EXPAND METRO REDEVELOPMENT CODE & PROJECTS

HB0194

HOUSE BILL 194

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Cristina Parajón
and
Peter Wirth
and
Nicole Tobiassen

AN ACT

RELATING TO MUNICIPALITIES; EXPANDING THE METROPOLITAN
REDEVELOPMENT CODE TO INCLUDE HOUSING SHORTAGE AREAS; EXPANDING
THE SCOPE OF METROPOLITAN REDEVELOPMENT PROJECTS; EXEMPTING A
QUALIFYING MULTIFAMILY PROPERTY IN A HOUSING SHORTAGE AREA FROM
PROPERTY TAXATION FOR UP TO TWENTY YEARS PURSUANT TO THE
METROPOLITAN REDEVELOPMENT CODE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 3-60A-2 NMSA 1978 (being Laws 1979,
Chapter 391, Section 2, as amended) is amended to read:

"3-60A-2. FINDINGS AND DECLARATIONS OF NECESSITY.--

A. It is found and declared that there exist in the
state slum areas, [
and
] blighted areas
and housing shortage
areas
that constitute a serious and growing menace, injurious
to the public health, safety, morals and welfare of the
residents of the state; that the existence of these areas
contributes substantially to the spread of disease and crime,
constitutes an economic and social burden, substantially
impairs or arrests the sound and orderly development of many
areas of the state and retards the maintenance and expansion of
necessary housing accommodations; that economic and commercial
activities are lessened in those areas by the slum or blighted
conditions, and the effects of these conditions include less
employment in the area, lower property values, less gross
receipts tax revenue and reduced use of buildings, residential
dwellings and other facilities in the area; that the prevention
and elimination of slum areas and blighted areas,
the
construction of affordable housing accommodations
and the
prevention and elimination of conditions that impair sound and
orderly development [
is
]
are
a matter of state policy and
concern in order that the state shall not continue to be
endangered by these areas that contribute little to the tax
income of the state and its local governments and that consume
an excessive proportion of its revenues because of the extra
services required for police, fire, accident, hospitalization
or other forms of public protection, services and facilities.

B. Certain slum areas, [
and
] blighted areas
and
housing shortage areas
, or portions thereof, may require land
acquisition and clearance by local government, since prevailing
conditions may make impracticable their reclamation or
development; other areas or portions of the slum or blighted
area may be suitable for conservation or rehabilitation efforts
and the conditions and evils enumerated in Subsection A of this
section may be eliminated, remedied or prevented by those
efforts; and to the extent feasible:

(1)
salvageable slum and blighted areas should
be conserved and rehabilitated through voluntary action and the
regulatory process and, when necessary, by government
assistance;
and

(2) additional multifamily housing should be
developed through voluntary action and the regulatory process
and, when necessary, by government assistance
.

C. The powers conferred by the Metropolitan
Redevelopment Code regarding the use of public money are for
public uses or purposes for which public money may be expended.
The individual benefits accruing to persons as the result of
the powers conferred by the Metropolitan Redevelopment Code and
projects conducted in accordance with its provisions are found
and declared to be incidental to the objectives of that code
and are far outweighed by the benefit to the public as a whole.
Activities authorized and powers granted by the Metropolitan
Redevelopment Code are hereby declared not to result in a
donation or aid to any person, association or public or private
organization or enterprise. The necessity for these provisions
and the power is declared to be in the public interest as a
matter of legislative determination."

SECTION 2.
Section 3-60A-4 NMSA 1978 (being Laws 1979,
Chapter 391, Section 4, as amended) is amended to read:

"3-60A-4. DEFINITIONS.--As used in the Metropolitan
Redevelopment Code:

A. "public body" means a local government, board,
commission, authority, district or other political subdivision
or public body of the state;

B. "local government" means an incorporated city,
town or village, whether incorporated under general act,
special act or special charter, or a county or, when the
context requires, the governing body of an incorporated city,
town or village or a county;

C. "clerk" means the clerk or other official of a
local government who is the chief custodian of the official
records of the local government;

D. "federal government" means the United States of
America or an agency or instrumentality, corporate or
otherwise, of the United States;

