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AN ACT

RELATING TO PUBLIC FINANCE; PERMITTING STATE AND LOCAL

GOVERNMENTS TO PROVIDE OR PAY THE COST OF LAND, BUILDINGS OR

NECESSARY FINANCING FOR AFFORDABLE HOUSING PROJECTS; AMENDING

THE AFFORDABLE HOUSING ACT.

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

Section 1. Section 6-27-3 NMSA 1978 (being Laws 2004,

Chapter 104, Section 3) is amended to read:

"6-27-3. DEFINITIONS.--As used in the Affordable

Housing Act:

A. "affordable housing" means residential housing

primarily for persons or households of low or moderate

income;

B. "authority" means the New Mexico mortgage

finance authority;

C. "building" means a structure capable of being

renovated or converted into affordable housing or a structure

that is to be demolished and is located on land that is

donated and upon which affordable housing will be

constructed;

D. "governmental entity" means a state, a county,

a municipality or the authority;

E. "household" means one or more persons occupying

a housing unit;

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F. "housing assistance grant" means the donation,

provision or payment by a governmental entity of:

(1) land upon which affordable housing will

be constructed;

(2) an existing building that will be

renovated, converted or demolished and reconstructed as

affordable housing;

(3) the costs of acquisition, development,

construction, financing and operating or owning affordable

housing; or

(4) the costs of financing or infrastructure

necessary to support affordable housing;

G. "infrastructure" includes infrastructure

improvements and infrastructure purposes;

H. "infrastructure improvement" includes, but is

not limited to:

(1) sanitary sewage systems, including

collection, transport, storage, treatment, dispersal,

effluent use and discharge;

(2) drainage and flood control systems,

including collection, transport, diversion, storage,

detention, retention, dispersal, use and discharge;

(3) water systems for domestic purposes,

including production, collection, storage, treatment,

transport, delivery, connection and dispersal;

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(4) areas for motor vehicle use for road

access, ingress, egress and parking;

(5) trails and areas for pedestrian,

equestrian, bicycle or other nonmotor vehicle use for access,

ingress, egress and parking;

(6) parks, recreational facilities and open

space areas to be used by residents for entertainment,

assembly and recreation;

(7) landscaping, including earthworks,

structures, plants, trees and related water delivery systems;

(8) electrical transmission and distribution

facilities;

(9) natural gas distribution facilities;

(10) lighting systems;

(11) cable or other telecommunications lines

and related equipment;

(12) traffic control systems and devices,

including signals, controls, markings and signs;

(13) inspection, construction management and

related costs in connection with the furnishing of the items

listed in this subsection; and

(14) heating, air conditioning and

weatherization facilities, systems or services, and energy

efficiency improvements that are affixed to real property;

I. "infrastructure purpose" means:

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(1) planning, design, engineering,

construction, acquisition or installation of infrastructure,

including the costs of applications, impact fees and other

fees, permits and approvals related to the construction,

acquisition or installation of the infrastructure;

(2) acquiring, converting, renovating or

improving existing facilities for infrastructure, including

facilities owned, leased or installed by the owner;

(3) acquiring interests in real property or

water rights for infrastructure, including interests of the

owner; and

(4) incurring expenses incident to and

reasonably necessary to carry out the purposes specified in

this subsection;

J. "municipality" means an incorporated city, town

or village, whether incorporated under general act, special

act or special charter, incorporated counties and H class

counties;

K. "qualifying grantee" means:

(1) an individual who is qualified to

receive assistance pursuant to the Affordable Housing Act and

is approved by the governmental entity; and

(2) a governmental housing agency, regional

housing authority, tribal housing agency, corporation,

limited liability company, partnership, joint venture,

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syndicate, association or nonprofit organization that:

(a) is organized under state, local or

tribal laws and can provide proof of such organization;

(b) if a nonprofit organization, has no

part of its net earnings inuring to the benefit of any

member, founder, contributor or individual; and

(c) is approved by the governmental

entity; and

L. "residential housing" means any building,

structure or portion thereof that is primarily occupied, or

designed or intended primarily for occupancy, as a residence

by one or more households and any real property that is

offered for sale or lease for the construction or location

thereon of such a building, structure or portion thereof.

"Residential housing" includes congregate housing,

manufactured homes, housing intended to provide or providing

transitional or temporary housing for homeless persons and

common health care, kitchen, dining, recreational and other

facilities primarily for use by residents of a residential

housing project."

Section 2. Section 6-27-5 NMSA 1978 (being Laws 2004,

Chapter 104, Section 5) is amended to read:

"6-27-5. STATE, COUNTY, MUNICIPALITIES AND THE

AUTHORITY--AUTHORIZATION FOR AFFORDABLE HOUSING.--The state,

a county, a municipality or the authority may:

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A. donate, provide or pay all, or a portion, of

the costs of land for the construction on the land of

affordable housing;

B. donate, provide or pay all or a portion of the

costs of conversion or renovation of existing buildings into

affordable housing;

C. provide or pay the costs of financing or

infrastructure necessary to support affordable housing

projects; or

D. provide or pay all or a portion of the costs of

acquisition, development, construction, financing, operating

or owning affordable housing."

