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HOUSE BILL 118
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Kathleen Cates
AN ACT
RELATING TO FINANCE; ENACTING THE PROFESSIONAL RECRUITMENT AND
RETENTION ACT; PROVIDING FOR PROGRAM ADMINISTRATION BY THE NEW
MEXICO MORTGAGE FINANCE AUTHORITY; PROVIDING LOANS FOR SERVICE
TO PROFESSIONALS FOR EXPENSES RELATED TO THE PURCHASE OF A
HOME; CONDITIONING LOANS ON PRACTICE IN NEW MEXICO; PROVIDING
TERMS FOR REPAYMENT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be
cited as the "Professional Recruitment and Retention Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the
Professional Recruitment and Retention Act:
A. "authority" means the New Mexico mortgage
finance authority;
B. "loan" means a contract between the authority
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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
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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.
SECTION 3. [NEW MATERIAL] PROFESSIONAL RECRUITMENT AND
RETENTION HOUSING LOAN FOR SERVICE PROGRAM CREATED--LOAN
APPLICANT ELIGIBILITY--QUALIFICATIONS.--
A. The "professional recruitment and retention
housing loan for service program" is created within the
authority. The authority may promulgate rules to carry out the
provisions of the Professional Recruitment and Retention Act.
B. The authority shall create an account for any
money designated for the program. Loans for the program shall
be provided from the account, and the account may consist of
subaccounts as the authority deems necessary.
C. The authority 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.
D. Applications shall be submitted to the authority
on forms provided by the authority and shall include:
(1) documentation that the qualified
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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.
SECTION 4. [NEW MATERIAL] PROGRAM REQUIREMENTS.--The
authority shall administer the program pursuant to 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 shall be met and the lien shall be removed; and
C. a loan shall be granted only one time in the
course of ten years.
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SECTION 5. [NEW MATERIAL] CONTRACTS--CANCELLATION--
REPAYMENT.--
A. A loan is a written contract between the
qualified professional and the authority. The general form of
the contract required shall be approved by the general counsel
of the authority and signed by the qualified professional and
by the authority. The contract shall state the terms of the
loan and the obligations of the qualified professional under
the program.
B. The authority may cancel a contract entered into
with a qualified professional for any reasonable cause deemed
sufficient by the authority.
C. The authority may sue in its own name to enforce
a contract and may seek other remedies available at law or in
equity.
D. 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 within:
(1) the first five years of the loan shall
reimburse the authority for the full amount of the loan at an
interest rate of five and one-half percent using the proceeds
from the sale of the property that was purchased using the
loan;
(2) five to seven years of the loan shall
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reimburse the authority for fifty percent of the loan at an
interest rate of five and one-half percent using the proceeds
from the sale of the property that was purchased using the
loan; or
(3) seven to ten years of the loan shall
reimburse the authority for twenty-five percent of the loan at
an interest rate of five and one-half percent using the
proceeds from the sale of the property that was purchased using
the loan.
E. The authority shall 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.
SECTION 6. [NEW MATERIAL] REPORTS.--The authority shall
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.
SECTION 7. APPROPRIATION.--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 New Mexico
mortgage finance authority to carry out the provisions of the
Professional Recruitment and Retention Act. Any unexpended or
unencumbered balance remaining at the end of fiscal year 2026
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shall revert to the general fund.
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