HOUSE BILL 139
56th legislature - STATE OF NEW MEXICO - second session, 2024
INTRODUCED BY
Kathleen Cates
AN ACT
RELATING TO FINANCE; ENACTING THE PROFESSIONAL RECRUITMENT AND RETENTION HOUSING LOAN FOR SERVICE ACT; PROVIDING FOR PROGRAM ADMINISTRATION BY THE NEW MEXICO MORTGAGE FINANCE AUTHORITY; PROVIDING LOANS FOR SERVICE TO PROFESSIONALS FOR EXPENSES RELATED TO THE PURCHASE OF A HOME; CONDITIONING LOANS ON PRACTICE IN NEW MEXICO; PROVIDING TERMS FOR REPAYMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Professional Recruitment and Retention Housing Loan for Service Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Professional Recruitment and Retention Housing Loan for Service Act:
A. "authority" means the New Mexico mortgage finance authority;
B. "loan" means a contract to finance the purchase of a home between an agent of the authority and a professional;
C. "professional" means a person who holds a New Mexico license or certification in a health-related profession; and
D. "program" means the professional recruitment and retention housing loan for service program.
SECTION 3. [NEW MATERIAL] PROFESSIONAL RECRUITMENT AND RETENTION HOUSING LOAN FOR SERVICE PROGRAM CREATED--LOAN APPLICANT ELIGIBILITY--QUALIFICATIONS.--
A. The "professional recruitment and retention housing loan for service program" is created within the authority.
B. The authority shall create an account for any money designated for the program. Loans for the program shall be provided from the account, and the account may consist of subaccounts as the authority deems necessary.
C. Pursuant to the program, the authority may grant a loan to a professional to assist in the purchase of a home in New Mexico in exchange for the professional practicing in the state for ten years at no less than three-fourths of full-time employment.
D. Applications shall be submitted to the authority on forms provided by the authority and shall include:
(1) proof of licensure or certification in New Mexico provided to the authority by the licensing body of the professional;
(2) a written declaration of intent to practice in New Mexico as a professional for ten years at no less than three-fourths of full-time employment as certified to the authority;
(3) a copy of the mortgage application for the purchase of a home in New Mexico; and
(4) any other documentation required by the authority.
SECTION 4. [NEW MATERIAL] PROGRAM REQUIREMENTS.--
A. The authority shall administer the program pursuant to the following requirements:
(1) applicants to the program shall be licensed or certified to practice in New Mexico as a professional and shall declare a written intent to practice as a professional in this state;
(2) a loan shall be granted only one time in the course of ten years;
(3) a loan shall not exceed ten percent of the total home purchase price limit as determined by the authority; and
(4) if granted, the loan shall be a lien on the property financed by the loan. After the applicant has completed the required ten years at no less than three-fourths of full-time employment in the state, and upon completion of the requirements as verified by the authority, including certification from the licensing body of the professional verifying that the professional has maintained a license for ten years, the loan shall be forgiven.
B. The authority may grant a loan to an applicant who meets the requirements of the Professional Recruitment and Retention Housing Loan for Service Act and the rules promulgated in accordance with that act.
SECTION 5. [NEW MATERIAL] CONTRACT TERMS--REPAYMENT.--
A. A loan provided pursuant to the Professional Recruitment and Retention Housing Loan for Service Act is a written contract between the professional and an agent of the authority acting on behalf of the authority. The contract shall state the loan and the obligations of the professional under the program as provided in that act and the rules promulgated in accordance with that act.
B. A loan provided pursuant to the Professional Recruitment and Retention Housing Loan for Service Act shall bear an annual interest rate equal to the current federal home loan mortgage corporation mortgage rate on the date the loan is made.
C. A professional who is provided a loan pursuant to the Professional Recruitment and Retention Housing Loan for Service Act and who does not fulfill the obligations of the contract shall repay the loan with interest with proceeds from the sale of the property that was purchased using the loan.
D. The authority shall adopt rules to implement the provisions of this section.
SECTION 6. [NEW MATERIAL] CONTRACTS--ENFORCEMENT.--The general form of the contract required shall be prepared and approved by the attorney general and the department of finance and administration and signed by the professional and by an agent of the authority on behalf of the authority. The authority is vested with full and complete authority and the power to sue in its own name for any balance due from a professional on the contract.
SECTION 7. [NEW MATERIAL] CANCELLATION.--The authority may cancel a contract entered into with a professional for any reasonable cause deemed sufficient by the authority, including the loss of a professional license or certification and a failure to provide professional services for ten years at no less than three-fourths of full-time employment in this state.
SECTION 8. [NEW MATERIAL] REPORTS.--The authority shall make an annual report to the governor and the legislature, prior to each regular session, of its activities, including the number of loans granted pursuant to the Professional Recruitment and Retention Housing Loan for Service Act.
SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.
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