SB 283 — PUBLIC PEACE, HEALTH, SAFETY & WELFARE

or u [ (2) provide for qualifying multifamily units .233996.1 - 6 - S__C/SB 283 in a housing shortage area designated as a metropolitan redevelopment area;

"rehabilitation" or "conservation" means the restoration and renewal of a slum, [or[or] ] blighted area or housing shortage area or portion thereof in accordance with an approved plan by use of powers granted by the Metropolitan e t 17 Redevelopment Code;

w l n d 18 [J.] K.

"metropolitan redevelopment area" means a = = 19 slum area, [or[or] ] a blighted area or a housing shortage area, or ea l i a e 17r 20 a combination thereof, that the local government so finds and ea et nm dm 1821 declares and designates as appropriate for a metropolitan =d =r le ]22 19 redevelopment project, including a project for the development ac le rs ik 2023 of qualifying multifamily properties and qualifying multifamily t e a tn b 24 units;

mu m[ 21 e d [K.] L.

"metropolitan redevelopment plan" means a r.233996.2 e- 227 c- eSTBTC/SB r283 c 23 plan [as it exists from time to timetime] ] for one or more e a n b 24 metropolitan redevelopment areas or for a metropolitan u [ redevelopment project, which plan shall:

.233996.1 - 7 - S__C/SB 283 (1) seek to eliminate the problems created by a slum area, [or[or] ] a blighted area or a housing shortage area;

and the plan's relationship to definite local objectives respecting land uses, improved traffic patterns and controls, public transportation, public e t 17 utilities, recreational and community facilities, housing w l n d 18 facilities, commercial activities or enterprises, industrial or = = 19 manufacturing use and other public improvements;

ea l i a e 17r 20 [L.] M.

"real property" includes all lands, ea et nm dm 1821 including improvements and fixtures thereon, and property of =d =r le ]22 19 any nature appurtenant thereto or used in connection therewith ac le rs ik 2023 and every estate, interest, right and use, legal or equitable, t e a tn b 24 therein, including terms for years and liens by way of mu m[ 21 e d judgment, mortgage or otherwise;

r.233996.2 e- 228 c- eSTBTC/SB r283 c 23 [M.] N.

"bonds" means any bonds, including e a n b 24 refunding bonds, notes, interim certificates, certification of u [ indebtedness, debentures, metropolitan redevelopment bonds or .233996.1 - 8 - S__C/SB 283 other securities evidencing an obligation and issued under the provisions of the Metropolitan Redevelopment Code or other obligations;

"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 e t 17 representative capacity;

w l n d 18 [P.] Q.

"area of operation" means an area within a = = 19 local government's jurisdiction, except that it shall not ea l i a e 17r 20 include an area that lies within the jurisdiction of another ea et nm dm 1821 local government unless an ordinance has been adopted by the =d =r le ]22 19 other local government declaring a need therefor;

ac le rs ik 2023 [Q.] R.

"board" or "commission" means a board, t e a tn b 24 commission, department, division, office, body or other unit of mu m[ 21 e d a local government designated by the local government to r.233996.2 e- 229 c- eSTBTC/SB r283 c 23 perform functions authorized by the Metropolitan Redevelopment e a n b 24 Code as directed by the local government;

u [ [R.] S.

"public officer" means any person who is in .233996.1 - 9 - S__C/SB 283 charge of any department or branch of government of the local government;

"qualifying multifamily property" means a residential multifamily development within fivewhich: or more dwelling units available for lease for periods of one month or more;

provided(1) thatfive aor minimummore of fifteen percent of all of the dwelling units within the development are qualifyingavailable multifamilyfor unitslease andfor theperiods average area median income of residentsone occupyingmonth qualifyingor multifamilymore; units is not more than eighty-five percent of the area median income;

V.(2) a minimum of twenty percent of all of the dwelling units within the development are qualifying multifamily units;