E. "slum area" means an area within the area of
operation in which there are numerous residential or
nonresidential buildings, improvements and structures that are
dilapidated, deteriorated, aged or obsolete or that have
inadequate provision for ventilation, light, air or sanitation
or the area lacks open spaces or has a high density of
population or overcrowding or there exist in the area
conditions that endanger life or property by fire or other
causes, and the area is conducive to ill health, transmission
of disease, infant mortality, juvenile delinquency or crime and
is detrimental to the public health, safety, morals or welfare;

F. "blighted area" means an area within the area of
operation other than a slum area that substantially impairs or
arrests the sound growth and economic health and well-being
within the jurisdiction of a local government or a locale
within the jurisdiction of a local government because of the
presence of a substantial number of deteriorated or
deteriorating structures; a predominance of defective or
inadequate street layout; faulty lot layout in relation to
size, adequacy, accessibility or usefulness; unsanitary or
unsafe conditions; deterioration of site or other improvements;
diversity of ownership; tax or special assessment delinquency
exceeding the fair value of the land; defective or unusual
conditions of title; improper subdivision; lack of adequate
housing facilities in the area; or obsolete or impractical
planning and platting or an area where a significant number of
commercial or mercantile businesses have closed or
significantly reduced their operations due to the economic
losses or loss of profit due to operating in the area, low
levels of commercial or industrial activity or redevelopment or
any combination of such factors; or an area that retards the
provisions of housing accommodations or constitutes an economic
or social burden and is a menace to the public health, safety,
morals or welfare in its present condition and use;

G. "housing shortage area" means an area within the
jurisdiction of a local government that is experiencing:

(1) a shortage of housing that is affordable
to households earning at or below the area median income;

(2) rising housing costs that outpace wage
growth;

(3) low vacancy rates;

(4) excessive housing costs;

(5) an inadequate supply of multifamily or
workforce housing; or

(6) any combination of factors delineated in
Paragraphs (1) through (5) of this subsection;

[
G.
]
H.
"metropolitan redevelopment project" or
"project" means an activity, undertaking or series of
activities or undertakings designed to:

(1)
eliminate slums or blighted areas in areas
designated as metropolitan redevelopment areas and the activity
or undertaking conforms to an approved plan for the area for
slum clearance and redevelopment, rehabilitation and
conservation;
or

(2) provide for qualifying multifamily units
in a housing shortage area designated as a metropolitan
redevelopment area;

[
H.
]
I.
"slum clearance and redevelopment" means
the use of those powers authorized by the Metropolitan
Redevelopment Code to eliminate slum areas and undertake
activities authorized by the Metropolitan Redevelopment Code to
rejuvenate or revitalize those areas so that the conditions
that caused those areas to be designated slum areas are
eliminated;

[
I.
]
J.
"rehabilitation" or "conservation" means
the restoration and renewal of a slum, [
or
] blighted area
or
housing shortage area
or portion thereof in accordance with an
approved plan by use of powers granted by the Metropolitan
Redevelopment Code;

[
J.
]
K.
"metropolitan redevelopment area" means a
slum area, [
or
] a blighted area
or a housing shortage area
, or
a combination thereof, that the local government so finds and
declares and designates as appropriate for a metropolitan
redevelopment project,
including a project for the development
of qualifying multifamily properties and qualifying multifamily
units
;

[
K.
]
L.
"metropolitan redevelopment plan" means a
plan [
as it exists from time to time
] for one or more
metropolitan redevelopment areas or for a metropolitan
redevelopment project, which plan shall:

(1) seek to eliminate the problems created by
a slum area, [
or
]
a
blighted area
or a housing shortage area
;

(2) conform to the general plan for the local
government as a whole; and

(3) be sufficient to indicate the proposed
activities to be carried out in the area, including any
proposals for land acquisition; proposals for demolition and
removal of structures; redevelopment; proposals for
improvements, rehabilitation and conservation; zoning and
planning changes; land uses, maximum densities, building
restrictions and requirements; and the plan's relationship to
definite local objectives respecting land uses, improved
traffic patterns and controls, public transportation, public
utilities, recreational and community facilities, housing
facilities, commercial activities or enterprises, industrial or
manufacturing use and other public improvements;

[
L.
]
M.
"real property" includes all lands,
including improvements and fixtures thereon, and property of
any nature appurtenant thereto or used in connection therewith
and every estate, interest, right and use, legal or equitable,
therein, including terms for years and liens by way of
judgment, mortgage or otherwise;

