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(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 75, which appropriates $200,000 from the general fund to contract for technical services to assist handicapped persons achieve home ownership.

SOURCES OF INFORMATION

New Mexico Mortgage Finance Authority (MFA)

Governor's Committee on the Concerns of the Handicapped (GCCH)

SUMMARY

Synopsis of Bill

Senate Bill 532 appropriates $100,000 to the Department of Finance and Administration to deposit in a revolving loan fund to be established and administered by the MFA for the purpose of making loans to persons with mobility impairment for down payments toward the purchase of homes in New Mexico. The bill appropriates an additional $100,000 to the GCCH to contract for technical services to assist persons with mobility impairment to achieve home ownership.

Significant Issues

According to the GCCH, people with disabilities have difficulty obtaining home ownership due to a lack of affordable housing and accessibility to financing and other technical assistance required when purchasing a home.

To date, the MFA has funded $135,600 from its funds to accomplish the same intent as provided in Senate Bill 532.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 75 proposes a $200,000 appropriation from the general fund to GCCH to contract for technical services to assist handicapped persons achieve home ownership

TECHNICAL ISSUES

The MFA offers the following for consideration: "The bill creates a redundancy on the section it proposes to amend. To wit, Section 58-18-5.5A, the MFA "is designated as the state housing authority for all purposes". In Section 58-18-5.5C, the MFA is directed to "administer federal and state housing programs...", and in Section 58-18-5.5G, the MFA is granted power to enter into joint powers agreements with the department of finance and administration pursuant to the Joint Powers Agreement Act. These designations obviously would include the administration of an loan fund for home ownership purposes under a joint powers agreement with the Department of Finance and Administration. Consequently, it is our opinion that since the existing designations address this bill's intended purpose, as drafted on paragraph H, the proposal is unnecessary. We respectfully recommend that funding of $100,000 for the revolving loan fund be set without requiring it in statute. This recommendation is similar to the provision set forth in House Bill 75"."

POSSIBLE QUESTIONS

• •The MFA has existing staff with expertise in providing technical assistance in home ownership. Would the appropriation to the GCCH be a duplication of effort?

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