This chapter may be cited as the "affordable housing assistance
grant and loans chapter."
(Ordinance 2023-05 adopted 7/25/2023)
This chapter repeals and replaces Santa Fe County Ordinance
2009-14, as amended, and 2011-3, as amended, and is adopted to implement
the county's 2023 Affordable Housing Plan. In accordance with
the N.M. Constitution, article IX, § 14, the Affordable
Housing Act, NMSA 1978, § 6-27-1 et seq. ("act"), New Mexico
Mortgage Finance Authority ("MFA") Rules, the purpose of the affordable
housing assistance grant and loan chapter is to:
(1) Establish procedures to ensure that local housing assistance grantees
are qualifying grantees who meet the requirements of the act and the
rules promulgated pursuant to the act both at the time of the award
and throughout the term of any grant or loan under the program;
(2) Establish an application and award timetable for local housing assistance
grants or loans to permit the selection of the qualifying grantee(s);
(3) In conjunction with the MFA, create an evaluation process to determine:
(a)
The financial and management stability of the applicant;
(b)
The demonstrated commitment of the applicant to the community;
(c)
A cost-benefit analysis of the project proposed by the applicant;
(d)
The benefits to the community of a proposed project;
(e)
The type or amount of assistance to be provided;
(f)
The scope of the affordable housing project;
(g)
Any substantive or matching contribution by the applicant to
the proposed project;
(h)
A performance schedule for the qualifying grantee with performance
criteria; and
(i)
Any other rules or procedures the county believes are necessary
for a full review and evaluation of the applicant and the application
or which the MFA believes is necessary for a full review of the county's
evaluation of the applicant;
(4) Require long-term affordability of the county's affordable housing
projects, so that a project cannot be sold shortly after completion
and taken out of the affordable housing market;
(5) Require that a grant or loan for a project must impose a contractual
obligation on the qualifying grantee that the affordable housing units
in any project be occupied by persons of low or moderate income as
defined in this chapter;
(6) Provide for adequate security against the loss of public funds or
property in the event that the qualifying grantee abandons or otherwise
fails to complete the project;
(7) Require review and approval of a housing grant project budget by
the county and/or the MFA before any expenditure of grant funds or
transfer of granted property;
(8) Require that a condition of grant or loan approval be proof of compliance
with all applicable state and local laws, rules and ordinances;
(9) Provide definitions for "low-income" and "moderate-income" and set
out requirements for verification of income levels;
(10)
Provide the county with a valid affordable housing program;
and
(11)
Require that the county enter into a contract with the qualifying
grantee consistent with the act, which contract shall include remedies
and default provisions in the event of the unsatisfactory performance
by the qualifying grantee and which contract shall be subject to the
review of the MFA in its discretion.
(Ordinance 2023-05 adopted 7/25/2023)
The following words and terms shall have the following meanings.
Act.
The Affordable Housing Act, NMSA 1978, § 6-27-1
et seq.
Affordability period.
(1)
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds that have been awarded,
loaned, donated, or otherwise conveyed to the qualifying grantee is
from one dollar ($1.00) to fourteen thousand nine hundred ninety-nine
dollars and ninety-nine cents ($14,999.99), then the affordability
period shall be not less than five (5) years.
(2)
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds is from fifteen thousand
dollars ($15,000.00) up to and including forty thousand dollars ($40,000.00),
then the affordability period shall be not less than ten (10) years.
(3)
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds is greater than forty
thousand dollars ($40,000.00) up to and including one hundred thousand
dollars ($100,000.00), then the affordability period shall be not
less than fifteen (15) years.
(4)
If the fair market value of any housing assistance grant or
the total amount of affordable housing funds is greater than one hundred
thousand dollars ($100,000.00), then the affordability period shall
be not less than twenty (20) years.
Affordable housing plan or plan.
A plan pursuant to detailed research and analysis of the
community and housing profile, including a review of land use and
policy regarding land use, which produces a housing needs assessment
for low- and moderate-income households in that locality.
Affordable housing project or project.
Any work or undertaking, whether new construction, acquisition
of existing residential housing, remodeling, improvement, rehabilitation
or conversion, which may be developed in one or more phases, as approved
by the county for the primary purposes as allowed by the act.
Affordable housing.
Residential housing primarily for persons or households of
low- or moderate-income.
Affordable.
Consistent with minimum rent and/or income limitations set
forth in the act and in guidelines established by MFA.
Applicant.
An individual, a governmental housing agency, regional housing
authority, a nonprofit organization, or a for-profit organization,
including a corporation, limited liability company, partnership, joint
venture, syndicate, or association meeting the appropriate criteria
set by the county.
Application.
An application to participate in one or more affordable housing
projects or programs under the act submitted by an applicant to the
county.
Builder.
An individual or entity licensed as a general contractor
to construct residential housing in the state that satisfies the requirements
of a qualifying grantee and has been approved by the county and/or
the MFA to participate in an affordable housing program. The term
"builder" shall also include an individual or entity that satisfies
the requirements of a qualifying grantee and has been approved by
the county and/or the MFA to participate in an affordable housing
program, who is not licensed as a general contractor in the state,
provided such individual or entity contracts with a general contractor
licensed in the state to construct residential housing.
Building.
A structure capable of being renovated or converted into
affordable housing or a structure that is to be demolished and is
located on land donated for use in connection with an affordable housing
project.
Commission.
The Board of County Commissioners of Santa Fe County.
Congregate housing facility.
Residential housing designed for occupancy by more than four
persons of low- or moderate-income living independently of each other.
The facility may contain group dining, recreational, health care or
other communal living facilities and each unit in a congregate housing
facility shall contain at least its own living, sleeping, and bathing
facilities.
County.
Santa Fe County, New Mexico, a unit of local government under
the Constitution and laws of the State of New Mexico.
Federal government.
The United States of America and any agency or instrumentality,
corporate or otherwise, of the United States of America.
Household.
One or more persons occupying a housing unit.
Housing assistance grant or loan.
