Las Cruces City Council Work Session on Housing Insecurity and Short-Term Rental Regulations - October 14, 2025

This work session, held on October 14, 2025, at approximately 1:00 PM, began with a moment of silence and the Pets of the Week feature. The main agenda items were a presentation on addressing housing insecurity and exploring alternative living options, followed by an update on proposed short-term rental requirements. The session included presentations from consultants, city staff, and service providers, as well as extensive discussion among council members and public comments.

Pets of the Week

• Carol Nelson from the Animal Services Center of the Mesilla Valley introduced the dog of the week, Hulu (ID 89471). No cat was featured because the selected cat was adopted before the meeting.
• Long-term residents highlighted: Cosette (280 days), Cookies and Cream (270 days), and Finn (255 days).
• Upcoming events: adoption event at PETCO on Saturday from 9 AM to 12 PM; drive-thru vaccine clinic at Field of Dreams parking lot on October 26 from 9 AM to 1 PM.

Housing Insecurity and Alternative Living Options

• Presentation by Natalie Green (Housing Administrator) and Jen Lopez (Project Moxie, consultant). Lopez has 25 years of experience in housing and homelessness work.
• Key Data: Point-in-time count (2025) shows 267 homeless individuals in Las Cruces; approximately 800 affordable housing units are anticipated to come online in the next two years; a shortage of about 5,600 affordable units exists. Statewide, 76% of renters earning less than $50,000 are cost-burdened.
• National context: Housing shortage since the Great Recession, worsened by COVID. Federal funding for homeless programs (Continuum of Care) is at risk, with potential cuts to SNAP, Medicaid, and HUD vouchers.
• Framework for Investments: Proposed that any new funding should follow best practices, prevent and decrease homelessness, leverage current assets, ensure operational feasibility for at least 5 years, and be trauma-informed.
• Crisis Response vs. Permanent Housing: Crisis interventions (e.g., shelters, tiny homes) are expensive to operate, while eviction prevention and rapid rehousing are more cost-effective. A feasibility checklist for tiny homes was provided.
• Current City Investment: Approximately $281,250 annually in homeless services (excluding MoniMano), funding Mesilla Valley Community of Hope and La Casa.
• Council Discussion: Councilmember McClure emphasized the need to diversify housing options, including tiny homes and ADUs, and to revisit goals from the comprehensive plan (Elevate Las Cruces). Councilmember Grant noted the complexity of the homeless population and the importance of eviction prevention. Councilmember Croy supported increasing investment in eviction prevention and landlord risk mitigation.

Public Comments on Housing

• Cleve Hattersley: Suggested a “Soft White Underbelly” style project to film homeless individuals' stories to humanize the issue.
• Jeff Curry (developer): Praised city efforts, cautioned against quick motel conversions, and recommended maximizing the Low-Income Housing Tax Credit program.
• Jamie Michael (County Health and Human Services): Reported county invested ~$700,000/year in homelessness services; announced a transitional supportive housing project on Motel Boulevard using modular units.
• Eric Salcito (for architect Rembrandt Alley): Proposed tiny home designs and left plans with staff.
• Cassandra Gandhara (former Mayor Pro Tem): Urged expansion of La Casa's capacity through hotel conversion and a 100+ bed facility.
• Tony Watkins (La Casa): Noted 66% of rapid rehousing vouchers are from Continuum of Care funding, which is at risk.
• William Gilman: Criticized the presentation for lack of urgency and data, and suggested creating a local Continuum of Care.

Update on Short-Term Rental Requirements

• Presentation by Chris Favor (Community Development Director). Currently, 465 short-term rentals (STRs) are listed on third-party sites, but only 74 are registered with Visit Las Cruces.
• Proposed ordinance: Require STR operators to obtain a business registration, register with Visit Las Cruces, meet fire and building codes, notify neighbors (200-foot radius recommended), provide 24/7 contact info, and comply with occupancy limits (2 per bedroom + 2 additional; no more than 10 extra for gatherings).
• Enforcement will include a tiered consequence system (first offense, second, revocation). Implementation targeted for January 2026 with enforcement starting July 2026.
• Council Discussion: Councilmember Crenn requested expanding neighbor notification radius to 300 feet and wanted a clear hierarchy of consequences tied to severity. Councilmember Croy asked about neighbor recourse and whether notification includes contact info.
• Rochelle Miller Hernandez (Visit Las Cruces) clarified that Airbnb does not collect lodgers tax directly; owners must submit it. The city has a system for collecting taxes; FY25 collected $43,000 in lodgers tax from STRs.
• Public comment: Pud Maldavitt (rethink real estate) raised practical issues with paying lodgers tax due to lack of a functional system; staff agreed to meet offline.

Key Outcomes

• The housing discussion informed a planned survey to gather community input from stakeholders (police, fire, hospitals, schools, courts, nonprofits) and individuals experiencing homelessness, funded by a grant.
• Council approved exploring motel conversions and expanding landlord risk mitigation funding.
• The short-term rental ordinance will be brought back in December for first reading, with adoption by end of 2025. Revisions may include a larger notification radius and a tiered enforcement plan.
• Councilmember Pro Tem requested analysis of Continuum of Care funding impacts for state legislative advocacy.
• The meeting adjourned at approximately 2:56 PM.