This Act creates the Land Title Trust Fund (the “Fund”). The Act provides that certain title company escrow funds may be placed in interest-earning accounts; the interest earned is to be remitted to the Fund . The Fund will be used to finance loans or grants that will provide housing for low-income persons (household income not more than 80% of median), and other uses as shown below .
(Note- real estate brokers,and escrow closing agents subject to the Low Income Housing Trust Act may also place escrow funds in interest-earning accounts as described below.)
The Mechanics:
Title company, real estate broker or escrow closing agent:
Places escrow funds in special interest-earning accounts.
Financial institution:
Remits the interest from these special accounts to the Fund at least quarterly, pursuant to MFA rules (or, title company may choose to remit)
Trustee (MFA):
Oversees the deposits, investments and disbursements of the Fund pursuant to the Act and the rules.
Advisory Committee:
Reviews applications and recommends projects for funding by the Trustee.
Committee has 7 members , including:
Chair of the MFA (or Chair's designee), who is Chair of the Committee;
Two appointed by the Governor (title industry);
Two appointed by the Pres. Pro Tem of the Senate (banking, real estate)
Two appointed by the Speaker of the House (mortgage lending, real estate)
MFA Legislative Oversight Committee:
Oversees the Advisory Committee.
Use of Money:
Eligible activities:
Loans or grants to eligible organizations to provide housing for low-income persons;
Funds to provide scholarships for New Mexico high school graduates/GED recipients at NM public post-secondary institutions under a program to be administered by a nonprofit statewide land title association.
Eligible organizations:
501(c)(3) nonprofits whose primary purpose is to provide affordable housing;
Unit of state or local government dealing with housing;
Local or regional housing authority or a tribal agency dealing with housing.
FUNDS ANNUAL USE:
Administration - up to 5% annually
Investment - at least 20% annually must be invested in a permanent capital fund;
Allocation to housing - at least 50% annually must be allocated to eligible organizations to make housing more accessible to low-income persons;
Allocation to scholarships - up to 10% annually
Clean-up allocation - remaining balance (could be from 0 to 20% annually) must be allocated to eligible organizations for other housing-related programs as approved by the Trustee.
Background
The LTTF Advisory Committee is responsible for making recommendations concerning the use of funds accumulating in the Land Title Trust Fund for affordable housing purposes. The process for standardizing and reviewing requests for funding is outlined below.
Application Rounds The LTTF will hold four quarterly application rounds each year, with decisions being made by the end of each quarter. The quarterly schedule will be as follows;
Date
Activity
First day of first month in each Calendar Quarter by 12 Noon. (Jan.1, April 1, July 1, October 1)
Subsequent meeting of LTTF Advisory Committee.
No Later Than Last day of Calendar Quarter (March 31, June 30, September 30, December 31)
Applications are Due
Staff Review and Recommendation or Rejection
Recommendation of Approval/Disapproval of Funding Request to Board
MFA Board Review and Final Approval or Rejection of Request
Forms All funding requests must be submitted
to the LTTF on its standardized application form. An exhibits checklist will also
be provided to ensure that applications are complete.
Process When applications are received, they will be reviewed by staff for completeness and scoring. If acceptable they will be passed on to the LTTF Advisory Committee members for review in their subsequent meeting (unless the meeting is scheduled within two weeks after the submission date, in which case staff may choose to submit the request to the second subsequent meeting date). If applications are not complete, or if they are otherwise unacceptable, they will be returned to the Applicant for completion or with a rejection notice.
The LTTF Advisory Committee will meet at least once every quarter to review applications and prepare recommendations for the MFA Board of Directors. This must occur no later than the first day of the last month in the quarter, in time for recommendations to be acted upon by the Board no later than the end of the quarter in which the application is received. A scoring system has been developed. A minimum score of 75 points must be achieved for a project to be funded; however, under certain circumstances not all applications achieving at least 75 points may be funded, for example, if available funds are insufficient.