The donation, provision or payment, or loan by the county
of or for:
(1)
Land upon which affordable housing will be constructed;
(2)
An existing building that will be renovated, converted or demolished
and reconstructed as affordable housing;
(3)
The costs of acquisition, development, construction, financing,
and operating or owning affordable housing; or
(4)
The costs of financing or infrastructure necessary to support
affordable housing.
Housing related services.
Any service necessary for resident support, residential amenities
or the operation of an affordable housing project.
HUD
The United States Department of Housing and Urban Development.
Infrastructure improvement.
Includes, but is not limited to:
(1)
Sanitary sewage systems, including collection, transport, storage,
treatment, dispersal, effluent use and discharge;
(2)
Drainage and flood control systems, including collection, transport,
diversion, storage, detention, retention, dispersal, use and discharge;
(3)
Water systems for domestic purposes, including production, collection,
storage, treatment, transport, delivery, connection and dispersal;
(4)
Areas for motor vehicle use for road access, ingress, egress
and parking;
(5)
Trails and areas for pedestrian, equestrian, bicycle or other
non-motor vehicle use for access, ingress, egress and parking;
(6)
Parks, recreational facilities and open space areas for the
use of residents for entertainment, assembly and recreation;
(7)
Landscaping, including earthworks, structures, plants, trees
and related water delivery systems;
(8)
Electrical transmission and distribution facilities;
(9)
Natural gas distribution facilities;
(11)
Cable or other telecommunications lines and related equipment;
(12)
Traffic-control systems and devices, including signals, controls,
markings and signs;
(13)
Inspection, construction management and related costs in connection
with the furnishing of the items listed in this subsection; and
(14)
Heating, air-conditioning and weatherization facilities, systems
or services, and energy efficiency improvements that are affixed to
real property.
Infrastructure purpose.
(1)
Planning, design, engineering, construction, acquisition or
installation of infrastructure, including the costs of applications,
impact fees and other fees, permits and approvals related to the construction,
acquisition or installation of the infrastructure, provided the county
may determine it appropriate to reduce or waive building permit fees,
sewer and water hook-up fees and other fees with respect to an affordable
housing project for which affordable housing funds and/or housing
assistance grants are awarded, loaned, donated or otherwise distributed
under the act;
(2)
Acquiring, converting, renovating or improving existing facilities
for infrastructure, including facilities owned, leased or installed
by the owner;
(3)
Acquiring interests in real property or water rights for infrastructure,
including interests of the owner; and
(4)
Incurring expenses incident to and reasonably necessary to carry
out the purposes specified in this subsection.
MFA.
The New Mexico Mortgage Finance Authority.
MFA Act.
The Mortgage Finance Authority Act, enacted as chapter 303
of the Laws of 1975 of the State of New Mexico, as amended (being
sections 58-18-1 through 58-18-27, inclusive, NMSA (1978), as amended).
Mortgage lender.
Any bank or trust company, mortgage company, mortgage banker,
national banking association, savings bank, savings and loan association,
credit union, building and loan association and any other lending
institution; provided that the mortgage lender maintains an office
in the State of New Mexico, is authorized to make mortgage loans in
the state and is approved by the county and either the Federal Housing
Authority, Veterans' Affairs, Federal National Mortgage Association
(now known as Fannie Mae), or Federal Home Loan Mortgage Corporation
(now known as Freddie Mac).
Mortgage loan.
A financial obligation secured by a mortgage, including a
mortgage loan for a project.
Mortgage.
A mortgage, mortgage deed, deed of trust or other instrument
creating a lien, subject only to title exceptions as may be acceptable
to the county, on a fee interest in real property located within the
county or on a leasehold interest that has a remaining term at the
time of computation that exceeds or is renewable at the option of
the lessee until after the maturity day of the mortgage loan.
Multi-family housing program.
A program involving a congregate housing facility, a multiple-family
housing project, a transitional housing facility or a shelter used
to provide emergency or transitional housing opportunities to low-income
or moderate-income families who are or are at risk of becoming homeless.
Multiple-family housing project.
Residential housing that is designed for occupancy by more
than four persons or families living independently of each other or
living in a congregate housing facility, at least sixty percent (60%)
of whom are persons of low- or moderate-income, including without
limitation persons of low- or moderate-income who are elderly and/or
disabled as determined by the county and/or the MFA pursuant to HUD
definitions, provided that the percentage of low-income persons and
families shall be at least the minimum, if any, required by federal
tax law.
Persons of low- or moderate-income.
Persons and families the county determines lack sufficient
income to pay enough to cause private enterprise to build an adequate
supply of decent, safe and sanitary residential housing in the county
and whose incomes are below the income levels established by the MFA
and the plan to be in need of the assistance made available by the
act, taking into consideration, without limitation, such factors as
defined under the act. For purposes of this definition, the word "families"
shall mean a group of persons consisting of, but not limited to, the
head of a household; his or her spouse, if any; and children, if any,
who are allowable as personal exemptions for federal income tax purposes.
In accordance with the plan, persons of low- and moderate-income who
are eligible for assistance in accordance with the plan are as follows:
(1)
Persons of low-income shall mean persons in households with
annual gross incomes below 80% of area median income for the county
as approved and published each year by MFA and verified by the county.
(2)
Persons of moderate-income shall mean persons in households
with annual gross incomes between 80% and 120% of area median income
for county as approved and published each year by MFA and verified
by the county.
(3)
For purposes of this definition, "annual gross income" shall
mean the annual anticipated income from assets, regular cash or noncash
contributions, and any other resources and benefits determined to
be income by HUD, as defined in 24 CFR section 5.609.
Policies and procedures.
Policies and procedures of the MFA, including but not limited
to, mortgage loan purchasing, selling, servicing and reservation procedures,
which the MFA may update and revise from time-to-time as the MFA deems
appropriate.
Public service agencies.
