AN ACT
RELATING TO REGIONAL HOUSING; AMENDING
THE REGIONAL HOUSING LAW TO CHANGE A CERTAIN DEFINITION AND TO ALLOW BONDS TO
BE SOLD AT NEGOTIATED SALES.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 11-3A-3 NMSA 1978 (being Laws 1994,
Chapter 132, Section 3, as amended) is amended to read:
"11-3A-3. DEFINITIONS.--As used in the Regional Housing
Law:
A. "authority" means any regional
housing authority or a nonprofit corporation created by an authority;
B. "bond" means any bond, note,
interim certificate, debenture or other obligation issued by an authority
pursuant to the Regional Housing Law;
C. "federal government" includes the
United States of America, programs of the United States department of housing
and urban development, the farmers home administration and rural development
administration of the United States department of agriculture or housing
programs or any other agency or instrumentality, corporate or otherwise, of the
United States of America;
D.
"housing project" means an undertaking of an authority to:
(1) demolish, clear or remove buildings from any
slum area. The undertaking may embrace
the adaptation of the area to public purposes, including parks or other recreational
or community purposes; or
(2) provide decent, safe and sanitary dwellings,
apartments, single-family dwellings or other living accommodations for
low-income persons. The undertaking may
include buildings, land, equipment, facilities and other real or personal
property for necessary, convenient or desirable appurtenances, streets, sewers,
water service, parks, site preparation or gardening or administrative,
community, health, recreational, welfare or other purposes. "Housing
project" also may be applied to the planning of buildings and
improvements, acquisition of property or existing structures, demolition of
existing structures, construction, reconstruction, alteration and repair of
improvements or buildings or any other work performed to complete housing
projects;
E. "local public body" means any
county, municipality, commission, district or other subdivision of the state;
F. "low-income person" means:
(1) an individual, couple or family who lacks the
amount of income that is necessary, as determined by rule of the authority, to
enable that individual, couple or family, without financial assistance, to live
in decent, safe and sanitary dwellings without overcrowding; or
(2) a low-income person as defined by the federal
government;
G. "obligee" means:
(1) a holder of bonds issued pursuant to the
Regional Housing Law or a trustee for that bondholder;
(2) a lessor leasing to an authority property
used in connection with a housing project or any assignee of a lessor's
interest or partial interest; or
(3) the federal government when it is a party to
a contract with an authority in regard to a housing project;
H. "real property" includes all lands,
including improvements and fixtures on the land, property of any nature
appurtenant to or used in connection with the land and every estate, interest
and right, legal or equitable, in the land, including terms for years and liens
by way of judgment, mortgage or other instrument and the indebtedness secured
by the lien; and
I. "slum" means any area where
dwellings predominate, which by reason of dilapidation, overcrowding, lack of
ventilation, light or sanitary facilities or any combination of these factors
are detrimental to safety, health or morals."
Section 2. Section 11-3A-15 NMSA 1978 (being Laws 1994,
Chapter 132, Section 15, as amended) is amended to read:
"11-3A-15. FORM AND SALE OF BONDS--INTEREST ON CERTAIN
OBLIGATIONS.--
A. Bonds of an authority issued pursuant to the
provisions of the Regional Housing Law shall be authorized by a resolution of
the regional authority's board. The
resolution, its trust indenture or the bonds to be issued shall set forth with
regard to the bonds the date of issuance, the date of maturity, the rates of
interest that the bonds will bear, the denominations, the form, either coupon
or registered, the conversion or registration privileges, the rank or priority,
the manner of execution, the medium and place of repayment and the terms of
redemption, with or without premiums.
B. Obligations issued by an authority that are
true loan obligations made to the farmers home administration of the United
States department of agriculture or the department of housing and urban
development may bear interest at a rate of interest not exceeding par.
C. The bonds shall be sold at not less than par
at a negotiated or public sale. If sold
at a public sale, the sale shall be held after notice published once at least
five days prior to the sale in a newspaper having a general circulation in the
authority; provided that the bonds may be sold to the federal government at
private sale at not less than par, and, in the event fewer than all of the
bonds authorized in connection with any housing project are sold to the federal
government, the balance of the bonds may be sold at private sale at not less
than par at an interest cost to the authority that does not exceed the interest
cost to the authority of the portion of the bonds sold to the federal
government.
D. If an officer of an authority or any of its
instrumentalities whose signature appears on bonds issued pursuant to the
Regional Housing Law ceases to hold that office before the delivery of the
bonds, the signature shall, nevertheless, be valid and sufficient for all
purposes the same as if the officer had remained in office until delivery. Any provision of any law to the contrary
notwithstanding, any bonds issued pursuant to the Regional Housing Law shall be
fully negotiable.
E. In any suit, action or proceedings involving
the validity or enforceability of any bond of an authority or the security for
the bonds, any bond reciting in substance that it has been issued by the
authority to aid in financing a housing project to provide dwelling
accommodations for low-income persons shall be conclusively deemed to have been
issued for a housing project of that character, and the housing project shall
be conclusively deemed to have been planned, located and constructed in
accordance with the purposes and provisions of the Regional Housing Law."
HB 421
Page 5