0001|                        SENATE BILL 105
    |
0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
    |
0003|     1996
    |
0004|                         INTRODUCED BY
    |
0005|                     ELIZABETH T. STEFANICS
    |
0006|     
    |
0007|                                
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|                             AN ACT
    |
0012|     RELATING TO HOUSING; PROVIDING FOR FINANCING ASSISTANCE FOR
    |
0013|     RESIDENCES OF DISABLED LOW-INCOME PERSONS; MAKING AN
    |
0014|     APPROPRIATION.
    |
0015|     
    |
0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0017|       Section 1.  [<u>NEW MATERIAL</u>]  LEGISLATIVE INTENT.--The
    |
0018|     legislature finds that New Mexico persons with disabilities are
    |
0019|     at a particular disadvantage in the housing market.  In many
    |
0020|     instances, their disabilities contribute significantly to their
    |
0021|     inability to earn income sufficient to purchase or otherwise
    |
0022|     obtain decent, safe and sanitary residential housing.  The
    |
0023|     legislature's intent in creating and providing for the disabled
    |
0024|     low-income mortgage fund is to provide for suitable housing for
    |
0025|     disabled low-income persons in a manner that provides the
    |
0001|     necessary flexibility of repayment terms to enable such persons
    |
0002|     to afford to purchase housing.
    |
0003|       Section 2.  [<u>NEW MATERIAL</u>]  DISABLED LOW-INCOME MORTGAGE
    |
0004|     FUND--CREATED.--
    |
0005|            A.  The "disabled low-income mortgage fund" is
    |
0006|     created.
    |
0007|            B.  The state housing authority of the economic
    |
0008|     development department shall be the trustee of the disabled
    |
0009|     low-income mortgage fund with authority to administer it in
    |
0010|     accordance with law.
    |

0011|            C.  The disabled low-income mortgage fund shall be a
    |
0012|     revolving fund consisting of money and interest received from
    |
0013|     appropriations, federal grants, gifts, bequests and loan
    |
0014|     repayments.
    |
0015|            D.  Loan repayments, interest earned on loans and
    |
0016|     interest earned on the disabled low-income mortgage fund are
    |
0017|     appropriated to the fund.
    |
0018|       Section 3.  [<u>NEW MATERIAL</u>]  DISABLED LOW-INCOME MORTGAGE
    |
0019|     FUND--PURPOSE--ELIGIBLE USE.--
    |
0020|            A.  The disabled low-income mortgage fund shall be
    |
0021|     used to assist disabled low-income persons to fund all or a
    |
0022|     portion of the financed cost of an ownership interest in their
    |
0023|     sole residence and to pay reasonable administrative costs not to
    |
0024|     exceed two percent of the amount disbursed from the fund.  The
    |
0025|     fund may loan not more than sixty percent of the total purchase
    |
0001|     price, based on financial need determined in accordance with
    |
0002|     regulations of the state housing authority of the economic
    |
0003|     development department.
    |
0004|            B.  Loans from the disabled low-income mortgage fund
    |
0005|     shall be secured by a second or first mortgage on the property. 
    |
0006|     Loans shall be for a period of time not to exceed the lifetime
    |
0007|     of the disabled low-income person.  Required repayments, if any,
    |
0008|     shall be based on the borrower's and any spouse's ability to
    |
0009|     pay.  The loan note shall require any borrower to make an annual
    |
0010|     financial statement and report of income, including marital
    |
0011|     community income, to the state housing authority of the economic
    |
0012|     development department.  Required repayments, if any, shall be
    |
0013|     applied first to taxes and insurance, then to interest and
    |
0014|     lastly to principal; provided that if required repayments are
    |
0015|     insufficient to cover monthly interest, taxes and interest, the
    |
0016|     amount of the insufficiency shall be added to principal on a
    |
0017|     monthly basis, but shall not be deemed to constitute a default
    |
0018|     so long as the required repayment, if any, is made timely.  The
    |
0019|     loan shall be due and payable in full not later than the date of
    |
0020|     the disabled low-income borrower's death.
    |
0021|            C.  The state housing authority of the economic
    |
0022|     development department shall determine a reasonable rate of
    |
0023|     interest on loans from the disabled low-income mortgage fund,
    |
0024|     taking into account market rates and the purpose of the fund. 
    |
0025|     No loan shall exceed fifty thousand dollars ($50,000) during
    |
0001|     calendar years 1996 and 1997.  Thereafter, this limit shall be
    |
0002|     indexed to an appropriate federal consumer price index as
    |
0003|     provided by state housing authority regulations.
    |
0004|            D.  The New Mexico mortgage finance authority shall
    |
0005|     process applications, make recommendations as to eligibility and
    |
0006|     arrange for all necessary documentation, closings and escrow
    |
0007|     arrangements, if applicable, in accordance with regulations of
    |
0008|     the state housing authority of the economic development
    |
0009|     department.
    |
0010|            E.  The term "disabled low-income person" shall be
    |
0011|     defined by regulation of the state housing authority of the
    |
0012|     economic development department; provided that the definition
    |
0013|     shall include only natural persons who are New Mexico citizens
    |
0014|     with physical, mental or developmental disabilities that
    |
0015|     materially contribute to their low-income status.
