Some Santa Fe city councilors want to relax the rules that require developers to build affordable housing, but the effort appears to be headed for a divided vote before the full City Council next week.

Councilors on the Public Works Committee on Monday narrowly approved a plan amending the city ordinance to call for fewer units in each new subdivision that would be part of the Santa Fe Homes program.

Current regulations require each development to offer 30 percent of its homes at fixed prices to income-qualified buyers. Rather than slicing the requirement in half as proposed by Councilor Rebecca Wurzburger, now councilors are weighing a plan that would make it 20 percent, a compromise proposal engineered by Councilor Rosemary Romero.

Both Wurzburger and Romero say the changes are aimed at increasing building activity in light of severe economic slowdown, but two councilors on the committee who cast votes against the proposal questioned whether it would have that outcome. The rules approved in 2005 came after years of debate.

"This is just changing it too much," Councilor Miguel Chavez said. "Even though we need to do something to respond to the economy and to compensate for that, I'm not sure that is what we want. It seems like it might be better at this time to just weather the storm and ride it out."

Councilor Chris Calvert warned that unless rules call for builders to use only local labor and materials, the changes won't be worth the loss of homes that are within reach of low-earning residents.

Romero said she tried to get that provision in the amendments she proposed, but she learned from staff that it wasn't possible.

"There would be a challenge around ensuring that the entire development would be built by only local developers," said Nick Schiavo, director of the Housing and Community Development Division, which oversees the affordable-housing program. "It was unclear who that burden would fall on to make sure that every contractor and subcontractor was based in Santa Fe."

Even one councilor who is a sponsor of the proposal still has big questions about it.

Councilor Ron Trujillo, who voted to recommend holding a hearing on the matter, said he won't support it at the final vote unless there's a provision requiring builders to deliver affordable housing as promised within three years or face penalties such as building additional units for the program.

Romero said she hoped the plan, which also would drastically reduce fees for small developments, would encourage building on a smaller scale.

"I'm hoping we will get support from others on the changes," she said, noting that she is approaching the issue "hopefully optimistic."

Councilor Carmichael Dominguez, committee chair, broke a tie vote to send the proposal to the full council. The city Planning Commission recommended approval of changing the requirement to 15 percent in May. Councilor Matthew Ortiz also is a sponsor of the measure. Mayor David Coss said last month that he opposed cutting the requirement in half.

The measure is scheduled for a public hearing at 7 p.m. Wednesday.

Contact Julie Ann Grimm at 986-3017 or jgrimm@sfnewmexican.com.