Land Title Trust Fund

Purpose

The Land Title Trust Fund Act provides that certain title company escrow funds may be placed in interest-earning accounts, with the interest earned to be remitted to the Trust Fund. The Trust Fund will be used to finance loans or grants that will provide housing for low-income persons (household income not more than 80 percent of area median income) and other uses as shown below. (Note - real estate brokers and escrow closing agents subject to the Low Income Housing Trust Act may also place escrow funds in interest-earning accounts as described below.)

The Mechanics

1. Title company, real estate broker or escrow closing agent places escrow funds in special interest-earning accounts.
2. Financial institution remits the interest from these special accounts to the fund at least quarterly, pursuant to Housing New Mexico rules, or  title company may choose to remit utilizing the following forms:
3. Trustee (Housing New Mexico) oversees the deposits, investments and disbursements of the fund pursuant to the Act and the rules.

For more information on how to participate, contact Laura Thompson at 505-843-6880 or 505-767-2235.

Use of Money

• Eligible activities
  • Loans or grants to eligible organizations to provide housing for low-income persons;
  • Funds to provide scholarships for New Mexico high school graduates/GED recipients at NM public post-secondary institutions under a program to be administered by a nonprofit statewide land title association.
• Eligible organizations
  • 501(c)(3) nonprofits whose primary purpose is to provide affordable housing;
  • Units of state or local government dealing with housing;
  • Local or regional housing authority or a tribal agency dealing with housing.

Application Rounds

Applications must be received no later than 60 days prior to a regularly scheduled meeting of the Housing New Mexico Board of Directors in order to be considered at that meeting. Meetings of the MFA Board of Directors are generally held every third Wednesday of the month. Applications will be reviewed for completeness and scoring. If acceptable, they will be passed on to the LTTF Advisory Committee and subsequently to the Housing New Mexico Board of Directors. If applications are incomplete or otherwise unacceptable, they will be returned to the applicant for completion or with a rejection notice. A minimum score of 75 points must be achieved for a project to be funded.