NEW MEXICO MORTGAGE FINANCE AUTHORITY Board Meeting … · 2018. 6. 13. · NEW MEXICO MORTGAGE...

NEW MEXICO MORTGAGE FINANCE AUTHORITY

Board Meeting 344 4th St. SW, Albuquerque, NM

Wednesday, June 13, 2018 at 9:30 a.m.

Agenda Chair Convenes Meeting Roll Call (Jay Czar) Approval of Agenda – Board Action Approval of May 16, 2018 Board Meeting Minutes – Board Action Employee Introductions: Keith Flynn (Monica Abeita), Nolan Menapace (René Acuña) Recognition: David Schmidt

Board Action Items Action Required? Finance Committee 1 Single Family Mortgage Revenue Bond Loan Compliance Internal Audit (Cait Gutierrez, REDW) YES 2 Vendor and Compliance Management Systems Including Sub-Servicing Oversight Internal Audit (Jessica

Bundy, REDW) YES 3 Capital Magnet Fund Program Policy (René Acuña) YES 4 State of New Mexico Infrastructure Capital Improvements Plan (Monica Abeita) YES 5 HUD Allocations (HOME & N-HTF (National Housing Trust Fund) (Izzy Hernandez) YES

Allocation Review Committee 6 Proposed 2018 Low Income Housing Tax Credit (“LIHTC”) Awards (Susan Biernacki) YES

Contracted Services/Credit Committee & Housing Trust Fund Committee 7 Low Income Housing Tax Credit (LIHTC) Gap Financing Loan Requests (George Maestas, Sharlynn

Rosales & Tanya Birks) YES (Note: at the request of any Board Member, any of the three projects listed below may be removed from

this combined agenda item and discussed and voted upon separately)

a. Valle Verde I – NMHTF and Primero Loan Requests (George Maestas) b. Parkside Place – HOME and NHTF Loan Requests (Sharlynn Rosales)

c. Nuevo Atrisco – HOME, NMHTF, and NHTF Loan Requests (Tanya Birks)

8 Limited Source Procurement for 2018-2019 Continuum of Care Performance (CoC) Award (Natalie Michelback) YES

9 Approval of 2018/2019 Housing Opportunities for Persons With AIDS (HOPWA)Service Providers and Awards (Natalie Michelback) YES

10 Approval of the 2018/2019 NM Energy$mart Service Providers (Amy Gutierrez) YES 11 2018/2019 Linkages Award Recommendation (Shannon Tilseth) YES

Other 12 Election of Officers (Chair Burt) YES 13 Quarterly Single Family Production Report (René Acuña) NO

Other Board Items Information Only 14 (Staff is available for questions)

Staff Action Requiring Notice to Board 2018 Series B Single Family Bond Pricing Summary

Monthly Reports No Action Required 15 (Staff is available for questions)

MFA Board Agenda June 13, 2018

Page 2 of 2

4/30/18 Financial Statements Communications Department Reports

Announcements and Adjournment Discussion Only Confirmation of Upcoming Board Meetings July 18, 2018 – Wednesday,9:30 a.m. (MFA) August 15, 2018 - Wednesday – 9:30 a.m. (Albuquerque – Location TBD) August 15-16, 2018 - Board Retreat Wednesday - Thursday (Albuquerque – Location TBD) September 19, 2018 – Wednesday – 9:30 a.m. (Albuquerque – MFA) October 17, 2018 – Wednesday – 9:30 a.m. (Albuquerque – MFA)


Board Meeting 344 4th St. SW, Albuquerque, NM

Wednesday, June 13, 2018 at 9:30 a.m.

Agenda Chair Convenes Meeting Roll Call (Jay Czar) Approval of Agenda – Board Action Approval of May 16, 2018 Board Meeting Minutes – Board Action Employee Introductions: Keith Flynn (Monica Abeita), Nolan Menapace (René Acuña) Recognition: David Schmidt

Board Action Items Action Required? Finance Committee 1 Single Family Mortgage Revenue Bond Loan Compliance Internal Audit (Cait Gutierrez, REDW) - REDW will

present the Single Family Mortgage Review Bond Internal Audit for Board approval. YES

2 Vendor and Compliance Management Systems Including Sub-Servicing Oversight Internal Audit (Jessica Bundy, REDW) - REDW will present the Vendor and Compliance Management Systems including Subservicing Oversight Internal Audit for Board approval. YES

3 Capital Magnet Fund Program Policy (René Acuña) - The U.S. Treasury’s Community Development Financial Institutions Fund (CDFI) recently awarded $3.6MM to MFA from the Capital Magnet Fund (CMF) to support a down payment assistance program for low income homebuyers. Staff recommends approval and implementation of the CMF Down Payment Assistance program policy. The program will expand homeownership opportunities throughout the state. YES

4 State of New Mexico Infrastructure Capital Improvements Plan (Monica Abeita) - Each year, the New Mexico Department of Finance and Administration (DFA) requests that state agencies, local governments, tribal governments, special districts and senior citizen facilities submit Infrastructure Capital Improvement Plans (ICIPs) for priority capital projects for which they will seek state funding in the next five years. MFA has submitted ICIPs through this process for the last three years. No funding has been received to date. MFA is recommending that a new ICIP be submitted for the FY 2020-2024 ICIP for the following projects, which have been requested in previous years: Priority 1: New Mexico Housing Trust Fund - $5 million each year for 2020-2024, Priority 2: Weatherization/Energy-Efficiency - $2 million each year for 2020-2024. YES

5 HUD Allocations (HOME & N-HTF (National Housing Trust Fund) (Izzy Hernandez) - Allocation of $9,000,000 of National Housing Trust Fund (N-HTF) and $8,021,768 of HUD HOME funds to the activities as identified in the N-HTF Table and 2018 HOME Allocation sheet (available in the board packet). YES

Allocation Review Committee 6 Proposed 2018 Low Income Housing Tax Credit (“LIHTC”) Awards (Susan Biernacki) - Staff and the ARC

recommend approval of the following, all in accordance with ARC recommendations: Approval of the following three (3) top ranking rehabilitation and top three (3) new construction projects, as follows: Villa Consuelo, rehabilitation, Santa Fe; Parkside Place, rehabilitation, Carlsbad; Valle Verde, rehabilitation, Placitas (Hatch); 4) Canyon Walk, new construction, Los Alamos; Herdner 80, new construction, Taos; Nuevo Atrisco, new construction, Albuquerque totaling $5,607,266. Approval of a forward allocation of 2019 tax credits in the amount of $1,259,545 so that Herdner 80, Nuevo Atrisco and Valle Verde I may be fully funded. Approval of five (5) projects, as described in Table 7B (available in the board packet), for the waitlist. YES

Contracted Services/Credit Committee & Housing Trust Fund Committee 7 Low Income Housing Tax Credit (LIHTC) Gap Financing Loan Requests (George Maestas, Sharlynn

Rosales & Tanya Birks) YES

MFA Board Agenda June 13, 2018 Page 2

Page 2 of 3

(Note: at the request of any Board Member, any of the three projects listed below may be removed from this combined agenda item and discussed and voted upon separately)

a. Valle Verde I – NMHTF and Primero Loan Requests (George Maestas) - Valle Verde I – New Mexico

Housing Trust Fund and Primero Investment Fund loan requests (George Maestas) – Staff recommends approval of a $1,500,000 New Mexico Housing Trust Fund loan and a $1,000,000 Primero Investment Fund loan for Valle Verde I Apartments, a 36-unit acquisition/rehabilitation project in Placitas, NM.

b. Parkside Place – HOME and NHTF Loan Requests (Sharlynn Rosales) - Parkside Place – HOME and National Housing Trust Fund loan requests (Sharlynn Rosales) – Staff recommends approval of a $400,000 HOME loan and a $1,275,000 National Housing Trust Fund loan for Parkside Place, an 80-unit acquisition/rehabilitation project in Carlsbad, NM.

c. Nuevo Atrisco – HOME, NMHTF, and NHTF Loan Requests (Tanya Birks) - HOME, New Mexico Housing Trust Fund and National Housing Trust Fund loan requests (Tanya Birks) - Staff recommends approval of a $600,000 HOME loan, a $1,000,000 New Mexico Housing Trust Fund loan, and a $1,275,000 National Housing Trust Fund loan for Nuevo Atrisco, an 80-unit new construction project in Albuquerque, NM.

8 Limited Source Procurement for 2018-2019 Continuum of Care Performance (CoC) Award (Natalie Michelback) - The Continuum of Care (COC) performance awards were established to provide support to agencies statewide that offer homeless prevention and supportive services through this limited source procurement. This year’s total HUD Continuum of Care funding for the Albuquerque and Balance of State service providers is $10,728,359. Twenty Six (26) agencies were eligible for the MFA COC award. Staff is requesting approval of Twenty Six (26) awards in the total amount of $458,174 for the Continuum of Care (COC) program. Upon PC approval, award notifications will be mailed. Final award letters will be sent upon approval of contracted services and MFA Board of Directors. YES

9 Approval of 2018/2019 Housing Opportunities for Persons With AIDS (HOPWA)Service Providers and Awards (Natalie Michelback) - Staff recommends that the Board approve the following three service providers for the HOPWA funding of $783,979.22 and $24,246.78 of admin to MFA: Southwest Care Center (SWCC) for the Northern Region and the City of Albuquerque, El Camino Real Housing Authority (ECR) for the Southern Region I and Southwestern Regional Housing & Community Development Center (SWR) for the Southern Region II which would be Dona Ana County. YES

10 Approval of the 2018/2019 NM Energy$mart Service Providers (Amy Gutierrez) - Staff recommends that the Board approve Central NM Housing Corporation for Territory 1 (Northern Territory) and Southwestern Regional Housing and Community Development Corporation for Territory 2 (Southern Territory) as the service providers for the NM Energy$mart Program. Board approval would allow the selected Service Providers to receive a one year contract with the option of four additional annual renewals. YES

11 2018/2019 Linkages Award Recommendation (Shannon Tilseth) - Staff recommends approval to award Linkages Housing Administrators a total of $1,242,000.00 under Limited Source Procurement for program year 2018/2019. In addition, staff is requesting that the approval allow for two, one year extensions to the contract which would expire on June 30, 2021. Allocations for the upcoming 2018/2019 program year are based available funding and the amount needed by each Housing Administrator in order to maintain housing for all current participants on an on-going basis. Staff is recommending approval of the awards to the six existing housing administrators for the Linkages Program in the amount of $1,242,000.00 and $108,000.00 in MFA administrative fees. YES

Other 12 Election of Officers (Chair Burt) – as recommended by the Nominating Committee: Chair Burt, Lt. Governor

Sanchez and Attorney General Balderas. YES

13 Quarterly Single Family Production Report (René Acuña) – ongoing. NO Other Board Items Information Only 14 (Staff is available for questions)

Staff Action Requiring Notice to Board 2018 Series B Single Family Bond Pricing Summary

Monthly Reports No Action Required 15 (Staff is available for questions)

4/30/18 Financial Statements Communications Department Reports

Announcements and Adjournment Discussion Only Confirmation of Upcoming Board Meetings July 18, 2018 – Wednesday,9:30 a.m. (Albuquerque – MFA) August 15, 2018 - Wednesday – 9:30 a.m. (Albuquerque – Location TBD) August 15-16, 2018 - Board Retreat Wednesday - Thursday (Albuquerque – Location TBD) September 19, 2018 – Wednesday – 9:30 a.m. (Albuquerque – MFA) October 17, 2018 – Wednesday – 9:30 a.m. (Albuquerque – MFA)

Minutes


Board Meeting Minutes 344 4th St. SW, Albuquerque, NM

Wednesday, May 16, 2018 at 9:30 a.m.

Chair Burt convened the meeting on May 16, 2018 at 9:31 a.m. Secretary Czar called the roll. Members present: Chair Dennis Burt, Angel Reyes, Sally Malavé (designee for Attorney General Hector Balderas), Lieutenant Governor John Sanchez, Steven Smith and Randy McMillan (arrived during tab 1 at 9:35 a.m.). Absent: Treasurer Tim Eichenberg. Czar informed the Board that everyone had been informed about today’s meeting in accordance with the New Mexico Open Meetings Act. Approval of Agenda - Board Action. Motion to approve the May 16, 2018 Board agenda as presented: Malavé. Second: Reyes. Vote: 5-0. Approval of 4/18/18 April 18, 2018 Board Meeting Minutes – Board Action. Motion to approve the April 18, 2018 Board Meeting Minutes as presented: Smith. Second: Sanchez. Vote: 5-0. Approval of April 18, 2018 Board Study Session Minutes - REO (Real Estate Owned) Policy Review – Board Action. Motion to approve the April 18, 2018 Board Study Session Meeting Minutes as presented: Malavé. Second: Reyes. Vote: 5-0. Finance Committee 1 3/31/18 Quarterly Financial Statements (Gina Hickman). Hickman presented the Quarterly Financial Statements

packet behind tab one which will be included in the official board packet. Hickman began her presentation by reviewing the comparative March 31, 2018 year to date metrics and variances which included the following: Production, Balance Sheet, Income Statement, Moody’s Benchmarks and Servicing commenting that the September 30, 2018 financial forecast has been updated and incorporated into the report and more clearly reflects anticipated mortgage loan balances and production. Hickman noted tab 16 includes the Moody’s Investor Services Credit Opinion. Moody’s reaffirmed MFA’s Aa3/Stable issuer credit rating noting good profitability and a low risk profile. She further noted that the 2017 Series B bonds were issued; stating the advantage to the bonding execution is returning and providing a mortgage rate advantage that is attributing to MFA’s record mortgage production. Hickman then reviewed the monthly and quarterly graphs, the Housing Opportunity Fund report and the GASB31 changes in fair market value information. Motion to approve the March 31, 2018 Quarterly Financial Statements as presented: Sanchez. Second: Smith. Vote: 6-0.

2 3/31/18 Quarterly Investment Review (Kathy Keeler). Keeler presented the Quarterly Investment Review packet behind tab two which will be included in the official board packet. Keeler informed the Board the Ad Hoc Investment Committee met on April 24th. Kathy reviewed the committee’s outcomes during the course of her presentation which included the Mortgage Backed Security portfolio investment allocation, the objective of continuing to decrease overall liquidity, benchmarks and underperforming portfolios. Keeler reviewed the General Fund Investment Compliance Report, the Portfolio Summary-Short & Intermediate Term Investments, the Portfolio Summary-Long Term State Investment Council Investments, the Portfolio Summary-Housing Trust Fund and the General Fund Investment Portfolio Metrics highlighting the asset class balances and yields/rates of returns. Motion to approve the March 31, 2018 Quarterly Investment Review as presented: Smith. Second: Reyes. Vote: 6 - 0.

3 Policies and Procedures Manual Revisions (Theresa Laredo Garcia/Jeff Payne). Payne began by thanking the Board for the time spent in the study session following last month’s board meeting. He informed the Board that staff has re-evaluated and is recommending revisions to MFA’s Transaction Authorization and Real Estate Owned policies in the Policies and Procedures Manual. He reviewed the changes in the policy located behind tab three, which will be made a part of the official board packet. He explained that the changes recommended will streamline the disposition of REO properties and minimizes losses to MFA while providing more transparency to the Board related to credit risk and loss exposure. He further informed the Board that Gina Hickman would review the Delegations of Authority on the next agenda item as they relate to the policy changes being discussed. Motion to approve the Policies and Procedures Manual Revisions as presented: Smith. Second: McMillan. Vote: 6 - 0.

4 Delegations of Authority Update (Gina Hickman). Hickman stated that the Delegations of Authority is updated annually or on an as needed basis. She explained that based on input from the Board staff is proposing revisions to the Delegations of Authority to support the proposed changes to the Policies and Procedures manual for Real Estate Owned policy revisions. These updates support clearer, more transparent reporting and acquired property portfolio

MFA Regular Board Meeting Minutes May 16, 2018 Page 2

management processes. Staff is also recommending removal of the lender delegations line item to correspond with the Authorized Signatures Resolution currently in place. In addition, the National Housing Trust Fund program (N-HTF) is being added. Staff recommends approval of the Delegations of Authority as revised. Motion to approve the Delegations of Authority Update as presented: Sanchez. Second: Malavé. Vote: 6 - 0.

5 HUD Veterans Rehabilitation Grant (Izzy Hernandez/Monica Abeita). Abeita began by stating that staff recommends that MFA submit an application for $1,000,000 for HUD’s Veterans Housing Rehabilitation and Modification (VHRM) Pilot Program. If received, this funding will allow MFA to improve more homes through its existing NM Energy$mart and rehabilitation programs. The purpose of this grant is to rehabilitate and modify the primary residence of veterans who are low-income (defined as 80 percent Area Median Income) and living with disabilities. She reviewed the memo which included the following information; Background, Eligible applicants, Cost sharing/matching, Program of Work and Housing Standards. . Discussion ensued regarding hiring Veteran-owned businesses/contractors to do the rehabilitation work. Abeita responded that MFA plans to use its existing service providers but through its outreach to Veteran’s organizations, which is required by the grant, will attempt to identify Veteran subcontractors. Motion to approve staff proceeds with the application for the HUD Veterans Rehabilitation Grant as presented: Malavé. Second: Sanchez. Vote: 6-0.

6 HOME Single Family Development Program Policy (George Maestas). Maestas began by stating that MFA staff recommends that MFA’s Board of Directors approve the updated HOME Single Family Development Program Policy. Maestas went over the background information located behind tab six stating that MFA’s HOME Single Family Development Program which was approved by the Board in 2012. However, after the HUD Final Rule was published in August 2013, MFA decided to no longer offer HOME Single Family Development Program. The primary reason for discontinuing the program was that the new rules made it onerous to comply with HUD regulations and, at that time, the Housing Development Department did not feel that it had sufficient staff, nor the expertise, to design a compliant program. Reduced HOME funding and a lack of demand for the single family development product, also contributed to the decision. Maestas further explained that in order to re-establish the program, staff made several updates to the existing HOME Single Family Development Program Policy which will allow the program to comply with requirements of the 2013 Final Rule. He reviewed the changes in the policy located behind tab six which will be made a part of the official board packet. Motion to approve the HOME Single Family Development Program Policy as presented: Malavé. Second: Smith. Vote: 6-0.

Contracted Services/Credit Committee 7 Approval of Community Development Block Grant Program (CDBG) RFP (Gina Bell). Bell began by informing

the Board that the CDBG Housing Programs national objective is to principally assist low and moderate income (LMI) homeowners with repair, rehabilitation, accessibility modifications, specific types of housing modernization, code enforcement, and historic preservation activities. She reminded the Board that on March 22, 2017 MFA’s board of director’s authorized MFA to apply for the CDBG funding. On December 21, 2017, MFA signed an agreement in amount of $500,000 with DFA to provide housing services in the Colonias. She explained that the CDBG funding will be used to provide moderate rehabilitation to 10 homes, energy efficiency upgrades to 34 homes, accessibility improvements to 13 homes and roof replacements to 20 homes. The funding will be used as leverage funding for the homes receiving moderate rehabilitation and energy efficiency however the homes receiving accessibility improvements and new roofs will be funded primarily with the CDBG and a small cash match from MFA. Bell further explained that in order to access the funding needed to provide the services, it was necessary to use our existing service providers to perform the work since they are entities that have been awarded the primary funding for these programs. MFA requested and received approval from the DFA to use the existing procurement for the Rehab and NM Energy$mart Service Providers. The RFP being presented today is to procure for agencies that are interested in providing the roof replacement and accessibility upgrades services. Bell reviewed the scope of work and scoring criteria in the RFP. Motion to approve the Community Development Block Grant Program (CDBG) RFP as presented: Malavé. Second: McMillan. Vote: 6-0.

8 Approval of 2017/2018 DOE Annual and Master State Plans (Amy Gutierrez and Troy Cucchiara). Gutierrez began by stating that MFA staff recommends approval of the NM Energy$mart 2018/2019 Department of Energy (DOE) Weatherization Assistance Program Annual and Master State Plans. She explained that the NM Energy$mart program helps low-income New Mexicans save money on utility bills. Homeowners and renters who qualify for the program receive an average of $6,000 in weatherization measures. The Department of Energy is the primary funding source because they set the rules and regulations for the program and they are the only funding source that provide for


vehicles and equipment and a training and technical assistance budget. In order to receive the funding the “State Plan” must be submitted no later than May 4, of every year. The Department of Energy (DOE) funding for the 2018/2019 program year is $2,125,643.00. Gutierrez went over the Funding Sources and anticipated amounts, Homes to be weatherized, the budget/territories and comparison of plans 2017-18/2018-19 as stated in the memo located behind tab eight, which will become a part of the official board packet. Discussion ensued regarding set-aside - capital outlay for vehicles and equipment for agencies, maintenance, insurance etc. Cucchiara went over the list of equipment. Further discussion ensued regarding ownership of said vehicles/equipment, how vehicles are used and what happens if they are no longer service providers. Member Sanchez requested a list of the equipment. Motion to approve the 2017/2018 DOE Annual and Master State Plans as presented: Malavé. Second: Reyes. Vote: 5-1 (Sanchez explained that he supports the program but not the process).

9 Real Estate Owned (REO) Disposition-Loss Approval (Theresa Laredo Garcia). Laredo Garcia began by informing the Board MFA staff is recommending Board approval of losses greater than $50k on Hobbs Workforce, Habitat for Humanity Valencia County and Tierra De Esparanza multifamily properties that are, or have been held in MFA’s REO portfolio. The decline in property values and capitalized expenses combine to exceed the current value of the properties, resulting in projected loss exposures upon sale or disposition. She reviewed background information on each of the properties as well as the Summary of Loss Calculations included in the memo located behind tab nine, which will become a part of the official board packet. Discussion ensued regarding economic loss and a donation. Staff will research Governmental Accounting Standards Board guidance to determine accounting requirements for a property donation and will follow the guidance accordingly. Motion to approve the Real Estate Owned (REO) Disposition-Loss as presented: Reyes. Second: McMillan. Vote: 6-0.

10 RFP for Purchase of Affordable Housing Rental Properties in Clayton, NM (Christine Wheelock and Izzy Hernandez). Wheelock began her presentation by informing the Board that MFA Staff is requesting approval for the release of a Request for Proposal regarding Clayton Rental Property, MFA Loan #HM026, to solicit proposals for purchase due to a Default Judgement in which MFA was appointed as Receiver and retains an interest. Staff requests approval to issue the Request for Proposal (RFP) for the purchase of an affordable rental property (five homes) in Clayton, NM. She reviewed the background information and RFP scoring. This includes; Owner and Management Experience, Preservation of Affordable Housing and Financial Ability. MFA shall select the Offeror whose proposal most clearly demonstrates the ability to own and manage affordable properties. Final approval is contingent upon successful negotiation and Court approval. Wheelock then went over the timeline, which is provided behind tab ten and will be made a part of the official board packet. Discussion ensued regarding if the amount requiring approval should be looked at and increased since time is of the essence. Motion to approve the RFP for Purchase of Affordable Housing Rental Properties in Clayton, NM as presented: Smith. Second: Reyes. Vote: 6-0.

Other 11 2018 Series B Single Family Bond Resolution (Kathy Keeler). Keeler presented a bond resolution for the 2018

Series B single family program. She explained that reservations for our single family loans have been very strong. 2018 A bond issue is totally originated and to support upcoming production a new bond resolution is needed. Staff is recommending the approval of the 2018 Series B Single Family Bond Resolution in the amount of $75mm. It will be different than what the Board has seen in the past. It is all new money without a refunding component or any additional subsidization. It will allow MFA to offer lower rates for our first-time homebuyers. The Trustee is Zions Bank. The underwriters on this bond transaction will be RBC Capital Markets LLC as Senior Manager and Raymond James & Associates, Inc. as co-manager. Kathy noted that MFA will also be using a selling group, to assist in the retail sale component since that strategy worked so well for 2018 Series A. Keeler reviewed Exhibit A highlighting the bond maximum parameters as follows: Maturity Date not to exceed January 1, 2052, Principal Amount not to exceed $75mm, Interest Rate not to exceed 5% and Authority Contribution not to exceed $1.2 mm. Motion to approve the 2018 Series B Single Family Bond Resolution as recommended: Sanchez. Second: Smiths. Vote: 6-0.

12 Amendments to the 2018-2022 MFA Strategic Plan (Monica Abeita). Abeita began her presentation by explaining that MFA’s Strategic Plan covers the period of FY 2018-2022. Because the strategic plan is a living document, the Strategic Management Committee reviews the plan for needed amendments once a year, in April, after the close of the second quarter. If amendments are needed, they are brought before the MFA Board of Directors in May. She reviewed the recommended amendments for approval located on the memo behind tab thirteen, which will be made a part of the official board packet. The amendments pertain to a strategic initiative and several benchmarks for FY


2018 due to revised methodology, the revised financial forecast or needed clarifications. Motion to approve the Amendments to the 2018-2022 MFA Strategic Plan as presented: McMillan. Second: Smith. Vote: 6-0.

13 MFA Strategic Plan Update: PBCA Procurement (Izzy Hernandez). Hernandez explained that the memo provided includes information that was presented to the Board in January 2018 and includes updates in pages three and four. He reminded the Board that the January 2018 memo was to approve a resolution to allow MFA to respond to the procurement which would include non HFA type entities into our consortium if we needed to go that route. The updates include, (1) On March 13th HUD cancelled both the national and regional draft Requests for Proposals (RFPs) to replace the current Performance-Based Contract Administration (PBCA) program. HUD stated that it was cancelling the solicitation in its entirety as they need to perform additional due diligence, and it expects to take several months to develop a new procurement. (2) On March 23, 2018 President Trump signed the Fiscal Year (FY) 2018 omnibus spending bill. It included funding for PBCA’s to continue performing the work under their contracts. HUD choose to cancel the solicitation and the administration supported the cancelation of the procurement and the solicitation for the remainder of the fiscal year. The administration directed HUD to report to the Appropriation Committees with regard to funding/staffing requirements that would necessitate them to undertake and oversee a state by state procurement. That signals to us that they are looking at going back to doing a state by state procurement. This is something that MFA, all other HFA’s and NCSHA have advocated for many years. At this point we’ve put a hold on drafting the proposal and we do continue to meet as a collaborative and have conference calls on a monthly basis as we wait on a new procurement. We wanted to keep the board apprised. Chair Burt stated that this was a big deal for this team to be recognized by their peers. A team that could lead this process speaks volumes about the quality of this organization. Many times in our state were shy about our capabilities but staff did an outstanding job. He congratulated staff on their hard work. No action required.

Closed Session Action Required 14 Legal Matters

Closed Session to be held Pursuant to Section 10-15-1(H) (7) of the Open Meetings Act – Threatened or Pending Litigation: Discuss Status of Litigation Against Commonweal Conservancy, Inc. (Izzy Hernandez/Joshua Allison). Motion to go into closed session for the sole purpose of discussing the status of the litigation against Commonweal Conservancy, Inc.: Sanchez. Second: Malavé. Vote: 6-0. (Burt, Malavé, Sanchez, Reyes, Smith and McMillan voting for; no members voting against). Secretary Czar called the Roll. Members present for Closed Session: Chair Dennis Burt, Angel Reyes, Sally Malavé (designee for Attorney General Hector Balderas), Lieutenant Governor John Sanchez and Mark Van Dyke (designee for Lieutenant Governor Sanchez), Steven Smith and Randy McMillan. Also present: Jay Czar, Gina Hickman, Izzy Hernandez, and legal counsel Joshua A. Allison and Eleanor C. Werenko. The Board discussed the status of the litigation against Commonweal Conservancy, Inc. with its legal counsel.

Open Session Action Required 15 Motion to come into open session: Reyes. Second: Malavé. Vote: 6-0.

Chair Burt confirmed that we are back in open session and the webcast is running and minutes are being recorded.

