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AN ACT

RELATING TO HOUSING; LIMITING THE POWER OF REGIONAL HOUSING

AUTHORITIES; EXPANDING REPORTING REQUIREMENTS; TRANSFERRING

BONDING CAPACITIES; AMENDING, REPEALING AND ENACTING SECTIONS

OF THE REGIONAL HOUSING LAW; MAKING AN APPROPRIATION;

DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 11-3A-3 NMSA 1978 (being Laws 1994,

Chapter 132, Section 3, as amended) is amended to read:

"11-3A-3. DEFINITIONS.--As used in the Regional Housing

Law:

A. "authority" means any regional housing

authority or a nonprofit corporation created by an authority;

B. "bond" means any bond, note, interim

certificate, debenture or other obligation issued by the New

Mexico mortgage finance authority pursuant to the Regional

Housing Law;

C. "federal government" includes the United States

of America, programs of the United States department of

housing and urban development, the farmers home

administration and rural development administration of the

United States department of agriculture or housing programs

or any other agency or instrumentality, corporate or

otherwise, of the United States of America;

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D. "housing project" means an undertaking of an

authority to:

(1) demolish, clear or remove buildings from

any slum area. The undertaking may embrace the adaptation of

the area to public purposes, including parks or other

recreational or community purposes; or

(2) provide decent, safe and sanitary

dwellings, apartments, single-family dwellings or other

living accommodations for low-income persons. The

undertaking may include buildings, land, equipment,

facilities and other real or personal property for necessary,

convenient or desirable appurtenances, streets, sewers, water

service, parks, site preparation or gardening or

administrative, community, health, recreational, welfare or

other purposes. "Housing project" also may be applied to the

planning of buildings and improvements, acquisition of

property or existing structures, demolition of existing

structures, construction, reconstruction, alteration and

repair of improvements or buildings or any other work

performed to complete housing projects;

E. "local public body" means any county,

municipality, commission, district or other subdivision of

the state;

F. "low-income person" means any individual,

couple or family whose gross income does not exceed eighty

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percent of the resident's particular county median income and

who cannot afford to pay more than thirty percent of gross

income for housing rent or mortgage payments or a low-income

person as defined by the federal government;

G. "obligee" means:

(1) a holder of bonds issued pursuant to the

Regional Housing Law or a trustee for that bondholder;

(2) a lessor leasing to an authority

property used in connection with a housing project or any

assignee of a lessor's interest or partial interest; or

(3) the federal government when it is a

party to a contract with an authority in regard to a housing

project;

H. "real property" includes all lands, including

improvements and fixtures on the land, property of any nature

appurtenant to or used in connection with the land and every

estate, interest and right, legal or equitable, in the land,

including terms for years and liens by way of judgment,

mortgage or other instrument and the indebtedness secured by

the lien; and

I. "slum" means any area where dwellings

predominate, which by reason of dilapidation, overcrowding,

lack of ventilation, light or sanitary facilities or any

combination of these factors is detrimental to safety, health

or morals."

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Section 2. Section 11-3A-5 NMSA 1978 (being Laws 1994,

Chapter 132, Section 5, as amended) is amended to read:

"11-3A-5. JURISDICTION.--A regional authority created

by the Regional Housing Law shall operate only within the

area of its housing region."

Section 3. Section 11-3A-6 NMSA 1978 (being Laws 1994,

Chapter 132, Section 6, as amended) is amended to read:

"11-3A-6. POWERS OF AUTHORITY IN BOARD OF

COMMISSIONERS--APPOINTMENT OF BOARD OF AUTHORITIES--TERMS.--

A. The powers of each regional authority shall be

vested in its board of commissioners as the board may be

constituted, from time to time. The board of commissioners

of the authority for each of the seven regions shall consist

of seven commissioners who shall be residents of the region

for which the authority is created and shall be appointed by

the governor. Not more than three commissioners shall be

appointed from any one county. Appointments shall be for

terms of four years or less and shall be made so that the

terms of not more than two commissioners on each board expire

on July 1 of each year. Vacancies shall be filled for the

unexpired term. Commissioners shall serve until their

successors have been appointed.

