The proposed bill establishes the "New Homes for New Mexico Program," which aims to provide financial assistance to eligible home buyers seeking to purchase starter homes from qualified builders. The program will be administered by the New Mexico Mortgage Finance Authority, which will create an account to manage funds designated for the program. Eligible buyers must meet specific criteria, including not having previously owned a home, earning an income below 120% of the area median income, and using the purchased home as their primary residence. The program will offer loans of up to $50,000 for homes outside high-cost counties and $75,000 for homes within those counties, with a zero percent interest rate.

Additionally, the bill outlines the responsibilities of eligible builders, including restrictions on the size of the homes and lots, as well as timelines for construction completion. The authority will also establish rules for program administration, application criteria, and verification processes to ensure compliance with the program's requirements. The loans must be repaid upon the sale of the property or if the buyer fails to occupy the home as their primary residence. Overall, the bill aims to enhance access to affordable housing in New Mexico by facilitating home ownership for low- to moderate-income families.