaps in services and the priorities identified in the production plan (Table 6.2). 1.2b: Work with NM Mortgage Finance Authority to identify underused funds, prepare applications and create partnership(s) with service provider(s). 1.2c: Maintain an annual “Sources and Uses Report” for Belen and its housing partners to report funds used in the City and objectives accomplished.

City MFA, Nonprofit TA providers ✔ No outside funding

required

1.3 Invest local/public resources to expand affordable housing services in Belen.

1.3a: Apply CDBG funds to support housing activities and leverage additional funds. 1.3b: Establish contractual relationships with regional providers to administer programs that can’t be provided in-house. 1.3c: Consider providing funding to providers serving other needs in the housing spectrum.

City Nonprofit service providers ✔ City General Funds;

CDBG

1.4 Create capacity of local lenders to provide MFA, FHA, USDA mortgage products.

1.4a: Work with local lenders to access loan guarantee products and increase pool of “mortgage ready” buyers in Belen. 1.4b: Engage local lenders in local affordable housing planning processes, provision of services and housing development.

City Local lenders, MFA ✔

MFA (Mortgage Saver, Payment Saver, HERO, HELP) FHA (Sect 203 and other FHA) HUD (EEM), USDA (Sect 502)


RECOMMENDATION Implementation Strategies Lead Partner(s) Timeframe

Funding S M L

2.0 - CAPACITY BUILDING

2.1 Establish affordable housing expertise on the municipal level.

2.1a: Designate a staff person to be responsible for the City’s funding, outreach, and programming as related to affordable housing. 2.1b: Provide training for city employees about available housing services. 2.1c: Develop a reference guide of available housing services available in printed versions and posted on the City’s website. 2.1d: Create a City-sponsored housing event that connects Belen residents with services, incorporates other governmental jurisdictions, and private sector industries involved in housing production.

City

Regional service providers, other governmental entities, community institutions

✔ No outside funding

2.2 Provide technical assistance to identify gaps and improve service models.

2.2a: Engage partners in strategic planning activity to identify gaps in services, needs for technical assistance, and to coordinate project development. 2.2b: Provide seed funding and/or apply for grants to bring in TA providers. 2.2c: Identify “best practices” and create locally relevant model for service delivery.

City

Regional service providers, other governmental entities, community institutions, private sector

✔

City General Funds, Enterprise Community Partners, HAC, RCAC, in-kind resources

2.3 Establish partnerships between private/public/nonprofit sectors.

2.3a: Bring together nongovernmental services providers and development entity(ies) in a collaborative strategic planning process to coordinate project development and funding applications for private, state, and federal funds.. 2.3b: Align capacity of existing services providers with private sector interests (ie. provide homebuyer training to employees of local companies). 2.3c: Develop a MOU between the City of Belen and private and nonprofit partners that clearly identifies goals and priorities and incentivizes collaboration. 2.3d: Engage local lenders, realtors, builders, insurance agents, title companies to teach a portion of homebuyer training classes.

City

Local service providers, other governmental entities, community instit., private funders, realtors, builders, insurance agents, title co.

✔ City capital improvement funds, private donation, in-kind resources


RECOMMENDATION Implementation Strategies Lead Partner(s) Timeframe Funding S M L

3.0 - PROGRAM DEVELOPMENT

3.1 Prioritize the needs of Belen’s very low-income residents.

3.1a: Work with HUD and SPC provider(s) to maximize the number of rental vouchers available in Valencia County and ensure that vouchers are distributed efficiently to all eligible populations. 3.1b: Participate in annual homeless counts to determine extent of need for expanding homeless services in Belen. 3.1c: Reserve a percentage of units in any City-supported housing development for low-income residents with special needs. 3.1d: Work closely with agencies that provide social support services, job training and educational opportunities to ensure that these services are paired with housing provision as part of a comprehensive effort to reduce the number of people living in poverty situations.

City

Local service providers of special needs housing, NMMFA, government agencies, community instit. El Camino Real Housing Authority

✔ ESG, SHP, Shelter Plus Care, HOME, Land Title Trust Funds

3.2 Create a citywide homeownership education and counseling program.

3.2a: Conduct outreach to low-income renters. 3.3b: Partner with private sector, community institutions, and public schools to develop and implement curriculum on community-wide level. 3.3c: Design foreclosure prevention program and increase access to HUD and FHA resources. 3.2d: Partner with an established regional nonprofit to implement homebuyer training program including DIY repair, weatherization, foreclosure prevention, etc.

City

El Camino Real Housing Authority, Regional nonprofit homebuyer agencies, local lenders, community institutions, public schools

✔

City General Funds, HUD counseling funds, HARP, HAMP, PRA and FHA insurance options

3.3 Develop a home rehabilitation/energy efficiency improvement program, including retrofits to improve accessibility.

3.3a: Collaborate with provider(s) to maximize current weatherization activities funded through the Energy$avers Program. 3.3b: Consider “low-cost” weatherization program. 3.3c: Establish an owner-occupied rehabilitation program. 3.3d: Work with local lenders to establish acquisition/rehabilitation funding.

City, NMMFA

Regional nonprofit rehab providers, local lenders, community institutions, local building community

✔ Energy$avers, HOME, USDA, City General Funds, private foundations


RECOMMENDATION Implementation Strategies Lead Partner(s) Timeframe*

Funding S M L

4.0 - REAL ESTATE DEVELOPMENT

4.1 Support multifamily development.

4.1a: Conduct due diligence on city-owned land to identify site(s) appropriate for development of multi-family, tiered-income housing. 4.1b: Work with private landowners to identify parcels that are appropriate for development, as identified in the Station Area Plan and in other developable areas for swaps of city-owned land. 4.1c: Provide water for housing development that is priced affordably and meets other objectives of infill and redevelopment.

City

LIHTC developers, regional nonprofit builders, community instit., private landowners, funders, realtors, builders, HUD, USDA

✔

CDBG planning grant, HUD planning grant. See Appendix D for a complete list of possible funding sources.

4.2 Initiate a housing development program that ties affordable housing provision to economic redevelopment efforts.

4.2a: Conduct a market study to determine feasibility and marketability of redevelopment with a residential component. Focus on the feasibility of redeveloping the former police station, station area and other downtown sites. 4.2b: Establish a redevelopment plan and identify official redevelopment districts. 4.2c: Release RFP seeking development partner(s) and consider local preference option. 4.2d: Use economic development tools to support redevelopment housing.

City

Local service providers, other governmental entities, community instit., private funders, realtors, builders, HUD, USDA, MRCOG

✔

Local funds, CDBG, bond funds, TIDs, New Market Tax Credits, historic preservation tax credits, GO bonds, revenue bonds.

4.3 Prioritize rehabilitation of existing units.

4.3a: Support ongoing efforts of USDA and other property owners to rehabilitate existing properties. 4.3b: Consider pilot project to rehabilitate four (4) City-owned homes for re-sale. 4.3c: Identify rehab provider to develop program for rehabilitating homes and structures acquired through the City’s Structural Nuisance Ordinance.

City, NMMFA

Rehab provider(s), local banks, private funders, realtors, builders, HUD, USDA

✔ Local funds, CDBG, historic preservation tax credits, HOME house by house


RECOMMENDATION Implementation Strategies Lead Partner(s) Timeframe*

Funding S M L

5.0 - REGULATORY ENVIRONMENT

5.1 Create regulatory template/ordinance that complies with all rules and regulations of the Affordable Housing Act. See Appendix B.

5.1a: Use projected needs identified in this plan as basis for determining income/lot mix. 5.1b: Adjust definition of “Very Low Income” to 60% AMI. 5.1c: Establish sales pricing requirements to reflect incomes of individual buyers, rather than an averaged income range. 5.1d: Specify security instrument to secure equity created by the difference in sales price and actual value. 5.1e: Create administrative policies for subordination of City-held mortgages.

