The New Mexico Finance Authority (NMFA) was created by the New Mexico State Legislature in 1992 to finance infrastructure projects for the state’s counties and cities and certain departments of state government. The objective was to provide low-cost financing for borrowers who might not otherwise be able to access the tax-exempt bond market on a cost-effective basis. The 1992 statute created the Public Projects Revolving Fund (“PPRF”) as the vehicle to accomplish this financing objective. As authorized by the statute, the NMFA issues tax-exempt PPRF bonds to obtain the funds it loans to New Mexico governmental entities. The statute created the Governmental Gross Receipts Tax to serve as a credit enhancement for the NMFA’s bonds. Although the legislature has created additional program responsibilities for the NMFA, the PPRF remains the core of its activities.
The NMFA is governed by an eleven member Board of Directors. The NMFA is not subject to the supervision or control of any other board, bureau, department or agency of the state. The Legislative Oversight Committee of the New Mexico State Legislature is empowered to monitor and oversee its operations.