Lt. Gov. Diane Denish signed into law today a bill designed to stabilize the state’s scandal-plagued regional housing authority system while officials determine the next course of action.
“It is a good day,” Denish said after the bill signing.
The bill takes effect immediately, so the housing authorities have been stripped of bonding authority and now have significant oversight. The legislation doesn’t help restart authorities 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 now belong to the New Mexico Mortgage Finance Authority; the Department of Finance and Administration and state treasurer have roles in administering finances; and the authorities are required to submit quarterly audits – most agencies have to submit them annually – to the DFA.
The bill-signing ceremony was held this afternoon at the offices of the MFA in
“This is a major victory for ethics, fairness and reform,” he said.
Papen is in
“Our Doña Ana Regional Housing Authority was in crisis and Lt. Gov. Denish was willing to step forward and work with me to take on the difficult task of fighting to restore the public trust and fixing a system long overdue for reform,” she said.
Audit will help determine next course of action
The bill also appropriates $200,000 to the state auditor to fund an audit that will determine the extent of mismanagement that led to some of the authorities shutting down amid scandal last year. The Region III authority, based in
Four of the seven authorities are at least a year behind on the completion of audits, and many fear the problems might go far beyond the bond money. The attorney general is investigating, but the new audit is critical to finding answers, officials say. It must be complete by Dec. 1, but State Auditor Hector Balderas hopes to have it finished by the end of the summer.
“There have been numerous concerns raised about the fiscal management of the regional housing authority system,” Balderas said. “New Mexican taxpayers deserve answers to the questions surrounding the administration of this important program, which provides New Mexicans access to affordable housing. I’m committed to holding the regional housing authorities fully accountable for their practices.”
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 immediately abolished the housing authorities and replaced them with a system overseen entirely by the MFA. After a House committee killed that version of the bill, with many of its members saying it was premature to scrap the entire system, lawmakers, Denish and
Denish said the system put in place today will “build a structure for those authorities that are working,” and the audit will help officials determine where to go next. One possibility is that assets of the defunct authorities could be transferred to local affordable housing operations. The Legislature might also be asked next year to approve legislation that establishes a more permanent system.
Nothing is certain until Balderas’ office completes the audit.
“Hopefully, after a year of getting everything stabilized, then we will be able to provide more funding for affordable housing,” Denish said.