City NMMFA ✔ No outside funding required.

5.2 Develop policies and procedures for administering the Belen Affordable Housing Trust Fund, including competitive process for accessing funds.

5.2a: Develop regulation tied to fund. 5.2b: Assign staff person as fund’s administrator. 5.2c: Establish oversight committee to make funding recommendations. 5.2d: Designate the approved uses for recycled assets and program income. 5.2e: Establish a permanent affordability period to protect subsidy. 5.2f: Define eligible income tiers.


5.3 Consider an overlay zoning district or PUD for Belen’s downtown or other appropriate redevelopment site.

5.3a: Establish a working group to promote downtown redevelopment and revitalization in Belen and begin community planning processes. 5.3b: Define purpose, goals and objectives of the district as part of the update of the Belen Comprehensive Plan and establish compliance with state regulations. 5.3c: Apply for funding to initiate design process to establish architectural standards, energy-efficiency goals, density requirements, and neighborhood context. 5.3d: Conduct public outreach campaign to educate landowners, residents and elected officials about the application of the district.

City

Local service providers, MRCOG, community instit., private landowners, funders, realtors, builders, HUD, USDA

✔

CDBG planning grant, HUD planning grant. See Appendix D for a complete list of possible funding sources.


RECOMMENDATION Implementation Strategies Lead Partner(s) Timeframe* Funding S M L

5.0 - REGULATORY ENVIRONMENT (cont.)

5.4 Create incentives for builders to produce affordably priced homes.

5.4a: Require that development proposals for City-sponsored affordable housing incentives meet all eligibility criteria set out in Belen’s future affordable housing ordinance. 5.4b: Provide water, fee waivers, density bonuses, re-zoning approvals, and discounted or free land to support proposed projects that meet the City’s established criteria for affordable housing including. For large-scale tracts assembled through annexation and rezoning, the City may set an additional affordability requirement. 5.4c: Streamline regulatory review for projects meeting the established criteria for affordable housing. 5.4d: Consider local preference option in procurement/incentive process.



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Section 1 – FUNDING There are several sources of funding that may not be currently accessible in Belen or at least not used to their maximum benefit. Some funding opportunities, such as MFA-sponsored lending products and construction funding may not be currently maximized or used at all. This plan proposes which sources are most likely to be viable to fund the City’s proposed affordable housing activities, to be passed through to nonprofit partners, or to be applied for directly by the nonprofit community. Table 6.4: Funding - Opportunities/Constraints Opportunities Constraints • City of Belen owns land, facilities,

infrastructure and is willing to leverage its resources to bring reinvestment, development into the community

• Belen qualifies for rural assistance funds

• HOME rehab, USDA guarantee loans have potential for more use

• Motivation to use funds on downtown and neighborhood revitalization projects, as per Main St streetscape, renovation of La Hacienda and Railrunner Area Plan

• Lack of funding mechanism for administering local funds to support affordable housing activities

• Low lender participation in loan products assisting first-time, low- to moderate-income homebuyers

• No financial infrastructure on local gov’t level and service provider level to bring funds into community and apply them to projects and/or programs

• Few local non-governmental agencies that can access outside housing funds

• Low level of housing program development in both the government or private sector


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1.1 Create the City of Belen Affordable Housing Trust Fund.

Discussion: One of the most versatile and effective tools for the ongoing support of affordable housing is the creation of a dedicated municipal fund, often referred to as a housing trust fund. This mechanism is vested with a municipality and/or county government and is regulated by a set of specific policies and procedures that both defines the uses of the fund (such as down payment assistance programs, energy efficiency retrofits and infrastructure assistance for affordable housing development) and the solicitation, application and allocation process through which the funds are managed. Belen has the option to provide a revolving loan fund or other funding mechanism to help the city, nonprofit and private sector partners reach their housing goals.

This mechanism can also serve as a repository for funds generated from affordable housing activities. For instance, program income from the sale of public land and/or the repayment of a homebuyer subsidy (such as when an assisted buyer sells their home), is repaid into the fund and recycled to the next qualified grantee. With proper structuring, the fund can become a portfolio asset that builds over time and allows the leveraging of other outside resources.

The City of Belen can create this fund through an ordinance that describes the range of eligible uses and a procedure soliciting potential projects. A competitive solicitation process ensures that only the highest performing activities will be funded, increasing the leverage of public resources, as well as the efficiency and innovation of new programs. The fund can also be used to address the gap in third-party funding sources. For instance, tightening underwriting guidelines have increased the closing costs affiliated with FHA loans, a major source of mortgage funding for low and moderate income households. Through a trust fund, the City can assist buyers with cash at closing, that would then be secured through a legal instrument, such as a lien or soft-second mortgage, and eventually repaid into the fund when the buyer sells the home.

Implementation Strategies 1.1a: Implement “best practices” of publicly controlled affordable housing trust funds to develop a funding model for Belen. In New Mexico, Albuquerque’s Workforce Housing Fund and Santa Fe’s Affordable Housing Trust Fund provide examples of affordable housing funding mechanisms allocated by a public entity. Both were started with a “seed” amount and are tied to an ongoing source of revenue (a general obligation bond in Albuquerque and land sales revenue and fees in lieu in Santa Fe) and have a leverage requirement that grantees must meet in order to be eligible to receive funds.


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1.1b: Create line item for fund in the City’s budget that is tied to the policies and procedures for allocating the funding (see Recommendation 5.2 for details regarding this regulation). The City should consider provisions that require certain funds be repaid so that the City can build a long-term asset, as well as provide a leveraging opportunity to bring in additional funds.

1.1c: Dedicate a portion of local funds to provide leverage for funding applications.

1.1d: Establish revenue stream(s), such as sale proceeds of city property and/or rehabilitated homes, recaptured subsidy, fees, etc. to support the fund.

1.2 Apply for 3rd party funding not currently used or maximized in Belen.

Discussion: It is likely that there are sources of funding accessible in Belen, but not currently used to their maximum benefit. Given the few housing services providers in the city, it is likely that there is not much of an opportunity to coordinate services or to realize any efficiencies of scale related to coordinating their services. Because Belen is considered “rural,” there are funding sources that may be available directly from the federal funding agency or nonprofit rather than being passed through the state, either USDA (Rural Housing); Enterprise Community Partners; Housing Assistance Council (HAC); Rural Community Assistance Council (RCAC); or the NM Mortgage Finance Authority (all HOME, ESG, MFA programs and other HUD funds). Another prospect for the City of Belen to consider is reserving a majority of units in any proposed housing development for renters with special needs, making the project eligible for a pre-development grant from the MFA up to $75,000. At this point in time, City staff is poised to take advantage of emerging redevelopment momentum to access any available resources.

Implementation Strategies

• 1.2a: Consider working with a nonprofit technical assistance provider (RCAC, Enterprise Community Partners, etc.) to identify funds not used or maximized in Belen and link them to gaps in services needed and the priorities presented in the production plan (Table 6.1). Use local/public funds to provide leverage to raise these funds which may include: ESG, HOME funds, Land Title Trust Funds, Dallas Home Loan Bank Funds.

• 1.2b: Work with the NM Mortgage Finance Authority to identify underused funds, prepare applications for a pre-development grant for special needs housing and create partnership(s) with service provider(s).


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• 1.2c: Maintain an annual “Sources and Uses Report” for Belen and its housing partners to report funds used in the City and objectives accomplished. This will be an important planning tool to maximize funding applications, coordinate activities, and enhance transparency.

