Dec. 19—A state housing finance board has tabled a decision to change the definition for who is considered “moderate income” to include more people.
Housing New Mexico, formerly the New Mexico Mortgage Finance Authority, had proposed increasing the moderate income limit to encompass New Mexicans who make up to 200% of the area median income. But board chairwoman Angel Reyes removed the item from the agenda for Wednesday’s board of directors meeting, spokesperson Kristie Garcia confirmed in a Thursday email.
“In the past few days, we have heard concerns from legislators and stakeholders about the proposed change that we would like to address and allow time for discussions,” she wrote. “We want to be sure we understand their concerns. We’d like more time to provide more information to legislators on how funds are allocated throughout the housing continuum so there is a better understanding of where and how resources are used.”
The quasi-governmental entity provides financing through bonds, tax credits and other sources to make housing affordable to low- and moderate-income New Mexicans through down payment assistance, affordable mortgages, rental assistance and more.
The agency increased the “moderate income” definition in 2023 from 120% to 150% of area median income. Some legislators who sit on the Mortgage Finance Authority Act Oversight Committee said they were concerned a second increase would leave New Mexicans on the lower end of the income spectrum behind.
In an email, Gov. Michelle Lujan Grisham’s housing policy adviser Daniel Werwath said he was encouraged by Housing New Mexico’s decision to hold off on the change.
“In general, we feel that extending limited public housing resources to higher income groups isn’t the best way to address the historic housing shortage,” he wrote. “Instead, we’d like to see a concerted effort to close the supply gap with a focus on creating more starter homes New Mexicans can afford without subsidy.”
Several legislators, including Reps. Angelica Rubio, D-Las Cruces, and Andrea Romero, D-Santa Fe, have said they are working on affordable housing legislation they plan to introduce when the legislative session starts in January.