Anyone who lives in Santa Fe knows that we need more well-paying jobs here, especially now as we continue to suffer through the recession. That means we need local government to prioritize smart investments that create jobs and stimulate the economy.

Affordable housing is one of those smart investments, and Mayor David Coss' job-creation plan to create 1,100 new jobs through affordable-housing initiatives is a smart plan. By using affordable housing as a vehicle for employment growth, the plan effectively tackles both issues head on and delivers an impressive bang for the buck.

How does an investment in affordable housing create jobs? Let's say the city provides $5,000 in down-payment assistance to help working families purchase their first home. A million dollar investment could help 200 households purchase a home in Santa Fe instead of moving away to Río Rancho or Albuquerque.

We know that people spend their paychecks where they live. By keeping 200 members of our workforce living in Santa Fe, more than $6 million in wages earned in Santa Fe will be spent in Santa Fe each year. That's good for local businesses and good for our economy. And it's good for job creation: a $6 million increase in annual local spending will create approximately 140 permanent new jobs.

If half of the 200 new home buyers purchase a newly constructed home, those 100 new homes will have created an additional 104 construction jobs. Even more jobs are created by all the activity related to home ownership: Realtors that sell the homes; banks and insurance companies that provide mortgages and home insurance; retail and wholesale stores that provide building materials and home furnishings.

Smart investing in affordable housing truly is an investment. Local government will recoup its investment in increased gross receipts taxes. In the first year alone, gross-receipts taxes from the construction of 100 new homes and first-year move-in expenses of 200 new homeowners will amount to more than $800,000. And the increased local spending that results from retaining 200 members of our workforce will generate an additional $508,000 each and every year. In less than two years, increased GRT revenue will exceed the $1 million initial investment in affordable housing.

The mayor's plan is the kind of practical, pragmatic approach Santa Fe needs to spur economic development, create jobs, and make housing more affordable. I hope all of Santa Fe can pull together to support this approach.

Mike Loftin is the executive director of Homewise in Santa Fe.