The bill appropriates $500 million from the general fund to the New Mexico Housing Trust Fund for the fiscal year 2026 and subsequent years. This funding is designated for the New Mexico mortgage finance authority to support the objectives outlined in the New Mexico Housing Trust Fund Act. Notably, any unexpended or unencumbered balance at the end of a fiscal year will not revert to other funds, ensuring that the allocated resources remain available for affordable housing initiatives.

Additionally, the bill stipulates that 10% of the appropriated funds will be allocated to municipalities and counties for affordable housing projects, which may include new construction or rehabilitation of existing units. To qualify for this funding, municipalities or counties must provide matching funds of at least three times the amount requested, adopt relevant affordable housing plans, and adhere to the rules set forth in the New Mexico Housing Trust Fund Act. The New Mexico mortgage finance authority is tasked with prioritizing projects in areas with expedited zoning processes, and any remaining funds after project completion must be returned to the authority for reinvestment in the housing trust fund.