Developers Information

Housing New Mexico’s Housing Development Department provides funding for developers who are creating or rehabilitating rental and for-sale homes for households with low incomes. Our primary funding method is through the allocation of federal and state tax credits. We also offer several below- market rate loan programs that are often used in conjunction with tax credits. We appreciate inquires and prefer to discuss projects with developers prior to application in order to determine which programs would work best for a given project. Please send us an email through the “contact us” link on the right side of this page or call (505) 843-6880.

Notice of Volume Cap Limitations

In December 2024, the New Mexico State Board of Finance designated $200,000,000 in private activity bond volume cap for multifamily affordable housing projects. To date, $154,600,000 of this volume cap has been allocated.

Pursuant to Section E of the Qualified Allocation Plan – Project Selection Criteria to Implement Housing Priorities, Housing New Mexico/MFA will prioritize projects based on their readiness to begin construction when there is insufficient private activity bond volume cap.

Project Prioritization Process:

• If the private activity bond volume cap is insufficient to finance all tax-exempt bond projects during the January-June or July-November periods, Housing New Mexico/MFA, at its sole discretion, will prioritize projects which demonstrate a greater capacity to commence construction earlier.
• Projects which have submitted permit-ready drawings (i.e., construction plans) and specifications to the local jurisdiction for approval will also receive priority.
• For projects exceeding the available private activity bond volume cap, Housing New Mexico/MFA will issue a draft 42(m) letter only after the prioritized projects have received an allocation of volume cap.

Definition of Insufficient Private Activity Bond Volume Cap:

Insufficient private activity bond volume cap occurs when Housing New Mexico/MFA receives feasible applications requesting private activity bonds in amounts that exceed the available allocation of volume cap. In such cases, Housing New Mexico/MFA prioritizes projects based on their ability to start construction promptly, following the same criteria outlined above.

Such prioritization ensures that projects demonstrating greater preparedness will receive their request(s) and that the allocation of this limited resource for multifamily affordable housing developments remains efficient.