NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Boitano

 

DATE TYPED:

02/09/03

 

HB

 

 

SHORT TITLE:

Fetus As Dependent Child for MFA Loan

 

SB

430

 

 

ANALYST:

Kehoe

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

NFI

 

See Narrative

Recurring

Federal

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Regulation & Licensing Department,

Financial Institutions Division (FID)

Office of Attorney General (AGO)

New Mexico Mortgage Authority (MFA)

Legislative Finance Committee Files (LFC)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 430 requires the New Mexico Mortgage Finance Authority (MFA), by rule, to classify a nine month old or older in utero fetus as a dependent child for the purpose of determining loan assistance eligibility.

 

     Significant Issues

 

The New Mexico Mortgage Finance Authority is a semi-autonomous instrumentality of the State of New Mexico created under the Mortgage Finance Act (Laws of 1975, Chapter 303), and authorized to administer various programs to assist low- and moderate-income persons in the state with financing of housing.  The majority of housing and community development resources administered by MFA are characterized as “federal” and “other.”  Nearly all loan programs administered by MFA require compliance, either directly or indirectly, with federal law and regulations (OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations) that control MFA eligibility requirements for loans.

 

Federal resources comprise the four Housing & Urban Development (HUD) formula grants awarded to the state each year (Small Cities Community Development Block Grant, Home Investment Partnerships Program, Emergency Shelter Grant and Housing Opportunities for Persons with AIDS), as well as HUD-funded grants for which the MFA, the Department of Finance and Administration’s Local Government Division, and partner agencies compete (Supportive Housing Program, Rural Housing and Economic Development, Housing Counseling).  Federal resources also include Internal Revenue Service-funded mortgage revenue bonds and Low Income Housing Tax Credits, Weatherization Assistance Program monies awarded by the Department of Energy and Department of Agriculture-funded rural housing dollars.  Other resources consist of MFA Housing Opportunity and General Fund dollars, taxable bonds, 501©(3) bonds state appropriations and the Land Title Trust Fund.

 

Certain mortgage loans of the Authority are insured by the Federal Housing Administration (FHA) and partially guaranteed by the Veterans Administration (VA).  The Authority also participates in the Risk Sharing loan program.  Under the program, the Department of Housing and Urban Development (HUD) provides credit enhancements for multi-family housing project loans.  HUD and the Authority share in the risk of loss on the mortgage.    

 

FISCAL IMPLICATIONS

 

According to the New Mexico Office of Attorney General, any rule adopted by MFA to recognize an in utero fetus of a woman in her ninth or later month of pregnancy as a dependent child for loan eligibility purposes, may have no effect under federal eligibility requirements and may jeopardize MFA’s continued receipt of federal funds or participation in federal program with eligibility requirements in conflict with such a rule. 

 

LMK/yr