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Rental Development

New Mexico Housing Trust Fund


Provide flexible funding for housing initiatives that will provide affordable housing primarily for persons or households of low or moderate income.

Eligible Borrowers

Nonprofit organizations, for-profit organizations, governmental housing agencies, regional housing authorities, governmental entities, governmental instrumentalities, tribal governments, tribal housing agencies and other entities as outlined in the Notice of Funding Availability (NOFA).

Eligible Projects

Costs of infrastructure, construction, acquisition and rehabilitation necessary to support affordable single family or rental housing as outlined in the NOFA.

Secondary Financing

MFA mortgage may be in first or junior lien position on the property.

Interest Rates

Approximately 1 percent to 5 percent per annum.

Loan Term & Amount

Construction: up to three years (current maximum $1,500,000)
Long term amortizing: up to 30 years (current maximum: $500,000)

Exceptions in the amounts may be considered at staff discretion if applicant can demonstrate need and for projects serving the lowest income levels.

Affordability Requirements

Rental: Households earning 60 percent or less of area median income (AMI.)

Single family residences: Households earning 80 percent or less of AMI.
(See NOFA for exceptions, which can include workforce and special needs housing.)


A guaranty will be required from a financially responsible entity acceptable to MFA if funds are to be used during construction. If the proposed borrower has sufficient financial depth, a guaranty may not be required. See checklist for required information.


HOME and Housing Trust Fund loans may be subordinated to first lien position loans but are still considered "hard debt" and not subject to available cash flow for repayment. For certain HUD guaranteed loans such as 221(d)4, HUD requires that subordinate lenders sign its cash flow-only subordination agreement (form HUD-92420M). MFA will consider signing on a case-by-case basis if certain criteria are met. Please call the program contact listed on the tab at the bottom of this page to discuss.

Application Due Dates

Completed applications must be received and date-stamped at MFA's office in Albuquerque no later than 5 PM on February 15, May 31 and September 30, unless changed by staff and posted here. If the application deadline occurs on a weekend or holiday, the deadline will be extended to the next working day. Rounds will only be held if funds are available.

Housing Trust Fund and 9 Percent LIHTC

If applicants plan to request other MFA funding sources such as HOME or Housing Trust Fund when applying for Low Income Housing Tax Credits (LIHTC) in the 9 percent annual competitive round, they should be included as sources in Schedule A-1 of the Rental Development Project Application. If a project receives a preliminary LIHTC award notification in April, the applicant should submit complete application(s) for those MFA sources within five business days along with required fee(s). Applicants must use the same underwriting schedules submitted for LIHTC and may include photocopies of any relevant documents already submitted for LIHTC. If a project later moves up on the wait list and receives a LIHTC award notice, the applicant has five business days from date of notification to submit. HTF applications are considered as part of the January 31 LIHTC round.

Housing Trust Fund and 4 Percent LIHTC

When applying for Housing Trust Fund and 4 percent tax credits, applicants must apply simultaneously using the same application, schedules, etc. Because such projects are not financially feasible without tax credits, MFA will not review a Housing Trust Fund application without the 4 percent LIHTC application.

Forms and Reference Materials




Loan & Grant Omnibus Signature Page & Applicant Certification

Rental Loan Architect's Certification (checklist item 15)

Info for Scoring Criterion #2

Notice of Funding Availability (NOFA)

2017 Rental Design Standards

2018 Rental Design Standards

Comparison of 2017 and 2018 Design Standards

Housing Trust Fund Act SB 115

Housing Trust Fund Act Rules

Charitable Trust

Save 50 percent on your state taxes when you make a donation to affordable housing construction

link to more info >
New Mexico Housing Trust Fund Program Contact

Contact the New Mexico Housing Trust Fund Program Manager

link to more info >