B. The members of the boards of commissioners may

receive per diem and mileage as provided in the Per Diem and

Mileage Act but shall receive no other compensation,

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perquisite or allowance. Each board of commissioners shall

select a chair and vice chair from among its members. Each

board may employ necessary agents and employees and set the

salaries of the agents and employees. Each board may

delegate to its agents or employees such duties as the board

deems proper. A regional planning and development district,

created pursuant to the Planning District Act, may provide

technical staff for an authority. Four commissioners shall

constitute a quorum of a board for the purpose of conducting

its business and exercising its powers and for all other

purposes. Action may be taken by an authority upon a vote of

a majority of the commissioners present. Each board shall

organize itself at its annual meeting each even-numbered

year. A board may employ an executive director, subject to

approval by the New Mexico mortgage finance authority, and

technical experts and other officers, attorneys, agents and

employees, permanent and temporary, as the authority

requires; to determine employee and contractor

qualifications, duties and compensation; and to delegate to

one or more employees or contractors the powers or duties

that the board deems proper.

C. The financial affairs of every regional

authority and any nonprofit corporation created by an

authority shall be thoroughly examined and audited annually

by the state auditor, by personnel of the state auditor's

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office designated by the state auditor or by auditors

approved by the state auditor. The audits shall be conducted

in accordance with generally accepted auditing standards.

Each regional authority shall submit to the state auditor,

the department of finance and administration, the New Mexico

mortgage finance authority, the Mortgage Finance Authority

Act oversight committee and the legislative finance

committee, within thirty days following the receipt of the

audit by the authority, a copy of the annual audit.

D. Upon receipt of the annual audits, the

department of finance and administration shall review each

regional authority's audit for approval. Upon a finding of

nonapproval of an audit by the department of finance and

administration, that regional authority's powers as provided

in the Regional Housing Law may be suspended by the

department until those conditions that resulted in the

nonapproval are remedied to the satisfaction of the

department of finance and administration.

E. Effective October 1, 2007, every regional

authority shall submit a quarterly report of its activities

to the department of finance and administration, the Mortgage

Finance Authority Act oversight committee and the legislative

finance committee. Each report shall set forth a complete

operating and financial statement covering its operations

since the previous report was presented."

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Section 4. Section 11-3A-7 NMSA 1978 (being Laws 1994,

Chapter 132, Section 7, as amended) is amended to read:

"11-3A-7. POWERS.--

A. Every authority may:

(1) within its region, prepare, carry out,

acquire, purchase, lease, construct, reconstruct, improve,

alter, extend or repair any housing project and operate and

maintain the housing project. For any of such purposes, the

board of commissioners of the authority may expend money and

authorize the use of any property of the authority;

(2) lease or rent dwellings, houses,

accommodations, lands, buildings, structures or facilities

embraced in any housing project and establish and revise the

rents or lease charges; own, hold and improve real or

personal property; purchase, lease, obtain options upon or

acquire by gift, grant, bequest, devise or otherwise any real

or personal property or any interest therein; sell, lease,

mortgage, exchange, transfer, assign, pledge or dispose of

real or personal property or any interest in real or personal

property; or procure or agree to the procurement of insurance

or guarantees from the federal government of the payment of

any bonds or parts thereof, including the power to pay

premiums on the insurance;

(3) enter on lands, buildings or property

for the purpose of making surveys, soundings and examinations

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in connection with the planning or construction, or both, of

a housing project;

(4) insure or provide for the insurance of a

housing project of the authority against the risks that the

authority may deem advisable;

(5) arrange or contract for the furnishing

by any person or agency, public or private, of services,

privileges, works or facilities for or in connection with a

housing project or the occupants thereof and include in any

construction contract let in connection with a housing

project stipulations requiring that the contractor and

subcontractors comply with employment requirements, including

those in the constitution and laws of this state, as to

minimum wages and maximum hours of labor and comply with any

conditions that the state or federal government may have

attached to its financial aid of the project;

(6) within its area of operation,

investigate the living, dwelling and housing conditions and

the means and methods of improving those conditions;

determine where slum areas exist or where there is a shortage

of decent, safe and sanitary dwelling accommodations for

low-income persons; make studies and recommendations relating

to the problem of clearing, replanning and reconstructing

slum areas and the problem of providing dwelling

accommodations for low-income persons and cooperate with the

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state or any political subdivision of the state in action

taken in connection with the problems identified; and engage

in research, studies and experimentation on the subject of

housing; and

(7) exercise all or any part or combination

of powers granted in this subsection.

