Legislative Finance Committee Presentation by the New Mexico Mortgage Finance Authority (MFA) November 14, 2017 Jay Czar, Executive Director, MFA Gina Hickman, Deputy Director of Finance and Administration, MFA Isidoro Hernandez, Deputy Director of Programs, MFA Monica Abeita, Director of Policy and Planning, MFA
MFA Board and Legislative Oversight MFA A Act Act Leg Legislative Oversight Com Committee MFA A Boa oard of of Dir Directors Representative Eliseo Lee Alcon, Chair (D) Dennis R. Burt, Chair Senator Nancy Rodriguez, Vice Chair (D) Senator Gregory A. Baca (R) Founder, Burt & Company CPAs Representative Kelly K. Fajardo (R) Senator Stuart Ingle (R) Angel Reyes, Vice Chairman Senator Cisco McSorley (D) President, Centinel Bank of Taos Representative Rod Montoya (R) Representative Sheryl Williams Stapleton (D) John A. Sanchez Lieutenant Governor Advisory Mem Ad Members: Representative Alonzo Baldonado (R) Hector Balderas Representative Bealquin Bill Gomez (D) Attorney General Representative George Dodge Jr. (D) Representative Roberto J. Gonzales (D) Tim Eichenberg Senator Richard C. Martinez (D) State Treasurer Representative Bill McCamley (D) Senator Gerald Ortiz y Pino (D) Randy McMillan Senator Michael Padilla (D) President, NAI First Valley Realty, Inc. Representative Dennis J. Roch (R) Senator Sander Rue (R) Steven J. Smith, Treasurer Senator Jeff Steinborn (D) President, R.OG. Enterprises Representative Nathan P. Small (D) 2
About MFA • We were created by the State Legislature in OUR R VI VISI SION 1975. The MFA Act defines MFA as a “ public body corporate, separate and apart from the state.” MFA is not a state agency All New Mexicans will have quality and receives no operating funds from the state. affordable housing opportunities. • MFA became the state government’s designated housing agency in 1997. All of New Mexico’s state and federal housing OUR R MISSI SSION programs are now administered by MFA. • MFA is a Housing Finance Agency (HFA). MFA is New Mexico’s leader in affordable Each state in the U.S. has one or more. housing. We provide innovative products, education and services to strengthen families • MFA provides financing for af affordable le and communities. ho housing for pe persons of f low ow and nd mod moderate inc ncom ome. 3
Household What is affordable 6.8% Income in 16.4% 10.7% New Mexico housing? Less than $15,000 11.3% 12.8% $15,000 to $24,999 $25,000 to $34,999 Affordable housing is a function of income and housing costs. $35,000 to $49,999 The standard for affordability used by the US Department of 11.2% $50,000 to $74,999 16.9% Housing and Urban Development (HUD) is that housing costs $75,000 to 99,999 are affordable if they do not exceed 30 percent of income. 14.1% $100,000 to $149,999 This standard is highly dependent on income level. For $150,000 or more example, if a household is wealthy, choosing to spend more than 30 of income on housing costs would not be burdensome. However, lower income households, some of AFFORDABLE HOUSING COSTS which earn below $15,000 per year, are hard pressed to even BASED ON 30% OF HOUSEHOLD INCOME find housing priced at 30 or even 50 percent of their income. For these households, the 30 percent standard is an important Maximum guideline for establishing what should be spent on housing so Annual Monthly Monthly that other essential needs, like food and health care, can also HH Income HH Income be met. An illustration of what affordable housing looks like in Housing Cost New Mexico for different income ranges is at right. More than 16 percent of households earn less than $15,000 per year and $15,000 $1,250 $375 fall into HUD’s extremely low income limit of $15,250. An additional 13 percent earn less than $25,000 per year and fall $25,000 $2,083 $625 into HUD’s very low income limit of $25,400. And roughly another 16 percent fall below HUD’s low income limit of $35,000 $2,917 $875 $40,600. In total, 45 percent of New Mexico households are low-income and qualify for various HUD programs. Income $50,000 $4,167 $1,250 limits correspond to families of three, because New Mexico’s median household and family size is 2.4 and 2.6, respectively. $75,000 $6,250 $1,875 Source: American Community Survey 5-year estimates 4 for 2011-2015 $100,000 $8,333 $2,500
