HOUSE DEMOCRATS NEWS RELEASE

The New Mexico House of Representatives on Thursday passed House Bill 200, which would create the New Homes for New Mexico Program to help working families purchase their first home and incentivize homebuilders to build affordable, starter homes in areas of need. HB 200 passed by a vote of 52-15, and now moves to the Senate. 

The program would provide zero-interest loans of up to $75,000 to first-time homebuyers who earn less than 120% of the local median income for a family of four, and purchase a qualifying home from a participating homebuilder. 

“Right now, New Mexico simply does not have enough housing inventory, which is driving up the cost of housing for everyone. It also means that to find affordable housing, many workers have to move further from their jobs and spend hours commuting every day,” said lead sponsor Rep. Cristina Parajón (D-Albuquerque). “By incentivizing more housing development that’s affordable for working families and helping New Mexicans purchase starter homes without racking up unmanageable debt, we can address many of our state’s housing challenges while also helping more families put down roots in New Mexico.” 

The New Homes for New Mexico Program would be housed within the New Mexico Mortgage Finance Authority (MFA). Builders would be selected for the program through a competitive process, based on the amount of starter housing they plan to build, projected sale price of the homes, and a commitment to complete construction within three years of selection. 

MFA may issue loans up to $75,000 per household in high-cost counties, including Los Alamos, Santa Fe, and Taos, and up to $50,000 per household for homes in other areas of the state. Homes must be less than 1,800 sq. ft. lots less than 5,000 sq. ft. to qualify. Homebuyers must agree to occupy the home as their primary residence. 

HB 200 is supported by $10 million in this year’s state budget (HB 2). Additional sponsors include House Speaker Javier Martínez (D-Albuquerque) and Senators Heather Berghmans (D-Albuquerque) and Cindy Nava (D-Bernalillo).

Yesterday, the House also passed House Bill 103, which would protect New Mexico homeowners from unanticipated increases in property taxes due to local government re-zoning that is out of their control. Currently, zoning changes reset a property’s value to current market value, often causing significant increases in an owner’s tax bill. HB 103, also led by Rep. Parajón, makes sure that as long as a property remains residential, increases are capped at 3% annually. 

These two bills are part of the House Democrats’ platform this session to make essentials like housing more affordable for New Mexicans, amid rising costs and economic uncertainty at the federal level. This work builds on last session’s historic $110 million investment in affordable housing, which has already provided a stable place to call home for 1,500 individuals and 600 families. 

A select list of House Democrats’ housing priorities for this session is below. 

The Roundhouse will be open to the public for the entirety of this year’s 30-day session. Members of the public can also view floor sessions and committee meetings on the New Mexico Legislature’s Webcasts tab, and provide comment via phone or Zoom as directed on the daily schedule.   

Select Housing Priorities 

A non-comprehensive list of housing investments and legislation introduced by House Democrats this session includes: 

• Dedicating $100 million to address housing shortages, homelessness, and tribal housing issues, including funding for regional housing projects, new housing infrastructure, and housing programs like Linkages, Rapid Rehousing, and homelessness prevention (HB 2)*
• Appropriating $10 million for tribal housing (HB 2)*
• Allocating $5 million for rental assistance to prevent homelessness (HB 2)*
• Providing downpayment assistance to healthcare providers to help them put down roots here  (HB 2)*
• Providing no-interest loans to help working families purchase their first home and incentivizing homebuilders to build affordable, starter homes in areas of need (HB 200)*
• Protecting New Mexico homeowners from unanticipated increases in property taxes due to local government re-zoning that is out of their control (HB 103)*

*Indicates legislation has passed the House