New Mexico Mortgage Finance Authority Legislative Oversight Committee 2020 Reference Manual September 11, 2020 800.444.6880 housingnm.org New Mexico Mortgage Finance Authority 2020 Reference Guide Table of Contents Legislative Overview 1 Mortgage Finance Authority Act Oversight Committee Members 2 Mortgage Finance Authority Act 3 MFA Rules and Regulations 4 MFA 2020 Legislative Agenda Organizational Overview 5 MFA Board of Directors 6 MFA Organizational Chart 7 MFA Strategic Plan 8 Top Ten MFA Myths 9 MFA Estimated Funding Sources Program Overview 10 Summary of Audits 11 Federal Housing Program Fund Summary 12 Low Income Housing Tax Credit (LIHTC) Developments in NM 13 MFA’s All Program Fact Sheet 14 New Mexico Housing Needs Assessment 15 Glossary of Terms and Acronyms Tab 1 800.444.6880 housingnm.org 2020 Legislative Oversight Committee Senator Nancy Rodriguez, Chair (D) Representative Eliseo Lee Alcon, Vice Chair (D) 1838 Camino La Canada Box 2134 Santa Fe, NM 87501 Milan, NM 87021 Senator Gregory A. Baca - (R) Representative Alonzo Baldonado (R) P.O. Box 346 Box 370 Belen, NM 87002 Los Lunas, NM 87031 Senator Stuart Ingle (R) Representative Rod Montoya (R) 2106 West University Drive 4902 Camaron Ave. Portales, NM 88130 Farmington, NM 87402 Senator Michael Padilla (D) Representative Andrea Romero (D) PO Box 67545 1101 Hickox St. Albuquerque, NM 87193 Santa Fe, NM 87505 ADVISORY MEMBERS Representative Rachel A. Black (R) Senator Richard C. Martinez (D) 1907 Puerto Rico Ave Box 762 Alamogordo, NM 88310 Espanola, NM 87532 Representative Kelly K. Fajardo (R) Senator Gerald Ortiz y Pino (D) 1402 Main Street #B501 400 12th Street NW Los Lunas, NM 87031 Albuquerque, NM 87102 Representative Georgene Louis (D) Senator Sander Rue (R) 10104 Round Up Place SW 7500 Rancho Solano Court NW Albuquerque, NM 87121 Albuquerque, NM 87120 Representative Javier Martínez (D) Representative Sheryl Williams Stapleton (D) Albuquerque, NM 87104 Box 25385 Albuquerque, NM 87125 Tab 2 CHAPTER 58. FINANCIAL INSTITUTIONS AND REGULATIONS ARTICLE 18. MORTGAGE FINANCE AUTHORITY N.M. Stat. Ann. § 58-18-1 (2013) § 58-18-1. Short title Chapter 58, Article 18 NMSA 1978 shall be known and may be cited as the "Mortgage Finance Authority Act". HISTORY: 1953 Comp., § 13-9-1, enacted by Laws 1975, ch. 303, § 1; 1982, ch. 86, § 1. § 58-18-2. Legislative findings; declaration of purpose A. The legislature finds and declares that there exists in the state of New Mexico a serious shortage of decent, safe and sanitary residential housing available at prices and rentals within the financial means of persons and families of low or moderate income. This shortage is severe in certain urban areas of the state, is especially critical in the rural areas and is inimical to the health, safety, welfare and prosperity of all residents of the state. B. The legislature finds and determines that the shortage of residential housing causes overcrowding and congestion and exacerbates existing slum conditions, which, in turn, contribute substantially and increasingly to the spread of disease and crime, impair economic values, necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health, welfare and safety programs, fire and accident protection and other services, substantially impair or arrest the growth of municipalities, aggravate traffic problems and promote juvenile delinquency and other social ills. C. The legislature finds and declares further that private enterprise unaided has not been able to produce the needed construction of decent, safe and sanitary residential housing at prices and rentals that persons and families of low or moderate income can afford or to achieve the urgently needed rehabilitation of much of their present housing. It is imperative that the supply of residential housing for persons and families of low or moderate income be increased substantially and that private enterprise and investment be encouraged to sponsor, build and rehabilitate residential housing for such persons and families. D. It is found and declared that a major cause of this housing shortage is the lack of funds in private banking channels available for affordable residential mortgages. This lack of funds has contributed to drastic reductions in construction starts of new residential housing and has frustrated the sale and purchase of existing residential housing in the state. E. It is further found and declared that the drastic reduction in residential construction starts and in residential rehabilitation projects associated with housing shortages has caused a condition of substantial unemployment and underemployment in the construction industry, which results in hardships to many individuals and families, wastes vital human resources, increases