CREATE DEMOLITION FUND

SB0119

SENATE BILL 119

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

INTRODUCED BY

Antonio Maestas

AN ACT

RELATING TO FINANCE; CREATING THE DEMOLITION FUND; ALLOWING THE
LOCAL GOVERNMENT DIVISION OF THE DEPARTMENT OF FINANCE AND
ADMINISTRATION TO PROVIDE GRANTS FOR COUNTIES AND
MUNICIPALITIES OR OTHER PROPERTY OWNERS TO DEMOLISH
DETERIORATED OR CONDEMNED RESIDENTIAL PROPERTIES; MAKING AN
APPROPRIATION.

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

SECTION 1.
[
NEW MATERIAL
] DEMOLITION FUND.--

A. The "demolition fund" is created in the state
treasury. The fund consists of appropriations, gifts, grants,
donations and income from investment of the fund. Money in the
fund at the end of a fiscal year shall not revert to any other
fund. The local government division of the department of
finance and administration shall administer the fund, and money
in the fund is appropriated to the local government division to
provide grants to counties and municipalities to:

(1) demolish condemned residential properties;
and

(2) provide reimbursement for demolition costs
incurred by a residential property owner pursuant to a county
or municipal demolition program.

B. Disbursements from the fund shall be made by
warrant of the secretary of finance and administration pursuant
to vouchers signed by the secretary of finance and
administration or the secretary's authorized representative.

C. By December 1, 2026, the local government
division of the department of finance and administration shall
promulgate rules for the administration of the demolition fund,
including procedures for providing grants to counties and
municipalities to:

(1) demolish condemned residential properties;
and

(2) create a program that allows a property
owner to apply for reimbursement for costs to demolish the
applicant's residential property; provided that the property
is:

(a) in a slum or blighted area subject
to a metropolitan redevelopment project; or

(b) significantly deteriorated and the
owner includes documentation in the application for
reimbursement showing that the costs of repairs significantly
outweigh the costs of demolition.

SECTION 2.
APPROPRIATION.--Five million dollars
($5,000,000) is appropriated from the general fund to the
demolition fund for expenditure in fiscal year 2027 and
subsequent fiscal years to provide grants to counties and
municipalities to demolish condemned residential properties in
accordance with rules promulgated by the local government
division of the department of finance and administration
pursuant to Section 1 of this act. Any unexpended balance
remaining at the end of a fiscal year shall not revert to the
general fund.

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