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.
