Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Rodriguez		DATE TYPED:	2/9/99		HB
SHORT TITLE:		Low Income Housing & Land Title Trust Acts				SB	319
					ANALYST:		Valenzuela

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	NFI		NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

Financial Institutions Division of the Regulation and Licensing Department

SUMMARY

Synopsis of Bill

Two statutes exist to support low-income persons in securing home ownership: the Low-Income Housing Trust Act (Section 58-13B-3 NMSA 1978) and the Land Title Trust Fund Act (Section 58-28-3 NMSA 1978). Senate Bill 319 would combine these two funds to provide for a single distribution method to low income persons. The bill makes the following changes:

Makes participation, by real estate brokers, voluntary. The current statute requires brokers to participate.

Designates the director of the Financial Institutions Division as the rulemaking authority. The current statute designates the New Mexico Real Estate Commission, which is comprised of real estate brokers.

Removes the criteria in the Low Income Housing Trust Fund Act for how the funds will be used and instead adopts the parameters identified in the Land Title Trust Fund Act.

Directs the trustee (the Mortgage Finance Authority) to deposit the balance of the Low Income Housing Trust Fund into the Land Title Trust Fund.

Significant Issues

According to the Regulation and Licensing Department (RLD), the implementation of the Low Income Housing Trust Act has never fully occurred. The bill seeks to eliminate redundancies that exist between these two acts that are similar in purpose.

FISCAL IMPLICATIONS

Senate Bill 319 does not contain an appropriation. Implementation would have no fiscal impact.

ADMINISTRATIVE IMPLICATIONS

Existing rules for both acts would need to be amended, but would not require additional resources and could be accomplished with relatively little disruption to the RLD.

MV/njw