All affordable housing funds or housing assistance grants awarded under the Act are to be used by qualifying grantees for the benefit of persons of low- or moderate-income, subject to the provisions of the Act, and with particular regard to their housing-related needs.
(A) Single-family properties.
(1) Qualifying grantees shall agree that they shall maintain any single-family property which has been acquired, rehabilitated, weatherized, converted, leased, repaired or constructed, or which property has otherwise benefited from affordable housing funds, including, but not limited to, any loans which have been repaid with affordable housing funds and which loans previously were secured by such properties, as affordable housing for so long as any or all of the affordable housing funds which have been awarded, loaned or otherwise conveyed to the qualifying grantee are unpaid and outstanding or the affordability period, whichever is longer.
(2) If any single-family properties are to be rehabilitated, weatherized, converted, leased, repaired, constructed or otherwise are to benefit from affordable housing funds, and if the qualifying grantee intends to rent the single-family property out, those single-family properties shall be leased to persons of low- or moderate-income at the time of any such award. Grantees also shall agree that the persons of low- or moderate-income who are tenants of those apartments shall be allowed to remain tenants for so long as there are no uncured defaults by those tenants under their respective leases, which must be compliant to the state’s Uniform Owner–Resident Relations Act (NMSA §§ 47-8-1 through 47-8-52), and provided that there is no just cause (as outlined in NMSA § 47-8-33) for the landlord or landlady to terminate any lease agreement with those tenants.
(B) Multi-family properties.
(1) Regarding single apartments within a multi-family property, qualifying grantees shall agree that, if any single apartments are to be rehabilitated, weatherized, converted, leased, repaired, constructed or otherwise are to benefit from affordable housing funds, those apartments shall be leased to persons of low- or moderate-income at the time of any such award. Qualifying grantees who are the landlords or landladies and/or owners of such properties shall further agree to contribute at least 60% of the cost of the rehabilitation, weatherization, conversion, lease, repair and/or construction. Qualifying grantees also shall agree that the persons of low- or moderate-income who are tenants of those apartments shall be allowed to remain tenants for so long as there are no uncured defaults by those tenants under their respective leases, which must be compliant to the state’s Uniform Owner–Resident Relations Act (NMSA §§ 47-8-1 through 47-8-52), and provided that there is no just cause (as outlined in NMSA § 47-8-33 NMSA) for the landlord or landlady to terminate any lease agreement with those tenants.
(2) Regarding multiple apartments, qualifying grantees shall agree that if multiple apartments or an entire multi-family property are to be acquired, rehabilitated, weatherized, converted, leased, repaired, constructed or otherwise are to benefit from affordable housing funds, including, but not limited to, any loans which have been repaid with affordable housing funds, and which loans previously were secured by such properties, they shall maintain not less than 60% of the housing units as affordable housing for so long as any or all of the affordable housing funds which have been awarded, loaned or otherwise conveyed to the qualifying grantee are unpaid and outstanding or the affordability period, whichever is longer.
(C) Non-residential properties. Qualifying grantees shall agree that they shall maintain any non-residential property which has been acquired, rehabilitated, weatherized, converted, leased, repaired or constructed, or which property has otherwise benefitted from affordable housing funds, including, but not limited to, any loans which have been repaid with affordable housing funds, and which loans previously were secured by such properties, as a facility which provides housing related-services to persons of low- or moderate-income for so long as any or all of the affordable housing funds which have been awarded, loaned or otherwise conveyed to the qualifying grantee are unpaid and outstanding or the affordability period, whichever is longer.
(D) Housing assistance grant affordability requirements. Qualifying grantees shall agree that they shall maintain any land or buildings received as a housing assistance grant either as either single-family or multi-family affordable housing in accordance with divisions (A) or (B) above or as a facility which provides housing related-services to persons of low- or moderate-income in accordance with division (C) above (as applicable) for the duration of the affordability period. Qualifying grantees shall agree that they shall maintain any land or buildings for which they have received the costs of infrastructure as a housing assistance grant as either single-family or multi-family affordable housing or as a facility which provides housing related-services to persons of low- or moderate-income (as applicable) for the duration of the affordability period. In calculating the affordability period for housing assistance grants of either land or buildings, the fair market value of the land or buildings or the costs of infrastructure at the time of the donation by the city shall apply.
(E) Affordability period.
(1) The city, in its discretion, may increase the affordability period in any contracts, notes, mortgages, loan agreements, land use restriction agreements, restrictive covenant agreements and/or any other agreements which the city may enter into with any qualifying grantee or beneficiary of the affordable housing funds or of the housing assistance grant. (See the definition of “affordability period” in § 92.06.)
(2) Notwithstanding the foregoing, in the discretion of the MFA, weatherization funds conveyed from the state to the MFA and/or any other similar conveyances where an affordability period is not practical shall not be subject to the affordability period requirements of this section (E); but nevertheless, any such conveyances may be subject to recapture on some prorated basis as determined by the city and/or the MFA.
(Ord. 2023-002, passed 8-16-2023)