3.20.030   Definitions.
   The following words and terms shall have the following meanings.
   "Act" shall mean the Affordable Housing Act, N.M.S.A. 1978, Section 6-27-1 et seq.
   "Affordable" shall mean consistent with minimum rent and/or income limitations set forth in the MFA Act, and in guidelines established by MFA.
   "Affordable housing" means residential housing primarily for persons or households of low or moderate income and whose monthly cost does not exceed 30% of household's gross monthly income.
   "Affordable housing funds" shall mean any or all funds awarded or to be awarded, loaned or otherwise distributed under the Act for payment of the costs of infrastructure for affordable housing under an affordable housing plan.
   "Affordable housing plan" or "Plan" shall mean a plan pursuant to an affordable housing program that contemplates one or more affordable housing projects, which may be developed in one or more phases.
   "Affordable housing program" or "Program" shall mean any programs the city and/or MFA establish pursuant to the Act or the plan.
   "Affordable housing project" or "Project" shall mean any work or undertaking, whether new construction, acquisition of existing residential housing, remodeling, improvement, rehabilitation or conversion, which may be undertaken in one or more phases, as part of an affordable housing plan, as approved by the city and/or MFA for the primary purposes as allowed by the Act.
   "Affordability period" shall mean:
      1.   If the fair market value of any housing assistance grant or the total amount of affordable housing funds that have been awarded, loaned, donated, or otherwise conveyed to the qualifying grantee is less than $15,000, then the affordability period shall be not less than five years.
      2.   If the fair market value of any housing assistance grant or the total amount of affordable housing funds is at least $15,000 but less than $40,000, then the affordability period shall be not less than ten years.
      3.   If the fair market value of any housing assistance grant or the total amount of affordable housing funds is at least $40,000 but less than $100,000, then the affordability period shall be not less than fifteen years.
      4.   If the fair market value of any housing assistance grant or the total amount of affordable housing funds is $100,000 or greater, then the affordability period shall be not less than twenty years.
   "Applicant" shall mean, subject to further qualifications in Section 3.20.050 C., an individual; a governmental housing agency; regional housing authority; a for-profit organization, including a corporation, limited liability company, partnership, joint venture, syndicate or association or a nonprofit organization meeting the appropriate criteria of the city and/or MFA.
   "Application" shall mean an application to participate in one or more affordable housing programs or affordable housing plans under the Act submitted by an applicant to the city and/or MFA.
   "Builder" shall mean an individual or entity licensed as a general contractor to construct residential housing in the state that satisfies the requirements of a qualifying grantee and has been approved by the city and/or MFA to participate in an affordable housing program. The term shall also include an individual or entity that satisfies the requirements of a qualifying grantee and has been approved by the city and/or MFA to participate in an affordable housing program, who is not licensed as a general contractor in the state, provided such individual or entity contracts with a general contractor licensed in the state to construct residential housing.
   "Building" shall mean a structure capable of being renovated or converted into affordable housing or a structure that is to be demolished and is located on land donated for use in connection with an affordable housing project.
   "City" shall mean Lovington, New Mexico, a unit of local government under the Constitution and laws of the State of New Mexico.
   "Congregate housing facility" shall mean residential housing designed for occupancy by more than four persons of low or moderate income living independently of each other. The facility may contain group dining, recreational, health care or other communal living facilities and each unit in a congregate housing facility shall contain at least its own living, sleeping, and bathing facilities.
   "Federal government" shall mean the United States of America and any agency or instrumentality corporate or otherwise of the United States of America.
   "Household" shall mean one or more persons occupying a housing unit.
   "Housing assistance grant" means the donation, provision, or payment by the city or MFA of:
      1.   Land upon which the affordable housing will be constructed;
      2.   An existing building that will be renovated, converted, or demolished and reconstructed as affordable housing;
      3.   The costs of acquisition, development, construction, financing, and operating or owning affordable housing; or
      4.   The costs of financing or infrastructure necessary to support affordable housing.
   "HUD" shall mean the United States Department of Housing and Urban Development.
   "Infrastructure Improvement" includes, but is not limited to:
      1.   Sanitary sewage systems, including collection, transport, storage, treatment, dispersal, effluent use and discharge;
      2.   Drainage and flood control systems, including collection, transport, diversion, storage, detention, retention, dispersal, use and discharge;
      3.   Water systems for domestic purposes, including production, collection, storage, treatment, transport, delivery, connection and dispersal;
      4.   Areas for motor vehicle use for road access, ingress, egress and parking;
      5.   Trails and areas for pedestrian, equestrian, bicycle or other non-motor vehicle use for access, ingress, egress and parking;
      6.   Parks, recreational facilities and open space areas for the use of residents for entertainment, assembly and recreation;
      7.   Landscaping, including earthworks, structures, plants, trees and related water delivery systems;
      8.   Electrical transmission and distribution facilities;
      9.   Natural gas distribution facilities;
      10.   Lighting systems;
      11.   Cable or other telecommunications lines and related equipment;
      12.   Traffic control systems and devices including signals, controls, markings and signs;
      13.   Inspection, construction management and related costs in connection with the furnishing of the items listed in this definition.
