Sen. Mary Kay Papen’s bill that would remake the state’s affordable housing system is headed to the Senate floor after the Finance Committee’s members gave it unanimous approval this morning.
The bill could be heard by the full Senate later this week or early next week.
Senate Bill 519 would, over a period of several months, shut down the state’s scandal-plagued regional housing authorities and replace them with a system overseen by the New Mexico Mortgage Finance Authority.
The bill would also provide for audits of each of the seven housing authority regions to determine the extent of the mismanagement first revealed last year when Frances Williams, a member of the Las Cruces-based Region VII board, complained about problems. Several weeks after she went public, the Region III authority, based in
Based on concerns expressed earlier this week by members of the Corporations and Transportation Committee, Papen proposed an amendment today that would require that the MFA, while seeking service providers to replace the housing authorities, give preference to bidders who employ former employees of the two regional housing authorities in the state that have not had problems.
Current state law creates seven regional authorities. Three have shut down due to severe problems and two are considered troubled, but two others have performed excellently for years. Several lawmakers have expressed concern that the employees of those two would be lost in the transition.
The co-chairs of finance, Sen. Tim Jennings, D-Roswell Sen. John Arthur Smith, D-Deming, represent areas served by the two high-performing regional housing authorities. Papen’s amendment seemed to allay their concerns.
“My guys have done a good job, and they have no reason to be punished,”
Smith agreed, but said the problems with the system are too great to ignore.
“I come from a high-performing area, but when you have five of seven (that are not), you’ve got to do something,” he said. “… It’s a very large problem, because it casts doubt on the whole process, including the executive and legislative members.”
Sen. Nancy Rodriguez, D-Santa Fe, agreed.
“I’m certainly for supporting the change that needs to be made,” she said. “Obviously, there are problems, and somebody has to step up to fix them.”
Noting the ongoing investigations of the housing authorities, Smith said the news will get worse. The attorney general is investigating, and the FBI has also been asked to look into the situation.
“We certainly believe there are going to be more revelations that are not going to be pleasing to anyone involved,” Smith said.
After the hearing, Papen said she hoped the amendment would help the legislation pass the Senate and House.
“I hope that this is going to solve the problems that we’ve had with the housing authorities and help us be able to move forward,” she said.
A similar bill in the House, House Bill 997 sponsored by Rep. Janice Arnold-Jones, R-Albuquerque, has not yet been scheduled for a hearing and has been assigned to three committees.