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F I S C A L I M P A C T R E P O R T

SPONSOR Martinez, R.

ORIGINAL DATE

LAST UPDATED

1/22/2008

HB

SHORT TITLE Low-Income Household Home Repairs

SB 212

ANALYST Leger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$2,000.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Mortgage Finance Authority (MFA)

SUMMARY

Synopsis of Bill

Senate Bill 212 appropriates $2 million from the general fund to the Department of Finance and

Administration (DFA) for expenditure in FY09 & FY10 for disbursement to MFA for emergency

and minor repairs of homes occupied by low-income persons in New Mexico.

FISCAL IMPLICATIONS

The appropriation of $2 million contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY10 shall revert to

the general fund.

SIGNIFICANT ISSUES

The funding amount of $2 million could assist approximately 255 households by providing

emergency and minor repairs of homes occupied by low-income persons in New Mexico.

Emergency and minor repairs would include those necessitated by natural disasters, repair and

replacement of roofs and accessibility modifications for physically impaired persons.

Senate Bill 212 – Page

2

PERFORMANCE IMPLICATIONS

MFA provided information for the need for an Emergency Home Repair Program. The

evidence compiled from U.S. Census Bureau, 2006 American Community Survey, to determine

the statewide current status of housing conditions and housing needs. A summary of the key

findings show:

•

There are 850,000 housing units in the state;

•

The estimated state population is 2,000,000

•

18.5% of the state’s population live below the poverty line;

•

25.6% of the population under 18 years live below the poverty line;

•

13.0% of persons 65 years or older live below the poverty line;

•

16.6% of the population age 18 to 64 years old are disabled;

•

42% of the population 65 years and over are disabled;

Unemployment Statistics

•

The unemployment rate for the State is 7.3%, but for those below the poverty level it

is 22.2%.

Housing Units Lacking Plumbing/Kitchen Facilities

•

1.8% of occupied housing units are lacking complete plumbing facilities;

•

1.6% of occupied housing units are lacking complete kitchen facilities;

Disasters occurring in New Mexico over the last several years, especially flooding in 2006 and

2007, and tornados in 2007, have underscored the need for emergency repair funding.

ADMINISTRATIVE IMPLICATIONS

The program will be administered by MFA. No more than five percent of this appropriation

shall be used by MFA for administrative expenses.

JLL/bb