New Mexico Preservation Loan Fund

The New Mexico Preservation Loan Fund (NMPLF), administered by Housing New Mexico, is a dedicated financing program aimed at preserving existing affordable multifamily housing across the state. This initiative addresses the critical issue of affordable housing attrition by targeting properties at risk of exiting the affordable housing stock due to physical deterioration, affordability period expiration, or market-driven conversions. Housing New Mexico developed the NMPLF to offer a flexible and accessible funding solution where traditional financial avenues may fall short. The fund supports acquisition, rehabilitation, and predevelopment activities that extend the utility and affordability of multifamily housing assets throughout New Mexico. The NMPLF is composed of multiple program initiatives tailored to different preservation needs, including the Rehabilitation Initiative, the Acquisition Initiative, and the Housing Authority Initiative. These initiatives are designed to serve owners and developers seeking long-term, low-interest financing for necessary repairs or for acquiring at-risk properties with the intention of maintaining affordability. The fund also supports housing authorities in modernizing and preserving their existing public housing portfolios. Funding terms are generally structured with interest rates as low as 1% and loan terms aligned with required affordability periods, which can range from 20 to 40 years depending on the loan amount awarded. Terms are flexible and may include interest-only payments or alternative structures as needed. Applicants may include a wide variety of entities such as nonprofit and for-profit organizations, regional housing authorities, tribal governments and housing agencies, governmental instrumentalities, and other entities legally capable of entering into binding agreements with Housing New Mexico. Projects must be located within New Mexico and involve the preservation of existing multifamily affordable housing. The program accepts applications from all regions in the state, with an emphasis on equitable geographic distribution and a preference for projects in smaller or rural communities that may face challenges securing other funding. The NMPLF provides funding solely for the preservation of existing affordable housing properties and does not support new construction. Funding decisions are made by a scoring committee of Housing New Mexico staff based on a range of evaluation criteria, including the risk level of the property exiting the affordable stock, cost-effectiveness, readiness, sustainability, and proposed affordability period. Applications undergo a thorough underwriting process, and funding is limited by annual availability, with each award capped at $2,000,000. Applicants must complete a universal rental development application and include all documents listed on the associated application checklist. A $250 application fee and $6,000 design review fee are due upon submission. Once approved, Housing New Mexico staff will assist with the loan closing process, including documentation, legal compliance, and processing. All funded projects must maintain income and rent restrictions currently in place and will be required to comply with long-term affordability covenants. Loan servicing and compliance monitoring are conducted by Housing New Mexico’s internal departments. Annual reports will document the use and repayment of NMPLF funds and help ensure long-term program performance and adherence to affordable housing preservation goals. As of the latest policy update in May 2025, the NMPLF continues to be supported primarily through the New Mexico Housing Trust Fund Severance Tax Bond proceeds, with potential for additional future funding sources.

Commit to extended affordability periods beyond minimum to improve scoring; highlight underserved geography or severe physical risk for priority scoring; provide readiness details