New bill takes aim at affordable housing
After the recent signing of a bill by Gov. Michelle Lujan Grisham, local Taos-area nonprofits and governments are looking toward a new source of funding to help handle the local affordable housing crisis.
Senate Bill 143, better known as the New Mexico Housing Trust Fund, was passed in the most recent legislative session and signed into law by Lujan Grisham late last week. The goal is to provide “a dedicated funding stream for the construction and maintenance of thousands of additional affordable homes for low- and moderate-income New Mexicans,” according to a press release from the governor’s office.
The bill will guarantee that 2.5 percent of all severance tax bonds (payments on the extraction of natural resources) will go into the Housing Trust Fund, which will be managed by the New Mexico Mortgage and Finance Authority. It is expected to generate $20-25 million per year.
According to the most recent study commissioned by the Housing New Mexico Advisory Committee, there is a shortage of approximately 32,000 housing units for residents making less than 30 percent of the area-median-income (AMI) in New Mexico.
An additional 218,471 households in the state were recognized as “cost-burdened,” with more than 30 percent of the income going toward housing.
Taos has been hit specifically hard during the housing crisis. According to the American Community Survey done by the U.S. Census Bureau, 8,682 (42 percent) of Taos County’s 20,809 housing units are vacant, as are 1,102 (30 percent) of all housing units in the Town of Taos.
Local leaders say they are eager
to look at what opportunities might exist to assist Taos. District 3 County Commissioner and Chairwoman Darlene Vigil said the county has not had an opportunity to discuss the bill and what funding it could provide, but said she “can’t imagine why we would not pursue any potential funding that would help out the housing crisis in Taos County, if we are able to do so.”
Town of Taos Manager Rick Bellis said the town “is always interested in pursuing any opportunity to increase affordable housing in our community,” but acknowledged they still need to review the legislation. “Now that the bill is signed, we will review the details for project eligibility.”
Kim Park, executive director of HEART of Taos — which helps women and children experiencing homelessness — said she and DreamTree Project Executive Director Catherine Hummel plan to work in tandem to use the new funding to address housing issues locally. “We are working together to see how to bring affordable housing to Taos,” said Park. “We’ll most likely have to see how much will be allocated to this region.”
SB 134 co-sponsor Rep. Nathan Small of Doña Ana County acknowledged the burden of housing costs on New Mexican families. “SB 134 allows us to dedicate crucial resources to new construction, energy efficiency, and rehabilitation that will make a world of difference for many lower- and middle-income families across our state,” her news release stated.
“Access to affordable housing is an incredibly important factor in positively influencing an individual or family’s stability, health and well-being,” stated the bill’s other co-sponsor, Sen. Nancy Rodriguez of Santa Fe, in a news release. She said the recurring funds will benefit New Mexicans for “generations… I was very proud to co-sponsor this legislation and I am grateful to Governor Lujan Grisham for signing it into law today.”
Lujan Grisham said she was grateful to Small and Rodriguez for launching legislation to help in the much needed area. “Every New Mexican deserves a safe, affordable and comfortable place to live, and this funding stream will make a real difference in the lives of New Mexicans, especially in rural areas of the state,” she stated in a news release. “Providing greater access to stable and affordable housing will have profound and positive social implications that ripple throughout New Mexico communities.”
Isidoro Hernandez, Executive Director and CEO of the New Mexico Mortgage Finance Authority said the investment will go a long way to “transforming” the housing situation for a number of New Mexicans, and serve as the foundation for strong families and communities.”
New Mexico Home Builders Association chief executive officer Jack Milarch noted how important the funding was for fighting the ongoing issue. “With today’s serious housing shortage, especially at the lower cost end of the spectrum, protecting and maintaining the value of our existing homes and neighborhoods must be a mission-critical priority,” he stated in a news release.