State District Judge Linda M. Vanzi has voided the Region III Housing Authority’s sale of a home to an employee, one of three sales to agency insiders cited in a suit filed in October 2006 by the state attorney general.
Housing authorities in New Mexico by law must sell homes only to low-income buyers, and cannot sell homes to officers or employees of the agency, but the Albuquerque-area Region III agency’s board voted in 2003 to allow sales to employees.
In 2006 the agency defaulted on two $2.5 million bond issues purchased by the State Investment Council.
The council is obtaining titles to about 12 properties from the agency and plans to sell them to recoup its losses. However, the properties are valued at only about $1 million. The council is considering a lawsuit to further reduce its loss.
The dozen houses include homes purchased by a state judge and a top aide to the state House speaker.
