NM Stat § 6-27-8 (2021)
2021 New Mexico Statutes|Chapter 6 - Public Finances|Article 27 - Affordable Housing Act|Section 6-27-8 - Provisions to ensure successful completion of affordable housing projects; sale after foreclosure.

A. State, county and municipal housing assistance grants awarded pursuant to the Affordable Housing Act shall be applied for and awarded to qualifying grantees pursuant to the rules promulgated by the authority subject to the requirements of that act. B. The authority shall adopt rules in accordance with the Administrative Procedures Act [12-8-1 to 12-8-25 NMSA 1978] to carry out the purposes of the Affordable Housing Act. Concurrence by the New Mexico municipal league is required for rules applicable to municipalities. Concurrence by the New Mexico association of counties is required for rules applicable to counties. C. The authority shall adopt rules covering: (1) procedures to ensure that qualifying grantees meet the requirements of the Affordable Housing Act and rules promulgated pursuant to that act both at the time of the award and through the term of the grant; (2) establishment of an application and award timetable for housing assistance grants to permit the selection of the potential qualifying grantees prior to January of the year in which the grants would be made; (3) contents of the application, including an independent evaluation of the: (a) financial and management stability of the applicant; (b) demonstrated commitment of the applicant to the community; (c) cost-benefit analysis of the project proposed by the applicant; (d) benefits to the community of a proposed project; (e) type or amount of assistance to be provided; (f) scope of the affordable housing project; (g) substantive or matching contribution by the applicant to the proposed project; and (h) performance schedule for the qualifying grantee with performance criteria; (4) a requirement for long-term affordability of a state, county or municipal project so that a project cannot be sold shortly after completion and taken out of the affordable housing market; (5) a requirement that a grant for a state or local project must impose a contractual obligation on the qualifying grantee that the housing units in a state or local project developed pursuant to the Affordable Housing Act be occupied by low- or moderate-income households; (6) provisions for adequate security against the loss of public funds or property in the event that a qualifying grantee defaults on a contractual obligation for the project or abandons or otherwise fails to complete a project; (7) a requirement for review and approval of a housing grant project budget by the grantor before any expenditure of grant funds or transfer of granted property; (8) a requirement that, unless the period is extended for good cause shown, the authority shall act on an application within forty-five days of the date of receipt of an application that the authority deems to be complete and, if not acted upon, the application shall be deemed approved; (9) a requirement that a condition of grant approval be proof of compliance with all applicable state and local laws, rules and ordinances; (10) provisions defining "low- and moderate-income" and setting out requirements for verification of income levels; (11) a requirement that a county or municipality that makes a housing assistance grant shall have an existing valid affordable housing plan or housing elements contained in its general plan; (12) a requirement that the governmental entity enter into a contract with a qualifying grantee consistent with the Affordable Housing Act, which contract shall include remedies and default provisions in the event of the unsatisfactory performance by the qualifying grantee; and (13) provisions necessary to ensure the timely sale of an affordable housing project on which a qualifying grantee has defaulted on a contractual obligation or abandoned or otherwise failed to complete. D. The rules adopted by the authority pursuant to Paragraph (13) of Subsection C of this section shall require a governmental entity to: (1) make a determination that the property is not marketable for a price that would sufficiently recover the public funds invested in the project; (2) ascertain that the property has a title that has been transferred to the contracting governmental entity through a foreclosure sale, a transfer of title by deed in lieu of foreclosure or any other manner; (3) exercise reasonable efforts to ensure that all proceeds from the sale of a property pursuant to Paragraph (13) of Subsection C of this section are used solely for purposes pursuant to the Affordable Housing Act and that the qualifying grantee that held title to the property shall not benefit from the sale of the property or from the transfer of the affordable housing project; and (4) provide the terms for: (a) the sale of the property at fair market value; and (b) the removal of the contractual obligation requiring long-term occupancy of the property by low- or moderate-income households. History: Laws 2004, ch. 104, § 8; 2007, ch. 49, § 4; 2015, ch. 69, § 8. ANNOTATIONSThe 2015 amendment, effective July 1, 2015, required certain rules adopted by the New Mexico Mortgage Finance Authority to be approved by the New Mexico municipal league and New Mexico association of counties, and required the New Mexico Mortgage Finance Authority to adopt rules covering the sale of certain housing after foreclosure; in the catchline, after "projects", deleted "investigation" and added "sale after foreclosure"; in Subsection A, after "assistance grants", added "awarded"; in Subsection B, after "adopt rules", deleted "covering" and added "in accordance with the Administrative Procedures Act to carry out the purposes of the Affordable Housing Act. Concurrence by the New Mexico municipal league is required for rules applicable to municipalities. Concurrence by the New Mexico association of counties is required for rules applicable to counties.", and redesignated the remainder of Subsection B as new Subsection C; in Subsection C, added "The authority shall adopt rules covering"; in Paragraph (4) of Subsection C, after "affordable housing market", deleted "to ensure a quick profit for the qualifying grantee"; in Paragraph (6) of Subsection C, after "qualifying grantee", added "defaults on a contractual obligation for the project or"; added Paragraph (13) to new Subsection C; deleted former Subsections C and D; and added a new Subsection D. The 2007 amendment, effective June 15, 2007, authorized the attorney general to investigate alleged violations of the Affordable Housing Act.