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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 $2,000,000)
Long term amortizing: up to 30 years (current maximum: $1,000,000)

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.


New Mexico Housing Trust Fund (NMHTF) 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 contact the NMHTF Program Manager (see tab at bottom of 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.

New Mexico Housing Trust Fund and 9 Percent LIHTC

If applicants plan to request NMHTF funds when applying for Low Income Housing Tax Credits (LIHTC) in the 9 percent annual competitive round, they must do so as part of their LIHTC application (see LIHTC application package for details). If a project receives a preliminary LIHTC award notification, the applicant must submit the required fee(s) within five business days of receipt of said notification. These NMHTF applications are considered as part of the February 15 application round.

New Mexico Housing Trust Fund and 4 Percent LIHTC

When applying for New Mexico 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

Universal Rental Development Application (Updated)

Universal Multifamily Initial Underwriting Supplement (Updated 3/30/2021)

2021 Design Standards Clean

2021 Design Standards Redlined

Waiver Procedure for Design Standards

Info for Scoring Criterion #2

Notice of Funding Availability (NOFA)

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

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New Mexico Housing Trust Fund Program Contact

Contact the New Mexico Housing Trust Fund Program Manager

link to more info >