'We've gotta build houses': Gov. signs affordable and workforce housing bill, two others

Feb. 28—SANTA FE — "We've gotta build houses."

That was the message from Gov. Michelle Lujan Grisham as she signed into law a bill geared at increasing the state's low-cost housing stock.

HB195 expands the Opportunity Enterprise Act, a bill passed in 2022 that created a revolving fund to provide loans, revolving funds and other financing to projects that would increase economic development opportunities in the state.

This new bill would add housing to the list. Builders of workforce development housing — below-market rate housing located near employment centers — or affordable housing units could qualify for financial assistance from the state.

Sen. Michael Padilla, D-Albuquerque, said that as new employers like Maxeon bring workers into the state, they're faced with a 40,000-unit housing shortage. The New Mexico Mortgage Finance Authority estimated in a 2023 report the state is short about 32,000 affordable rentals.

"All those workers need a place to live," Padilla said.

Padilla said increased housing inventory as a result of the bill could drive down housing costs. Every year, the New Mexico Finance Authority will be required to report the number of units that were supported by the housing development assistance program.

Like the 2022 enterprise bill, HB195 creates a revolving fund for housing projects. Projects in areas that are making zoning changes to increase housing production would be prioritized.

HB177 and HB232

Lujan Grisham also signed HB177 and HB232 on Wednesday. The first creates a state fund for entities applying for federal dollars that require matching dollars to qualify.

Rep. Meredith Dixon, D-Albuquerque, said there's an "unprecedented amount of federal funding" available through the Inflation Reduction Act and the Bipartisan Infrastructure Law — if only small governments and entities are able to take advantage of it.

"We're going to make sure that we don't lose the opportunity to leverage every single dollar at the federal level," Lujan Grisham said.

HB232 creates a new infrastructure division within the state Department of Finance and Administration, which would be tasked with aiding local and tribal governments in finding and applying for infrastructure dollars and applying them to development projects.