After significant federal housing-related changes, the New Mexico Mortgage Finance Authority is planning to ask lawmakers to give it $135 million in the January 2026 legislative session, funding that would build on hundreds of millions of dollars the Legislature has spent on housing in recent years.
The organization, which rebranded last year as Housing New Mexico, operates as a quasi-governmental agency that oversees hundreds of millions of dollars in funding to spur affordable housing development, as well as help New Mexicans afford to buy or rent.
The funding would benefit Housing NM’s Housing Trust Fund, which issues loans and grants for an array of programs — including down-payment assistance for first-time homebuyers—enabling it to serve up to 5,200 New Mexicans, according to a cost breakdown in a recent presentation.
While the Legislature has allocated more than $160 million for the fund in the last several sessions, current federal and economic factors justify the increased ask, said Housing NM’s Policy Director Robyn Powell.
For instance, the federal budget bill enacted by President Donald Trump last summer included a 12% increase in funding for tax credits that incentivize the construction or major rehabilitation of affordable housing projects. As a result, the demand for the supplemental funding Housing NM provides is expected to increase from $40 million to $70 million, according to a presentation Powell gave to the agency’s board last week
Meanwhile, Powell told Source New Mexico in a recent interview that she is concerned the federal Housing and Urban Development agency will claw back funding that helps low-income households pay for utilities or weatherize their homes. As a result, she is hoping the Legislature will provide the Housing Trust Fund more resources to help cover some of those losses, she said.
Housing New Mexico’s board approved the request last week. On Thursday, a legislative oversight committee will consider whether to endorse the request ahead of the 30-day session beginning in January.
Housing New Mexico leaders say they can spend money quickly out of the Housing Trust Fund, and also that putting money in the fund is a good investment, given how much of the fund’s offerings are low-interest loans that return to the fund.
“The more investment that the state can do, the better for everybody,” Powell told Source New Mexico in a recent interview, given the state’s housing shortage estimated to be as many as 90,000 units.
Since July 2023, the Legislature has awarded $167.5 million to the fund. Of that, Housing New Mexico has awarded 82% and spent 34%, according to data it provided. The money spent includes about $29 million on down payment assistance and $17 million on rental housing development.
