Developers Information

Housing New Mexico’s Housing Development Department provides funding for developers who are creating or rehabilitating rental and for-sale homes for households with low incomes. Our primary funding method is through the allocation of federal and state tax credits. We also offer several below- market rate loan programs that are often used in conjunction with tax credits. We appreciate inquires and prefer to discuss projects with developers prior to application in order to determine which programs would work best for a given project. Please send us an email through the “contact us” link on the right side of this page or call (505) 843-6880.

Notice of Volume Cap Limitations

In December 2024, the New Mexico State Board of Finance designated $200,000,000 in private activity bond volume cap for multifamily affordable housing projects. The State Board of Finance held a meeting on July 15, 2025, and took action to reallocate $56,700,000 for a total of $256,700,000 of private activity bond volume cap for multifamily housing projects. To date, $177,950,000 of this volume cap has been allocated. Therefore, the remaining available private activity bond cap is $78,750,000. Any additional designations of private activity volume bond cap for multifamily affordable housing projects, if any, will be made in the sole and absolute discretion of the State Board of Finance.

MFA has received applications requesting private activity bonds in amounts that exceed the available allocation of volume cap. Therefore, any new application received for 4% LIHTC will be prioritized based on their readiness to begin construction using the remaining volume cap. Any projects for which the remaining volume cap is insufficient to meet financial feasibility without a supplementary allocation of 2026 volume cap will need to comply with 2026 requirements, which may be different than what is described in the 2025 QAP and current State Board of Finance policies.  Pursuant to Section E of the Qualified Allocation Plan – Project Selection Criteria to Implement Housing Priorities, New Mexico Mortgage Finance Authority (Housing New Mexico | MFA) will prioritize projects based on their readiness to begin construction when there is insufficient private activity bond volume cap.

Project Prioritization Process:

• If the private activity bond volume cap is insufficient to finance all tax-exempt bond projects during the January-June or July-November periods, Housing New Mexico, at its sole discretion, will prioritize projects which demonstrate a greater capacity to commence construction earlier.
• Projects which have submitted permit-ready drawings (i.e., construction plans) and specifications to the local jurisdiction for approval will also receive priority.
• For projects exceeding the available private activity bond volume cap, Housing New Mexico will issue a draft 42(m) letter only after the prioritized projects have received an allocation of volume cap.

Definition of Insufficient Private Activity Bond Volume Cap:

Insufficient private activity bond volume cap occurs when Housing New Mexico receives feasible applications requesting private activity bonds in amounts that exceed the available allocation of volume cap. In such cases, Housing New Mexico prioritizes projects based on their ability to start construction promptly, following the same criteria outlined above.

Such prioritization ensures that projects demonstrating greater preparedness will receive their request(s) and that the allocation of this limited resource for multifamily affordable housing developments remains efficient.