1.3 Invest local/public resources to expand affordable housing services in Belen. Discussion: There is an opportunity for the City to invest local resources strategically to not only expand available housing services in Belen but to also leverage additional funds into the community. As discussed in the previous section, the City may apply for CDBG funds to support affordable housing development and rehabilitation activities, as long as the national objectives governing CDBG funds are met. If the City’s development partner(s) are able to access funds not available to or greatly restricted in use, then the CDBG funds can provide an important leveraging piece to the overall development budget. In Belen, there is very little nonprofit and/or government capacity to provide housing services. The City might enter into a contractual or collaborative agreement with a regional service provider, several of which are located in nearby Albuquerque. The funding would be tied to a specific scope of work and administered according to performance goals established in the City’s agreement with the provider. Using public funds to contract with a nonprofit organization or private sector service provider can make more efficient service delivery without certain governmental constraints. Also, an outside provider can provide expertise in the areas currently lacking in Belen, such as comprehensive homebuyer training, financial fitness counseling, and real estate development. Most importantly, an outside partner can provide community-wide services and engage a variety of partners. In Belen, these partners may include other governmental entities, community institutions, the public schools, and the real estate, construction and lending industries. As discussed earlier in this plan, emergency shelter beds are limited to victims of domestic violence and the only public housing services provided in Valencia County are rental vouchers. Currently, El Camino Real, located in Socorro administers the vouchers but is not accepting applications from Valencia County. None of the subsidized apartment complexes in Belen offer supported rental units for very low-income renters with special needs and/or disabilities, despite the area’s high rates of disability. This would indicate an opportunity to use funds geared toward housing the homeless, those at risk of being homeless, and special needs renters, and to expand services available to these populations.


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• 1.3a: Apply CDBG funds to support housing activities in Belen and to leverage third-party resources.

• 1.3b: Establish contractual relationships with local and/or regional providers based on a specific scope of services to administer portions of the City of Belen’s affordable housing programs that cannot be provided with in-house staff.

• 1.3c: Consider funding providers serving other needs in the housing spectrum, such as homeless services or transitional living assistance or homebuyer assistance that will greatly expand the scope of housing services available in Belen.

1.4 Create capacity of lenders to provide MFA, FHA, USDA mortgage products. Discussion: Currently none of the lenders in Belen offers any form of third party loan products geared toward low- and moderate-income homebuyers which greatly lowers the buying power of Belen’s pool of potential homebuyers. Competitive third party mortgages can alleviate some of the financial barriers, such as lack of an adequate downpayment, that often prevent low- and moderate-income renters from becoming homebuyers. Low cost loans can offer below market rates and be paired with down payment assistance programs. Because these loan products also require homebuyer training and education, they help make better-educated and more sustainable homeowners who are less likely to default. For the lenders, the advantage is obvious – an opportunity to create a lower risk loan portfolio. However, another advantage is that these programs enhance the capacity of potential borrowers growing the lender’s prospective market of clients. Lenders in Belen are more likely to participate if they are also engaged in the affordable housing planning and development processes. For instance, the City may recruit members of the lending committee to participate on advisory boards or to teach portions of homebuyer training and financial fitness classes. If local lenders are unwilling or unable to participate in these programs, the City might consider recruiting regional lenders that are willing to process loans in Belen.


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• 1.4a: Work with local lenders to access third party mortgage products through MFA, FHA and USDA guarantee programs and grow the pool of “mortgage ready” borrowers.

• 1.4b: Engage local lenders in local affordable housing planning processes, provision of services and housing development to increase their participation in special lending programs offered by MFA, FHA, and USDA, as well as partnering with the City in its future housing development and rehabilitation efforts.


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Section 2 – CAPACITY BUILDING

This plan calls for strategically organizing housing services and future housing development based on the highest need and greatest potential return. For instance, the City may consider several service models that also build the capacity of non-governmental entities to provide services. One option is to build the capacity of an existing nonprofit partner through a contractual relationship with the City in which the nonprofit provides services in return for an annual grant. Or the City may consider a professional services contract with a regional nonprofit to meet affordable housing needs in the immediate term, such as homebuyer training services and/or affordable housing project development. Another opportunity for Belen is to take advantage of different sources of technical assistance funding that specialize in serving rural areas and building the capacity of the governmental, nonprofit and private sectors. Table 6.5: Capacity Building - Opportunities/Constraints Opportunities Constraints • Past construction and rehab of several

LIHTC, USDA multi-family projects • Political will on the part of City to

develop housing programs • Domestic violence shelter is

functioning and would like to expand • Potential for partnership between local

employers, local institutions and regional provider of homebuyer training and counseling services

• High need levels and relatively low cost market

• Affordable housing expertise is limited on local level

• Habitat (and/or self help model) may not be viable based on past performance and debt of regional affiliate that is now defunct

• Other than homeless services, no other housing services are provided by a locally-based provider

• Public housing services are limited to vouchers administered from Socorro office (that is not currently accepting applications from Valencia County)

• No active housing development, homebuyer training operation, or supportive housing services


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2.1 Establish affordable housing expertise on the municipal level. Discussion: If achievement of affordable housing goals is to become a reality, the City will need to assign the role of housing coordinator to one of its existing staff positions. This person will be the City’s official point of contact for housing-related issues, administer local funds and be responsible for outreach concerning affordable housing programs and events. A locally based staff person is able to coordinate services by bringing in a regional nonprofit housing counseling trainer to provide homebuyer training classes, as well as local, private sector partners to complement the curriculum. Without a local presence, once the out of town trainer is gone, it is unlikely that potential homeowners will pursue the many steps to becoming homeowners. Likewise, residents in a crisis situation may not be able to follow up with a regional provider to access services without a local point of contact. An in-house expert who is responsible for implementing the City’s development objectives will also have better leverage within the local development and financing community. Involving local builders and lenders provides a more widespread economic benefit, as well as creating capacity for future development. Another important function of the City is to prepare, revise and implement future affordable housing regulation and development and it is essential to have a designated staff person fulfilling these duties. Additionally, the City should provide training to its entire administrative staff to increase general knowledge about housing issues and how to refer other members of the community to services. A reference guide of available housing services, printed in-house and available on the City’s website is easily produced. Another outreach effort that the City should consider is a regularly scheduled housing fair that brings together local and regional providers, lenders, realtors, large employers and other governmental agencies to provide information to the residents of Belen.

Implementation Strategies 2.1a: Designate a staff person to be responsible for the City’s funding, outreach, and programming as related to affordable housing. 2.1b: Provide training for city employees about available housing services. 2.1c: Develop a reference guide of available housing services available in printed versions, in Spanish, and posted on the City’s website.


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2.1d: Create a City-sponsored housing event that connects Belen residents with services, incorporates other governmental jurisdictions, and private sector industries involved in housing production and provisions of services.

2.2 Provide technical assistance to identify gaps in service provision and to improve service models. Discussion: As discussed earlier, there are few affordable housing services provided in Belen. Some residents are able to access services provided by regional agencies located in nearby Albuquerque, but many are unlikely to do so. As one regional provider explained it, “We serve Belen but we are the best kept secret in town.” Clearly, there is a need to identify gaps in services and coordinate provision across the spectrum of housing needs. Another big gap in Belen is that public housing services are limited to housing choice vouchers, the capacity for which is maximized for Valencia County. In other words, a resident of Belen who applies for a voucher can use the voucher in Socorro County where there is excess capacity due to high turnover. After one year, the voucher holder may port the voucher to Valencia County. Additionally, past models of housing production that work on a small scale – namely “self-help” – may not be viable in Belen due to problems with the previous efforts. A first step to addressing these gaps is to explore low-cost options for receiving technical assistance in Belen with particular emphasis on organizations that specialize in rural areas. These organizations include, but are not limited to: Enterprise Community Partners, Rural Community Action Coalition (RCAC), Housing Assistance Council (HAC), NeighborWorks Training Institute, HUD place-based training and E-learning opportunities. These trainings can focus on improving technical proficiencies, service provision, public outreach, organizational capacity building and fund raising. Some areas in which the City may consider bringing in technical assistance providers include: • Community needs assessments (RCAC, Enterprise) • Capacity building, hands-on training, interagency collaboration (Enterprise, RCAC, HAC) • Green building, energy efficiency retrofits (Enterprise Community Partners “Green

Communities,” HAC) • Development financing (Enterprise, RCAC, HAC) • Procurement of professional services (RCAC, HAC) • Housing counseling (NeighborWorks, HUD) • Real estate management (NeighborWorks, HAC) • Asset Management (MFA)


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Implementation Strategies 2.2a Engage nonprofit providers, other governmental entities, community institutions and the private sector building, real estate, and lending communities in a strategic planning activity to identify and prioritize gaps in the capacity to provide services. These gaps are further identified and discussed in the Programming Section of this Implementation Plan. 2.2b Provide seed funding and/or apply for grants to bring in technical assistance providers according to identified priorities. 2.2c With assistance from technical assistance providers, identify “best practices” approach that is locally relevant to Belen. Outcomes include: providing housing services, building and preserving affordable housing, redevelopment of the City’s historic core, prioritizing infill, supporting job growth, and allocating funding accordingly.