[
M.
]
N.
"bonds" means any bonds, including
refunding bonds, notes, interim certificates, certification of
indebtedness, debentures, metropolitan redevelopment bonds or
other securities evidencing an obligation and issued under the
provisions of the Metropolitan Redevelopment Code or other
obligations;

[
N.
]
O.
"obligee" includes a bondholder, agent or
trustee for a bondholder or lessor demising to the local
government property used in connection with a metropolitan
redevelopment project or any assignee or assignees of such
lessor's interest or any part thereof;

[
O.
]
P.
"person" means an individual, firm,
partnership, corporation, company, association, joint stock
association or body politic or the state or any political
subdivision thereof and shall further include any trustee,
receiver, assignee or other person acting in a similar
representative capacity;

[
P.
]
Q.
"area of operation" means an area within a
local government's jurisdiction, except that it shall not
include an area that lies within the jurisdiction of another
local government unless an ordinance has been adopted by the
other local government declaring a need therefor;

[
Q.
]
R.
"board" or "commission" means a board,
commission, department, division, office, body or other unit of
a local government designated by the local government to
perform functions authorized by the Metropolitan Redevelopment
Code as directed by the local government;

[
R.
]
S.
"public officer" means any person who is in
charge of any department or branch of government of the local
government; [
and

S.
]
T.
"fair value" means the negotiated price or
value of an asset or liability agreed upon by a local
government and a private entity;

U. "qualifying multifamily property" means a
residential multifamily development with five or more dwelling
units available for lease for periods of one month or more;
provided that a minimum of fifteen percent of all of the
dwelling units within the development are qualifying
multifamily units and the average area median income of
residents occupying qualifying multifamily units is not more
than eighty-five percent of the area median income;

V. "qualifying multifamily unit" means a
residential dwelling unit that is available to lease or that is
leased to a household whose income is between seventy percent
and ninety-five percent of the applicable area median income
and leased or available to lease to such a household at the
rental amounts as shown on the current income and rent limits
tables for the applicable area published by the United States
department of housing and urban development; and

W. "area median income" means the median income for
the immediate geographic area in which the household is
located, adjusted for family size, as determined by the United
States department of housing and urban development
."

SECTION 3.
Section 3-60A-7 NMSA 1978 (being Laws 1979,
Chapter 391, Section 7, as amended) is amended to read:

"3-60A-7. FINDING OF NECESSITY BY LOCAL GOVERNMENT.--No
local government shall exercise any of the powers conferred
upon local governments by the Redevelopment Law until the local
government has adopted a resolution finding that:

A. one or more slum areas, [
or
] blighted areas
or
housing shortage areas
exist in the local government's
jurisdiction; and

B. the rehabilitation, conservation, slum
clearance, redevelopment, [
or
] development,
construction or
designation of qualifying multifamily units
or a combination
thereof, of and in such area is necessary in the interest of
the public health, safety, morals or welfare of the residents
of the local government's jurisdiction."

SECTION 4.
Section 3-60A-8 NMSA 1978 (being Laws 1979,
Chapter 391, Section 8, as amended) is amended to read:

"3-60A-8. DESIGNATION OF A METROPOLITAN REDEVELOPMENT
AREA.--

A. A local government shall not prepare a
metropolitan redevelopment plan for an area unless the local
government has, by resolution, determined the area to be a slum
area, [
or
] a blighted area
or a housing shortage area
, or a
combination thereof, and designated the area as appropriate for
a metropolitan redevelopment project,
which resolution may be
adopted only after the local government has caused to be
published in a newspaper of general circulation within the area
of operation of the local government a notice that contains a
general description of the area and the date, time and place
where the local government shall hold a public hearing to
consider the resolution and a notice that any interested party
may appear and speak to the issue of the adoption of the
resolution.

B. A local government may declare any area or areas
in its jurisdiction as a housing shortage area and metropolitan
redevelopment area applicable only to qualifying multifamily
properties. A local government may identify a housing shortage
area by map, narrative description, reference to specific
zoning categories or other method that reasonably identifies
the designated area.

[
B.
]
C.
Notice shall be published at least twice,
and the last publication shall be not less than twenty days
before the hearing. The owner of any real property affected by
the resolution has the right to file in the district court of
the county within which the local government is located, within
twenty days after the adoption of the resolution, an action to
set aside the determination made by the local government.

