The Office of Housing at the New Mexico Department of Workforce Solutions will distribute $120 million for housing and homelessness projects across the state, Governor Michelle Lujan Grisham announced Tuesday. The funds are intended to expand affordable housing, reduce homelessness, and improve public safety.
This investment is part of a broader $140 million allocated over the past two years from the general fund, Government Results and Opportunity (GRO) Fund, and capital outlay appropriations. According to the governor, “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. When we face a challenge of this magnitude, we must take an ‘all the above’ approach.”
Initial allocations target projects in both Albuquerque-Bernalillo County and Las Cruces-Doña Ana County metropolitan areas, based on legislative intent and readiness to use funds by June 30, 2026. Future funding rounds will focus on site readiness and innovative housing solutions.
Funding sources for these projects include $110 million in general funds appropriated in 2025 for various housing programs; $16.1 million in GRO funds from 2024 for statewide homelessness initiatives; $5 million for local government grants to address homeless encampments; and $13 million in capital outlay from 2025 for statewide housing efforts.
Planned distributions feature more than $80 million directed toward Albuquerque-Bernalillo County area projects, over $11 million for Las Cruces-Doña Ana County, more than $13 million for other regions in New Mexico, and $7.8 million supporting families experiencing homelessness through McKinney-Vento programs at public schools in Albuquerque, Las Cruces, and Santa Fe.
NMDWS Cabinet Secretary Sarita Nair said: “We know what works to address the complex issues around housing and homelessness, and we need to invest more in those proven strategies. We know that building more housing makes housing more affordable, that preventing homelessness is more cost-effective than shelter, and that transitioning people into stable housing requires wrap-around support and thoughtful interventions. Today’s investments double down on exactly these approaches.”
Officials expect these investments to create or support over 1,500 affordable units; add another 1,500 shelter beds with navigation services; provide more than 150 transitional units for people leaving shelters; fund prevention programs assisting upwards of 3,500 families with rapid rehousing or home repair; as well as increase street outreach efforts.
The Office of Housing will work with local governments, developers, and service providers as project agreements are finalized. Additional requests for proposals are expected within a month.
In 2025, NMDWS expanded its responsibilities to include oversight of the Office of Housing as part of its role managing New Mexico’s public workforce system.
