Colonias refers to rural communities with a population of twenty-five thousand or less that are located within 150 miles of the US-Mexico border that have been designated as a colonia by the municipality or county due to a lack of potable water supply; lack of adequate sewage systems; or a lack of decent, safe and sanitary housing. Additional requirements include being in existence as a colonia prior to November 1990 and having appropriate documentation submitted to the Colonias Infrastructure Board (CIB).
State funding has been established through the Colonias Infrastructure Project Act of 2010 to assist colonia development, specifically for water systems; wastewater systems; solid waste disposal facilities; flood and drainage control; road infrastructure; or housing infrastructure.
The online application process is administered by the New Mexico Finance Authority (NMFA). Eligible entities include counties, municipalities and other entities recognized as a political subdivision of the state. Funding consists of an 80% grant, a loan component of 10% of the awarded amount and a 10% match. Applications are reviewed by a Legal and Project Management Team. SNMEDD will assist local entities in both making application and grant administration.