Chairman Burt made a statement that the only issues discussed in closed session were attorney-client privileged discussions related to the status of the litigation against Commonweal Conservancy, Inc. No other issues were discussed and no actions were taken. Burt stated that the next item on our agenda is an Action Item to approve a compromise with Commonweal Conservancy, Inc. He asked Board Legal Counsel Joshua Allison to summarize the proposal. Allison stated that the board had before them a copy of a Conditional Settlement Agreement and Mutual Release of Claims marked “#2” in the upper right-hand corner. The key terms of that agreement, which would resolve the disputes related to Commonweal Conservancy, Inc.’s defaulted loan obligations are: Commonweal agrees to pay the full outstanding principal balance on its loan obligations to MFA, which results in a payment of $2,419,084, in two installments; Installment 1 is due no later than July 2, 2018 in the amount of $1mm and the second payment of the balance of $1,419,084 is due no later than January 3, 2019. The remaining terms are spelled out in the Conditional Settlement Agreement and Mutual


Release. In effect, if the payments are made timely, the lawsuit will be dismissed and the mortgages and use restriction agreement will be released. If the payments are not made timely, a stipulated judgment of foreclosure will be entered, and Commonweal pledges in the agreement that they will cooperate with MFA in entering that stipulated judgement so that MFA may proceed with foreclosure on the properties securing the debt. Recommendation coming from legal counsel and staff is that the Board approve the Conditional Settlement Agreement and Mutual Release of Claims marked “#2” and that the Board further authorize Jay Czar on behalf of MFA to execute that agreement. Motion to accept the proposal as stated with Commonweal: Reyes. Second. Malavé. Vote: 6-0. Allison extended his gratitude to Ted Harrison of Commonweal, who was present at the meeting, for working with MFA on these details over the last several weeks. Harrison thanked the board for enduring a long process and apologized that their best efforts resulted in such a disappointing outcome for MFA. He thanked MFA staff for being incredible patient and very creative in working with them to see if there was a way to resolve this obligation in a way that would at least repay to MFA its outstanding principal balance. He went on to speak of the donor and the future plans for this site. Chair Burt thanked Mr. Harrison for his comments.

Other Board Items - Information Only 16 There were no questions asked of staff

Staff Action Requiring Notice to Board Strategic Plan Dashboard Moody’s Investor Service Credit Opinion

Monthly Reports - No Action Required 17 There were no questions asked of staff

Communications Department Reports Monthly Reports - No Action Required 18 There were no questions asked of staff

Quarterly Board Report Announcements and Adjournment - Confirmation of Upcoming Board Meetings. Chair Burt informed the Board that the next Board of directors meeting is one week earlier and will be on June 13, 2018 at the offices of the MFA at 9:30 a.m. There being no further business the meeting was adjourned at 12:19 p.m. Approved: June 13 2018 Chair, Dennis Burt Secretary, Jay Czar

New Mexico Mortgage Finance Authority

Single Family Mortgage Revenue Bond Loan Compliance

Executive Summary

March 2018

1


Single Family Mortgage Revenue Bond Loan Compliance Executive Summary


Board of Directors

We performed the internal audit services described below to assist New Mexico Mortgage

Finance Authority (MFA) in evaluating the compliance of the organization’s Single Family

Mortgage Revenue Bond loan processes.

PURPOSE AND OBJECTIVES

Our internal audit focused on evaluating the internal processes surrounding the Single Family

Mortgage Revenue Bond loan application, income verification, and Maximum Income

compilation process to determine if applications were completed in accordance with internal

policies and procedures, relevant IRS Code sections and Housing and Urban Development

(HUD) guidance.

SUMMARY OF PROCEDURES

In order to gain an understanding of the Single Family Mortgage Revenue Bond loan process, we

read relevant sections of the MFA Compliance Manual, IRS Statute Section 143: Mortgage

Revenue Bonds, various IRS Revenue Procedures and Revenue Rulings as well as Chapter 5 of

the HUD Handbook. Additionally, we tested that loan applications submitted to MFA included

all required elements listed in the MFA Compliance Manual and were reviewed timely, loan

applications were in compliance with applicable Section 143 subsections, conditions, if

applicable, were reviewed within appropriate time limits, calculated income was below

Maximum Income limits set by Bond Counsel, Maximum Income limits pulled by MITAS

agreed to amounts on the spreadsheet prepared by Bond Counsel, and recapture notices agreed to

the amounts on the Bond Counsel spreadsheet and were provided to the mortgagor within 90

days of settlement.

2

SUMMARY OF RESULTS

During the audit, we found that most areas tested appeared to have functioning internal controls

and established procedures were followed. The compliance checklists utilized during the

application process appeared to be followed and all necessary documentation was obtained for

each loan. Income included in the income calculations appeared to be appropriate and

documentation utilized in the calculations was within the periods established in the policies. In

addition, Maximum Income amounts manually input into the software were pulled correctly

based on the parameters of each loan. Additionally, the department has recently developed ways

to share information among the team in order to make loan file review more consistent and

efficient.

As a result of our testing, REDW identified the following low risk observation:

Recapture notices were not pulling correct income limits

MFA must give the mortgagor notice of the “recapture tax” imposed pursuant to Section 143 of

the IRS Code. The notice includes the adjusted qualifying income in effect for each category of

family size based on their purchasing area. MFA had previously determined that the prior notices

sent out by Idaho Housing did not include the correct adjusted qualifying income. MFA had

subsequently taken over the process to mail the notices; however, the process utilized to populate

the forms did not appear to be correct. Based on our testing, it does not appear that the adjusted

qualifying income was correctly populated into the recapture notices for the 2017B bond

issuance. MFA should work with Bond Counsel to determine the implications of the error in the

notice and determine the appropriate action that needs to be taken to correct the discrepancy.

* * * * *

Further detail of our purpose, objectives, procedures, observations and recommendations is

included in the full internal audit report. In that report, management describes the corrective

action being taken for the above observations.

Albuquerque, New Mexico

May 22, 2018


Vendor and Compliance Management Systems including

Sub-Servicing Oversight

Executive Summary

March 2018

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Vendor and Compliance Management Systems including

Sub-Servicing Oversight Executive Summary


Board of Directors

We performed the consulting services below to assist New Mexico Mortgage Finance Authority

(MFA) in evaluating compliance with policies addressing vendor and compliance management

system (CMS), including subservicing oversight.

PURPOSE AND OBJECTIVES

Our internal audit included verification of the significant sections within the CMS, Vendor

Management and Sub-Servicer Oversight Policies and Procedures to determine if monitoring and

reporting activities were in place as they relate to vendors and sub-servicers. REDW performed a

readiness assessment over the CMS in January 2017, to assist MFA in the development of the

CMS and ensure compliance with the Consumer Financial Protection Bureau (CFPB)

requirements. Vendor management and sub-servicer oversight are both components of the CMS

process. The Sub-Servicer Oversight Procedures were implemented in March 2016 to assist with

regulatory compliance with the CFPB, in addition to Fannie Mae and Ginnie Mae requirements,

as MFA is accountable to both of these organizations.

SUMMARY OF PROCEDURES

In order to gain an understanding of the expectations for vendor and compliance management,

including sub-servicer oversight, we read the CMS Policies and Procedures, Vendor

Management Policy and Sub-Servicer Oversight Procedures. We identified key process areas

within each policy and procedures, and inquired with the Compliance Officer and Director of

Servicing to gain an understanding of how these policies and procedures were executed and

monitored. Additionally, we obtained supporting documentation, including reports and

correspondence, to ensure those key process areas were performed in accordance with the

policies and procedures.

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SUMMARY OF RESULTS

We identified areas during the course of the audit where controls were functioning properly and

established procedures were followed. Minimal issues were identified during the course of the

audit and overall the Compliance Officer appears to be performing essential reviews and

monitoring of vendors and sub-servicers. Additionally, significant requirements and

responsibilities in the CMS Policy and Procedures appeared to be performed and functioning as

intended.

As a result of our testing, REDW identified the following low risk observation:

Lack of documentation of Mortgage Insurance Premiums (MIP) testing performed by Idaho

Housing and Finance Association (IHFA)

Housing and Urban Development (HUD) Single Family Housing Policy Handbook, Quality

Control Oversight and Compliance, requires verification that the MIP were remitted accurately

within the required time period. MFA’s Sub-Servicer Oversight procedures require that a review

procedure be in place for the IHFA MIP remittance to ensure timely and accurate payment;

however, there was no documentation of this review. As such, MFA should encourage IHFA to

update the IHFA Quality Control procedures to ensure these requirements are monitored.

* * * * *

Further detail of our purpose, objectives, procedures, observations and recommendations is

included in the full internal audit report. In that report, management describes the corrective

action being taken for the above observations.

Albuquerque, New Mexico

May 22, 2018

New Mexico Mortgage Finance Authority 344 Fourth St. SW, Albuquerque, NM 87102 tel. 505.843.6880 toll free 800.444.6880 housingnm.org

MEMORANDUM

TO: MFA Board of Directors

Through: Finance Committee – June 5, 2018

Through: Policy Committee – May 29, 2018

FROM: Rene Acuña, Director of Homeownership DATE: June 13, 2018 SUBJECT: Proposed Capital Magnet Fund (CMF) Down Payment Assistance Program

Policy

Recommendation: Staff recommends approval and implementation of the CMF Down Payment Assistance Program policy.

Background: The Capital Magnet Fund (CMF) allows institutions, such as MFA to apply for grants through a competitive process. Administered through the federal CDFI fund, the CMF was established as a permanent trust fund in the Housing and Economic Recovery Act of 2008. CMF hopefuls apply for grants to finance a variety of affordable housing programs and services. The MFA grant application concentrated on allocating awarded funds toward down payment assistance in an effort to promote homeownership opportunities for low-income households within the state. The MFA Board approved the application in August 2017. In March 2018, the U.S. Treasury’s Community Development Financial Institutions Fund (CDFI) announced the awardees. MFA received an award of $3.6MM from the Capital Magnet Fund for down payment assistance. Discussion: The attached policy outlines the proposed program parameters. CMF program loans are zero percent (0%) interest rate, non-amortizing 10 year maturity loans due on sale, refinance, or transfer of the property. The principal loan balance is forgiven in the eleventh year from the date of the note. If the property is sold within the 10-year affordability period, the new borrower may qualify to receive a loan under the same program and terms.

The program is designed to be used in conjunction with MFA’s First Home program. As such all First Home Program polices and guidelines still apply such as:

• First Time Homebuyer (FTHB) • Must occupy a single family residence as their primary residence • Borrower must contribute $500 of their own funds • Homebuyer counseling is required

Program Income and Acquisition Limits: Program income eligibility is based on either HUD’s HOME published income and purchase price program guidelines or MFA’s Amended New Mexico Annual Action Plan limits. Please refer to the attached program policy for the current limits. Summary: The U.S. Treasury’s Community Development Financial Institutions Fund (CDFI) recently awarded $3.6MM to MFA from the Capital Magnet Fund (CMF) to support a down payment assistance program for low income homebuyers. Staff recommends approval and implementation of the CMF Down Payment Assistance program policy. The program will expand homeownership opportunities throughout the state.

Loan Features Requirements Comments

Lenders Borrower applies through lenders already

participating in MFA programs MFA reviews the loan package for

compliance with program and gives approval to close.

Borrower Eligibility

Income limits of 80% of AMI based on family size Income limits are calculated from HUD’s HOME income guidelines.

Lender Fees Lenders may charge the borrower a $100 origination fee.

Same fee structure as the First Down program

Loan Amount Limited to the lesser of 8% of the purchase price or $8,000.

N/A

Loan Terms 0% interest, no monthly payments, 10- year

affordability. The principal loan balance is forgiven in the eleventh year from the date of the note.

Property Acquisition costs or purchase price cannot

exceed limits established by HUD HOME program guidelines.

Same property requirements as the First Down program

Limited Funds Funds are limited with required set asides of 10% for rural properties and 25% for Areas of

Economic Distress

Lender reserves on a first come, first serve basis

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Capital Magnet Fund (CMF) Down Payment Assistance Program Policy June 2018

Program Description: The CMF Down Payment and Closing Cost Assistance Program (the “CMF DPA Program”) is designed to assist low-income first-time homebuyers in purchasing a home. The program promotes statewide part-nerships among MFA Participating Lenders and non-profit/public housing agencies and will help in offer-ing increased access to homeownership for borrowers in communities that typically have limited access to affordable financing options. Eligible Mortgage Lenders: Mortgage Lenders must be approved by MFA (“Participating Lender”) to originate CMF DPA Program loans. MFA maintains a list of Participating Lenders on the MFA website (www.housingnm.org). Eligible CMF DPA Program Loans: CMF DPA program loans may only be used to finance the minimum down payment and eligible closing costs. Eligible closing costs may include, but are not restricted to “reasonable and customary” lender fees (underwriting, document preparation, processing, etc.), mortgage insurance premiums, pre-paid interest, property taxes, homeowners/flood insurance, title insurance policies/premiums, appraisals and home inspections. The CMF loan must be made in conjunction with MFA’s First Home, federally insured (FHA, VA, and USDA Rural Development Guarantee) or privately insured (FNMA’s HFA Preferred TM) first mortgage programs. Availability of Funds: CMF DPA Program funds are limited and may be reserved on a first come, first serve basis in conjunction with a First Home program loan. A portion of these funds will be set aside for use in rural communities and economically distressed census tracts. Reservations of funds are made through MFA’s online reser-vation system, which can be accessed on MFA’s website (www.housingnm.org/lenders_realtors/online-reservations).

http://www.housingnm.org/

http://www.housingnm.org/lenders_realtors/online-reservations

http://www.housingnm.org/lenders_realtors/online-reservations

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Eligible Borrowers: The Annual Household Income must not exceed the applicable maximum limit as detailed in the CMF Income Limits (Exhibit A). The CMF Income Limits are limited to eighty percent (80%) AMI in all areas of the state, adjusted for family size.

• The CMF DPA program requires the borrower to be a first-time homebuyer. • Program is not eligible for any income limit waivers associated with other MFA programs as al-

lowed in Target Area Census tracts, for example. • Borrower contribution of at least $500, which must be the borrowers own funds and cannot be

derived from any type of gift, grant or down payment assistance. • Minimum credit score of 620. • Homebuyers must occupy the property within 60 days of closing.

Property Eligibility: All areas of the state, including Federally Designated Tribal Land, are eligible for the program.

• Properties must be owner-occupied, single family residences. • Property types eligible for financing under the CMF DPA program include Single family detached

properties, townhomes, condominiums, and homes in Planned Unit Developments and manu-factured homes on permanent foundations.

• Properties financed with the CMF DPA program must not exceed the purchase price limits set forth in Exhibit A.

Interest Rate and Terms: CMF program loans are zero percent (0%) interest rate, non-amortizing 10 year maturity loans due on sale, refinance, or transfer of the property. The principal loan balance is forgiven in the eleventh year from the date of the note. If the property is sold within the 10-year affordability period, the new bor-rower may qualify to receive a loan under the same program and terms. CMF loans do not carry a pre-payment penalty. Fees: Participating Lenders may charge the borrower an origination fee of one hundred dollars ($100.00) in conjunction with CMF DPA loan. Other allowable fees that may be charged in conjunction with this loan program include the recording fees, mortgagee title insurance policy premiums and settlement/closing fees. MFA, as administrator, may charge additional fees to release the mortgage at time of payoff. No other fees may be charged in conjunction with the CMF DPA loan.

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Maximum Loan Amount: CMF DPA Program loan amounts are limited to the lesser of 8% of the purchase price or $8,000. Pre-Purchase Housing Counseling: Homebuyer counseling is required for all first time homebuyers (FTHB) including co-borrowers. FTHB must complete a homebuyer counseling course through eHomeAmerica or another MFA approved counseling agency. (Certificates from Mortgage Insurance Companies are not acceptable). Homebuyer counseling is not required for Co-signers. Affordability Period: CMF DPA Program loans require an minimum affordability period of 10 years. Homebuyers must agree to reside in the property for the duration of the period of affordability, or until there is a sale or other transfer of ownership of the property. Should the homebuyer cease to reside in the home as a principal residence (by vacating, selling or renting the unit) during the period of affordability, then the full amount of the CMF DPA loan will be due and payable immediately. MFA, at its discretion, will take legal action to enforce the residency requirement. Loan Closing: The Mortgage Loan must close in the Lender’s name on a standard FNMA Note and Mortgage. The Lender has the option of using MFA’s MERS #1013401. If not, the Lender must prepare an assign-ment.

• The Note must be endorsed to New Mexico Mortgage Finance Authority it’s successors and or assigns.

• The Lender must ensure that the Mortgage Loan meets all applicable program guidelines and has been Compliance Approved by MFA prior to the loan closing.

The Mortgage Loan must be closed according to the terms specified in the Approval Commitment and the Closed Loan File delivered to the Contract Service Provider prior to the Final Mortgage Loan Purchase Date as specified on the Commitment. The Closed Loan Checklist outlines the documents that must be submitted by the Lender. Failure by the Lender to submit the required documentation prior to the purchase expiration date may result in MFA’s determination that the loan is not eligible for the program or MFA will charge a fee to the Lender for an extension or the loan may be pur-chased from the Lender on a worst case, Mark-to-Market basis. In these cases, MFA will not be obli-gated to authorize the Contract Service Provider to purchase the loan.

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Funding: CMF DPA Program loans must be delivered to and purchased by the Contract Service Provider via Lender Connection prior to the Final Mortgage Loan Purchase Date as specified on the Approval Commitment. The Closed Loan Checklist outlines the documents that must be submitted by the Lender. In addition, if at the time the Closed Loan File is reviewed and the Mortgage Loan is found to be ineligible MFA will not be obligated to authorize the purchase of the loan. Servicing: MFA will service all CMF DPA Program loans.

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EXHIBIT A

CMF Income Limits (80% AMI)

Program income eligibility is based on either HUD’s HOME published income and purchase price pro-gram guidelines or MFA’s Amended New Mexico Annual Action Plan limits. The CMF program is reserved for families falling in the 80 percent or less area median income (AMI) for the respective county as pub-lished annually for the HOME program. HUD publishes the HOME income guidelines annually between May and June. The limits below reflect 2018 figures.

Persons in Family 1 2 3 4 5 6 7 8

Bernalillo, Sandoval, Torrance, Valencia

$36,400 $41,600 $46,800 $52,000 $56,200 $60,350 $64,500 $68,650

Curry $30,100 $34,400 $38,700 $42,950 $46,400 $49,850 $53,300 $56,700 De Baca $31,650 $36,200 $40,700 $45,200 $48,850 $52,450 $56,050 $59,700 Eddy $38,400 $43,850 $49,350 $54,800 $59,200 $63,600 $68,000 $72,350 Lea $37,450 $42,800 $48,150 $53,500 $57,800 $62,100 $66,350 $70,650

Los Alamos $50,350 $57,550 $64,750 $71,900 $77,700 $83,450 $89,200 $94,950

San Juan $33,700 $38,500 $43,300 $48,100 $51,950 $55,800 $59,650 $63,500 Santa Fe $38,850 $44,400 $49,950 $55,450 $59,900 $64,350 $68,800 $73,200

All Others $30,100 $34,400 $38,700 $42,950 $46,400 $49,850 $53,300 $56,700

* In cases where the household exceeds eight persons, please contact MFA, for income figure

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MFA Amended HUD HOME Limits (2017)

HOME 2017 Sales Price Limits

Limits for Limits for

Existing Homes New Homes

County Name 95% of Median 95% of Median

Bernalillo County $192,850 $254,144 Doña Ana County $156,750 $228,000 Los Alamos County $272,650 $329,446 Sandoval County $185,250 $278,350 Santa Fe County $322,525 $379,905 San Miguel County $199,500 $228,000 Taos County $308,750 $261,000

New Mexico Mortgage Finance Authority 344 4th St. SW, Albuquerque, NM 87102 tel. 505.843.6880 toll free 800.444.6880 housingnm.org

MEMORANDUM TO: MFA Board of Directors

Through: Policy Committee – May 29, 2018 Finance Committee—June 5, 2018

FROM: Monica Abeita, Director of Policy and Planning DATE: June 13, 2018 SUBJECT: 2020-2024 State of New Mexico Infrastructure Capital

Improvement Plan (ICIP) Recommendation: Staff recommends approval of the following projects for the FY 2020-2024 ICIP, which must be submitted to the Capital Outlay Bureau of New Mexico Department of Finance and Administration (DFA) in early July 2018: Priority 1: New Mexico Housing Trust Fund $5 million each year for 2020-2024 Priority 2: Weatherization/Energy-Efficiency $2 million each year for 2020-2024 Background and Discussion: Each year, the Capital Outlay Bureau of DFA requests that state agencies, local governments, tribal governments, special districts and senior citizen facilities submit ICIPs for priority capital projects for which they will seek state funding in the next five years. DFA does not plan to send out the new FY 2020-2024 ICIP until the first week in June; therefore the actual ICIP is not attached to this memo. Prior to 2015, MFA was not aware that it was eligible to request capital outlay funding through the state ICIP process. At a meeting with DFA staff in 2015, MFA was encouraged to submit an ICIP as a state agency. MFA was informed that, if prioritized through the ICIP

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process, its projects would be rolled into the severance tax bond capital outlay bill for consideration by the legislature. Severance tax bonds can be used for projects such as MFA’s, which are privately owned once constructed. MFA has submitted the same capital outlay requests for the past few years, with the following results at these Legislative Sessions:

• 2016: Both requests were prioritized and included in the original severance tax bond capital outlay bill, although neither request was included in the substitute bill that was ultimately approved.

• 2017: No capital outlay requests were approved in 2017. • 2018: Neither request was included in capital outlay legislation.

Summary: Each year, the New Mexico Department of Finance and Administration (DFA) requests that state agencies, local governments, tribal governments, special districts and senior citizen facilities submit Infrastructure Capital Improvement Plans (ICIPs) for priority capital projects for which they will seek state funding in the next five years. MFA has submitted ICIPs through this process for the last three years. No funding has been received to date. MFA is recommending that a new ICIP be submitted for the FY 2020-2024 ICIP for the following projects, which have been requested in previous years: Priority 1: New Mexico Housing Trust Fund $5 million each year for 2020-2024 Priority 2: Weatherization/Energy-Efficiency $2 million each year for 2020-2024

.

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New Mexico Mortgage Finance Authority 344 Fourth St. SW, Albuquerque, NM 87102 tel. 505.843.6880 toll free 800.444.6880 housingnm.org


Through: Finance Committee – June 5, 2018

Through: Policy Committee – May 15, 2018

FROM: Izzy Hernandez

DATE: June 13, 2018

SUBJECT: Allocations of 2016, 2017 and 2018 National Housing Trust Fund and 2018 HOME Funds

Recommendation: Staff recommends the allocation of $9,000,000 of National Housing Trust Fund (N-HTF) and $8,021,768 of HUD HOME funds to the activities as identified in the below N-HTF Table and the attached 2018 HOME Allocation sheet.

Background: MFA has been the statewide Participating Jurisdiction (PJ) for HUD HOME funds in New Mexico since 1997. HOME Funds are allocated annually on a formula basis to each PJ. In 2016 MFA was also allocated N-HTF funds. In order to be eligible, MFA must be compliant with the Consolidated Plan, Action Plan, N-HTF Allocation Plan and Consolidated Annual Production Reporting (CAPER) amongst other requirements. N-HTF: MFA was allocated $3,000,000 in 2016, 2017 and 2018 for a total of $9,000,000. The N-HTF allows up to a 10% administration fee ($300,000). Based on our expenses and staff time allocations the last 12 months, we project using $50,000 in administrative fees each year. We are seeking your approval to allocate $50,000 to MFA Admin for each of the three years and $2,950,000 to programs for each of the three years. The below table summarizes our proposed N-HTF Allocation:

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HOME: MFA’s overall national ranking for HOME is 15th with top 10 rankings in 5 of the 8 categories which included one number 1 rankings, (HUD: SNAPSHOT of HOME Program Performance as of 12/31/17)

Ranking Criteria MFA % National % National Ranking

% Funds Committed 97.67

94.92 4

% Funds Disbursed 96.21 92.75 7 Leveraging Ratio for Rental 11.71 5.08 5 % Disbursements (Rental) 98.83 98.21 32 % CHDO Disbursements 97.69 93.88 10 %Serving Renters <50% AMI 87.73 80.3 18 % Serving Renters <30% AMI 41.05 37.28 27 % Rental Occupancy Rate 100 99.68 1

HUD recently provided MFA with the 2018 HOME allocation in the amount of $5,241,485. This was an increase of $1,687,082 from the previous years’ allocation of $3,554,403. MFA is carrying forward $1,050,000 from the previous year in addition to $1,730,283 of program income. The combined total available for allocation is $8,021,768.

Funding Source Amount

2017 HUD Allocation 5,241,485 Carry Forward 1,050,000 Program Income 1,730,283

Total Available 8,021,768 HOME funds can be used in various activities which include Homebuyer Assistance (DPA), Homeownership Development (DEV), Home Rehabilitation (HOR), Rental Programs (REN), Community Housing Development Organizations (CHDO) Set Aside, CHDO Operating funds (COE) and Administration (ADM). We expect to have active programs in all activities except DPA. Discussion: HOME allocations to each activity (projects) are based on projected demand and/or HOME requirements and limitations (CHDO, COE, and ADM). Demand for funds is monitored on a monthly basis. Should demand not materialize in a particular activity(s), we have flexibility within the Action Plan to reallocate funds with Board Approval or notice.

Year Total Program MFA Admin.Allocation

2016 $3,000,000 $2,950,000 $50,0002017 $3,000,000 $2,950,000 $50,0002018 $3,000,000 $2,950,000 $50,000

TOTAL $9,000,000 $8,850,000 $150,000

National Housing Trust Fund (N-HTF) Allocations

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Summary: Allocating HUD N-HTF funds totaling $9,000,000 to the following activities:

National Housing Trust Fund (N-HTF) Allocations Year Total Program MFA Admin.