RIO ARRIBA TAOS COLFAX SAN JUAN UNION -0.7 Urban and Rural 0.7% -5.6% -2.4% - 2.1% LOS ALAMOS MORA HARDING -0. 0.6% - 4.5% - 16.0% Trends MCKINLEY SANTA SANDOVAL 3.8% SAN MIGUEL FE 6.5% -2.2% 2. 2.8% BERNALILLO QUAY CIBOLA 2.8% GUADALUPE - 3.4% 0.2% New Mexico is the fifth largest state in the U.S. with a -3.4% TORRANCE VALENCIA CURRY relatively small population of just over two million. Two- -3.3% 0.9% 6.4% DE BACA thirds of the state’s population is located in four 0.0% CATRON SOCORRO Metropolitan Statistical Areas (MSAs), with 43 percent ROOSEVELT -2.8% -2.4% 1.5% LINCOLN within the Albuquerque MSA (Bernalillo, Sandoval, - 2.7% CHAVES Valencia and Torrance counties). One- third of the state’s 1.3% SIERRA population lies outside of the MSAs, in largely rural - 2.6% areas. GRANT LEA -1.9% 7.0% OTERO EDDY 2.9% DONA As shown in the map at right which depicts variable 4.5% ANA LUNA 4.0% growth rates by counties, disparities exist between New - 1.8% Mexico’s urban and rural areas. Generally speaking, HIDALGO urban communities offer more employment -6.3% Growth rates for NM counties opportunities, are younger and growing and have low housing vacancy rates. Most rural counties are aging and Counties within MSAs with population center/s URBAN with more than 50,000 people losing population while grappling with older housing stock and higher vacancies. This is not surprising given a Counties with population center/s between SEMI-URBAN national and global trend toward urbanization and the 20,000 and 50,000 people relative lack of economic opportunity in rural areas. Counties with population center/s between RURAL 10,000 and 20,000 people Counties with well-located population center/s SMALL RURAL between 3,000 and 10,000 people Source for growth rates: American Community Survey 5-year estimates for 2011-2015 and 2007-2011 Counties with isolated population center/s with Note: 5 year estimates were used to allow comparison among all counties EXETREMELY RURAL less than 3,000 people 5
Delivery System MFA allocates resources and works with partners to serve all New Mexicans. MFA FUNDERS CONSTITUENTS MFA allocates resources to more MFA receives affordable New Mexico residents PARTNERS than 20 different have access to housing resources from MFA contracts with and affordable housing and affordable housing the federal government monitors service providers related services and programs. and the state. We also resources statewide. throughout New Mexico. use bonding capacity, We also work with investments and our own lenders, realtors, revenue to support developers, property affordable housing owners and tribal and programs. local governments. 6
Our Programs MFA operates more than 20 programs that assist low and moderate income households, from people experiencing homelessness to homeowners. First-Time Homeless Special Needs Renter Homeowner Homebuyer Down Payment Assistance Development Financing Emergency Shelter Subsidized Rental Low-Interest Mortgages Transitional Shelter Rehabilitation Rental Assistance Weatherization Homeless Prevention 7
Number of People Experiencing Homelessness Point in Time Count, 2017: 2,495 statewide, 1,318 in Bernalillo County 1400 250 1,318 207 1200 197 193 200 Transitional Housing 1000 145 139 150 800 Emergency 600 Shelter 90 100 71 400 45 Unsheltered 50 200 21 11 5 18 5 8 9 10 3 0 0 Bernalillo Chaves Cibola Dona Ana Eddy Grant Lea Luna McKinley Otero Rio Arriba San Juan San Miguel Sandoval Santa Fe Socorro Taos Valencia 8
Estimated Need for Supportive Housing 5,213 beds/units needed statewide, 1,692 in Bernalillo County RIO ARRIBA TAOS COLFAX SAN JUAN UNION 99 82 31 297 11 LOS ALAMOS HIGH 44 MORA 11 HARDING NEED MCKINLEY 2 SANTA SANDOVAL 192 FE SAN MIGUEL 348 MODERATE 70 372 NEED BERNALILLO QUAY CIBOLA 1,692 GUADALUPE 21 LOW 68 11 VALENCIA TORRANCE NEED CURRY 189 39 126 DE BACA 5 CATRON SOCORRO ROOSEVELT 9 43 48 LINCOLN 49 CHAVES 164 SIERRA 28 GRANT LEA 72 178 OTERO EDDY 161 DONA 144 ANA LUNA 536 61 HIDALGO 11 Source: New Mexico Coalition to End Homelessness 9
MFA Record-Breaking Loan Activity Loan Reservations vs Loan Purchases: FY 2008 through FY 2017 (*projected) 3,500 3,000 2,500 Reserved 2,000 Purchased 1,500 1,000 500 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* Source: MFA 10
Recommend
More recommend
