The Santa Fe County Commission will consider regulations today that could clear the way for the county to spend about $2 million from its affordable housing fund. The county received the money nearly two decades ago from the Las Campanas luxury subdivision in lieu of creating on-site affordable housing within the development.

If the regulations are passed, that money will be used for two purposes: down-payment assistance for county homebuyers and developer subsidies for builders of affordable housing.

Under the terms of the proposed rules, homebuyers in the unincorporated areas of Santa Fe County who earn 100 percent or less of the area median income (about $66,000 per year for a family of four) would be eligible for down-payment assistance grants of up to $10,000. Developers who meet program criteria would be eligible for up to $10,000 per affordable housing unit created.

Homeowners would be required to pay back the assistance if they sold, refinanced or vacated the property or if the homeowner died and the title for the property was transferred to a friend or family member. Developers who successfully fulfill the terms of their arrangements with the county would not be responsible for paying back the subsidy.

The Santa Fe County Commission has directed staff to cap the funds available for the developer subsidies at $500,000 over the next three-year period and re-evaluate the program then, but that suggestion is not written into the official resolution creating the program.

Also not included in the resolution is a suggestion made by Commissioner Virginia Vigil during a commission meeting in November that county employees get priority in receiving down-payment assistance. The suggestion was incorporated as "staff direction," but the language of the resolution was not changed before the commission voted unanimously to approve the resolution.

County staff charged with interpreting the direction gave differing answers as to its meaning.

County Housing Authority Director Dodi Salazar first said it was her understanding that applications from county employees be "expedited." Later, she said she thought Vigil was asking that county staff be provided with information about the possible assistance grants in time to take advantage of an $8,000 federal tax incentive for first-time homebuyers that will expire at the end of April.

As a result, Santa Fe County hosted several homebuyer-education workshops, which 33 county employees attended while on the clock.

County Affordable Housing Administrator Darlene Vigil said she came up with the idea for the workshops after she got "push back" from the representatives of local housing nonprofits about the suggestion that county employees might get priority when applying for the funds.

"They were confused," Darlene Vigil said. "They were saying you can't just give the money to public employees. So in an effort to make sure I followed through with what the commission was saying when they said 'prioritize,' I said, 'Let's get a feel to see if there is a huge demand or not.' "

Vigil said the subsequent workshops revealed that only two or three county employees are in a position to take advantage of the down payment assistance program.

County Manager Roman Abeyta said he did not think the matter would become an issue unless the county began to run out of money for the program. There is an estimated $1.5 million set aside for the program now, so about 150 people could receive the grant before it was exhausted, according to staff estimates.

Salazar and Darlene Vigil said the way the regulations now read, the funds will be available on a first-come, first-served basis.

But Abeyta said if two equally qualified applicants were to be considered for the last available grant, his interpretation of the direction given by the commission in November was that "preference would be given to the county employee."

In response to questions about her intention and whether she thought it was fair to give county employees preferential treatment, Commissioner Virginia Vigil issued the following written statement:

"The prioritization is with legal at this point. My intent was to put into place a workforce development for county employees similar to that available for law enforcement, firefighters and teachers."

County Attorney Stephen Ross said Monday he could not discuss whether he had been directed to examine a particular legal issue. But, Ross said, "It's an important issue that needs to be clarified."

The proposed rules for the down-payment assistance and developer subsidies are being reviewed by the New Mexico Mortgage Finance Authority, which must approve them before they are implemented.

If MFA and the Santa Fe County Commission both approve the regulations, Salazar said, money could be disbursed the first week of April.

Contact Phaedra Haywood at 986-3068 or phaywood@sfnewmexican.com.