National Housing Trust Fund

Purpose

The National Housing Trust Fund (NHTF) program complements existing federal, state, and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for households whose incomes do not exceed the greater of 30% Area Median Income (AMI) or the federal poverty line (collectively defined as Extremely Low Income or "ELI" households). One hundred percent of rental units funded by NHTF will be occupied by ELI households.

Eligible Borrowers

Nonprofit entities, for-profit entities, public housing agencies and tribally designated housing entities.

Eligible Projects

Cost of construction, rehabilitation, acquisition and related soft costs as allowed under applicable regulations.

Secondary Financing

NHTF mortgage may be in first or junior lien position on the property.

Interest Rates

Generally, NHTF loans are offered at a 0% interest rate.

Loan Term & Amount

All Eligible Projects:

Up to a two-year construction loan term
Minimum 30-year permanent loan term in the form of either a non-interest bearing cash flow loan or a fixed annual payment of $500 based on borrower’s preference
$400,000 per project limit

Affordability Requirements

Rental: Households earning 30% or less of area median income (AMI) must occupy NHTF-funded units.

Guaranties

Guaranty(ies) will be required from financially responsible entities or individuals acceptable to Housing New Mexico if other than minimal funds are to be used during construction. See checklist for required information.

Application Due Dates

Complete 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 Housing New Mexico Board of Directors are generally held every third Wednesday of the month. With the exception of applications submitted for consideration with applications for 9% Low Income Housing Tax Credits (LIHTC), all applications submitted by the deadline for a particular meeting of the Housing New Mexico Board of Directors will be treated as one funding round and evaluated concurrently.

NHTF and 9 Percent Low Income Housing Tax Credits (LIHTC)

If an applicant plans to request NHTF funds when applying for LIHTC in the 9% annual competitive round, they must do so as part of their LIHTC application (see LIHTC application package for details). If a project receives a preliminary LIHTC award notification, the applicant must submit the required loan fee(s) within five business days of receipt of said notification.

NHTF applications submitted with LIHTC applications will follow the approval process found in the then-current State of New Mexico Housing Tax Credit Qualified Allocation Plan (QAP) and will generally be heard at the Housing New Mexico Board of Directors meeting with the accompanying 9% LIHTC application.

NHTF and 4 Percent Low Income Housing Tax Credits (LIHTC)

If an applicant plans to request NHTF funds when applying for a 4% LIHTC allocation, they must do so as part of their LIHTC application (see LIHTC application package for details). The applicant must submit the required loan fee(s) at the same time they submit their 4% LIHTC application.