Legislature put ‘big infusion into housing’

New Mexico’s dual crises of a decrease in affordable housing and an increase in homelessness were hot topics in Santa Fe at the recently concluded legislative session. The New Mexico Mortgage Finance Authority, one of the state’s most effective weapons in the fight, was the recipient of some key funding from lawmakers. The somewhat enigmatic quasi-governmental entity created in 1975 might best be described by its Housing New Mexico moniker.

The MFA administers hundreds of millions of dollars each year through diverse funding sources for 40 programs focused on homelessness and homeownership, including new housing, down payment assistance and home rehabilitation. Headquartered in Downtown Albuquerque with 128 employees, it works with more than 350 partner organizations, representing developers, realtors, landlords, nonprofits, for-profits, local governments and tribal governments. Twenty-five of its partners provide homeless services.

“We’ll do the funding of the actual homes, whether it be newly constructed homes or assistance to be able to acquire those homes or construction loans to build the homes,” longtime MFA Executive Director and CEO Isidoro “Izzy” Hernandez, said.

Hernandez said legislators also allocated $50 million for the MFA’s housing trust fund — the highest level since it was created in 2005.

• 18,963 New Mexicans served.
• 3,707 homes constructed, financed or rehabilitated.
• $585.8 million administered in funds.
• 350 statewide partners.

“It’s a big infusion into housing. I think it was a very successful legislative session,” he said. “Legislators were looking at [the housing and homelessness issue] holistically and asking: ‘How do we get more housing on the ground?’”

Hernandez said the housing trust fund money has enabled the development of new and more flexible programs, including its “Restoring Our Communities” program.

“That program has been restructured to be able to purchase abandoned or foreclosed homes, rehab them and resell them,” he said. “It’s starting to take off.” 

Hernandez said the funds also help to preserve multifamily developments that are deteriorating and need rehabilitation.

Urgent need

Hernandez said MFA’s statistics place an exclamation mark on the problem: an estimated 15,000 to 20,000 people in New Mexico are homeless each year; there is a shortage of 32,000 low-income rental housing units; and there are more than 40,000 housing units across the state in need of rehabilitation, such as a functioning kitchen or adequate plumbing.

“The vast majority of [needed rehabilitations] are on tribal lands and in colonias (rural communities), which are located more in the southern part of the state,” Hernandez said.

Further, said the MFA’s Robyn Powell, the pandemic exacerbated the crises with skyrocketing rents and home prices.

“It’s making it harder for people to afford the rents that they have,” Powell, the director of policy and planning and legislative liaison, said. 

She said the costs associated with owning a home have increased 60% nationally and 76% in New Mexico.

“It’s a big, big challenge for New Mexicans,” Powell said. “And then interest rates have doubled or close to tripled. That makes it very difficult for people.” 

Albuquerque projects

Albuquerque has benefitted from MFA funding and projects over the years. Some examples in the Downtown corridor include the Casitas de Colores apartments, Imperial Apartments and the Sterling Downtown apartment complex. The MFA worked with partners YES Housing, Romero Rose, and Sol Housing, formerly known as the Greater Albuquerque Housing Partnership on those projects.

“There’s probably over 500 units in the Downtown area that the MFA is involved in, and 4,500 units across the state in 27 different municipalities and 18 counties,” Hernandez said.

Hold your head up

Hernandez and Powell said the public shouldn’t “hang its head” when it hears that the MFA serves low- to moderate-income New Mexicans.

“People hear those terms and think that when we do a development the people that we help are not working or are very, very poor, and that’s not the case,” Hernandez said. 

The vast majority of clients, other than those who are homeless, he said, are working-class — teachers, police officers, nurses, and those in construction, local government and service industry jobs.

One of the MFA’s key programs serving the homeless population is “Rapid Rehousing,” which comes in the form of rental assistance vouchers for homes, apartments, hotels, or motels — something that provides a longer-term solution than an overnight shelter.

For more, go to housingnm.org.