This chapter is adopted to implement Lovington's affordable housing program. In accordance with New Mexico Constitution Article IX, Section 14, the Affordable Housing Act, N.M.S.A. 1978, Section 6-27-1 et seq. (the "Act") and New Mexico Mortgage Finance Authority Act Rules, the purpose of the Lovington Affordable Housing Ordinance is to:
A. Establish procedures to ensure that both state and local housing assistance grantees are qualifying grantees who meet the requirements of the Act and the Rules promulgated pursuant to the Act both at the time of the award and throughout the term of any grant or loan under the program;
B. Establish an application and award timetable for state housing assistance grants or loans to permit the selection of the qualifying grantee(s) by the city;
C. Create an evaluation process to determine:
1. The financial and management stability of the applicant;
2. The demonstrated commitment of the applicant to the community;
3. A cost-benefit analysis of the project proposed by the applicant;
4. The benefits to the community of a proposed project;
5. The type or amount of assistance to be provided;
6. The scope of the affordable housing project;
7. Any substantive or matching contribution by the applicant to the proposed project;
8. A performance schedule for the qualifying grantee with performance criteria; and
9. Any other rules or procedures the city believes are necessary for a full review and evaluation of the applicant and the application or which MFA believes is necessary for a full review of the city's evaluation of the applicant.
D. Require long-term affordability of Lovington's affordable housing projects so that a project cannot be sold shortly after completion and taken out of the affordable housing market to ensure a quick profit for the qualifying grantee;
E. Require that the city enter into a contract with the qualifying grantee consistent with the Act, which contract shall include remedies and default provisions in the event of the unsatisfactory performance by the qualifying grantee and which contract shall be subject to the review of MFA in its discretion;
F. Require that a grant or loan for a project must impose a contractual obligation on the qualifying grantee that the affordable housing units in any project be occupied by persons of low or moderate income;
G. Provide for adequate security against the loss of public funds or property in the event that the qualifying grantee abandons or otherwise fails to complete the project;
H. Require review and approval of a housing grant project budget by the city and/or MFA before any expenditure of grant funds or transfer of granted property;
I. Require that a condition of grant or loan approval be proof of compliance with all applicable state and local laws, rules and ordinances;
J. Provide definitions for "low-income and moderate-income" and setting out requirements for verification of income levels;
K. Provide the city with a valid affordable housing program; and
L. Require that the city have an existing valid affordable housing plan or housing elements contained in this plan are met prior to making or authorizing a housing assistance grant. (Ord. 506, 2013)