Rehab-2-Rental Program
An informational webinar for the Rehab-2-Rental pilot program was held on April 2, 2025, at 11:00 a.m.
The webinar was recorded for those who could not attend.
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.
Eligibility
Eligible applicants must have experience and/or knowledge of housing assistance and property rehabilitation. Eligible applicants include 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. Threshold requirement to be considered an approved Service Provider must be met by all applicants. 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.
Existing and New Service Providers
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.
Partnership with Housing Voucher Administrators
Eligible applicants that do not administer tenant-based housing vouchers themselves must partner with such entities, including a public or Tribal housing authority, a Linkages service provider, an Emergency Solutions Grant (ESG) service provider, a Housing Opportunities for Persons with AIDS/HIV (HOPWA) service provider, municipal or county voucher program administrators, or other tenant-based housing voucher administrators. Eligible applicants that are not a Housing Voucher Administrator must provide evidence of the partnership by both entities signing a Service Provider and Housing Voucher Administrator Partnership Agreement (Exhibit B) available through the link below. Housing New Mexico may assist with partnering entities.
Project Submission
Once an applicant is approved to be a Rehab-2-Rental service provider, it may enter into a partnership agreement with Housing New Mexico, after which it may begin submitting projects to approval. Up to five projects may be submitted at a time. A project may consist of single-family homes up to a four-plex on a single lot. Each unit may receive up to $25,000. A duplex, for example, is eligible for up to a $50,000 award. The amount of the award will be based on the needs of the home to ensure compliance with the housing voucher program it is currently participating in or will be participating in.
Loan Terms
The terms and conditions for each project award will be based on the financing needs of each project within the funding source regulations and limitations. Each unit can receive up to $25,000. This is a forgivable loan. The forgivable loan will be made to the Landlord by the Service Provider. The loan will be forgiven on a pro-rata basis over 60 months (5 years) at a rate of 1.67% per month, so long as the Landlord rents the property to a housing voucher holder. The Landlord will not be required to rent to the same tenant for the duration of the term if the tenant violates their lease terms. Landlords will receive credit toward loan forgiveness in cases where tenant has a housing voucher at the time of lease-up, but whose voucher may have expired while continuing to occupy the units. Landlords may also receive credit toward forgiveness for up to one month between tenancy.
In the event the tenant decides to leave or is lawfully evicted, the Landlord will be required to notify the Service Provider. The Landlord will be responsible for leasing to a new tenant in partnership with Service Provider or repay the loan.
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 of the security instrument will be required for all awards and proof of recording with the county in which the project is located must be provided to Housing New Mexico to secure Housing New Mexico disbursement for eligible costs for completion of the project. The Restrictive Covenant Agreement will be released upon completion of the compliance period. Up to five projects may be submitted at a time, in which approval for any subsequent projects is provided by Housing New Mexico. Service Providers are responsible for monitoring compliance with the Restrictive Convent Agreement after construction is completed.
Administrative Fee
Service Providers will receive a project administrative fee of up to 20% of the total project cost. The fee will be paid through a reimbursement process with submission of a project completion form. Upon Housing New Mexico’s approval of the Project Completion Form, the final reimbursement request will be processed for payment. For example, if project the construction cost for one unit is $25,000, then the Service Provider is eligible for a $5,000 fee, disbursed upon project completion. At its discretion, Housing New Mexico may advance a project management fee.
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.
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