[
C.
]
D.
A local government shall not acquire real
property for a metropolitan redevelopment project unless the
local government has approved a metropolitan redevelopment plan
relating to the metropolitan redevelopment area in which the
real property is located."

SECTION 5.
Section 3-60A-9 NMSA 1978 (being Laws 1979,
Chapter 391, Section 9, as amended) is amended to read:

"3-60A-9. PREPARATION OF A METROPOLITAN REDEVELOPMENT
PLAN.--

A. When a local government has complied with the
provisions of the Redevelopment Law concerning public hearing
and designation of an area as a metropolitan redevelopment
area, it may prepare or cause to be prepared a metropolitan
redevelopment plan; however, prior to final consideration of
the plan by the local government, the plan shall be the subject
of at least one public hearing held by the local government or
the local government's planning commission, at which time
comments from the public as a whole can be gathered and
considered by the local government in its preparation of the
final plan. The local government may hold a public hearing for
purposes of approval of the proposed plan, as provided in
Subsection B of this section, only after the hearing required
by this subsection.

B. The local government shall hold a public hearing
on a metropolitan redevelopment plan or substantial
modification of an approved plan after public notice by
publication in a newspaper having a general circulation in the
area of operation of the local government. The notice shall
describe the time, date, place and purpose of the hearing,
shall generally identify the area covered by the plan and shall
outline the general scope of the metropolitan redevelopment
project under consideration. Prior to the public hearing on
this matter, notice of the public hearing shall be mailed by
first class mail to the owners of real property in the
metropolitan redevelopment area. The mailing shall be to the
owner's address as shown on the records of the county
treasurer. If the notice by first class mail to the owner is
returned undelivered, the local government shall attempt to
discover the owner's most recent address and shall remail the
notice by certified mail, return receipt requested, to the
address.

C. Following the public hearing, the local
government may approve a metropolitan redevelopment plan if it
finds that:

(1) the proposed activities will aid in the
elimination or prevention of slum or blight or the conditions
that lead to the development of slum or blight;
or the proposed
plan will aid in the construction, rehabilitation or
designation of qualifying multifamily properties or qualifying
multifamily units within a housing shortage area
;

(2) a feasible method is included in the plan
to provide individuals and families who occupy residential
dwellings in the metropolitan redevelopment area and who may be
displaced by the proposed activities with decent, safe and
sanitary dwelling accommodations within their means and without
undue hardship to such individuals and families;

(3) the plan conforms to the general plan for
the local government; and

(4) the plan affords maximum opportunity
consistent with the needs of the community for the:

(a)
rehabilitation or redevelopment of
the area by private enterprise or persons and the objectives of
the plan justify the proposed activities as public purposes and
needs;
or

(b) construction or designation of
qualifying multifamily properties within the housing shortage
area by private enterprise or persons and the objectives of the
plan justify the proposed activities as public purposes and
needs
.

D. A metropolitan redevelopment plan may be
modified at any time; however, if the plan is modified after
the lease or sale by the local government of real property in
the project area, the modification shall be subject to any
rights at law or in equity a lessee or purchaser or the
lessee's or purchaser's successors in interest may be entitled
to assert. Any proposed modification that will substantially
change the plan as previously approved by the local government
shall be subject to the requirements of this section, including
the requirement of a public hearing, before it may be
approved."

SECTION 6.
Section 3-60A-10 NMSA 1978 (being Laws 1979,
Chapter 391, Section 10, as amended) is amended to read:

"3-60A-10. POWERS OF LOCAL GOVERNMENT.--A local
government shall have all the powers, other than the power of
eminent domain, necessary or convenient to carry out and
effectuate the purposes and provisions of the Metropolitan
Redevelopment Code, including the following powers:

A. to undertake and carry out metropolitan
redevelopment projects within its area of operation, including
clearance and redevelopment, rehabilitation, conservation and
development activities and programs; to make, enter into and
execute contracts and other agreements and instruments
necessary or convenient to the exercise of its powers under the
Redevelopment Law; and to disseminate information regarding
slum clearance, prevention of blight and the metropolitan
redevelopment projects and areas;

