El Paso Redirects $2.5 Million to Affordable Multifamily Housing

The Government of El Paso County voted unanimously on Tuesday to redirect $2.5 million in unused federal housing funds from a first-time homebuyer assistance program to the development of affordable multifamily housing. The shift follows years of program stagnation; the last resident received federal aid in 2021, and the city stopped advertising applications in 2025.

City officials determined that rising property prices made the original program inaccessible. With average home prices reaching $280,000, residents could no longer meet the program's $226,000 eligibility cap. Nickole Rodriguez, the director of Community and Human Development, noted that federal regulatory restrictions and a stagnant income cap further prevented residents from qualifying.

The redirected funds will support the construction, rehabilitation, and acquisition of rental units to address a city-wide shortage of 35,731 affordable multifamily units. The city intends to partner with non-profit development teams to create housing specifically for low- to moderate-low income families.

El Paso plans to submit the funding amendment to the U.S. Department of Housing and Urban Development in October. The city expects to issue a notice of funding availability by the end of the year and will hold technical assistance workshops for developers during the winter, aiming to distribute all funds by 2027 before they expire.