HOUSE BILL 195

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Linda Serrato and Meredith A. Dixon and Joy Garratt

and Michael Padilla

 

 

 

 

AN ACT

RELATING TO FINANCE; AMENDING AND ENACTING SECTIONS OF THE OPPORTUNITY ENTERPRISE ACT AND CHANGING THE NAME OF THE ACT; ALLOWING THE NEW MEXICO FINANCE AUTHORITY TO PROVIDE HOUSING DEVELOPMENT LOANS; CREATING THE HOUSING DEVELOPMENT REVOLVING FUND; DEFINING TERMS; AMENDING THE STRUCTURE OF THE OPPORTUNITY ENTERPRISE REVIEW BOARD AND CHANGING ITS NAME; PROVIDING DUTIES; REQUIRING RULEMAKING; AMENDING REQUIREMENTS FOR OPPORTUNITY ENTERPRISE LOANS; REQUIRING REPORTING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 6-34-1 NMSA 1978 (being Laws 2022, Chapter 57, Section 1) is amended to read:

     "6-34-1. SHORT TITLE.--[This act] Chapter 6, Article 34 NMSA 1978 may be cited as the "Opportunity Enterprise and Housing Development Act"."

     SECTION 2. Section 6-34-2 NMSA 1978 (being Laws 2022, Chapter 57, Section 2) is amended to read:

     "6-34-2. DEFINITIONS.--As used in the Opportunity Enterprise and Housing Development Act:

          A. "affordable housing infrastructure project" means infrastructure projects needed to support housing for low- or moderate-income residents;

          [A.] B. "authority" means the New Mexico finance authority;

          [B.] C. "board" means the opportunity enterprise and housing development review board;

          [C.] D. "department" means the economic development department;

          [D.] E. "economic development opportunities" means the advancement of an environmentally sustainable economic development goal of the state as determined by the authority, in coordination with the department, and includes the creation of jobs, the provision of needed services and commodities to diverse communities across the state and the increase of tax and other revenue collections resulting from the enterprise development project;

          [E.] F. "enterprise assistance" means opportunity enterprise financing, an opportunity enterprise lease or an opportunity enterprise loan;

          [F.] G. "enterprise development project" means a commercial real estate development project primarily occupied by businesses unrelated to the opportunity enterprise partner that involves the purchase, planning, designing, building, surveying, improving, operating, furnishing, equipping or maintaining of land, buildings or infrastructure to create or expand economic development opportunities within the state;

          [G. "fund" means the opportunity enterprise revolving fund;]

          H. "housing development assistance" means a loan for workforce development housing projects or affordable housing infrastructure projects;

          I. "housing development partner" means a domestic corporation, a general partnership, a limited liability company, a limited partnership, a public benefit corporation, a nonprofit entity or any other private business entity or combination thereof that the authority determines is or will be engaged in a project that creates or expands housing within the state and is eligible for housing development assistance pursuant to the Opportunity Enterprise and Housing Development Act;

          J. "housing development project" means an affordable housing infrastructure project or a workforce

development housing project;

          [H.] K. "opportunity enterprise partner" means a domestic corporation, a general partnership, a limited liability company, a limited partnership, a public benefit corporation, a nonprofit entity or other private business entity or combination thereof that the authority determines is or will be engaged in an enterprise that creates or expands economic development opportunities within the state and is eligible for enterprise assistance pursuant to the Opportunity Enterprise and Housing Development Act;

          [I.] L. "opt-in agreement" means an agreement entered into among the authority, the department and a county, municipality or school district that ensures compliance with all local zoning, permitting and other land use rules and that provides for payments in lieu of taxes to the county, municipality or school district; [and]

          [J.] M. "payment in lieu of taxes" means the total annual payment paid as compensation for the tax impact of an enterprise development project, in an amount negotiated and determined in the opt-in agreement among the authority, the department and the county, school district or, if applicable, municipality where the enterprise development project is located in the same proportional amount as property tax revenues are normally distributed to those recipients;

          N. "workforce development housing" means below-market housing addressing demand for workforce housing for middle-income workers in proximity to employment centers; and

          O. "workforce development housing project" means a residential real estate development project that involves the purchase, planning, designing, building, surveying, improving, operating, furnishing, equipping or maintaining of land, buildings or infrastructure that provides housing, including housing that provides the option of home ownership."

