Summary:

 House Bill 453 (HB 453) amends and enacts sections of the Affordable Housing Act; creates the Creditworthiness Assistance Program; provides for Creditworthiness Assistance Grants; creates the Creditworthiness Assistance Fund; and makes an appropriation.  

Legislation Overview:

 House Bill 453 (HB 453) amends Section 6-27-3 NMSA 1978, adding definitions of the "creditworthiness assistance grant," meaning a grant of money to be used by a participant for: (1) all or a portion of unpaid rent; and (2) damages caused to a rented residential property by a participant in the creditworthiness assistance program. A “participant” is defined as a person who participates in a training program authorized by the state, a county or a municipality that provides information on the importance of budgeting and the operation of credit histories and credit scores.

A new section of the Affordable Housing Act (Act) is enacted to create the “Creditworthiness Assistant Grant (Grant). To be eligible for a grant: (1) a nonindividual qualifying grantee must: (a) have a functioning accounting system that is operated in accordance with generally accepted accounting principles or a qualified designated representative; and (b) have among its purposes significant activities related to renting residential housing; and (2) an individual qualifying grantee must meet all requirements according to the Act. 

A grant may not exceed: (1) five thousand dollars ($5,000) of unpaid rent to a qualifying grantee per participant; (2) ten thousand dollars ($10,000) of unpaid rent to a qualifying grantee per calendar year; and (3) two thousand five hundred dollars ($2,500) for damages caused to a rented residential property by a participant. Rules will be established regarding: (1) requirements for a participant to be eligible to receive a creditworthiness assistance grant; (2) the application for a Grant; (3) the training program on the importance of budgeting and the operation of credit histories and credit scores; and (4) the process for other grantors to administer Grants.

Section 6-27-5 NMSA 1978 is amended to provide that the state, including any agency or instrumentality of the state, or a county, a municipality or the authority may donate, provide or pay all or a portion of costs of unpaid rent owed by a participant or damages caused to a residential property per the requirements provided in Subsection B of Section 2 of the Act.

Section 6-27-7 NMSA 1978 is amended to provide that a county or municipality may provide housing assistance grants and creditworthiness assistance grants after enactment of an ordinance authorizing such grants and stating their requirements and purposes.

Section 6-27-8 NMSA 1978 is amended to add references to the Grant in the affordable housing section.

A new section of the Affordable Housing Act (Act) is enacted to establish the "Creditworthiness Assistance Fund" (Fund). The Fund consists of distributions, gifts, grants, donations and income from investment of the Fund. Money in the Fund must be used to provide Grants and to pay related administrative costs.

Two hundred fifty thousand dollars ($250,000) is appropriated from the General Fund to the Department of Finance and Administration for expenditure in fiscal year 2026 and subsequent fiscal years to contract with the New Mexico Mortgage Finance Authority to administer the Fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year is not to revert to the General Fund.




 

Current Law:

 The New Mexico Mortgage Finance Authority exists to assist New Mexico residents in obtaining affordable housing and other services; however, there is no Creditworthiness Assistance Program nor Creditworthiness Assistance Fund at this time, and an appropriation for these purposes has not been made.  

Amendments:

 Amended March 7, 2025 in HAFC

HAFCa/HB 453: The House Appropriations and Finance Committee amendment to House Bill 453 makes the following changes:

1. On page 1, lines 14 and 15, strike "; MAKING AN APPROPRIATION". 
2. On page 16, strike lines 1 through 8.