Affordable housing overhaul heads to Senate floor
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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 Albuquerque, defaulted on $5 million in bonds it owed to the state. 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. Continue Reading