CS/HB 293 CREDITWORTHINESS ASSISTANCE PROGRAM

Rep Janelle I Anyanonu

Actions: [5] HHHC/HAFC-HHHC [9] DNP-CS/DP-HAFC

Scheduled: Not Scheduled

 House Bill 293 (HB 293) 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. 

 House Bill 293 (HB 293) adds definitions to Section 6-27-3 NMSA 1978, as follows:

•	A "creditworthiness assistance grant" means 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" means 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.

New material is added to create the “creditworthiness assistance program.” Eligibility requirements and award caps for the program are specified. Rules are to be promulgated regarding eligibility requirements, applications, training programs, and a process for other grantors to administer the creditworthiness assistance grants. 

Section 6-27-5 NMSA 1978 is amended to allow for the state to donate, provide or pay all or a portion of the costs of unpaid rent owed by a participant or damages caused to a residential property.

Creditworthy assistance grants are allowed, and the "creditworthiness assistance fund" is created. 

The fund consists of distributions, gifts, grants, donations and income from investment of the fund. Money remaining in the fund at the end of a fiscal year is not to revert to any other fund. 

An appropriation is made of two hundred fifty thousand dollars ($250,000) from the General Fund to the Department of Finance and Administration for expenditure in Fiscal Year 2025 and subsequent fiscal years to contract with the New Mexico Mortgage Finance Authority to administer the Creditworthiness Assistance Fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year is not to revert to the General Fund.
 

 If the bill does not pass, the program and related fund will not be available. 

 Committee Substitute on February 6, 2024 in the House Health and Human Services Committee

HHHCcs/HB 293:  The House Health and Human Services Committee substitute for House Bill 293 (HB 293) makes the following changes:

The purpose is revised to explicitly state that the creditworthiness program is to provide financial assistance to landlords and tenants for unpaid rent and property damages.

All definitions are removed, and references to grants are removed. 

The proposed amendments regarding affordable housing and the requirement for enactments of ordinances are removed.

Provisions for sale after foreclosure are removed.

Sections regarding rules and general processes are removed.
 

 House Bill 195 (HB 195) – Housing Fund and Changes
House Bill 260 (HB 260) – MFA Affordable Housing Study
House Bill 261 (HB 261) – Affordable Housing Tax Credit Changes
Senate Bill 31 (SB 31) – MFA Affordable Housing Act Funds
Senate Bill 212 (SB 212) – Regional Affordable Housing Plans
Senate Bill 216 (SB 216) – NMFA Affordable Housing Projects