With Gov. Bill Richardson out of the state for his presidential campaign, Lt. Gov. Diane Denish will sign into law Wednesday a bill that will overhaul the state’s scandal-plagued regional housing authorities.
The signing ceremony will be held at 2 p.m. at the office of the New Mexico Mortgage Finance Authority, 344 4th Street in
Senate Bill 519, sponsored by Sen. Mary Kay Papen, D-Las Cruces, keeps the regional housing authorities in existence, but puts in place extensive oversight: Bonding and eminent domain authority will belong to the New Mexico Mortgage Finance Authority, not the housing authorities; the Department of Finance and Administration and state treasurer will have roles in administering finances; and the authorities will be required to submit quarterly audits – most agencies have to submit them annually – to the DFA.
The bill appropriates $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.
The final bill was a compromise that followed more than a week of tense negotiations during the regular session. A prior version of the bill would have abolished the housing authorities and replaced them with a system overseen entirely by the MFA.
Denish, who is chair of the MFA board, was instrumental in negotiating the compromise.
Papen is in