B. to provide, arrange or contract for the furnishing
or repair by a public or private person or agency for services,
privileges, works, streets, roads, public utilities, public
buildings or other facilities for or in connection with a
metropolitan redevelopment project; to, within its area of
operation, install, acquire, construct, reconstruct, remodel,
rehabilitate, maintain and operate streets, utilities, parks,
buildings, playgrounds and public buildings, including parking
facilities, transportation centers, public safety buildings and
other public improvements or facilities or improvements for
public purposes, as may be required by the local government,
the state or a political subdivision of the state; to agree to
conditions that it may deem reasonable and appropriate that are
attached to federal financial assistance and imposed pursuant
to federal law, including conditions relating to the
determination of prevailing salaries or wages or compliance
with federal and state labor standards, compliance with federal
property acquisition policy and the provision of relocation
assistance in accordance with federal law in the undertaking or
carrying out of a metropolitan redevelopment project; and to
include in a contract let in connection with the project
provisions to fulfill these conditions as it may deem
reasonable and appropriate; provided, however, that all
purchases of personal property shall be in accordance with the
Procurement Code;

C. within its area of operation, to inspect any
building or property in a metropolitan redevelopment area in
order to make surveys, appraisals, soundings or test borings
and to obtain an order for this purpose from a court of
competent jurisdiction in the event inspection is denied by the
property owner or occupant; to acquire, by purchase, lease,
option, gift, grant, bequest, devise or otherwise, any real
property or personal property for its administrative or project
purposes, together with any improvements thereon; to hold,
improve, clear or prepare for redevelopment any such property;
to mortgage, pledge, hypothecate or otherwise encumber or
dispose of any real property; to insure or provide for the
insurance of real or personal property or operations of the
local government against risks or hazards, including the power
to pay premiums on that insurance; and to enter into contracts
necessary to effectuate the purposes of the Metropolitan
Redevelopment Code;

D. to invest metropolitan redevelopment project funds
held in reserve, sinking funds or other project funds that are
not required for immediate disbursement in property or
securities in which local governments may legally invest funds
subject to their control; to redeem bonds as have been issued
pursuant to the Metropolitan Redevelopment Code at the
redemption price established in the bonds or to purchase the
bonds at less than redemption price. Bonds so redeemed or
purchased shall be canceled;

E. to borrow or lend money subject to those
procedures and limitations as may be provided in the
constitution of New Mexico or statutes and to apply for and
accept advances, loans, grants, contributions and other forms
of financial assistance from the federal government, the state,
the county or other public body or from sources, public or
private, for the purposes of the Metropolitan Redevelopment
Code; and to give security as may be required and subject to
the provisions and limitations of general law except as may
otherwise be provided by the Redevelopment Law and to enter
into and carry out contracts in connection with that law. A
local government may include in a contract for financial
assistance with the federal government for a metropolitan
redevelopment project conditions imposed pursuant to federal
law that the local government may deem reasonable or
appropriate and that are not inconsistent with the purposes of
the Metropolitan Redevelopment Code;

F. within its area of operation, to make plans
necessary for the carrying out of the purposes of the
Metropolitan Redevelopment Code and to contract with any
person, public or private, in making and carrying out such
plans and to adopt or approve, modify and amend the plans. The
plans may include without limitation:

(1) a general plan for redevelopment of the area
as a whole;

(2) redevelopment plans for specific areas;

(3) plans for programs of voluntary or assisted
repair and rehabilitation of buildings and improvements;

(4) plans for the enforcement of state and local
laws, codes and regulations relating to the use of land and the
use and occupancy of buildings and improvements and to the
compulsory repair, rehabilitation, demolition or removal of
buildings and improvements; and

(5) appraisals, title searches, surveys, studies
and other preliminary plans and work necessary to prepare for
the undertaking of metropolitan redevelopment projects;

G. to develop, test and report methods and techniques
and carry out demonstrations and other activities for the
prevention and elimination of slums and blight and to pay for,
accept and use grants of funds from the federal government for
those purposes;

H. to prepare plans for the relocation of families
displaced from a metropolitan redevelopment area to the extent
essential for acquiring possession of and clearing the area or
its parts or permit the carrying out of the metropolitan
redevelopment project;