Allocation 2016 $3,000,000 $2,950,000 $50,000 2017 $3,000,000 $2,950,000 $50,000 2018 $3,000,000 $2,950,000 $50,000

TOTAL $9,000,000 $8,850,000 $150,000

Allocating HUD HOME funds totaling $8,021,768.to the following activities:

ACTIVITY FUNDS

Homebuyer Assistance (DPA) $0 Homeowner Development (DEV) $434,893 Rehabilitation (HOR) $3,350,000 Rental Programs (REN) $2,553,475 Community Housing Dev. Organization (CHDO)* $786,223 CHDO Operating $200,000 Administration (ADM) $697,177

TOTAL $8,021,768 *NOTE: Can be used for CHDO Rental or Single Family Programs

2018 HOME ALLOCATIONS

HOME Allocations 2018 5/10/2018

2017 Board 2017 Board 2016 Board 2016 Board 2015 Board 2015 Board 2014 Board 2014 BoardApproved Approved Approved Approved Approved Approved Approved ApprovedAllocation Allocation Allocation Allocation Allocation Allocation Allocation AllocationAmount Percentage Amount Percentage Amount Percentage Amount Percentage

HUD Allocation $3,554,403 $3,547,392 $3,332,253 $3,781,116Carry Forward from Last Year $275,721 $1,826,945 $1,208,043 $1,419,358Program Income $0 $1,000,000 $1,200,000 $1,200,000Total Available to Distribute/Award $3,830,124 $6,374,337 $5,740,296 $6,400,474

Homeowner Programs Dollar %

Homebuyer Assistance (DPA) $0 0.00% - 0.00% 239,000 4.16% $239,000 4.16% $452,189 6.91%

Homeowner Development (DEV) $434,893 5.42% 400,000 10.44% 250,000 3.92% - 0.00% - 0.00%

Rehabilitation (HOR) $3,350,000 41.76% 1,141,524 29.80% 2,987,489 46.87% $2,565,000 44.68% $3,000,000 46.87%

Rental Programs (REN) $2,553,475 31.83% 1,300,000 33.94% 2,000,000 31.38% 1,847,500 32.18% 1,796,139 20.72%

Other Programs $786,223 9.80% 533,160 13.92% 532,109 8.35% 499,838 8.71% $564,034 9.32%

CHDO Set-Aside (CHDO) $786,223 9.80% 533,160 13.92% 532,109 8.35% 499,838 8.71% 567,167 9.32%TBRA (TBR) $0 0.00% - 0.00% - 0.00% - 0.00% (3,133) 0.00%MFA R&D Programs (R&D) $0 0.00% - 0.00% - 0.00% - 0.00% - 0.00%

CHDO Operating (COE) $200,000 2.49% 100,000 2.61% 150,000 2.35% 135,733 2.36% 90,000 3.11%

Administration (ADM) $697,177 8.69% 355,440 9.28% 454,739 7.13% 453,225 7.90% $498,112 7.94%

TOTAL ACTIVITY DISTRIBUTIONS $8,021,768 100.00% 3,830,124 100.00% 6,374,337 100.00% $5,740,296 100.00% $6,400,474 94.87%DIFFERENCE $0 0.00% - 0.00% - 0.00% - 0.00% - 0.00%

GRAND TOTAL $8,021,768 100.00% 3,830,124 100.00% 6,374,337 100.00% $5,740,296 100.00% $6,400,474 100.00%

$1,730,283$8,021,768

Proposed Amounts

$5,241,485$1,050,000

2018

Run Date/Time: 6/5/2018 3:56 PM

S:\Everyone\Board Agenda items and Board Committees\Board Packets\2018\June\6.a. Proposed 2018 LIHTC Awards & Loans - Table 2- Overview

Per UnitPer Gross

Square Foot (GSF)

NC 70 Los Alamos 14,329,930$ 12,976,314$ 185,375.91$ 146.19$ 9,238,460$ 1,049,930$ -$ -$ -$ -$ -$ -$ 1,049,930$ NC 80 Taos 14,090,000$ 12,557,341$ 156,966.76$ 147.00$ 10,980,252$ 1,150,000$ -$ -$ -$ -$ -$ -$ 1,150,000$ NC 80 Albuquerque 16,187,728$ 15,376,080$ 192,201.00$ 140.24$ 9,689,022$ 1,019,999$ 600,000$ 1,000,000$ -$ -$ 1,275,000$ -$ 3,894,999$ AR 100 Santa Fe 16,515,173$ 15,856,196$ 158,561.96$ 192.64$ 10,258,520$ 1,115,168$ -$ -$ -$ -$ -$ -$ 1,115,168$ AR 80 Carlsbad 15,289,314$ 14,848,046$ 185,600.58$ 250.99$ 7,199,280$ 800,000$ 400,000$ -$ -$ -$ 1,275,000$ -$ 2,475,000$ AR 36 Placitas (Hatch) 5,820,195$ 5,536,140$ 153,781.67$ 156.23$ 4,202,307$ 472,169$ 1,500,000$ 1,000,000$ -$ -$ -$ 2,972,169$

12,657,266$

Type of Project Cost per GSFNew Construction 144.48$ Acquisition/Rehab 199.95$

1 New Construction = NC

Acquisition/Rehab = AR2 Low Income Housing Tax Credit Equity - Not included in Total 9% LIHTC Allocation & MFA Loans column3 Community Housing Development Corporation4 New Mexico Housing Trust Fund

5 National Housing Trust Fund6 Preservation Revolving Loan Fund

SUMMARY OF PROPOSED 2018 LIHTC & LOAN ALLOCATIONS

ProjectNC, AR,

or NC/AR1Total # of Units

LocationTotal

Development Cost

Total Development

Cost w/o Land, Reserves, & Commercial

Costs

Cost w/o Land, Reserves, & Commercial Costs

LIHTC Investor Equity2 PRLF6

Total 9 % LIHTC

Allocation & MFA Loans

Risk Share Nat'l HTF5

Villa Consuelo

9% LIHTC Allocation

HOME Loan (inc CHDO3)

NM HTF4 Primero

Canyon Walk ApartmentsHerdner 80Nuevo Atrisco

165,981$

Parkside Place ApartmentsValle Verde I Apartments

Total

Average Costs for all 2018 Applications w/o Land, Reserves, and Commercial Costs

Cost per Unit178,181$

New Mexico Mortgage Finance Authority 344 Fourth St. SW, Albuquerque, NM 87102 tel. 505.843.6880 toll free 800.444.6880 fax 505.243.3289 housingnm.org

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MEMORANDUM

TO: MFA Board of Directors Through: Allocation Review Committee – April 25, 2018 Policy Committee – March 22, 2018 Contracted Services & Credit Committee- June 5, 2018 (Informational Only) FROM: Susan H. Biernacki, Tax Credit Program Manager DATE: June 5, 2018 SUBJECT: Proposed 2018 Low Income Housing Tax Credit (LIHTC) awards Recommendation:

Staff, by and through MFA’s Allocation Review Committee (“ARC”), requests approval of six (6) LIHTC awards, attached hereto as Table 7A, approval of a forward allocation of 2019 tax credits in the amount of $1,259,545, and approval of five (5) projects for the waitlist, attached hereto as Table 7B.

Background:

In accordance with the 2018 State of New Mexico Housing Tax Credit Program Qualified Allocation Plan (QAP), MFA accepted applications for the competitive 9% Tax Credit round submitted by February 13, 2018. Each application was reviewed for threshold requirements1, scored, and underwritten to test financial feasibility and determine the maximum allowable tax credit award.

Threshold issues were discussed with legal counsel and, pursuant to Section IV.C.5 of the QAP, Applicants were allowed a deficiency correction period to remedy correctable threshold issues. All correctable threshold deficiencies identified were remedied. In addition, supplemental information requests were made pursuant to Section IV.C.6 of the QAP. The information provided in connection with these supplemental information requests was satisfactory. The results of staff’s rating and ranking were reviewed and approved by the ARC at their meeting on April 25, 2018. The ARC approved a motion to recommend six projects for award, forward allocations and waitlisted projects, as presented herein to the Board of Directors. Preliminary award and wait list letters were mailed on April 26, 2018,

1 Threshold requirements are discussed in Section III.C. of the QAP and include the following: (i) site control; (ii) appropriate zoning; (iii) all fees current; (iv) minimum project score; (v) applicant eligibility; (vi) financial feasibility; and (vii) pre-application requirements.

2

which letters outlined MFA’s appeal process, all as described in Section IV.F.4 of the QAP. One appeal was filed by ZHA LIHTC #3 by the appeal deadline of May 7, 2018. The ARC convened an appeal hearing on May 16, 2018 and ruled in favor of MFA. Concurrent with this process, MFA staff conducted site visits at each of the recommended six (6) sites; photos with summary information are attached to this memo. In addition, staff commissioned independent third party market studies for each of the six projects proposed for award. Each market study contained a delineation of the particular market area and discussion of market area economy (including population and household trends and household income distribution), a demand analysis based on capture rates of size appropriate, income eligible renter households, an absorption rate estimate, a competitive rental market analysis and operating expense analysis. Each study confirmed the subject’s rental rates are at or below achievable rents and confirmed market feasibility.

As detailed in the attached Table 1, 2018 Housing Tax Credit Ceiling, MFA began the tax credit round with an estimated balance of $4,347,721. As discussed below, staff recommends the allocation of all 2018 tax credits plus a forward allocation of $1,259,545 of 2019 tax credits in order to fully fund the top three (3) ranking new construction projects and the top three (3) ranking rehabilitation projects.

Discussion:

A. Overview-

• Demand for Tax Credits in 2018 was down slightly in comparison to 2017. MFA received 11 applications this year requesting a total of $10,028,192 in annual tax credits vis-à-vis 2017 applications totaling $12,349,192.

• The ratio of requests to ceiling (i.e. $4,347,721) this year was 2.3:1, down from 3.86:1 last year.

• Average cost per unit (new construction) this year is $188,151, up from $183,914 in 2017 and $186,332 in 2016. No project exceeds MFA’s cost limits as defined in Section IV.C.2 of QAP.

• Average project size remained constant at 71.4 units as compared with 2017.

• All 11 projects were determined to be “Eligible” for tax credit awards; no applications were rejected.

• At the conclusion of the ARC meeting held on April 25, 2018, ARC passed a motion recommending approval of six (6) proposed awards as presented in Table 7A, approval of the 2018 waitlist as presented in Table 7B, and approval of a forward allocation in the amount of $1,259,545 in 2019 tax credits in order to fully fund the six (6) awards.

• The remaining five (5) eligible projects will make up the wait list.

• The 10% Non-Profit Set-Aside was achieved and no awards are being made under the USDA Rural Development Set-Aside.

• All of the recommended projects have a sponsor or co-sponsor that is a non-profit entity, local housing authority or local tribally designated housing entity (TDHE).

3

• Of the six (6) recommended projects, one (1) project will serve households with special housing needs, one (1) project will serve senior households and four (4) projects will serve households with children.

• The six (6) recommended projects are located in the following counties: Bernalillo, Santa Fe, Los Alamos, Taos, Dona Ana and Eddy. Two projects are located in urban areas (Albuquerque and Santa Fe) and four projects are located in rural areas (Los Alamos, Taos, Carlsbad and Placitas (Hatch).

• All of the projects are in Areas of Statistically Demonstrated Need.

• The six (6) recommended projects contain unit sizes ranging from 36 to 100 units.

• Three (3) of the six (6) recommended projects involve new construction (one project with 70 units and two projects with 80 units each, for a total of 230 units, of which 218 are affordable units), and three (3) of the six (6) recommended projects involve rehabilitation (100, 80 and 36 units, for a total of 216 units, all of which are affordable).

• A total of 446 units will be constructed or rehabilitated and 434 of these will be low income units. The table below details the unit rental restrictions for the units to be constructed or rehabilitated.

Unit Rental Restrictions for Recommended Projects

30% 40% 50% 60% Not Employee

AMI AMI AMI AMI Restricted Occupied

69 15 263 87 12 0

15.5% 3.3% 58.9% 19.5% 2.7% 0%

B. Tax Credit Efficiency-

All six (6) projects recommended for award qualified for points under the project selection criterion no. 20 for Efficient Use of Tax Credits. The table below outlines the tax credit efficiency for each of the six (6) projects.

Rehabilitation:

Project Name: Gross Sq. Ft.

Applicable Fraction

Adj. Sq. Ft.

Low Income Units

Tax Credit Request

Tax Credits/Adj.

Sq. Ft.

Tax Credits/Low Incom

Unit

Villa Consuelo 82,361 100% 82,361 100 $1,115,168 $13.54 $11,151.68

Parkside Place 59,158 100% 59,158 80 $800,000 $13.52 $10,000.00

Valle Verde 35,435 100% 35,435 36 $472,169 $13.32 $13,115.80

4

New Construction:

Project Name: Gross Sq. Ft.

Applicable Fraction

Adj. Sq. Ft.

Low Income Units

Tax Credit Request

Tax Credits/Adj.

Sq. Ft.

Tax Credits/Low Incom

Unit

Canyon Walk 88,766 100% 85,995 80 $1,049,930 $12.21 $13,124.12

Herdner 80 85,426 100% 81,980 80 $1,150,000 $14.03 $14,375.00

Nuevo Atrisco 107,0522 84% 90,802 68 $1,019,999 $11.23 $14,999.99

C. Total Development Costs-

The Total Development Cost Analysis (cost/gross square foot) for each of the recommended Projects is as follows:

2 Gross square footage does not include commercial space.

% TDC Cost/GSF*29.7% 59.53$ 37.7% 75.64$ 13.3% 26.74$ 2.7% 5.41$ 3.8% 7.68$ 0.5% 0.91$ 1.9% 3.79$ 0.0% -$ 2.1% 4.12$ 8.4% 16.82$

100.0% 200.64$ 96% 192.64$

Total Development Costs (TDC) $16,515,173TDC w/o Land, Reserves & Commercial $15,856,196

*Gross square footage: 82,361

Syndication-Related Costs (organization, bridge loan, tax opinion, etc) $0Reserves (rent-up, operating, replacement, escrows, etc) $338,977Developer Fees (inc consultant fees) $1,384,796

Construction Financing Costs (interest, insurance, inspections, fees, etc) $632,397Permanent Financing Costs (fees, title/recording, etc) $75,000Other Soft Costs (tax credit fees, environmental reports, appraisals, accounting, etc) $312,250

Construction Hard Costs $6,225,923Other Construction Costs (contractor O&P, general req, GRT, landscaping, furnishings, $2,200,830Professional Services/Fees (architect, engineer, real estate legal, etc) $445,000

TOTAL DEVELOPMENT COST INFORMATION SUMMARY

Project: Villa Consuelo, Santa Fe, Rehabilitation TotalAcquisition Costs (land, building acquisition, & other acquisition costs) $4,900,000

5

% TDC Cost/GSF*38.1% 98.55$ 28.9% 74.69$ 10.1% 26.20$ 2.3% 6.00$ 5.0% 12.88$ 0.1% 0.38$ 3.2% 8.23$ 0.1% 0.34$ 2.3% 5.84$ 9.8% 25.36$

100.0% 258.45$ 97% 250.99$


Developer Fees (inc consultant fees) $1,500,000Total Development Costs (TDC) $15,289,314

TDC w/o Land, Reserves & Commercial $14,848,046

Other Soft Costs (tax credit fees, environmental reports, appraisals, accounting, etc) $486,611Syndication-Related Costs (organization, bridge loan, tax opinion, etc) $20,000Reserves (rent-up, operating, replacement, escrows, etc) $345,268

Professional Services/Fees (architect, engineer, real estate legal, etc) $355,000Construction Financing Costs (interest, insurance, inspections, fees, etc) $761,878Permanent Financing Costs (fees, title/recording, etc) $22,500

Acquisition Costs (land, building acquisition, & other acquisition costs) $5,830,000Construction Hard Costs $4,418,307Other Construction Costs (contractor O&P, general req, GRT, landscaping, furnishings, $1,549,750


Project: Parkside Place, Carlsbad, Rehabilitation Total

% TDC Cost/GSF*19.9% 32.74$ 39.0% 64.00$ 13.7% 22.45$ 3.1% 5.13$ 5.0% 8.22$ 0.6% 0.99$ 5.8% 9.47$ 0.7% 1.20$ 2.7% 4.46$ 9.5% 15.60$

100.0% 164.25$ 95% 156.23$

Construction Hard Costs $2,267,928Other Construction Costs (contractor O&P, general req, GRT, landscaping, furnishings, $795,522Professional Services/Fees (architect, engineer, real estate legal, etc) $181,664


Project: Valle Verde I, Placitas, Rehabilitation TotalAcquisition Costs (land, building acquisition, & other acquisition costs) $1,160,000

Syndication-Related Costs (organization, bridge loan, tax opinion, etc) $42,500Reserves (rent-up, operating, replacement, escrows, etc) $158,055Developer Fees (inc consultant fees) $552,894




6

% TDC Cost/GSF*7.4% 11.94$ 57.8% 93.26$ 15.7% 25.37$ 2.3% 3.70$ 4.1% 6.56$ 0.4% 0.62$ 0.8% 1.29$ 0.0% -$ 2.0% 3.31$ 9.5% 15.38$

100.0% 161.43$ 91% 146.19$







Project: Canyon Walk, Los Alamos, New Construction TotalAcquisition Costs (land, building acquisition, & other acquisition costs) $1,060,000

% TDC Cost/GSF*9.3% 15.33$ 55.0% 90.70$ 16.0% 26.37$ 2.3% 3.87$ 4.0% 6.57$ 0.3% 0.44$ 0.9% 1.48$ 0.0% -$ 1.6% 2.61$ 10.6% 17.56$

100.0% 164.94$ 89% 147.00$


Project: Herdner 80, Taos, New Construction TotalAcquisition Costs (land, building acquisition, & other acquisition costs) $1,310,000






7

Summary:

Staff and the ARC recommend approval of the following, all in accordance with ARC recommendations:

I. Approval of the following three (3) top ranking rehabilitation and top three (3) new construction projects, as follows: 1. Villa Consuelo, rehabilitation, Santa Fe $1,115,168 2. Parkside Place, rehabilitation, Carlsbad 800,000 3. Valle Verde, rehabilitation, Placitas (Hatch) 472,169 4. Canyon Walk, new construction, Los Alamos 1,049,930 5. Herdner 80, new construction, Taos 1,150,000 6. Nuevo Atrisco, new construction, Albuquerque 1,019,999

Total $5,607,266

II. Approval of a forward allocation of 2019 tax credits in the amount of $1,259,545 so that Herdner 80, Nuevo Atrisco and Valle Verde I may be fully funded.

III. Approval of five (5) projects, as described in Table 7B, for the waitlist.

Attachments:

1. Table 1 – 2018 LIHTC Ceiling 2. Tables 7A and 7B – 2018 Proposed Initial LIHTC Awards and Wait List 3. Photos with Brief Summaries

% TDC Cost/GSF*0.0% 0.04$ 60.8% 87.01$ 18.1% 25.86$ 5.0% 7.11$ 4.5% 6.44$ 0.2% 0.29$ 1.1% 1.56$ 0.2% 0.27$ 1.9% 2.75$ 8.2% 11.72$

100.0% 143.04$ 95% 140.24$



Syndication-Related Costs (organization, bridge loan, tax opinion, etc) $30,000Reserves (rent-up, operating, replacement, escrows, etc) $311,143Developer Fees (inc consultant fees) $1,326,000




Project: Nuevo Atrisco, ABQ, New Construction TotalAcquisition Costs (land, building acquisition, & other acquisition costs) $5,000

Table 1

6/5/2018

Population Credit $Component Per Capita Amount BalancePopulation Allocation 2,088,070 2.40 5,011,368$ 5,011,368$ FY2018 Omnibus Spending Bill (12.5% increase) 2.70 626,421$ 5,637,789$ 2017 Forward Allocations 1,314,437$ 4,323,352$ National Pool (2017) 22,619$ 4,345,971$ Returned or Unused Credits from Prior Years 1,750$ 4,347,721$

Set Aside AchievedNonprofit Set Aside 10.00% 563,779$ USDA Rural Development Set Aside* 10.00% -$ -$

2018 Housing Tax Credit Ceiling as of 5/14/2018

Table 7A2018 LIHTC Awards - reduced by 2017 forward allocations and increased by Omnibus bill amount (12.5%)

Total Ceiling: $4,347,721 50% Ceiling: $2,173,861

Rank Score Project Developer Units Threshold AmountTax Credit

BalanceTie Breaker

Calculation** Proposed Status

1 166 Canyon Walk, Los Alamos

Bethel Development & SW Regional 70 Yes $1,049,930 $1,123,931 N/A 2018 Award

2 158 Herdner 80, Taos

Tierra Realty Trust & Golden Spread Rural

Frontier Coalition80 Yes $1,150,000 -$26,070 $14,090,000/80 =

$176,125/unit 2018 Award

3 158 Nuevo Atrisco, ABQ YES Housing 80 Yes $1,019,999 -$1,046,069 $16,093,149/80 =

$201,164/unit 2018 Award Award #6

Subtotal $3,219,929


Rank Score Project Developer Threshold AmountTax Credit

BalanceTie Breaker

Calc. Proposed Status

1 180 Villa Consuelo, Santa Fe

SF Civic Housing Authority 100 Yes $1,115,168 $1,058,693 N/A 2018 Award

2 177 Parkside Place, Carlsbad

Chelsea Inv. Corp. & Eastern Regional HA 80 Yes $800,000 $258,693 N/A 2018 Award

3 171Valle Verde I, Placitas (Dona

Ana)Tierra del Sol Housing Corp.

36 Yes $472,169 -$213,477 N/A 2018 Award Award #5

446 Subtotal $2,387,337

Grand Total $5,607,2662019 Forward

Allocations-$1,259,545

New Construction:

Acq/Rehab:

**2018 QAP provides If tax credits remain in either track/ category, these remaining tax credits, may, in MFA’s discretion, be pooled. Thereafter, MFA may select one or more Projects to be awarded tax credits, including any forward allocation of tax credits, using the following methodology. MFA will review the next highest scoring Project from each track /category and will determine which Project has the highest “proportionate” score; that is, the greater percentage of scoring points achieved versus possible scoring points available in the respective track/category. In the event of a tie in this calculation, the remaining tax credits will be awarded to the new construction Project, which includes adaptive reuse Projects. In the event MFA chooses, in its sole discretion, to forward allocate tax credits to an additional project, the next highest scoring project in the rehabilitation category will be awarded. In the alternative, MFA may determine, in its sole discretion, to not “pool” remaining tax credits and to not forward allocate the following year’s tax credits, even if that means that MFA chooses to not fully allocate any year’s Annual Credit Ceiling. Any application of the tie breaker process and/or decision to forward allocate tax credits lies solely within MFA’s inherent discretion and is not subject to further review.

Table 7B2018 LIHTC Waitlist w/ Omnibus LIHTC Increase


Rank Score Project Developer Units Threshold AmountTax Credit

BalanceTie Breaker

Calculation** Proposed Status

4 153 Siler Yard, Santa Fe NM Interfaith 65 Yes $907,000 -$1,953,069 N/A Waitlist

5 152 ZHA LIHTC #3, Zuni Pueblo

Zuni Housing Authority 35 Yes $931,495 -$2,884,564 N/A Waitlist

6 144 Bridge Blvd, ABQ

Greater ABQ Housing Partnership 52 Yes $841,449 -$3,726,013 N/A Waitlist

Subtotal $2,679,944


Rank Score Project Developer Threshold AmountTax Credit

BalanceTie Breaker

Calc. Proposed Status

4 163 Woodleaf Apts. Hobbs

Chelsea Inv. Corp. & Eastern Regional HA 152 Yes $1,150,000 -$1,363,476 N/A Waitlist

5 161 Desert Hope, Las Cruces Mesilla Valley PHA 36 Yes $591,000 -$1,954,476 N/A Waitlist

340 Subtotal $1,741,000

Grand Total $4,420,944

New Construction:

Acq/Rehab:

Villa Consuelo, Rehab, Santa Fe, Developer = Santa Fe Civic Housing Auth., Seniors, 100 units,$16,515,174 TDC [includes $4.58mm for buildings], $165,151/unit [$119,351/ unit w/o buildings], constructed in 1977, $1,115,168 LIHTC Major Building System Concerns: 1- Building Site – accessibility issues addressed, additional signage; 2- Mechanical Systems- HVAC, water heaters replaced; 3- Unit Interiors – reconfigured to include new kitchen, bath, cabinets, plumbing, lighting, and flooring; 4- Exterior envelope- windows and doors replaced, spray insulation

1

Parkside Place, Rehab, Carlsbad, Developer = Chelsea Inv. Corp & Eastern Regional Housing Auth., Special Needs, 80 units, $15,289,314 TDC [includes $5.734mm for buildings], $191,116/unit [$119,441/unit w/o buildings], constructed in 1969 &1979, $800,000 LIHTC

Major Building System Concerns: 1- Mechanical Systems- furnaces, water heaters, and evaporative coolers replaced; 2- Building exteriors- new roof, doors and windows replaced; stairs repaired/replaced; additional stair cases added; 3- Building interiors- new kitchen countertops and cabinets, flooring, fixtures, energy efficient appliances; 4- Building site- accessibility issues addressed, perimeter fencing

2

Valle Verde I, Rehab, Placitas (near Hatch), Developer = Tierra del Sol Housing Corp., Families w/ Children, 36 units, $5,820,195 TDC [includes $1.034mm for buildings], $161,672/unit [$132,949/unit w/o buildings], constructed in 1979, $472,169 LIHTC

Major Building System Concerns: 1- Building Site – accessibility issues addressed, new signage, additional dumpster, seal parking lot; 2- Mechanical Systems- HVAC, water heaters replaced; 3- Unit Interiors – flooring, kitchen cabinets, lighting, fixtures replaced; 4- Exterior envelope- windows replaced, new stucco, new courtyard at unit entrances

3

Canyon Walk, New Construction, Los Alamos, Developer= Bethel Dev. & Southwestern Regional Housing; Families w/ Children, 70 units, $14,329,930 TDC, $204,713/unit, $1,049,930 LIHTC

4

Herdner 80, New Construction, Taos, Developer = Tierra Realty Trust & Golden Spread Rural Frontier Coalition, Families w/ Children, 2 sites, 80 units, $14,090,000 TDC, $176,125/unit; $1,150,000 LIHTC

5

Nuevo Atrisco, New Construction, ABQ, Developer = Yes Housing, Families w/ Children, 68 + 12 market units, $16,187,728 TDC, $196,090/unit,** $1,019,999 LIHTC

6

**Without commercial costs

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2018 RENTAL AWARD SUMMARY

Project Name & Address

Valle Verde I Apartments 350 (346) Bianes St., Buildings 1-11, Placitas, NM 87043 – Dona Ana County

Proposed Awards

$1,500,000 NMHTF Rate 3.00% Fixed

$1,000,000 Primero Investment Fund Rate 2.50% Fixed

Borrower Valle Verde, LLLP (to be formed) will be owned .01% by Valle Verde LLC, as General Partner, with Tierra del Sol Housing Corporation as its Sole Member; and 99.99% by a to-be-determined tax credit investor, as Limited Partner.

Management The J. L. Gray Company (JL Gray) is a New Mexico corporation formed in 1985. Originally, JL Gray managed only a small portfolio of eight multifamily properties- totaling 320 apartments, owned by the principals of the company. Since then, the company’s portfolio has grown to 108 properties- totaling 3,847 apartments. Today, JL Gray is a fully integrated real estate company that acquires, develops, and manages multifamily residential communities throughout the southwestern U.S.

Developer

Tierra del Sol Housing Corporation (TDS) is a private, nonprofit organization incorporated in 1973 and 1980, in New Mexico and Texas respectively, and headquartered in Las Cruces, NM. The company is a regional housing and community development organization serving low income persons residing in distressed and underserved communities by providing affordable housing and community development through construction activities, lending, training and employment opportunities. The majority of TDS’s services are concentrated in southern New Mexico and west Texas counties located along the U.S. border with Mexico. TDS’s programs and services include Single Family Home Ownership Development, Home Ownership Counseling, Single Family Home Rehabilitation and Multifamily Rental Housing Development & Asset Management. The company currently maintains a staff of 29, including two certified loan underwriters, two loan counselors, and a GB98 and GB2 certified general building contractor. Senior staff possesses many years’ experience in affordable housing development and management. TDS’s audited financials for the fiscal year ended 9/30/2016 show $14.3MM in assets, unrestricted cash of $793K, a net worth of $9.2MM, a strong debt-to-worth ratio of .56 : 1.00, good profit and a positive traditional cash flow. Audited financials for FYE 9/30/2017 show $13.7MM in assets, unrestricted cash of $323K, a net worth of $9.2MM, a strong debt-to-worth ratio of .49 : 1.00, a modest profit and a positive traditional cash flow.

Project Type & Size

Acquisition & Rehabilitation of a 36-unit USDA Rural Development Project serving Families with Children and providing HUD Project Based Section 8 rental subsidy to 35 of the 36 units. All 36 units are income-restricted to households earning 50% or less of Area Median Income (AMI).

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Project Description

The Valle Verde I Apartments project consists of 10 single-story residential buildings, totaling 36 units, and one single-story management-office/laundry room building. All 36 units are income-restricted to households earning 50% or less of AMI, and are comprised of 6 one-bedroom units, each consisting of approximately 574 sq. ft.; 12 two-bedroom units, each consisting of approximately 690 sq. ft.; 16 three-bedroom units, each consisting of approximately 868 sq. ft.; and 2 four-bedroom units, each consisting of approximately 1,115 sq. ft. Thirty-five of the 36 units receive HUD Project Based Section 8 subsidies. The remaining unit, formally a manager’s unit, will be converted to a 50% AMI unit, without project-based subsidy. Valle Verde I was originally constructed in 1979 as a USDA Rural Development 515 project. The property received some rehabilitation in 2010 when TDS obtained a $385K HOME loan and later, in 2014, when they obtained an additional $191K USDA Rural Development loan. Funds from these loans were used to replace the roof systems, windows, HVAC and a small percentage of kitchen/bathroom cabinetry. The proposed acquisition/rehab project property is to be acquired by a related limited liability limited partnership. The proposed rehabilitation work will include the replacement and/or improvement of the buildings’ stucco and HVAC systems (more efficient systems to meet HERS rating), as well as the replacement of light fixtures, plumbing fixtures, water heaters, ranges & range hoods, flooring, kitchen and bathroom cabinetry, sinks, bathroom exhaust fans, venting of the range hoods and exhaust fans to the exterior, reconfiguring two handicap accessible units, and the interior patching and painting of units. In addition, the management office/laundry building will be remodeled and expanded from 800 sq. ft. to 2,050 sq. ft., to include a clubhouse area providing community space for events/activities/bbq’s, computer learning and services. Improvements to the property will include a youth soccer field, a half-court basketball court, a walking path/trail, a community garden and a playground for small children. The MFA-ordered, Novogradac & Company market study, dated 4/20/18, advises that the subject project is feasible as presented. The report concludes that, once renovated, Valle Verde I Apartments will be a good-quality development, offering newly-renovated housing to local families. As a newly-renovated development, the project will not suffer from deferred maintenance, functional obsolescence, or physical obsolescence. The project’s site is located in close proximity to services, employment, education and retail. The offered amenities are appropriate and sufficient for the market and the intended tenants. Renovation of the project’s units will positively impact the surrounding area by improving the project’s neighborhood and by preserving much needed affordable housing. The total general population is projected to increase from market entry through 2022. As the total population and number of households continue to grow, the demand for housing units will continue to increase. The project currently maintains a waiting list of 25 households and management reports a strong demand for affordable housing in the area.

