When the New Mexico Mortgage Finance Authority (MFA) was created by the state legislature in 1975, its mission was to provide affordable mortgage loans to low-income New Mexico families. Fast forward to nearly 50 years later — MFA offers much more than mortgages, including various home rehabilitation programs to help New Mexicans stay in safe, affordable homes.

MFA partners with service providers around the state to deliver rehabilitation services. For an opportunity to be selected, service providers may submit a proposal through MFA’s notice of funding availability or request for proposals process.

HOME Rehabilitation Program

The U.S. Department of Housing and Urban Development’s HOME Investment Partnerships Program (HOME) is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. One of the activities this program funds is rehabilitation. Many New Mexicans have benefitted from MFA’s HOME Rehabilitation Program, which provides home repairs to bring the home up to code or accessibility modifications to homeowners who lack the resources to do so. Services include but are not limited to:

• Hazard reduction measures, such as the installation of ramps or rails in bathrooms for elderly or disabled individuals who are at risk of falling.
• Accessibility modifications for individuals with disabilities that include the installation of handrails and ramps or widening doors.
• Repair or replacement of major housing systems such as furnaces, ducting or water heaters.
• General and essential property improvements that are non-luxury in nature, including roof replacement and mobile home replacement.
• Measures needed to bring a home up to code or into compliance.
• Energy-saving measures that help improve the efficiency of the heating and cooling of the home and reduce utility bills.

Veterans Home Rehabilitation and Modification Program

MFA’s Veterans Home Rehabilitation and Modification Program is similar to the HOME Rehabilitation Program in that it provides home rehabilitation for health and safety issues, fall reduction items, accessibility and code compliance upgrades at no cost to eligible veterans. Services for this program also include physical modifications to allow a veteran’s emergency caregiver to live with the veteran.

Home Improvement Program

The most recently added rehabilitation program is MFA’s Home Improvement Program, which was launched in February 2024. Through this program, home rehabilitation services are offered directly from MFA in eight counties that currently do not have a service provider for the HOME Rehabilitation Program. MFA’s Home Improvement Program offers the same services as the HOME Rehabilitation Program.

Restoring Our Communities

MFA launched the Restoring Our Communities (ROC) program in September 2023 to help meet New Mexico’s need for affordable housing units while assisting communities in reducing vacant and abandoned houses that decrease property values and increase risks to public health and welfare. Homeowners within close proximity to abandoned homes can pay higher insurance premiums as well.

The ROC program provides funding to approved service providers for the acquisition, rehabilitation and resale of single-family homes, with the goal of increasing homeownership opportunities for low- to moderate-income working households. The program objectives are to:

1. Provide funding for the acquisition and rehabilitation of vacant or abandoned houses to increase affordable housing units in New Mexico.
2. Create and preserve affordable housing and provide affordable housing opportunities for low- to moderate- to middle-income homebuyers.

While individual homebuyers are not eligible to apply for ROC program funding, MFA will work with eligible agencies to administer the program under applicable program guidelines. MFA allocated $4 million in funding from the New Mexico Housing Trust Fund to the ROC program. Funds are awarded to qualified service providers on a first-come, first-serve basis for qualifying projects. The notice of funding availability will remain open as long as there are available funds.

Individual homebuyers who purchase the ROC rehabilitated homes would likely qualify for MFA’s mortgage and down payment assistance programs.

New Mexico Preservation Loan Fund

Also created in 2023, MFA’s New Mexico Preservation Loan Fund is a flexible funding source for multifamily properties at risk of exiting the affordable housing stock, providing opportunities for the preservation of affordable housing in the state. This loan fund is available to owners, developers and other partners seeking funding for preservation-related needs, including:

• Rehabilitation funding for owners struggling with physical upkeep as their multifamily property ages.
• Acquisition financing for prospective owners seeking to acquire multifamily affordable projects and maintain their affordability over time.
• Predevelopment funding for existing Low-Income Housing Tax Credit properties pursuing resyndication.

Preservation-related initiatives are being phased in, and MFA has implemented the rehabilitation initiative. The acquisition initiative will be implemented during the next phase, followed by the other predevelopment uses.

The New Mexico Preservation Loan Fund is unique in that it is the only MFA rehabilitation program aimed at addressing the preservation needs of multifamily developments. With this fund, MFA strives to provide interest rates and loan terms that are more flexible than those offered by traditional financial institutions.

“By implementing these much-needed programs, our goal is to help New Mexicans get into — and stay in — safe, affordable and energy-efficient homes,” said MFA Executive Director/CEO Isidoro Hernandez. “Through these programs, MFA will improve and strengthen communities, whether it’s rehabilitating, restoring or preserving existing homes. We encourage eligible applicants for these programs to visit our website and apply for funding.”

To explore all of MFA’s programs, visit housingnm.org.