2.3 Establish partnerships between private, nonprofit and public sector housing services providers, lenders and community institutions. Discussion: At the core of all strong affordable housing approaches are strong partnerships. Probably the greatest advantage to developing strong public/private/nonprofit partnerships is that multiple resources can be accessed and a variety of housing needs can be served within the scope of a single development project. For instance, one entity may play the role of developer while the others provide services once the facility is built. As an example, the newly built Village Sage Apartments project in Santa Fe was funded through Low Income Housing Tax Credits, overseen by an established builder of affordable housing, the Community Housing Trust, while extended case management and operating services are managed by the NM Coalition to End Homelessness. The finished project is providing services to a range of residents – from homeless transitioning out of homelessness as well as those very-low income people in need of permanent supportive housing. Additionally, nonprofit providers are uniquely positioned to bridge the differences between the public and private sectors by offering services that aren’t profitable enough for the private sector to pursue and being less encumbered by regulation than the public sector. Having a non-governmental partner will help maximize access to funding sources that the public entities aren’t eligible for, as well as offering services in a less political, more community-based environment. Furthermore, a nonprofit developer will typically reinvest its profits from mixed income housing development in higher quality homes and the deep subsidization of homes serving low and very low-income households.


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Private sector businesses also play a significant role in leveraging additional services and funding and may be able to carry out certain activities more cost effectively than nonprofits. For instance, private developers may be able to develop homes more quickly and less expensively than nonprofits due to their asset base, economies of scale and inherent efficiency. Lenders, realtors, insurance agents, and title officers can be utilized to provide components of homebuyer training curriculum. Often these professionals will also teach a portion of the course on a pro-bono basis, both as a contribution to the overall effort but also to gain access to potential clients. Coordination among public/private/nonprofit entities can also provide access to larger funding sources, and those not available to individual nonprofits because of scale. This approach has proven successful with transitional and homelessness service providers who can collaborate on larger federal grants, such as the Continuum of Care application, coordinated by the New Mexico Coalition to End Homelessness on a statewide scale.

Implementation Strategies 2.3a: Bring together nongovernmental services providers and development entity(ies) in a collaborative strategic planning process to coordinate real estate development, programming design, and funding applications for private, state, and federal funds. 2.3b: Align capacity of existing services providers with private sector interests (ie. provide homebuyer training to employees of local companies). 2.3c: Develop a MOU between the City of Belen and private and nonprofit partners that clearly identifies goals and priorities and incentivizes collaboration. 2.3d: Engage local lenders, realtors, builders, insurance agents, title companies to teach a portion of homebuyer training classes.


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Section 3 - PROGRAM DEVELOPMENT There are several programmatic needs not being met in Belen identified in previous sections of this plan. Emergency shelter services are limited to those fleeing situations of domestic violence. Another overall need is for collaboration and referral between service providers. While services are being provided adequately in one area of the spectrum of housing need, they are not necessarily linked to the next. For instance, some renters in subsidized or income-restricted rental units do not have access to any financial fitness services to help them become homeowners, and they find themselves without savings, poor credit ratings and general unawareness of their potential to become homebuyers. Existing homeowners are likely to live in mobile homes if their home is less than thirty years old and in possibly substandard housing if they live in an older home. In either case, they may have need for energy-efficiency retrofits and rehabilitation. Finally, there are several conditions unique to Belen – a higher percentage of the population has disabilities, low participation rates in labor force, 27% of the population living under the poverty line, older housing stock – that are not being addressed through current program delivery systems. Table 6.6: Program Development - Opportunities/Constraints Opportunities Constraints • Historical and architectural integrity of

older housing stock • History of Belen as a manufacturing

center, center of railroad operations, agricultural producer

• Local employers are interested in participating in homebuyer training, counseling programs as employee recruitment and retention tool

• Relative parity between incomes and private market housing prices

• Belen’s location enables access to housing services based in Los Lunas and Albuquerque

• Potential future acquisition of single-family property through property nuisance ordinance

• The only emergency shelter services located in Belen are for victims of domestic violence

• No specific subsidy programs, housing support services designed for Belen

• 0% vacancy rates in subsidized rental projects indicate high demand for units

• Low education levels, lack of high paying jobs, issues with credit challenge the ability of current renters to maintain stable housing situations and/or become homeowners

• Shelter Plus Care funds have been not used comprehensively in the past to benefit all eligible recipients


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3.1 Prioritize the housing needs of Belen’s very low-income residents. Discussion: The population of Belen generally has very low incomes. Over one-fourth of Belen’s residents live below the national poverty level, double the national rate. Sixty-six percent of Belen’s residents are classified as having low or moderate-incomes and are eligible for federal housing support. An unusually high percentage of households (26%) are extremely low income, earning less than $12,750 per year. An unusually small percentage of households (16%) earns between 80 and 120% AMI, a prime category for entry-level and/or workforce housing. Coupled with an economy that doesn’t have any major employer expansions in its immediate future and a high reliance on lower-paying jobs, the housing needs for many of these low-income residents are likely not being met adequately. While several subsidized rental properties are located in Belen, they primarily serve those earning 50 – 60% of the area median income. Public housing authority services are limited to rental assistance vouchers and the administering agency, El Camino Real, located in Socorro is not currently accepting applications from Valencia County. Shelter Plus Care vouchers are administered through Valencia County Counseling Services but historically used solely to assist resident clients of the program, rather than being marketed to the community at large. Given this, there is a high need in Belen to identify the gaps in housing related services for those with very low-incomes and prioritize these needs in technical assistance, housing development and renovation. These priorities include: 1) comprehensive emergency shelter services (including day services and case management); 2) transitional housing for those needing longer term assistance and have special needs (homeless youth, domestic violence victims, and mental health disabilities) and 3) increasing the supply of accessible housing in Belen for very low-income renters.

Implementation Strategies 3.1a: Work with HUD and SPC provider(s) to maximize the number of rental vouchers available in Valencia County and ensure that vouchers are distributed efficiently to all eligible populations. 3.1b: Participate in annual homeless counts to determine extent of need for expanding homeless services in Belen. 3.1c: Ensure that any new housing development supported by the City reserves a percentage of its units to serve the needs of very-low income residents (<40%AMI). This might be


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accomplished with a layered subsidy model of development in which different funding sources are directed at specific needs. For instance, rather than relying on single source funding where a standard income limit defines eligibility such as with standard tax credit project, a layered model allows for more one project to serve a variety of needs. 3.1d: Work closely with agencies that provide social support services, job training and educational opportunities to align housing provision with efforts to reduce the number of people living in poverty situations.