Include, but are not limited to, any entities that support
affordable housing and which believe that the program or project proposed
by the applicant is worthy and advisable, but which are not involved,
either directly or indirectly, in the affordable housing program or
project for which the applicant is applying.
Qualifying grantee.
(1)
An individual who is qualified to receive assistance pursuant
to the act, the rules, and this chapter and is approved by the county
and MFA, as applicable; and
(2)
A governmental housing agency, regional housing authority, corporation,
a limited liability company, partnership, joint venture, syndicate,
association or a nonprofit organization that:
(a)
Is organized under state or local laws and can provide proof
of such organization;
(b)
If a nonprofit organization, has no part of its net earnings
inuring to the benefit of any member, founder, contributor, or individual;
(c)
Is qualified to receive assistance pursuant to the act, the
rules and this chapter; and
(d)
Is approved by the county and MFA, as applicable.
Recertification.
The recertification of applicants and/or qualifying grantees
participating in any affordable housing programs or in any programs
under the act as determined necessary from time-to-time by the county
and/or the MFA.
Rehabilitation.
The substantial renovation or reconstruction of an existing
single-family residence or a multifamily housing project, which complies
with requirements established by the MFA. Rehabilitation shall not
include routine or ordinary repairs, improvements or maintenance,
such as interior decorating, remodeling or exterior painting, except
in conjunction with other substantial renovation or reconstruction.
Residential housing.
Any building or portion thereof that is primarily occupied,
or designed or intended primarily for occupancy, as a residence by
one or more households and any real property that is offered for sale
or lease for the construction or location thereon of such a building,
or portion thereof. "Residential housing," includes congregate housing,
manufactured homes and housing intended to provide or providing transitional
or temporary housing for homeless persons.
Residential use.
That the building or the portion of the building to benefit
from the affordable housing funds or housing assistance grant is designed
primarily for use as the principal residence of the occupant or occupants
and shall exclude vacation or recreational homes.
RFP.
Any request for proposals made by the county to solicit proposals
for affordable housing projects and related services.
Rules.
The New Mexico Mortgage Finance Authority Affordable Housing
Rules adopted pursuant to section 6-27-8(B) NMSA 1978.
State.
The State of New Mexico.
Transitional housing facility.
Residential housing that is designed for temporary or transitional
occupancy by persons of low- or moderate-income, or persons with special
needs who require supportive housing opportunities, such as persons
with physical or mental disabilities, the elderly, people with medical
conditions, the homeless, victims of domestic violence, foster youth,
refugees, and others as identified by HUD.
(Ordinance 2023-05 adopted 7/25/2023)
The following requirements shall apply to all housing assistance
grants or loans and/or affordable housing funds awarded, loaned or
otherwise distributed by the county under the act to a qualifying
grantee.
(1) Request for proposals.
The county, in its discretion,
may issue one or more RFPs to solicit applications from applicants
or shall otherwise identify a qualifying grantee for the use of any
affordable housing funds or housing assistance grants or loans to
be awarded, loaned, donated or otherwise distributed under the act.
(2) Applicant eligibility.
The following applicants are
eligible under the act to apply for affordable housing funds or a
housing assistance grant or loan to provide housing or related services
to persons of low- or moderate-income in the community:
(a)
All individuals who are qualified to receive assistance pursuant
to the act, the rules, and this chapter that are approved by the county
and MFA, as applicable;
(b)
All regional housing authorities and any governmental housing
agencies;
(c)
All for-profit organizations, including any corporation, limited
liability company, partnership, joint venture, syndicate or association;
(d)
All nonprofit organizations meeting the following requirements:
1.
A primary mission of the nonprofit organization must be to provide
housing or housing related services to persons of low- or moderate-income;
2.
The nonprofit organization must have received its 501(c)(3)
designation prior to submitting an application;
3.
Have no part of its net earnings inuring to the benefit of any
member, founder, contributor, or individual;
(e)
All nonindividual applicants must:
1.
Be organized under state or local laws and can provide proof
of such organization and be approved by the county;
2.
Have a functioning accounting system that is operated in accordance
with generally accepted accounting principles ("GAAP") or has designated
an entity that will maintain such an accounting system consistent
with GAAP;
3.
Have among its purposes significant activities related to providing
housing or services to persons or households of low- or moderate-income;
and
4.
Have no significant outstanding or unresolved monitoring findings
from the county, the MFA, or its most recent independent financial
audit, or if it has any such findings, it has a certified letter from
the county, the MFA, or auditor stating that the findings are in the
process of being resolved.
(3) Applications.
(a)
Process for applying.
Applicants wishing to apply
for a housing assistance grant or loan, including the use of any affordable
housing funds, or to participate in any affordable housing program,
are required to submit to the county the following (as applicable):
1.
One original application together with all required schedules,
documents, or such other information which may be required by the
county or in any RFP which may have been issued by the county;
2.
A proposal describing the nature and scope of the affordable
housing project proposed by the applicant and for which the applicant
is applying for funds or a grant under the act, and which documents
the need for the requested funds or grant, describes the type and/or
amount of assistance which the applicant proposes to provide to persons
of low- or moderate-income and documents the consistency of the proposal
with the county's affordable housing plan;
3.
Executive summary and project narrative(s) that address the
evaluation criteria set forth in any RFP issued by the county for
the affordable housing funds or the housing assistance grant for which
the applicant is applying;
4.
A proposed budget for the affordable housing project for which
the applicant is applying for affordable housing funds or for a housing
assistance grant;
5.
A copy of the most recent independent financial audit as required
by the county;
6.
A certification attesting that the affordable housing project
for which a housing assistance grant or loan is being requested will
be administered in accordance with title 42 chapter 45 of the United
States Code, commonly referred to as the Fair Housing Act.
7.
If the applicant is a nonprofit organization:
a.
Proof of 501(c)(3) tax status;
b.
Documentation that confirms that no part of its net earnings
inures to the benefit of any member, founder, contributor or individual;
8.
If an applicant is a legal entity, including a nonprofit organization:
a.
