NEW HOMES FOR NEW MEXICO PROGRAM

HB 200/a
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AN ACT
RELATING TO HOUSING; CREATING THE NEW HOMES FOR NEW MEXICO
PROGRAM; PROVIDING FOR PROGRAM ADMINISTRATION BY THE NEW
MEXICO MORTGAGE FINANCE AUTHORITY; PROVIDING LOANS TO
ELIGIBLE HOME BUYERS; PROVIDING FOR REPAYMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Affordable Housing Act
is enacted to read:
"NEW HOMES FOR NEW MEXICO PROGRAM CREATED--PROGRAM
REQUIREMENTS--REPAYMENT.--
A. As used in this section:
(1) "eligible builder" means a residential
home builder that meets eligibility criteria for
participation in the program;
(2) "eligible buyer" means a person seeking
to purchase residential property that meets eligibility
criteria for participation in the program;
(3) "high-cost county" means Los Alamos,
Santa Fe or Taos county;
(4) "program" means the new homes for New
Mexico program; and
(5) "starter home" means a home built by an
eligible builder to be purchased by an eligible buyer that
meets eligibility criteria established by rules promulgated
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pursuant to this section.
B. The "new homes for New Mexico program" is
created in the authority to provide loans for eligible buyers
to purchase starter homes from eligible builders. The
authority shall promulgate rules to carry out the provisions
of this section.
C. The authority shall create an account for any
money designated for the program. Loans for the program
shall be provided from the account, and the account may
consist of subaccounts as the authority deems necessary.
Money from repayment of a loan granted pursuant to this
section shall be deposited into the account and provided to
future eligible buyers.
D. The authority may grant a loan to an eligible
buyer to purchase a starter home from an eligible builder;
provided that the eligible buyer:
(1) has not owned a home prior to acceptance
into the program;
(2) earns a current annual income that is
below one hundred twenty percent of the area median income in
the county in which the starter home being purchased will be
located, for a family of four, as determined by the United
States department of housing and urban development; and
(3) resides in the starter home as the
eligible buyer's primary residence.
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E. The authority shall solicit competitive
proposals to participate in the program. A competitive
proposal submitted pursuant to this subsection shall include:
(1) the number of homes the builder proposes
to build;
(2) the projected price of each home;
(3) marketing and sales strategies; and
(4) a time line for completing the homes.
F. The authority shall promulgate rules to provide
for:
(1) administration of the program;
(2) criteria for applications;
(3) eligibility criteria for eligible
builders and eligible buyers;
(4) criteria for starter homes built by
eligible builders;
(5) criteria for loan disbursement and
repayment;
(6) procedures to connect eligible buyers
and eligible builders; and
(7) periodic verification that the starter
home purchased pursuant to this section remains the eligible
buyer's primary residence.
G. Applications for loans to purchase starter
homes pursuant to this section shall be submitted to the
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authority on forms provided by the authority and shall
include:
(1) documentation that the applicant earns a
current annual income that is below one hundred twenty
percent of the area median income in the county in which the
starter home being purchased will be located, for a family of
four, as determined by the United States department of
housing and urban development; and
(2) other documentation required by the
authority in rules promulgated pursuant to this section.
H. Loans granted pursuant to this section shall:
(1) not exceed fifty thousand dollars
($50,000) per household for a starter home located outside
the jurisdictional boundaries of a high-cost county or
seventy-five thousand dollars ($75,000) per household for a
starter home within the jurisdictional boundaries of a high-
cost county;
(2) bear an annual interest rate of zero
percent; and
(3) be repaid upon:
(a) the sale of the property purchased
with a loan granted pursuant to this section; or
(b) the failure of the eligible buyer
to occupy the property purchased with a loan granted pursuant
to this section as the eligible buyer's principal residence.
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I. An eligible builder shall:
(1) not build a starter home that exceeds
one thousand eight hundred square feet;
(2) not build a starter home on a lot that
exceeds five thousand square feet;
(3) complete construction on a starter home
within three years of program selection; and
(4) build starter homes that are affordable
to an eligible buyer."