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SPONSOR: |
Romero |
DATE TYPED: |
03/01/03 |
HB |
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SHORT TITLE: |
State Housing Trust Fund Revenue Sources |
SB |
SJM 64 |
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ANALYST: |
Kehoe |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
New
Mexico Mortgage Finance Authority (MFA)
SUMMARY
Synopsis of Bill
Senate Joint Memorial
64 requests the New Mexico Mortgage Finance Authority (MFA) to convene and lead
a task force comprised of stakeholders to recommend revenue sources for a state
housing trust fund.
Significant
Issues
SJM 64 is a result of SJM 15 passed during the
2202 Legislative Session requesting MFA to conduct a State Housing Trust Fund
Feasibility Study. MFA completed the
study and reported its findings to the New Mexico Mortgage Finance Authority
Oversight Committee in November 2002.
SJM 64 requests that a taskforce lead by MFA and comprised of a
geographically diverse group of stakeholders perform an analysis of funding
sources. The results will serve as a
reference and will facilitate discussions regarding a statewide housing trust
fund and will provide policy guidance for legislators, the governor and other
decision-makers to address the housing needs in New Mexico.
FISCAL IMPLICATIONS
The State Housing
Trust Fund Feasibility Study included a possible revenue stream from various
sources. One option proposes a
combination of minor increases in certain licensing fees, a per unity surcharge
paid by private activity bonds issuers, portions of general fund distribution
of both the unclaimed property and severance tax permanent funds and existing
Land Title Trust Fund revenues. MFA
estimates the combination of funds could provide an estimated $3.9 million in
the first year, but would require a $3.1 million appropriation from the
legislature in succeeding years. Other
proposed funding options developed by the proposed task force will be reported
on by the time the next legislature convenes in 2004.
The New Mexico Mortgage Finance Authority
(MFA), a non-government entity, was established by the 1975 Legislature to
assist in providing adequate housing for families of low and moderate income
who are unable to be served by the private sector.
On behalf of
the State of New Mexico, the MFA administers numerous housing and homeless
programs. The funding sources for
housing services are derived from state, federal, MFA general fund, the Land
Title Trust Fund, and private resources.
The MFA has provided more than $2 billion in affordable housing grants
and loans, administers a $12 million self-funded low income Housing Opportunity
Fund, and receives no operating funds from the state. Excluding federal and state programs, the MFA’s book assets
through June 30, 2001 exceed $l.3 billion.
Including federal and state programs, MFA’s assets under management are
almost $2.1 billion.
As the state’s
designated affordable housing authority, MFA has the capability and staff
support to lead a task force to examine revenue streams for a statewide housing
trust fund.
LMK/njw:sb