House Bill 43
APPROPRIATION FOR THE PURPOSE OF SUPPLEMENTING A FUND USED TO PURCHASE MORTGAGE LOANS MADE TO LOW INCOME FAMILIES

$5M thru DFA to New Mexico Mortgage Finance Authority

Program designed to assist non-profit organizations who build and sell homes to New Mexico residents at 0% interest.  Eligible non-profit organizations must meet the following criteria:

• 90% of families served live on 50% or less than their area median income
• Have verifiable income to make payments not in excess of 30% of income.
• Have invested 300 hours in the construction effort.
• Under gone credit counseling and budgeting training.

Immediate FIRST YEAR Economic Benefits:

• All LOAN funds leveraged 2 to 1 so annual loans of $1.7M will generate $4.65M in construction labor and material bought in New Mexico.
• $4M increased property assessments throughout the State Annually.

Loan details
• All loans are secured by a First Mortgage with recourse to the seller.
• State loan investment of $50,000 per home appraised at $125,000.

Program Overview next 20 years

• Payback to MFA $7,550,000
• Escrow payments $40,000 average per home X 100 homes equals $4M
• Economic Multiplier of 3 = $12,000,000
• Amount returned to MFA  exceeds funding by $2,550,000

Accomplishments
• Housing Built to Date 500+ economic benefit $82,000,000
• Annual Insurance and Property Taxes $400,000  
• Lives changed over 3,000 New Mexicans
Contact your legislators and ask that they support this bill to support affordable housing in New Mexico.

You can help support these bills by sending letters, making phone calls and presentations and/or attending committee hearings.

Find your legislator’s phone and email address here.