NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 90

SOURCES OF INFORMATION

New Mexico Mortgage Finance Authority (MFA)

LFC Files

SUMMARY

Synopsis of Bill

House Bill 200 appropriates $1,000.0 from the general fund to the Department of Finance and Administration for the purpose of contracting for a statewide re-roofing program for low-income homeowners who qualify for the home weatherization assistance program.

Significant Issues

House Bill 200 addresses the substantial number of requests to the MFA from low-income persons in need of emergency assistance with roof repairs or roof replacements. According to MFA, the program would be a state "grant" program available for dwellings of a minimum of 180 low-income homeowners who qualify for the Weatherization Assistance Program (WAP). The administrative costs of the program are not to exceed ten percent of the appropriation and the service cost is to be limited to $5.0 per dwelling. Except for the exclusion of rental units, all other WAP eligibility criteria would be applied to the new program.

According to MFA, WAP has changed dramatically over the past twenty years from a program that installed low-cost/no cost retrofits with unskilled labor, to a highly technical program requiring skilled labor and the inclusion of health and safety protocols-a dramatic improvement in the benefits to the families served by the program.

FISCAL IMPLICATIONS

The bill appropriates $1,000.0 in general fund and any balances remaining at the end of FY01 revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

The Department of Finance and Administration currently contracts with the MFA to administer the weatherization assistance program. If House Bill 200 is enacted, it is expected that DFA would contract the roof program services to MFA.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 200 relates to Senate Bill 90 which appropriates $1 million from the general fund to rehabilitate homes for the indigent in unincorporated areas of Bernalillo County.

OTHER SUBSTANTIVE ISSUES

The new concept contained in House Bill 200 is being actively supported by El Paisano in Albuquerque, Open Hands in Santa Fe, the Community Action Agency in Las Cruces and Roswell, and the MFA.

LMK/njw:gm