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HOUSE BILL 453
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Janelle Anyanonu
AN ACT
RELATING TO HOUSING; AMENDING AND ENACTING SECTIONS OF THE
AFFORDABLE HOUSING ACT; CREATING THE CREDITWORTHINESS
ASSISTANCE PROGRAM; PROVIDING FOR CREDITWORTHINESS ASSISTANCE
GRANTS; CREATING THE CREDITWORTHINESS ASSISTANCE FUND; MAKING
AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 6-27-3 NMSA 1978 (being Laws 2004,
Chapter 104, Section 3, as amended) is amended to read:
"6-27-3. DEFINITIONS.--As used in the Affordable Housing
Act:
A. "affordable housing" means residential housing
primarily for persons or households of low or moderate income;
B. "authority" means the New Mexico mortgage
finance authority;
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C. "building" means a structure capable of being
renovated or converted into affordable housing or a structure
that is to be demolished and is located on land that is donated
and upon which affordable housing will be constructed;
D. "creditworthiness assistance grant" means a
grant of money to be used by a participant for:
(1) all or a portion of unpaid rent; and
(2) damages caused to a rented residential
property by a participant in the creditworthiness assistance
program;
[D.] E. "governmental entity" means the state,
including any agency or instrumentality of the state, a county,
a municipality or the authority;
[E.] F. "household" means one or more persons
occupying a housing unit;
[F.] G. "housing assistance grant" means the
donation, provision or payment by a governmental entity of:
(1) land upon which affordable housing will be
constructed;
(2) an existing building that will be
renovated, converted or demolished and reconstructed as
affordable housing;
(3) the costs of acquisition, development,
construction, financing and operating or owning affordable
housing; or
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(4) the costs of financing or infrastructure
necessary to support affordable housing;
[G.] H. "infrastructure" includes infrastructure
improvements and infrastructure purposes;
[H.] I. "infrastructure improvement" includes, but
is not limited to:
(1) sanitary sewage systems, including
collection, transport, storage, treatment, dispersal, effluent
use and discharge;
(2) drainage and flood control systems,
including collection, transport, diversion, storage, detention,
retention, dispersal, use and discharge;
(3) water systems for domestic purposes,
including production, collection, storage, treatment,
transport, delivery, connection and dispersal;
(4) areas for motor vehicle use for road
access, ingress, egress and parking;
(5) trails and areas for pedestrian,
equestrian, bicycle or other nonmotor vehicle use for access,
ingress, egress and parking;
(6) parks, recreational facilities and open
space areas to be used by residents for entertainment, assembly
and recreation;
(7) landscaping, including earthworks,
structures, plants, trees and related water delivery systems;
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(8) electrical transmission and distribution
facilities;
(9) natural gas distribution facilities;
(10) lighting systems;
(11) cable or other telecommunications lines
and related equipment;
(12) traffic control systems and devices,
including signals, controls, markings and signs;
(13) inspection, construction management and
related costs in connection with the furnishing of the items
listed in this subsection; and
(14) heating, air conditioning and
weatherization facilities, systems or services, and energy
efficiency improvements that are affixed to real property;
[I.] J. "infrastructure purpose" means:
(1) planning, design, engineering,
construction, acquisition or installation of infrastructure,
including the costs of applications, impact fees and other
fees, permits and approvals related to the construction,
acquisition or installation of the infrastructure;
(2) acquiring, converting, renovating or
improving existing facilities for infrastructure, including
facilities owned, leased or installed by the owner;
(3) acquiring interests in real property or
water rights for infrastructure, including interests of the
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owner; and
(4) incurring expenses incident to and
reasonably necessary to carry out the purposes specified in
this subsection;
[J.] K. "municipality" means an incorporated city,
town or village, whether incorporated under general act,
special act or special charter, incorporated counties and H
class counties;
L. "participant" means a person who participates in
a training program authorized by the state, a county or a
