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House OKs program to let property managers enroll applicants with weak credit into an MFA-backed guarantee and training program
Summary
Lawmakers approved a program for property managers to receive a capped guaranty from Housing New Mexico/MFA for applicants who meet income and other standards but lack traditional credit scores, paired with tenant financial-training requirements.
The House approved House Bill 453 on Monday to create a creditworthiness assistance program administered through the state mortgage finance authority (Housing New Mexico / MFA) intended to help tenants who qualify on income and other factors but lack a strong credit history.
Under the program, a property manager can submit a prospective tenant who meets income and rental requirements but whose credit score creates barriers. The tenant would participate in a mandatory financial-literacy and credit training program. The qualifying grantee (a property manager or qualifying housing agency) could receive limited grant payments to cover unpaid rent or property damage tied to a program participant: up to $5,000 per participant and a maximum of $10,000 per property manager per year, as described on the House floor.
Sponsor Representative Arnaudio told the House the measure is voluntary for property managers and tenants and is not rental assistance or eviction prevention: “It is not rental assistance or eviction prevention. If a tenant is unable to make their payments the property manager will still follow their usual procedures,” she said.
Supporters said the program addresses a growing population of households with weak or no credit histories who are otherwise employed and able to meet income requirements. The bill also requires training for tenants about budgeting and credit.
Some members raised constitutional concerns tied to the anti‑donation clause; one legislator voiced opposition on that basis during floor debate. Supporters argued the program fits within the Affordable Housing Act mechanisms and the funding vehicle for MFA/Housing New Mexico.
The House passed the measure on a roll‑call vote of 47-16.
Legislators said the program is intended as a limited risk-sharing tool to encourage property managers to consider applicants who are otherwise suitable tenants.
