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





SPONSOR: Miera DATE TYPED: 01/31/01 HB 184
SHORT TITLE: Assist Disabled to Become Homeowners SB
ANALYST: L. Kehoe


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02 FY01 FY02
$ 200.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Relates to Appropriation in The General Appropriation Act



SOURCES OF INFORMATION



NM Finance Mortgage Authority (MFA)

LFC Files



SUMMARY



Synopsis of Bill



House Bill 184 appropriates $200,000 from the general fund to the Department of Finance and Administration for the purpose of providing down payment and technical assistance to persons with disabilities to achieve home ownership.





Significant Issues



Section 1, Subsection A. (1) appropriates $50.0 for a revolving loan fund to be used for down payment assistance to eligible disabled persons desiring to become homeowners.



Subsection A. (2) appropriates $150.0 to provide technical assistance such as financial counseling, independent living strategies, and other related assistance to persons with disabilities to achieve home ownership. In addition, the bill provides for a training program for volunteers to assist and educate eligible persons about housing options.



Subsection B. includes a reversion clause.





FISCAL IMPLICATIONS



The appropriation of $200.0 contained in this bill is a recurring expense to the General Fund. Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2002 shall revert to the General Fund.



House Bill 184, creates a new revolving loan fund and does not provide for continuing appropriations. However, if the program is successful, it can be anticipated that funding will be requested in the future.



ADMINISTRATIVE IMPLICATIONS



The Department of Finance and Administration (DFA) does not administer home ownership programs. However, DFA may enter into a Joint Powers Agreement with the New Mexico Finance Mortgage Authority (MFA) to administer the program. According to MFA, they would contract with a non-profit agency that specializes in providing housing services to disabled persons. The MFA has the resources and expertise to monitor and gauge the performance of the awarded agency.



POSSIBLE QUESTIONS