NM scrambles to deliver federal rental aid by Sept. 30 deadline

May 28—SANTA FE — A flood of federal cash poured into New Mexico last month to help families behind on their rent and utilities — about $170 million, contained in one round of stimulus legislation.

But only a trickle of that money has made it to renters and their landlords so far.

And there's a chance some of it won't be spent at all — due to a mix of federal deadlines, restrictions on how the money can be spent and market conditions, according to interviews with government officials and advocates for low-income families.

The state of New Mexico faces a Sept. 30 deadline to spend or obligate 65% of the money, or the unused funds are set to be swept back into the U.S. Treasury.

As it stands now, the state is well short of the target. About $1.7 million of the money has been distributed so far, with nearly $1 million more recommended for payment.

It would be a real "missed opportunity for the state if we don't use that money," said Maria Griego, an attorney and director of economic equity at the New Mexico Center on Law and Poverty.

But there's still time. State and local officials say they are making an aggressive push to get the money out to those who need it.

In an interview, Henry Valdez, a spokesman for the state Department of Finance and Administration, said it's premature to suggest New Mexico will have to give any money back.

Every state in the country faces a similar challenge, he said, and New Mexico officials are confident they can meet the deadline. It's also possible the U.S. Treasury Department will give states more time.

But "this is a short race," Valdez said, "and we need to get moving. I definitely think there's time."

'Slow' rollout

The money at issue was flagged in a recent report by staff analysts for the Legislative Finance Committee, a bicameral group of lawmakers who meet between legislative sessions.

"Rollout of the emergency rental assistance program has been slow," LFC analysts said in a report.

One of the rounds of federal stimulus legislation sent roughly $170 million to the state and city of Albuquerque with a Sept. 30 deadline to spend or obligate 65% of it, or about $110 million. Some local governments — such as Doña Ana and Bernalillo counties — received money directly and are administering their own programs.

The money is intended to help people who have had trouble paying their rent or utilities. Landlords and renters can apply.

It's just a small slice of the federal stimulus funding sent to New Mexico and local governments.

But the money comes with strings attached. It's for rent and utilities, not mortgage payments, and families in need must meet certain income requirements.

A family of three in Albuquerque, for example, would have to make $49,800 or less, according to the state Department of Finance and Administration. They must be receiving unemployment benefits, unemployed or able to show a financial impact due to the COVID-19 pandemic, among other conditions, and documentation is required.

Doña Ana County Manager Fernando Macias said his county received about $9.3 million linked to the Sept. 30 deadline, about $6 million of which must be spent or obligated to avoid reverting funds back to the federal government.

Even with an aggressive outreach program, he said, the county is unlikely to hit the target. It had spent about $1.2 million through Monday, a figure that's separate from what the state reported.

Some families, Macias said, may feel less pressure to apply this summer because boosted unemployment benefits are in place. They're set to expire in the first week of September.

The county has also received applications that lack the required documentation or are seeking help on a mortgage or utilities for a property the person owns.

"The primary height of the utilization of the money has yet to come," Macias said. "Once unemployment benefits become more contracted, my sense is that people may have more struggles."

He said he is hopeful federal officials will grant state and local governments more flexibility.

Overheated phone line

Tomás Rivera, executive director of the Chainbreaker Collective, an advocacy group that has worked on housing challenges in Santa Fe, said lack of need isn't a factor.

He estimated that 5,700 households in Santa Fe are at risk of eviction once pandemic restrictions on landlords are lifted.

State and federal moratoriums now prohibit forcing a tenant out for inability to pay rent. Cities and local governments may have their own restrictions in place, too.

The federal ban is set to expire next month.

But Rivera said renters aren't just waiting around. Demand for help through an earlier rental assistance program was so intense, he said, the volume of calls overheated the nonprofit group's cellphone.

"The need was extreme," Rivera said. "It hasn't been our experience that people are sitting on their hands."

Griego, of the Center on Law and Poverty, said some landlords aren't eager to participate in the rental assistance program.

In some cases, she said, a tenant's lease may have expired anyway, and the strong housing market in parts of the state makes it more attractive for property owners to sell rather than rent.

"There's not an incentive for a lot of landlords who are wanting to sell to take the rental assistance," Griego said.

'Lifeline'

The city of Albuquerque and state of New Mexico are working together on their rental assistance program.

Lisa Huval, the city's deputy director of housing and homelessness, said the city and state know they have work to do to help people submit thorough applications. They are working with community groups to reach non-English speakers and others disproportionately harmed by the pandemic.

"These funds are a lifeline for many in Albuquerque who are facing housing instability," Huval said in a written statement.

Valdez, spokesman for the state Department of Finance and Administration, said the outreach effort is similar to the census, focusing on hard-to-reach people who might not otherwise participate.

He noted that citizenship isn't required for the rental assistance program.

"We feel like there's a huge chunk of the community that's eligible for this program and really needs this," Valdez said, "but that doesn't think they're eligible."

He said he doesn't think the state will end up having to revert any money.

Mayling Armijo, economic development director for Bernalillo County, said difficulty reaching a landlord can hold up applications for the federal aid. Cases can be processed more quickly, she said, with help from the property owner.

"Some of the challenge we're having is getting the landlords to respond quickly," she said. "We have a lot of applications in this pending process."

But when the program works, Armijo said, it can make a real difference.

A single mom with three kids recently applied for help with back rent and utilities.

Bernalillo County, Armijo said, paid out $17,000 to help.