The House Business and Industry Committee didn’t take up this morning a bill that would remake the state’s troubled housing authority system, but shortly after the meeting, two committee members who have previously opposed the proposal said they might be willing to change their minds.
The committee plans to meet again later today.
Senate Bill 519, sponsored by Sen. Mary Kay Papen, D-Las Cruces, would fund an investigation to determine the extent of mismanagement that led to the housing authority system crumbling in scandal last year, and would also replace the authorities with a new system overseen by the New Mexico Mortgage Finance Authority.
The committee recessed at about 9:30 a.m. so its Democratic members could attend a caucus meeting. Before the caucus meeting started, Papen spoke with the committee’s vice-chair, Rep. George Hanosh, D-Grants, and asked him to consider changing his vote. Hanosh has previously opposed her bill.
“I’m open-minded,” Hanosh said during their conversation. “But I feel that… the attorney general needs to investigate.”
He went on to explain to Papen that he doesn’t think there is enough information to know whether the system needs a complete overhaul. Papen disagreed, pointing out the number of investigations that have taken place or are ongoing, and explaining some of the problems that have been revealed.
But she said lawmakers can’t wait for the completion of the ongoing attorney general probe, because, in the meantime, homes aren’t being built, and she said the state needs thousands of affordable homes.
“I think this investigation might go on for a long time, because I think it’s very deep,” Papen said.
She asked Hanosh to consider changing his mind.
“I will,” he said.
Committee member Jim Trujillo, D-Santa Fe, remained in the committee room until about 10 a.m. During a conversation he had that was audible in the committee room, he started out by saying he isn’t flexible on his opposition to Papen’s bill. He said the State Investment Council “screwed up big time” in the bonds it bought from the housing authority, and said it has also made other mistakes.
“This is a time when I’ve got to stand up and say, ‘Hey, hey, you tighten up over there,’” he said.
He also said it didn’t appear to him that the bill would be resurrected when asked what’s going to happen.
“Sure looks like nothing, unless they’re discussing something over there without me,” he said. “(The committee’s chair) Debbie (Rodella) didn’t say anything this morning.”
He then said the governor’s office hasn’t called to ask him to change his vote, but added that his vote might not be set in stone.
“I might change my mind yet, if it has to be that way,”