ZERO-INTEREST LOANS FOR FLOOD DAMAGE

HB 314 provides zero-interest loans to New Mexico local governments (cities, counties) in Chaves County that received federal disaster funding for repairs after the October 19, 2024 storm. The loans, funded by $150 million from the state general fund, must be repaid within 30 days using the approved federal disaster funds, with failure to repay triggering market interest rates. Political subdivisions must sign reimbursement contracts detailing repayment terms and reporting requirements. The bill appropriates funds for fiscal years 2027-2028, with unused funds reverting to the general fund by 2028. It takes effect July 1, 2026.