   "Infrastructure purpose" shall mean:
      1.   Planning, design engineering, construction, acquisition or installation of infrastructure, including the costs of applications, impact fees and other fees, permits and approvals related to the construction, acquisition or installation of the infrastructure, provided the city may determine it appropriate to reduce or waive building permit fees, sewer and water hookup fees and other fees with respect to an affordable housing project for which affordable housing funds and/or housing assistance grants are awarded, loaned, donated or otherwise distributed under the Act;
      2.   Acquiring, converting, renovating or improving existing facilities for infrastructure, including facilities owned, leased or installed by the owner;
      3.   Acquiring interests in real property or water rights for infrastructure, including interests of the owner; and
      4.   Incurring expenses incident to and reasonably necessary to carry out the purposes specified in this definition.
   "MFA" shall mean the New Mexico Mortgage Finance Authority.
   "MFA Act" shall mean the Mortgage Finance Authority Act, enacted as Chapter 303 of the Laws of 1975 of the State of New Mexico, as amended (N.M.S.A. 1978, Sections 58-18-1 through 58-18-27).
   "Mortgage" shall mean a mortgage, mortgage deed, deed of trust or other instrument creating a lien, subject only to title exceptions as may be acceptable to the city and/or MFA, on a fee interest in real property located within the state or on a leasehold interest that has a remaining term at the time of computation that exceeds or is renewable at the option of the lessee until after the maturity day of the mortgage loan.
   "Mortgage lender" shall mean any bank or trust company, mortgage company, mortgage banker, national banking association, savings bank, savings and loan association, credit union, building and loan association and any other lending institution; provided that the mortgage lender maintains an office in the state, is authorized to make mortgage loans in the state and is approved by the city and/or MFA and either the Federal Housing Authority, Veterans' Affairs, Federal National Mortgage Association ("Fannie Mae"), or Federal Home Loan Mortgage Corporation ("Freddie Mac").
   "Mortgage loan" shall mean a financial obligation secured by a mortgage, including a mortgage loan for a project.
   "Multiple family housing project" shall mean residential housing that is designed for occupancy by more than four persons or families living independently of each other or living in a congregate housing facility, at least sixty percent of whom are persons of low or moderate income, including without limitation persons of low or moderate income who are elderly and handicapped as determined by the city and/or MFA, provided that the percentage of low-income persons and families shall be at least the minimum, if any, required by federal tax law.
   "Multi-family housing program" shall mean a program involving a congregate housing facility, a multiple family housing project or a transitional housing facility.
   "Persons of low or moderate income" shall mean persons and families within Lovington who earn up to one hundred twenty percent of the area median income. For purposes of this definition, the
word "families" shall mean a group of persons consisting of, but not limited to, the head of a household; his or her spouse, if any; and children, if any, who are allowable as personal exemptions for federal income tax purposes.
   "Ordinance" shall mean this Ordinance No. 506.
   "Policies and procedures" shall mean policies and procedures of MFA, including but not limited to, mortgage loan purchasing, selling, servicing and reservation procedures, which MFA may update and revise from time to time MFA deems appropriate.
   "Public service agencies" shall include, but are not limited to, any entities that support affordable housing and which believe that the program or project proposed by the applicant is worthy and advisable, but which are not involved, either directly or indirectly, in the affordable housing program or project for which the applicant is applying.
   "Qualifying grantee" means:
      1.   An individual who is qualified to receive assistance pursuant to the Act and is approved by the city; and
      2.   A governmental housing agency, regional housing authority, corporation, limited liability company, partnership, joint venture, syndicate, association or a nonprofit organization that:
         a.   Is organized under state or local laws and can provide proof of such organization;
         b.   If a nonprofit organization, has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; and
         c.   Is approved by the city.
   "Recertification" shall mean the recertification of applicants and/or qualifying grantees participating in any affordable housing programs or in any programs under the Act as determined necessary from time to time by the city and/or MFA.
   "Rehabilitation" shall mean the substantial renovation or reconstruction of an existing single-family residence or a multi-family housing project, which complies with requirements established by MFA. Rehabilitation shall not include routine or ordinary repairs, improvements or maintenance, such as interior decorating, remodeling or exterior painting, except in conjunction with other substantial renovation or reconstruction.
   "Residential housing" shall mean any building, structure or portion thereof that is primarily occupied, or designed or intended primarily for occupancy, as a residence by one or more households and any real property that is offered for
sale or lease for the construction or location thereon of such a building, structure or portion thereof. "Residential housing" includes congregate housing, manufactured homes and housing intended to provide or providing transitional or temporary housing for homeless persons.
   "Residential use" shall mean that the structure or the portion of the structure to benefit from the affordable housing funds or housing assistance grant, is designed primarily for use as the principal residence of the occupant or occupants and shall exclude vacation or recreational homes.
   "RFP" shall mean any request for proposal made by the city.
   "Rules" shall mean the New Mexico Finance Authority Affordable Housing Rules adopted pursuant to N.M.S.A.1978, Section 6-27-8(B), as amended.
   "State" shall mean the State of New Mexico.
   'Transitional housing facility" shall mean residential housing that is designed for temporary or transitional occupancy by persons of low or moderate income or special needs. (Ord. 506, 2013)