3.2 Create a citywide homeownership education and counseling program. Discussion: This recommendation addresses the need to grow the potential customer base for homeownership, as well as providing support services for current homeowners. In many cases potential LMI buyers must be cultivated for years to save the necessary down payment and repair or build credit that will allow them to access competitive mortgage financing. The single most important objective for Belen’ future homebuyer program is to create a pipeline of income-qualified “mortgage ready” buyers. Having adequately educated and qualified buyers not only makes for more sustainable homeownership situations, but often times, construction financing will require having units presold or leased to commence building. Eventually, the homeownership program should be expanded to include foreclosure prevention counseling and access to financial products such as reverse mortgages or other products to improve the long-term affordability of current housing situations. The success of Belen’ homebuyer counseling program is reliant on connecting trained homebuyers with financial mechanisms. This includes sources of downpayment and/or closing costs assistance that can take the form of a grant or a no-interest, no-payment loan that is often forgivable after a set period of time or due upon selling the home. These products help low and moderate-homebuyers overcome some of the biggest financial hurdles of becoming homeowners but also help them qualify for mortgages. Another component to homebuyer counseling services is ensuring that the homebuyers who are created through the process are sustainable. In other words, they assume mortgages they can afford; they follow basic budgeting practices to keep debt levels low; they set aside maintenance funds or learn basic skills in order to improve the energy efficiency of their homes and conduct basic repairs; and they understand the warning signs of foreclosure and act proactively in the case that their ability to pay their mortgage is jeopardized. While Belen has a relatively low rate of foreclosures compared to the rest of Valencia County, the generally low incomes of its population suggest that its residents are more vulnerable to economic stresses.


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Foreclosure prevention assistance would be beneficial in shoring up the community’s economic stability.


• 3.2a: Conduct outreach to the current residents of Belen’ subsidized rental projects to enroll participants in financial fitness training, savings/budget plans, and homebuyer training and counseling with the long term goal of creating homebuyer capacity and demand for homeownership units.

• 3.2b: Partner with the private sector lending community, credit counseling agencies, small business developers, community institutions and the public schools to provide homeownership education and counseling services, donations and/or financing. These may include: regularly scheduled classes, outreach events, online training, foreclosure prevention counseling and a program for the local high school curriculum.

• 3.2c: Design a foreclosure prevention program and partner with for profit and nonprofit providers to implement services, including assistance with loan modification or refinancing, dealing with “underwater” mortgages, assistance for unemployed homeowners and other FHA-insurance options. Funding resources and programs offered by HUD include: Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP), Principal Reduction Alternative (PRA) as well as others offered by HUD.

• 3.2d: Partner with a regional nonprofit homebuyer services provider to implement homebuyer training and counseling program and to design program components to meet Belen’s unique needs such as a lease-to-own program, rural self-help program and/or acquisition/rehabilitation program. Include additional homeownership curriculum including: DIY maintenance, “age in place” modifications, foreclosure prevention and reverse mortgage financing.

3.3 Develop a home rehabilitation/energy efficiency improvement program, including retrofits to improve accessibility. Discussion: Belen has a higher percentage of older housing stock, which generally tends to suffer from long term deferred maintenance and poor energy efficiency. Rehabilitation, repair and weatherization of existing homes can help improve home values, the overall condition of


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housing stock, revitalize neighborhoods, and provide a pipeline of housing for first time LMI homebuyers. Lower-income renters and homeowners often live in homes that don’t fully meet their needs because of substandard conditions and disproportionately high energy costs, growing family size and/or disability. For this reason, rehabilitation and renovation provides another avenue to achieving long-term affordability. Currently, rehabilitation efforts in Belen are not coordinated and not well marketed to potential customers, according to service providers. The City has an opportunity to play a central role in making these services comprehensive – from basic weatherization to complete rehabilitation – and available on a citywide basis. There is likely to be widespread public support for a comprehensive rehabilitation effort in Belen as residents repeatedly expressed dismay at the current condition of many neighborhoods and the downtown commercial areas, citing overgrown weeds, vacant buildings, and other signs of general disrepair as blights on the community. Weatherization services are provided in Belen by Central New Mexico Housing Corporation. By replacing windows, repairing heaters and installing new appliances and ultimately, making homes more energy and water efficient, participants save money on utility bills. Homeowners and renters that qualify for the program can receive up to $6,500 in weatherization measures. Another option is for the City to design a “low cost” weatherization program which can be implemented with a very small investment per home, ranging from $300 to $3,000. Costs can be further reduced through the use of volunteer materials, labor, and self-help assistance. Often these programs are supported through schools’ building trades programs, youth development programs, or job training programs. They require oversight by a licensed contractor and some degree of administration, but are highly effective in improving long-term affordability by reducing short term energy costs. In Belen, if the City were to provide a small amount of seed funding and initiate collaboration among probable partners – Department of Labor, high school building trades programs, youth development/job corps providers, and private sector builders – the program could likely become self-sufficient within a few years. Owner-occupied rehabilitation programs focus on substantial repairs, including new roofs, foundations, windows, doors, floors, electrical and plumbing systems, as well as space additions, at a cost of approximately $50,000 per home, with a maximum of $75,000. The NMMFA offers HOME-funded rehabilitation grants and the USDA’s Rural Housing program provides grants up to $7,000 for seniors below 50% of median income for home rehabilitation. Additionally, many existing homeowners may be assisted with accessibility retrofits to increase their ability to live independently, particularly for elders who want to “age in place,” but who live in an older dwelling. There is also an opportunity for the City to initiate a buyer-based rehabilitation program designed to encourage homebuyers to purchase and rehabilitate existing homes. A single


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mortgage loan is provided to finance both the acquisition and rehabilitation of the property. The mortgage amount is based on the projected value of the property with the work completed, and is fully insured by HUD. Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations which manage the rehabilitation process. Section 203(k) loans can be combined with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs. While Belen lacks any participating lenders or contractors in the 203(k) loan program, this type of program could easily be paired with a general homebuyer training and counseling program as an option for potential buyers. This would provide an immediate supply of homes to buy, in lieu of longer term, future housing development.

Implementation Strategies 3.3a: Collaborate with Central New Mexico Housing Corporation to maximize current weatherization activities funded through the Energy$mart Program in Belen. 3.3b: Consider a “low-cost” weatherization program, in which basic services are provided to make homes more energy-efficient. 3.3c: Establish a comprehensive owner-occupied rehabilitation program that focuses on accessibility and “age in place” measures. 3.3d: Work with local lenders to establish an acquisition/rehabilitation program for Belen.


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Section 4 – REAL ESTATE DEVELOPMENT Affordable housing development and rehabilitation offers the opportunity to create high quality, energy efficient housing that is often better suited for low and moderate-income households because it implies lower long-term housing costs. Housing development and rehabilitation also presents the opportunity to both create and leverage subsidy from third party sources. Another positive ripple effect is the overall neighborhood benefit of crime reduction and improved streetscapes in areas where properties are newly built or rehabilitated. Also, construction activity has the potential to provide much needed economic growth in Belen’s real estate and construction sectors. Table 6.7: Real Estate Development - Opportunities/Constraints Opportunities Constraints • Quoted construction costs are

reasonable ($50-$75/sq ft) • Land costs are variable but affordable

according to location • There is ample available infill land to

absorb future development needs • Railrunner stop provides potential for

transit-oriented development • City Planning and Zoning open to

rezoning for Multi-Family use • Undeveloped subdivision with

infrastructure • Nuisance structure ordinance may

result in acquired properties • City owns prime downtown parcels • Major potential for future job growth • Newly hired staff has capacity to do

inspections

• Limited production building capacity for single family and rental development

• No incentives for building affordably-priced housing on private land

• Aging infrastructure in city core, including outdated sewage treatment plant

• Large parcels of undeveloped land held by small number of local landowners

• Flood plain issues • Recent annexation areas (near the

airport and on the western edge of I-25, north of downtown) draw resources away from downtown and infill opportunities

