NMSA 1978, § 7-27-49 — 7-27-49

Authorization for severance tax bonds; New Mexico
mortgage finance authority; New Mexico housing trust fund.

# A.

After the annual estimate of severance tax bonding capacity is made pursuant to
Subsection B of Section 7-27-10.1 NMSA 1978, the board of finance division of the
department of finance and administration shall allocate two and one-half percent of the
estimated bonding capacity for the New Mexico housing trust fund for the purposes of
carrying out the provisions of the New Mexico Housing Trust Fund Act [58-18C-1 to 58-
18C-9 NMSA 1978].

# B.

The legislature authorizes the state board of finance to issue severance tax
bonds in the amount allocated pursuant to this section for use by the New Mexico
mortgage finance authority to fund the New Mexico housing trust fund for the purposes
of carrying out the provisions of the New Mexico Housing Trust Fund Act. The New
Mexico mortgage finance authority shall certify to the state board of finance the need for
issuance of bonds. The state board of finance may issue and sell the bonds in the
same manner as other severance tax bonds in an amount not to exceed the authorized
amount provided for in this section. If necessary, the state board of finance shall take
the appropriate steps to comply with the federal Internal Revenue Code of 1986, as that
code may be amended or renumbered. Proceeds from the sale of the bonds are
appropriated to the New Mexico housing trust fund for the purposes certified by the New
Mexico mortgage finance authority to the state board of finance.

# C.

Money from the severance tax bonds provided for in this section shall not be
used to pay indirect project costs. Any unexpended balance from proceeds of
severance tax bonds issued for projects pursuant to the New Mexico Housing Trust
Fund Act shall revert to the severance tax bonding fund within one year of completion of
the project. Any unencumbered balance from the proceeds of severance tax bonds
issued pursuant to this section after three years from the issuance of those bonds shall
revert to the severance tax bonding fund. The New Mexico mortgage finance authority
shall monitor and ensure proper reversions of the bond proceeds appropriated for the
projects.