Summary:

 Senate Bill 145 (SB 145):  This legislative act details a substantial appropriation aimed at enhancing affordable housing in New Mexico through the New Mexico Housing Trust Fund.  This legislative act proposes to bolster the capacity of local governments to meet the affordable housing needs of their communities through significant state funding and strategic incentives, aligning financial resources with regulatory and planning frameworks to maximize the impact on housing availability and affordability.
 

Legislation Overview:

 Senate Bill 145 (SB 145):  $500 million is allocated from the general fund to the New Mexico Housing Trust Fund.  The funds are designated for expenditure starting in fiscal year 2026 and can be used in subsequent years to support affordable housing initiatives as outlined in the New Mexico Housing Trust Fund Act.  The act recommends that 10% of the appropriated funds (i.e., $50 million) are specifically reserved for municipalities and counties to engage in affordable housing projects, including construction and rehabilitation.

The act supports a matching funds requirement for municipalities and counties.  Both entities must provide matching funds amounting to at least three times the funding received from the state.  The matching funds requirement incentivizes local investment and ensures that state funds catalyze additional financial contributions, potentially multiplying the impact of the state’s initial investment.

Planning and Zoning Requirements: Eligible municipalities and counties must have established affordable housing plans and supportive zoning ordinances.  Unused funds must be returned to the New Mexico Housing Trust Fund. Priority is given to projects in areas with expedited zoning processes that facilitate affordable housing development.

The act represents a significant financial commitment from the state towards affordable housing, reflecting a proactive stance on addressing housing needs.  Prioritizing areas with supportive zoning practices encourages municipalities and counties to streamline regulatory processes, which can accelerate the development of affordable housing projects.

Accountability and Efficiency: The provision for returning unspent funds ensures accountability and efficient use of allocated resources, emphasizing fiscal responsibility.  The non-reverting nature of the initial funds (except where specified) supports sustained funding for housing initiatives, fostering long-term planning and project completion.

 

Current Law:

 Current Law:
58-18-5.3. Authority; multiple-family dwellings, transitional and
congregate housing facilities. 
In addition to the specific powers of the authority set forth in Section 58-18-5 NMSA 
1978, the authority shall have the power to:  
A. subject to the limitations of Subsection X of Section 58-18-5 NMSA 1978, make project mortgage loans or purchase or contract to purchase project mortgage loans from mortgage lenders or participate with mortgage lenders in project mortgage loans at prices and upon terms and conditions as the authority determines. Each project mortgage loan made or purchased by the authority shall:  
(1) be evidenced by a properly executed note or other evidence of 
indebtedness and be secured by a properly recorded mortgage;  
(2) provide for payments sufficient to pay the project mortgage loan in full not 
later than the expiration of the useful life of the multiple-family dwelling project or 
transitional or congregate housing facility as determined by the authority; and  
(3) determine; not exceed such percentage of such project costs as the authority may 
B. make and contract to make loans to mortgage lenders on such terms and 
conditions as the authority determines, including without limitation requirements relating to collateral for such loans; provided the authority shall require as a condition of any such loan that the mortgage lender make a project mortgage loan or loans to sponsors in an aggregate principal amount at least equal to the amount of the loan received from the authority; and  
C. otherwise provide funding for project mortgage loans, including the issuance of 
bonds or notes in private placements or public offerings. Any bonds or notes issued in a public offering for any purpose authorized by this section shall, at the time of issuance, be rated in at least the third highest rating category by an independent nationally recognized bond rating service.  
History: 1978 Comp., § 58-18-5.3, enacted by Laws 1982, ch. 86, § 4; 1987, ch. 58, § 1; 1995, ch. 9, § 9.
 

Amendments:

 Amended March 2, 2025, in SHPAC.

SHPACa/SB 145:  The legislative recommendation is to “DO PASS” the bill with the following amendments:  
 1.  On page 2, line 2, strike "Ten" and insert in lieu thereof "Fifteen".
 2.  On page 2, line 5, before "municipality", insert "rural".
 3.  On page 2, line 5, strike the comma and insert in lieu thereof:
 "and fifteen percent of the amount appropriated pursuant to
 Subsection A of this section shall be made available for the New
 Mexico mortgage finance authority to award funding to a non-rural
 municipality or county for affordable housing projects.".
 4.  On page 2, line 6, strike "including" and insert in lieu thereof "Affordable housing projects include".
 5.  On page 2, strike lines 8 and 9.
 6.  Renumber the succeeding paragraphs accordingly.
 7.  On page 2, line 11, strike "and".
 8.  On page 2, line 13, strike the period and insert in lieu thereof "; and".
 9.  On page 2, between lines 13 and 14, insert: FIFTY-SEVENTH LEGISLATURE FIRST REGULAR SESSION, 2025
 "(3)  has demonstrated the ability to expedite zoning
 processes that support affordable housing development projects.".
 10.  On page 2, after the subsection designation "C.", strike the remainder of the line, strike lines 15 through 17 and strike line 18 through the period.
 and thence referred to the FINANCE COMMITTEE