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 O’Malley/Stewart
LAST UPDATED
ORIGINAL DATE 2/28/2025
SHORT TITLE Affordable Housing Organization Support
BILL
NUMBER Senate Bill 422
ANALYST Leger
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$5,000.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to House Bill 448 and Senate Bills 190 and 205
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Mortgage Finance Authority (MFA) Department of Finance and Administration – Office of Housing
State Ethics Commission
SUMMARY
Synopsis of Senate Bill 422
Senate Bill 422 (SB422) appropriates $5 million from the general fund to the Department of
Finance and Administration (DFA) for the New Mexico Mortgage Finance Authority (MFA) to
provide operational funding and technical assistance grants to nonprofit organizations that
provide affordable housing, homeless services, or transitional housing in fiscal years 2026
through 2030.
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 $5 million contained in this bill is a nonrecurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY30 shall revert to the
general fund.
MFA reports there are approximately $19.2 million in federal and state funds available for more Senate Bill
422 – Page 2
th
an 30 non-profit service providers for homeless shelter activities and operatio ns.
SIGNIFICANT ISSUES
Accor
ding to MFA, the need for operational funding far exceeds available resources. Funding
f
or affordable housing non-profit organizations, particularly th ose providing homelessness and
homelessness prevention services, is limited. The appropriation would strengthen
the non-profit
ser
vice providers that provide direct services to some of the states most v ulnerable residents.
The Office of Housing rep
orts that non-profit general operating su pport is a critical issue in
r
ecent years; potential cuts at the federal level to h ousing related programs could exacerbate
th
is issue.
ADMINISTRATIVE IMPLICATIONS
MFA serves as the state’s primary administrator for
affordable housing funding and has the
capacity to impactfully deploy funds to non-profit service providers.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to Senate Bill 190 creates the Homelessn
ess Reduction Division at the Health Care
Authority to reduce h
omelessness and unnecessary institutionalization in the state and create
a “h
omeless data integration system” to collect local data through homeless
management information systems.
Relates to duplicate bills Se
nate Bill 205 and House Bill 488, which create the Office o f Housing
Planning and Production, administr
atively attached to DFA. The purpose of the office is to
r
educe housing costs, increase statewide housing availability, maximize resources to address
statewide housing n
eed, address underlying factors that impact ho using costs, grow local
p
rograms and capacity to address needs and further fair housing, identify state resources for
housing, and track housing progress thr
ough goal setting and data.
The Office of Housing reports SB422 is somewhat duplicative of what is contemplated at the
core role of the Office of Housing Planning
and Production, which aims to provide state support
to
non-profits and local government initiatives to start new or grow existing h ousing programs.
The office is operatin
g under executive authority and has housing and h omeless expertise on
staff.
OTHER SUBSTANTIVE ISSUES
According to the State Eth
ics Commission, while Article IX, Section 14 of the New Mexico
C
onstitution (the “Anti-Donation Clause”) generally prohibits a p ublic entity from
p
roviding funds to a private p erson or organization, this appropriation does not create an
impermissible “donation” under that constitutio
nal provision. In 2 004, the Legislature enacted
th
e Affordable Ho using Act, which grants the MFA specific powers and duties related to
p
roviding affordable h ousing. Because this expenditure would fall under that exception, it
would not be prohibited b
y the Anti-Donation Clause.
JL/hj/SL2/rl