There are an estimated 15,000 to 20,000 people in New Mexico who experience homelessness each year; there is a shortage of 32,000 low-income rental housing units; and there are more than 40,000 housing units across the state in need of rehabilitation, such as a functioning kitchen or adequate plumbing.
New Mexico’s urgent need for affordable housing has combined with a big jump in homelessness — an increase of 50% from 2022 to 2023, based on the federal point-in-time count, which is widely considered to be a low estimate.
All this was on the minds of New Mexico Mortgage Finance Authority (MFA) officials and some of their partners at a morning news conference
The MFA revealed the key findings from its annual housing needs report Wednesday and the consensus is that the state’s needs are great. Officials also outlined how $84.6 million in state funds would be used to address some of the most urgent needs in the coming years.
The MFA administers hundreds of millions of dollars each year among 40 programs that range from homeless services to homeownership. It includes new housing, down payment assistance and home rehabilitation. The agency works with hundreds of partner organizations that represent developers, realtors, landlords, nonprofits, for-profits, local governments and tribal governments. Twenty-five of its partners provide homeless services.
Edward Archuleta, the executive director of St. Elizabeth Shelters & Supportive Housing in Santa Fe, said the MFA awarded his organization $2 million to help jumpstart the purchase of the 122-unit Santa Fe Suites motel in 2020 to house those experiencing homelessness in the state’s capital.
“It’s been a great success. We’ve expanded to shelters and support for women and families and folks who are disabled and low income,” Archuleta said.
Archuleta said one of the first Santa Fe Suites residents was a woman named Patty, who’d experienced homelessness for many years and had serious mental health issues. He said she was known for shouting at passing cars on Cerrillos Road.
“Nobody wanted to help her,” Archuleta said. “I said, this is what we’re here for. We’re the ones that take on those who nobody wants.”
He said Patty died a couple of years after moving into her new apartment.
“But it really makes me happy that she didn’t die on the streets,” Archuleta said.
Key findings, funds
The 2024 needs assessment includes a variety of indicators that describe some of the state’s housing realities.
For example, the state’s median household income is $58,722, but 43.2% earn less than $50,000 annually. The median home sale price has skyrocketed: in 2018 it was $200,000 and in 2023 it ballooned to $353,000.
Renters also face daunting increases. The median monthly gross rent in 2022 was $966, an increase of 7.7% from 2021 and an increase of 16.7% from 2018. Almost 44% of renters and 28% of homeowners are cost-burdened, meaning households pay more than 30% of their income on housing costs.
MFA executive director and CEO Isidoro Hernandez said $50 million allocated in the last legislative session and $36.4 million from 2025 severance tax bond funding will be used to shore up some of the gaps.
He said the breakdown includes:
- $26.6 million to create more housing.
- $20 million for down payment assistance.
- $10 million to preserve existing affordable housing.
- $1 million to create stable housing environments.
- $27 million in reserve to use based on particular demands.
New brand: Housing New Mexico
Meanwhile, the MFA has been rebranded after almost 50 years in operation. Officials will now use the name Housing New Mexico — intended to better describe the agency and keep confusion to a minimum. The MFA is often mistaken for the New Mexico Finance Authority (NMFA), which was created by the Legislature in 1992 to finance infrastructure projects.
The NMMFA headquarters and its 128 employees are located at 344 Fourth St. SW in Downtown Albuquerque. The full housing needs assessment is available here. More information is at housingnm.org.
“When the New Mexico Mortgage Finance Authority was created by the state Legislature in 1975, its focus was mortgage assistance for low-income households,” Hernandez said. “We have grown into so much more as far as the programs and services we provide, and Housing New Mexico is more reflective of our diverse suite of services and makes a strong statement.”
Hernandez said while the rebrand doesn’t constitute a legal name change, he hopes the name and a new logo will help New Mexicans better understand the agency’s role.
“We are still the New Mexico Mortgage Finance Authority,” he said. “As the state’s housing authority, our vision is that all New Mexicans will have quality, affordable housing opportunities, and Housing New Mexico truly encompasses what we work toward every day.”