During a recent Senate Health and Public Affairs meeting, a significant discussion emerged regarding the allocation and sustainability of housing funds in New Mexico. Senator Nava raised concerns about the prioritization of funding areas, to which Mister Izzi responded that there is no strict prioritization. Instead, the state allocates funds across various needs and adjusts based on demand, utilizing a total of $122 million to address housing issues statewide.

Mister Izzi detailed the federal funding received, including approximately $10 million annually from the Department of Housing and Urban Development (HUD) through various programs. He expressed optimism about maintaining this funding despite recent federal budget uncertainties, assuring that services would continue until further notice.

Senator Scott inquired about the percentage of funds allocated as loans and the potential for the program to become self-sustaining. Izzi revealed that over 90% of the $122 million awarded has been in loans, which historically generated $42 million in program income over 18 years. While he acknowledged the significant housing need in New Mexico, estimated at $42 billion, he emphasized the importance of wise investment to grow program income, though he does not foresee the fund meeting all housing demands.

The meeting concluded with a motion for a due pass on the funding initiative, highlighting the ongoing commitment to addressing housing needs across the state. As discussions continue, the focus remains on ensuring that resources are effectively allocated to meet the pressing demands of New Mexico's housing crisis.