HB 195 HOUSING FUND & CHANGES

Rep Linda Serrato

Actions: [2] not prntd-HRC [3] w/drn-prntd-ref- HCPAC/HAFC-HCPAC [5] DP-HAFC [8] DP [9] PASSED/H (50-16) [7] SHPAC/SFC-SHPAC- DP-SFC [10] DP [13] PASSED/S (26-14) SGND BY GOV (Feb. 28) Ch. 8.

Scheduled: Not Scheduled

 House Bill 195 (HB 195) amends and enacts sections of the Opportunity Enterprise Act (OEA) and changes the name of the act; allows the New Mexico Finance Authority (NMFA) to provide housing development loans; creates the Housing Development Revolving Fund; defines terms; amends the structure of the Opportunity Enterprise Review Board and changes its name; provides duties; requires rulemaking; amends requirements for opportunity enterprise loans; and requires reporting. 

 House Bill 195 (HB 195) amends and enacts sections of the Opportunity Enterprise Act (OEA) and changes the name of the act; allows the New Mexico Finance Authority (NMFA) to provide housing development loans; creates the Housing Development Revolving Fund (HDRF); defines terms; amends the structure of the Opportunity Enterprise Review Board and changes its name; provides duties; requires rulemaking; amends requirements for opportunity enterprise loans; and requires reporting.

The OEA’s name is changed to "Opportunity Enterprise and Housing Development Act (OEHDA)".

A definition is added for "affordable housing infrastructure project", which refers to infrastructure projects needed to support housing for low- or moderate-income residents.

The definition of "enterprise development project" is revised to mean a commercial real estate development project primarily occupied by businesses unrelated to the opportunity enterprise partner that involves the purchase, planning, designing, building, surveying, improving, operating, furnishing, equipping or maintaining of land, buildings or infrastructure to create or expand economic development opportunities within the state.

A definition of "housing development assistance" is added, meaning a loan for workforce development housing projects or affordable housing infrastructure projects. 

A "housing development partner" is defined as a domestic corporation, a general partnership, a limited liability company, a limited partnership, a public benefit corporation, a nonprofit entity or any other private business entity or combination of these that the authority determines is or will be engaged in a project that creates or expands housing within the state and is eligible for housing development assistance pursuant to the OEHDA.

A "housing development project" means an affordable housing infrastructure project or a workforce development housing project.

A definition of "workforce development housing project" is added, meaning a residential real estate development project that involves the purchase, planning, designing, building, surveying, improving, operating, furnishing, equipping or maintaining of land, buildings or infrastructure that provides housing, including housing that provides the option of home ownership."

The authority of the New Mexico Finance Authority (NMFA) is expanded to include housing development, to make loans to housing development partners, and to and collect related payments.

The NMFA may sell or otherwise dispose of any property obtained as a result of an enterprise development project or a housing development project, provided that proceeds received are deposited in the Opportunity Enterprise Revolving Fund (OERF) or the Housing Development Revolving Fund HDRF.

The NMFA is to adopt rules relating to the use of the OERF and the HDRF necessary to carry out the provisions of the Opportunity Enterprise and Housing Development Act (OEHDA).

The Opportunity Enterprise Review Board is modified to be the Opportunity Enterprise and Housing Development Review Board" (OEHDRB). The membership for the new board is expanded and revised. Board responsibilities are detailed.

The Housing Development Revolving Fund (HDRF) is created within the authority, consisting of appropriations, distributions, transfers, gifts, grants, donations, bequests, fees collected, payments of principal and interest on housing development assistance, income from investment of the fund, and any other money distributed or otherwise allocated. 

Balances in the fund at the end of a fiscal year shall not revert to any other fund. Money in the HDRF must be used to carry out the provisions of the OEHDA.

Reporting requirements are detailed.
 

 The bill proposes that the scope of the Opportunity Enterprise Act (OEA) be expanded to provide for housing development; that the New Mexico Finance Authority (NMFA) have increased authority and responsibilities, and that the Opportunity Enterprise Review Board (OERB) have expanded/revised membership and responsibilities. Further, the Housing Development Revolving Fund is proposed.

If the bill does not pass, the changes involving housing development and related oversight and resources will not be authorized, and the scope of the existing Opportunity Enterprise Act (OEA) and related support systems will remain the same.