House committee advances bill to create MFA-managed tenant creditworthiness program

House Appropriations and Finance members on Monday advanced House Bill 453 to the full House, approving an amendment that removes an appropriation and moving the bill as amended out of committee.

The bill would create an MFA-managed creditworthiness program that lets property managers rent to applicants who meet rental requirements except for low credit scores; it would also fund training for qualified applicants on budgeting and credit history. Sponsor testimony emphasized the measure is not rental assistance or eviction prevention and does not require property managers to rent to any particular applicant.

Why it matters: Supporters told the committee the program aims to reduce a barrier that prevents households with sufficient income from securing housing because of poor credit histories, while giving property managers protection against early defaults and property damage.

What the bill would do and how it would work: The sponsor explained the program is intended to reassure property managers: if a tenant defaults within the first year the program would cover unpaid rent up to a cap and some property damage. The sponsor said the bill includes limits rather than converting the program into rental assistance.

Public comment: Dana Worwath of the governor’s Office of Housing supported the bill, saying credit counseling and landlord support initiatives that MFA is launching complement the program. Ann Lynn Hall, CEO of Prosperity Works, said the bill targets New Mexicans who can pay rent but are blocked by low credit scores. Rachel Biggs of Albuquerque Health Care for the Homeless said the bill would speed use of vouchers. Judy Messell of Lutheran Advocacy Ministry in New Mexico and Catherine McGill of the New Mexico Black Leadership Council also testified in support, citing local housing cost burdens.

Program details raised in the hearing: Committee members asked about caps and implementation. The sponsor said the program would cap reimbursement at $5,000 for unpaid rent per qualifying participant and $2,500 for property damage to the property manager. Financial literacy training would be administered through MFA. Committee members confirmed recurring funding for the program is included in the budget and that language in HB 453 must match the budget appropriation to allow execution.

Committee action: The committee adopted an amendment that struck the bill’s appropriation language (the amendment was identified in committee as 231593.1) and then voted to give HB 453 a do-pass recommendation as amended. Ranking Member Chatfield moved the do-pass; Representative Little seconded. Representative Pettigrew recorded opposition during the committee’s voice tally.

Next steps: With the committee’s recommendation and budget language aligned, committee members said the bill will move to the House calendar for further consideration.