On December 19, a significant decision regarding the definition of “moderate income” in New Mexico was postponed by the state housing finance board, which is known as Housing New Mexico. The board chair, Angel Reyes, opted to remove the proposal from the agenda of its recent directors’ meeting after receiving feedback from legislators and stakeholders about the implications of extending the moderate income limit. Under the proposed change, individuals and families earning up to 200% of the area median income would be classified as moderate income, increasing the limit from the previous threshold of 150% set just last year. This pause reflects a broader concern within the state’s housing community about the distribution of aid and resources intended for low- and moderate-income residents.
Housing New Mexico plays a critical role as a quasi-governmental entity focused on improving housing affordability throughout the state. It primarily utilizes bonds, tax credits, and other financial mechanisms to assist individuals with down payment costs, facilitate affordable mortgages, and provide rental assistance. The agency aims to address housing needs that span various income levels, but the proposed adjustment to the definition of moderate income has seen pushback from some stakeholders who fear that further extending eligibility could detrimentally affect those at the lower end of the income scale, potentially leaving many of them without sufficient support.
Concerns surrounding the proposed increase to the moderate income threshold were voiced by members of the Mortgage Finance Authority Act Oversight Committee, who pointed out that raising the income limit further could exacerbate existing inequities within the housing market. These legislators want to ensure that New Mexicans with the greatest housing needs are prioritized. The mixed feelings about the proposal highlight the ongoing debate about how best to tackle the state’s pressing housing crisis, which is characterized by a lack of affordable options for lower-income residents.
Governor Michelle Lujan Grisham’s administration has shown cautious support for the decision to delay the voting on the proposed income threshold change. Daniel Werwath, the governor’s housing policy adviser, expressed that approving the extension to higher income groups may not adequately address the historic housing shortage affecting New Mexico. Instead, the administration advocates for efforts aimed at closing the existing supply gap, specifically emphasizing the need for developing starter homes that can be accessed by New Mexicans without reliance on government subsidies.
As the legislative session in January approaches, legislators, including Reps. Angelica Rubio and Andrea Romero, are preparing to introduce new affordable housing legislation. Their initiatives are likely intended to directly tackle the challenges faced by lower-income residents and to align with the overarching goal of making affordable housing a priority in policy discussions. The developments and conversations stemming from the recent postponement indicate heightened attention on the issue, underscoring the need for carefully considered solutions that balance various income levels’ needs within the housing market.
Overall, this episode illustrates the complexities of housing policy development in New Mexico as stakeholders navigate the delicate balance between increasing affordability and ensuring that resources are allocated fairly and effectively. With mounting pressure to address the state’s housing crisis and legislative proposals on the horizon, the housing finance board’s decision to pause reflects a commitment to thoughtful deliberation, enabling further dialogue to seek equitable solutions for all residents in need of affordable housing.