The proposed bill amends the Affordable Housing Act to establish a new "Creditworthiness Assistance Program" aimed at providing financial support to individuals facing challenges with unpaid rent and property damages. It introduces the concept of "creditworthiness assistance grants," which can be utilized by participants for up to $5,000 in unpaid rent and $2,500 for damages caused to rented properties. The bill outlines eligibility criteria for both individual and non-individual qualifying grantees, emphasizing the need for a functioning accounting system and significant activities related to renting residential housing. Additionally, it creates the "Creditworthiness Assistance Fund," which will be administered by the New Mexico mortgage finance authority and will consist of various financial contributions.

Furthermore, the bill modifies existing provisions to allow state and local entities to provide assistance for unpaid rent and property damages, thereby expanding the scope of support available under the Affordable Housing Act. It mandates that counties and municipalities enact ordinances to authorize these grants and requires the authority to establish rules for the application process and eligibility criteria. The bill also includes an appropriation of $250,000 from the general fund to support the administration of the new program, ensuring that funds remain available for ongoing assistance efforts.

Statutes affected:
introduced version: 6-27-3, 6-27-5, 6-27-7, 6-27-8