A current annual budget for the applicant, including all sources
and uses of funds not just those related to relevant programs and/or
a current annual budget only for the program for which the applicant
is applying for a housing assistance grant or loan, or as otherwise
may be required by the county and/or the MFA in its discretion;
b.
A pro forma for the proposed affordable housing project for
which a housing assistance grant or loan is being requested;
c.
An approved mission statement that the applicant has among its
purposes significant activities related to providing housing or housing
related services to persons or households of low- or moderate-income;
d.
A list of members of the applicant's current board of directors
or other governing body, including designated homeless participation,
where required by the county;
e.
Evidence (or a certification as may be allowed by the county)
that the applicant has a functioning accounting system that is operated
in accordance with GAAP or has a designated entity that will maintain
such an accounting system consistent with GAAP;
f.
Evidence that the applicant has no significant outstanding or
unresolved monitoring findings from the county, the MFA, or its most
recent independent financial audit; or if it has any significant outstanding
or unresolved monitoring findings from the county, the MFA or its
most recent independent financial audit, it has a certified letter
from the county, the MFA or the auditor stating that the findings
are in the process of being resolved;
g.
An organizational chart, including job titles and qualifications
for the applicant's employees or as otherwise may be required
by the county and/or the MFA in its discretion. Job descriptions may
be submitted as appropriate;
h.
Documentation that the applicant is duly organized under state
or local law and certification that the applicant is in good standing
with any state authorities, including the public regulation commission
and the Secretary of State;
9.
Information as may be required by the county in order for it
to determine the financial and management stability of the applicant;
10.
Information as may be required by the county in order for it
to determine the demonstrated commitment of the applicant to the community;
11.
A completed cost-benefit analysis of the affordable housing
project proposed by the applicant. Any cost-benefit analysis must
include documentation that clearly evidences that there is a need
for the housing assistance grant or loan being requested from the
county; that there is or will be a direct benefit from the project
proposed by the applicant to the community and/or to the purported
beneficiaries of the project, consistent with the provisions of the
act; and that the affordable housing project will meet the needs and
affordability criteria defined in the county's affordable housing
plan;
12.
Information supporting the benefits to the community of the
affordable housing project proposed by the applicant;
13.
Proof of substantive or matching funds or contributions and/or
in-kind donations to the proposed affordable housing project in connection
with the Application for funds under the act. Nothing contained herein
shall prevent or preclude an applicant from matching or using local,
private, or federal funds in connection with a specific housing assistance
grant or loan or a grant of affordable housing funds under the act;
14.
Any certifications or other proof which the county may require
in order for the county to confirm that the applicant is in compliance
with all applicable federal, state and local laws, rules and ordinances;
15.
A verification signed by the applicant before a notary public
that the information provided, upon penalty of perjury, is true and
correct to the best of the applicant's information, knowledge
and belief;
16.
Certifications as may be required by the county and signed by
the chief executive officer, board president, or another authorized
official of the applicant;
17.
Applicant shall submit adequate information, as required by
the county and/or the MFA, of the affordable housing project proposed
by the applicant. The information provided must clearly evidence the
need for the affordable housing grant or loan subsidy, that the value
of the housing assistance grant or loan reduces the housing costs
to persons of low- or moderate-income, and that there will be a direct
benefit from the project proposed by the applicant to the community
and/or to the purported beneficiaries of the project, consistent with
the provisions of the act and this chapter.
(b)
Additional requirements for multifamily housing projects; applicants
who are submitting applications in connection with a multifamily housing
program.
The applicant must also submit to the county
following additional information:
1.
A verified certificate that, among other things:
a.
Identifies every multifamily housing program, including every
assisted or insured project of HUD, RHS, FHA and any other state or
local government housing finance agency in which such applicant has
been or is a principal;
b.
States that, except as shown on such certificate:
A.
No mortgage on a project listed on such certificate has ever
been in default, assigned to the federal government or foreclosed,
nor has any mortgage relief by the mortgagee been given;
B.
There has not been a suspension or termination of payments under
any HUD assistance contract in which the applicant has had a legal
or beneficial interest;
C.
Such applicant has not been suspended, debarred or otherwise
restricted by any department or agency of the federal government or
any state government from doing business with such department or agency
because of misconduct or alleged misconduct; and
D.
The applicant has not defaulted on an obligation covered by
a surety or performance bond.
2.
If such applicant cannot certify to each of the above, such
applicant shall submit a signed statement to explain the facts and
circumstances that such applicant believes will explain the lack of
certification. The county may then determine if such applicant is
or is not qualified. The experience of the applicant in developing,
financing and managing multiple-family housing projects; and
3.
Whether the applicant has been found by the United States Equal
Employment Opportunity Commission or the New Mexico Human Rights Commission
to be in noncompliance with any applicable civil rights laws.
(c)
Requirements for individual applicants applying for direct
assistance.
Individuals may apply to the county or its
designee for a housing assistance grant or loan for home rehabilitation,
residential energy efficiency upgrades, down payment assistance, or
other affordable residential construction. At a minimum, these applicants
must provide:
1.
Verification of income for all adult household members over
the age of 18 to ensure the applicant's household qualifies as
low- to moderate-income, including but not limited to:
b.
Verification of employment signed by employer;
f.
Social Security Award Letters;
g.
Copies of child support award letters; and
h.
Copies of statements for all applicable investment accounts,
such as money market accounts, stock and bond accounts, and all retirement
accounts;
2.
Proof of residency, verifying that the applicant is the current
resident of the home for which a housing assistance grant or loan
is being requested (e.g. utility bills validating the applicant is
the current account holder for utility services being provided at
the home);
3.
For construction projects, the application must also include,
in addition to the documents listed in subsection (3)(c)1:
a.
Proof of ownership of the home, including relevant deeds or
other legal instruments verifying the applicant is the owner of the
property for which a housing assistance grant or loan is being requested;
b.
A statement indicating the home's deficiencies, which addresses
how the required capital upgrades are necessary ensure the home's
long-term livability or will mitigate substandard living conditions;
and
c.
