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Rehab-2-Rental Program

Rehab-2-Rental Program Overview

Housing New Mexico, in partnership with the State of New Mexico Department of Finance and Administration, has announced the availability of funding under the Rehab-2-Rental program. The goal of the Rehab-2-Rental program is to increase housing stability for tenant-based housing voucher households. To achieve this goal, Rehab-2-Rental’s objectives are to expand housing opportunities and enhance the quality of the housing stock for tenant-based housing voucher holders in New Mexico by bringing below-standard rental properties up to housing quality standards.

Service Provider Applications

Housing service providers interested in administering the Rehab-2-Rental program must have experience and/or knowledge of housing voucher assistance and property rehabilitation. Only applicants that are structured as one or more of the following organization types may apply to be a Rehab-2-Rental service provider, including non-profit organizations, for-profit organizations, Public Housing Authorities, regional housing authorities, Tribal governments, Tribal housing agencies, partnerships, joint ventures, or other entities that can assume contractual liability and legal responsibility by entering into one or more written agreements with Housing New Mexico. To encourage participation, applicants with little experience may be considered for approval at Housing New Mexico’s discretion and will be limited to one project award.

The Rehab-2-Rental program is structured on a reimbursement process. Housing New Mexico will provide reimbursement based on completion of project construction, provided documentation completed, and understanding of monitoring requirements. Service providers will receive an administrative fee of 20% of the total project costs. This fee will be provided along with final reimbursement costs.

Existing Housing New Mexico service providers currently administering a Housing New Mexico program and who are in good standing are considered a grandfathered participant in the Rehab-2-Rental program and are not required to submit a new application but must complete the first page of the Rehab-2-Rental Service Provider Application (Exhibit A) available through the link below.

Landlord Project Submission to Service Provider

The program will be administered by an approved Housing New Mexico service provider. Current service providers are listed below. Service providers are tasked with marketing, project set-up, construction oversight, funds management, and monitoring post-construction. No funds will be directly released to landlords but will go to the service provider for reimbursement on costs associated with the project.

Service providers will accept landlord applications directly and will provide approval of funding based on the needs of the project. Landlords may receive up to $25,000 for a single-family home rehabilitation or $50,000 for duplex up to an eight-plex.

Restrictive Covenant Agreement

Project awards will be secured by a Restrictive Covenant Agreement recorded against the subject property for the award amount – less the project management fee. The recording with the county in which the property is location must be provided to Housing New Mexico as a security instrument for all awards and release of funds for eligible project costs. Restrictive Covenant Agreements will be released upon completion of the compliance period in which landlords are required to rent to a tenant-project housing voucher holder for 60-months within a 72-month period.

Project Awards

Project awards will be based on the financing needs of each project. Single-family homes detached can receive up to $25,000 and duplex up to eight-plex structures can receive up to $50,000. Individual landlords may only receive up to $75,000 for multiple projects. Funds awarded to the landlord will be provided to the service provider they are working with who will oversee the project. At any point in time the landlord violates the terms of the restrictive covenant agreement, the landlord will be required to repay the funds to the service provider at a pro-rata basis over 60 months (5 years) at a rate of 1.67% per month.

In the event the tenant decides to leave or is lawfully evicted, the landlord will be required to notify the service provider to work towards leasing to another housing voucher holder. One month between tenancies will be allowed during the 60-month period up to 72-months.

Service Provider Application

Housing New Mexico will accept applications until funding is exhausted. Applications received no later than 45 days prior to a regular scheduled meeting of Housing New Mexico Board of Directors will be considered at that meeting. Housing New Mexico holds Board of Directors meetings every third Wednesday of the month. Applications will be reviewed in the order received and evaluated concurrently until Board of Directors meeting has taken place. If sufficient funds are not available to fund all service providers that meet the requirements outlined in the Notice of Funding Availability (NOFA), Housing New Mexico will notify all applicants.

Awarded Service Providers Contact List

Resources

Rehab-2-Rental Notice of Funding Availability (NOFA)
Rehab-2-Rental Service Provider Application (Exhibit A)
Service Provider and Housing Voucher Administrator Partnership Agreement (Exhibit B)
Rehab-2-Rental NOFA Training Webinar
RCA and Forgivable Loan Terms - March 2025
Rehab-2-Rental FAQs

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