Affordability Requirements

NMHTF Requirements: Thirty-six units reserved for households earning 50% or less of AMI for which a Land Use Restriction Agreement (LURA) will be filed in Doña Ana County. The NMHTF affordability period is 30 years; 20 as required by Affordable Housing Act Rules and 10 for MFA’s extended affordability period (i.e. in concurrence with the loan term) and starts on the date that the architect of record issues a certificate of substantial completion AIA Form G704.

Primero Requirements: Thirty-six units reserved for households earning 50% or less of AMI for which a Land Use Restriction Agreement (LURA) will be filed in Doña Ana County. The Primero affordability period is 5 years and will start on the date that the architect of record issues a certificate of substantial completion AIA Form G704.

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Repayment and Disbursement

NM HTF Loan: Payments: Interest monthly during the construction period not to exceed 24 months; 360 equal principal and interest payments, based on the $500K permanent loan, during the permanent loan period. Outstanding P&I due at the earlier of maturity, refinance or sale of the project. Disbursement: Multiple disbursements upon evidence of costs incurred, not more frequently than monthly.

Primero Loan: Payments: Interest monthly during the construction period not to exceed 24 months. Outstanding P&I due at the earlier of maturity, refinance or sale of the project. Disbursement: Multiple disbursements upon evidence of costs incurred, not more frequently than monthly.

Special Conditions

1. All loans are subject to MFA’s final underwriting for project feasibility if needed. Loan amounts may be reduced if the financing gap decreases, and/or terms (i.e. interest rate & amortization) may be revised in line with projected cash flow at closing;

2. Any changes or additions to the following development team members listed in the loan application must be approved by MFA: developer, contractor, management company, consultant or architect;

3. Financing commitments acceptable to MFA prior to funding on all funding sources; 4. Acceptance of 2018 allocation of Low Income Housing Tax Credits (LIHTC); 5. Approval of plans/construction monitoring/draws by a third party acceptable to MFA (i.e.

hired by MFA, investor or primary construction lender) and shared with MFA. Cost to be paid by applicant;

6. Other conditions as may be determined by staff; and 7. Subject to availability of funds.

Additional Conditions: NM HTF Loan 8. Loan to be in second lien position; 9. Tierra Del Sol Housing Corporation must provide a guarantee during the construction

period. Additional Conditions: Primero Loan

10. Loan to be in third lien position; and 11. Tierra Del Sol Housing Corporation must provide a guarantee during the construction

period. MFA Commitments to Other Projects

Tierra del Sol Housing Corporation 2007 HOME loan award- Tierra Encantada- Loan HM105- $252,496 2008 LIHTC- Alta Tierra- $345, 908* 2008 LTTF loan award- Alta Tierra- Loan #LTTF08002- $189,031 2008 NMHTF loan award- Alta Tierra- Loan #HTF08007- $416,728 2008 HOME loan award- Valle Verde I- Loan #HM122- $302,653 2009 HOME loan award- Villa de Tularosa- Loan #HM110- $599,900 2010 Primero Grant- Villa de Tularosa- $33,500* 2011 Primero Grant- Villa de Tularosa- $63,300* 2012 Primero Grant- Villa del Sol- $75,000* 2014 LIHTC- Cielo Del Oro- $370,519* 2014 Risk Share loan award- Cielo Del Oro- Loan #RS098- $419,070 2014 NMHTF loan award- Cielo Del Oro- Loan #HTF14005- $470,759 2014 HOME loan award- Cielo Del Oro- Loan #HM151- $431,250 2015 LIHTC- El Camino Real- $884,729* 2016 NMHTF loan award- Horizon Apts (fka Eunice)- Loan #HTF16004- $702,187 2016 Governor’s Innovations in Housing Grant- $696,000* 2016 Primero loan award- Vado New Horizons (fka Hacienda Heights)- $500,000 (Notes: Risk Share loans carry 10% MFA risk - loan balances as of 4/30/18)

MFA Exposure Total MFA Exposure: $4,284,074 (excludes LIHTC, grants and loans pending approval). Prepared by George Maestas, Program Manager Date 5/24/2018 Reviewed by Shawn Colbert, Director of Housing Development

Placitas, NM

5,820,195$

4% or 9%

9%NC =

AR =

AMI =

MR =

04/30/18 $3,410,602

MFA Guidelines Loan Request

$1,500,000 $1,500,000

3.0% 3.0%

N/A N/A

2 yr construct, 30 yr

perm2 yr construct, 30 yr perm

Mthly during perm Mthly during perm

Subordinate allowed 2nd lien position

Min 20 yrs, 60% AMI Min 30 yrs, 50% AMI

1.2 to 1.4 to 1 on all

must-pay debt*

within guidelines Yrs 1-12

(see notes)

50-100 points 58

04/30/18 $3,576,099


$1,000,000 $1,000,000

2.5% 2.5%

1.0% 1.0%

2 yr construction 2 yr construction

N/A N/A

Subordinate allowed 3rd lien position

5 years, 40% of units at

60% AMI

5 years, 100% of units at

50% AMIN/A- Constr only N/A- Construction only

N/A N/A

% TDC Cost/GSF*

20% 32.74$

39% 64.00$

14% 22.45$

3% 5.13$

5% 8.22$

1% 0.99$

6% 9.47$

1% 1.20$

3% 4.46$

9% 15.60$

100% 164.25$

95% 156.23$

35,435

Valle Verde I Apartments

*Gross square footage:

Construction Financing Costs (interest, insurance, inspections, fees, etc)

Permanent Financing Costs (fees, title/recording, etc)

Other Soft Costs (tax credit fees, environmental reports, appraisals, accounting, etc)

Syndication-Related Costs (organization, bridge loan, tax opinion, etc)

Professional Services/Fees (architect, engineer, real estate legal, etc)

TDC w/o Land, Reserves & Commercial 5,536,140$

Reserves (rent-up, operating, replacement, escrows, etc)

Developer Fees (inc consultant fees)

NUMBER OF NMHTF UNITS: 36

Project:

Total Development Costs (TDC)

291,220$

35,000$

335,412$

42,500$

158,055$

552,894$

5,820,195$

Area Median Income

Maximum Loan Amount


NM HOUSING TRUST FUND (NMHTF) LOAN INFORMATION

Scoring Criteria

DSCR

181,664$

Funds Available as of:

Maximum Loan Term

Loan Amortization

Lien Position

Rates

Loan Fees

EXCEPTIONS/CONDITIONS/NOTES

Permanent loan amt $500,000


Total

1,160,000$

2,267,928$

795,522$

Acquisition Costs (land, building acquisition, & other acquisition costs)

Construction Hard Costs

Other Construction Costs (contractor O&P, general req, GRT, landscaping, furnishings, etc)

PROJECT INFORMATION SUMMARY

NC, AR,

or

NC/AR

Total #

Units

Project Name CitySizes

1-BED, 2-BED,

3-BED & 4-BED

LIHTC ALLOC

Total Development Cost

Management

Developer

Valle Verde, LLLP

JL Gray Property Management

Tierra del Sol Housing CorporationNew Construction

Acquisition/Rehab

Market Rate apartments

Rates

DSCR

1979

Valle Verde I Apartments

Borrower

Target AMIs

YEAR BUILT (AR)

$ 472,169

50%AR 36

*1.15 if permitted by investor Falls

to 1.18, 1.15, & 1.13 respectively Yrs 13-15, but

energy efficiency improvements should decrease

operating expense and improve DSCR

PRIMERO INVESTMENT FUND LOAN INFORMATION NUMBER OF PRIMERO UNITS: 36



Maximum Loan Amount

Scoring Criteria

Loan Fees

Maximum Loan Term

Loan Amortization

Lien Position Construction only


G:\Loan & Grant Programs\PROPERTIES\VALLE VERDE I APARTMENTS 2018\7- Underwriting\Approvals & UW\Valle Verde I Apartments - Board Presentation Format - Tables

% of Total Per Unit

4.7% 7,527$

NMHTF 25.8% 41,667$

17.2% 27,778$

12.9% 20,833$

0.0% -$

6.3% 10,231$

28.9% 46,692$

4.3% 6,944$

0.0% -$

0.0% -$

0.0% -$

100.0% 161,672$

% of Total Per Unit

Rocky Mountain CRC 8.6% 13,889$

NMHTF loan 8.6% 13,889$

0.0% -$

0.0% -$

0.0% -$

6.3% 10,231$

72.2% 116,719$

4.3% 6,944$

0.0% -$

0.0% -$

0.0% -$

100.0% 161,672$

Other source

Other source

Construct. Lender - 1st Lien

2nd Lien holder

3rd Lien holder

4th Lien holder

5th Lien holder

Tierra del Sol Housing Corp.

Ventana Fund loan

CONSTRUCTION SOURCES

Project:

Pioneer Bank

Other source

Total Permanent Sources

250,000$

5,820,195$

368,311$

4,201,884$

5th Lien holder

Deferred Developer Fee

LIHTC Equity

Tierra del Sol Housing Corp. - Soft LoanOther source

Other source

Other source


LIHTC Equity

Other source

Valle Verde I Apartments Total

1,680,923$

250,000$

Paid in during construction period

Tierra del Sol Housing Corp. - Soft Loan

270,961$

Other source

368,311$

3rd Lien holder

4th Lien holder

Total Construction Sources 5,820,195$

500,000$

PERMANENT SOURCES

Project: Valle Verde I Apartments Total

500,000$

Perm Lender - 1st Lien

2nd Lien holder

1,500,000$

1,000,000$

750,000$

MFA Primero loan

G:\Loan & Grant Programs\PROPERTIES\VALLE VERDE I APARTMENTS 2018\7- Underwriting\Approvals & UW\Valle Verde I Apartments - Board Presentation Format - Tables

Valle Verde I Apartments Gross Sq. Footage: 35,435

Placitas, NM TOTAL COST COST/GSF

126,000$ 3.56$

1,034,000$ 29.18$

-$

1,160,000$ 32.74$

50,000$ 1.41$

-$ -$

497,649$ 14.04$

1,720,279$ 48.55$

-$ -$

-$ -$

2,267,928$ 64.00$

49,894$ 1.41$

149,683$ 4.22$

149,683$ 4.22$

226,793$ 6.40$

191,969$ 5.42$

-$

20,000$ 0.56$

7,500$ 0.21$

795,522$ 22.45$

125,174$ 3.53$

23,650$ 0.67$

10,000$ 0.28$

11,500$ 0.32$

11,340$ 0.32$

181,664$ 5.13$

5,000$ 0.14$

5,000$ 0.14$

30,360$ 0.86$

142,500$ 4.02$

15,000$ 0.42$

-$ -$

23,000$ 0.65$

30,000$ 0.85$

5,000$ 0.14$

5,000$ 0.14$

30,360$ 0.86$

291,220$ 8.22$

Appendix A: Development Cost Budget

ACQUISITION COSTS

CONSTRUCTION HARD COSTS

OTHER CONSTRUCTION COSTS

PROFESSIONAL SERVICES/FEES

Construction Contingency

Gross Receipts Tax (GRT)

Landscaping

Furniture, Fixtures, & Equipment

Land Acquisition

Building Acquisition

Other

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

Demolition

Accessory Structures

Site Construction

Buildings and Structures

Off-Site Improvements

Other Costs:

Contractor Overhead

Contractor Profit

General Requirements

CONSTRUCTION FINANCING

Other: Buiding Permit

Other: HERS Rater

Other: Builder's Risk Insurance

Origination\Discount Points

Credit Enhancement

Inspection Fees

Title and Recording

Architect (Design)

Architect (Supervision)

Attorney (Real Estate)

Engineer/Survey

Hazard Insurance

Liability Insurance

Performance Bond

Interest

Legal

Taxes

G:\Loan & Grant Programs\PROPERTIES\VALLE VERDE I APARTMENTS 2018\7- Underwriting\Approvals & UW\Valle Verde I Apartments - Development Cost

Budget.pdf

-$ -$

-$ -$

15,000$ 0.42$

-$ -$

15,000$ 0.42$

5,000$ 0.14$

-$ -$

-$ -$

-$ -$

35,000$ 0.99$

8,500$ 0.24$

4,000$ 0.11$

35,913$ 1.01$

7,000$ 0.20$

250,000$ 7.06$

15,000$ 0.42$

14,999$ 0.42$

335,412$ 9.47$

42,500$ 1.20$

-$ -$

-$ -$

-$ -$

42,500$ 1.20$

TDC before Dev. Fees & Reserves 5,109,246.00$ 144.19$

10,000$ 0.28$

143,055$ 4.04$

-$ -$

-$ -$

5,000$ 0.14$

158,055$ 4.46$

502,894$ 14.19$

-$ -$

50,000$ 1.41$

552,894$ 15.60$

5,820,195$ 164.25$

5,536,140$ 156.23$ TDC w/o Land, Reserves & Commercial

SUBTOTAL

PERMANENT FINANCING COSTS

SOFT COSTS

SYNDICATION

RESERVES

DEVELOPER FEES

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

Other

Other: Soft Cost Contingency


Credit Enhancement

Title and Recording

Legal

Pre-Paid MIP

Reserves and Escrows

Market Study

Other: Capitalized Reserve for Social Services

Relocation Consultant

Other:

Environmental

Bond Premium

Credit Report

Consultant Fee

Total Development Cost (TDC)

Project: Valle Verde I Apartments

Tax Opinion

Rent Up

Operating

Replacement

Escrows/Working Capital

Developer Fee

Tax Credit Fees

Appraisal

Hard Relocation Costs

Accounting/Cost Certification

Organization

Bridge Loan

G:\Loan & Grant Programs\PROPERTIES\VALLE VERDE I APARTMENTS 2018\7- Underwriting\Approvals & UW\Valle Verde I Apartments - Development Cost

Budget.pdf

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2018 RENTAL AWARD SUMMARY

Project Name & Address

Parkside Place 805/710 Hueco Street, Carlsbad, New Mexico 88220- Eddy County

Proposed Awards $400,000 HOME Rate 0.00% $1,275,000 NHTF Rate 0.00% Cash Flow Only

Borrower The borrower, a to-be-formed New Mexico limited liability limited partnership, will be owned .051 percent by Eastern Regional Housing Authority, as Managing General Partner; and .049 percent by a to-be-formed New Mexico limited liability company (owned by Sage Three, LLC and managed by Chelsea Investment Corporation). The Richman Group, as Investor Limited Partner, will own the remaining 99.99 percent.

Management Monarch Properties, Inc. is a privately held Texas corporation chartered in 1982. Monarch is involved with third-party, full service management of multi-family apartment communities throughout Texas, New Mexico and Oklahoma. The corporate office is located in Albuquerque, New Mexico. The total apartment units under management have consistently averaged more than 7,500 with over 280 team members employed.

Developer

The developer, Chelsea Investment Corp. (“Chelsea”), is a for-profit organization incorporated in 1986 by James J. Schmid, CEO. Chelsea is a real estate company focused on the financing and development of affordable housing with asset management, construction, and community investment affiliates. To date, Chelsea has developed over 100 affordable communities throughout California, New Mexico and Arizona and nearly 10,000 units throughout Western United States. Chelsea has developed a variety of rental homes within suburban and urban locations. Some of these developments are obligated to senior housing and/or are supportive housing. Chelsea’s consolidated (i.e. includes affiliates) audited financial statements (unqualified opinion) for FYE 12/31/16 show total assets of $8.3 million, unrestricted cash of $1.8 million, and net worth of $546K. Operating cash flow was positive at $349K and traditional cash flow (i.e. net earnings plus non-cash charges) is positive at $598K. The debt-to-worth ratio is 1.5 to 1.0. Unconsolidated internally prepared statements for Chelsea for nine months ending 9/30/17 show a net operating income of $2.3 million and net income of $2.4 million (i.e. after “Other Revenue/Expenses). The managing general non-profit partner, Eastern Regional Housing Authority (ERHA), serves twelve counties including: Chaves, De Baca, Eddy, Guadalupe, Harding, Lea, Lincoln, Otero, Quay, Roosevelt, Union, and Curry and is one of New Mexico’s three regional housing authorities. EHRA owns and operates two single-site apartment communities, a total of 172 units, located in Hagerman and Hobbs, New Mexico. EHRA also owns and operates 84 units of public housing built on multiple sites within Roswell, Capitan, and Carrizozo, New Mexico. EHRA has administered HUD’s Section 8 Housing Choice Voucher Program, Family Self Sufficiency Program, and Section 8 Homeownership Program for all twelve counties since 1978. Audited financial statements for FYE 6/30/17 show $6.9 million in total assets and a net worth of $2.9 million. Along with a debt-to-worth ratio of 1.4 to 1.0, ERHA had positive operating cash flow of $550K.

Project Type & Size

Parkside Place (“Project”) includes the acquisition and rehabilitation of two existing apartment communities that will be combined into a single project. Mission Apartments, located at 710 Hueco, (68 units) and La Posada Apartments, located at 805 Hueco, (12 units) are adjacent communities in Carlsbad, New Mexico. The Project is proposed and operated for households at 50% Area Median Income (AMI), 30% AMI, and persons with Special Needs under the QAP set aside. Both communities are 100% HUD-subsidized with Project-Based Section 8. The rent composition of the total 80 units will include the following: 67 units for households earning 50% or less of AMI and 13 units for households earning 30% AMI or less.

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Project Description

Parkside Place (“Project”) represents an opportunity to preserve and substantially renovate the two aging affordable housing communities. Mission Apartments was built in 1979 and La Posada Apartments was built in 1969. The combined two communities occupy 4.2 acres of land and consist of five (5) two-story walk-up buildings and one (1) rental/management building. The Project’s activities include the rehabilitation of a total of 80 units that are currently occupied. The current unit composition of both communities is as follows: Building A contains 40 one-bedroom/1-bath units; Building B contains 12 two-bedroom/1 bath units; Buildings C and D, both, contain 10 two-bedroom/1 bath units each; and Building E contains 8 three-bedroom/1.5 bath townhouses. The floorplan square footage for each unit type are as follows: one-bedroom units average 535 square feet, two-bedroom units average 714 square feet, and three-bedroom units average 1,046 square feet. The location of the communities are within proximity to parks, strip mall centers with retail and service components, restaurants, grocery and convenience stores, and other services. Apart from repainting the exterior of the buildings, neither community has had any major renovations since construction. Due to their age, they are suffering from obsolescence. The Project’s proposed exterior renovation activities include roof replacement, stucco repair and repaint, and replacement of exterior windows and doors. Interior renovations include replacement of HVAC (old forced air furnaces and evaporative coolers), water-heater equipment, kitchen and bathroom cabinets and countertops, vinyl and carpet flooring, appliances, lighting fixtures, plumbing fixtures, and paint. Other proposed renovations to the overall Project property include the addition of two playgrounds, conversion of four existing units into ADA accessible units, installation of bicycle racks, new sidewalk construction to improve accessibility to laundry, mailbox center, and other areas of the site, addition of a community garden, new landscaping and irrigation, addition of benches and picnic tables, storm water management improvements, and replacement of the laundry facility. A new rental/management building will be constructed on-site which will replace the existing rental/management building and will provide a television lounge and computer center for the residents. The new rental/management building will also provide a space for an on-site Service Coordinator who will provide residents with information about onsite and community services; assist residents in accessing available services; arrange for access to transportation; and organize community-building and/or other enrichment events for the residents. Enrichment services will include programs such as literacy/language training; financial fitness; personal safety; income and asset building counseling; and life skills. Case management services will be provided to all Special Needs residents on a voluntary and as-needed basis. All resident service programs will be offered for free. MFA ordered a market study, conducted by Novogradac & Company, LLP, which outlines a Primary Market Area (PMA) of an irregularly shaped area bounded by Highway 285/George Shoup Relief Route to the North, the Pecos River to the East, Black River Village Road to the South, and Guadalupe Mountains to the West. However, the market study conducted extends to areas outside the PMA to Hobbs and Roswell in order to locate comparable developments that include unsubsidized LIHTC and subsidized developments. The expansion outside the PMA boundary allowed for fourteen comparable properties. Novogradac’s review was able to determine the Project to be well-conceived and within range of the comparable properties due to its target population and existing Project-Based Section 8 contracts.


HOME Requirements: Two (2) one-bedroom units and one (1) two-bedroom unit for households earning at or below 50% AMI and restricted to Low HOME rents. The affordability period is 40 years: 15 years as required by HOME rehabilitation standards and 25 years for MFA’s extended affordability period (i.e. in concurrence with the loan term). The affordability period starts on the date of acceptance by HUD of a final HOME project completion report and ends 40 years later. NHTF Requirements: Two (2) one-bedroom units, three (3) two-bedroom units, and two (2) three-bedroom units for households earning 30% AMI or the federal poverty level, whichever is higher, is required. The affordability period is 35 years, starting on the date of acceptance by HUD of a final NHTF project completion report and ends 35 years later.

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HOME Loan: Payments: No payments during construction period, not to exceed 24 months; thereafter, 480 equal principal payments (0% interest), maturing in 40 years, based upon a 40-year amortization. All outstanding principal due at the earlier of maturity, refinance or sale of the project. Disbursement: Allow three draws, one at construction closing, one during the construction period, and final disbursement upon submission of a HUD project completion report. NHTF Loan: Payments: No payments and no interest during the construction period, which is not to exceed 24 months; thereafter, annual payments as determined from available cash flow, maturing in 35 years. Disbursement: Allow up to three draws: two during the construction period, and the third upon submission of a final NHTF project completion report to HUD.

Special Conditions 1. All loans are subject to MFA’s final underwriting for project feasibility if needed. Loan amounts may be reduced if the financing gap decreases, and/or terms (i.e. interest rate & amortization) may be revised in line with projected cash flow at closing;

2. Any changes or additions to the following development team members listed in the loan application must be approved by MFA: developer, general partner, contractor, management company, consultant or architect;

3. Financing commitments must be acceptable to MFA prior to funding on all funding sources; 4. Acceptance of 2018 allocation of Low Income Housing Tax Credits (LIHTC); 5. Approval of plans/construction monitoring/draws by a third party acceptable to MFA (i.e.

hired by MFA, investor or primary construction lender) and reports shared with MFA. Cost to be paid by applicant;

6. Other conditions as may be determined by MFA staff; and 7. Subject to availability of funds.

Additional Conditions: HOME Loan 1. Loan to be in second (2nd) lien position; 2. HUD Environmental Review (ER) approval must occur prior to acquisition and construction

start, and any ER approval conditions must be met; and 3. If funds are to be drawn during construction, MFA will require a construction guarantee

from Chelsea Investment Corp. Additional Conditions: NHTF Loan

1. Loan to be in third (3rd) lien position; 2. HUD Environmental Provisions requirement must be met prior to acquisition and

construction start; 3. If funds are drawn during construction, MFA will require a construction guarantee from

Chelsea Investment Corp.; 4. Project building plans must meet NHTF Rehabilitation Standards prior to acquisition and

construction start; and 5. Loan amount dependent on HUD approval of change to NHTF award limits.

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Other MFA Commitments to Other Projects

Chelsea Investment Corporation 2012 HOME – Park Place (fka Casa Hermosa) - $575,322 2012 Primero Grant – Park Place (fka Casa Hermosa) - $75,000 2012 9% Tax Credit – Park Place (fka Casa Hermosa) – $896,512 2013 Primero Grant –Cottonwood Apartments Artesia - $50,000 2013 Primero Grant –The Elms Apartments - $50,000 2014 Primero Grant – Roselawn Manor - $50,000 2015 9% Tax Credit – Parkside Terrace - $1,087936 2015 9% Tax Credit – Roselawn Manor - $1,150,000 2015 HOME – Roselawn Manor - $400,000 2015 Risk Share – Roselawn Manor - $360,000 (Notes: Risk Share loans carry 10% MFA risk – loan balances as of 4/30/18) Eastern Regional Housing Authority 2016 GIHA Grant – Eunice Workforce Housing 2016 - $696,006 2016 NMHTF – Eunice Workforce Housing 2016 - $404,458 Partnered with Chelsea Investment Corp on Roselawn Manor project 2014 Primero Grant - $50,000 2015 LIHTC - $1,150,000 2015 HOME - $400,000 2015 Risk Share - $360,000

MFA Exposure Total MFA Exposure: Chelsea Investment Corporation: $1,335,322 (excludes LIHTC, grants, and loans pending approval), Eastern Regional Housing Authority: $1,164,458 (excludes LIHTC, grants, and loans pending approval)

Prepared by Sharlynn Rosales, Program Coordinator Date May 25 ,2018 Reviewed by Shawn Colbert, Director of Housing Development

Carlsbad

15,289,314$

4% or 9%

9%NC =

AR =

AMI =

MR =

04/30/18 $335,107 (additional funds

expected from 2018 HOME

allocation)


$400,000 $400,000

0.0% to 3.0% 0%

NA NA



20 to 80 years 40 years


Min 20 yrs, 60% AMI 40 yrs, max. AMI: 50%


must-pay debt

1.18 in Yr 1, within guidelines Yrs

2 to 14, 1.42 in Yr 15

NA NA

04/30/18 $2,550,000


Dependent on fund

availability$1,275,000

0% 0%

NA NA

2 yr construct, no max

on perm2 yr construct, 35 yr perm

cash-flow or forgivable Cash flow


Min 30 yrs, max 30%

AMI or federal poverty

level

35 yrs, max. AMI: 30% or federal

poverty level


must-pay debt

1.18 in Yr 1, within guidelines Yrs

2 to 14, 1.42 in Yr 15

40-100 points 80


NUMBER OF

Chelsea Investment CorporationNew Construction

Acquisition/Rehab


Area Median Income

$ 800,000

3NUMBER OF HOME UNITS:



NC, AR,

or

NC/AR

Total #

Units

*1.15 if permitted by investor


1-BED, 2-BED, 3BED

LIHTC ALLOC


Management

Developer

HOME LOAN INFORMATION

to-be-formed-LLLP

Monarch Properties


DSCR *1.15 if permitted by investor

Scoring Criteria

Maximum Loan Term

Loan Amortization

Lien Position

Rates

Loan Fees

Parkside Place

Borrower

Target AMIs

NATIONAL HOUSING TRUST FUND (NHTF) LOAN INFORMATION


Maximum Loan Amount

YEAR BUILT (AR)

AR 80

Scoring Criteria

Lien Position


DSCR

NHTF UNITS: 7

Maximum Loan Amount

Rates

Maximum Loan Term

Loan Amortization

Loan Fees



50%, 30%

1969/1979


NC, AR,

or

NC/AR

Total #

Units

Project Name CitySizes Target AMIs% TDC Cost/GSF*

38% 98.55$

29% 74.69$

10% 26.20$

2% 6.00$

5% 12.88$

0% 0.38$

3% 8.23$

0% 0.34$

2% 5.84$

10% 25.36$

100% 258.45$

97% 250.99$

59,158

% of Total Per Unit

74.1% 141,537$

2.4% 4,500$

7.5% 14,344$

0.0% -$

0.0% -$

4.0% 7,598$

7.1% 13,499$

3.1% 6,000$

1.9% 3,639$

0.0% -$

0.0% -$

100.0% 191,116$

% of Total Per Unit

32.7% 62,447$

2.6% 5,000$

8.3% 15,938$

0.0% -$

0.0% -$

4.0% 7,598$

46.9% 89,586$

2.4% 4,548$

3.1% 6,000$

0.0% -$

0.0% -$

100.0% 191,116$


LIHTC Equity

Other source

5th Lien holder

MFA HOME

4th Lien holder


1,079,892$

480,000$

Total

5,830,000$

4,418,307$

1,549,750$

Other source

Other source


2nd Lien holder



Project:



3rd Lien holder


TDC w/o Land, Reserves & Commercial

Parkside Place

Other source

Other source

Perm Lender - 1st Lien Citibank

2nd Lien holder MFA HOME

1,275,000$ 3rd Lien holder MFA NHTF

4th Lien holder


4,995,745$

PERMANENT SOURCES

Project:

400,000$

Parkside Place Total


363,864$

480,000$

15,289,314$

607,858$

7,166,847$

5th Lien holder

Deferred Developer Fee Chelsea Investment Corporation

LIHTC Equity Richman Group

Other Equity, Owner's Equity From Project CF

Seller Note

Other source

Other source

Other source

291,091$

Richman Group

Seller Note

Other Equity, Owner's Equity From Project CF

11,322,973$

360,000$

1,147,500$

Citibank

Chelsea Investment Corporation

MFA NHTF

607,858$

355,000$

761,878$

22,500$

486,611$

20,000$

14,848,046$








Total


Project:

345,268$

1,500,000$

15,289,314$

Parkside Place

Parkside Place Gross Sq. Footage: 59,158

Carlsbad TOTAL COST COST/GSF

96,000$ 1.62$

5,734,000$ 96.93$

-$ -$

5,830,000$ 98.55$

-$ -$

-$ -$

862,771$ 14.58$

3,555,536$ 60.10$

-$ -$

-$ -$

4,418,307$ 74.69$

88,366$ 1.49$

265,098$ 4.48$

265,098$ 4.48$

538,005$ 9.09$

343,183$ 5.80$

-$ -$

30,000$ 0.51$

20,000$ 0.34$

1,549,750$ 26.20$

210,000$ 3.55$

75,000$ 1.27$

70,000$ 1.18$

-$

Construction Management -$ -$

-$ -$

355,000$ 6.00$

-$ -$

40,000$ 0.68$

-$ -$

438,991$ 7.42$

115,387$ 1.95$

-$ -$

30,000$ 0.51$

60,000$ 1.01$

70,000$ 1.18$

7,500$ 0.13$

-$

761,878$ 12.88$


ACQUISITION COSTS






Landscaping


Land Acquisition


Other: Closing Costs, Broker's Fee

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

Demolition


Site Construction


Off-Site Improvements

Other

Contractor Overhead

Contractor Profit



Other: Permits

Other: HERS testing, Geotechnical Testing


Credit Enhancement

Inspection Fees

Title and Recording

Other (d)

Architect (Design)



Engineer/Survey

Hazard Insurance

Liability Insurance/Builder's Risk

Performance Bond

Interest

Legal

Taxes

-$ -$

-$ -$

15,000$ 0.25$

-$ -$

7,500$ 0.13$

-$ -$

-$ -$

-$ -$

-$ -$

22,500$ 0.38$

7,500$ 0.13$

-$ -$

123,000$ 2.08$

7,500$ 0.13$

176,918$ 2.99$

58,750$ 0.99$

112,943$ 1.91$

486,611$ 8.23$

20,000$ 0.34$

-$ -$

-$ -$

-$ -$

20,000$ 0.34$

TDC before Dev. Fees & Reserves 13,444,046$ 227.26$

-$ -$

345,268$ 5.84$

-$ -$

-$ -$

-$ -$

345,268$ 5.84$

1,500,000$ 25.36$

-$

-$

1,500,000$ 25.36$

15,289,314$ 258.45$

14,848,046$ 250.99$ TDC w/o Land, Reserves & Commercial

SUBTOTAL


SOFT COSTS

SYNDICATION

RESERVES

DEVELOPER FEES

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

Other



Credit Enhancement

Title and Recording

Legal

Pre-Paid MIP


Market Study

Other

Relocation Consultant

Investor Legal Fees

Environmental

Bond Premium

Credit Report

Consultant Fee


Project: Parkside Place

Tax Opinion

Rent Up

Operating

Replacement


Developer Fee

Tax Credit Fees

Appraisal



Organization

Bridge Loan

G Page 1 of 3

2018 RENTAL AWARD SUMMARY Project Name & Address

Nuevo Atrisco 7909 Central Avenue, NW, Albuquerque, NM 87121

Proposed Awards $600,000 HOME Rate 0.00%

$1,000,000 NMHTF Rate 3.00% Fixed

$1,275,000 NHTF Rate 0.00% Cash Flow Only

Borrower The borrower is a to-be formed limited liability limited partnership that will be .01% owned by a to-be-formed limited liability company, with YES Housing, Inc., as its sole member, and 99.99% owned by a to-be-determined investor member.

