Lt. Gov. Denish Pushes Tougher Regional Housing Reform

On Friday, Lt. Governor Diane D. Denish announced the introduction of SB 20 Regional Housing Reform, legislation that would strengthen SB 519, which was passed in 2007. Denish's announcement came a day after news broke that a state grand jury is investigating the operations of an Albuquerque-based regional housing authority that defaulted on payments for $5 million in bonds it sold to New Mexico.

In a statement, Denish explained that the 2007 bill, also championed by her and Senator Mary Kay Papen, increased oversight and led to audits of the regional housing authorities ending corrupt practices at Region III and VII. The proposed legislation would replace the defunct seven region structure with a more streamlined system that would target high-need areas, including previously underserved rural communities. It would also expand oversight to protect taxpayer dollars.

Lt. Governor Denish said in a statement, "I will do everything in my power to protect New Mexicans and to be sure we meet affordable housing demands where they are greatest, especially in rural areas where resources are thin. The goals are to build wealth for low- to moderate-income families and to stimulate rural economies while protecting taxpayer money. The new bill would diversify services, broaden the reach of programs through state oversight, and create assurances for taxpayers."

Specifically, the bill would do the following:

• Require that potential board members and executive directors be reviewed and recommended for approval by Mortgage Finance Authority (MFA).
• Require that each county within the Regional configuration have no more than one representative on the Regional Board.
• Require regional centers to cooperate with local housing authorities to shift more resources to rural and high-need areas without duplicating efforts.
• Expand the type and level of housing related programs that regional centers can provide like affordable housing, weatherization, homeownership counseling, and multi-family and single family developments.
• Designate an oversight agency to oversee all regional operations.
• Strengthen the conflict of interest language in the proposed amendments.
• Permanently eliminate the ability to issue bonds.
• Establish financial oversight and requirements for the submission and review of budgets and audits.
• Requires that any transaction over $100K must be reviewed and approved by MFA.
• Requiring regional centers to provide an annual operations and financial report for review and dissemination to the Department of Finance and Administration, Legislative Finance Committee, and the MFA Legislative Oversight Committee.

"Through the proposed legislation and a small investment by the state, with the proper oversight, regional housing centers can enhance and expand the rehabilitation and development of new housing stock and provide additional housing related programs and services to communities all over New Mexico. There continues to exist, a serious need for housing related programs throughout rural New Mexico," said Senator Mary Kay Papen.

Regional housing reform is only one of the Lt. Governor's initiatives to protect New Mexicans. In August, she announced her plan to champion legislation, in partnership with Attorney General Gary King, to crack-down on predatory lenders.

For more information on SB 20 Regional Housing Reform, contact Senator Mary Kay Papen via e-mail at marykaypapen@comcast.com or via cell phone at (575) 649-7853.