NMFA projects on hold, leaders arrested

ALBUQUERQUE, N.M. (KRQE) - Authorities arrested two leaders with the New Mexico Finance Authority and until the NMFA books are straightened out, many projects around the state will not get the money they need.

The Finance Authority has $38 million it can use for new loans.

Wednesday the NMFA board said for now it will not approve any project more than $5 million .

In Albuquerque, developers want to build at least 300 new homes on Albuquerque's West Mesa, but now that could be on hold.

The City is seeking $27 million from the NMFA to put in the infrastructure for that project, but now that money is not available.

"We're not going to weep about it. We're going to go out and pull our boot heels up and hopefully provide this infrastructure to the City of Albuquerque", said Director of Municipal Development Michael Riordan.

Communities throughout New Mexico are facing the same problem. The Gila Regional Medical Center in Silver City is seeking $34 million to build a new addition, which is now uncertain.

The City of Las Vegas is also seeking $20 million for infrastructure.

That is not all the problems facing taxpayers. The State just hired outside experts to get to the bottom of the mess with the NMFA, that could cost up to another $1 million.

"The risks right now that we might uncover further waste, fraud and abuse are very high, so it's very important that we get in there as quickly as possible," said State Auditor Hector Balderas.

Balderas told KRQE News 13 there is the possibility of more arrests as the investigation unfolds.