Las Cruces City Council Passes Zoning Update Under State Housing Density Rules, Setting Local Permit Fees

The Las Cruces City Council voted 6-1 on July 9 to amend its zoning ordinance and match the state-mandated density targets in the 2025 Housing Density Initiative. The change raises the allowed units per acre in designated corridors from four to six and directs staff to process permits within 90 days instead of the prior 120-day average.

The update follows the state Department of Finance and Administration's June distribution of implementation guidelines to all municipalities above 50,000 residents. Las Cruces, with a 2025 population of 113,000, joins the group required to report quarterly compliance data starting October 2026.

Application to Daily Housing Costs

Residents seeking new apartments will see the first effects in permit-related fees collected by the city's Planning and Zoning Division. The ordinance sets a base fee of $1,850 per unit for projects under 20 units, a figure drawn from the 2026 city budget line item for development review. Homeowners in the Alameda corridor can expect construction activity notices to increase as builders submit applications under the faster timeline.

Local advocates note that the fee structure mirrors the one adopted by Santa Fe last March but differs from Albuquerque's model, which adds a sliding scale based on project height. The Las Cruces version does not include that variable and instead applies a flat rate across approved zones.

City records show the 2026 community development budget allocates $420,000 for additional staff hours to handle the expected rise in applications. The same document projects 35 new multi-unit projects by the end of 2027 if the 90-day processing target is met.

Staff will begin accepting applications under the revised rules on September 1. Quarterly reports to the state will track the number of units permitted and the average review time, with the first submission due in January 2027.