[Congressional Record Volume 140, Number 87 (Friday, July 1, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 THE HOUSING SITUATION IN NEW MEXICO--WHY THE HOUSING BILL IS IMPORTANT

 Mr. DOMENICI. Mr. President, housing in New Mexico is diverse. 
The State's needs are complicated and they vary from country to country 
and even from neighborhood to neighborhood.
  The State takes great pride in being the home to the oldest 
condominium in the country, the 600 year old Taos Pueblo. The State has 
many pre-1800 Spanish colonial adobe buildings which are still 
occupied. We have many victorian buildings constructed while the 
railroad was being built. This makes the State a wonderful place for 
individuals interested in architectural history but adds to the 
challenge faced by housing policymakers and program administrators.
  Some parts of the State are growing a new subdivision every month. In 
other parts of the State there is a substantial amount of vacant, 
substandard, yet preservable, housing. The decline of the mining 
industry has placed an added economic burden in Grant, Cibola, McKinley 
Colfax, and Taos Counties. New Mexico is a major oil producing State 
and times are not good in oil patch. This has a direct impact on 
affordable housing needs particularly, as they relate to loss of homes 
due to foreclosures. The situation in Indian country is another set of 
problems entirely. The situation there is beyond crisis.
  Housing prices for low-income individuals are out of reach for people 
in many counties based on the housing affordability measures used by 
HUD.
  Affordable rental units are out of reach for many New Mexicans in the 
very-low and low-income families. Very-low income families are paying 
more than they can really afford for housing. The affordability gap 
ranges from $9 to $239 per month. The three counties with the biggest 
affordability gap include Sante Fe--$239, Taos--$224, and McKinley--
$186. Also, Guadalupe--$164, Valencia--$159, and Bernalillo--$92.
  Let me recite some of the usual indicators used to measure housing 
needs.


                     old and needing rehabilitation

  One out of every four homes throughout the State are more than 50 
years old. In Harding, Union, and Mora Counties close to 50 percent of 
the houses are older than 50 years old. The State officials presume 
that if a house is older than 30 years old it needs rehabilitation. 
Using this assumption, which is the best they can do with the data that 
they have, there are 272,166 New Mexico housing units in need of 
rehabilitation.


                              crowding out

  There is the greatest need of housing along the Rio Grande corridor 
in Santa Fe, and counties, and in Lincoln County which attracts a lot 
of seasonal visitors. This is caused by substantial immigration and 
crowding out of existing low-income families. In Santa Fe affordable 
housing is extremely scarce.
  I have been working with the RTC and the city to turn the Pueblo 
Hermosa apartment building into 45 affordable housing units. There were 
over 500 applicants to date. Of them 200 have met the income 
qualifications. Clearly the need and the demand is staggering.
  Housing in Santa Fe has always been expensive. There isn't much 
water. As a result there isn't room for everyone who wants to move 
there and it is getting harder and harder for the people who have 
family roots there to remain. The artists tell me that they are now 
being crowded out as well. They can't afford the real estate prices or 
the rents for the studio space they need. It is ironic that some people 
move to Santa Fe to have artists as neighbors and yet the artists are 
being crowded out by the high prices the newcomers are willing to pay.
  Crowding out isn't unique to Santa Fe. The Las Cruces-Dona County 
area is also experiencing this effect. The Santa Teressa border 
crossing and the expansion of the maquiladora plants are bringing new 
people to the area all the time.
  This area is also home to some of New Mexico's best farmland. We have 
world famous chilies, onions, pecans, and peanuts. Housing needs for 
seasonal agricultural workers increases during peak planting and 
harvesting seasons.
  As Cannon Air Force base expands, Portales and Clovis will also 
experience crowding out. The very low- and low-income families will be 
the ones who suffer the most.


                              Overcrowded

  On a statewide average 11 percent of the households are living in 
overcrowded conditions. The county with the greatest overcrowding 
problem is McKinley County where 32 percent of the households are 
living in overcrowded conditions.


                   HARD CHOICES FOR SOME COMMUNITIES

  On the streets of Silver City and Las Vegas one can see many 
historical buildings in dire need of restoration. These communities 
face the dilemma of historical preservation versus affordable housing.


                  A few other key indicators by county

  In Cibola, McKinley, and San Juan Counties, it is estimated that 85 
percent of all housing units are in need of rehabilitation.
  In McKinley County 71.8 percent of the residents are native 
Americans. Seventeen percent of the housing stock lacks plumbing. In 
Mora County 23 percent lack plumbing and in Catron County 22 percent 
lack plumbing.
  In McKinley County 32 percent of the units are overcrowded using 
HUD's definitions.
  San Juan County is 36.7 percent native American.
  The Navajo Housing Authority Project in New Mexico has 2,493 
individuals and families on waiting lists for a place to live. The 
housing authority can't meet this need. For example, it only had 12 
openings for those on the waiting list in 1993.
  Hispanics represent the majority of the population in Mora--85 
percent; Guadalupe--84.3 percent; San Miguel--79.4 percent; Rio 
Arriba--72.6 percent, and Taos--64.9 percent.


   state's delivery system for the very low- and low-income families

  According to the State's Comprehensive Affordable Housing Strategy 
report [CHAS] prepared by the State of New Mexico the ``housing 
delivery system for low and very-low income families in the State of 
New Mexico is characteristic of many efforts nationwide to improve 
social and economic conditions among the poor; these efforts are 
typically fragmented without clear long-term goals and without formal 
coordination * * *''
  The State has an excellent New Mexico State Housing Authority.
  There are several well functioning regional housing authorities as 
well.


                      public housing in new mexico

  There are 46 local Public Housing Agencies [PHAS]--1965 was an 
important year because HUD's Operation Breakthrough made housing more a 
statewide government activity. Until 1965 only large cities were 
addressing low-income housing needs.