B. To standardize the delivery of affordable

housing programs and services in New Mexico, regional

authorities within their jurisdictions may:

(1) create partnerships between state,

federal, city and county governments, nonprofit entities and

the private sector that will provide the necessary resources

to carry out the planning, financing, development and

delivery of affordable housing;

(2) assist city or county authorities or

housing nonprofit agencies in developing the knowledge,

expertise and technical capacity to provide a comprehensive

approach to the development and delivery of affordable

housing; or

(3) provide or secure planning, technical

assistance and training that city or county governments and

nonprofit entities may need in an effort to enhance the local

affordable housing delivery system."

Section 5. Section 11-3A-9 NMSA 1978 (being Laws 1994,

Chapter 132, Section 9, as amended) is amended to read:

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"11-3A-9. NONPROFIT CORPORATIONS.--Every authority, in

addition to other powers conferred by the Regional Housing

Law, shall have, if authorized by resolution of its board and

approved by the state board of finance, the power to create

nonprofit corporations to carry out the powers and duties set

forth in Section 11-3A-7 NMSA 1978. The articles of

incorporation and bylaws, and any subsequent changes, shall

be approved by the state board of finance and the New Mexico

mortgage finance authority. Such nonprofit corporations

shall be subject to all of the duties and limitations imposed

on the authority and its board of commissioners."

Section 6. A new section of the Regional Housing Law is

enacted to read:

"FINANCIAL AND OPERATIONAL OVERSIGHT.--

A. Without the prior approval of the department of

finance and administration, no regional authority shall:

(1) enter into any contract, memorandum of

understanding or other agreement with a value greater than

fifty thousand dollars ($50,000); or

(2) transfer, sell or liquidate any real or

personal property with a value greater than twenty thousand

dollars ($20,000).

B. Not less than thirty days prior to the

beginning of its fiscal year, each regional authority and

each nonprofit corporation established pursuant to Section

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11-3A-9 NMSA 1978 shall submit a proposed operating budget

for the subsequent fiscal year to the department of finance

and administration for approval. A final operating budget

shall be submitted by July 1 of each year. On and after

July 1, 2007, no authority shall operate pursuant to the

Regional Housing Law if its budget has not been approved by

the department. All operations of an authority shall be

conducted pursuant to the approved operating budget except

that:

(1) budget adjustments totaling less than

five percent of the operating budget may be made with prior

notice to the department; and

(2) budget adjustments totaling five

percent or more of the operating budget may be made with the

prior approval of the department.

C. Prior to each fiscal year, the New Mexico

mortgage finance authority shall conduct a needs assessment

of the programs of each regional authority and shall work

with and advise each authority on developing a plan to meet

the assessed needs and in conjunction with the state housing

plan."

Section 7. TEMPORARY PROVISIONS.--

A. No later than July 1, 2007, each nonprofit

corporation exercising a power or performing any act under

the Regional Housing Law shall submit its bylaws and articles

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of incorporation to the New Mexico mortgage finance authority

for approval. After September 1, 2007, a nonprofit

corporation shall conduct no business under the Regional

Housing Law unless its bylaws and articles of incorporation

have been approved.

B. By September 1, 2007, each executive director

of a regional housing authority shall be approved by the New

Mexico mortgage finance authority or shall be deemed to have

resigned.

C. On September 1, 2007, the position of each

commissioner of a regional housing authority who has not been

appointed or reappointed by the governor after April 1, 2007

shall be deemed vacant.

D. Notwithstanding any requirement of the

Regional Housing Law for the sale of housing projects or

units with housing projects for a specific purpose, with the

prior approval of the department of finance and

administration, a regional housing authority may sell any

property held on April 1, 2007 that is not suitable for the

purposes of that act.

Section 8. APPROPRIATION--ACCOUNTING OF ASSETS.--Two

hundred thousand dollars ($200,000) is appropriated from the

general fund to the state auditor for expenditure in fiscal

years 2007 and 2008 for the purpose of conducting an

accounting of all assets acquired by regional housing

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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, the Mortgage

Finance Authority Act oversight committee and the department

of finance and administration. Any unexpended or

unencumbered balance remaining at the end of fiscal year 2008

shall revert to the general fund.

Section 9. REPEAL.--Sections 11-3A-11, 11-3A-14

through 11-3A-18 and 11-3A-27 NMSA 1978 (being Laws 1994,

Chapter 132, Sections 11, 14 through 18 and 27, as amended)

are repealed.

Section 10. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately.