Section 6-27-8 - Provisions to ensure successful completion of affordable housing projects; investigation. - New Mexico Statutes

6-27-8. Provisions to ensure successful completion of affordable housing projects; investigation.

A.     State, county and municipal housing assistance grants pursuant to the Affordable Housing Act shall be applied for and awarded to qualifying grantees pursuant to the rules promulgated by the authority subject to the requirements of that act.  

B.     The authority shall adopt rules covering: 

(1)     procedures to ensure that qualifying grantees meet the requirements of the Affordable Housing Act and rules promulgated pursuant to that act both at the time of the award and through the term of the grant; 

(2)     establishment of an application and award timetable for housing assistance grants to permit the selection of the potential qualifying grantees prior to January of the year in which the grants would be made;  

(3)     contents of the application, including an independent evaluation of the: 

(a)     financial and management stability of the applicant; 

(b)     demonstrated commitment of the applicant to the community; 

(c)     cost-benefit analysis of the project proposed by the applicant; 

(d)     benefits to the community of a proposed project; 

(e)     type or amount of assistance to be provided; 

(f)     scope of the affordable housing project; 

(g)     substantive or matching contribution by the applicant to the proposed project; and 

(h)     performance schedule for the qualifying grantee with performance criteria; 

(4)     a requirement for long-term affordability of a state, county or municipal project so that a project cannot be sold shortly after completion and taken out of the affordable housing market to ensure a quick profit for the qualifying grantee; 

(5)     a requirement that a grant for a state or local project must impose a contractual obligation on the qualifying grantee that the housing units in a state or local  project pursuant to the Affordable Housing Act be occupied by low- or moderate-income households; 

(6)     provisions for adequate security against the loss of public funds or property in the event that a qualifying grantee abandons or otherwise fails to complete a project; 

(7)     a requirement for review and approval of a housing grant project budget by the grantor before any expenditure of grant funds or transfer of granted property; 

(8)     a requirement that, unless the period is extended for good cause shown, the authority shall act on an  application within forty-five days of the date of receipt of an application that the authority deems to be complete and, if not acted upon, the application shall be deemed approved; 

(9)     a requirement that a condition of grant approval be proof of compliance with all applicable state and local laws, rules and ordinances; 

(10)     provisions defining "low- and  moderate-income" and setting out requirements for verification of income levels; 

(11)     a requirement that a county or municipality that makes a housing assistance grant shall have an existing valid affordable housing plan or housing elements contained in its general plan; and 

(12)     a requirement that the governmental entity enter into a contract with a qualifying grantee consistent with the Affordable Housing Act, which contract shall include remedies and default provisions in the event of the unsatisfactory performance by the qualifying grantee.  

C.     In addition to the rulemaking mandated in Subsection B of this section, the authority may adopt additional rules to carry out the purposes of the Affordable Housing Act.  Rulemaking procedures pursuant to the Affordable Housing Act shall: 

(1)     provide a public hearing in accordance with the state Administrative Procedures Act [12-8-1 NMSA 1978]; and  

(2)     require concurrence in a rule having application to local government by both the New Mexico municipal league and the New Mexico association of counties.  

D.     The attorney general shall investigate any alleged violation of the Affordable Housing Act as reported by the authority.