municipality that provides information on the importance of
budgeting and the operation of credit histories and credit
scores;
[K.] M. "public post-secondary educational
institution" means a state university or a public community
college;
[L.] N. "qualifying grantee" means:
(1) an individual who is qualified to receive
assistance pursuant to the Affordable Housing Act and is
approved by the governmental entity; and
(2) a governmental housing agency, regional
housing authority, tribal housing agency, corporation, limited
liability company, partnership, joint venture, syndicate,
association or nonprofit organization that:
(a) is organized under state, local or
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tribal laws and can provide proof of such organization;
(b) if a nonprofit organization, has no
part of its net earnings inuring to the benefit of any member,
founder, contributor or individual; and
(c) is approved by the governmental
entity; and
[M.] O. "residential housing" means any building,
structure or portion thereof that is primarily occupied, or
designed or intended primarily for occupancy, as a residence by
one or more households and any real property that is offered
for sale or lease for the construction or location thereon of
such a building, structure or portion thereof. "Residential
housing" includes congregate housing, manufactured homes,
housing intended to provide or providing transitional or
temporary housing for homeless persons and common health care,
kitchen, dining, recreational and other facilities primarily
for use by residents of a residential housing project."
SECTION 2. A new section of the Affordable Housing Act is
enacted to read:
"[NEW MATERIAL] CREDITWORTHINESS ASSISTANCE PROGRAM--
CREDITWORTHINESS ASSISTANCE GRANTS--ELIGIBILITY.--
A. The "creditworthiness assistance program" is
created and shall be administered by the authority. The
application for a creditworthiness assistance grant shall be in
a form prescribed by the authority. To be eligible for a
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creditworthiness assistance grant:
(1) a nonindividual qualifying grantee shall:
(a) have a functioning accounting system
that is operated in accordance with generally accepted
accounting principles or shall designate an entity that will
maintain such an accounting system consistent with generally
accepted accounting principles; and
(b) have among its purposes significant
activities related to renting residential housing; and
(2) an individual qualifying grantee shall
meet all requirements provided pursuant to rules promulgated by
the authority pursuant to the Affordable Housing Act.
B. A creditworthiness assistance grant provided
pursuant to this section shall not exceed:
(1) five thousand dollars ($5,000) of unpaid
rent to a qualifying grantee per one participant;
(2) ten thousand dollars ($10,000) of unpaid
rent to a qualifying grantee per calendar year; and
(3) two thousand five hundred dollars ($2,500)
for damages caused to a rented residential property by a
participant.
C. The authority shall promulgate rules regarding:
(1) requirements for a participant to be
eligible to receive a creditworthiness assistance grant;
(2) the application for a creditworthiness
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assistance grant;
(3) the training program on the importance of
budgeting and the operation of credit histories and credit
scores; and
(4) the process for other grantors to
administer creditworthiness assistance grants."
SECTION 3. Section 6-27-5 NMSA 1978 (being Laws 2004,
Chapter 104, Section 5, as amended) is amended to read:
"6-27-5. STATE, COUNTY, MUNICIPALITIES, INSTRUMENTALITIES
OF THE STATE AND THE AUTHORITY--AUTHORIZATION FOR AFFORDABLE
HOUSING.--The state, including any agency or instrumentality of
the state, or a county, a municipality or the authority may:
A. donate, provide or pay all or a portion of the
costs of land for the construction on the land of affordable
housing;
B. donate, provide or pay all or a portion of the
costs of conversion or renovation of existing buildings into
affordable housing;
C. provide or pay the costs of financing or
infrastructure necessary to support affordable housing
projects; [or]
D. provide or pay all or a portion of the costs of
acquisition, development, construction, financing, operating or
owning affordable housing; or
E. donate, provide or pay all or a portion of the
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costs of unpaid rent owed by a participant or damages caused to
a residential property pursuant to the requirements provided in
Subsection B of Section 2 of this 2025 act ."
