As part of a larger effort to build more affordable housing throughout New Mexico, Governor Michelle Lujan Grisham has signed legislation creating a funding source for such construction.
The legislation, Senate Bill 134, will see new funding coming to the New Mexico Housing Trust Fund, which is administered by the New Mexico Mortgage Finance Authority.
In so doing, the bill targets exactly 2.5% of New Mexico’s severance tax bonding capacity for that fund.
In a statement, Lujan Grisham remarked, “Providing greater access to stable and affordable housing will have profound and positive social implications that ripple throughout New Mexico communities.”
According to an analysis of the bill provided by the Legislative Finance Committee, upwards of $24 million will be earmarked for the fund. Establishing that earmark, the report notes, “creates an expectation that the program will continue in future years.”
The committee report additionally noted that funding to build and rehabilitate housing for low-to-moderate income residents comes as the state endures a “shortage of 32,000 units for extremely low-income renters.”
In addition, more than 40,000 such units in the state lack plumbing and complete kitchens. To keep up with population growth, the report also noted that around 5,100 new units need to be built every year for the next 5 years.
By Garry Boulard