Photographic evidence of any home system deficiencies.
A.
For construction projects, all system or structural deficiencies
of the home will be verified by the county or its designee, and scopes
of work for the project will be generated by the county or its designee.
4.
For down payment assistance, the Application must also provide,
in addition to the documents listed in subsection (3)(c)1:
a.
A purchase agreement for the home;
b.
The mortgage loan application (1003);
c.
A credit report issued within 30 days of submission;
d.
A financial statement listing all of the assets and liabilities
of the applicant;
e.
A true and correct certification, certifying the accuracy of
the information provided in the application, and further certifying
the home will be utilized as the applicant's primary residence;
f.
An appraisal of the home;
g.
A loan summary or first mortgage loan approval; and
h.
A first time homebuyers education course certification.
5.
Further guidance for individuals applying for housing assistance
grants or loans to rehabilitate or purchase affordable housing will
be provided in the county's related program's rules and
regulations.
(d)
Additional requirements for mortgage lenders.
If the applicant is a mortgage lender, the county shall consider,
among other things:
1.
The financial condition of the applicant;
2.
The terms and conditions of any loans to be made;
3.
The aggregate principal balances of any loans to be made to
each applicant compared with the aggregate principal balances of the
loans to be made to all other applicants;
4.
The county's assessment of the ability of the applicant
or its designated servicer to act as originator and servicer of mortgage
loans for any multifamily housing programs or other programs to be
financed; and
5.
Previous participation by the applicant in programs administered
by the MFA, HUD, Federal Housing Administration or Rural Housing Service.
(e)
Submission procedure.
1.
Time, place and method of submission delivery.
a.
If the county has issued an RFP, all Applications must be received
by the county no later than the deadline set forth in the RFP; otherwise,
all Applications must be received by the county by the deadline the
county has established in connection with the respective award, grant
or loan. So that any qualifying grantees may be selected prior to
January of the year in which any housing assistance grant would be
made, the county shall issue any RFP's, solicit any applications,
or otherwise identify any qualifying grantees no later than October
15 of any year in order to allow sufficient time for prospective applicants
to respond to any such RFP, solicitation, or otherwise, and further
to allow the MFA not less than forty-five (45) days in which to review
any such applications or otherwise determine or confirm that an applicant
is a qualifying grantee under the act and consistent with the rules.
b.
Applications shall be submitted by applicants to the county
in the form required by the county and shall contain all information
which is required by this chapter and any RFP which may have been
issued.
c.
For individual households applying for direct housing assistance
grants or loans for home rehabilitation or down payment assistance,
applications will be accepted at any time during the county fiscal
year dependent on the availability of funding.
2.
Additional factors.
a.
Timely completion and submission to the county of an application
or other appropriate response to any solicitation by the county;
b.
Timely submission of all other information and documentation
related to the program required by the county as set forth in this
chapter or as set forth in the rules;
c.
Timely payment of any fees required to be paid to the county
at the time of submission of the application; and
d.
Compliance with program eligibility requirements as set forth
in the act, the rules, this chapter, and program rules.
3.
Submission format.
a.
County forms must be used when provided and no substitutions
will be accepted; however, attachments may be provided as necessary.
b.
An applicant's failure to provide or complete any element
of an application, including all requirements of the county or as
may be listed on any RFP, may result in the rejection of the application
prior to review.
c.
Illegible information, information inconsistent with other information
provided in the application, or incomplete forms will be treated as
missing information and evaluated accordingly.
d.
The county and the MFA reserves the right to request further
information from any applicant so long as the request is done fairly
and does not provide any applicant an undue advantage over another
applicant.
e.
The county in its discretion may cancel any RFP or reject any
or all proposals in whole or part submitted by any applicant.
f.
The applicant shall be responsible for any expenses incurred
in preparing and submitting an application. The county, as applicable,
may establish and collect fees from applicants who file applications.
Notice that fees will be charged and the amount of any such fees shall
be included by the county, as applicable, in any RFP or otherwise
shall be advertised as part of the application solicitation process.
(f)
Review by the county.
On receipt of an application,
the county shall:
1.
Determine whether the application submitted by the applicant
is complete and responsive;
2.
Determine whether the applicant is a qualifying grantee as defined
herein and in the act;
3.
Review and analyze whether the applicant has shown a demonstrated
need for activities to promote and provide affordable housing and
related services to persons of low- or moderate-income and that the
proposal is consistent with the county's adopted affordable housing
plan;
4.
Determine whether the applicant has demonstrated experience
related to providing housing or services to persons of low- or moderate-income;
as well as experience and/or the capacity of the applicant to administer
the affordable housing program or project for which the applicant
has applied;
5.
Determine whether the applicant's proposal provides a plan
for coordinating with other service providers in the community; whether
the applicant's proposal addresses how persons of low-income
or moderate-income in need of housing and/or housing related services
can receive supportive services and referrals to federal, state and
local resources; and, whether the applicant's proposal addresses
outreach efforts to reach the population to be served as identified
by the county in any RFP, in the affordable housing plan or otherwise;
6.
Determine whether the applicant has support from public service
agencies, or such other support as may be required by the county and/or
the MFA in its discretion, for its proposed services in the community;
7.
Ascertain the amount of any matching funds or in-kind services
specific to the program that may be utilized by the applicant in connection
with the program;
8.
Ascertain whether any local, private, or federal funds will
be used by the applicant in connection with the specific grant or
loan for which the applicant is applying;
9.
Ascertain whether the applicant has and can demonstrate the
capability to manage the implementation of the program for which the
applicant is applying;
10.
If applicant is a prior recipient of either a housing assistance
grant or loan, affordable housing funds and/or other program funds,
confirm that the applicant had no outstanding findings or matters
of noncompliance with program requirements from the county or the
MFA, as applicable or if it has any such findings, it has a certified
letter from the county, the MFA, or auditor stating that the findings
are in the process of being resolved;
11.