• Very small percentage of city land area dedicated to multi-family use


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4.1 Support multi-family, tiered-income rental development. Discussion: Over the last decade Belen has experienced very little housing development. Most of what’s been provided is rental housing built by national tax credit developers serving renters in the 50–60% AMI income range. With housing choices limited to tax credit apartments, upward pressure is put on rents and home prices of existing housing, limiting access to affordably priced housing for low and moderate-income residents. Limited development activity also keeps construction costs high due to a lack of economies of scale for labor and materials, further undermining the capacity of local builders to provide housing. The Low Income Housing Tax Credit Program remains one of the most successful mechanisms to leverage private investment for the development of low-income rental housing. However, in some areas of New Mexico where nonprofit capacity is limited, private LIHTC developers do not attempt to achieve greater affordability than the target rents required by HUD, usually serving the 50-60% range of AMI. Due to the large number of households in Belen whose incomes fall significantly below this level, privately developed LIHTC projects are likely not to be providing ample housing opportunities for very low-income renters, especially for those with disabilities and special needs. Likewise, there are observed needs for supportive and transitional housing that are not currently being met in Belen. The Renaissance Model of LIHTC, first pioneered by the Colorado Coalition for the Homeless and successfully implemented in several communities in New Mexico, offers a solution to both transitional homeless and very low-income housing needs. The core aspects of the Renaissance Model include integrating supportive and transitional housing with units targeting very low-income working families in an integrated setting with on-site social services. Likewise the developments themselves are characterized by superior design standards that rival the highest quality market rate developments, while integrating green design standards to help lower the overall impact of the project as well as lifecycle operation costs. Also critical to this model are modified accessible units for the elderly and people living with disabilities. At the core of a successful Renaissance Model LIHTC project is a nonprofit driven development process. The benefits of having a community-serving organization driving the development process are evident in three primary ways: diminished profit motive for development; ability to leverage a wider range of subsidy sources; and the integration of social services into the development. As is the case with recent Renaissance developments in New Mexico, the nonprofit managing general partner typically invests in higher quality construction and energy efficiency features because they lack a profit motive for development. Similarly, many times the nonprofit developer dedicates a portion of their developer’s fee back to the project.


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Integral to this model is tiered rent levels that target the actual housing needs in a given community. The ability to achieve lower rents than the typical 60% threshold is achieved through the aggressive layering of subsidy sources, which in New Mexico include HOME construction funds, HOME rental development loans, FHA 542c construction financing, MFA’s EnergySavers loan fund, the Land Title Trust Fund in addition to local sources and the core LIHTC funds.

Implementation Strategies 4.1a: Conduct due diligence on all publicly owned land to determine the most feasible site(s) for the development of multi-family, tiered-income housing. The analysis should consider issues such as: topography, access to existing infrastructure, connectivity to surrounding community amenities (including transportation, shopping areas, schools and health care), neighborhood context, and development cost. Consider rezoning appropriate parcels as needed and use zoning approvals as an incentive to encourage affordably-priced homes. See the feasibility analysis in the land use section of this plan for an initial sites analysis. 4.1b: Work with private landowners to identify parcels that are appropriate for development, as identified in the Station Area Plan and in other developable areas for land swaps of city-owned land. 4.1c: Provide incentives such as water, donated or discounted land, infrastructure, and other public facilities for local private sector builders and/or regional nonprofit builders who commit to meeting affordable housing pricing targets, infill and redevelopment objectives.

4.2 Initiate a housing development program that ties affordable housing provision to economic redevelopment efforts. Discussion: Belen is currently considering its housing, economic development and community redevelopment objectives in the light of creating a comprehensive economic development vision for the city. One of Belen’s assets is its historic downtown and its surrounding residential areas. In light of the recommendations of the Station Area Plan and other recent Main Street beautification and improvement projects, City staff and elected officials are poised to leverage all opportunities. Given the traditional, mixed-use layout of Belen’s downtown, the addition of residential second stories on existing commercial buildings may be an appropriate use achieved through redevelopment. The proximity of the Railrunner station and the walkable and urban character of downtown is likely to attract commuters, retirees, non-place based workers and young entrepreneurs who seek a quality of life that provides a less suburban living experience with easy access to open spaces.


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Another possible opportunity may lie in developing live/work housing which has the potential to leverage economic development resources. Live/work housing tends to appeal to younger people, especially those engaged in entrepreneurial and creative efforts. In Belen, this may help retain more young people as long-term residents and may recruit entrepreneurial residents into the community. Improving housing choices in Belen is also likely to positively affect the efforts of larger employers to recruit and retain their higher paid employees. These employees don’t necessarily need affordably priced housing but aren’t able to find high quality and/or newly constructed homes in Belen and commute from nearby communities or eventually find jobs elsewhere. With the new hospital breaking ground shortly and future commercial development planned for the airport area and Rancho Cielo, it is necessary for the City to take a proactive role now to preserve, promote and enhance Belen’s current housing stock.

4.2a: Conduct a market study to determine feasibility and marketability for redevelopment efforts that contain a residential component, including adding second story residential units on existing commercial buildings. The study should consider both rental, for sale, and live/work housing opportunities. Focus on the feasibility of redeveloping the former police station, station area and other downtown sites in the Becker Ave/5th street area. Identify other citywide sites that may be suitable for new construction, rehabilitation and/or redevelopment. 4.2b: Establish a redevelopment plan and identify official redevelopment districts as part of the Comprehensive Plan update. The plan should address, at a minimum: a) effective sales pricing policy and appropriate rents, particularly for privately-operated rentals; b) subsidy provided through public resources (infrastructure, land, and cash); c) any regulatory changes required (zoning, setbacks, etc) and/or elements included in the future overlay district; and d) ensuring adequate water supplies and infrastructure service. 4.2c: Release RFP seeking development partner(s) from the private and nonprofit building sectors and consider local preference option. 4.2d: Use economic development tools to support redevelopment projects that provide housing such as TIDDs, New Market Tax Credits, historic preservation tax credits, general obligation bonds, the designation of redevelopment district(s), and revenue bonds.

4.3 Prioritize rehabilitation of existing units. Discussion: Residents, elected officials, staff, and other community advocates repeatedly expressed concern at the condition of many structures in Belen, the high vacancy rates and the


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general unkemptness of some neighborhoods. Several recent rehabilitation efforts of subsidized apartment complexes have demonstrated the value of renovating current units, both to provide higher quality housing that better meets the needs of current residents but also as a means to stabilize and revitalize surrounding neighborhoods. The USDA apartments on Court Street serve as an example of a high quality rehabilitation project, as does La Hacienda, a 20-unit complex renovated by YES Housing that relied on a public/private partnership and the co-mingling of several funding sources. The USDA intends to continue its rehabilitation program in Belen and the City could facilitate these ongoing efforts to the extent possible. The City may consider a very small-scale pilot project to launch its rehabilitation efforts by renovating and selling the four single-family homes that it currently owns. There are many potential benefits to doing this. A small-scale project may be initiated sooner than a larger, effort described in the preceding recommendation and a successful rehabilitation project done efficiently and demonstrating high quality design would be invaluable from a public outreach perspective. It could provide the City fundraising leverage for future projects, as well as providing a model for public/private building partnerships. Furthermore, the small scale of the project may enable more innovative financing options and allow for alternative ownership structures such as putting the lots in trust to further bring down the sales prices of the homes or doing a “lease-to-own” agreement. Providing current renters with an opportunity to move into homeownership may provide motivation for other renters to clean up their credit, participate in homebuyer training and become “mortgage ready,” thus providing a pipeline of buyers for future projects. The City has an opportunity to be an active rehabilitation provider through its newly enacted Structural Nuisance Ordinance. This ordinance is being aggressively applied by the land use department and gives the City the ability to place liens on properties for the costs of remediation and upkeep. This could theoretically lead to the City taking possession of single-family properties. These homes could then be rehabilitated and sold to income eligible homebuyers and the proceeds used to support a dedicated housing trust fund and further rehabilitation activities. Ongoing rehabilitation could be funded from the proceeds at sale.

