HOME Rental Loan Program

The Program

MFA's HOME/Rental

MFA's HOME rental programs are designed to provide gap financing for a variety of affordable and special needs housing projects throughout the state of New Mexico. As gap financing, HOME funds are typically the last dollars committed to a project and are used in combination with other housing resources such as MFA's Tax Credit and 542(c) loan programs. The HOME/Rental programs described herein provide assistance in the form of junior mortgages with below-market interest rates, extended maturity dates, and other advantageous loan terms tailored to the particular needs of individual projects. Loan amounts and specific terms are determined on the basis of the projects' cash flow and affordability, among other considerations. HOME funds are structured as loans, which may be forgivable if extremely low income individuals or families are served. Use restrictions are established and monitored by MFA for all HOME/Rental projects, and various other federal requirements must be met in order to use HOME funding. These include, among others, completion of HUD's environmental review process and use of Davis Bacon wage rates in some cases.

HOME/Tax Credits

MFA's HOME funds can be awarded as gap financing for projects that qualify for the Housing Tax Credit program. The maximum amount is $20,000 per unit with a maximum of $600,000 per project. These projects must meet all of the requirements set forth in the Tax Credit Qualified Allocation Plan, and score high enough relative to other projects to receive a Tax Credit allocation. HOME awards are made on the basis of highest level of affordability and tax credit scoring until all HOME dollars allocated for this purpose are awarded. Underwriting criteria used to determine principal and payment amounts are determined according to Tax Credit program standards. These allocations are available to nonprofit, for-profit, tribal and public agency developers who apply during the Tax Credit application period (typically on or about February 1st of each year).

HOME/Rental Incentives

HOME/Rental Incentive funds may be awarded to projects using 4% Tax Credits that have received an allocation of privateactivity bond volume cap from the State Board of Finance, or to projects with first mortgage financing derived from either 501(c)(3) bonds or other sources approved by MFA. Funding for these projects is available on a first-come, first-served basis throughout the year until allocations are exhausted, in amounts not to exceed the lesser of $40,000 per unit, $800,000 per project, or 80% of the total development cost. Projects are subject to cost limitations and underwriting procedures similar to those applied to Tax Credit projects. Note: MFA's HOME funds cannot be awarded to projects in Albuquerque or Las Cruces. Native American trust land projects are eligible.

Forms and Reference Materials

Program Contact

Daniel Puccetti
Program Manager, Housing Development
Main: (505) 843-6880
Direct: (505) 767-2251
Toll free in New Mexico: (800) 444-6880

If you already have a HOME Rental Award and need guidance, go to the Home Rental Setups page or contact Debbie Davis at (505) 843-6880 (Main) or (505) 767-2221 (Direct).