0001| | 0002| SENATE BILL 71 | 0003| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0004| INTRODUCED BY | 0005| PATRICK H. LYONS | 0006| | 0007| | 0008| | 0009| FOR THE MORTGAGE FINANCE AUTHORITY ACT OVERSIGHT COMMITTEE | 0010| | 0011| AN ACT | 0012| RELATING TO HOUSING; PROVIDING FOR THE CONSOLIDATION OF | 0013| HOUSING PROGRAMS; RATIFYING THE TRANSFER OF CERTAIN HOUSING | 0014| PROGRAMS TO THE NEW MEXICO MORTGAGE FINANCE AUTHORITY; | 0015| CHANGING THE DESIGNATION OF THE STATE HOUSING AUTHORITY; | 0016| AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978 TO | 0017| MAKE STATUTORY PROVISIONS CONSISTENT WITH THE TRANSFER OF | 0018| PROGRAMS. | 0019| | 0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0021| Section 1. Section 9-15-4 NMSA 1978 (being Laws 1983, | 0022| Chapter 297, Section 4, as amended) is amended to read: | 0023| "9-15-4. DEPARTMENT ESTABLISHED.--There is created in | 0024| the executive branch the "economic development department". | 0025| The department shall be a cabinet department and shall consist | - 1 - 0001| of, but not be limited to, ~[seven]~ |six| divisions as | 0002| follows: | 0003| A. the administrative services division; | 0004| B. the economic development division; | 0005| C. the New Mexico film division; | 0006| D. the technology enterprise division; | 0007| E. the trade division; |and| | 0008| ~[F. the state housing authority; and | 0009| G.]~ |F.| the office for space commercialization." | 0010| Section 2. Section 9-15-7.1 NMSA 1978 (being Laws 1983, | 0011| Chapter 296, Section 21, as amended) is amended to read: | 0012| "9-15-7.1. ADDITIONAL PLANNING DUTIES OF SECRETARY ~[OF | 0013| THE ECONOMIC DEVELOPMENT DEPARTMENT]~.--The secretary ~[of the | 0014| economic development department]~, in addition to other | 0015| duties, shall: | 0016| A. serve as staff to the governor's rural | 0017| development council; | 0018| ~[B. provide housing information and technical | 0019| assistance to units of local government and housing | 0020| development associations; | 0021| C. administer the low-income elderly housing | 0022| rehabilitation program; | 0023| D. provide training to groups participating in | 0024| housing management programs funded by housing and urban | 0025| development and the farmers home administration;]~ and | - 2 - 0001| ~[E.]~ |B.| serve as lead agency in coordination | 0002| of the census program at the state data center." | 0003| Section 3. Section 11-1-2 NMSA 1978 (being Laws 1961, | 0004| Chapter 135, Section 2, as amended) is amended to read: | 0005| "11-1-2. DEFINITIONS.--As used in the Joint Powers | 0006| Agreements Act: | 0007| A. "public agency" means the federal government or | 0008| any federal department, ~[or]~ agency |or instrumentality|; | 0009| this state, an adjoining state or any state department, ~[or]~ | 0010| agency |or instrumentality|; an Indian tribe or pueblo; a | 0011| county, municipality, public corporation or public district of | 0012| this state or an adjoining state; ~[it also specifically | 0013| includes any state]~ |a New Mexico| educational institution | 0014| specified in Article 12, Section 11 of the constitution of New | 0015| Mexico; and ~[any]~ |a New Mexico| school district ~[in this | 0016| state]~; | 0017| B. "agreement" means a written contractual | 0018| agreement entered into between two or more public agencies | 0019| subject to any constitutional or legislative restriction | 0020| imposed upon any of the contracting public agencies ~[provided | 0021| that nothing in]~, |but| the Joint Powers Agreements Act | 0022| ~[shall be construed to]~ |does not| authorize ~[any]~ |an| | 0023| interstate water supply agreement or ~[to]~ limit the powers | 0024| of ~[any]~ |an| interstate water compact commission, the | 0025| interstate stream commission or the state engineer ~[or to]~, | - 3 - 0001| |and it does not| limit the powers of ~[any]~ |a| state agency | 0002| or political subdivision to enter into agreements with the | 0003| interstate stream commission or the state engineer; | 0004| C. "bonds" means revenue bonds; | 0005| D. "bondholder" means any person who ~[shall be]~ | 0006| |is| the bearer of any outstanding ~[revenue]~ bond or the | 0007| owner of bonds ~[which shall]~ |that are| at the time ~[be]~ | 0008| registered to other than the bearer;|| | 0009| ~[E. "governing body" means the board or | 0010| commission provided for under the Joint Powers Agreements Act; | 0011| F.]