If applicant is a prior recipient of either a housing assistance
grant or loan, affordable housing funds and/or other program funds,
confirm that the applicant reasonably committed and expended the funds
under the prior program and/or met anticipated production levels as
set forth in any contract with the county or the MFA, as applicable,
for those prior program funds;
12.
Evaluate the applicant's proposal in part based upon the
applicant's current financial audit;
13.
Evaluate the applicant's proposed budget for the project
for which the applicant is applying for affordable housing funds or
a housing assistance grant or loan which proposed budget must be approved
by the county before the applicant can be approved as a qualifying
grantee and any expenditure of grant funds under the act or granted
property is transferred to the applicant;
14.
On receipt of an application from a builder, the county will
analyze the builder's ability to construct and sell sufficient
residential housing units to persons of low- or moderate-income within
the time or times as may be required by the county.
15.
Consider other factors it deems appropriate to ensure a reasonable
geographic allocation for all affordable housing programs.
(g)
Certification by the county to the MFA.
The county
shall certify an application to the MFA in writing upon:
1.
Completion of its review of the application;
2.
Determination that the application is complete;
3.
Determination that the requirements of the act, the rules and
this chapter have been satisfied; and
4.
Determination that the applicant is a qualifying grantee.
(h)
Discretionary review by the MFA for completeness.
The MFA upon its receipt of the certification from the county may,
in its discretion, review the application and any of the materials
submitted by the applicant to the county. The MFA may also request
any additional information from the applicant, which it may require
in order to determine whether the applicant is a qualifying grantee
under the act and the application is complete. The MFA will then notify
the county of its determination of whether or not the application
is complete and that the requirements of the act and the rules have
been satisfied and the applicant is a qualifying grantee. Unless the
period is extended for good cause shown, the MFA shall act on an Application
within forty-five (45) days of its receipt of any application, which
the MFA deems to be complete, and, if not acted upon by MFA, the application
shall be deemed to be approved.
(i)
Notification of acceptance.
The county, upon completion
of its review of the application and an evaluation of the criteria
for approval of the application as set forth in this chapter and in
any RFP issued by the county and upon its determination that the applicant
is a qualifying grantee, and upon its receipt of notification from
the MFA that it agrees that the application is complete and that the
act and rules have been satisfied and the applicant is a qualifying
grantee, by written notice, or in the event of the application being
deemed approved by MFA pursuant to Subsection (3)(i), shall notify
each applicant which has submitted an application of the approval
or disapproval of its application. Upon approval of its application,
the applicant shall be considered approved to participate in the county's
affordable housing program. The county's and the MFA's determination
of any application shall be conclusive.
(4) Additional requirements for qualifying grantees.
Upon
acceptance, the following additional requirements shall apply to any
applicant who is a qualifying grantee:
(a)
Contractual requirements.
The qualifying grantee
shall enter into one or more contracts or agreements with the county,
which contract(s) shall be consistent with the act and subject to
the review of the MFA, in its discretion, and which contract(s) shall
include remedies and default provisions in the event of the unsatisfactory
performance by the qualifying grantee.
(b)
Security provisions; collateral requirements.
In accordance with the act, the rules and this chapter, the county
shall require the qualifying grantee to execute documents, which will
provide adequate security against the loss of public funds or property.
The documents containing these security provision may include, but
are not limited to: note, mortgage, loan agreement, land use restriction
agreement, restrictive covenant agreements and/or any other agreement.
These security provisions shall provide that in the event the qualifying
grantee abandons or fails to complete the affordable housing project,
the county may, as may be permitted by law, recover any attorneys'
fees and costs which the county may incur in enforcing the provisions
of this chapter or any agreement entered into by the county and the
qualifying grantee. These security provision shall also include that
the affordable housing funds received by the qualifying grantee be
adequately secured to allow the county and the MFA to ensure that
such funds shall be used by the qualifying grantee in accordance with
this chapter.
(c)
Performance schedule and criteria.
The qualifying
grantee shall be required to abide by a reasonable performance schedule
and performance criteria that the county, in its discretion, may establish.
(d)
Examination of books and records.
The qualifying
grantee shall submit to and the county shall cause to be made such
examinations of the books and records of each qualifying grantee as
the county and/or the MFA deems necessary or appropriate to determine
the qualifying grantee's compliance with the terms of the act,
the rules, this chapter and any contracts or agreements between the
qualifying grantee and the county. The county may require each qualifying
grantee to pay the costs of any such examination.
(e)
Additional information.
Qualifying grantees shall
provide the county with any and all information which the county may
reasonably require in order for it to confirm that the qualifying
grantees continue to satisfy the requirements of this chapter throughout
the term of any contract and/or any affordability period or otherwise
as may be required by the county or the MFA in its discretion. At
a minimum, on an annual basis, the county shall certify to the MFA
in writing that to the best of its knowledge the qualifying grantee
is in compliance with applicable provisions of the act, the rules
and this chapter.
(f)
Infrastructure cost reimbursement contracts.
1.
Cost reimbursements.
Payment to a qualifying grantee
under cost reimbursable contract provisions shall be made upon the
county's receipt from the qualifying grantee of certified and
documented invoices for actual expenditures allowable under the terms
of any agreement between the qualifying grantee and the county.
2.
Cost reimbursements for units of service.
Payment
under any unit cost contract provisions shall be made upon the county's
receipt from the qualifying grantee of a certified and documented
invoice showing the number of units of service provided during the
billing period.
3.
Rate at which costs incurred.
Under unit cost
or cost reimbursable contracts, it is anticipated that costs will
be incurred by the qualifying grantee at an approximate level rate
during the term of any agreement between the qualifying grantee and
the county. If the county determines that the qualifying grantee is
underspending or overspending, then the county may reduce the budget
and/or exercise such other budgetary fiscal controls it deems appropriate.
4.
Invoices.
Qualifying grantees shall not submit
invoices more than once a month, unless written approval is obtained
in advance from the county. Failure to submit invoices within twenty
(20) calendar days of the close of the month for which payment is
sought may result in the nonavailability of funds for reimbursement.
