A bill that would fund a widespread investigation into the problems with the state’s regional housing authority system was approved by members of the House Business and Industry Committee this evening, but another bill that would remake the state’s affordable housing system did not receive approval.
House Bill 1321, sponsored by Minority Whip Dan Foley, R-Roswell, was approved unanimously after significant changes suggested by committee members were made. It must still be approved by two committees and the House before it can head to the Senate for consideration.
With 3.5 days left in the session, that’s a rough road.
On a vote of 6-6, the committee members couldn’t agree to either approve or table Senate Bill 519, sponsored by Sen. Mary Kay Papen, D-Las Cruces, so it remains in limbo. It’s not likely the committee will consider it again before the end of the session. The committee has already tabled House Bill 997, sponsored by Rep. Janice Arnold-Jones, R-Albuquerque, so Foley’s is the only bill left alive, unless House members try to blast one of the other bills out of committee and bring it directly to the House floor for consideration.
In addition to funding the investigation, the Papen and Arnold-Jones bills would replace the scandal-plagued authorities with a new system overseen by the New Mexico Mortgage Finance Authority.
Foley’s bill appropriates $300,000 to fund an investigation by the Legislative Finance Committee and State Auditor’s Office into widespread mismanagement found last year by the governor’s office and State Investment Council. Read the investment council report by clicking here.
Under Foley’s bill, the LFC would lead the investigation and would have to report to the Legislature and governor by Dec. 15.
“What we want to do is restore public faith,” Foley said. “We think we’re moving in the right direction.”
He also told the committee the Papen and Arnold-Jones bills were necessary, saying they would “provide oversight and accountability.”
All agree probe would find answers
Several Democrats who voted to table the Papen and Arnold-Jones bills thanked Foley for working with them on the amendments to his bill, and two of them said they hoped it would put an end to what they said was misinformation that may exaggerate the problems and provide information that will reveal the truth.
“This will put an end to the rumors and the speculation,” said Rep. Thomas Garcia, D-Ocate.
Committee members asked a series of questions about the oversight that exists under the current housing authority law and were told there isn’t much. They asked about problems with the authority, and were told much remains unknown, which is why additional investigation is needed.
“We don’t have final numbers. We don’t have an accounting of assets, and I think it’s critical that we get that,” said Rep. Justine Fox-Young, R-Albuquerque and a member of the committee.
The attorney general is already conducting an investigation, but the new funding, if it’s approved by the Legislature, would fund full audits of all seven housing authority regions to determine how much money is missing and where it went.
Officials already know that the Region III authority, based in
Four of the seven authorities are at least a year behind on the completion of audits, and many fear the problems might go far beyond the bond money.
Speaker of the House Ben Lujan, a close ally of Gallegos, stood in the back of the room tonight for much of the hearing on Foley’s bill after presenting his own memorial. He didn’t speak during the hearing, and didn’t stay for the hearing on Papen’s bill.
Lujan was tenuously tied to the scandal last year when it was reported that one of his top aides, who may not qualify for low-income housing, was living rent-free in a home owned by the Region III authority.
Committee doesn’t approve overhaul of system
Papen, during the hearing on her bill, said the overhaul was necessary because of the lack of checks that that exist under the current system.
“There was no oversight,” Papen said. “It was sort of like writing a blank check.”
But half of the committee’s members weren’t convinced. With a 6-6 split, the committee couldn’t get a majority to approve the bill or table it.
“I think it’s obscene that we’re stalling the bill at this late date in the session,” Fox-Young said. “We are not standing up for the taxpayer.”
A prior version of this posting incorrectly stated that five of the seven authorities are behind on audits.