Management Monarch Properties, Inc. is a privately held Texas corporation chartered in 1982. Monarch is involved with third-party, full service management of multi-family apartment communities throughout Texas, New Mexico and Oklahoma. The corporate office is located in Albuquerque, New Mexico. The total apartment units under management have consistently averaged more than 7,500 with over 280 team members employed.

Developer

YES Housing Inc. (YES) is a 501(c)(3) New Mexico nonprofit organization created in 1990. It has a current full time staff of 22 including EVP/COO Joe Ortega & VP of Real Estate Development Michelle Den Bleyker, both experienced developers. YES has been designated by MFA as a Community Housing Development Organization (CHDO) for past projects. It has constructed or rehabilitated over 2,400 units of affordable rental housing in New Mexico, Arizona & Texas. Consolidated (i.e. includes affiliates) audited financial statements for FYE 12/31/16 show substantial assets of $109.1 million, unrestricted cash of $1.8 million, and net worth of $48.3 million. Operating cash flow was negative, but traditional cash flow (i.e. net earnings plus depreciation, amortization, and interest) was positive at $3.9 million. The debt-to-worth ratio was 1.26 to 1. Consolidated internally-prepared statements for the 11 months ended 11/30/17 show negative net operating income, but net income (i.e. including investment income, gains/losses from disposal of assets, and depreciation and amortization) was positive at $2.2 million. Unrestricted cash and cash equivalents totaled $6.9 million, and the debt-to-worth ratio was 0.63 to 1.

Project Type & Size

New construction 80 rental units consisting of one-, two- and three-bedroom units, composed of 24 units for households earning 30% or less of area median income (AMI), 16 units for 50% AMI households, 28 units for 60% AMI households, and 12 units with no income limitation. Project will also include 8 market-rate condominium live-work units on the ground floor.

Project Description

The project is a new construction mixed-income development in Albuquerque consisting of one-, two-, and three-bedroom units. The units will be contained in one four-story midrise residential building. The project will consist of 68 LIHTC units and 12 market rate units. Furthermore, the project will offer 6,121 square feet of live/work condominium space. The project is designed for families with children with nearly 75% of the units being a two- or three-bedroom unit. The plan includes 21 one-bedroom units (18 units at 719 sf and 3 corner units at 600 sf), 42 two-bedroom units (all units are 1,026 sf), and 17 three-bedroom units (all units are 1,209 sf). Community amenities will include recreational areas for children, a community garden, management/maintenance and service coordination office space, laundry rooms, a community room with a kitchen for resident use, healthy cooking classes, as well as a computer room and multipurpose room for resident events and social services. The plan includes a large rooftop deck area (9,564 sf) that can also be used for resident events and additional outdoor living opportunities. All apartment units and common areas have been designed using Universal Design principles. The project will achieve LEED-H Silver certification, as required by the City of Albuquerque funding. The MFA-ordered, Novogradac & Company market study, dated 4/17/18, advises that the project is feasible as presented. The site is located in close proximity to services, employment, public transportation, and retail. The off-site amenities are appropriate and sufficient for the market and intended residents. Total population is projected to increase into 2022 and construction of the project’s units will positively impact the surrounding area by improving the neighborhood. The project’s LIHTC rents are substantially below comparable market rents, providing a significant tenant advantage for low- and moderate-income households. No other developments in the Primary Market Area (PMA) offer 30% AMI units that this project will offer. Occupancy levels at the comparables are high and four of the six comparables maintain a waiting list.

G Page 2 of 3


HOME Requirements: 3 units for households earning at or below 60% AMI and restricted to High HOME rents, for which a Land Use Restriction Agreement (LURA) will be filed in Bernalillo County. The affordability period is 20 years as required by HOME rules. The affordability period starts on the date of acceptance by HUD of a final HOME project completion report and ends 20 years later. NMHTF Requirements: 28 units for households earning 60% or less of AMI, 16 units for 50% AMI households and 24 units for 30% AMI households, for which a Land Use Restriction Agreement (LURA) will be filed in Bernalillo County. The NMHTF affordability period is 30 years; 20 as required by Affordable Housing Act Rules and 10 for MFA’s extended affordability period (i.e. in concurrence with the loan term) and starts on the date the Certificate of Occupancy is issued. NHTF Requirements: 7 units for households earning 30% AMI or the federal poverty level, whichever is higher, for which a Land Use Restriction Agreement (LURA) will be filed in Bernalillo County. The affordability period is 35 years, starting on the date of acceptance by HUD of a final NHTF project completion report.


HOME Loan: Payments: No payments during construction period, not to exceed 24 months; thereafter, 120 equal principal payments (0% interest), maturing in 10 years, based upon a 10-year amortization. All outstanding principal due at the earlier of maturity, refinance or sale of the project. Disbursement: Allow three draws, one at construction closing, one during the construction period, and final disbursement upon submission of a HUD project completion report. NMHTF Loan: Payments: Interest only monthly during the construction period not to exceed 24 months; 360 equal P & I payments during the permanent loan period. Outstanding principal and interest due at the earlier of maturity, refinance or sale of the project. Disbursement: Multiple disbursements upon evidence of costs incurred, not more frequently than monthly. NHTF Loan: Payments: No payments and no interest during the construction period, which is not to exceed 24 months; thereafter, annual payments as determined from available cash flow, maturing in 35 years. Disbursement: Allow up to three draws: two during the construction period, and the third upon submission of a final NHTF project completion report to HUD.

Special Conditions 1. All loans are subject to MFA’s final underwriting for project feasibility if needed. Loan

amounts may be reduced if the financing gap decreases, and/or terms (i.e. interest rate & amortization) may be revised in line with projected cash flow at closing;

2. Any changes or additions to the following development team members listed in the loan application must be approved by MFA: developer, contractor, management company, consultant or architect;

3. Financing commitments acceptable to MFA prior to funding on all funding sources; 4. Acceptance of 2018 allocation of Low Income Housing Tax Credits (LIHTC); 5. Approval of plans/construction monitoring/draws by a third party acceptable to MFA (i.e.

hired by MFA, investor or primary construction lender) and shared with MFA. Cost to be paid by applicant;

6. Other conditions as may be determined by staff; and 7. Subject to availability of funds.

Additional Conditions: HOME Loan

1. Loan to be in second lien position; 2. If other than minimal funds are used during construction (i.e. $50,000 or less), YES

Housing, Inc. must provide a guarantee; 3. HUD Environmental Review (ER) approval must occur prior to acquisition and construction

start, and any ER approval conditions must be met; and 4. If HOME CHDO (Community Housing Development Organization) funds are to be used,

G Page 3 of 3

YES Housing, Inc. must be approved by MFA as a CHDO, and any transfers of ownership must be in accordance with HUD’s CHDO rules.

Additional Conditions: NMHTF Loan 1. Loan to be in third lien position; 2. YES Housing, Inc. must provide a guarantee during the construction period; and 3. Loan amount may be increased by 10% if necessary for project feasibility and if MFA

underwriting standards are met. Additional Conditions: NHTF Loan

1. Loan to be in fourth lien position; 2. Loan amount dependent on HUD approval of change to NHTF award limits; 3. If funds are drawn during construction, MFA will require a construction guarantee from YES

Housing, Inc.; and 4. HUD Environmental Provisions requirements must be met prior to acquisition and

construction start. MFA Commitments to Other Projects

YES Housing, Inc.: 1999 LIHTC (9%) - Otero Village - $243,715 1999 HOME CHDO - Otero Village - $400,000 2000 Risk Share - Otero Village – $581,741.72 2000 LIHTC (4%) - Wildewood Apartments - $142,560 2001 LIHTC (4%) - Brentwood Gardens - $229,137 2001 LIHTC (4%) - Montana Meadows - $170,606 2002 LIHTC (4%) - Apple Ridge - $205,484 2003 LIHTC (4%) - Vista Grande - $148,910 2007 HOME CHDO - Bella Vista - $366,000 2007 LIHTC (9%) - Bella Vista - $904,052 2007 HOME CHDO - Roswell Summit - $490,000 2007 LIHTC (9%) - Roswell Summit - $328,473 2008 Risk Share - Roswell Summit - $760,719.50 2009 NSP - La Hacienda - $2,318,213.57 2010 NMHTF - Mountain View - $445,507.58 2011 HOME CHDO - Mountain View - $386,913.65 2011 LIHTC - Mountain View - $556,678 2012 LIHTC - Mesa del Norte - $515,026 2012 NMHTF - Mesa del Norte - $453,389.48 2012 HOME CHDO - Mesa del Norte - $475,520.99 2013 LIHTC (9%) – Sunset Hills - $966,241 2013 HOME CHDO - Sunset Hills - $367,695.74 2013 NMHTF - Sunset Hills - $587,341.29 2014 LIHTC (9%) – The Imperial Building - $1,150,000 2014 NMHTF – The Imperial Building - $492,000.14 2014 LIHTC (9%) – New Leaf - $959,500 2014 HOME CHDO – New Leaf - $435,000.00 2014 NMHTF – New Leaf - $486,011.25 2016 Risk Share – New Leaf - $1,428,354.67 2017 LIHTC (9%) – Solar Villa - $1,150,000 2017 HOME CHDO – Solar Villa - $600,000 2017 NMHTF – Solar Villa - $1,000,000 2018- HOME- Hopeworks Village- $630,000 2018- NMHTF- Hopeworks Village- $1,300,000 2018- NHTF- Hopeworks Village $3,000,000 (Notes: Risk Share loans carry 10% MFA risk - loan balances as of 4/30/18)

MFA Exposure YES Housing, Inc.: $15,038,609.58 (excludes LIHTC & loans pending approval)

Prepared by Tanya Birks, Assistant Director of Housing Development Date 05/29/18 Reviewed by Shawn Colbert, Director of Housing Development

Run Date/Time: 5/25/2018 9:14 AM

Albuquerque

16,187,728$

4% or 9%

9%NC =

AR =

AMI =

MR =

04/30/18 $335,107 (additional funds

expected from 2018 HOME

allocation)


$600,000 $600,000

0.0% to 3.0% 0.0%

NA NA



20 to 80 years 10 years


Min 20 yrs, max 60%

AMI20 yrs, max. AMI: 60%


must-pay debtwithin guidelines

NA NA

04/30/18 $3,410,602


$1,500,000 $1,000,000

3.0% 3.0%

NA NA



Mthly during perm Mthly during perm


Min 20 yrs, max 60%

AMI30 yrs, max. AMI: 60%



50-100 points 76

30%, 50%,

60%, 20 MR

Nuevo Atrisco

Borrower

Target AMIs

YEAR BUILT (AR)

NC 88

Scoring Criteria

Lien Position


DSCR

DSCR

Loan Fees


$500,000 perm ($500,000 paid down after 24

months)



*max for CHDOs (Community Housing

Development Organizations)

NC, AR,

or

NC/AR

Total #

Units


1-BED, 2-BED, 3-

BED

LIHTC ALLOC


Management

Developer

HOME LOAN INFORMATION

To Be Formed LLLP

Monarch Properties, Inc.

NUMBER OF NMHTF UNITS: 68

YES Housing Inc.New Construction

Acquisition/Rehab


Area Median Income

Maximum Loan Amount

Rates

Maximum Loan Term

Loan Amortization

NMHTF LOAN INFORMATION

$ 1,019,999

Maximum Loan Amount

Rates

Maximum Loan Term

Loan Amortization

Loan Fees

3NUMBER OF HOME UNITS:

Lien Position


Scoring Criteria



G:\Loan & Grant Programs\PROPERTIES\NUEVO ATRISCO 2018\7- Underwriting\Board Tables\UPDATED- NUEVO ATRISCO Board Presentation Format - Tables - May 2018


04/30/18 $2,550,000


Dependent on fund

availability$1,275,000

0% 0.0%

NA NA

2 yr construct, no max

on perm2 yr construct, 35 yr perm

cash-flow or forgivable cash-flow

Subordinate allowed 4th lien position

Min 30 yrs, max 30%

AMI or federal poverty

level

35 yrs, max. AMI: 30% or

federal poverty level



40-100 points 70Scoring Criteria

Rates


Maximum Loan Amount


Loan Amortization

Lien Position

NAT'L HTF UNITS: 7

DSCR

NATIONAL HTF LOAN INFORMATION

Maximum Loan Term

Loan Fees

NUMBER OF




% TDC Cost/GSF*

0% 0.04$

61% 87.01$

18% 25.86$

5% 7.11$

5% 6.44$

0% 0.29$

1% 1.56$

0% 0.27$

2% 2.75$

8% 11.72$

100% 143.04$

95% 140.29$

113,173

% of Total Per Unit

38.4% 70,597$

3.3% 6,136$

6.2% 11,364$

7.1% 13,040$

15.4% 28,409$

2.5% 4,677$

23.9% 44,041$

3.1% 5,688$

0.0% -$

0.0% -$

0.0% -$

100.0% 183,951$

% of Total Per Unit

5.6% 10,227$

3.7% 6,818$

3.1% 5,682$

7.9% 14,489$

15.4% 28,409$

1.4% 2,557$

59.8% 110,082$

3.1% 5,688$

0.0% -$

0.0% -$

0.0% -$

100.0% 183,951$



Total

5,000$

9,846,840$

2,926,698$

804,249$

729,298$

32,500$

176,000$

30,000$

15,376,080$












Project:

3,875,609$

500,506$

Paid in during construction period

Commercial Units- YES Housing

6,212,500$

540,000$

1,000,000$

1,147,500$

2,500,000$

TBD

YES Housing

311,143$

1,326,000$

16,187,728$

Nuevo Atrisco

3rd Lien holder

500,000$

1,275,000$

3rd Lien holder NMHTF loan (paid down at closing to perm amt)

4th Lien holder NHTF


900,000$

PERMANENT SOURCES

Project: Nuevo Atrisco Total

600,000$

Perm Lender - 1st Lien TBD

2nd Lien holder

Nuevo Atrisco Total

NMHTF loan

NHTF ( partial release of total)

City of ABQ - WFH Trust Fund


Project:

5th Lien holder

MFA HOME CHDO loan (partial release of total)

4th Lien holder


Other source


500,506$

16,187,728$

2,500,000$

225,034$

9,687,188$

5th Lien holder City of ABQ - WFH Trust Fund

Deferred Developer Fee YES Housing

LIHTC Equity

MFA HOME CHDO loan

411,613$ Deferred Developer Fee

LIHTC Equity

Other source

Paid in during permanent

Commercial Units- YES HousingOther source

Other source

Other source

Other source

Other source

Other source


2nd Lien holder



Nuevo Atrisco Gross Sq. Footage: 113,173

Albuquerque TOTAL COST COST/GSF

‐$

‐$

5,000$ 0.04$

5,000$ 0.04$

‐$

‐$

999,900$ 8.84$

8,846,940$ 78.17$

‐$

‐$

9,846,840$ 87.01$

206,455$ 1.82$

619,365$ 5.47$

619,365$ 5.47$

492,342$ 4.35$

834,171$ 7.37$

‐$

75,000$ 0.66$

80,000$ 0.71$

2,926,698$ 25.86$

633,625$ 5.60$

34,000$ 0.30$

55,000$ 0.49$

15,000$ 0.13$

66,624$ 0.59$

804,249$ 7.11$

‐$

15,000$ 0.13$

122,029$ 1.08$

350,000$ 3.09$

75,000$ 0.66$

‐$

11,500$ 0.10$

55,000$ 0.49$

25,000$ 0.22$

8,500$ 0.08$

67,269$ 0.59$

729,298$ 6.44$

Performance Bond

Interest

Legal

Taxes



Engineer/Survey

Hazard Insurance

Liability Insurance

Contractor Overhead

Contractor Profit



Credit Enhancement

Inspection Fees

Title and Recording

Architect (Design)

Demolition


Site Construction


Off‐Site Improvements

Land Acquisition


Other

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL

SUBTOTAL


ACQUISITION COSTS






Landscaping



Other: Permits, Construction Mgmt

Other : Green Modelling/HERS

Testing/Geotechnical

Other: Builder's Risk, 3rd Party Reports

Other

G:\Loan & Grant Programs\PROPERTIES\NUEVO ATRISCO 2018\7‐ Underwriting\Board Tables\UPDATED‐ NUEVO ATRISCO Board Presentation Format ‐ Tables ‐

May 2018


‐$

‐$

5,000$ 0.04$

‐$

20,000$ 0.18$

7,500$ 0.07$

‐$

‐$

‐$

32,500$ 0.29$

8,500$ 0.08$

7,500$ 0.07$

77,000$ 0.68$

8,000$ 0.07$

‐$

25,000$ 0.22$

50,000$ 0.44$

176,000$ 1.56$

30,000$ 0.27$

‐$

‐$

‐$

30,000$ 0.27$

TDC before Dev. Fees & Reserves 14,550,585$ 129$

35,000$ 0.31$

276,143$ 2.44$

‐$

‐$

‐$

311,143$ 2.75$

1,326,000$ 11.72$

‐$

‐$

1,326,000$ 11.72$

16,187,728$ 143.04$

15,376,080$ 140.29$


Project: Nuevo Atrisco

Tax Opinion

Rent Up

Operating

Replacement


Developer Fee

Tax Credit Fees

Appraisal



Other

Consultant Fee

Other

Environmental

Bridge Loan

Credit Report

Pre‐Paid MIP

Organization

Market Study


SUBTOTAL

Other



Bond Premium

Credit Enhancement

Title and Recording

Legal


SUBTOTAL


SOFT COSTS

SYNDICATION

RESERVES

DEVELOPER FEES

SUBTOTAL

SUBTOTAL

SUBTOTAL

G:\Loan & Grant Programs\PROPERTIES\NUEVO ATRISCO 2018\7‐ Underwriting\Board Tables\UPDATED‐ NUEVO ATRISCO Board Presentation Format ‐ Tables ‐

May 2018

New Mexico Mortgage Finance Authority 344 4th St. SW, Albuquerque, NM 87102 tel. 505.843.6880 toll free 800.444.6880 fax 505.243.3289 housingnm.org

MEMORANDUM

TO: MFA Board of Directors

Through: Contracted Services – June 5, 2018 Through: Policy Committee – May 22, 2018

FROM: Natalie Michelback, COC Program Manager DATE: June 13, 2018 SUBJECT: Limited Source Procurement for 2018/2019 Continuum of Care Performance (“CoC”)

Program Recommendation Staff recommends approval of the 2018/2019 Continuum of Care Performance preliminary award amounts to 26 approved service providers. Background The Continuum of Care Performance Program is supported exclusively by State Homeless funds. For the past five years, the program funds have been awarded using limited source procurement, and it is recommended that this be continued this year. Below is a restatement of the basis for limited source procurement for this program. Limited source procurement is used when there is a limited number of qualified sources for the procurement, therefore a competitive sealed proposal procedure would be impractical. The prerequisite for receiving this funding is a HUD Continuum of Care award and executed grant agreement. The qualified sources are therefore limited each year to only the successful renewing recipients of HUD Continuum of Care funds. Cooperation with New Mexico Coalition to End Homelessness (NMCEH) The NMCEH is responsible for coordinating the Balance of State Continuum of Care application process, and is contracted by the City of Albuquerque to coordinate the Albuquerque Continuum of Care application process. In doing so, the NMCEH collects the annual performance data from all applicants and renewing agencies and reports the data directly to MFA. Receiving this information directly from NMCEH is a more practical alternative to MFA requesting the information through an official RFP.

2

Purpose of Activities The purpose of these CoC funds is to provide support to agencies statewide which have received HUD Continuum of Care funding through either the Albuquerque or Balance of State applications to HUD; this also assists those agencies with match requirements for the Continuum of Care. The “CoC” Program is designed to assist individuals (including unaccompanied youth) and families experiencing homelessness and to provide the services needed to help such individuals move into transitional and permanent housing, with the goal of long-term stability. Approval of Awards All applicants will be funded based on a formula that was created by the Joint Evaluation Team in 2011, (MFA Executive Team and Hank Hughes, Executive Director of the New Mexico Coalition to End Homelessness). Based on this year’s State Homeless funding, the cap is set at $28,405 resulting in the total CoC funding of $458,174. Estimated funding for the homeless programs for the 2018-2019 Program Year is $2,387,731. Disbursement of the funding between the below outlined programs and categories will be determined based on the review of the applications and associated need. Based on HUD’s 2017 program year, the funding for this year will be disbursed in the following way:

Funding Allocations for the 2018/2019 Program Year HUD – ESG (7.5% for admin = $84,153) $1,122,034.00 State Homeless (5% for admin = $63,285) $1,265,700.00 Total $2,387,734.00

Allocations for 2018/2019 by Program NMCEH $88,000.00 EHAP $885,399.00 RAP $808,723.00 COC $458,174.00 MFA Admin $147,438.00 Total $2,387,734.00

Recommended Awards to Continuum of Care Performance Award Service Providers

Service Provider Location Award Recommendation Abode Las Cruces $6,944.00 Albuquerque Health Care for Homeless Albuquerque $28,405.00 Barrett Foundation Albuquerque $19,807.00 Casa Milagro Santa Fe $6,108.00 Catholic Charities Albuquerque $28,405.00 Community Against Violence Taos $8,382.00 County of Sandoval Shelter plus Care Bernalillo $23,971.00 Crossroads for Women Albuquerque $23,305.00 Cuidando Los Ninos (CLN Kids) Albuquerque $12,503.00 DreamTree Project Taos $13,516.00

3

El Camino Real Socorro $22,986.00 El Refugio, Inc. Silver City $7,354.00 La Casa, Inc. Las Cruces $7,516.00 Mesilla Valley Community of Hope Las Cruces $28,405.00 People Assisting the Homeless (PATH) Farmington $2,678.00 S.A.F.E. House Albuquerque $24,515.00 Samaritan House Las Vegas $7,385.00 San Juan County Partnership Farmington $14,654.00 Santa Fe Community Housing Trust Santa Fe $18,004.00 St. Elizabeth Shelter Santa Fe $16,621.00 St. Martin's Hospitality Center Albuquerque $28,405.00 Supportive Housing Coalition of NM Albuquerque $28,405.00 The Life Link Santa Fe $28,405.00 Therapeutic Living Services Albuquerque $28,405.00 Youth Shelters Santa Fe $8,929.00 Valencia Shelter for Victims of DV Los Lunas $14,161.00 TOTAL FUNDING

$458,174.00

Albuquerque $222,155.00 Bernalillo $23,971.00 Farmington $17,332.00 Las Cruces $42,865.00 Las Vegas $7,385.00 Los Lunas $14,161.00 Santa Fe $78,067.00 Silver City $7,354.00 Socorro $22,986.00 Taos $21,898.00 TOTAL FUNDING $458,174.00

Summary The Continuum of Care (COC) performance awards were established to provide support to agencies statewide that offer homeless prevention and supportive services through this limited source procurement. This year’s total HUD Continuum of Care funding for the Albuquerque and Balance of State service providers is $10,728,359. Twenty Six (26) agencies were eligible for the MFA COC award. Staff is requesting approval of Twenty Six (26) awards in the total amount of $458,174 for the Continuum of Care (COC) program. Upon PC approval, award notifications will be mailed. Final award letters will be sent upon approval of contracted services and MFA Board of Directors.


