HOUSE BILL 997
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Janice E. Arnold-Jones
AN ACT
RELATING TO HOUSING; LIMITING THE POWER OF REGIONAL HOUSING AUTHORITIES; PROVIDING THAT THE NEW MEXICO MORTGAGE FINANCE AUTHORITY SHALL TEMPORARILY ADMINISTER PROGRAMS AND ASSETS OF THE REGIONAL HOUSING AUTHORITIES AND, AS SOON AS PRACTICABLE, TRANSFER THOSE ASSETS TO PRIVATE OR PUBLIC HOUSING PROGRAMS; PROVIDING FOR AN ACCOUNTING OF THE ASSETS OF THE REGIONAL HOUSING AUTHORITIES; PROVIDING FOR THE DELAYED REPEAL OF THE REGIONAL HOUSING LAW; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Regional Housing Law is enacted to read:
"[NEW MATERIAL] LIMITATION ON POWERS--DUTIES OF THE NEW MEXICO MORTGAGE FINANCE AUTHORITY RELATING TO REGIONAL HOUSING AUTHORITIES.--
A. On the effective date of this section, all regional housing authorities and their programs, real estate, contracts and other assets shall be subject to the direction, administration and control of the New Mexico mortgage finance authority.
B. On and after the effective date of this section, no regional housing authority shall incur any debt, enter into any agreement, acquire any property, perform any act to begin a housing project or exercise any other power except as provided in Subsection C of this section.
C. Subject to the direction, administration and control of the New Mexico mortgage finance authority, a regional housing authority may:
(1) take such actions as are necessary to preserve and maintain assets;
(2) take such actions as are necessary to protect the rights of obligees;
(3) assist the New Mexico mortgage finance authority in transferring or liquidating contracts, real property and other assets of the regional housing authority;
(4) continue to administer public housing programs under contract with the federal government that were entered into prior to the effective date of this section; and
(5) take such actions as are necessary to otherwise prevent the waste of money or other assets belonging to the regional housing authority, the federal government, the state or a political subdivision of the state."
Section 2. TEMPORARY PROVISION--TRANSFER OF ASSETS OF REGIONAL HOUSING AUTHORITIES.--As soon as practicable, the New Mexico mortgage finance authority shall transfer all real estate, contracts, records and other assets of the regional housing authorities to the New Mexico mortgage finance authority, other governmental entities or qualified private nonprofit entities. The transfers shall be subject to the following criteria:
A. a transferee shall not be liable for the debts or obligations of any regional housing authority, except to the extent that the debts or obligations are associated with property transferred and then only to the extent that the debts or obligations can be satisfied from the income or sale of the property;
B. all transferred real property shall continue to be insured in the same manner in which it has been insured against those risks that the New Mexico mortgage finance authority deems advisable;
C. all transferred real property shall continue to be exempt from levy and sale by virtue of execution, and no execution or other judicial action shall be issued against the property; nor shall a judgment against a transferee be a charge or lien on the transferred real property; provided that the provisions of this subsection shall not apply to or limit the right of an obligee to pursue any remedies for the enforcement of any pledge or lien given to the obligee on rents, fees or revenues;
D. all transferred real property is declared to be public property used for essential public and governmental purposes and is exempt from taxation until a deed conveying that property to a nonexempt entity is executed and delivered by the transferee;
E. except as limited by Subsection A of this section, the rights and remedies of obligees pursuant to the Regional Housing Law are continued and may be:
(1) exercised against the transferee to the same extent as they could have been exercised against a regional housing authority; and
(2) used to cause the possession of a housing project or obtain the appointment of a receiver to the same extent as they could have been used under the Regional Housing Law; and
F. as used in this section, "qualified nonprofit entity" means a person that:
(1) has obtained a ruling from the federal internal revenue service approving its status as a 501(c)(3) nonprofit organization whose purpose includes providing affordable housing; and
(2) has been approved by the New Mexico mortgage finance authority through its procurement process.
Section 3. TEMPORARY PROVISION--ADDITIONAL OBLIGATIONS PROHIBITED.--From the effective date of this section through June 30, 2007, notwithstanding any provision of the Regional Housing Law, no regional housing authority shall begin a housing project, issue bonds or otherwise incur a debt or enter into any other agreement under which the housing authority would be obligated to pay money.
Section 4. APPROPRIATION--EXPENSES INCURRED BY NEW MEXICO MORTGAGE FINANCE AUTHORITY.--
A. Two million five hundred thousand dollars ($2,500,000) is appropriated from the general fund to the department of finance and administration for expenditure in fiscal years 2007 through 2010 for the purpose of making disbursements to the New Mexico mortgage finance authority to provide increased housing services and opportunities to persons in the rural and underserved areas of the state. Funding for transitional, operational and administrative expenses incurred in carrying out the provisions of this act and for the expansion and development of a private, nonprofit housing organization is as follows:
(1) one hundred fifty-five thousand dollars ($155,000) for transitional expenses;
(2) one million seven hundred thousand dollars ($1,700,000) for operating expenses; and
(3) six hundred forty-five thousand dollars ($645,000) for administrative expenses.
B. The New Mexico mortgage finance authority shall report on the use of the disbursements to the Mortgage Finance Authority Act oversight committee.
C. Any unexpended or unencumbered balance remaining at the end of fiscal year 2010 shall revert to the general fund.
Section 5. APPROPRIATION--ACCOUNTING OF ASSETS.--Two hundred thousand dollars ($200,000) is appropriated from the general fund to the legislative finance committee for expenditure in fiscal years 2007 and 2008 for the purpose of conducting an accounting of all assets acquired by regional housing authorities pursuant to the Regional Housing Law. No later than December 1, 2007, the results of the accounting shall be presented to the legislative finance committee and to the Mortgage Finance Authority Act oversight committee. Any unexpended or unencumbered balance remaining at the end of fiscal year 2008 shall revert to the general fund.
Section 6. REPEAL.--Sections 11-3A-7, 11-3A-9, 11-3A-11 and 11-3A-14 through 11-3A-17 NMSA 1978 (being Laws 1994, Chapter 132, Sections 7, 9, 11 and 14 through 17, as amended) are repealed.
Section 7. DELAYED REPEAL.--Effective on the earliest of the following dates, Sections 11-3A-1 through 11-3A-6, 11-3A-8, 11-3A-10, 11-3A-12, 11-3A-13 and 11-3A-18 through 11-3A-29 NMSA 1978 (being Laws 1994, Chapter 132, Sections 1 through 6, 8, 10, 12, 13 and 18 through 29, as amended) and Section 1 of this act are repealed:
A. the first day of the fiscal year following the date that the director of the New Mexico mortgage finance authority has certified to the secretary of finance and administration, the New Mexico compilation commission and the New Mexico legislative council that all transfers required by Section 2 of this act have occurred; or
B. July 1, 2010.
Section 8. EFFECTIVE DATE.--The effective date of the provisions of Sections 1, 2 and 6 of this act is July 1, 2007.
Section 9. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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