The bill establishes the "Zero Interest Down Payment Loan Fund" aimed at assisting first-time home buyers in New Mexico. It amends existing laws to redirect certain distributions previously allocated to the Early Childhood Education and Care Fund, the Behavioral Health Trust Fund, and the Medicaid Trust Fund, now directing these funds to the new loan program. Specifically, the bill modifies the distribution of excess oil and gas emergency school tax revenue and federal Mineral Leasing Act receipts to support the Zero Interest Down Payment Loan Fund, ensuring that any excess amounts are allocated to this fund instead of the previously mentioned programs.

Additionally, the bill outlines the creation and administration of the Zero Interest Down Payment Loan Fund, which will provide zero-interest loans covering up to 20% of the purchase price for eligible first-time home buyers. The loans will be secured by a lien on the property and must be repaid if the property is sold within thirty years. The bill also defines "eligible home buyer" as individuals or households earning less than four hundred percent of the federal poverty level. The provisions of this act are set to take effect on July 1, 2026.

Statutes affected:
introduced version: 6-4-27, 9-29A-3