Proposal would route excess revenues to first-time homebuyer loans

The Mortgage Finance Authority would provide zero-interest loans for up to 20% of a home's purchase price. The buyer's household income must be below 400% of the federal poverty level, and the New Mexico home must be the buyer's first home. Loans would depend on money being available in the fund. The loan would be secured by a 30-year mortgage, and the authority could foreclose if the buyer defaults. If the buyer sells the home before 30 years, the remaining loan balance would be due immediately.

The proposal would direct certain excess state revenues to the loan fund. The distributions would use specified excess oil and gas emergency school tax receipts and federal mineral leasing receipts. For oil and gas tax revenue, the state would first transfer enough to bring reserves to 25% of recurring general fund appropriations; only remaining excess would go to the loan fund. Federal mineral leasing revenue would go to the fund only when yearly receipts exceed the average for the previous five fiscal years. Oil and gas tax revenue would be calculated at each fiscal year's end. Federal mineral leasing revenue would be checked by June 30 each fiscal year.