House approves housing overhaul compromise

The House approved early this morning the new version of a bill that would overhaul the state’s scandal-plagued regional housing authorities.

Senate Bill 519, sponsored by Sen. Mary Kay Papen, D-Las Cruces, was approved on a vote of 64-0.

The bill now goes to the Senate for concurrence before it can head to Gov. Bill Richardson for a signature. The Senate is scheduled to meet for another four hours today.

The bill had been scheduled to be heard in the House Appropriations and Finance Committee before heading to the floor, but the committee’s chair, Rep. Kiki Saavedra, D-Albuquerque, allowed the bill to bypass his committee.

Before approving the bill, lawmakers heaped praise on each other for reaching the compromise.

“It’s a tremendous piece of legislation and I think it goes to show what hard work and bipartisanship can accomplish,” said Rep. Al Park, D-Albuquerque.

The new version of the bill would keep the regional housing authorities in existence, but put in place extensive oversight: Bonding and eminent domain authority would belong to the New Mexico Mortgage Finance Authority, not the housing authorities; the Department of Finance and Administration and state treasurer would have roles in administering finances; and the authorities would be required to submit quarterly audits – most agencies have to submit them annually – to the DFA.

The bill would also appropriate $200,000 to the state auditor to fund audits of the seven regional housing authorities to determine the extent of mismanagement that led to the system crumbling in scandal last year. That work must be complete by Dec. 1.

Rep. Jeff Steinborn, D-Las Cruces, said he wanted to acknowledge Rep. Janice Arnold-Jones, who helped carry the legislation by sponsoring a mirror version of Papen’s bill. Steinborn was one of those who worked Friday on the compromise.

“On the eve of going home, we worked on what was most important to our constituents,” he said. “… This was a big step forward.”

Minority Whip Dan Foley, R-Roswell, at least almost jokingly, told Speaker of the House Ben Lujan that “it takes a powerful man to make a nonpartisan issue partisan.” Foley earlier in the week accused Lujan of stalling the bill, but his shot at Lujan this morning was one of a number of jokes he made about colleagues as he praised the work on the housing authority overhaul. At the end of it all, Foley had three words for Lujan.

“Mr. Speaker – peace,” Foley said.

Foley also thanked Rep. Donna Irwin, D-Deming and a member of the Business and Industry Committee who was the only Democrat to break with her party and vote in favor of the bill earlier this week. He said her willingness to step across party lines laid the foundation for the solution.

At the end of the praise-fest, Foley sang “Kumbaya” while members voted.

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