  Past is prolog--new mexico data on various programs reauthorized in 
                               this bill

  FmHA and FHA provide homeownership loans and/or loan guarantees. 
During the last 12 years, FmHA has provided 5,744 homeownership loans 
and 773 home repair loans and/or grants.
  The New Mexico HUD/FHA office has insured 160,000 properties totaling 
more than $4.95 billion in home mortgages. Over 1,100 subdivisions have 
been approved with over 270 builders and 230 lenders currently 
participating in the FHA single family program in New Mexico.

  The New Mexico CDBG Small Cities program through its housing 
component, has funded the rehabilitation of over 1,329 owner-occupied 
units statewide--since when, since the program began? In fiscal year 
1994, $1.8 million in State CDBG funds will be utilized for 
rehabilitation of low-income owner occupied housing statewide. Each 
small city will receive an average of $150,000 out of the fiscal year 
1994 funds.
  There are approximately 19,449 federally assisted rental units in New 
Mexico. These are broken down as follows: 4,835--Public housing rental 
units; 15--Turnkey III; 515--Section 8 Mod-Rehab; 2,326--Section 8 
Vouchers; 7,132--Section 8 Certificates; 2,798--FmHA Section 515; 
1,572--Section 202, and 6,598--Low Income Housing.
  In 1994 the programs reauthorized in this bill provide some important 
resources to New Mexico. It is receiving approximately $35.5 million 
for fiscal year 1994 under current law. More specifically New Mexico is 
receiving: $3.3 million for the HOME program; $1.2 million from HOPE I; 
$1.4 million from HOPE III; $12.7 million from CDBG of which $1.8 
million will be committed; $429 thousand for Emergency Shelter Grants 
(ESG); $300 thousand for PATH grants; $7.7 million for Section 8 Rental 
Vouchers; $369 thousand for Rental Certificates; $3.3 million for 
Capital Improvement for public housing [CIAP] replaced by Comprehensive 
Grant program; $359 thousand for lead based paint; $300 thousand for 
Shelter Plus care; $115 thousand for Supplemental Assistance for 
Facilities to Assist the Homeless [SAFAH]; $3.7 million for Public 
Housing Comprehensive Grant; and $350 thousand for Housing 
Opportunities for Persons with AIDS Program [HOPWA].


              this housing bill is important to new mexico

  The Housing bill the Banking Committee is working on is important to 
New Mexico. The legislation's focus is housing for the very low income 
and low income families. Over 40 percent of the families living in 
every region of New Mexico meet that HUD definition. Measured another 
way, seven counties in New Mexico have median family incomes under 
$20,000.
  This bill has programs designed to help 7 out of 10 families in Mora 
and Sierra Counties, 6 out of 10 households in Guadalupe, Sandoval, 
Roosevelt, Catron, Torrance, Rio Arriba, Taos, Socorro, and Union 
counties; and one out of every two people in Quay, DeBaca, Curry, 
Harding, Grant, McKinley, Chaves, Colfax, and Hidalgo counties. Now I 
don't want to get everyone's hopes up. Unfortunately, there is not 
enough money to go around, but we hope this bill will make the money go 
farther and make the programs work better.
  This bill reauthorizes our homeless programs, the Indian and public 
housing programs, makes changes in FHA, HOPE and HOME, section 8 rental 
assistance, low income housing preservation, renewal of section 8 
public housing subsidies, creates a new Leveraged Investment for 
Tomorrow Program [LIFT], provides additional colonias assistance and 
rural housing programs section 515 rural rental housing program. I will 
say more about the bill when the Senate considers it later in July.
  I believe that housing should encourage private investment. As Robert 
Kennedy said, ``To ignore the potential contribution of private 
enterprise is to fight the war on poverty with a single platoon, while 
great armies are left to stand aside.'' A current cabinet member, Mike 
Espy, also expressed a good philosophy: ``Whoever controls your home 
controls your life.'' He is correct and for this reason, we should 
encourage privatization. Vouchers are a good step in the right 
direction. I am pleased that this bill includes an increased 
authorization for the FmHA vouchers.
  However, housing has become one of the most heavily regulated sectors 
of the American economy. There is a growing web of laws, rules, 
regulations and red tape. I wish this bill were doing more to undo some 
of that regulation because it would lower the price paid by million of 
families who've spent their lives working and saving for the time when 
they could become homeowners. That will be part of my agenda for next 
Congress.

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