New Mexico Preservation Loan Fund

Purpose

Housing New Mexico’s New Mexico Preservation Loan Fund (NMPLF), is a flexible funding source for multifamily properties at-risk of exiting the affordable housing stock, providing opportunities for the preservation of affordable housing in the state of New Mexico. The NMPLF is available to owners, developers, and other partners seeking funding for a wide array of preservation-oriented needs. This includes rehabilitation funding for owners struggling with physical upkeep as their multifamily property ages, acquisition financing for prospective owners seeking to acquire multifamily affordable projects and maintain affordability over time, and predevelopment funding for existing LIHTC properties pursuing re-syndication. The Fund will strive to provide interest rates and loan terms more flexible than what may be provided by traditional financial institutions.

Eligible Borrowers

Eligible applicants include non-profit organizations, for-profit organizations, governmental housing agencies, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies, builders, corporations, limited liability companies, partnerships, joint ventures, syndicates, associations, or other entities that can assume contractual liability and legal responsibility by executing one or more written agreements with Housing New Mexico.

Eligible Projects and Programs

The NMPLF provides assistance to all types of multifamily affordable housing located in the state of New Mexico deemed “at risk,” regardless of location, construction style, or occupancy. “At risk” properties are defined as those properties in danger of exiting the affordable housing stock due to conversion to market rents, physical dilapidation, or any other causes.

The NMPLF program assists only existing multifamily affordable properties in order to preserve existing affordable housing stock.

The NMPLF program accepts applications for projects throughout the state and will endeavor to provide a fair statewide geographic distribution. However, NMPLF funding will strive to target projects that may have more difficulty securing funding from other sources.

NMPLF is currently awarding limited funding under policy initiatives, providing long-term, low interest loans to finance the rehabilitation or acquisition of low-income multifamily housing who might otherwise be lost from the affordable housing stock.

Other Requirements

Projects will be subject to beneficiary income limits and other requirements. As a general practice, NMPLF requires that the project maintain existing restrictions on the property in effect at the time of funding application, including income and rent limits instituted by Housing New Mexico or another entity. Housing New Mexico will require commitment to an affordability period depending on amounts of funding awarded, as outlined in the NMPLF policy.

Application Process

Applicants should provide a complete universal rental development application, and all items listed on the appropriate application checklist. If all items cannot be provided at the time of application, applicants must indicate why and state when the requested information will be available.

Housing New Mexico reserves the right to accept or deny any application at its own discretion. Housing New Mexico will deny any application which staff believes does not align with the intent of the program.

Loan Terms

Loans for projects awarded through initiatives are structured as long-term, low interest loans to finance the acquisition or rehabilitation of low-income multifamily housing. Loan terms are flexible, but have a base rate of 1% and base term in alignment with the project’s NMPLF affordability period (see NMPLF policy). Loan payments will typically be interest-only payments monthly, fully amortized over the term of the loan.

Forms and Reference Materials

Loan Only Rental Development Application

If you have any questions about this program, please contact us.