Implementation Strategies 4.3a: Support ongoing efforts of the USDA and other property owners to rehabilitate existing rental properties, improve accessibility, update amenities and provide a community-wide asset. 4.3b: Consider a pilot project to rehabilitate the four (4) City-owned single family homes and resell to qualified homebuyers.


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4.3c: Identify rehabilitation partner to develop program for rehabilitating homes and structures acquired through the City’s Structural Nuisance Ordinance.


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Section 5 - REGULATORY ENVIRONMENT In general, Belen’s zoning regulations do not appear to place a significant barrier or financial burden on the development of affordable housing. While Belen’s development-related administrative fees are on par with other communities, there are aspects of the subdivision process and design standards which could be more efficient and less costly for developers. Likewise, Belen is dependent on permitting and inspection through the Construction and Industries Division; however, recently hired staff is certified to do inspections. The City also lacks any regulatory framework to guide the proper administration and design of affordable housing programs. The regulation should specify the qualifications and requirements of grantees, long-term affordability requirements, application procedures, and general monitoring and compliance provisions. Success of this ordinance as a regulatory mechanism will rely on the proper design and implementation of administrative procedures. Table 6.8: Regulatory Environment - Opportunities/Constraints Opportunities Constraints • Community support and enthusiasm

for improving housing quality and range of choices

• Flexibility on the part of Planning and Zoning and policy makers to allow for new construction through rezoning

• Residential nuisance ordinance which could help stabilize neighborhoods and potentially be aligned towards affordable housing needs

• Slightly more expensive subdivision design standards and upfront costs during the plat procedure

• Very little land currently designated for Multi-Family Zoning

• Current affordable housing ordinance limits multifamily projects to 25 units which could disadvantage LIHTC projects in Belen


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5.1 Create a regulatory template that complies with all rules and regulations of the Affordable Housing Act. Discussion: The first priority for a set of regulatory template and/or set of ordinances is to comply with all the rules and regulations of the New Mexico Affordable Housing Act. The regulation must function to monitor City and/or public housing authority-sponsored projects that use public resources to provide affordable housing and/or services. As discussed in Appendix X, there are several factors that are essential for Belen’s affordable housing regulation and procedures for implementation. As the current regulation is finalized and put into place, it should be used as a model that incorporates lessons learned, actual market performance, and refinements of administrative procedures in the future ordinance(s).

Implementation Strategies 5.1a: Use the projected needs identified in this plan as a basis for determining the income/lot mix in each proposed housing development. The purpose for doing this is to encourage mixed-income, tiered subsidy projects that reflect the actual needs in the community. 5.1b: Adjust the definition of “Very Low Income” up to 60% AMI and below to compensate for Belen’s low income levels and to improve the long-term sustainability of the residents in this income range. 5.1c: Establish sales pricing requirements to reflect the incomes of the individual buyers rather than an average income range to ensure that buyers in the high end of the range aren’t over-subsidized and that those in the lower part of the range are not overly cost-burdened. 5.1d: Specify security instrument used (via a specified calculation) to secure the equity created by the difference between sales price and actual value of the property. Make sure terms are also established for refinance, payoff and lien position. 5.1e: Create clear administrative policies for the subordination of City-held mortgages (if any) to allow homeowners to access their equity without jeopardizing the financial interests of the City.

5.2 Develop policies/procedures for administering the Belen Affordable Housing Trust Fund and establish a competitive process for accessing public funds.


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Discussion: While all public resources in Belen are extremely limited in the current economic climate, there is an opportunity to leverage the City’s existing resources through the creation of the Affordable Housing Trust Fund. Eligible uses for the housing fund should be defined broadly and reflect the needs identified in this plan. For instance, a high priority for funding should be meeting the needs of the homeless and those very low-income renters with special needs. Another high priority is building the capacity of existing renters to become homeowners, through homebuyer training, financial fitness counseling and access to below market loan products tailored to meet the needs of a first-time homebuyer. The process for allocating the funds needs to be competitive and transparent and regulated through an established set of procedures. Priorities may be established for each funding cycle to ensure that funding is distributed to meet the entire spectrum of needs. Another consideration is to design the fund so that it contains provisions for recycling and leveraging assets, rather than using it exclusively for one-time expenditures. For instance, if funds are used to secure down payment assistance mortgages, then when the subsidized buyer sells their home, they pay back their loan, replenishing the fund and the subsidy is recycled to the next qualified buyer. The City benefits because the fund becomes a portfolio asset that can then be used to leverage additional funding into the community.


• 5.2a: Develop specific regulation that is tied to the affordable housing trust fund. The accompanying regulation to the fund must consider: 1) how to “seed” the fund; 2) dedicate ongoing revenue sources (for example: City general funds, percentage of a general obligation bond, repayment of liens, payments-in-lieu of, third-party pass through funds, etc.); 3) identify eligible uses for the fund; 4) define a “qualified grantee” and income levels served by funded activities; 5) establish a basis for allocation (usually an adopted planning document that includes a needs analysis); 6) implement public/advisory component to provide oversight for funding decisions; and 7) determine leverage requirement.

• 5.2b: Assign a staff person as the fund’s administrator to handle the application process, allocation, and reporting of uses of funds.

• 5.2c: Establish an oversight committee, preferably made up of members of the public who represent expertise in housing, building, design, and administration to establish the criteria for funding, consider applications, and make funding recommendations to the Governing Body for final approval.


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• 5.2d: Designate the approved uses for recycled assets and program income (e.g. funds paid back through repayment of a subsidized loan must be used to support another subsidized loan for an income-qualified homebuyer).

• 5.2e: Establish a permanent affordability period on moderate-income and workforce units so that the subsidy isn’t lost if the qualified buyer sells the home.

• 5.2f: Define specific income tiers eligible for assistance for both rental and homeownership as described in Appendix B.

5.3 Consider an overlay zoning district or PUD for Belen’s historic downtown or other appropriate redevelopment site(s). Discussion: One of Belen’s greatest assets is that many of its residents have long-standing and multi-generational ties to the community. Founded in 1740, the community evolved from an agricultural center to a strong mercantile and trade-based economy, further boosted with the arrival of the railroad in the 1880s. Belen became the location for one of the West’s major railroad hubs and today, the historic Harvey House is one of the region’s premier museum sites. This history is reflected in the brick and adobe buildings that are still standing in the city’s downtown district and surrounding residential areas. Unfortunately, many of these buildings are vacant and/or dilapidated and most of the city’s more vibrant commercial businesses are located on Reinken and Main Street. However, there are indications that the area is prime for redevelopment, as indicated by recent efforts to establish new businesses and the proximity of the Railrunner Station. One of the tools for invigorating a comprehensive revitalization effort may be in the creation of an overlay zone, redevelopment district or PUD. This will be a key component to attracting private investment to the redevelopment efforts. Importantly, the parameters for the district should reflect performance-based criteria, rather than specific metrics regarding street widths, setbacks and other regulatory requirements. In other words, if the applicant demonstrates improved walkability due to the interaction of the property with the streetscape, the actual number of feet that encompass the setback distance are not as important. There are several steps to establishing this type of district. First, the purpose of the district must be clearly defined. In many communities, overlays are used to protect or preserve an asset such as water supplies or historic character, etc. Next, the areas that make up the district should be mapped depending on the resources that relate to achieving the purpose of the district. Specific rules need to apply to the identified district that also clearly relate to the purpose of the district.


