Housing bills, dollars attempt to address NM’s housing shortage
What can New Mexico do to solve its housing shortage? It’s an issue lawmakers in the 2024 Legislature approved around $200 million to tackle, supporting investments in new housing developments, affordable housing and homelessness initiatives.
The New Mexico Mortgage Finance Authority estimated last year New Mexico has a shortage of 32,000 affordable units for low-income households. The National Low Income Housing Coalition reports there’s a need for 40,000 additional affordable rental homes for low-income communities in the state.
Rep. Michael Padilla, D-Albuquerque, told lawmakers during the session those numbers are only growing.
That’s why, he said, lawmakers introduced House Bill 195, a measure that expands the Opportunity Enterprise Act to add a housing development revolving fund. It was among the first bills Gov. Michelle Lujan Grisham signed into law.
“The housing crisis across the country and here in New Mexico is pretty serious,” Padilla said.
Padilla said last month the fund will provide loans for affordable housing, infrastructure and workforce development housing projects that aren’t eligible for New Mexico Mortgage Finance Authority financing. He said projects in municipalities will get prioritization for financing.
The budget has a $175 million appropriation for the funds — $125 million for the housing development fund and $50 million for the opportunity enterprise fund.
Another housing bill Lujan Grisham signed is Senate Bill 216, which amends the New Mexico Finance Authority Act to add housing as a public project eligible for financing and creates the local government planning fund, which can send money to affordable housing plans.
Both bills go into effect May 15, which is 90 days after the end of the Legislature.
One housing measure that didn’t get through the Legislature would’ve created an Office of Housing. Gov. Michelle Lujan Grisham has committed to establishing the office anyway. She said in a February post-session news conference there’s $2 million in the budget to staff the office.MFA spokesperson Kristie Garcia told the Journal all the money aimed at addressing housing and homelessness will impact the state, whether it’s in support of homelessness reduction programs or affordable homes available for renting or buying.
“The Legislature made a historic investment in housing and homeless initiatives this year,” she said.