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
SPONSOR: |
Boitano |
DATE TYPED: |
|
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)
Regulation & Licensing Department,
Financial Institutions Division (FID)
Office of Attorney General (AGO)
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
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