Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Anyanonu
LAST UPDATED
ORIGINAL DATE 2/26/2025
SHORT TITLE
Housing Creditworthiness Assistance
Program
BILL
NUMBER House Bill 453
ANALYST Leger
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$250.0 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to House Bill 2 – General Appropriation Act
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Mortgage Finance Authority (MFA)
Department of Finance and Administration Office of Housing
SUMMARY
Synopsis of House Bill 453
House Bill 453 (HB453) amends sections of the Affordable Housing Act (the Act) by adding the
creditworthiness assistance program through the following updates:
Establishes the creditworthiness assistance fund to support the creditworthiness
assistance program and authorizes the New Mexico Mortgage Finance Authority (MFA)
to administer the program.
Incorporates rules on the creditworthiness assistance grants including:
o Requirements for a participant to be eligible to receive a creditworthiness
assistance grant;
o The application for a creditworthiness assistance grant;
o The training program on the importance of budgeting and financial information;
and
o The process for other grantors to administer the creditworthiness assistance
grants.
Establishes the eligibility requirements for non-individual qualifying grantees:
o Possessing a functioning accounting system or identifying an entity with an
accounting system that is operated in accordance with generally accepted
accounting principles and
o Experience with activities related to renting residential housing. House Bill 453 – Page 2
Establishes the eligibility requirements for an individual qualifying grantee that meets all
requirements listed in the Act rules.
Provides grants up to $5,000 of unpaid rent per participant and provides up to $10
thousand of grants per calendar year per landlord. Provides grants up to $2,500 per
participant for rental property damages.
Expands the creditworthiness assistance grants to local governments and state agencies to
use public funds for unpaid rents or damages for participants in the creditworthiness
assistance program.
Allows local governments to provide creditworthiness assistance grants after enacting an
ordinance authorizing the purposes of the grants.
HB453 appropriates $250 thousand from the general fund to the Department of Finance and
Administration (DFA) to contract with the New Mexico Mortgage Finance Authority (MFA) to
administer the creditworthiness assistance fund.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
The appropriation of $250 thousand contained in this bill is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall not revert to
the general fund. Although House Bill 453 does not specify future appropriations, establishing a
new program could create an expectation the program will continue in future fiscal years;
therefore, this cost is assumed to be recurring.
It should be noted that the General Appropriation Act includes a one-time appropriation for the
same purpose.
SIGNIFICANT ISSUES
MFA reports this program may help renters repair their creditworthiness while incentivizing
landlords to rent to tenants with higher credit risk by providing financial compensation for lost
income. The Office of Housing says the program proposed in this bill could be available to
individuals and households facing housing barriers but not experiencing homelessness or
receiving vouchers or other forms of rental support. Pairing landlord incentives with a financial
literacy course for the tenants is an innovative approach to alleviating housing barriers and
potentially preventing homelessness. The City of Las Cruces, City of Albuquerque, and
Bernalillo County have similar programs that expanded affordable housing inventory while
reducing the landlord’s financial risk.
MFA currently offers a landlord collaboration program which incentivizes landlords to rent to
vulnerable populations, including youth exiting the foster care system, by offering assistance for
unpaid rent and property damage. In 2024, MFA implemented the landlord engagement program
that operates through the collaboration with the City of Albuquerque and the New Mexico
Coalition to End Homelessness by offering assistance for unpaid rent and property damage. The
passage of HB453 could expand the landlord incentive programs to administer the funding to
eligible landlords and renters.
House Bill 453 – Page 3
The Office of Housing reports landlord incentives have demonstrated success in convincing
property owners and managers to lease to individuals who may otherwise be considered
unqualified because of their source of income, credit, criminal history, or eviction. Typically, for
people experiencing homelessness these types of programs have been managed by direct service
agencies who conduct landlord outreach and provide case management for tenants who receive
vouchers.
ADMINISTRATIVE IMPLICATIONS
The Office of Housing reports there is currently a statewide landlord assistance program with
$1.6 million available in funding. DFA and MFA are in the final stages of negotiating a contract.
RELATIONSHIP
HB 453 relates to House Bill 2, the General Appropriation Act, appropriating $250 thousand for
a creditworthiness program.
OTHER SUBSTANT IVE ISSUES
MFA is unsure if participants will be able to satisfy the training program requirement in advance
of receiving assistance because individuals usually do not seek assistance until there is an
emergency.
Landlord support programs are only available in the cities of Albuquerque and Las Cruces and
Bernalillo County.
JL/rl/SR