Ruidoso eager to apply $70 million in loans

It's been a brutal summer for Ruidoso, which weathered devastating fires in June and has been hit with recurring flooding in recent weeks.

But the repair of damaged bridges, roads and other public works, including 35-foot culverts that were ripped out in the Paradise Canyon area, is on the horizon after state lawmakers approved up to $70 million in zero-interest loans to fund such work during a special session last month.

Ruidoso Mayor Lynn Crawford said the money will help jumpstart recovery efforts as the community and surrounding areas navigate federal emergency response programs that often take years to pay out relief funds.

"It's going to go quick," Crawford said, referring to the state loan dollars. "But with that $70 million, we've got a little bit of a cushion."

Ruidoso still has four bridges shut down due to flooding issues, he said, and debris removal and watershed protection efforts could also carry hefty price tags.

The $70 million is part of a $100 million emergency relief package that also includes money for the Mescalero Apache Tribe and two state agencies for wildfire recovery efforts.

The funding was included in a bill that took effect immediately after being signed last week by Gov. Michelle Lujan Grisham.

The loan program will be administered by the state Department of Finance and Administration. It is modeled after a similar program approved during the 2023 legislative session to expedite recovery efforts in the burn scar of the Hermits Peak/Calf Canyon Fire.

Following that northern New Mexico wildfire, nearly all of the $100 million in state loans authorized for repair projects were ultimately issued, though it took the state agency more than a year to finish distributing the money.

In large part, that's because qualifying projects must first receive approval from the Federal Emergency Management Agency before the state can issue a loan, a process that can take longer than many local officials would prefer.

With this year's bill signed, the state will be ready to work with cities, counties and other local entities in the Ruidoso area by the end of next week, said DFA spokesman Henry Valdez.

But he cautioned the timeline for loans — and repair efforts — will ultimately depend largely on how quickly FEMA approves the projects.

"These are large-scale infrastructure projects, so nothing moves at the speed of light," Valdez said Friday.

More than 1,500 structures and 500 homes in the Ruidoso area were destroyed by the South Fork and Salt fires, state Sen. Bill Burt, R-Alamogordo, said last month.

The fires, combined, burned more than 25,000 acres and prompted President Joe Biden to sign a major disaster declaration on June 20. The declaration freed up federal disaster relief funds for local residents and businesses.

While investigations into the causes of the blazes are still underway, Ruidoso's mayor said the fires have had a devastating impact on the popular tourist area's economy.

He said much of the flooding has been caused by only moderate rains, since moisture tends to run off the burn scar area.

Even without the state loan funds, Ruidoso is already seeking reimbursement for about $3 million in locally funded repair work over the last month, Crawford said.

And he noted local officials have been in regular contact with state and federal officials in an attempt to expedite recovery work.

"We're trying to learn the lessons that our neighbors up north had to experience," Crawford said.