5.
No dual application of costs.
The qualifying grantee
shall certify that any direct or indirect costs claimed by the qualifying
grantee will not be allocable to or included as a cost of any other
program, project, contract, or activity operated by the qualifying
grantee and which has not been approved by the county in advance,
in writing.
6.
Prohibition of substitution of funds.
Any affordable
housing funds or other amounts received by the qualifying grantee
may not be used by the qualifying grantee to replace other amounts
made available or designated by the state or local governments through
appropriations for use for the purposes of the act.
7.
Cost allocation.
The qualifying grantee shall
clearly identify and distribute all costs incurred pertaining to the
affordable housing project by a methodology and cost allocation plan
at times and in a manner prescribed by, or acceptable to the county.
(5) Affordable housing requirements.
All affordable housing
funds or housing assistance grants or loans awarded under the act
are to be used by qualifying grantees for the benefit of persons of
low- or moderate-income subject to the provisions of the act and with
particular regard to their housing related needs.
(a)
Single-family property.
1.
Qualifying grantees shall agree that they shall maintain any
single-family property which has been acquired, rehabilitated, weatherized,
converted, leased, repaired, constructed, or which property has otherwise
benefited from affordable housing funds, including but not limited
to any loans which have been repaid with affordable housing funds
and which loans previously were secured by such properties, as affordable
housing for so long as any or all of the affordable housing funds
which have been awarded, loaned, or otherwise conveyed to the qualifying
grantee are unpaid and outstanding or the affordability period, whichever
is longer.
2.
If any single-family properties are to be rehabilitated, weatherized,
converted, leased, repaired, constructed or otherwise are to benefit
from affordable housing funds, and if the qualifying grantee intends
to rent the single-family property out, those single-family properties
shall be leased to persons of low- or moderate-income at the time
of any such award. Grantees also shall agree that the persons of low-
or moderate-income, who are tenants of those single-family rentals,
shall be allowed to remain tenants for so long as there are no uncured
defaults by those tenants under their respective leases - which must
be compliant with the New Mexico Uniform Owner-Resident Relations
Act (NMSA 1978 sections 47-8-1 through 47-8-52) - and provided that
there is no just cause (as outlined in section 47-8-33 NMSA 1978)
for the landlord to terminate any lease agreement with those tenants.
(b)
Multifamily property.
1.
Single apartment within a multifamily property.
Qualifying grantees shall agree that, if any single apartments are
to be rehabilitated, weatherized, converted, leased, repaired, constructed
or otherwise are to benefit from affordable housing funds, those apartments
shall be leased to persons of low- or moderate-income at the time
of any such award. Qualifying grantees, who are the landlords and/or
owners of such properties, shall further agree to contribute at least
sixty percent (60%) of the cost of the rehabilitation, weatherization,
conversion, lease, repair, and/or construction. Qualifying grantees
also shall agree that the persons of low- or moderate-income, who
are tenants of those apartments, shall be allowed to remain tenants
for so long as there are no uncured defaults by those tenants under
their respective leases - which must be compliant to the New Mexico
Uniform Owner-Resident Relations Act (NMSA 1978 sections 47-8-1 through
47-8-52) - and provided that there is no just cause (as outlined in
section 47-8-33 NMSA 1978) for the landlord to terminate any lease
agreement with those tenants.
2.
Multiple apartments.
Qualifying grantees shall
agree that, if multiple apartments or an entire multifamily property
are to be acquired, rehabilitated, weatherized, converted, leased,
repaired, constructed or otherwise are to benefit from affordable
housing funds, including but not limited to any loans which have been
repaid with affordable housing funds and which loans previously were
secured by such properties, they shall maintain not less than sixty
percent (60%) of the housing units as affordable housing for so long
as any or all of the affordable housing funds which have been awarded,
loaned, or otherwise conveyed to the qualifying grantee are unpaid
and outstanding or the affordability period, whichever is longer.
(c)
Nonresidential property.
Qualifying grantees shall
agree that they shall maintain any nonresidential property which has
been acquired, rehabilitated, weatherized, converted, leased, repaired,
constructed, or which property has otherwise benefitted from affordable
housing funds, including but not limited to any loans which have been
repaid with affordable housing funds and which loans previously were
secured by such properties, as a facility which provides housing related
services to persons of low- or moderate-income for so long as any
or all of the affordable housing funds which have been awarded, loaned,
or otherwise conveyed to the qualifying grantee are unpaid and outstanding
or the affordability period, whichever is longer.
(d)
Housing assistance grant or loan affordability requirements.
Qualifying grantees shall agree that they shall maintain any
land or buildings received as a housing assistance grant or loan as
either single-family or multifamily affordable housing in accordance
with sections 4.E.(i) and (ii) [Subsection (5)(a) and (5)(b)] of this
chapter or as a facility which provides housing related services to
persons of low- or moderate-income in accordance with section 4.E.(iii)
[Subsection (5)(c)] of this chapter (as applicable) for the duration
of the affordability period. Qualifying grantees shall agree that
they shall maintain any land or buildings for which they have received
the costs of infrastructure as a housing assistance grant either as
single-family or multifamily affordable housing or as a facility which
provides housing related services to persons of low- or moderate-income
(as applicable) for the duration of the affordability period. In calculating
the affordability period for housing assistance grants of either land
or buildings, the fair market value of the land or buildings or the
costs of infrastructure at the time of the donation by the county
shall apply.
(e)
Affordability period.
The county, in its discretion, may increase the affordability period in any contract, note, mortgage, loan agreement, land use restriction agreement, restrictive covenant agreements and/or any other agreement which the county may enter into with any qualifying grantee or beneficiary of the affordable housing funds or of the housing assistance grant. (See definition of affordability period in section
151.03 of this chapter.)
(6) Consent to jurisdiction.
Each qualifying grantee shall
consent to the jurisdiction of the courts of the state over any proceeding
to enforce compliance with the terms of the act, the rules, and this
chapter and any agreement between the qualifying grantee and the county
and/or the MFA.