Section 3. Section 6-27-7 NMSA 1978 (being Laws 2004,

Chapter 104, Section 7) is amended to read:

"6-27-7. REQUIREMENT FOR ENACTMENT OF AN ORDINANCE BY A

COUNTY OR A MUNICIPALITY AND REVIEW BY THE AUTHORITY

AUTHORIZING HOUSING ASSISTANCE GRANTS--REQUIREMENT FOR

ADOPTION OF A RESOLUTION BY THE GOVERNING BODY OF THE

AUTHORITY AUTHORIZING HOUSING ASSISTANCE GRANTS.--

A. A county or municipality may provide housing

assistance grants pursuant to Article 9, Section 14 of the

constitution of New Mexico after enactment by its governing

body of an ordinance authorizing grants, stating the

requirements of and purposes of the grants and authorizing

transfer or disbursement to a qualifying grantee only after a

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budget is submitted to and approved by the governing body.

The ordinance may provide for matching or using local,

private or federal funds either through direct participation

with a federal agency pursuant to federal law or through

indirect participation through programs of the authority. No

less than forty-five days prior to enactment, the county or

municipality shall submit a proposed ordinance to the

authority, which shall review the proposed ordinance to

ensure compliance with rules promulgated by the authority

pursuant to Section 6-27-8 NMSA 1978. Within fifteen days

after enactment of the ordinance, the county or municipality

shall submit a certified true copy of the ordinance to the

authority.

B. A school district may transfer land or

buildings owned by the school district to a county or

municipality to be further granted as part or all of an

affordable housing grant if the school district and the

governing body of the county or municipality enter into a

contract that provides the school district with a negotiated

number of affordable housing units that will be reserved for

employees of the school district.

C. The governing board of a public post-secondary

educational institution may transfer land or buildings owned

by that institution to a county or municipality; provided

that:

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(1) the property transferred shall be

granted by the county or municipality as part or all of an

affordable housing grant; and

(2) the governing board of the public

post-secondary educational institution and the governing body

of the county or municipality enter into a contract that

provides the public post-secondary educational institution

with affordable housing units.

D. The authority may provide housing assistance

grants pursuant to Article 9, Section 14 of the constitution

of New Mexico after enactment by its governing body of a

resolution authorizing grants, stating the requirements and

purposes of the grants and authorizing disbursement to a

qualifying grantee after a budget is submitted to and

approved by the governing body. The resolution may provide

for matching or for using local, private or federal funds

either through direct participation with a federal agency

pursuant to federal law or through indirect participation

through programs of the authority. The resolution shall

comply with rules promulgated by the authority pursuant to

Section 6-27-8 NMSA 1978.

E. As used in this section, "public post-secondary

educational institution" means a state university or a public

community college."

Section 4. Section 6-27-8 NMSA 1978 (being Laws 2004,

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Chapter 104, Section 8) is amended to read:

"6-27-8. PROVISIONS TO ENSURE SUCCESSFUL COMPLETION OF

AFFORDABLE HOUSING PROJECTS--INVESTIGATION.--

A. State, county and municipal housing assistance

grants pursuant to the Affordable Housing Act shall be

applied for and awarded to qualifying grantees pursuant to

the rules promulgated by the authority subject to the

requirements of that act.

B. The authority shall adopt rules covering:

(1) procedures to ensure that qualifying

grantees meet the requirements of the Affordable Housing Act

and rules promulgated pursuant to that act both at the time

of the award and through the term of the grant;

(2) establishment of an application and

award timetable for housing assistance grants to permit the

selection of the potential qualifying grantees prior to

January of the year in which the grants would be made;

(3) contents of the application, including

an independent evaluation of the:

(a) financial and management stability

of the applicant;

(b) demonstrated commitment of the

applicant to the community;

(c) cost-benefit analysis of the

project proposed by the applicant;

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(d) benefits to the community of a

proposed project;

(e) type or amount of assistance to be

provided;

(f) scope of the affordable housing

project;

(g) substantive or matching

contribution by the applicant to the proposed project; and

(h) performance schedule for the

qualifying grantee with performance criteria;

(4) a requirement for long-term

affordability of a state, county or municipal project so that

a project cannot be sold shortly after completion and taken

out of the affordable housing market to ensure a quick profit

for the qualifying grantee;

(5) a requirement that a grant for a state

or local project must impose a contractual obligation on the

qualifying grantee that the housing units in a state or local

project pursuant to the Affordable Housing Act be occupied by

low- or moderate-income households;

(6) provisions for adequate security against

the loss of public funds or property in the event that a

qualifying grantee abandons or otherwise fails to complete a

project;

(7) a requirement for review and approval of

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a housing grant project budget by the grantor before any

expenditure of grant funds or transfer of granted property;

(8) a requirement that, unless the period is

extended for good cause shown, the authority shall act on an

application within forty-five days of the date of receipt of

an application that the authority deems to be complete and,

if not acted upon, the application shall be deemed approved;

(9) a requirement that a condition of grant

approval be proof of compliance with all applicable state and

local laws, rules and ordinances;

(10) provisions defining "low- and

moderate-income" and setting out requirements for

verification of income levels;

(11) a requirement that a county or

municipality that makes a housing assistance grant shall have

an existing valid affordable housing plan or housing elements

contained in its general plan; and

(12) a requirement that the governmental

entity enter into a contract with a qualifying grantee

consistent with the Affordable Housing Act, which contract

shall include remedies and default provisions in the event of

the unsatisfactory performance by the qualifying grantee.

C. In addition to the rulemaking mandated in

Subsection B of this section, the authority may adopt

additional rules to carry out the purposes of the Affordable

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Housing Act. Rulemaking procedures pursuant to the

Affordable Housing Act shall:

(1) provide a public hearing in accordance

with the state Administrative Procedures Act; and

(2) require concurrence in a rule having

application to local government by both the New Mexico

municipal league and the New Mexico association of counties.

D. The attorney general shall investigate any

alleged violation of the Affordable Housing Act as reported

by the authority."