~ |E.| "indenture" means the instrument | 0012| providing the terms and conditions for the issuance of the | 0013| bonds and may be a resolution, order, agreement or other | 0014| instrument; and | 0015| ~[G. "project" means the building or other | 0016| structure or improvements and all facilities appurtenant | 0017| thereto or provided therefor to be financed by bonds issued | 0018| pursuant to the Joint Powers Agreements Act]~ | 0019| |F. "instrumentality" means a public corporate | 0020| entity created by state law but which is not subject to the | 0021| general laws of the state and is not a state agency or | 0022| department|." | 0023| Section 4. Section 11-3A-6 NMSA 1978 (being Laws 1994, | 0024| Chapter 132, Section 6, as amended) is amended to read: | 0025| "11-3A-6. POWERS OF AUTHORITY IN BOARD OF | - 4 - 0001| COMMISSIONERS--APPOINTMENT OF BOARD OF AUTHORITIES--TERMS.-- | 0002| A. The powers of each regional authority shall be | 0003| vested in its board of commissioners as the board may be | 0004| constituted, from time to time. The board of commissioners of | 0005| the authority for each of the seven regions shall consist of | 0006| seven commissioners who shall be residents of the region for | 0007| which the authority is created and appointed by the governor. | 0008| Appointments shall be for terms of four years or less and | 0009| shall be made so that the terms of not more than two | 0010| commissioners on each board expire on July 1 of each year. | 0011| Vacancies shall be filled for the unexpired term. | 0012| Commissioners shall serve until their successors have been | 0013| appointed. | 0014| B. The members of the boards of commissioners may | 0015| receive per diem and mileage as provided in the Per Diem and | 0016| Mileage Act but shall receive no other compensation, | 0017| perquisite or allowance. Each board of commissioners shall | 0018| select a chairman and vice chairman from among its members. | 0019| Each board may employ necessary agents and employees and set | 0020| the salaries of the agents and employees. Each board may | 0021| delegate to its agents or employees such duties as the board | 0022| deems proper. A regional planning and development district, | 0023| created pursuant to the Planning District Act, may provide | 0024| technical staff for ~[a regional housing]~ |an| authority. | 0025| Four commissioners shall constitute a quorum of a board for | - 5 - 0001| the purpose of conducting its business and exercising its | 0002| powers and for all other purposes. Action may be taken by an | 0003| authority upon a vote of a majority of the commissioners | 0004| present. Each board shall organize itself at its annual | 0005| meeting each even-numbered year. A board may authorize an | 0006| authority to employ a secretary, who shall be executive | 0007| director and who shall be removable only for cause, and | 0008| technical experts and other officers, attorneys, agents and | 0009| employees, permanent and temporary, as the authority requires; | 0010| to determine employee and contractor qualifications, duties | 0011| and compensation; and to delegate to one or more employees or | 0012| contractors the powers or duties that the board deems proper. | 0013| C. The financial affairs of every regional | 0014| authority and any nonprofit corporation created by an | 0015| authority shall be thoroughly examined and audited annually by | 0016| the state auditor, by personnel of his office designated by | 0017| him or by auditors approved by him. The audits shall be | 0018| conducted in accordance with generally accepted auditing | 0019| standards. Each regional authority shall submit to the state | 0020| auditor, the department of finance and administration, the | 0021| state housing authority ~[of the economic development | 0022| department]~ and the legislative finance committee, within | 0023| thirty days following the receipt of the audit by the | 0024| authority, a copy of the annual audit." | 0025| Section 5. Section 48-10-3 NMSA 1978 (being Laws 1987, | - 6 - 0001| Chapter 61, Section 3, as amended) is amended to read: | 0002| "48-10-3. DEFINITIONS.