Summary:

 House Bill 118 (HB 118) enacts the Professional Recruitment and Retention Act; provides for program administration by the New Mexico Mortgage Finance Authority; provides loans for service to professionals for expenses related to the purchase of a home; conditions loans on practice in New Mexico; provides terms for repayment; and makes an appropriation. 

Legislation Overview:

 House Bill 118 (HB 118) enacts the "Professional Recruitment and Retention Act." Definitions are provided as follows:

A. "authority" means the New Mexico mortgage finance authority (NMMFA); 
B. "loan" means a contract between the authority and a professional to finance the purchase of a home; 
C. "program" means the professional recruitment and retention housing loan for service program; and 
D. "qualified professional" means a person who meets the requirements of the Professional Recruitment and Retention Act and is one of the following: 

(1) a registered nurse licensed pursuant to the Nursing Practice Act; 
(2) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act; 
(3) a physician licensed pursuant to the Medical Practice Act; 
(4) a physician assistant licensed pursuant to the Physician Assistant Act; 
(5) an anesthesiologist assistant licensed pursuant to the Anesthesiologist Assistants Act; 
(6) a psychologist licensed pursuant to the Professional Psychologist Act; 
(7) a pharmacist licensed pursuant to the Pharmacy Act; 
(8) an occupational therapist licensed pursuant to the Occupational Therapy Act; 
(9) a physical therapist licensed pursuant to the Physical Therapy Act; 
(10) a respiratory care practitioner licensed pursuant to the Respiratory Care Act;
(11) a speech-language pathologist or an audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act; and
(12) a social worker licensed pursuant to the Social Work Practice Act. 

The "professional recruitment and retention housing loan for service program" is created within the NMMFA. The NMMFA may promulgate rules to carry out the provisions of the Professional Recruitment and Retention Act. 

The authority shall create an account for any money designated for the program. Loans for the program are to be provided from the account, and the account may consist of subaccounts as the NMMFA deems necessary. 

The NMMFA may grant a loan to a qualified professional for the down payment or closing costs associated with the purchase of a home in New Mexico in exchange for the qualified professional practicing in the state for ten years at no less than three-fourths of full-time employment. 

Applications are to be submitted to the authority on forms provided by the NMMFA and must include: 

(1) documentation that the qualified professional earns a current annual income that is below one hundred fifty-one percent of the area median income in the county in which the home being purchased is located, adjusted for family size, as determined by the United States Department of Housing and Urban Development;
(2) a copy of the approved mortgage application for the purchase of a home in New Mexico;
(3) proof of licensure provided to the authority by the licensing body of the qualified professional; and
(4) any other documentation required by the authority. 

The NMMFA must administer the program in compliance with the following requirements: 

A. a loan shall not exceed ten percent of the total home purchase price limit as determined by the authority; 
B. if granted, the loan provided by the authority shall be a lien on the property for ten years, unless the qualified professional pays off the loan. After the loan recipient has completed the required ten years working as a qualified professional in the state, the obligations of the loan contract will be met and the lien will be removed; and 
C. a loan will be granted only one time in the course of ten years. 

A loan is a written contract between the qualified professional and the authority. The general form of the contract required must be approved by the General Counsel of the NMMFA and signed by the qualified professional and by the NMMFA. The contract must state the terms of the loan and the obligations of the qualified professional under the program. 
The authority may cancel a contract entered into with a qualified professional for any reasonable cause deemed sufficient by the authority. 

The authority may sue in its own name to enforce a contract and may seek other remedies available at law or in equity. 

Repayment/reimbursement terms are detailed for situations in which a qualified professional who is provided a loan and who moves out of state, does not work the required hours, loses or allows to lapse the license to practice or who otherwise violates the loan contract.

The NMMFA must provide by rule for loan forgiveness due to extenuating circumstances that are not within the control of the loan recipient, such as serious illness or incapacitation. 

The NMMFA authority must make an annual report to the Mortgage Finance Authority Act oversight committee by August 1 of its activities, including the number of loans granted and the professions and locations represented by the loans. 

Five million dollars ($5,000,000) is appropriated from the General Fund to the Department of Finance and Administration for expenditure in Fiscal Years 2025 and 2026 to contract with the NMMFA to carry out the provisions of the Professional Recruitment and Retention Act. Any unexpended or unencumbered balance remaining at the end of fiscal year will revert to the general fund. 
 

Current Law:

 The current law does not include the Professional Recruitment and Retention Act or related administration of the Act; nor does it provide these specific loans for service to the identified professionals for expenses related to the purchase of a home. No appropriation for this purpose exists at this time.