the public 1 assistance burdens of the state and its municipalities, impairs the security of family life, impedes the economic and physical development of municipalities and adversely affects the welfare and prosperity of all the people of the state. A stable supply of adequate funds for affordable residential mortgages is required to spur new housing starts and the rehabilitation of existing units in an orderly and sustained manner and thereby to reduce the hazards of unemployment and underemployment in the construction industry. The unaided operations of private enterprise have not met and cannot meet the need for a stable supply of adequate funds for affordable residential mortgage financing. F. The legislature further finds and determines that for the purposes of remedying these conditions, helping to alleviate the shortage of adequate housing and encouraging and providing the financing for the acquisition, construction, rehabilitation and improvement of residential housing for persons and families of low or moderate income within the state, a public body politic and corporate, separate and apart from the state, constituting a governmental instrumentality to be known as the New Mexico mortgage finance authority should be created with power to raise funds from private and public investors, to make funds available for such purposes, to create and implement programs from time to time as may be necessary or appropriate to accomplish its purposes and to assist, administer, finance or service housing programs for or through private and nonprofit organizations and local, state, federal and tribal agencies or their instrumentalities. The legislature finds and declares further that in accomplishing these purposes, the New Mexico mortgage finance authority is acting in all respects for the benefit of the people of the state in the performance of essential public functions and is serving a valid public purpose in improving and otherwise promoting their health, welfare and prosperity, and that the enactment of the provisions set forth in the Mortgage Finance Authority Act [58-18-1 NMSA 1978] is for a valid public purpose and is declared to be such as a matter of express legislative determination. HISTORY: 1953 Comp., § 13-19-2, enacted by Laws 1975, ch. 303, § 2; 1995, ch. 9, § 1. § 58-18-2.1. Multiple-family, transitional and congregate dwellings; supplemental legislative findings and purpose The legislature finds and declares that there is a critical shortage of multiple-family, transitional and congregate dwellings that provide decent, safe and sanitary residential housing at rentals that persons and families of low or moderate income can afford. It is further found and declared that private individuals, organizations and entities willing to undertake the construction of multiple-family, transitional and congregate dwellings are unable to obtain loans at sufficiently low interest rates to finance multiple-family, transitional and congregate dwelling projects for persons and families of low or moderate income. Providing mortgage loans at below-market interest rates for multiple-family, transitional and congregate dwellings would increase substantially the availability of multiple-family, transitional and congregate dwellings for occupancy by persons and families of low or moderate income and is expressly declared to be a valid public purpose and a corporate purpose that may be exercised by the authority. HISTORY: 1978 Comp., § 58-18-2.1, enacted by Laws 1982, ch. 86, § 2; 1995, ch. 9, § 2. § 58-18-3. Definitions As used in the Mortgage Finance Authority Act [58-18-1 NMSA 1978]: 2 A. "authority" means the New Mexico mortgage finance authority; B. "bonds" or "notes" means the bonds or bond anticipation notes, respectively, issued by the authority pursuant to the Mortgage Finance Authority Act [58-18-1 NMSA 1978]; C. "federal government" means the United States of America and any agency or instrumentality of the United States of America; D. "FHA" means the federal housing administration; E. "FHLMC" means the federal home loan mortgage corporation; F. "FNMA" means the federal national mortgage association; G. "home improvement loan" means a mortgage loan to finance those alterations, repairs and improvements on or in connection with an existing residence that the authority determines will substantially protect or improve the basic livability or energy efficiency of the residence; H. "mobile home" means a movable or portable housing structure, constructed to be towed on its own chassis and designed to be installed with or without a permanent foundation for human occupancy as a residence; it may include one or more components that can be retracted for towing purposes and subsequently expanded for