MEMORANDUM TO: MFA Board of Directors Through: Contracted Services on June 5, 2018 Through: Policy Committee on May 29, 2018

FROM: Natalie Michelback, HOPWA Program Manager DATE: June 13, 2018 SUBJECT: Approval of 2018/2019 HOPWA Service Providers and Awards Recommendation: Staff recommends approval to award Housing Opportunities for Persons with AIDS (HOPWA) funding in the amount of $783,979.22 to three service providers and $24,246.78 of admin to MFA. Background: HOPWA funds are distributed in New Mexico to two geographic areas by The Department of Housing and Urban Development (HUD); the City of Albuquerque and the balance of state (all areas outside of Albuquerque) through MFA. For program year 2018-2019, MFA received $433,596.00 in HOPWA funds for housing assistance within the City of Albuquerque and $374,630.00 for the balance of state for a total of $808,226.00. MFA’s administrative fees are calculated at 3% for a total of $24,246.78 resulting in the total award of $783,979.22 to three service providers. The HOPWA RFP was approved by MFA’s Board of Directors on April 18, 2018, and released to the public on the same day. RFP training was held on April 26, 2018, and the response deadline was May 16, 2018. Three Offerors responded to the HOPWA RFP:

Agency Name

Area Applied for*

Met Minimum Threshold

Southwest CARE Center (SWCC) Statewide Yes El Camino Real Housing Authority (ECR) Southern Region Yes SW Regional Housing and Community Development Corporation (SWR)

Southern Region

Yes

(A breakdown of the regions can be found on the last page) A total of 100 points were available. The three applications were reviewed and scored independently by an internal RFP review committee consisting of three members. The average score of each Offeror is provided for review. The following categories were used to determine the score:

Category

Maximum Score Possible

SW CARE Center

SW Regional Housing & CDC

El Camino Real Housing Authority

Organization Capacity 30 30 28 28 Housing Experience 30 30 10 17 Finance 20 17.5 20 20 Areas to be Served 20 20 20 13.5

TOTAL 100 97.5 78 78.5 For program year 2017-2018, the HOPWA Program has one service provider; SWCC. The agency is a strong partner however MFA felt that it would be in the best interest of the program to increase the number of services providers due to 1) the likelihood of additional funding coming from the New Mexico Department of Health in the amount of $500,000.00 and 2) having only one service provider creates more vulnerability for MFA and the HOPWA Program. The RFP was written to allow for two service providers in each region. As outlined above, SWCC applied for the entire state and the other two offerors, SWR and ECR applied for the southern region. Although SWCC scored the highest, staff believes it is in the best interest of MFA and the HOPWA program that the two new agencies be awarded the Southern part of the state and SWCC be awarded the Northern region and the City of Albuquerque. This would expand the service providers throughout the southern part of the state and allow for additional outreach opportunities. The review committee is recommending that the $783,979.22 in HOPWA funding be awarded as outlined below:

Agency Region Program Amount Admin Amount Total Award SWCC Northern

City of Albuquerque $206,152.57 $391,147.12

$15,516.00 $29,441.00

$221,668.57 $420,588.12

ECR Southern I $64,211.31 $4,833.00 $69,044.31 SWR Southern II $67,591.22 $5,087.00 $72,678.22 Total $729,102.22 $54,877.00 $783,979.22

Upon Board approval staff will provide contracts to the three agencies for the 2018/2019 program year which begins on July 1, 2018. Summary: Staff recommends that the Board approve the following three service providers for the HOPWA funding of $783,979.22 and $24,246.78 of admin to MFA:

• Southwest Care Center (SWCC) for the Northern Region and the City of Albuquerque. • El Camino Real Housing Authority (ECR) for the Southern Region I which consists of the following counties:

Torrance Grant Catron Sierra Socorro Otero Lincoln Hidalgo De Baca Luna Curry Eddy Roosevelt Lea Chaves

• Southwestern Regional Housing & Community Development Center (SWR) for the Southern Region II which

would be Dona Ana County.

The Southern Region is being split to allow the new agencies to have an equal share of the funding available to the region. This is calculated by the number of individuals with AIDS/HIV living below the federal poverty level in these counties.

Board approval would allow the HOPWA service providers to receive a one year contract with the option of two additional annual renewals.

Tab 10


MEMORANDUM

TO: MFA Board of Directors Through: Contracted Services on June 5, 2018 Through: Policy Committee on May 29, 2018

FROM: Amy Gutierrez, NM Energy$mart Program Manager DATE: June 13, 2018 SUBJECT: Approval of 2018/2019 NM Energy$mart Service Providers Recommendation: Staff recommends that the Board approve Central NM Housing Corporation for Territory 1 (Northern Territory) and Southwestern Regional Housing and Community Development Corporation for Territory 2 (Southern Territory). Board approval would allow the NM Energy$mart Service Providers to receive a one year contract with the option of four additional annual renewals. Background: The NM Energy$mart Program “Program” is primarily funded by the U.S. Department of Energy through its Weatherization Assistance Program funds. Other funding sources include LIHEAP, NM Gas and PNM. The Programs’ purpose is to help low-income households reduce their energy consumption and costs and improve their health and safety by implementing energy-saving measures in their homes. MFA administers the Program statewide through local community-based organizations. Anticipated funding for program year 2018/2019 is $6,199,852. The NM Energy$mart RFP was approved by the MFA Board of Directors on April 18, 2018 and released to the public on the same day. RFP training was held on April 26, 2018 and the response deadline was May 11, 2018. Four Offerors responded to the NM Energy$mart RFP:

Agency Name

Area Applied for

Met Minimum Threshold

Central NM Housing Corporation Territory 1 Yes SW Regional Housing and Community Development Corporation Territory 3 Yes Biel Electrical Plumbing Territory 2 No F.N.P.N.M. Co., Inc. Unknown No

A total of 120 points were available. The applications were reviewed and the two agencies that did not meet minimum threshold did not get scored. The remaining two applications were scored independently by an RFP review committee consisting of four members. The average score of each Offeror who met minimum threshold is provided for review. The following categories were used to determine the score for each agency:

Criteria

Maximum Score Possible

CNMH

SRHCDC

Submission of complete application 5 5 5 Per DOE regulation 10 CFR 440.15(3), current NM Energy$mart Service Providers receiving DOE and LIHEAP funds, will be given priority over other Offerors

10

10

10 Organization Capacity 30 28.75 24.25 Finance 20 17.75 19.25 Energy Efficiency/Construction Experience 25 23 21.75 NM Energy$mart Program Implementation Plan 30 26.625 29.25

TOTAL 120 111.125 109.5 Based on the applications received, there were no qualified applicants for Territory 2. Therefore, as outlined in Section 11 - Geographic Area to which the RFP applied – which states that if there are not three successful Offerors or if all territories are not applied for, the successful Offerors would revert back to the territories currently covered by the existing service providers. The review committee is recommending Central New Mexico Housing Corporation as the Service Provider for the Territory 1 (Northern Territory) and SW Regional Housing and Community Development Corporation as the Service Provider for Territory 2 (Southern Territory) Agency Service Area Counties Served

Central New Mexico Housing Corporation

Territory 1 (Northern Territory)

McKinley, Cibola, Sandoval, Bernalillo, Valencia, Socorro, Torrance, Guadalupe, Quay, DeBaca, Curry, Roosevelt, San Juan, Rio Arriba, Taos, Los Alamos, Santa Fe, Colfax, Mora, San Miguel, Harding, Union

Southwestern Regional Housing and Community Development Corporation

Territory 2 (Southern Territory)

Eddy, Grant, Sierra, Luna, Dona Ana, Lincoln, Otero, Chaves, Hidalgo, Lea, Catron

Anticipated total funding for the NM Energy$mart Program for the program year 2018/2019 is $6,199,852.00. The approximate Department of Energy (DOE) and LIHEAP (Low Income Heating Energy Assistance Program) funding and units for each territory are as follows: Central New Mexico Housing will receive $2,918,555.13 for a total of 306 units to be weatherized. Southwestern Regional Housing will receive $1,309,305.75 for a total of 115 units to be weatherized. The total of 421 units is calculated into each county on the attached map. Upon Board approval, staff will amend the Department of Energy’s State Plan with a budget modification to reflect two service providers and two service areas. The budget modification will also specify the required units and funding in each territory. In addition, contracts will be issued to each Service Provider effective July 1, 2018. Summary: Staff recommends that the Board approve Central NM Housing Corporation for Territory 1 (Northern Territory) and Southwestern Regional Housing and Community Development Corporation for Territory 2 (Southern Territory) as the service providers for the NM Energy$mart Program. Board approval would allow the selected Service Providers to receive a one year contract with the option of four additional annual renewals.

Harding 5

McKinley 12

Grant 7

Hidalgo 3

Otero 9

Roosevelt 5

Chaves 10

Guadalupe 3

Curry 8

Quay 5 Bernalillo 64

Catron 6

Cibola 7

Colfax 6

De Baca 3

Dona Ana 24

Eddy 8

Lea 8

Lincoln 5

Los Alamos 8

Luna 5

Mora 5

Rio Arriba 8 San Juan 16

San Miguel 8

Sandoval 14

Santa Fe 17

Sierra 5

Socorro 5

Taos 8

Torrance 6

Union 5

PY 2018/2019 Territory Map

Valencia 12

NM Tribes and Pueblos:

Cibola Acoma 5 Laguna 2 Zuni 2 Sandoval Cochiti 1 Jemez 1 Sandia 2 San Felipe 3 Santa Ana 1 Santo Domingo 3 Zia 1 Santa Fe San Idelfonso 5 Santa Clara 6 Nambe 2 Pojoaque 5 Tesuque 5 Valencia Isleta 4 Taos Picuris 6 Taos 6 Navajo Nation 29

Rio Arriba) Jicarilla Apache 2 Ohkay Owingeh 5

Otero Mescalero 3

Tab 11


MEMORANDUM

TO: Board of Directors

Through: Contracted Services Committee – June 5, 2018 Through: Policy Committee – May 22, 2018

FROM: Shannon Tilseth, Program Manager DATE: June 13, 2018 SUBJECT: Limited Source Procurement 2018/2019 Linkages Program Award Recommendations Recommendation Staff recommends approval to award Linkages Housing Administrators a total of $1,242,000.00 under Limited Source Procurement for program year 2018/2019. In addition, staff is requesting that the approval allow for two, one year extensions to the contract which would expire on June 30, 2021. Background The Linkages Program is funded by the state of New Mexico, Behavioral Health Service Division “BHSD”, Human Services Department “HSD”. Funding provides permanent, supportive housing vouchers to extremely low income persons with a severe mental illness diagnosis who are homeless or at risk of becoming homeless. The designation of the service areas are based on the availability and qualifications of local Housing Administrators “HA” and a HSD Certified Social Services Administrator “SSA” whose role is to oversee the provision of supportive services and help clients obtain and sustain permanent housing. Social services are provided as an integral part of mental health management. Limited Source Procurement is used for services that are available from only one source, or when there are such a limited number of qualified sources for the procurement, as determined under the facts and circumstances of the procurement, that a competitive, sealed proposal procedure would be impractical. In New Mexico, there are a limited number of Housing Administrators that qualify for funding under the Linkages Program. The program requires Housing Administrators to have both rental voucher experience and a partnering arrangement with a Certified Social Services Administrator. For this reason, staff recommends that funding be awarded to the selected qualified Housing Administrators on a yearly basis, through Limited Source Procurement. There are currently six Housing Administrators administering the Linkages Program. Each year, current Linkages HA’s must submit documentation to ensure they are in good standing by submitting the following:

• Proof that all outstanding MFA monitoring findings and/or concerns have been corrected or

addressed; • Proof of current registration as a charitable organization with the New Mexico Charitable

Organizations Registrar, NM Attorney General’s Office (if applicable); • A current financial audit or audited financial statements; • The most recent monitoring letters from all major funders; • Proof of active status under System Award Management (sam.gov); • Proof that organization and executive director have not been suspended or debarred under HUD’s

Limited Denial of Participation” conferred upon it by MFA or other funding sources; • MFA’s Offeror Certification of Compliance • Signed agreement with the designated SSA(s) MFA receives $1,350,000.00 in reoccurring funding from the state of New Mexico each year. The chart below shows how the funding is allocated.

2018/2019 Funding Allocations

Amount

Linkages Housing Administrator Award $1,242,000.00 MFA Administrative Fee @ 8% $108,000.00

Total $1,350,000.00

Discussion Since Linkages is a supportive housing program, funding allocations for each HA are based on the amount of funding needed to support the number of vouchers awarded on an on-going basis. Awards are also based on the fair market rent in the given area. Each voucher represents a household. Each HA will receive $100 per voucher per month in administrative fees which is intended to support organizational costs associated with administering this program. The chart below shows the recommended allocations for the six Linkages HA’s for program year beginning July 1, 2018.

Housing Administrator

Area Served

Recommended Award

Maximum # of Vouchers

Bernalillo County Housing Department Albuquerque, Sandoval $430,000.00 56 Mesilla Valley Community of Hope Dona Ana, Luna $160,000.00 24 Northern Regional Housing Authority Taos $68,000.00 8 San Juan County Partnership San Juan $64,000.00 8 The Life Link Santa Fe $422,000.00 41 Western Regional Housing Authority Grant $98,000.00 16

Total $1,242,000.00 153

Summary The Linkages Program is funded by the state of New Mexico, Behavioral Health Service Division, Human Services Department through reoccurring funding on a yearly basis. Funding provides permanent supportive housing vouchers to extremely low income persons with a severe mental illness diagnosis who are homeless or at risk of becoming homeless. MFA receives $1,350,000.00 in reoccurring funding from the state of New Mexico on a yearly basis specifically for the Linkages Program. Staff recommends approval to award Linkages Housing Administrators a total of $1,242,000.00 under Limited Source Procurement for program year 2018/2019. In addition, staff is requesting that the approval allow for two, one year extensions to the contract which would expire on June 30, 2021. Allocations for the upcoming 2018/2019 program year are based available funding and the amount needed by each Housing Administrator in order to maintain housing for all current participants on an on-going basis. Staff is recommending approval of the awards to the six existing housing administrators for the Linkages Program in the amount of $1,242,000.00 and $108,000.00 in MFA administrative fees.

Tab 12

PROPOSED MFA OFFICERS JUNE 13, 2018

MFA Officers

Vice Chairman: Angel Reyes

Treasurer: Steven J. Smith

Secretary: Jay Czar

Assistant Secretary: Gina Hickman

Assistant Treasurer: Yvonne Segovia

Nominating Committee

Chair, Dennis Burt Lieutenant Governor John Sanchez Attorney General Hector Balderas

Tab 13

MEMORANDUM TO: MFA Board of Directors FROM: Rene Acuña, Director of Homeownership DATE: June 13, 2018 SUBJECT: Quarterly Single Family Production Report from January 1, 2018

through March 31, 2018.

• Interest Rate History by Program -(01/01/2018 through 03/31/2018)

2

• Reservations by Program-(01/01/2018 through 03/31/2018)

• Average Historical Weekly Reservations and Cancellations from Janaury 1, 2018 Through March 31, 2018

Program Reservations (Total)

Avg. Weekly Reservations

Avg. Weekly Cancellations

(Total)

Cancellations (Total)

Percent Cancellations

FIRST HOME CONV $10,132,645 $779,434 $105,869 $1,376,300 13.58%

FIRST HOME GOV'T $68,792,184 $5,291,706 $789,870 $10,268,310 14.93%

NEXT HOME CONV $9,090,025 $699,233 $74,759 $971,862 10.69%

NEXT HOME GOV'T $23,031,620 $1,771,663 $192,552 $2,503,180 10.87%

TOTAL (All Programs) $111,046,474 $8,542,036 $1,163,050 $15,119,652 13.62%

3

• Comparison of Down Payment Assistance (DPA) Sources -(01/01/2018 through 03/31/2018) purchased loans.

• Comparison of Loan Types-(01/01/2018 through 03/31/2018)

4

• Financing Execution:

• Borrower Demographics:

Qtr 2 (FY) Qtr 1(FY)

Prior Fiscal Year (10/01/16 -

9/30/17 Average Sales Price $152,319 $151,198 $146,734 Average Loan Amount $148,895 $148,007 $143,618 Average Down Payment Assistance Amount $5,932 $5,915 $5,736 Average Household Income $50,372 $49,274 $49,906

Average Family Size 2.6 person household

2.5 person household

2.5 person household

Ethnicity 40.2 percent

Minority 40.5 percent

Minority 37.5 percent

Minority Average Borrower Age 38 years old 37 years old 36 years old Average Number of Dependents 1 dependent 1 dependent 1 dependent

Borrower Gender 43.57% female /

56.43% male 44.25% female /

55.75% male 44.08% female /

55.92% male Average FICO score 679 682 684

5

• MFA Program Utilization: Program utilization is calculated by taking the total number FHA purchase money loans originated within the state and dividing it by the number of FHA loans originated by MFA.

QTR 2 (CBMI data)

QTR 1 (CBMI data) FYTD

2016 HMDA Data (LAR)

29.70% 19.51% 23.39% 23.76%

23.39 percent of the purchase money FHA loans within the state were originated though MFA’s program for the period of October 1, 2017 through March 31, 2018.

0M

10M

20M

30M

40M

50M

60M

10/3

1/2

017

11/3

0/2

017

12/3

1/2

017

1/3

1/2

018

2/2

8/2

018

3/3

1/2

018

4/3

0/2

018

5/3

1/2

018

6/3

0/2

018

7/3

1/2

018

8/3

1/2

018

9/3

0/2

018

FY17 - Amount

FY18 - Amount

MonthYear

Am

ou

nt

Reservation Loans

10/31/2017 11/30/2017 12/31/2017 1/31/2018 2/28/2018 3/31/2018 4/30/2018 5/31/2018 6/30/2018 7/31/2018 8/31/2018 9/30/2018 Total

FY17 - Amount $27,752,494.89

204

$28,836,442.56

210

$30,277,852.52

209

$28,324,623.00

194

$33,948,830.50

235

$46,172,702.00

315

$39,608,620.50

280

$43,093,534.07

293

$41,025,575.00

282

$34,217,612.00

232

$37,219,048.00

253

$33,587,480.00

230

$424,064,815.04

2937

FY18 - Amount $33,603,011.00

225

$38,259,008.00

261

$28,491,019.00

190

$34,513,278.50

234

$36,223,569.00

244

$39,758,810.00

278

$44,643,587.00

308

$50,049,889.00

340

$5,317,862.52

32

$0.00

0

$0.00

0

$0.00

0

$310,860,034.02

2112

Number Loans

Number Loans

0M

5M

10M

15M

20M

25M

30M

35M

40M

45M

10/3

1/2

017

11/3

0/2

017

12/3

1/2

017

1/3

1/2

018

2/2

8/2

018

3/3

1/2

018

4/3

0/2

018

5/3

1/2

018

6/3

0/2

018

7/3

1/2

018

8/3

1/2

018

9/3

0/2

018

FY17 - Amount

FY18 - Amount

MonthYear

Am

ou

nt

Purchased Loans

10/31/2017 11/30/2017 12/31/2017 1/31/2018 2/28/2018 3/31/2018 4/30/2018 5/31/2018 6/30/2018 7/31/2018 8/31/2018 9/30/2018 Total

FY17 - Amount $31,207,481.11

219

$25,074,468.34

178

$24,340,939.99

180

$33,225,428.64

233

$24,548,614.22

171

$30,525,762.34

212

$31,722,793.58

214

$31,279,666.93

219

$33,962,980.37

235

$22,712,209.80

156

$38,877,143.18

268

$20,532,602.07

140

$348,010,090.57

2425

FY18 - Amount $35,971,491.14

244

$33,810,722.27

228

$33,117,774.90

224

$42,814,178.01

289

$28,883,163.13

193

$29,051,630.77

195

$32,249,688.43

226

$37,519,719.64

258

$1,267,173.00

10

$0.00

0

$0.00

0

$0.00

0

$274,685,541.29

1867

Number Loans

Number Loans

Tab 14

1 G:\Board Reports\Staff Actions\Staff Actions 2018

Staff Actions Requiring Notice to Board During the Period of May 31, 2018

Department and Program Project Action Taken Comments

Community Development

HOPWA

Request for Farmington contract amendment to move $28,000 to Roswell and Santa Fe contracts to ensure all funding is expended by June 30, 2018.

Approved by Policy Committee on April 22, 2018

Community Development/Linkages Program

Linkages

Request to adjust award allocations between Linkages Housing Administrators

Approved by Policy Committee on May 1, 2018

Community Development/Linkages Program

Linkages

Request to increase Linkages award for San Juan County Partnership from unallocated Linkages funding

Approved by Isidoro Hernandez on May 15, 2018

Servicing March 2018 Quarterly Loan Servicing Quality Control Review

Approval of report issued by REDW. No findings.


Community Development/Rental Assistance Program

RAP

Rental Assistance Award Recommendations for PY 2018/2019



EHAP

Request to approve EHAP awards for 2018-2019 PY



EHAP

Request to approve Limited Source Procurement and Renewal of award for NMCEH for 2018-2019 PY



ESG, COC, HOPWA, Linkages

Request for MFA to advance reimbursements from July 1, 2018 through Dec. 31, 2018


Homeownership Single Family Programs Per IRS Bulletin 2018- 28 published May 15, 2018 the income and Acquisition Cost Limits were updated. The new limits go into effect on June 18, 2018.


New Mexico Mortgage Finance Authority 344 4th St. SW, Albuquerque, NM 87102 tel. 505.843.6880 toll free 800.444.6880 fax 505.243.3289 housingnm.org


Through: N/A

FROM: Kathleen M. Sysak-Keeler DATE: June13, 2018 SUBJECT: Single Family Mortgage Bonds 2018 Series A – Pricing Summary The 2018 Series A transaction is a combination new money and refunding bond issue which closed on May 10, 2018. The following is a summary of the bond sale: ~Structure: The bond issue is a $62.0 million tax-exempt traditional bond issue which provides for non-AMT serial bonds, term bonds and a premium planned amortization class (“PAC”) bond along with AMT serial bonds. ~Marketing: In order to enhance the marketing of bonds to retail investors, four selling group members participated in the underwriting syndicate, namely, D.A. Davidson & Co., Fidelity Capital Markets, Stifel Nicholas & Company, Inc. and UBS. New Mexico retail investors had first priority followed by national retail investors. The underwriting syndicate submitted $7.9 million in orders and was allotted $4.8 million of bonds. Total orders for the bond issue were $ 214.4 million for both retail and institutional investors. The institutional investors were very interested in PAC bonds and the term bonds. ~Use of Bond Proceeds: The bond issue is comprised of a new money portion and a refunding portion. The $50.0 million new money portion of the transaction is being used to originate new mortgage loans (the “new money portion”) and to roll forward a subsidy generated from prior bond issues which helped maintain competitive mortgage rates. The weighted average mortgage rates are as follows:

Program Government Conventional FIRST HOME 4.681% 4.940%

The $12.0 million refunding portion of the bond issue is being used to refund the 2008 Series C and 2008 Series D bond issues (the “refunding portion”).

Board of Directors Page 2 June 13, 2018 RE: 2018 Series A Pricing Summary

~Spread: The spread on the transaction is 1.122%. Spread is the difference between the mortgage yield and the bond yield. Maximum spread permitted by federal tax law is 1.125%. The net present value benefit of the transaction including the subsidy generated by the refunding is $3.5 million, or approximately 5.7% of the amount of the bond issue. ~Investment of Bond Proceeds: Funds from the new money portion of the bond issue are invested in Federated Government Obligations Fund Institutional Shares through Zions Bank, the General Indenture Trustee. Funds from the refunding money portion of the bond issue are invested in US Treasury securities through Zions Bank, the General Indenture Trustee, until June 30, 2018. On July 1, 2018, the funds will be used to call bonds from the 2008 Series C and 2008 Series D bond issues. The attached Exhibit 1 contains a table summarizing more detailed information about the 2018 Series A bond as well as bond issue characteristics from other recent single family issuances for comparative purposes. Following Exhibit 1 is a comprehensive in-depth “Post-Sale Analysis” prepared by MFA’s Financial Advisor, CSG Advisors.

EXHIBIT 1

For Info Only For Info Only For Info Only

2016C 2017A 2017B 2018A

New Money & Taxable Refunding New Money & New Money &

Refunding Refunding Refunding

Tax-Exempt Tax-Exempt Tax-Exempt

Type of Structure Traditional Pass Through Traditional Traditional

1 Tax Exempt Bonds $50,000,000 n/a $45,000,000 $50,000,000

Taxable Bonds n/a n/a n/a n/a

Tax-Exempt Refunding Bonds 18,250,000 n/a 12,250,000 12,000,000

Taxable Refunding Bonds n/a $27,898,301 n/a n/a

Total Amount of Bonds Issued $68,250,000 $27,898,301 $57,250,000 $62,000,000

2 Bond Issue(s) Refunded 2007A and B 2007C, D and E 2008A and B 2008C and D

3

$7.2 million/$2.5

million/$2.9

million None/$1.7 million

$1.4 million/$1.4

million

$3.2 million/$3.5

million

4 Original Bond Ratings:

Standard & Poor's None None None None

Moody's Aaa Aaa Aaa Aaa

5 Pricing Date(s) 10/25/2016 5/2/2017 10/3/2017 4/3/2018

6 Bond Closing Date 11/23/2016 5/18/2017 11/16/2017 5/10/2018

7 Serial Bond Maturities

AMT None None None 1/1/19-1/1/22

Non-AMT 3/1/18-9/1/27 None 9/1/18-9/1/29 7/1/22-7/1/30

Taxable None None None None

8 Term Bond Maturities 9/1/31, 9/1/36, 8/1/2038 9/1/32, 9/1/37, 7/1/33, 7/1/38,

9/1/41 9/1/42, 9/1/47, 7/1/43, 7/1/48,

3/1/48

9 Premium PAC Maturity 3/1/45, 3/1/45 None 3/1/48 1/1/49

10 Split Between FIRST HOME

Government and Conventional Loans

Government 91% n/a 90% 87%

Conventional 9% n/a 10% 13%

11 Weighted Average Loan Rates+

FIRST HOME - Government 3.501% n/a 3.878% 4.681%

FIRST HOME - Conventional 3.882% n/a 3.797% 4.940%

12 10-Year Treasury Rate at Pricing 1.76% 2.29% 2.32% 2..77%

13 GIC Rates**

Acquisition Fund Rate n/a n/a n/a n/a

Float Fund Rate n/a n/a n/a n/a

14 MFA Contribution at Closing

Cost of Issuance (COI) $645,000 $350,000 $565,000 $595,000

COI as a % of Bonds Issued 0.95% 1.25% 0.99% 0.96%

Negative Arbitrage Deposit $800,000 n/a $460,000 $500,000

15 Yield Spread 1.122% n/a 1.122% 1.122%

16 Administrative Fee (to MFA) 0.250% 2.534% 0.250% 0.180%

17 Bond Allocation System Followed*** Yes Yes Yes Yes

*Subsidy was generated by a prior bond issue.

+Weighted average rate of loans in the pipeline.

**The Guaranteed Investment Contract is competitively bid.

***The bond allocation system that is followed is common in the investment banking industry and is as follows:

The lead manager keeps track of when the orders are received which is referred to as an order flow tracking system.

The bond allocation system also dictates that Bonds are awarded to managers prior to any selling group members

even though group members may have entered orders first. In-state retail orders receive first priority, followed by

orders for the benefit of the group which are allocated by management fee percentage; next are net designated orders

placed through the senior manager where the buyer designates the sales credit to specific managers, and finally,

member orders receive the lowest priority.

MFA Subsidy*/Benefit-(New

Available)/ Present Value Economic

Benefit


Summary of Recent Bond Issue Characteristics

$62,000,000 New Mexico Mortgage Finance Authority

Single Family Mortgage Program Class I Bonds 2018 Series A-1 (non-AMT) $59,505,000

2018 Series A-2 (AMT) $2,495,000

POST-SALE ANALYSIS

KEY RESULTS FOR MFA Purpose. This transaction is a traditional single-family bond issue with semi-annual interest and principal, though bonds are redeemed quarterly. Its purpose, like similar prior issues and monthly pass-through bond issues is to finance new loan production at as close to the maximum spread permitted by the IRS as possible while also refunding existing bonds to a significantly lower interest rate. Additionally, this transaction reallocates zero participation loans from prior series (2017 Series B) within the required time of 18 months for which to reallocate loans. Approach and Strategy. Periodically, MFA has used traditional bond structures—such as 2016 Series A in the spring of 2016, 2016 Series C in the fall of 2016, 2017 Series B in the fall of 2017, and now 2018 Series A —to finance new production coupled with refunding older bonds in conjunction with the new issue. An important reason for using a traditional bond structure for 2018A is to refund 2008C and 2008D on a tax-exempt basis which will allow MFA to finance more newly financed MBS on its balance sheet through bond issuance than it could without the subsidy generated by the refunding. Using this traditional structure on 2018A is therefore important to MFA’s ongoing financing program. By carrying forward the zero participations, MFA is able to help protect itself against interest rate risk on the portion of its loan pipeline that it chooses to finance with bonds in the future. From a strategic point of view, MFA has been:

1. Reserving loans each week since early February 2018; taking into account current expected rates on a traditional bond structure,

2. Issuing bonds when those loans are packaged into mortgage-backed securities several months later, and

3. Protecting itself against rates rising before bonds are sold, by using zero participation interest subsidies it has earned from past transactions.