I. to appropriate under existing authority the funds
and make expenditures necessary to carry out the purposes of
the Metropolitan Redevelopment Code and under existing
authority to levy taxes and assessments for such purposes; to
close, vacate, plan or replan streets, roads, sidewalks, ways
or other places; in accordance with applicable law or
ordinances, to plan or replan, zone or rezone any part within
the jurisdiction of the local government or make exceptions
from building regulations; and to enter into agreements with a
metropolitan redevelopment agency vested with metropolitan
redevelopment project powers, which agreements may extend over
any period, notwithstanding any provision or rule of law to the
contrary, respecting action to be taken by the local government
pursuant to the powers granted by the Redevelopment Law;

J. within its area of operation, to organize,
coordinate and direct the administration of the provisions of
the Redevelopment Law as they apply to the local government in
order that the objective of remedying slum areas, [
and
]
blighted areas
and housing shortage areas
and preventing the
causes of those areas within the jurisdiction of the local
government may be most effectively promoted and achieved and to
establish any new office of the local government or to
reorganize existing offices as necessary;

K. to acquire real property that is appropriate for
the preservation or restoration of historic sites; the
beautification of urban land; the conservation of open spaces,
natural resources and scenic areas; or the provision of
recreational opportunities; or that is to be used for public
purposes;

L. to engage in the following activities as part of a
metropolitan redevelopment project:

(1) acquisition, construction, reconstruction or
installation of public works, facilities and site or other
improvements, including neighborhood facilities, senior citizen
centers, historic properties, utilities, streets, street
lights, water and sewer facilities, including connections for
residential users, foundations and platforms for air-rights
sites, pedestrian malls and walkways, parks, playgrounds and
other recreation facilities, flood and drainage facilities,
parking facilities, solid waste disposal facilities and fire
protection or health facilities that serve designated areas;

(2) special projects directed to the removal of
materials and architectural barriers that restrict the mobility
and accessibility of elderly and disabled persons;

(3) provision of public services in the
metropolitan redevelopment area that are not otherwise
available in the area, including the provisions of public
services directed to the employment, economic development,
crime prevention, child care, health, drug abuse, welfare or
recreation needs of the people who reside in the metropolitan
redevelopment area;

(4) payment of the nonfederal share of any
federal grant-in-aid program to the local government that will
be a part of a metropolitan redevelopment project;

(5) if federal funds are used in the project, to
provide for payment of relocation costs and assistance to
individuals, families, businesses, organizations and farm
operations displaced as a direct result of a metropolitan
redevelopment project in accordance with applicable law
governing such payment;

(6) payment of reasonable administrative costs
and carrying charges related to the planning and execution of
plans and projects;

(7) economic and marketing studies to determine
the economic condition of an area and to determine the
viability of certain economic ventures proposed for the
metropolitan redevelopment area;

(8) issuance of bonds, grants or loans as
authorized by the Metropolitan Redevelopment Code in accordance
with the requirements of that code; and

(9) grants to nonprofit corporations, local
development corporations or entities organized under Section
301 (d) of the federal Small Business Investment Act of 1958
for the purposes of carrying out the provisions of the
Metropolitan Redevelopment Code;

M. in a metropolitan redevelopment project or
rehabilitation or conservation undertaking or activity, to
exercise the following powers in one or more metropolitan
redevelopment areas to include
the increase in qualifying
multifamily properties and
the elimination and prevention of
the development or spread of slums or blight and may involve
slum clearance,
development
and redevelopment in that area or
rehabilitation or conservation in that area or any combination
or part of those areas in accordance with a metropolitan
redevelopment plan and for undertakings or activities of a
local government in a metropolitan redevelopment area to

increase qualifying multifamily properties or to
eliminate the
conditions that caused an area to be [
so
] designated
as a slum
or blighted area
and may include the following:

(1) acquisition of real property within the
metropolitan redevelopment area pursuant to any powers and for
purposes enumerated in the Metropolitan Redevelopment Code;

(2) clearing the land, grading the land and
replatting the land in accordance with the metropolitan
redevelopment plan; installation, construction or
reconstruction of roads, streets, gutters, sidewalks, storm
drainage facilities, water lines or water supply installations,
sewer lines and sewage disposal installations, steam, gas and
electric lines and installations, airport facilities and
construction of any other needed public facilities or buildings
whether on or off the site if deemed necessary by the local
government to prepare the land in the metropolitan
redevelopment area for residential, commercial, industrial and
public use in accordance with the metropolitan redevelopment
plan; and

