The bill appropriates five hundred million dollars ($500,000,000) 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 any other fund, ensuring that the allocated resources remain available for affordable housing initiatives.

Additionally, the bill stipulates that ten percent of the appropriated funds will be allocated to municipalities and counties for affordable housing projects, contingent upon certain conditions. These include the requirement for municipalities or counties to provide matching funds at a ratio of no less than three to one, the adoption of affordable housing plans and ordinances, and adherence to the rules of 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.