A. The “New Mexico housing trust fund” is created in the authority. The fund shall consist of all distributions, appropriations and other allocations made to the fund. Earnings of the fund shall be credited to the fund, and unexpended and unencumbered balances in the fund shall not revert to any other fund except as provided in Subsection D of this section. The authority shall be the trustee for the fund, and the state investment council shall be the investment agent for the fund. The fund may consist of such subaccounts as the authority deems necessary to carry out the purpose of the fund.

B. The fund shall consist of revenue from the following recurring sources: (1)     appropriations and transfers from the general fund;

(2)     proceeds of severance tax bonds issued pursuant to Section 1 [7-27-49 N.M. Stat. Ann.] of this 2022 act and any payments of principal of and interest on loans for projects funded by the proceeds of those bonds;

(3)     any other money appropriated or distributed to the fund; or

(4)     any private contributions to the fund.

C. Money in the fund is appropriated to the authority for the purposes of carrying out the provisions of the New Mexico Housing Trust Fund Act N.M. Stat. Ann. § 58-18C-1 to 58-18C-9. The authority shall prioritize expending or encumbering balances in the fund from payments of principal of and interest on loans for projects funded by the proceeds of severance tax bonds prior to expending or encumbering any proceeds from more recently issued bonds.

D. The authority shall monitor and ensure proper reversions of severance tax bond proceeds as required by Section 1 of this 2022 act.