(3) making the land available for development by
private enterprise or public agencies, including sale, initial
leasing, leasing or retention by the local government itself,
at its fair market value for uses in accordance with the
metropolitan redevelopment plan for the area;

N. the local government is empowered in a
metropolitan redevelopment area to undertake
qualifying
multifamily property development and
slum clearance and
redevelopment that includes:

(1) acquisition of a
qualifying multifamily
property or
slum area or a blighted area or portion thereof;

(2) demolition and removal of buildings and
improvements;

(3) installation, construction, reconstruction,
maintenance and operation of streets, utilities, storm drainage
facilities, curbs and gutters, parks, playgrounds, single-family or multifamily dwelling units, buildings, public
buildings, including parking facilities, transportation
centers, safety buildings and other improvements, necessary for
carrying out in the area the provisions of an approved plan for
the area; and

(4) making the real property available for
development or redevelopment by private enterprise or public
agencies, including sale, leasing or retention by the local
government itself, at its fair value for uses in accordance
with the metropolitan redevelopment area plan; and

O. to engage in rehabilitation or conservation that
includes the restoration and renewal of a
qualifying
multifamily property or
slum or blighted area or portion
thereof in accordance with any approved plan, by:

(1) carrying out plans for a program of
voluntary or compulsory
construction or
repair and
rehabilitation of buildings or other improvements;

(2) acquisition of real property and demolition
or removal of buildings and improvements thereon where
necessary to eliminate unhealthful, unsanitary or unsafe
conditions, lessen or increase density, eliminate obsolete or
other uses detrimental to the public welfare or to otherwise
remove or prevent the spread of blight or deterioration or to
provide land for needed public facilities;

(3) installation, construction or reconstruction
of streets, utilities, parks, playgrounds and other
improvements necessary for carrying out in the area the
provisions of the Metropolitan Redevelopment Code;

(4) the disposition of any property acquired in
the area, including sale, leasing or retention by the local
government itself, for uses in accordance with an approved
plan;

(5) acquisition of real property in the area
that, under a plan, is to be
constructed
, repaired or
rehabilitated;

(6)
construct
, repair or rehabilitation of
structures within the area;

(7) power to resell
developed
, repaired or
rehabilitated property;

(8) acquisition, without regard to any
requirement that the area be
a housing shortage area
, a slum or

a
blighted area, of air-rights in an area consisting
principally of land on which is located a highway, railway,
bridge or subway tracks or tunnel entrance or other similar
facilities that have a blighting influence on the surrounding
area and over which air-rights sites are to be developed for
the
construction or designation of qualifying multifamily
property or the
elimination of such blighting influences; and

(9) making loans or grants or authorizing the
use of the proceeds of bonds issued pursuant to the
Metropolitan Redevelopment Code for the purpose of
constructing, repairing, remodeling or modifying a building or
buildings located in the metropolitan redevelopment area. Such
rehabilitation or conservation with use of funds expended by
authority of the Metropolitan Redevelopment Code or by
metropolitan revenue bonds authorized by that code shall be
authorized after approval by the local government and after it
has been determined that the expenditure is in accordance with
the metropolitan redevelopment plan for that area."

SECTION 7.
Section 3-60A-13.1 NMSA 1978 (being Laws 1985,
Chapter 225, Section 2, as amended) is amended to read:

"3-60A-13.1. PAYMENTS IN LIEU OF PROPERTY TAXES AND
ASSESSMENTS.--

A. If interests in project property are exempt from
property taxation and assessments under Subsection B of Section
3-60A-13 NMSA 1978 or Section 7-36-3.1 NMSA 1978, then during
the period extending from the date of acquisition of the
property by the local government through December 31 of the
year in which the seventh anniversary of that acquisition date
occurs,
except for qualifying multifamily property, for which
the period may be extended up to the twentieth anniversary if
set forth in the applicable metropolitan redevelopment plan
adopted by the local government
, any lessee of the project
property or owner of a substantial beneficial interest in the
project property, in whose ownership the property would not be
exempt from property taxation except for the exemption granted
under Section 7-36-3.1 NMSA 1978, shall pay to the county
treasurer annually, at the same time property tax payments are
due under the Property Tax Code, an amount equal to the sum of:

