New Mexico Faces Housing Crisis: MFA Announces Major Initiative
New Mexico is grappling with a severe housing crisis, marked by an estimated 15,000 to 20,000 people experiencing homelessness annually, a shortage of 32,000 low-income rental units, and over 40,000 housing units in need of significant repairs. The situation has been exacerbated by a 50% increase in homelessness from 2022 to 2023, according to the federal point-in-time count, which is widely regarded as an underestimate.
At a recent news conference, officials from the New Mexico Mortgage Finance Authority (MFA) and their partners addressed the state’s urgent housing needs and unveiled plans to allocate $84.6 million in state funds to address these challenges in the coming years.
The MFA oversees hundreds of millions of dollars annually through 40 programs aimed at addressing a range of housing needs, from homelessness services to homeownership. These programs include new housing construction, down payment assistance, and home rehabilitation. The MFA collaborates with a diverse network of partners, including developers, realtors, landlords, nonprofits, for-profits, local governments, and tribal authorities. Notably, 25 of these partners focus specifically on providing homeless services.
Edward Archuleta, Executive Director of St. Elizabeth Shelters & Supportive Housing in Santa Fe, highlighted the impact of MFA funding on his organization. In 2020, the MFA awarded St. Elizabeth $2 million to help acquire the 122-unit Santa Fe Suites motel, which has been pivotal in housing homeless individuals in Santa Fe.
“It’s been a tremendous success,” Archuleta said. “We’ve expanded our services to include shelters and support for women, families, individuals with disabilities, and those with low incomes.”
Archuleta shared the story of Patty, one of the first residents of Santa Fe Suites, who had previously experienced long-term homelessness and struggled with severe mental health issues. “Nobody wanted to help her,” Archuleta recounted. “We were there to take on those who others wouldn’t.”
Although Patty passed away a few years after moving into her new apartment, Archuleta expressed satisfaction that she did not die on the streets. “It really makes me happy that she had a chance to live in a home,” he said.
Key Findings and Funding Allocation
The MFA’s 2024 housing needs assessment reveals several critical issues:
- The state’s median household income stands at $58,722, but 43.2% of residents earn less than $50,000 annually.
- The median home sale price has surged from $200,000 in 2018 to $353,000 in 2023.
- Renters face significant challenges, with the median monthly gross rent rising to $966 in 2022, a 7.7% increase from 2021 and a 16.7% increase from 2018. Nearly 44% of renters and 28% of homeowners are considered cost-burdened, spending more than 30% of their income on housing.
To address these issues, MFA Executive Director and CEO Isidoro Hernandez announced the allocation of $50 million from the last legislative session and $36.4 million from 2025 severance tax bond funding. The funds will be used as follows:
- $26.6 million to develop new housing.
- $20 million for down payment assistance.
- $10 million to preserve existing affordable housing.
- $1 million to create stable housing environments.
- $27 million held in reserve for specific needs as they arise.
Rebranding to Housing New Mexico
In a strategic move to better reflect its expanded role, the MFA has rebranded as Housing New Mexico. The name change is intended to reduce confusion with the New Mexico Finance Authority (NMFA), which focuses on financing infrastructure projects.
Hernandez explained, “When the New Mexico Mortgage Finance Authority was established in 1975, its primary focus was mortgage assistance for low-income households. Over time, we’ve broadened our scope to include a diverse array of programs and services. Housing New Mexico more accurately represents our mission and the wide range of services we provide.”
While the rebranding does not constitute a legal name change, Hernandez hopes that the new name and logo will enhance public understanding of the agency’s work. “We remain the New Mexico Mortgage Finance Authority,” he said. “As the state’s housing authority, our vision is to ensure that all New Mexicans have access to quality, affordable housing opportunities. Housing New Mexico truly embodies our commitment to this goal.”