SECTION 4. Section 6-27-7 NMSA 1978 (being Laws 2004,
Chapter 104, Section 7, as amended) is amended to read:
"6-27-7. REQUIREMENT FOR ENACTMENT OF AN ORDINANCE BY A
COUNTY OR A MUNICIPALITY AND REVIEW BY THE AUTHORITY
AUTHORIZING HOUSING ASSISTANCE GRANTS AND CREDITWORTHINESS
ASSISTANCE GRANTS.--
A. A county or municipality may provide housing
assistance grants pursuant to Article 9, Section 14 of the
constitution of New Mexico and creditworthiness assistance
grants pursuant to Section 2 of this 2025 act after enactment
by its governing body of an ordinance authorizing grants
stating the requirements of and purposes of the grants. The
ordinance may provide for matching or using local, private or
federal funds either through direct participation with a
federal agency pursuant to federal law or through indirect
participation through programs of the authority. No less than
forty-five days prior to enactment, the county or municipality
shall submit a proposed ordinance to the authority, which shall
review the proposed ordinance to ensure compliance with rules
promulgated by the authority pursuant to Section 6-27-8 NMSA
1978. Within fifteen days after enactment of the ordinance,
the county or municipality shall submit a certified true copy
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of the ordinance to the authority. The governing body of the
county or municipality shall authorize the transfer or
disbursement of housing assistance grant funds only after the
qualifying grantee has submitted a budget to the governing body
and the governing body has approved the budget.
B. A school district may transfer land or buildings
owned by the school district to a county or municipality to be
further granted as part or all of an affordable housing grant
if the school district and the governing body of the county or
municipality enter into a contract that provides the school
district with a negotiated number of affordable housing units
that will be reserved for employees of the school district.
C. The governing board of a public post-secondary
educational institution may transfer land or buildings owned by
that institution to a county or municipality; provided that:
(1) the property transferred shall be granted
by the county or municipality as part or all of an affordable
housing grant; and
(2) the governing board of the public post-
secondary educational institution and the governing body of the
county or municipality enter into a contract that provides the
public post-secondary educational institution with affordable
housing units.
D. Agencies or instrumentalities of the state may
provide housing assistance grants pursuant to Article 9,
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Section 14 of the constitution of New Mexico in accordance with
rules promulgated by the authority.
E. The authority may provide housing assistance
grants pursuant to Article 9, Section 14 of the constitution of
New Mexico in accordance with rules promulgated by the
authority."
SECTION 5. Section 6-27-8 NMSA 1978 (being Laws 2004,
Chapter 104, Section 8, as amended) is amended to read:
"6-27-8. PROVISIONS TO ENSURE SUCCESSFUL COMPLETION OF
AFFORDABLE HOUSING PROJECTS--SALE AFTER FORECLOSURE.--
A. State, county and municipal housing assistance
grants awarded pursuant to the Affordable Housing Act shall be
applied for and awarded to qualifying grantees pursuant to the
rules promulgated by the authority subject to the requirements
of that act.
B. The authority shall adopt rules in accordance
with the Administrative Procedures Act to carry out the
purposes of the Affordable Housing Act. Concurrence by the New
Mexico municipal league is required for rules applicable to
municipalities. Concurrence by the New Mexico association of
counties is required for rules applicable to counties.
