New Mexico Housing Trust Fund

Purpose

Provide flexible funding to produce additional homeownership opportunities in the state. The NMHTF may be used to finance the development of subdivision building lots and/or the construction of homes that will provide affordable housing primarily for persons or households of low or moderate income.

Eligible Applicants

Nonprofit organizations, for-profit organizations, governmental housing agencies, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies and other entities as outlined in the Notice of Funding Availability (NOFA).

Eligible Activities

Subject to applicable law, NMHTF single-family development and construction loans may be used to assist in financing a wide range of activities to provide affordable homeownership opportunities, including costs of on-site infrastructure necessary to support the development of affordable single- family building lots and/or the construction of affordable homes. MFA encourages contact and inquiries from potential applicants prior to application to help assure that proposed activities are eligible.

Eligible Expenses

Subject to applicable law, NMHTF single-family development and construction loans may be used only for reasonable and customary costs that are directly attributable and traceable to the development, construction, acquisition/rehabilitation, and/or preservation of affordable homeownership projects.

Affordability Requirements

Single-family program beneficiaries may earn up to 150% of the Area Median Income (AMI), adjusted for household size. Exceptions exceeding 150% of AMI may be considered for high-cost counties including Santa Fe, Taos, Los Alamos, and Lincoln. The affordability period shall be enforceable for no less than five years.

Loan Terms

Infrastructure Development Loans: up to five years (current maximum $3,000,000)
Construction Revolving Line of Credit: up to three years (current maximum $3,000,000)

Interest Rates

Single-family development loans will be underwritten with a base interest rate of 1.00%. Rates may be adjusted upward based on level of need and staff underwriting.