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 Gonzales, R.
LAST UPDATED
ORIGINAL DATE 1/30/2025
SHORT TITLE Affordable Housing Act Funding
BILL
NUMBER Senate Bill 144
ANALYST Leger
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected $500.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Mortgage Finance Authority (MFA)
SUMMARY
Synopsis of Senate Bill 144
Senate Bill 144 appropriates $500 thousand from the general fund to the Department of Finance
and Administration for expenditure by the New Mexico Mortgage Finance Authority (MFA) to
carry out the purposes of the Affordable Housing Act for FY26.
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 $500 thousand contained in this bill is a nonrecurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall not
revert to the general fund.
SIGNIFICANT ISSUES
Enacted in 2004, the Affordable Housing Act (AHA) allows local governments to donate
resources to create and maintain affordable housing in their communities. With an approved
affordable housing plan and a local or county ordinance in place, communities can donate or
make contributions towards the acquisition, development, financing, operation, and maintenance Senate Bill 144 – Page 2
of affordable housing; donations are exempt from the Anti-Donation Act. In the AHA, MFA is
charged with rulemaking authority and oversight but receives no funds for these purposes.
According to MFA the appropriation will enable them to 1) oversee the Affordable Housing Act,
including review and approval of plans and ordinances, 2) provide direct technical assistance to
local governments in the drafting of affordable housing plans and affordable housing ordinances,
and 3) offer planning and implementation grants to local governments on an as-needed basis.
The funding could be leveraged with planning grant funding offered through MFA.
Furthermore, MFA reports the priority for this funding is to help local governments,
municipalities, and jurisdictions implement approved housing plans and ordinances, paving the
way for communities to increase housing stock and deploy housing solutions that meet local
needs while leveraging local resources. Since the passage of the AHA, MFA has helped 39 local
governments create affordable housing plans and ordinances. These local governments have
donated land and resources totaling $117.8 million for affordable housing to date.
ADMINISTRATIVE IMPLICATIONS
In 2019, MFA received $250 thousand for the same purpose and was able to help nine local
governments achieve AHA compliance. MFA currently employs one FTE for AHA oversight.
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