Worldwide, the majority of rapidly growing neighborhoods are found in the Global South. They often exhibit different building construction and development patterns than the Global North, and urban climate research in many such neighborhoods has to date been sparse. This study presents local-scale observations of net radiation (Q * ) and sensible heat flux (Q H ) from a lightweight low-rise neighborhood in the desert climate of Andacollo, Chile, and compares observations with results from a process-based urban energy-balance model (TUF3D) and a local-scale empirical model (LUMPS) for a 14-day period in autumn 2009. This is a unique neighborhood-climate combination in the urban energy-balance literature, and results show good agreement between observations and models for Q * and Q H . The unmeasured latent heat flux (Q E ) is modeled with an updated version of TUF3D and two versions of LUMPS (a forward and inverse application). Both LUMPS implementations predict slightly higher Q E than TUF3D, which may indicate a bias in LUMPS parameters towards mid-latitude, non-desert climates. Overall, the energy balance is dominated by sensible and storage heat fluxes with mean daytime Bowen ratios of 2.57 (observed Q H /LUMPS Q E )-3.46 (TUF3D). Storage heat flux (ΔQ S ) is modeled with TUF3D, the empirical objective hysteresis model (OHM), and the inverse LUMPS implementation. Agreement between models is generally good; the OHM-predicted diurnal cycle deviates somewhat relative to the other two models, likely because OHM coefficients are not specified for the roof and wall construction materials found in this neighborhood. New facet-scale and local-scale OHM coefficients are developed based on modeled ΔQ S and observed Q * . Coefficients in the empirical models OHM and LUMPS are derived from observations in primarily non-desert climates in European/North American neighborhoods and must be updated as measurements in lightweight low-rise (and other) neighborhoods in various climates become available.