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F I S C A L I M P A C T R E P O R T
SPONSOR Lujan, B.
ORIGINAL DATE
LAST UPDATED
2/8/06
HB 659
SHORT TITLE New Mexico Housing Trust Fund
SB
ANALYST Kehoe
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$5,000.0
NFI Non-Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
$5,000.0
NFI
NFI Non-Recurring Housing Trust
Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
New Mexico Mortgage Finance Authority (MFA)
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of Bill
House Bill 659 transfers $5 million from the general fund to the New Mexico Housing Trust
Fund for the purpose of caring out the provisions of the New Mexico Housing Trust Fund Act.
The New Mexico Mortgage Finance Authority (MFA) is the trustee of the fund and the State In-
vestment Council acts as investment agent for the fund.
pg_0002
House Bill 659 Page
2
FISCAL IMPLICATIONS
The New Mexico Housing Trust Fund was created in 2005, Chapter 105, initially capitalized
with a $10 million appropriation. The purpose of the trust fund is to provide infrastructure for
affordable housing statewide.
The fund is managed by the New Mexico Mortgage Finance Au-
thority in conjunction with a Housing Trust Fund Advisory Committee. The MFA governing
body is responsible for ensuring that on an annual basis the total funds awarded for housing ac-
tivities attract at least three times as much funding from other sources.
House Bill 659 provides a transfer of $5 million to the Housing Trust Fund on the effective date
of enactment of the bill. Any unexpended balances remaining at the end of a fiscal year shall not
revert to the general fund.
SIGNIFICANT ISSUES
Over 29 applications were submitted to MFA for funding in its inaugural round of financing. Of
the proposed projects, nine were funded for over $6 million. According to MFA, the funding
will result in the development or rehabilitation of 578 housing units throughout the state, 544 of
which will be single family homeownership units. The projects leveraged an additional $103
million in other financing sources. The majority of the units will house low and moderate income
families.
According to MFA, six more applications were received in the second application process which
ended January 13, 2006 totaling $5.2 million. However, only $4 million remains in the Housing
Trust Fund. The MFA anticipates the 2005 funding will be entirely obligated by September 30,
2006.
House Bill 659 would provide additional funding to allow another round of applications to meet
unaddressed housing needs throughout the state and will sustain the purpose of the fund.
OTHER SUBSTANTIVE ISSUES
The New Mexico Housing Trust Fund Advisory Committee consists of nine members who shall
represent geographically the state, affordable housing advocates and practitioners. The nine
members will consist of three public members appointed by the governor; three public members
appointed by the President Pro Tempore of the Senate; and three public members appointed by
the Speaker of the House of Representatives. Members of the committee shall be appointed for
two-year terms and be eligible for reappointment.
LMK/nt