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
Sens. Stefanics, Sharer, Thornton, and
Block/Rep. Sariñana
LAST UPDATED
ORIGINAL DATE 02/07/225
SHORT TITLE Veteran Transitional Housing
BILL
NUMBER Senate Bill 273
ANALYST Gygi
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 (NMMFA)
Veterans' Services Department (VSD)
SUMMARY
Synopsis of Senate Bill 273
Senate Bill 273 appropriates $500 thousand from the general fund to the Veterans' Services
Department (VSD) to contract for services to support transitional housing for veterans and their
families.
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
VSD states it can absorb the workload for this contract into current processes and staff duties and
does not foresee any additional fiscal impact.
The appropriation of $500 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 revert to the
general fund.
Senate Bill 273 – Page 2
SIGNIFICANT ISSUES
New Mexico faces a shortage of resources and services for homeless or at-risk veterans in rural
and remote areas, particularly those with families. VSD’s Healthcare Division coordinates with
partners statewide to address transitional living and housing for veterans. According to the U.S.
Department of Housing and Urban Development (HUD), in 2024 approximately 6.7 percent
(298) of the homeless population (4,450) in New Mexico were veterans.
1
This number reflects
the number of individuals identified by survey as being unhoused on a single night in January
2024. The total number of New Mexican veterans experiencing homelessness or housing
instability over a longer time period is larger but difficult to quantify.
Transitional housing offers individuals and families housing for up to a year, together with
supportive services to obtain interim stability and the ability to move into permanent housing.
Currently, transitional housing options for veterans outside metropolitan areas include the tiny
home village in Socorro and off-grid housing in Taos and Carson. The Supportive Services for
Veterans and Families (SSVF) program funded by the U.S. Veterans Services Administration
(VA) offers case management, housing assistance, employment support, and suicide prevention
for veterans statewide. Additionally, VA’s HUD-VASH program provides housing vouchers for
eligible homeless veterans and families.
New Mexico lacks sufficient transitional housing statewide to ensure at-risk populations exit
homelessness and attain housing security. A 2022 New Mexico housing strategy report
commissioned by the New Mexico Mortgage Finance Authority estimated transitional housing
only accounted for 1 percent of the $123 million public allocations to rental assistance in 2022,
and 7 percent of the $123 million that went to permanent supportive housing.
2
The report noted
several estimates ranging from 6,500 to 8,400 units needed for at-risk populations, including the
chronically homeless, people on the state’s developmental disabilities waiting list, and people
exiting prison or mental health institutions.
KG/hj/SL2
1
2024 HUD Homeless Assessment Report, https://www.huduser.gov/portal/sites/default/files/pdf/2024-AHAR-Part-
1.pdf
2
https://housingnm.org/the-new-mexico-housing-strategy