--As used in the Deed of Trust | 0003| Act, unless the context otherwise requires: | 0004| A. "beneficiary" means the person named or | 0005| otherwise designated in a deed of trust as the person for | 0006| whose benefit a deed of trust is given or his successor in | 0007| interest; | 0008| B. "qualified construction project" means a low- | 0009| income housing project of a regional, county or municipal | 0010| housing authority or a qualified nonprofit organization; | 0011| C. "qualified nonprofit organization" means an | 0012| organization that is certified by the state housing authority | 0013| as having been granted exemption from federal income tax | 0014| pursuant to Section 501(c)(3) or (4) of the Internal Revenue | 0015| Code of 1986, as amended, and that includes as one of its | 0016| exempt purposes the fostering of low-income housing; | 0017| D. "contract" means an agreement between or among | 0018| two or more persons, including, without limitation, a note, | 0019| promissory note, guarantee or the terms of any deed of trust; | 0020| E. "credit bid" means a bid made by the | 0021| beneficiary in full or partial satisfaction of the contract | 0022| that is secured by the deed of trust. A credit bid may only | 0023| include an amount owing on a contract with interest secured by | 0024| liens, mortgages, deeds of trust or encumbrances that are | 0025| superior in priority to the deed of trust and which liens, | - 7 - 0001| mortgages or encumbrances, whether recourse or nonrecourse, | 0002| are outstanding as provided in the contract or as provided in | 0003| the deed of trust, together with the amount of other | 0004| obligations provided in or secured by the deed of trust and | 0005| the costs of exercising the power of sale and the trustee's | 0006| sale, including the fees of the trustee and reasonable | 0007| ~[attorneys']~ |attorney| fees actually incurred by the | 0008| trustee and the beneficiary; | 0009| F. "parent corporation" means a corporation that | 0010| owns eighty percent or more of each class of the issued and | 0011| outstanding stock of another corporation or, in the case of a | 0012| savings and loan association, eighty percent or more of the | 0013| issued and outstanding guaranty capital of the savings and | 0014| loan association; | 0015| G. "person" means an individual or organization; | 0016| H. "deed of trust" means a document by way of | 0017| mortgage in substance executed in conformity with the Deed of | 0018| Trust Act and in conformity with Section 47-1-39 NMSA 1978 | 0019| granting or mortgaging trust real estate to a trustee | 0020| qualified under the Deed of Trust Act to secure the | 0021| performance of a contract, but does not include a deed of | 0022| trust that encumbers in whole or in part trust real estate | 0023| located in New Mexico and in one or more other states; | 0024| I. "junior encumbrancer" means a person holding a | 0025| lien, mortgage or other encumbrance of record evidencing an | - 8 - 0001| interest in the trust real estate that is subordinate in | 0002| priority to the deed of trust and includes a lienholder, a | 0003| mortgagee, a seller and a purchaser as provided in a real | 0004| estate contract and, where the context is applicable, escrow | 0005| agents as provided in a real estate contract; | 0006| J. "low-income household" means a household that | 0007| the state housing authority certifies is a household with | 0008| income at or below eighty percent of the state's median | 0009| household income; | 0010| K. "low-income housing project" means a housing | 0011| project that the state housing authority certifies is housing | 0012| for low-income households; | 0013| |L. "state housing authority" means the New Mexico | 0014| mortgage finance authority;| | 0015| ~[L.]~ |M.| "trust real estate" means any legal, | 0016| equitable, leasehold or other interest in real estate, | 0017| including the term "real estate" as defined in Section 47-1-1 | 0018| NMSA 1978, which is capable of being transferred whether or | 0019| not the interest is subject to any prior mortgages, deeds of | 0020| trust, contracts for conveyance of real estate, real estate | 0021| contracts or other liens or encumbrances; provided, however, | 0022| trust real estate shall not include: | 0023| (1) any dwelling and the underlying real | 0024| estate designed for occupancy by one to four families, | 0025| including mobile homes and condominiums, except when occupancy | - 9 - 0001| is designed for low-income households; | 0002| (2) any real estate used by the trustor for | 0003| farming operations, including farming, tillage of the soil, | 0004| dairy farming, ranching, production or raising of crops, | 0005| poultry or livestock, and production of poultry or livestock | 0006| products in an unmanufactured state; or | 0007| (3) oil and other liquid hydrocarbons, or | 0008| gas, including casinghead gas, condensates and other gaseous | 0009| petroleum substances, or coal or other minerals in, on or | 0010| under real estate, including patented and unpatented mining | 0011| claims, unless such minerals have not been severed from and | 0012| are included with the surface estate. | 0013| The character of trust real estate shall be determined as | 0014| of the date of the deed of trust covering the trust real | 0015| estate; | 0016| ~[M.]