Primary Objectives. MFA therefore has three primary objectives:

1. Finance existing production at the lowest yield possible,

2. Use as few of MFA’s approximately $7 million of zero participations (prior to issuing 2018A) as possible to achieve full spread, thus preserving more zero participations for future production, and

3. Raise bond premium so as to purchase the MBS from the servicer at 101%, to fund cash flow lag, and to fund a portion of the negative arbitrage and costs of issuance of the transaction.

Structure. The 2018 Series A bonds:

• Included bond proceeds sufficient to finance $50,000,000 of new pipeline production and provide sufficient proceeds to use and store zero participations,

• Included $12,000,000 in proceeds to refund prior MFA bonds (2008 Series C and Series D) that are

NM MFA 2018 Series A Post-Sale Analysis Page 2 of 5

optionally callable on July 1, 2018,

• Were structured with serials (both AMT and Non-AMT), term bonds and Planned Amortization Class (PAC) bonds,

• Sold the PAC bonds with a total premium of $1,760,160, which provides additional funds to purchase the MBS as well as fund a majority of the costs of issuance,

• Were priced 5 weeks prior to closing, enabling MFA to finance more of its pipeline production and lock in rates sooner, thus reducing both interest rate risk and negative arbitrage,

• Allowed for either GNMA or FNMA MBS depending on MFA’s loan pipeline,

• Provided MFA with an optional par call in just over 9 years if it proves profitable to redeem the bonds in the future,

• In combination with Authority funds, deposited $500,000 in a negative arbitrage account for securities – including those to be financed by the zero participations – that had not yet been originated by bond closing. We expect most or all of these funds to be transferred back to MFA after 2018A is fully originated which is expected to occur in July 2018.

Results. The bond structure consisted of four major components: non-AMT serial bonds of Series A-1, non-AMT term bonds of Series A-1, a non-AMT premium PAC bond of Series A-1, and AMT serial bond for all of Series A-2. Investor interest for the PAC bonds was very strong, with 7 total orders (including 3 for all) totaling $121.5 million (4.3x subscribed) for the $28.5 million PAC bonds. As a result, the yield on the PAC bonds was reduced by 0.03%. 1. Yields. The bond yield (true interest cost) was 3.32% assuming 100% FHA prepayments on new

loans and 12-month historic PSA speed on the transferred mortgage certificates.

2. Use of Zero Participations. In order to achieve full spread, 2018A created approximately $3.2 million in zeros, leaving $10.3 million in zeros for future bond issues (assuming participation with future issue in 12 months).

3. Net Economic Benefits. The transaction’s projected net present value before zeros was $2.2 million at 150% PSA prepayment speed. Including the zeros consumed the net present value was $3.5 million, or approximately 5.7% of the bonds issued.

Bond Results. Following are key highlights: 1. Timing. The bonds were priced on Tuesday, April 3rd with a retail order period the morning of the

3rd and an institutional order period that afternoon.

During the pricing, the Treasury market was stable, closing at 2.77% on the 10 year Treasury on Tuesday, 0.03% higher than the 2.74% yield the day prior. The municipal market in terms of MMD rates was adjusted higher by 0.01 to 0.02% higher on Tuesday, April 3rd. See “Market Details” below for a full description of the market leading up to the pricing date.

2. Retail Interest. A separate 2.5-hour retail order period was established with first priority to orders from New Mexico retail investors and second priority to national retail investors. This resulted in $22.4 million of retail orders representing a 58% increase in retail orders compared to 2017B, and


significantly greater than the retail orders achieved in 2016C and 2016A ($9.9 million and $6.6 million of total retail orders, respectively). The orders were particularly strong across the 2033 and 2043 term bonds, as well as the shorter A-1 non-AMT serial bonds. Of the $7.5 million of non-AMT serial bonds, a total of $14.4 million of retail orders were received. This was significantly better than serial bond orders on previous transactions and resulted in reducing the bond coupons by 0.05% for $2.43 million of the non-AMT serial bonds from July 2027 through July 2029. Appetite for the A-2 AMT serial bonds was lighter, with $1.6 million in retail orders. The last three serial bonds were not fully subscribed and as such, their rate was increased by 0.05%. Overall, this was the strongest retail participation for MFA’s bonds in several years.

3. Institutional Interest. There was strong institutional interest in the $28.5 million in PAC bonds as noted above, with the PAC Bonds subscribed at 4.3 times ($121.5 million in orders). Due to the oversubscription, the PAC bonds were lowered in yield by 3 basis points. In addition, institutions came in with orders totaling $55.3 million for the (4) term bonds, such that combined with retail orders, the term bonds well all oversubscribed at levels from 2.4 times to 2.9 times.

4. Selling Group. To enhance the order flow particularly with retail investors, four selling group members were included in the underwriting syndicate for 2018A. Selling group members included D.A. Davidson, Fidelity Capital Markets, Stifel Nicholas, and a new addition, UBS. See below for orders and allotments from the selling group, of which Fidelity brought the most orders to the issuance:

RETAIL ORDERS BY SELLING GROUP MEMBER (THOUSANDS):

Selling Group Member Orders Allotments D.A. Davidson & Company $ 1,385 $ 590 Fidelity Capital Markets 3,900 3,080 Stifel Nicolaus 1,620 275 UBS 1,030 845 TOTAL $ 7,935 $ 4,790

The selling group was very helpful to the issuance in terms of generating additional retail interest, with Fidelity accounting for 50% of the orders.

5. Comparable Transactions. The 2018A PAC bonds, the 2033 term bond, and the 2038 term bond

priced very well compared to other HFA issues in the market. The 2043 and 2048 term bonds were priced at slightly wider spreads, while the serials bonds were largely in-line or lower than comparable issues. The most direct comparable for the 2018A-1 (non-AMT) bonds was Iowa’s $38.8 million non-AMT issue that priced the day prior. All of MFA’s serials bonds as well as the 2033 term bond and PAC bond priced at yields equal to or lower than those achieved by Iowa. The spread to MMD achieved for MFA’s PAC bonds (+60 to MMD) was the lowest spread we’ve seen in several months. Iowa did not have a 2043 or 2048 term bond, but Montana priced similar maturing bonds in late-March at spreads to MMD of +90, of which MFA’s bonds were priced at the same coupon, but at 0.04% higher spreads to MMD.

The latest AMT issuance from HFAs was New York (SONYMA) in late-February. MFA’s serials bonds were priced at spreads at or slightly higher than SONYMA’s transactions, despite NY’s specialty state muni status that gives it a greater advantage in achieving lower yields. See Section 3 for detailed pricing comparables of all recent tax-exempt traditional bond issues priced around 2018 Series A.


MARKET DETAILS Key Dates: Pricing Date: Tuesday, April 3rd, 2018

Closing Date: Thursday, May 10th, 2018 Economic Calendar. Two weeks prior to the sale, the Federal Reserve announced, as expected, its first interest rate hike of the year. This had already been fully anticipated by the market and did not create any major market changes. Several Federal Reserve officials have continued speeches indicating that the Fed will likely raise short-term rates another 2 to 3 times throughout 2018. In the week before the sale, economic indices came in much as anticipated, including initial and continuing jobless claims, leading indicators, and new home sales. On Monday prior to the sale, the ISM manufacturing index was released and indicated slightly weaker factory activity than forecast. On Tuesday, the day of pricing, the Redbook retail store activity results were released and indicated same store sales up 4.4% year-on-year in the March 31 week, showing the strongest growth of the year. This helped drive yields modestly higher on April 3rd. Treasuries. The 10-year Treasury started the year at 2.46%, an increase of 0.41% from early September 2017. Benchmark 10-year Treasury yields have consistently trended higher this year, topping out at 2.94% on February 21, rising from the year’s low in early January. Faster growth, the risk of some amount of inflation and Fed tightening have been the driving themes, pushing up Treasury rates and worrying stock markets. December’s federal tax changes and recent proposals for increased fiscal stimulus and federal budget deficits have been keys to this shift in investor outlook. Since February 21st, the 10-year UST declined from a 2.94% to a 2.78% yield on the day of pricing 2018A. Concerns over trade wars, tariffs, and increased government regulation of technology companies sparked flights to safety in the capital markets, causing yields to decline. Municipals. While municipal bond yields generally closely track the movements in Treasury yields, the relationship has been distorted by high profile municipal credit events (Puerto Rico’s problems, most recently) and international investment flows, as well as supply and demand for municipal bonds. Municipals have slightly outperformed Treasuries since December, in part because of the lack of supply in the municipal market. The municipal volume was very high at the end of the year as issuers sought to meet end of the year deadlines in the proposed tax bill, including the end of advance refundings. The result has been modest levels of new issuance in early 2018. Two unanticipated impacts post-tax law changes have been: 1) positive inflows to municipal mutual funds each week in 2018, and 2) continued buying by insurance companies, despite a record catastrophe year in 2017 and the reduction in federal corporate tax rates. Additional factors include:

• Through April 13, 2018, new muni bond issuance is down 19% compared to the same period last year.

• Positive net mutual fund inflows since January 2018 have helped to absorb new issue supplies and kept muni yields improving relative to treasuries. Year-to-date, municipal bond funds have received $6.5 billion in net investment.

• Spreads relative to treasuries remain compressed due to the absolute low level of rates. o Despite recent improvement (see Table 1 below), the ratios of the 10- and 30-year MMD

indices to their respective treasury bond yields still remain above their long term historical averages of around 80%.


TABLE 1: COMPARISON OF RATES IN RECENT TRANSACTIONS

Issue Date 10 Year Treasury

10 Year MMD

MMD to Treasury

Ratio

30 Year Treasury

30 Year MMD

MMD to Treasury

Ratio 2013 A 12/12/12 1.72% 1.62% 94.2% 2.90% 2.59% 89.3% 2013 B 5/9/13 1.81% 1.75% 96.7% 3.01% 2.87% 95.3% 2013 C 8/7/13 2.61% 2.73% 104.6% 3.68% 4.28% 116.3% 2014 A 12/5/13 2.88% 2.73% 94.5% 3.92% 4.19% 106.9% 2015 A 2/19/15 2.11% 2.07% 98.1% 2.73% 2.88% 105.5% 2016 A 3/15/16 1.97% 1.88% 95.4% 2.73% 2.84% 104.0% 2016 C 10/26/16 1.79% 1.72% 96.1% 2.53% 2.55% 100.8% 2017 B 10/3/17 2.33% 2.01% 86.3% 2.87% 2.82% 98.3% 2018 A 4/3/18 2.77% 2.43% 87.7% 3.01% 2.96% 98.3% Change from 2017B to 2018A

+ 44 bps + 42 bps +1.4% + 14 bps + 14 bps unchanged

UNDERWRITING Underwriter. RBC Capital Markets served as senior managing underwriter and Raymond James as co-manager. As described above, we also had a four firm selling group. Underwriting Fees. The underwriter discount of $6.64 per $1,000 bonds is reasonable compared to other similarly sized issues in the market. Performance. RBC Capital Markets as book-running senior manager and Raymond James as co-manager worked well together and achieved good order flow as described above. The strong order flow was evidenced by the ability to: 1) produce sufficient orders for all term bonds, 2) reduce the yield of the PAC bond, and 3) generate the most retail orders ($22.5 million) than MFA has seen in several years. The four firm selling group also enhanced the sale of the bonds by bringing in an additional $7.9 million in retail orders. We would recommend a selling group on the next traditional bond issuance as well.

Tab 15


Combined Financial Statements and Schedules

April 30, 2018

NEW MEXICO MORTGAGE FINANCE AUTHORITYFINANCIAL REVIEW

For the seven‐month period ended April 30, 2018

SUMMARY OF NEW BOND ISSUES: Single Family Issues: $45 mm 2017 Series B Bonds‐New Money (November)

$12.3 mm 2017 Series B Bonds‐Refunding (November)Multi‐family Issues: None

COMPARATIVE YEAR‐TO‐DATE FIGURES (Dollars in millions):7 months 7 months % Change Forecast Actual to Forecast/Target 4/30/2018 4/30/2017 Year / Year 4/30/2018 Forecast 9/30/18

PRODUCTION1 Single family issues (new money): $45.0 $50.0 ‐10.0% $45.0 0.0% $111.02 Single family loans sold (TBA): $179.9 $135.6 32.7% $151.1 19.1% $259.03 Total Single Family Production $224.9 $185.6 21.2% $196.1 14.7% $370.04 Multifamily issues: $0.0 $0.0 0.0% $0.0 0.0% $20.05 Single Family MBS Payoffs: $33.0 $41.0 ‐19.5% $38.0 ‐13.1% $65.1STATEMENT OF NET POSITION

6 Avg. earning assets: $915.4 $943.7 ‐3.0% $925.8 ‐1.1% $940.67 General Fund Cash and Securities: $85.3 $74.8 14.0% $84.5 1.0% $81.68 General Fund SIC FMV Adj.: $0.0 ($0.1) 100.0% $0.0 N/A $0.09 Total bonds outstanding: $653.2 $687.0 ‐4.9% $676.8 ‐3.5% $698.0STATEMENT OF REVENUES, EXPENSES AND NET POSITION

10 General Fund expenses (excluding capitalized assets): $8.0 $7.0 14.3% $8.7 ‐8.0% $15.011 General Fund revenues: $13.6 $11.8 15.3% $11.2 21.4% $19.212 Combined net revenues (all funds): $6.3 $6.4 ‐1.6% $6.2 1.9% $10.613 Combined net position: $230.8 $218.7 5.5% $230.7 0.1% $235.214 Combined return on avg. earning assets: 1.17% 1.16% 0.9% 1.13% 3.5% 1.13%15 Net TBA profitability: 1.64% 2.10% ‐21.9% 1.70% ‐3.5% 1.70%16 Combined interest margin: 1.11% 0.95% 16.8% 1.06% 4.7% 1.06%

MOODY'S BENCHMARKS17 Net Asset to debt ratio (5‐yr avg): 29.68% 26.39% 12.5% 30.47% ‐2.6% 30.47%18 Net rev as a % of total rev (5‐yr avg): 10.23% 9.03% 13.3% 10.39% ‐1.5% 10.39%

SERVICING19 Mortgage Operations net revenues: $3.3 $3.1 6.5% $0.8 335.2% $1.320 Subserviced portfolio $595.6 $225.9 163.7% $539.3 10.4% $749.821 Servicing Yield (subserviced portfolio) 0.39% 0.36% 8.3% 0.36% 8.3% 0.36%22 Combined delinquency rate (MFA serviced) 10.78% 12.15% ‐11.3% 11.79% ‐8.6% 11.79%23 DPA loan delinquency rate (all) 10.99% 12.53% ‐12.3% N/A N/A N/A24 Default rate (MFA serviced) 0.82% 0.57% 43.9% 1.61% ‐49.1% 1.61%25 Subserviced portfolio delinquency rate (first mortgages) 4.47% 2.53% ‐76.7% N/A N/A N/A26 Purchased Servicing Rights Valuation Change (as of 3/31) $2.6 $1.0 160.0% N/A N/A N/A

Legend: Positive Impact, Negative Impact, Caution/Known Trend

Page 1 of 2

NEW MEXICO MORTGAGE FINANCE AUTHORITYFINANCIAL REVIEW

For the seven‐month period ended April 30, 2018

SIGNIFICANT MONTHLY/QUARTERLY FINANCIAL VARIANCES:Staff does have concerns over the subserviced portfolio increased delinquency rates. The Compliance Officer and Director of Servicing are closely monitoring collections and

foreclosure services provided by MFA's subservicer.

CURRENT YEAR FINANCIAL TRENDS & VARIANCES:

In comparison to FY2017 trends indicate improved production and prepayments as well as gains in return on average earning assets, interest margin andMoody's ratios.TBA transaction fees are currently exceeding budget by approximately $2.6 mm or 174% due to production trends. This additional revenue is offset by related lender compensation expense which is exceeding budget by $.5 mm or 58%. During this fiscal year there have been large swings in the State Investment Counsel (SIC) fair market values (FMV) on the General Fund investment portfolio.

Changes in valuations have ranged from $.7 mm in gains and $.9 mm in losses. MFA classifies FMV adjustments on this portfolio as non‐opertaing gains/losses. Servicing expansion continues to provide additional revenues as the subserviced portfolio and purchased servicing rights asset bases increase. This fiscal year MFA is providing a full mortgage warehouse line to Idaho Housing through the FHLB Loans Held for Sale program which will also provide additional revenues.The Loan Loss Reserve (LLR) was increased for Commonweal by $.2 mm based on new broker opinion of value information obtained. The total LLR for Commonwealas of April 30, 2018 is now approximately $.5 mm. In March 2018 staff performed the semi‐annual analysis and adjustment of the down payment assistance loan loss reserves for all 1st mortgages in foreclosure and non‐performing down payment assistance loans. This represented loan loss expense in March 2018 of approximately $.3 mm.Incurred $552k in single family bond cost of issuance expense for 2017 Series B. The refunding component of this issue is estimated to generateapproximately $1.4 mm (net present value) of benefit over time to MFA.Fair market value for purchased servicing rights as of March 31, 2018 was $7.9 mm, an increase of approximately $2.6 mm over cost. GASB requires MFA to utilize "lower of costor market" accounting for this asset. Therefore, no valuation adjustments are anticipated. Current purchased servicing rights are recorded at a cost of $5.4 mm as of March 31, 2018. Valuations are obtained on a quarterly basis.Based on Moody’s issuer credit rating scorecard, MFA’s 29.68% net asset ratio (5‐year average), which measures balance sheet strength, indicates a strong and growing level of resources for maintaining HFA's creditworthiness under stressful circumstances (> 20%). The net revenue as a percent of total revenue measures performance and profitability and MFA’s 10.23% ratio (5‐year average) points to a satisfactory profitability with consistent trends (5%‐10% range). Moody's Investor Services issued an updated credit opinion on MFA. They reaffirmed our Aa3 rating. Comments included strong asset to debt ratio, good profitability and low risk profile due to mortgage‐backed security structure, multifamily risk share program and no exposure to variable rate debt.

Page 2 of 2

MONTHLY FINANCIAL GRAPHS

Target

2017 2018

Loans Effective yield 4.36% 4.38% Cash & Investments Effective yield 1.91% 2.25% Rate of Return on Average Earning Assets 1.32% 1.13%

(1) Weatherization Assistance Programs; Emergency Shelter Grant; State Homeless; Housing Opportunities for People With Aids; NM State Tax Credit; Governor's Innovations; EnergySaver; Tax Credit Assistance Program; Tax Credit Exchange; Neighborhood Stabilization Program; Section 811 PRA; Homeownership Preservation Program (2) NM Affordable Housing Charitable Trust Fund; Land Title Trust Fund; Housing Trust Fund

1,024,233 965,425 957,337 919,808 935,564

$2,530,234 $2,549,825 $2,649,500

$3,029,148

$3,313,569

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2014 2015 2016 2017 2018

Assets Under Management as of 9/30/2018 ($ in thousands)

Subserviced Portfolio

Other Grants (1)

HOME

Section 8

Low Income Housing Tax Credit

Trusts (2)

Rental Housing Program

General Fund

Single Family Mortgage Program

Book Assets

4.15%

1.17%

1.99%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%Yield Targets 9/30/2018

2014-2015 3,911

2015-2016 4,775

2016-2017 6,363

2017-2018 6,271

Target 2017-2018

6,185

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

YTD Excess Revenues over Expenses as of 4/30/2018

2014-2015 2015-2016 2016-2017 2017-2018 Target 2017-2018

($ th

ousa

nds)

0.00%1.00%2.00%3.00%4.00%5.00%

0.00%5.00%

10.00%15.00%20.00%25.00%

YTD Annualized Payoffs as a Percentage of Single Family Mortgage Portfolio as of 9/30/2018

Payoffs/Portfolio

10 year Treasury rate

5/11/2018 11:42 AM

YTD 4/30/18 YTD 4/30/17

ASSETS:

CURRENT ASSETS:

CASH & CASH EQUIVALENTS $32,671 $26,318

RESTRICTED CASH HELD IN ESCROW 9,896 10,636

SHORT-TERM INVESTMENTS 8,975 -

ACCRUED INTEREST RECEIVABLE 3,088 3,189

MORTGAGE PAYMENT CLEARING - 299

OTHER CURRENT ASSETS 1,270 3,223

ADMINISTRATIVE FEES RECEIVABLE (PAYABLE) (0) -

INTER-FUND RECEIVABLE (PAYABLE) - 0

TOTAL CURRENT ASSETS 55,901 43,665

CASH - RESTRICTED 21,827 28,234

LONG-TERM & RESTRICTED INVESTMENTS 62,623 59,331

INVESTMENTS IN RESERVE FUNDS 229 112

FNMA, GNMA, & FHLMC SECURITIZED MTG. LOANS 556,488 589,315

MORTGAGE LOANS RECEIVABLE 233,059 202,103

ALLOWANCE FOR LOAN LOSSES (2,427) (2,722)

NOTES RECEIVABLE - 32,220

FIXED ASSETS, NET OF ACCUM. DEPN 1,188 971

OTHER REAL ESTATE OWNED, NET 513 435

OTHER NON-CURRENT ASSETS 21 -

INTANGIBLE ASSETS 5,602 2,148

TOTAL ASSETS 935,022 955,814

DEFERRED OUTFLOWS OF RESOURCES

REFUNDINGS OF DEBT 543 699

TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES 935,564 956,512

LIABILITIES AND NET POSITION:

LIABILITIES:

CURRENT LIABILITIES:

ACCRUED INTEREST PAYABLE 3,727 4,510

ACCOUNTS PAYABLE AND ACCRUED EXPENSES 6,643 5,414

ESCROW DEPOSITS & RESERVES 9,787 10,636

TOTAL CURRENT LIABILITIES 20,158 20,560

BONDS PAYABLE, NET OF UNAMORTIZED DISCOUNT 653,198 687,023

MORTGAGE & NOTES PAYABLE 31,144 30,011

ACCRUED ARBITRAGE REBATE - 22

OTHER LIABILITIES 245 245

TOTAL LIABILITIES 704,745 737,861

NET POSITION:

INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 1,188 971

UNAPPROPRIATED NET POSITION (NOTE 1) 62,327 61,102

APPROPRIATED NET POSITION (NOTE 1) 167,304 156,579

TOTAL NET POSITION 230,819 218,652

TOTAL LIABILITIES & NET POSITION 935,564 956,512


COMBINED STATEMENT OF NET POSITION

APRIL 30, 2018

(THOUSANDS OF DOLLARS)

5/11/2018 11:42 AM

YTD 4/30/18 YTD 4/30/17

OPERATING REVENUES:

INTEREST ON LOANS $19,098 $20,126

INTEREST ON INVESTMENTS & SECURITIES 1,463 1,399

LOAN & COMMITMENT FEES 450 520

ADMINISTRATIVE FEE INCOME (EXP) 5,412 5,082

RTC, RISK SHARING & GUARANTY INCOME 72 41

HOUSING PROGRAM INCOME 626 673

LOAN SERVICING INCOME 1,407 728

OTHER OPERATING INCOME 1 1

SUBTOTAL OPERATING REVENUES 28,529 28,570

NON-OPERATING REVENUES:

ARBITRAGE REBATE INCOME (EXPENSE) - 30

GAIN(LOSS) ASSET SALES/DEBT EXTINGUISHMENT (249) 426

OTHER NON-OPERATING INCOME 36 11

GRANT AWARD INCOME 25,499 24,732

SUBTOTAL NON-OPERATING REVENUES 25,287 25,199

TOTAL REVENUES 53,815 53,769

OPERATING EXPENSES:

ADMINISTRATIVE EXPENSES 7,286 6,003

INTEREST EXPENSE 14,624 16,258

AMORTIZATION OF BOND/NOTE PREMIUM(DISCOUNT) (1,200) (1,438)

PROVISION FOR LOAN LOSSES 537 200

MORTGAGE LOAN & BOND INSURANCE - -

TRUSTEE FEES 48 49

AMORT. OF SERV. RIGHTS & DEPRECIATION 151 109

BOND COST OF ISSUANCE 552 652

SUBTOTAL OPERATING EXPENSES 21,997 21,835

NON-OPERATING EXPENSES:

CAPACITY BUILDING COSTS 101 639

GRANT AWARD EXPENSE 25,445 24,717

OTHER NON-OPERATING EXPENSE - 216

SUBTOTAL NON-OPERATING EXPENSES 25,547 25,571

TOTAL EXPENSES 47,544 47,406

NET REVENUES 6,271 6,363

OTHER FINANCING SOURCES (USES) - -

NET REVENUES AND OTHER FINANCING SOURCES(USES) 6,271 6,363

NET POSITION AT BEGINNING OF YEAR 224,548 212,289

NET POSITION AT 4/30/18 230,819 218,652

FOR THE SEVEN MONTH ENDED APRIL 2018

(THOUSANDS OF DOLLARS)


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

NOTES TO FINANCIAL STATEMENTS

(For Informational Purposes Only) (Thousands of Dollars)

(Note 1) MFA Net Position as of April 30, 2018:

UNAPPROPRIATED NET POSITION:

$ 34,235 is held by Bond Program Trustees and is pledged to secure repayment of the Bonds.

$ 27,971 is held in Trust for the NM Housing Trust Fund and the NM Land Title Trust Fund.$ 121 held for New Mexico Affordable Housing Charitable Trust .

$ 62,327 Total unappropriated Net Position

APPROPRIATED NET POSITION: GENERAL FUND

By actions of the Board of Directors on various dates, General Fund net assets have been appropriated as follows:

$ 105,069 for use in the Housing Opportunity Fund ($85,096 in loans plus $19,973 unfunded, of which $4,415 iscommitted).

$ 26,184 for future use in Single Family & Multi-Family housing programs.

$ 9,688 for loss exposure on Risk Sharing loans.

$ 1,188 invested in capital assets, net of related debt.

$ 5,601 invested in mortgage servicing rights.

$ 7,522 for the future General Fund Operating Budget Y E 9/30/18 ($17,873 total budgetless $10,351 expended budget through 04/30/18.)

$ 155,252 Subtotal - General Fund

APPROPRIATED NET POSITION: HOUSING By actions of the Board of Directors on December 7, 1999, Housing assets have been appropriated as follows:

$ 13,241 for use in the federal and state housing programs administered by MFA.

$ 13,241 Subtotal - Housing Program

$ 168,493 Total appropriated Net Position

$ 230,819 Total combined Net Position at April 30, 2018

Total combined Net Position, or reserves, at April 30, 2018 was $230.8 million, of which $62.3 million was pledged to the bond programs, Affordable Housing Charitable Trust and fiduciary trusts. $168.5 million of available reserves, with

$80.2 million primarily liquid in the General Fund and in the federal and state Housing programs and $88.3 million illiquid in the programs of the General Fund, have been

- for use in existing and future programs - for coverage of loss exposure in existing programs, and - for support of operations necessary to carry out the programs.

MFA's general plan for bond program reserves as they may become available to MFA over the next 30 years is to use the reserves for future programs, loss exposure coverage, and operations.

