About 11,000 people head to work in Uptown every day, but only about 100 can afford to live there. That imbalance has lingered for decades.
On Thursday, Sept. 25, Mayor Tim Keller said the city will finally move forward with Uptown Connect, a $120 million project that has been stalled for 27 years. The development will add 239 apartments on land the city bought nearly three decades ago with the goal of building housing close to jobs.
“Our team was shocked when we learned that around 10,000 people commute to Uptown daily but only about 100 people can afford to live there,” said Lawrence Klein, an ABQ RIDE planner who has worked on the project for 13 years.
The project will replace the underused Uptown Transit Center with two apartment buildings. Of the 239 units, 203 will be affordable housing renting for $750 to $850 a month, according to Rick Davis, president of Family Housing Development Corporation. The development will also include 19,000 square feet of shops and restaurants, a dog park and underground parking.
City Chief Administrative Officer Samantha Sengal joked that she hoped to “lobby for the Puptown dog park” as her contribution to the project.
Roberto E. Rosales / New Mexico News
Taxpayers paying more than advertised
City officials have highlighted the $25 million federal grant. But that’s not the full story of what taxpayers are paying.
Public funding makes up about $36 million, or 30% of the project’s cost.
ABQ RIDE is putting in $26.1 million, most of it from a $25 million federal RAISE grant, plus $500,000 from a 1998 federal grant and another $500,000 from the Transportation Improvement Program. The City Council also approved $125,000 in local funds.
The city’s housing department is adding $10 million from Workforce Housing Trust Funds, state legislative dollars and Community Development Block Grant money.
“Our investment is going to guarantee that 203 units will be affordable,” said Gilbert Ramirez, director of the Health, Housing, and Homelessness department.
Chad Rennaker, CEO of Palindrome Communities, said his company will cover the remaining $84 million using a mix of funding sources.
Klein said the financing includes private equity and loans, along with tax credits from the New Mexico Mortgage Finance Authority and tax-exempt bonds from Bernalillo County.
“Probably half of the private side comes from private sources loans. And then there’s the Fed,” Klein said, referring to federal tax credit allocations to the state.
Rennaker called it “probably one of the most complicated projects that I’ve ever seen.”
Roberto E. Rosales / New Mexico News
Complex ownership and construction timeline
The city bought the land in 1998 with federal funds, according to Transit Director Leslie Keener. The original funding required a partnership with private developers to build housing there.
But the project hit many obstacles, Keener said. “This project hit wall after wall after wall,” Keener said. The delays included studies, contractor searches and a COVID-19 pause.
The development has multiple owners because it combines public and private funding. A limited partnership will own the affordable housing to attract tax credit investors, while Palindrome will own the market-rate apartments and commercial space.
Bernalillo County will keep the land and lease it to the developers. Palindrome’s construction company will build the project and manage it after completion.
Construction is expected to start by mid-2026, with apartments ready in 2028. Architects have completed about 60% of the designs and expect building permits by year-end, Keener said.
The new transit center will continue serving major bus routes every 15 minutes, some of the city’s busiest, according to Keener. Upgrades will include digital arrival screens and improved waiting areas. Keener expects transit usage to rise 40% once the development opens.
“This is going to be one of [the few] true transit-oriented developments that we can celebrate,” Rennaker said.
Questions about developer oversight
Palindrome has faced legal and tenant issues that raised questions about city oversight of public money.
Last October, the company paid $87,500 to settle a lawsuit over its Los Ranchos development, after a judge ruled in May that the village approved the project without proper public meetings. Palindrome continued construction during the legal fight.
Tenants at other Palindrome properties have complained about maintenance problems and rent increases that displaced longtime residents.
Despite these concerns, Bernalillo County Manager Cindy Chavez praised the company.
“Your tenacity and your leadership have been incredible,” she said.
Tackling the housing shortage
The project targets Albuquerque’s shortage of 20,000 to 25,000 housing units. Statewide rents have risen 60% over seven years, and homelessness has jumped 87%, both more than double the national rate, according to Health Care for the Homeless.
“Homelessness will only be solved when we ensure access to housing that people can actually afford,” said Rachel Biggs, the Health Care for the Homeless’s chief strategy director.
“I cannot think of a better location in Albuquerque to provide affordable housing for employees working in the retail and service industries. Marrying the development to a transit hub where Uptown Connect residents can access locations around Albuquerque is ideal for this type of development,” Davis said. “All these different interests – housing, transit and jobs – come together in one location, which will make it an incredibly successful project!”
The area has a walking score of 81 and a bike score of 94, according to city spokesperson Madeline Skrak, allowing residents to reduce transportation costs by using the city’s free bus system.
Moving forward
Officials expect the federal grant money to arrive as construction approaches in 2026, according to Keener.
“This truly is a sort of one-stop-fits-all answer to many of these challenges in this region,” Keller said. “It represents the future of Albuquerque, where you can work, where you can live and where you can play.”