(1) general property taxes that would have been
imposed under Subsection B of Section 7-37-7 NMSA 1978 had it
not been exempt and had it been valued at the valuation for
property taxation purposes that existed in the year immediately
preceding the year of acquisition by the local government;

(2) amounts that would have been imposed under
Subsection C of Section 7-37-7 NMSA 1978 on the project
property had it not been exempt and had it been valued at the
valuation for property taxation purposes that existed in the
year immediately preceding the year of acquisition by the local
government; and

(3) amounts that would have been imposed as
benefit assessments on the project property had it not been
exempt and had it been valued at the valuation for property
taxation purposes that existed in the year immediately
preceding the year of acquisition by the local government if
those benefit assessments are authorized by law and are
expressed in mills per dollar or dollars per thousand dollars
of net taxable value of property, assessed value of property or
similar terms.

B. The county treasurer shall distribute all amounts
collected under Subsection A of this section in the same manner
as the amounts would have been distributed if they had been
collected as taxes or assessments on nonexempt property.

C. The provisions of this section shall apply only to
project property acquired by a local government under the
provisions of the Metropolitan Redevelopment Code on or after
January 1, 1986."

SECTION 8.
Section 3-60A-15 NMSA 1978 (being Laws 1979,
Chapter 391, Section 15, as amended) is amended to read:

"3-60A-15. EXERCISE OF POWERS IN CARRYING OUT PROJECTS.--

A. A local government may directly exercise its
metropolitan redevelopment project powers or it may, by
ordinance if it determines such action to be in the public
interest, elect to delegate the exercise of such powers to the
metropolitan redevelopment agency created pursuant to the
Redevelopment Law. If the local government so determines, the
agency shall be vested with all of the powers in the same
manner as though all the powers were conferred on the agency or
authority instead of the local government.

B. As used in this section, the term "redevelopment
project powers" includes any rights, powers, functions and
duties of a local government authorized by the Redevelopment
Law except the following, which are reserved to the local
government, the power to:

(1) declare an area to be
a housing shortage
area
, a slum or a blighted area, or combination thereof, and to
designate the area as appropriate for a redevelopment project;

(2) approve or amend redevelopment plans;

(3) approve a general plan for the local
government as a whole;

(4) make findings of necessity prior to
preparation of a metropolitan redevelopment plan as provided in
the Redevelopment Law and the findings and determinations
required prior to approval of a metropolitan redevelopment plan
or project as provided in the Redevelopment Law;

(5) issue general obligation bonds and revenue
bonds as authorized by law;

(6) issue redevelopment bonds; and

(7) appropriate funds and levy taxes and
assessments."

SECTION 9.
Section 7-36-3.1 NMSA 1978 (being Laws 1979,
Chapter 56, Section 2, as amended) is amended to read:

"7-36-3.1. METROPOLITAN REDEVELOPMENT PROPERTY--TAX
STATUS OF LESSEE'S INTERESTS.--

A.
Property interests of a lessee in project property
held under a lease with respect to a project authorized by the
Metropolitan Redevelopment Code and acquired or held by a
municipality prior to January 1, 1986 under the provisions of
that code are exempt from property taxation for as long as
there is an outstanding bonded indebtedness, but in any event
for a period not to exceed ten years from the date of execution
of the first lease of the project by the municipality.

B.
Property interests of a lessee of or an owner of a
substantial beneficial interest in project property acquired or
held by a municipality on or after January 1, 1986 with respect
to a project authorized by the Metropolitan Redevelopment Code
are exempt from property taxation for a period extending from
the date of acquisition of the project property by the
municipality through December 31 of the year in which the
seventh anniversary of that acquisition date occurs.

C. Property interests of a lessee of or an owner of a
substantial beneficial interest in a qualifying multifamily
property acquired or held by a municipality or county on or
after May 20, 2026 with respect to a project to develop
qualifying multifamily property authorized by the Metropolitan
Redevelopment Code are exempt from property taxation for a
period extending from the date of acquisition of the qualifying
multifamily property by the municipality or county through
December 31 of not less than the seventh anniversary or more
than the twentieth anniversary of the year in which the
acquisition of the qualifying multifamily property occurs.
"

- 32 -