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SPONSOR: |
Varela |
DATE TYPED: |
|
HB |
222/aHCPAC |
||
SHORT TITLE: |
Statewide Housing Rehabilitation Loans |
SB |
|
||||
|
ANALYST: |
Gilbert |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
$2,500.0 |
|
|
Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
LFC Files
SUMMARY
Synopsis
of HCPAC Amendment
The House Consumer and Public Affairs Committee
amendment to House Bill 222 makes a technical correction to clarify that the
appropriation in this bill is to be used to contract with the
Synopsis
of Original Bill
House
Bill 222 appropriates $2.5 million to the Department of Finance and
Administration to implement a housing rehabilitation loan program for persons
of low or moderate income. The New Mexico Mortgage Finance Authority (NMMFA)
will administer this program on a contractual basis.
Significant
Issues
According
to this bill, the NMMFA is responsible for establishing a housing
rehabilitation loan program to rehabilitate substandard housing, creating of a
revolving loan fund to make loans to eligible persons, and to receiving repayment
of those loans. The NMMFA shall also
promulgate rules for the implementation and administration of this program.
FISCAL
IMPLICATIONS
The
appropriation of $2,500.0 contained in this bill is a recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of
fiscal year 2004 shall revert to the general fund.
According to
the NMMFA, a substantial amount of the loan fund (excluding allocations for administrative
costs and estimated loan defaults of 10%) would be permanent.
ADMINISTRATIVE
IMPLICATIONS
The NMMFA will
combine the administrative details of this program with current rehabilitation
loan programs to minimize the administrative overhead associated with
implementing HB 222.
OTHER
SUBSTANTIVE ISSUES
The NMMFA
states that there is a great need for assistance to eligible persons in need of
housing rehabilitation funds. A grant program would be inefficient, as it would
not assign responsibility to the recipients and would cause a permanent
financial burden to the state.
According
to the NMMFA, the housing stock available to many low and moderate-income persons
is continuing to deteriorate. This development will devalue the affected
properties, thus causing a negative effect on property taxes and, in certain
cases, cause property to become un-repairable.
RLG/njw:yr