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The regulation must offer clear guidance to the property owners and potential development applicants, as well as to the regulatory body charged with making decisions related to the district. Importantly, the zoning must apply uniformly over all properties in the district. Finally, a clear process for administering the district can be incorporated into the existing subdivision or site plan review process and approved either by a municipal board or zoning official, depending on the scale of the proposal. Because of its small town character and pattern of property ownership, it will be essential for the City of Belen to make a concerted effort to include developers, affected property owners, and other residents in clarifying issues, development and application of the overlay district. Public involvement will also ensure that the regulation reflects the community’s priorities and results in increased awareness and compliance. Several communities in New Mexico currently employ overlay districts and PUDs. Albuquerque’s Huning Highlands neighborhood is regulated by an overlay district that is focused on preserving the area’s historic character, architecture and walkability. The overlay is also intended to encourage revitalization and commercial redevelopment as long as it fits in with the traditional urban form of the district. Another overlay district that may provide an interesting example for Belen is that of Santa Fe’s Airport Road. In this area, commercial development happened on a parcel by parcel basis, the result being a hodge podge of small businesses, gas stations and fast food restaurants. The overlay is intended to not only improve the area’s pedestrian environment and public safety, but also to give the area a sense of identity and to improve the overall quality of the streetscape.


• 5.3a: Establish a working group to promote downtown redevelopment and revitalization in Belen and begin community planning processes.

• 5.3b: Define the purpose, goals and objectives of the district (PUD) or overlay zone as part of the update of the Belen Master Plan and ensure that it complies with state regulations.

• 5.3c: Apply for funding to initiate design process to establish architectural standards, energy-efficiency goals, density requirements and preservation of neighborhood context.

• 5.3d: Conduct an extensive public involvement campaign to educate landowners, residents and elected officials about the application of the district.


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5.4 Create a system of regulatory incentives for builders to produce reasonably priced homes. Discussion: Many successful models for affordable housing found in the region include provisions that incentivize private developers to participate in affordable housing programs. Often, these incentives are paired with “sticks” or requirements to provide affordably priced housing in order to receive the benefit, such as inclusionary zoning. However, in Belen, building volume is too low to be realistically tied to an inclusionary zoning requirement. That makes providing incentives all the more important. Because the affordable housing market segment is generally a productive pool of potential buyers, having received counseling and training as well as verified loan qualification, a developer may be better able to secure construction financing. If the City can sweeten the deal with an additional set of incentives, this may tip the balance to spur affordable housing development when other types of building are too risky in the current economic climate. Additionally, while increasingly competitive, applications for LIHTC projects are still being funded and there is capacity in the regional private sector building community to put together successful proposals. The City can play an important role in the application process given that local participation, which may be represented by incentives, garners additional points for the proposal.


• 5.4a: Establish criteria for development proposals to be eligible for City-sponsored affordable housing incentives (income levels served, % of units, etc.) and application process, all of which should be consistent with the policies and procedures governing the Affordable Housing Trust Fund.

• 5.4b: Provide fee waivers, density bonuses, infrastructure development, rezoning as needed, and discounted land to support proposed projects that meet the City’s established criteria for affordable housing. For large-scale tracts assembled through annexation and re-zoning, the City may set an additional affordability requirement.

• 5.4c: Streamline regulatory review and upfront costs for projects meeting established criteria for affordable housing.

• 5.4d: Consider local preference option in procurement/incentive process.

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1. REVIEW!OF!DRAFT!PLAN! ! ! ! ! 10:35!–!10:50!!2. DISCUSSION!:!CONSTRAINTS/OPPORTUNITIES! 10:50!–!11:30!

a. Financing!b. Capacity!c. Programming!d. Real!Estate!Development!e. Regulatory!

!3. DISCUSSION!–!Data!Needs/Contacts! ! ! 11:30!–!NOON!

a. Real!Estate,!Construction!!b. Local!Banking!c. Employer!Assisted!Housing!d. Landowner!Focus!Group!e. Sites!Analysis!

!4. WRAP!UP/NEXT!STEPS! ! ! ! ! NOON!

a. Integrate!Comments!into!Draft!b. Analyze!Survey!Results!c. Submit!Final!Draft!to!MFA!!

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!Contact!Info:[email protected]!505/795:4010!

[email protected]!505/467:8340!

[email protected]!505/362:8294!

!

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Agenda July 11, 2012

Belen Affordable Housing Advisory Group

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A copy of the Agenda can be obtained from the Office of the Interim City Manager. Please be advised that all public meetings are video and audio recorded.

CITY OF BELEN REGULAR COUNCIL MEETING 100 South Main Street, Belen New Mexico 87002

City Of Belen Council Chambers January 22, 2013

6:00 PM AGENDA

I. Call to Order-The Regular Meeting of the Belen City Council, State of

New Mexico, and County of Valencia to be held on Tuesday, January 22, 2013 at 6:00 PM in the Council Chambers at City Hall located at 100 South Main Street in the City of Belen, New Mexico 87002.

II. ROLL CALL III. PLEDGE OF ALLEGIANCE IV. APPROVAL OF AGENDA V. APPROVAL OF MINUTES: January 7, 2013

VI. PUBLIC COMMENT-3 MINUTE PRESENTATIONS: Please listen for timer if more time is needed for presentation, please ask to be scheduled on the next agenda

VII. PRESENTATIONS 1) Belen High School Marching Band Proclamation: Rudy Jaramillo, Mayor 2) Presentation of a Proclamation to Sgt. Jose Natividad: Rudy Jaramillo,

Mayor 3) Employee of the Fourth Quarter: Mary Aragon, Mayor Pro-Tem 4) Presentation of Belen Affordable Housing Plan: Alexandra Ladd and

Daniel Werwath, Housing Strategy Partners 5) Employee Service Awards: Mary Lucy Baca, City Manager

VIII. PUBLIC HEARING

1) Proposed amendment to Ordinance 2012-02, Appendix A; Rate and Fee Schedule to lower the City’s sewer commodity rate: Marcia Amaro, Collections Supervisor

IX. DISCUSSION 1) Proposed amendment to Chapter 13.12 of the Belen Municipal Code,

Utility Rates and Charges, to add a section for inaccessible water

meters: Marcia Amaro, Collections Supervisor 2) Proposed amendment to Chapter 13.12 of the Belen Municipal Code,

Utility Rates and Charges, to add a section for additional meters to be used for fire suppression, landscaping, and livestock: Marcia Amaro, Collections Supervisor

3) Amendment to Ordinance 2008-05-Economic Development Plan: Steve Tomita, P & Z Director

4) Proposed Ordinance for Vacant or Foreclosed Structure Registration: Steve Tomita, P & Z Director

X. DISCUSSIONS WITH ACTION REQUIRED

1) Street Sweeper Contract Award: Leona Vigil, Deputy Clerk 2) Approval or disapproval of the award recommendation for Legal

Services: Leona Vigil, Deputy Clerk 3) Approval or disapproval of the proposed Abatement Resolution

referencing 1023 W. Chavez: Steve Tomita, P & Z Director 4) Approval or disapproval of the proposed Abatement Resolution

referencing 1025 W. Aragon: Steve Tomita P & Z Director 5) Approval or disapproval of proposed Resolution to participate in the Mid-

Region Rural Transportation Improvement Plan. (“TAP”)

XI. INFORMATIONAL ITEMS 1) City Manager’s Report 2) Communication From City Council

XII. ADJOURNMENT Respectfully Submitted, /s/ Mary Lucy Baca, City Manager, CMC

If you are an individual with a disability who is in need of a reader, amplifier, qualified sign language interpreter, or any other form of auxiliary aid or service to attend or participate in the hearing or meeting, please contact Leona Vigil, Deputy Clerk at 505-966-2740 at least one week prior to the meeting or as soon as possible. CC: Mayor and City Council Valencia County News Bulletin KARS Radio

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Appendix E:

Constraints Analysis with Reference to Recommendation

Constraint Addressed in Recommendation Financing Lack of funding mechanism for administering local

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Real Estate Development Limited rental development

City of Belen

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