     SECTION 3. Section 6-34-3 NMSA 1978 (being Laws 2022, Chapter 57, Section 3) is amended to read:

     "6-34-3. NEW MEXICO FINANCE AUTHORITY--POWERS--DUTIES.-- To create or expand economic development opportunities and housing within the state, the authority may:

          A. acquire, whether by construction, purchase, gift or lease, and hold title to or other interest in an enterprise development project or housing development project;

          B. provide opportunity enterprise financing to opportunity enterprise partners and collect costs and fees associated with that financing;

          C. enter into a contract to lease property to an opportunity enterprise partner and collect rent, costs and fees associated with that lease;

          D. make loans to opportunity enterprise partners and collect payments, including principal, interest costs and fees associated with that loan;

          E. make loans to housing development partners and collect payments, including principal, interest costs and fees associated with those loans;

          [E.] F. sell or otherwise dispose of any property obtained as a result of an enterprise development project or a housing development project; provided that proceeds received shall be deposited in the opportunity enterprise revolving fund or the housing development revolving fund, respectively;

          [F.] G. make, execute and enforce all contracts necessary to carry out the provisions of the Opportunity Enterprise and Housing Development Act;

          [G.] H. take legal action available to the authority to recover public money or other public resources if an opportunity enterprise partner or housing development partner defaults on its obligations to the authority;

          [H.] I. enter into joint powers agreements or other agreements with a state agency or governmental entity, as the authority determines to be appropriate for such purpose;

          [I.] J. adopt rules relating to the use of the opportunity enterprise revolving fund and the housing development revolving fund necessary to carry out the provisions of the Opportunity Enterprise and Housing Development Act subject to approval of the New Mexico finance authority oversight committee; and

          [J.] K. enter into opt-in agreements where the enterprise development project is located to facilitate the development of an enterprise development project; provided that if included in the opt-in agreement, the authority shall make payments in lieu of taxes to a county, municipality or school district to offset the tax impact of an enterprise development project."

     SECTION 4. Section 6-34-5 NMSA 1978 (being Laws 2022, Chapter 57, Section 5) is amended to read:

     "6-34-5. OPPORTUNITY ENTERPRISE AND HOUSING DEVELOPMENT REVIEW BOARD--CREATED--MEMBERSHIP.--

          A. The "opportunity enterprise and housing development review board" is created. The authority shall provide necessary administrative services to the board.

          B. The board is composed of the following [twelve] fourteen members:

                (1) the secretary of economic development or the secretary's designee;

                (2) the secretary of finance and administration or the secretary's designee;

                (3) the secretary of general services or the secretary's designee;

                (4) the state treasurer or the state treasurer's designee;

                (5) the [state auditor or the state auditor's] executive director of the New Mexico mortgage finance authority or the executive director's designee; 

                (6) two members appointed by the governor who shall have experience in the housing, building or development sector;

                [(6)] (7) one representative appointed by the council of government organizations within the state; and

                [(7)] (8) six public members appointed by the New Mexico legislative council who shall have experience in any one or more of the following:

                     (a) the banking and finance industry;

                     (b) commercial or industrial credit;

                     (c) private equity, venture capital or mutual fund investments;

                     (d) commercial real estate development;

                     (e) engineering, construction and construction management;

                     (f) organized labor;

                     (g) urban planning; or

                     (h) environmentally sustainable construction and development.

          C. Members of the board appointed pursuant to Paragraphs [(6) and] (7) and (8) of Subsection B of this section shall serve for staggered terms of six years; provided that the initial term of members appointed pursuant to Paragraph [(7)] (8) of Subsection B of this section may be for a term of less than six years, as determined by the New Mexico legislative council, to ensure staggered membership of the board. Members of the board shall serve until their successors are appointed. A member of the board appointed pursuant to Paragraph (6), [or] (7) or (8) of Subsection B of this section may be removed from the board by the appointing authority for failure to attend three consecutive meetings or other cause. A vacancy on the board of an appointed member shall be filled by appointment by the original appointing authority for the remainder of the unexpired term of office; provided that a member who is removed pursuant to this section shall be ineligible for reappointment.

          D. Members of the board appointed pursuant to Paragraphs (6) [and (7)] through (8) of Subsection B of this section shall:

                (1) be governed by the provisions of the Governmental Conduct Act; and

                (2) not hold any office or employment in a political party.

          E. The members shall select a chair, vice chair and other officers that the board deems necessary, who shall serve a term of two years. The board shall maintain minutes of all meetings of the board, and all meetings shall be held pursuant to the Open Meetings Act."

     SECTION 5. Section 6-34-6 NMSA 1978 (being Laws 2022, Chapter 57, Section 6) is amended to read:

     "6-34-6. OPPORTUNITY ENTERPRISE AND HOUSING DEVELOPMENT REVIEW BOARD--POWERS.--

          A. The board shall:

                (1) meet quarterly and at the call of the chair;

                (2) receive a list of