    |
0016|       Section 4.  Section 11-4-5 NMSA 1978 (being Laws 1975,
    |
0017|     Chapter 102, Section 5, as amended) is amended to read:
    |
0018|       "11-4-5.  POWERS AND DUTIES DEFINED.--In addition to all
    |
0019|     other powers and duties the <s>[state housing]</s> authority may have
    |
0020|     in the Housing Authority Act and other provisions of law, the
    |
0021|     <s>[state housing]</s> authority:
    |
0022|            A.  shall serve as liaison with the governor;
    |
0023|            B.  may apply to any appropriate agency of the United
    |
0024|     States for participation in and for the receipt of aid from any
    |
0025|     housing program;
    |
0001|            C.  shall administer federal and other funds
    |
0002|     <s>[which]</s> <u>that</u> are received, controlled or disbursed for the
    |
0003|     purposes of carrying out the provisions of the Housing Authority
    |
0004|     Act;
    |
0005|            D.  shall coordinate and mobilize housing assistance
    |
0006|     and funding resources in regard to the construction of new
    |
0007|     housing, the rehabilitation of existing housing and rental or
    |
0008|     leasing programs;
    |
0009|            E.  shall be responsible for housing data collection,
    |
0010|     planning and research;
    |
0011|            F.  shall establish and define state housing goals
    |
0012|     and policies in regard to the construction of new housing, the
    |
0013|     rehabilitation of existing structures and rental or leasing
    |
0014|     programs and shall assure proper implementation of rural and
    |
0015|     urban housing programs, consistent with state needs;
    |
0016|            G.  shall coordinate with, assist and seek input from
    |
0017|     local and regional housing authorities;
    |
0018|            H.  shall carry out housing promotion activities and
    |
0019|     public information dissemination;
    |
0020|            I.  shall conduct a biennial review of all regional
    |
0021|     housing authorities' programs and report its findings in writing
    |
0022|     no later than September 1 of each even-numbered year to the
    |
0023|     <s>[finance and administration]</s> department <u>of finance and
</u>    |
<u></u>0024| <u>    administration</u> and to the legislative finance committee;
    |
0025|            J.  shall cooperate with existing organizations in an
    |
0001|     effort to secure all available assistance for rural low-income
    |
0002|     housing;
    |
0003|            K.  shall cooperate with and provide staff support to
    |
0004|     the <s>[housing advisory]</s> committee; <s>[and]</s>
    |
0005|            <u>L.  shall act as trustee of and administer the
</u>    |
<u></u>0006| <u>    disabled low-income mortgage fund; and</u>
    |
0007|            <s>[L.]</s> <u>M.</u>  shall prescribe rules, regulations and
    |
0008|     policies in connection with the performance of its functions and
    |
0009|     duties."
    |
0010|       Section 5.  A new Section 58-18-15.1 NMSA 1978 is enacted
    |
0011|     to read:
    |
0012|       "58-18-15.1.  [<u>NEW MATERIAL</u>]  AUTHORITY--DUTIES--DISABLED
    |
0013|     LOW-INCOME MORTGAGE FUND LOANS.--The authority shall process
    |
0014|     applications, make recommendations as to eligibility and arrange
    |
0015|     for all necessary documentation, closings and escrow
    |
0016|     arrangements for loans from the disabled low-income mortgage
    |
0017|     fund in accordance with regulations of the state housing
    |
0018|     authority of the economic development department."
    |
0019|       Section 6.  APPROPRIATION.--Five hundred thousand dollars
    |
0020|     ($500,000) is appropriated from the general fund to the disabled
    |
0021|     low-income mortgage fund for expenditure in fiscal year 1997 for
    |
0022|     the purpose of implementing the fund's purpose.  Any unexpended
    |
0023|     or unencumbered balance remaining at the end of fiscal year 1997
    |
0024|     shall not revert but shall remain in the fund for expenditure in
    |
0025|     future fiscal years.
    |
0001|       Section 7.  EFFECTIVE DATE.--The effective date of the
    |
0002|         provisions of this act is July 1, 1996.  
    |
0003|   
    |
0004|                    FORTY-SECOND LEGISLATURE
    |
0005|                      SECOND SESSION, 1996
    |
0006|   
    |
0007|   
    |
0008|                                              JANUARY 22, 1996
    |
0009|   
    |
0010|   Mr. President:
    |
0011|   
    |
0012|     Your COMMITTEES' COMMITTEE, to whom has been referred
    |
0013|   
    |
0014|                           SENATE BILL 105
    |
0015|   
    |
0016|   has had it under consideration and finds same to be GERMANE, PURSUANT
    |
0017|   TO CONSTITUTIONAL PROVISIONS, and thence referred to the FINANCE
    |
0018|   COMMITTEE.
    |
0019|   
    |
0020|                              Respectfully submitted,
    |
0021|   
    |
0022|   
    |
0023|   
    |
0024|   
    |
0025|                              __________________________________
    |
0001|                              SENATOR MANNY M. ARAGON, Chairman 
    |
0002|   
    |
0003|   
    |
0004|   
    |
0005|   Adopted_______________________ Not Adopted_______________________
    |
0006|             (Chief Clerk)                        (Chief Clerk)
    |
0007|   
    |
0008|   
    |
0009|                     Date ________________________
    |
0010|   
    |
0011|   
    |
0012|   
    |
0013|   S0105CC1
    |