Plan to Increase Income Limits for Housing Programs Delayed by New Mexico Authority

The board of Housing New Mexico, formerly known as the New Mexico Mortgage Finance Authority, decided to pause a proposal that would have raised the income caps for eligibility in affordable housing programs. The change, which was to be discussed during a meeting on December 19, would have increased the cap from 150% to 200% of the area median income for various housing subsidies.

While the board did not provide an official explanation for the delay, Housing New Mexico spokesperson Kristie Garcia explained that members received feedback from state lawmakers and others expressing concerns. Garcia emphasized that the board wanted more time to address these concerns and provide further information to legislators on how the funds are distributed across different housing programs.

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Housing New Mexico is responsible for overseeing a range of affordable housing programs, including down payment assistance, first-time homebuyer initiatives, and weatherization funding. These programs are aimed at helping individuals and families with incomes below a certain threshold of the area median income.

The board’s proposal aimed to raise the income eligibility cap to allow more households to qualify for housing subsidies. For instance, a four-person household in Albuquerque, with an area median income of $79,900, could currently qualify for these programs if they earned up to $119,850. The proposed policy would have increased that threshold to $159,800, enabling higher-income households to benefit from the programs.

Supporters of the change argued that it was necessary due to rising housing costs and high interest rates. However, some lawmakers, including Rep. Kathleen Cates (D-Rio Rancho), expressed concern that the increase would make most New Mexicans eligible for subsidies, and that more data was needed to justify such a significant change in a short amount of time.

Daniel Werwath, head of the New Mexico Office of Housing, also raised concerns about the proposal, suggesting that extending public resources to higher-income households might not address the state’s ongoing housing shortage. He advocated for a focus on building new homes that are affordable for New Mexicans without the need for subsidies.

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The housing authority received significant funding during the last legislative session, including a one-time $50 million contribution to the Housing Trust Fund, and they are seeking an additional $500 million for affordable housing initiatives in the upcoming session. Governor Michelle Lujan Grisham’s budget proposal includes $100 million for affordable housing and anti-homelessness measures, reflecting the state’s ongoing efforts to address the housing crisis.

While the board’s decision to delay the policy change allows for more discussion, it highlights the ongoing debate over the best approach to solving New Mexico’s housing challenges.

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