C. The authority shall adopt rules covering:
(1) procedures to ensure that qualifying
grantees meet the requirements of the Affordable Housing Act
and rules promulgated pursuant to that act both at the time of
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the award and through the term of the grant or the
creditworthiness assistance grant ;
(2) establishment of an application and award
timetable for housing assistance grants and creditworthiness
assistance grants to permit the selection of the potential
qualifying grantees prior to January of the year in which the
grants would be made;
(3) contents of the application, including an
independent evaluation of the:
(a) financial and management stability
of the applicant;
(b) demonstrated commitment of the
applicant to the community;
(c) cost-benefit analysis of the project
proposed by the applicant;
(d) benefits to the community of a
proposed project;
(e) type or amount of assistance to be
provided;
(f) scope of the affordable housing
project;
(g) substantive or matching contribution
by the applicant to the proposed project; and
(h) performance schedule for the
qualifying grantee with performance criteria;
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(4) a requirement for long-term affordability
of a state, county or municipal project so that a project
cannot be sold shortly after completion and taken out of the
affordable housing market;
(5) a requirement that a grant for a state or
local project must impose a contractual obligation on the
qualifying grantee that the housing units in a state or local
project developed pursuant to the Affordable Housing Act be
occupied by low- or moderate-income households;
(6) provisions for adequate security against
the loss of public funds or property in the event that a
qualifying grantee defaults on a contractual obligation for the
project or abandons or otherwise fails to complete a project;
(7) a requirement for review and approval of a
housing grant project budget by the grantor before any
expenditure of grant funds or transfer of granted property;
(8) a requirement that, unless the period is
extended for good cause shown, the authority shall act on an
application within forty-five days of the date of receipt of an
application that the authority deems to be complete and, if not
acted upon, the application shall be deemed approved;
(9) a requirement that a condition of grant
approval be proof of compliance with all applicable state and
local laws, rules and ordinances;
(10) provisions defining "low- and moderate-
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income" and setting out requirements for verification of income
levels;
(11) a requirement that a county or
municipality that makes a housing assistance grant shall have
an existing valid affordable housing plan or housing elements
contained in its general plan;
(12) a requirement that the governmental
entity enter into a contract with a qualifying grantee
consistent with the Affordable Housing Act, which contract
shall include remedies and default provisions in the event of
the unsatisfactory performance by the qualifying grantee; and
(13) provisions necessary to ensure the timely
sale of an affordable housing project on which a qualifying
grantee has defaulted on a contractual obligation or abandoned
or otherwise failed to complete.
D. The rules adopted by the authority pursuant to
Paragraph (13) of Subsection C of this section shall require a
governmental entity to:
(1) make a determination that the property is
not marketable for a price that would sufficiently recover the
public funds invested in the project;
(2) ascertain that the property has a title
that has been transferred to the contracting governmental
entity through a foreclosure sale, a transfer of title by deed
in lieu of foreclosure or any other manner;
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(3) exercise reasonable efforts to ensure that
all proceeds from the sale of a property pursuant to Paragraph
(13) of Subsection C of this section are used solely for
purposes pursuant to the Affordable Housing Act and that the
qualifying grantee that held title to the property shall not
benefit from the sale of the property or from the transfer of
the affordable housing project; and
(4) provide the terms for:
(a) the sale of the property at fair
market value; and
(b) the removal of the contractual
obligation requiring long-term occupancy of the property by
low- or moderate-income households."
SECTION 6. A new section of the Affordable Housing Act is
enacted to read:
"[NEW MATERIAL] CREDITWORTHINESS ASSISTANCE FUND--
CREATED.--The "creditworthiness assistance fund" is created in
the authority. The fund consists of distributions, gifts,
grants, donations and income from investment of the fund.
Money remaining in the fund at the end of a fiscal year shall
not revert to any other fund. The authority shall administer
the fund, and money in the fund shall be used to provide
creditworthiness assistance grants pursuant to Section 2 of
this 2025 act and to pay the administrative costs of the
authority in carrying out that section."
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SECTION 7. APPROPRIATION.--Two hundred fifty thousand
dollars ($250,000) is appropriated from the general fund to the
department of finance and administration for expenditure in
fiscal year 2026 and subsequent fiscal years to contract with
the New Mexico mortgage finance authority to administer the
creditworthiness assistance fund. Any unexpended or
unencumbered balance remaining at the end of a fiscal year
shall not revert to the general fund.
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