Critical Investments Made for Affordable Housing Developments
ALBUQUERQUE—Tonight, City Council approved more than $9 million for two key Sol Housing developments: Somos and Farolito Senior Community.
Somos, located near Central and Louisiana, is receiving three awards from two separate grants: $1 million in American Rescue Plan Funding and more than $5.1 million in HOME funding from the U.S. Department of Housing and Urban Development, which were awarded by the City through a competitive RFP process in 2023 and 2024. The mixed-use and mixed-income housing project will create 70 new housing units, including 59 affordable units and commercial spaces.
The Farolito Senior Community will also receive $3 million in ARPA Funding awarded in 2024. Located in the East Gateway Neighborhood at Central and Eubank, the community is currently under construction and will feature 82 affordable housing units for seniors.
“We’re making strategic investments to confront Albuquerque’s housing crisis and deliver real solutions for families and seniors in need, including folks living on fixed incomes,” said Mayor Tim Keller. “These funds ensure that over 100 households will have access to safe, affordable housing.”
“Funding for both projects are expected to help offset the ongoing increases in construction costs and recent tariffs,” said Deputy Director of Health, Housing and Homelessness Joseph Montoya. “We are dedicated to making each of these developments come to life, and look forward to the difference they will make in our community."
According to the National Association of Home Builders, inputs to residential construction saw price increases of just over 30% since January 2021. Proposed tariffs on imported building materials like steel and aluminum can negatively impact multifamily construction by further increasing costs and potentially delaying or canceling projects, leading to reduced housing supply and potentially impacting rent growth and affordability.
“Sol Housing has been invested in the city through our housing development over the last 32 years, and we are pleased to continue our commitment to quality, stable housing for all. Farolito is well under construction, and Somos is shovel-ready, and construction will commence in May. These funds serve as the last hurdle to completing two much-needed projects for the city of Albuquerque,” said Felipe Rael, Sol Housing’s Executive Director. “While we anticipated construction increases last year and thus applied for additional funds, recent tariffs have added another layer of uncertainty.”
Construction is expected to wrap up on Farolito in April 2026 and on Somos in December 2026.