ONE YEAR TO YEAR TO DATE UNDER/(OVER) UNDER/(OVER) EXPENDED

MONTH DATE PRO RATA YTD ANNUAL ANNUAL ANNUAL BUDGET

ACTUAL ACTUAL BUDGET BUDGET BUDGET BUDGET PERCENTAGE

REVENUES

OPERATING REVENUES

INTEREST INCOME 661,558 4,425,382 4,799,891 374,509 8,228,385 3,803,003 53.78%

ADMIN INCOME 1,016,234 7,112,286 4,244,515 (2,867,770) 7,276,312 164,026 97.75%

OTHER OPERATING INCOME 316,614 2,104,719 2,154,573 49,853 3,693,553 1,588,834 56.98%

SUBTOTAL OPERATING REVENUES 1,994,406 13,642,387 11,198,979 (2,443,408) 19,198,250 5,555,863 71.06%

NON-OPERATING REVENUES (220,495) 3,524 (16,275) (19,799) (27,900) (31,424) -12.63%

TOTAL REVENUES 1,773,911 13,645,911 11,182,704 (2,463,207) 19,170,350 5,524,439 71.18%

EXPENSES

OPERATING EXPENSES

COMPENSATION 499,105 3,705,264 4,251,591 546,327 7,288,442 3,583,178 50.84%

TRAVEL & PUBLIC INFO 16,200 173,256 278,602 105,346 477,603 304,347 36.28%

OFFICE EXPENSES 63,310 531,597 519,434 (12,163) 890,458 358,861 59.70%

OTHER OPERATING EXPENSES 511,286 2,908,460 2,694,385 (214,075) 4,618,946 1,710,486 62.97%

SUBTOTAL OPERATING EXPENSES 1,089,900 7,318,577 7,744,012 425,435 13,275,449 5,956,872 55.13%

NON-OPERATING EXPENSES 25,828 101,209 505,225 404,016 866,100 764,891 11.69%

SUBTOTAL OPERATING & NON-

OPERATING EXPENSES 1,115,728 7,419,786 8,249,237 829,451 14,141,549 6,721,763 52.47%

EXPENSED ASSETS (13) 76,551 47,962 (28,589) 82,220 5,669 93.10%

NON-CASH ITEMS 45,627 488,402 432,403 (55,999) 741,262 252,860 65.89%

TOTAL EXPENSES 1,161,342 7,984,739 8,729,601 744,862 14,965,031 6,980,292 53.36%

NET REVENUES 612,569 5,661,172 2,453,103 3,208,069 4,205,319 1,455,853 65.38%

PURCHASED SERVICING & CAPITAL OUTLAY

PURCHASED SERVICING RIGHTS 212,933 2,168,100 1,604,167 (563,933) 2,750,000 581,900 78.84%

CAPITALIZED ASSETS 325 198,214 92,073 (106,141) 157,840 (40,374) 125.58%

TOTAL PURCHASED SERVICING & CAPITAL OUTLAY 213,258 2,366,313 1,696,240 (670,073) 2,907,840 541,527 81.38%

TOTAL INCLUDING CAPITALIZED ITEMS 825,827 8,027,486 4,149,343 2,537,996 7,113,159 1,997,380 71.92%

1%

NEW MEXICO MORTGAGE FINANCE AUTHORITY GENERAL FUND & HOUSING

BUDGET VARIANCE REPORT

FOR THE SEVEN MONTHS ENDED 4/30/18

May 9 – June 4

MEDIA COVERAGE

5-11 Albuquerque Journal North No public bank in Santa Fe 5-19 Carlsbad Current-Argus Summit covers housing issues 5-23 Albuquerque Journal Tackle tough issues head on 5-25 Ruidoso News Meeting on possible workforce housing first of many scheduled 6-1 Novogradac Journal of Tax Low-Income Housing Tax Credits News Briefs Credits Vol. 9 Issue 6 June 2018

PRESS RELEASES, NEWSLETTERS and LENDER MEMOS

5-14 E-blast to mailing list Summit registration has opened 5-16 Lender memo 18-08 MFA compliance turn times 5-21 Tribal Homeownership Coalition Updates 6-1 Tribal Homeownership Coalition July coalition meeting agenda

EDITORIAL

No public bankin Santa Fe

Santa Fe gave the idea ofestablishing a public bank ashot. But a task force set up byCity Hall has determined that

startup costs, and "daunting legal andregulatory obstacles" would be too muchto overcome."If limited to the city of Santa Fe's

financial assets, the possible benefitsthat a public bank might generate areat best marginal and at worst wouldcarry risk of nonviability because ofthe relatively small scale of the city'sfinancial means," reads a key task forceconclusion.Not to be too harsh here, but the idea

that Santa Fe wasn't big enough to pulloff a public bank by itself seemed fairlyobvious from the beginning, even tothose of us who barely know how to keepenough in a checking account to coverdebit card charges.Former Mayor Javier Gonzales

and supporters, in the wake of thefinancial disasters that caused theGreat Recession, made good argumentsfor cutting out the middleman whenit comes to investing city money andmaking sure it's used locally instead ofbeing part of the portfolio of big bankswhose goals and investment strategiesmight not match Santa Fe's. A publicbank, it was said, would also be morelikely to support and finance local smallbusinesses and community projects.And then there's the scandal that

has engulfed Wells Fargo the city'sbank for years now over fraudulentlysticking it to its own customers bysigning them up for accounts andfinancial services they never agreed to.There was support on the City Councilfor dumping Wells Fargo when thebanking contract came up for renewallast year, but the megabank with thesullied reputation was the only bidderwith the wherewithal to handle thecity's money.The push for a public bank in Santa

Fe was impressive. A community group,Banking on New Mexico, establisheda website that is better than mostnewspapers' to promote the idea andprovide information. A symposium withinternational representation was heldin 2014.The website includes endorsements

from many Santa Feans, including onewho became mayor in March."Santa Fe and New Mexico are in

serious trouble losing jobs, losingopportunities, losing people, losingopportunities for a better future," saysthe endorsement statement from AlanWebber."It's the kind of crisis that reminds

me of 1932, when Franklin Rooseveltstepped into the White House in a timeof dire national economic danger andbegan to try things, to experiment, tothink differently. That's what we need todo! We need to have the courage to try apublic bank for Santa Fe, to support ourown small and mediumsize businesses,to jump start jobs and economic activityin our own community. Doing nothingis not an option. Working together is theway to find our way forward."A public bank may seem like a radical

idea. But Exhibit A for advocates forpublic banking comes from the nonradical upper Midwest the Bank ofNorth Dakota, started in 1919 and stillthe country's only public bank.The Bank of North Dakota describes

itself as working with private financialinstitutions, not as a competitor. It doesmakes cheap loans to students, farmers,businesses and homebuyers. As of 2017,the Bank of North Dakota had assetsof $7 billion with net earnings of $145million. Over a decade through 2014, itreturned $300 million to North Dakota'sgeneral fund.The city also heard from an expert

from Germany, who described howsmall, public, community banks havelong been part of the country with

Europe's largest economy.Local bankers remember, Santa

Fe already has hometown communitybanks that are viable alternativesto the national giants questionwhat problems a public bank wouldsolve. Would a Santa Fe public bank,responsible for stewardship of publicmoney, really take on more risk forsmall loans than local communitybanks already do?And New Mexico has agencies like

the New Mexico Finance Authority andthe state Mortgage Finance Authority that plug financing gaps for publicprojects. Santa Fe borrowed from theFinance Authority when it purchasedthe campus of the former College ofSanta Fe in 2009.In any case, the city task force is

now recommending that Santa Fe bepart of an effort to establish a publicBank of New Mexico. "We believethis more appropriate statewide scalewould justify work needed to amendthe current legal and regulatoryrestrictions," the task force report says.City Councilor Renee Villareal, who

helped lead the effort to study publicbanking, said she remained encouraged."I'm not forgetting about the public bankeffort," she said.Getting serious consideration of a

state public bank at the Roundhousewon't be easy, nor should it be. It's thekind of idea that would need years ofcareful study of costs and benefits. Also,any public bank proposal has to includean absolute firewall to protect againstthe kinds of political shenanigans thatNew Mexico has seen too much of.But creating a public Bank of New

Mexico is not something that shouldbe dismissed out of hand. New Mexicocould use something like that $30million or so a year that the NorthDakota bank returned to the generalfund.

NM0082 Journal NorthPage Number: 004Publication Date: 05/11/2018

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County: Santa Fe

COURTESY OF BANK OF NORTH DAKOTA

The Bank of North Dakota in Bismarck is currently the only public bank in the U.S.

NM0082 Journal NorthPage Number: 004Publication Date: 05/11/2018

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County: Santa Fe

SummitcovershousingissuesCity officials talkmortgages anddevelopmentsDeJanay BoothCarlsbad CurrentArgusUSA TODAY NETWORK NEW MEXICO

Fernando and Lilia Santana wereuncertain about becoming homeowners.The couple started off with what

they described as a "tiny house" beforethey purchased their current home inLoving about 35 years ago.

"I never thought that we were goingto have a house," Lilia Santana said.

"Me and him, we said 'Can we makeit?' I said, 'Let's do it one day at a time,one year at a time. And we made it."The couple said homeownership is

challenging but advised that peopleshould not buy a home outside of theirfinancial budget."If you can afford a fourbedroom

house, you can buy it," Fernando Santana said.

In response to growing demands forhousing in Carlsbad and Eddy County,Carlsbad Mayor Dale Janway and U.S.Sen. Martin Heinrich hosted the Carlsbad Housing Summit Wednesday.The summit included nine speakers

who discussed the current housing developments and information on mortgages."We want to make sure we're doing

what we can to ensure we have adequate residential facilities for everyone," said Eddie Rodriguez, CarlsbadCity Council member and mayor protem. "Economic growth is a greatthing, but resolving this issue is critical to protecting the quality of life inCarlsbad."

Rodriguez said the Blue RibbonCommission was developed by themayor's office to address "all needs inall areas," such as housing."We're working towards determin

ing the difference in permanent andtemporary employees, and the different kinds of housing that will be needed in addition to infrastructure needs,"said Rodriguez, who is cochair of theBlue Ribbon Commission.In a video shown at the summit,

Heinrich said, "We must all do our partto ensure all families in Carlsbad havean affordable place to call home."Jeff Patterson, director of the city's

See HOUSING, Page 3A

HousingContinued from Page 1APlanning, Engineering and RegulationDepartment, said the high demand forhousing resulted from growth in the oiland gas industry, and a subsequent influx of workers into Carlsbad.He said various building develop

ments, such as multifamily and singlefamily housing units, are ongoing or inthe process of starting.The city, he said, is also monitoring

man camps that are developed aroundthe city for temporary workers."We haven't seen this type of devel

opment in this town for some decades,but with the oil and gas industry, it really hit us. I think that the town and thedevelopers that are involved are reallyresponding," Patterson said.In the meantime, the high demand

for housing resulted in an increase in

apartment and hotel rates, said SusanCrockett, chair of the Eddy CountyBoard of County Commissioners.The lack of housing, she said, also

makes it difficult for employers to hirepeople.Crockett said that many units are

currently 90 to 100 percent occupied,and apartment rates reached about$1,000 for a onebedroom unit in 2017.

NM0082 Carlsbad CurrentArgusPage Number: 1Publication Date: 05/19/2018

Summit covers housing issuesDeJanay Booth Carlsbad CurrentArgus USA TODAY NETWORK NEW MEXICO

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County: Eddy

"It (new housing) brings in morefamilies and helps keep the wagesearned by the workforce here in NewMexico and in Eddy County. It brings ingross receipts tax, which only helps usimprove our roads and infrastructureand other needs for the county as wellas the city," Crockett said."It provides other potential employ

ees to staff the many open jobs in ourcommunity."Crockett said the county applied for

grant funding, aiming to have the county considered an "opportunity zone,"potentially leading to tax advantages toattract capital investment into "economically distressed areas."

"I think that open dialogue discussions like this summit and the mayor'shousing committee are the steps thatwe need in Eddy County to move forward with our housing needs as ourcounty's industry tends to grow," shesaid.State and regional representatives

with the New Mexico Mortgage FinanceAuthority, Southwestern RegionalHousing and Community Development,Eastern Regional Housing Authorityand New Mexico Manufactured Housing Association discussed optionsavailable for residents looking to finance a home."You don't want people to change a

mortgage payment because you're set

ting them up to fail, and that's the worsething you can do for a community is putpeople in homes and they can't affordit," said Suzie Nance, president of theNew Mexico Mortgage Lenders Association.Judy Mullins, of Artesia, said al

though there was important information provided for residents, she wishedmore people were present at the event.Roughly 70 people, including ven

dors, attended the summit."I think a lot of what they talked

about would have helped a lot of people," Mullins said.

DeJanay Booth can be reached at 5756285546, [email protected] @DeJanayBooth on Twitter.

Teri Baca with the Mortgage Finance Authority speak with attendees at theCarlsbad Housing Summit on Wednesday. The summit was designed for currentand potential homeowners to learn about mortgage opportunities and currenthousing developments in the community. DEJANAY BOOTH/CURRENTARGUS

NM0082 Carlsbad CurrentArgusPage Number: 1Publication Date: 05/19/2018

Summit covers housing issuesDeJanay Booth Carlsbad CurrentArgus USA TODAY NETWORK NEW MEXICO

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County: Eddy

PRIMARY ELECTION 2018

Tackle toughissues head onNew Mexicans deserve better health care,education, infrastructure and economyBY BILLY G. GARRETTDEMOCRATIC CANDIDATE, LIEUTENANT GOVERNOR

On June 5, N.M. Democrats willelect a slate of leaders committed togetting our state and country back ontrack. When it comes to choosing theparty's contender for lieutenant governor, I am the best candidate for twoimportant reasons.First, I am the only candidate for

lieutenant governor who is calling fortransformational change to improveliving conditions and expand opportu

nities for all New Mexicans.The status quo is not working. Over 20 percent of our

residents live in poverty. Ten percent of New Mexicanslack access to health care. Our teachers are underpaid,and many schools are in disrepair. Our unemploymentis one of the highest in the nation.Tinkering around the edges will not get us there. New

Mexicans deserve affordable and accessible health care,a firstclass public education system, uptodate infrastructure and a robust economy. And we cannot do anyof this at the expense of the environment.The only way to address these issues is to tackle them

at the same time. All are important; all are interconnected. Change to one system will affect all the others.Progress is incremental, so it will be important to getthe most out of each step while staying on course.My career includes extensive experience with stra

tegic planning, community development and organizational change. The framework of transformationalchange and its associated values will help thegovernor and legislators pursue shortterm objectiveswithout losing track of longterm goals.The other candidates for lieutenant governor are

focused on a few specific issues. I offer a broader andmore inclusive perspective.The second reason I am the best candidate is that I

am the only one committed to maximizing the uniquepotential of this position. Others talk about the lieutenant governor position as if it were legislative or administrative in nature. It is not. Nor is the position equal tothat of the governor, in any sense, unless the governoris out of state or the seat becomes vacant.The lieutenant governor has a workload based on

statutory responsibilities, standing within the executivebranch and personal initiative.Based on statute, the incumbent serves as president

of the Senate and sits on eight boards or commissions.All these positions are important and would receive myattention. My work in southern New Mexico and interest in affordable housing has prepared me especiallywell to serve on the Border and Spaceport authoritiesas well as the Mortgage Finance Authority. And, afternearly eight years as a county commissioner, includingtwoandahalf as chair, I look forward to working withthe Senate.The lieutenant governor also serves as "ombudsman

for the People of New Mexico." To that end, I have suggested the office foster public engagement by all stateagencies, restore the value of mutual respect, and serveas an incubator for solutions to social and environmental justice issues. Years of experience in planning andsocial justice advocacy have prepared me for this role.Moving to less welldefined aspects of the position, it

is important to recognize that the lieutenant governoris the secondhighest elected official in the executivebranch. To improve government services I have proposed establishment of a Center for Excellence underthe lieutenant governor. The center would be a management resource focused on ethics, operational assessments, and crafting of new initiatives.I am wellqualified to lead this effort based on a

diverse career in architecture and organizational management spanning more than 34 years in the publicsector.Finally, I must emphasize the importance of the lieu

tenant governor as a sounding board and representative for the governor. I have worked successfully as adeputy for three senior managers and would welcomethe opportunity to help our next governor in whateverway I can.In conclusion, New Mexico deserves a lieutenant

governor with the experience and vision to use the position as an instrument of change. I am ready for thatchallenge.

Information about the candidacy of Billy G. Garrett forlieutenant governor is on his website bgarrett4nm.com orwww.facebook.com/Garrett4NM.

Billy G.Garrett

NM0082 Albuquerque JournalPage Number: 017Publication Date: 05/23/2018

Tackle tough issues head onBY BILLY G. GARRETT DEMOCRATIC CANDIDATE, LIEUTENANT GOVERNOR

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County: Bernalillo

Meetingon possibleworkforcehousing firstof manyscheduledDianne L StallingsRuidoso NewsUSA TODAY NETWORK NEW MEXICO

Ruidoso officials expected to seemore people attending a Thursdaymeeting of the Ruidoso WorkforceHousing Advisory Board than show upfor most village council sessions, because the word is circulating that a"lowincome" housing project is slatedfor midtown.While Community Development

Director Bradford Dyjak said Wednesday that he welcomed the public's interest, he emphasized that the projectis aimed at gainfully employed resi

dents and that many more meetings lieahead before a recommendation issent to the council."This particular program is for the

workforce," he said. "They have to begainfully employed or retired, have toclear background checks and submitto inspections by the managementcompany. This is not your traditionalpublic housingtype program, not avoucher basis. This is designed forfolks who meet a percentage of themedian income and have gainful em

ployment. And we still are identifyingsites and feasibility. This is only one."The board met at 2 p.m., Thursday,

in council chambers at village hall andremained in session at press time. Theboard was tasked by the council to assist the village in administering its affordable housing program, advocaterelevant workforce housing opportunities and to make policy recommendations to the council on those mat

See WORKFORCE, Page 6A

WorkforceContinued from Page 1A

ters, Dyjak said.The Affordable Housing Plan was

adopted in 2015, and identified an immediate shortage of more than 500 affordable workforcetype units for thosewho need good homes, but cannot afford the rentals in Ruidoso, he said."We're forcusing on housing for the

service sectors, public servants, teachers, police, fire, nurses and workers inprofessional settings too," Dyjak said."The intent is to try to find balanced solutions to accommodate those folkswith wellrespected jobs, but because ofour demographics and the fact that wefrom 50 percent to 60 percent of ourhomes are not owner occupied, they aresecond or third homes. It certainly inflates housing costs."

The village is interested in identyfingpotential opportunities to offset thatimbalance, he said. One particular pro

gram the village is exploring has beensuccessful in other communities. It is ahousing tax credit program administered by the New Mexico Mortgage Finance Authority, as one of several potential tools that could accomplish thegoals of the workforce housing plan."We're in the due diligence and ex

ploration phase at this point in regardsto this particular project," Dyjak said. "Ifit were to be approved, it would involvea publicprivate partnership with thevillage, potentially the Eastern RegionalHousing Authority and the developerthey have contracted wth. The benefit ofsuch a program is limited financial investment by the local government. Itprimarily is investordriven through thetax credit program."We are exploring sites and one dis

cussed is the Midtown Commons site

bounded by the new parking lot, NorthGrindstone, Wingfield Street and ChaseStreet."Such projects typically are composed

of from 60 to 70 units, but smaller clusters have been built, he said. Aboutthree acres of the original five acres purchased by the village for the parking lotremain available.

The meeting Thursday is far from thelast on the project, Dyjak said."There will be a series of meetings in

June to engage with concerned citizens,especially those in the neighborhood,and that will come before any recommendation to the council," he said."We're aware the Memorial Day holidaymay not be the best time to ensure everyone interested can attend. We'll havemore details in June. Thursday won't bethe only opportunity."

NM0082 Ruidoso NewsPage Number: 1Publication Date: 05/25/2018

Meeting on possible workforce housing first of many scheduledDianne L Stallings Ruidoso News USA TODAY NETWORK NEW MEXICO

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County: Lincoln

Low-Income Housing Tax Credits News Briefs - June 2018 Novogradac Journal of Tax Credits Volume 9 Issue 6 Friday, June 1, 2018 The Internal Revenue Service published Revenue Procedure 2018-22 (Rev. Proc. 2018-22) April 30. Rev. Proc. 2018-22 reflects an increase in the state low-income housing tax credit (LIHTC) ceiling enacted through the Consolidated Appropriations Act of 2018. The amended state LIHTC ceiling is the greater of $2.70 multiplied by the state population or $3.105 million. The modifications are in effect for taxable years beginning in 2018. The guidance is available at www.taxcredithousing.com.

***

The United States Department of Agriculture (USDA) issued a stakeholder announcement March 21 on proposed changes to eligibility of certain rural areas. The USDA released proposed ineligible area maps for the rural development, single-family housing and multifamily housing programs. The new ineligible areas were effective June 4. After the effective date, all properties for new applications must be located in an eligible rural area based on the new maps. However, a property that is located in an area being changed from rural to non-rural may be approved if the application is dated and received by the lender before June 4 and the loan estimate was issued by the lender within three days of application receipt; the applicant has a signed/ratified sales contract on a property that is dated before June 4; and the applicant meets all other loan eligibility requirements.

***

Sen. Jeanne Shaheen, D-N.H., and Rep. Ann Kuster, D-N.H., introduced March 20 S 2574 and HR 5352, respectively, to provide rental assistance to low-income tenants of certain multifamily rural housing developments. The two bills were introduced as companion bills under the Rural Housing Preservation Act of 2018. The bills would help preserve affordable housing in rural communities by offering several provisions that extend rental assistance for the rural development (RD) rental housing programs of the USDA. The bills propose to allow the RD Section 521 rental assistance to be decoupled from the mortgage, allowing Section 521 rental assistance. The bills would also offer an RD Section 542 preservation voucher to households living on properties with maturing Section 515 or 514 mortgages. The bills would also ensure that RD policies are better aligned with the LIHTC program. Lastly, the bills would permanently authorize the multifamily housing revitalization program. S 2574 and HR 5352 are available at www.taxcredithousing.com.

***

https://www.novoco.com/periodicals/novogradac-journal-tax-credits-volume-9-issue-6

http://www.taxcredithousing.com/

http://www.taxcredithousing.com/

***

The Pennsylvania Housing Finance Agency allocated $8 million in LIHTCs to SEDA-COG Housing Development Corporation for the construction of Susquehannock Heights senior housing in Flemington, Pa. The property will provide 32 apartments, as well as community, craft and exercise rooms, a library, central laundry, computer cafe and outside sitting areas. Financing also included $200,000 from PennHOMES.

***

Developers Chelsea Investment Group and Sudberry Properties broke ground on Siena and Stylus at Civita April 12. The two affordable housing properties in San Diego will provide a combined 306 apartments. Stylus will have 203 two- and three-bedroom apartments reserved for families or individuals earning between 50 percent and 60 percent of the AMI. Siena will have 103 one-bedroom and studio apartments reserved for seniors earning between 30 percent and 60 percent of the AMI. One seven-story building will house both Stylus and Siena. Both properties will include three courtyards, a clubroom with a fully equipped kitchen and barbecue areas. The general contractor is Emmerson Construction and the architect is KTGY Architecture + Planning. Siena and Stylus were financed using LIHTCs and bonds were distributed by the San Diego Housing Commission, as well as funds provided by Federal Home Loan Bank-San Francisco, City National Bank and Torrey Pines Bank. The development will be located on a 230.5-acre parcel that is expected to have up to 4,780 apartments and 900,000 square feet of retail and office space. There will also be 67 acres of parks, trails and open space. Development costs are expected to be $137.5 million.

***

The official grand opening of the El Camino Real Apartments in Hatch, N.M., was April 12. The $9.6 million complex offers affordable housing to farmworkers. The multibuilding complex features 40 two-, three- and four-bedroom apartments designed for families. On-site amenities include a community common building, laundry facilities, computer lab, community garden, an orchard and two playgrounds. New Mexico Mortgage Finance Authorityallocated $8.8 million in LIHTCs.

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Registration for the 2018 NM Housing Summit is now open!

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Get all the details on the Housing Summit web site • More than 50 breakout sessions and roundtables

• 75+ national and local speakers

• CE classes for REALTORS

• Two networking receptions with live music

• Keynote speakers Elliot Eisenberg, Steven Michael

Quezada and Jimmy Wayne

summit.housingnm.org

Our Partners

Sessions include:

LIHTC for Non-Developers Jenn Lopez Twists and Turns of the Tax Code Mark Shelburne Effective Teams Launi DeYoung Lifecycle of a Multifamily Project Development Panel Healthy Homes Amanda Hatherly Soul Punch Self-Defense Gloria Marcott Fundraising Jean Block

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New Mexico Mortgage Finance Authority 344 4th Street SW, Albuquerque, NM 87102

tel. 505.843.6880 toll free 800.444.6880 housingnm.org

TO: Participating Lenders FROM: Rene Acuna, Director of Homeownership DATE: May 16, 2018 RE: Memo No. 18-08

Increased volume and MFA Compliance turn times

Thanks to our participating lenders, MFA’s Reservation/Compliance volume has increased to new record highs. Despite increased volume, The Homeownership Department is currently holding to the three business day turn time of Compliance File receipt to review times. Due

to the increased volume, it is possible that turn times may exceed three

days. The turn times for clearing conditions after initial compliance review is currently:

loans with five or more conditions will be cleared within two business days of receipt

loans with less than five conditions will be cleared within one business day of receipt

Due to the increased volume, it is possible that turn times for clearing conditions will exceed the outlined timeframes above.

Please allow additional time on MFA loans for review and closing. MFA will adhere to its current policies and procedures. Please be advised regarding the following:

Loans are reviewed and cleared in the order, which they are received. MFA will no longer accept rush requests, no exceptions.

Inquiries about a file in process must be limited to relevant changes. Staff will not respond to inquiries regarding review timeframes on a particular file. MFA assures you that we are working diligently to review everyone’s files as quickly as possible. Unnecessary inquires only delay the review workflow for all participating lenders.

How can participating lenders assist?

Please exercise additional due diligence by reviewing all documents before submitting the file to MFA for review. An accurate and clean file submission will not only expedite the approval process but will ensure a timely closing.

Please review suspense conditions thoroughly and completely prior to contacting MFA for clarification. MFA staff provides specific condition descriptions and expectations in the suspense letters.

Thank you for participating in MFA’s program. Should you have any questions, please contact an MFA Homeownership Representative.

.

Copyright © 2018 MFA, All rights reserved. You are receiving this email because of your association with MFA. Our mailing address is: MFA 344 4th St SW, Albuquerque, NM, United States Albuquerque, NM 87102

News Updates and Upcoming Events

Tamaya Housing Inc.- Job Announcement Please submit resumes to Nina Jaramillo. If you have any questions please feel free to

call or send an email to Nina at (505)771-2060, [email protected] .

Click here to view job announcement.

New Mexico MFA- 2018 Housing Summit Registration Open The New Mexico 2018 Housing Summit registration is open! Please follow this link

http://summit.housingnm.org/ to view this year's keynote speakers, program, and

speakers. The 2018 Housing Summit will take place from September 12th - 14th.

Housing Assistance Council- Expanding Access to Homeownership in Indian Country: Exploring the

Challenges and Opportunities This webinar will present the data findings from HAC's most recent publication,

Exploring the Challenges and Opportunities for Mortgage Finance in Indian Country. In

addition to findings, the discussion will touch on the historic and social factors that

have helped create the constrained mortgage lending environment on reservation

lands. Recommendations to address the barriers and improve access to mortgage

lending on Native American lands will also be featured. A practitioner in the field will

provide an overview of practices that have worked and how those actions can be

improved.

Register for this webinar at http://www.ruralhome.org/calendar/upcoming-events

mailto:[email protected]

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HAC's analysis confirms mortgage lending activity is constrained on reservations, as

demonstrated by low origination rates and high denial rates. Recommendations focus

on increasing awareness, improving capacity, modifying rules or expanding incentives,

and improving collection and access to data.

Read report here at http://www.ruralhome.org/sct-information/mn-hac-research/mn-

rrr/1565-rrr-native-mortgage-finance

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New Mexico Tribal Homeownership Coalition Meeting

July 26, 2018

at New Mexico Mortgage Finance Authority 344 4th Street SW, Albuquerque, NM 87102

11:30 - 12:30 pm Registration and Luncheon

12:30 - 12:45 pm Welcome and Introductions

Gina Hickman, Deputy Director of Finance and Administration, MFA

Ariel Cisneros, Senior Advisor, Federal Reserve Bank of Kansas City

Marvin Ginn, Executive Director, Native Community Finance

12:45 - 1:30 pm Homebuyer Education/Financial Fitness Best Practices

Moderator Ariel Cisneros, Federal Reserve Bank of Kansas City

Rose Marquez, Deputy Director, Native Community Finance

Elena Gonzales, Director, Homestart, Homewise

1:30 - 1:50 pm Review the "Borrowing Guide for Tribal Members"

Rose Marquez, Deputy Director, Native Community Finance

1:50 - 2:10 pm MFA Weatherization Programs and Funding Updates

Amy Gutierrez, Program Manager, NME$, MFA

2:10 - 2.30 pm IHBG and ICDBG - Training Updates

Southwest Office of Native American Programs

2:30 - 2:50 pm Fannie and Freddie - Native American Products

Marvin Ginn, Executive Director, Native Community Finance

2:50 - 3:00 pm Announcements - Upcoming Events

Ed Rosenthal, Consultant, Enterprise Community Partners -

Enterprise Homeownership Academy at UNM New Mexico Housing Summit 2018, September 12 - 14, 2018

NEW MEXICO MORTGAGE FINANCE AUTHORITY Board Meeting … · 2018. 6. 13. · NEW MEXICO MORTGAGE...

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