~ |N.| "trustee" means a person qualified as | 0017| provided in the Deed of Trust Act. The obligations of a | 0018| trustee to the trustor, beneficiary and other persons are as | 0019| provided in the Deed of Trust Act, together with any other | 0020| obligations specified in the deed of trust. Both the | 0021| beneficiary and the trustee have all the powers of a mortgagee | 0022| as provided by law; and | 0023| ~[N.]~ |O.| "trustor" means the person or his | 0024| successor in interest granting or mortgaging trust real estate | 0025| by a deed of trust as security for the performance of a | - 10 - 0001| contract and is the same as a mortgagor granting or mortgaging | 0002| real estate by way of mortgage as provided by law." | 0003| Section 6. A new section of the Mortgage Finance | 0004| Authority Act, Section 58-18-5.5 NMSA 1978, is enacted to | 0005| read: | 0006| "58-18-5.5. [|NEW MATERIAL|] ADDITIONAL POWERS OF AUTHORITY-- | 0007| AUTHORITY DESIGNATED AS SINGLE STATE HOUSING AUTHORITY--APPLICATION | 0008| FOR AND RECEIPT OF FEDERAL FUNDS--ADMINISTRATION OF HOUSING | 0009| PROGRAMS.--In addition to the powers granted the authority pursuant | 0010| to Sections 58-18-5 and 58-18-5.3 NMSA 1978, the authority: | 0011| A. is designated as the state housing authority for all | 0012| purposes; | 0013| B. shall make application for federal housing funds and | 0014| programs; | 0015| C. shall administer federal and state housing programs | 0016| and federal tax credit provisions associated with those programs; | 0017| D. shall receive and expend funds pursuant to | 0018| applicable federal housing laws, federal housing regulations, the | 0019| provisions of the Mortgage Finance Authority Act and regulations | 0020| adopted pursuant to that act; | 0021| E. shall administer the following housing programs that | 0022| were previously transferred to it by executive order, the | 0023| provisions of which are ratified: | 0024| (1) the federal HOME program; | 0025| (2) the federal low-income housing tax credit | - 11 - 0001| program; | 0002| (3) the federal emergency shelter grant programs; | 0003| (4) the state homeless program; | 0004| (5) the federal and state weatherization programs | 0005| and that part of the low-income home energy assistance program | 0006| authorized for weatherization; and | 0007| (6) the state safe water program; | 0008| F. shall assist with technical consultation in | 0009| connection with housing components of the community service block | 0010| grant and community development block grant programs that are | 0011| administered by the human services department and the department of | 0012| finance and administration, respectively; | 0013| G. shall not receive direct appropriations of state | 0014| funds from the legislature, and, if a program for which the | 0015| authority is granted the power and has the duty to administer | 0016| involves the appropriation or expenditure of state funds, the | 0017| authority is granted specific power to enter into a joint powers | 0018| agreement with the department of finance and administration | 0019| pursuant to the Joint Powers Agreements Act; and | 0020| H. may: | 0021| (1) exercise oversight over regional housing | 0022| authorities to achieve efficiency and coordination of state and | 0023| regional housing programs; | 0024| (2) conduct reviews and audits of regional housing | 0025| authorities' programs; and | - 12 - 0001| (3) upon request of a regional housing authority, | 0002| provide appropriate technical assistance." | 0003| Section 7. REPEAL.--Sections 11-4-1 through 11-4-8 NMSA 1978 | 0004| (being Laws 1975, Chapter 102, Sections 1 through 8, as amended) | 0005| are repealed. | 0006| Section 8. EFFECTIVE DATE.--The effective date of the | 0007| provisions of this act is July 1, 1998. | 0008|  |