Politics
Las Cruces Inclusionary Zoning Ordinance Matches Albuquerque Requirements for New Housing Projects
Developers building 20 or more units in Las Cruces must now reserve 10 percent of homes for households earning under 80 percent of area median income, the same threshold used in Albuquerque.
How we reported this
Las Cruces city council passed an inclusionary zoning ordinance on June 15 that applies the same 10 percent affordable unit set-aside to new residential projects of 20 units or larger. The rule covers both rental apartments and for-sale homes inside the city limits and takes effect for permits filed after August 1.
The update forms part of the mayor's 2026 housing element review, which responds to Dona Ana County building permit data showing 1,240 new units approved in 2025. City staff compared draft language directly with Albuquerque's existing ordinance before final adoption.
Daily costs for Las Cruces households
Renters searching near New Mexico State University or along Lohman Avenue will see the first projects under the rule reach the market in 2027. The ordinance defines qualifying households as those earning no more than $52,000 annually for a family of four, based on 2025 HUD income limits for the Las Cruces metropolitan area. Local advocates note that the 10 percent requirement mirrors Albuquerque's current standard and exceeds the voluntary guidelines still used in Santa Fe.
Property tax records from the Dona Ana County assessor show the median assessed value of a Las Cruces single-family home reached $248,000 in 2025. The policy does not alter property taxes directly but requires deed restrictions that keep designated units at below-market rents or prices for 30 years.
Timeline and enforcement steps
City planning staff will begin reviewing compliance during site plan checks starting in September. Developers may pay an in-lieu fee of $45,000 per required unit if they demonstrate that on-site construction is not feasible, with the fee deposited into the city's housing trust fund. The first annual report on units produced under the ordinance is scheduled for release in March 2027.
Budget documents approved in May allocate $180,000 for two additional planning positions to administer the program. Enforcement remains with the city's code compliance division, which already handles similar deed-restriction monitoring for federal HOME-funded projects.