(7) Recertification procedures.
(a)
The qualifying grantee must meet the requirements of the act,
the Rules, and this chapter both at the time of any award and throughout
the term of any grant and contract related thereto.
(b)
The county may establish procedural requirements for recertifying
qualifying grantees from time-to-time.
(c)
Qualifying grantees that fail to satisfy the requirements for
recertification shall cease to be eligible and shall be denied further
participation in affordable housing programs until those requirements
are satisfied.
(8) Compliance with the law.
Qualifying grantee shall provide
the county with any certifications or other proof that the county
may require in order for the county and/or the MFA to confirm that
the qualifying grantee and the qualifying grantee's proposed
project are in compliance with all applicable federal, state and local
laws, rules and ordinances. At a minimum, on an annual basis, the
qualifying grantee shall provide the county with certifications and
proof of compliance, and the county shall certify to the MFA in writing
that the qualifying grantee is still in compliance with the act, the
rules, and this chapter.
(9) Extension of affordable housing programs.
The county
shall have the power to create variations or extensions of affordable
housing programs, or additional programs that comply with the act
and the rules, pursuant to the MFA's approval.
(10)
County grant requirements.
(a)
The county is authorized to make Housing Assistance Grants or
Loans under the act. Upon determination that the county will make
a housing assistance grant or loan, including the use of any affordable
housing funds, the county shall provide the MFA with the following:
1.
Documentation that confirms that the county has an existing
valid affordable housing plan;
2.
Documentation that confirms that the county has an existing
valid affordable housing ordinance which provides for the authorization
of the housing assistance grant or loan, including the use of any
affordable housing funds;
3.
Written certification that the proposed grantee is in compliance
with act, rules and ordinance so that the MFA may confirm that the
application is complete, and that the proposed grantee is a qualifying
grantee under the act and the rules.
(b)
Prior to the submission of the application and project authorization
to the commission, the commission must approve the budget submitted
by the applicant.
(c)
An action authorizing the county to make a housing assistance
grant and/or distribute affordable housing funds:
1.
Must authorize the grant, including use of affordable housing
funds, if any;
2.
Must state the requirements and purpose of the grant;
3.
Must authorize the transfer or disbursement to the qualifying
grantee only after a budget is submitted to and approved by the commission;
4.
Must comply with the rules, as amended; and
5.
May provide for matching or using local, private or federal
funds either through direct participation with a federal agency pursuant
to federal law or through indirect participation through the MFA.
(d)
The MFA shall act to approve the proposed housing assistance
grant or loan authorized by the county within forty-five (45) days
of its receipt of the required documentation.
(e)
The county, in its discretion, may also hold any award of affordable
housing funds or any housing assistance grant or loan made by the
county in suspense pending the issuance by the county of any RFP or
pending the award of the affordable housing funds or of the housing
assistance grant or loan by the county to the qualifying grantee without
the issuance of an RFP by the county. Any award of affordable housing
funds or a housing assistance grant or loan by the county shall subject
the qualifying grantee of the award or grant to the oversight of the
county and the MFA under this chapter and the rules.
(11)
School district and public post-secondary educational institution
donations for housing projects.
(a)
If a school district or a public post-secondary education institution
intends to transfer land to the county to be further granted to a
qualifying grantee, in whole or in part, for an affordable housing
project, this transfer shall be subject to the limitations contained
in the act that the school district and the commission enter into
a contract that provides the school district with a negotiated number
of affordable housing units that will be reserved for employees of
the school district. Any transfer of land by a public post-secondary
educational institution shall be subject to the additional limitations
contained in the act that:
1.
The property transferred shall be granted to a qualifying grantee
by the county as part of a grant for an affordable housing project;
and
2.
The governing board of the public post-secondary educational
institution and the commission enter into a contract that provides
the public post-secondary educational institution with affordable
housing units.
(b)
As used in this section, "public post-secondary educational
institution" means a state university or a public community college.
The county, in its discretion, may also hold any housing assistance
grant made by any school district or public post-secondary educational
institution in suspense pending the issuance by the county of any
RFP or pending the award of the housing assistance grant or loan by
the county to the qualifying grantee without the issuance of an RFP
by the county. Any award of a housing assistance grant or loan by
a school district or a public post-secondary educational institution
shall subject the qualifying grantee of the grant or loan to the oversight
of the county and the MFA under the rules.
(Ordinance 2023-05 adopted 7/25/2023)
The development; construction, occupancy and operation of an
affordable housing program or an affordable housing project financed
or assisted under the act and this chapter shall be undertaken in
a manner consistent with principles of nondiscrimination and equal
opportunity, and the county shall require compliance by all qualifying
grantees with all applicable federal and state laws and regulations
relating to affirmative action, nondiscrimination and equal opportunity.
(Ordinance 2023-05 adopted 7/25/2023)
The county shall administer any affordable housing programs
in accordance with provisions of the act, the rules, this chapter,
any applicable state and federal laws and regulations as each of which
may be amended or supplemented from time-to-time. The county, in establishing,
funding and administering the affordable housing programs and by making,
executing, delivering and performing any award, contract, grant or
any other activity or transaction contemplated by the act, shall not
violate any provision of law, rule or regulation or any decree, writ,
order, injunction, judgment, determination or award and will not contravene
the provisions of or otherwise cause a default under any of its agreements,
indentures, or other instruments to which it may be bound. Any proposed
amendment to this chapter shall be submitted to MFA for review prior
to adoption by the commission.
(Ordinance 2023-05 adopted 7/25/2023)
The commission may repeal this chapter and terminate the county's
affordable housing program and any or all contracts undertaken in
its authority. Termination shall be by ordinance at a public hearing
or in accordance with the terms of the contract. If an ordinance or
a contract is repealed or terminated, all contract provisions of the
contract regarding termination shall be satisfied.
(Ordinance 2023-05 adopted 7/25/2023)