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NM Gov announces $120 million in recent housing funds to start reaching communities

8/21/2025

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BY: PATRICK LOHMANN
Courtesy of Source NM
Picture
A homeless encampment in Española, pictured in April 2024. Gov. Michelle Lujan Grisham on Tuesday announced the state this month will begin sending more than $120 million in funding to help make a dent in New Mexico’s affordable housing and homelessness crisis. (Photo by Patrick Lohmann / Source NM)
New Mexico Gov. Michelle Lujan Grisham announced Tuesday that housing funds the state Legislature approved this year will soon leave state coffers as agencies try to address an affordable housing and homelessness crisis here.

Between the last two legislative sessions, the Legislature has dedicated more than
$300 million to various housing-related measures at different agencies, including revolving loans for builders, down-payment assistance and anti-homelessness programs. That figure includes $140 million lawmakers approved this session. 

In a news release Tuesday, the governor said that the Office of Housing within the New Mexico Department of Workforce Solutions will distribute $120 million of that funding beginning this month. 

“These investments prioritize solving New Mexico’s housing crisis through focused investments in affordable and attainable housing, support for prevention, and proven solutions to the challenge of homelessness,” the governor said in a statement. “When we face a challenge of this magnitude, we must take an ‘all the above’ approach.”
​

According to the news release, the funding includes: 
  • more than $80 million for housing and homelessness projects in the Albuquerque area 
  • more than $11 million for housing and homelessness projects in the Las Cruces area
  • more than $13 million for housing projects in other parts of New Mexico 
  • $7.8 million for projects to support students experiencing homelessness at public schools in Albuquerque, Las Cruces and Santa Fe

According to recent estimates, the state lacks more than 32,000 housing units. Rents and homelessness have increased far beyond the national average in recent years, especially in Albuquerque, the state’s biggest city. 

The newly created Office of Housing, which
was transferred to DWS shortly after the session, is overseeing the spending, according to the news release. DWS Secretary Sarita Nair said the funding will go toward “proven strategies” for tackling the housing crisis.

That means focusing on building more housing, preventing homelessness and ensuring that people who move into homes after living on the street have “wrap-around support and thoughtful interventions,” she said in the news release. 

The governor’s office expects the initial round of funding will result in the creation and support of more than 1,500 affordable housing units, more than 1,500 shelter beds, more than 150 transitional housing units for people leaving shelters and prevention programs to help more than 3,500 families avoid falling into homelessness. 

​It will also support street outreach with support services for people who live on the streets, according to the news release. 
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