"qualifying(3) multifamilythe unit"average meansarea amedian residential dwelling unit that is available to lease or that is leased to a household whose income isof between seventy percent e et 17 andresidents ninety-fiveoccupying percentqualifying ofmultifamily theunits applicableis areanot medianmore incomew el e n d 18 andthan leasedeighty orpercent availableof to lease to such a household at the = = l ] 19 rental amounts as shown on the current income and rent limits a l r i 20 tables for the applicable area publishedmedian byincome; the United States t e a t department of housing and urban development;

and = = 19 (4) qualifying multifamily units are leased or a l i a e r 20 available to lease at an average rent amount equal to or less a t m m 21 ethan the rent amount for eighty percent of the area median d W.r e 22 income for one and one-half persons, taking into account unit c e s k 23 types, as shown on the current income and rent limit tables for e a n b 24 the applicable area published by the United States department u [ of housing and urban development;

"area.233996.2 median income" means the median income for r e 22 c e r c 23 the immediate geographic area in which the household is e a n b 24 located, adjusted for family size, as determined by the United u [ States department of housing and urban development." .233996.1 - 10 - S__C/SBSTBTC/SB 283 SECTIONV. 3.

"qualifying multifamily unit" means a residential dwelling unit that is available to lease or that is leased to a household whose income is not more than ninety-five percent of the applicable area median income;

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.

one or more slum areas, [or[or] ] blighted areas or housing shortage areas exist in the local government's e t 17 jurisdiction;

and w l n d 18 B.

the rehabilitation, conservation, slum = = 19 clearance, redevelopment, [or[or] ] development, construction or a l i a e r 20 designation of qualifying multifamily units or a combination a t m m 21 thereof, of and in such area is necessary in the interest of d r e 22 the public health, safety, morals or welfare of the residents c e s k 23 of the local government's jurisdiction." e a n b 24 SECTION 4.

Section 3-60A-8 NMSA 1978 (being Laws 1979, eu e[ 17 Chapter 391, Section 8, as amended) is amended to read:

e.233996.2 e- n11 d- 18STBTC/SB 283 "3-60A-8.

DESIGNATION OF A METROPOLITAN REDEVELOPMENT = = l ] 19 AREA.-- a l r i 20 A.

A local government shall not prepare a t e a t metropolitan redevelopment plan for an area unless the local m m 21 e d government has, by resolution, determined the area to be a slum r e 22 c e r c 23 area, [or] a blighted area or a housing shortage area, or a e a n b 24 combination thereof, and designated the area as appropriate for u [ a metropolitan redevelopment project, which resolution may be .233996.1 - 11 - S__C/SB 283 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.

e t 17 B.

A local government may declare any area or areas w l n d 18 in its jurisdiction as a housing shortage area and metropolitan = = 19 redevelopment area applicable only to qualifying multifamily a l i a e r 20 properties.

A local government may identify a housing shortage a t m m 21 area by map, narrative description, reference to specific d r e 22 zoning categories or other method that reasonably identifies c e s k 23 the designated area.

e a n b 24 [B.] C.

Notice shall be published at least twice, eu e[ 17 and the last publication shall be not less than twenty days e.233996.2 e- n12 d- 18STBTC/SB 283 before the hearing.

The owner of any real property affected by = = l ] 19 the resolution has the right to file in the district court of a l r i 20 the county within which the local government is located, within t e a t twenty days after the adoption of the resolution, an action to m m 21 e d set aside the determination made by the local government.

r e 22 c e r c 23 [C.] D.

A local government shall not acquire real e a n b 24 property for a metropolitan redevelopment project unless the u [ local government has approved a metropolitan redevelopment plan .233996.1 - 12 - S__C/SB 283 relating to the metropolitan redevelopment area in which the real property is located." SECTION 5.

When a local government has complied with the provisions of the Redevelopment Law concerning public hearing e t 17 and designation of an area as a metropolitan redevelopment w l n d 18 area, it may prepare or cause to be prepared a metropolitan = = 19 redevelopment plan;

however, prior to final consideration of a l i a e r 20 the plan by the local government, the plan shall be the subject a t m m 21 of at least one public hearing held by the local government or d r e 22 the local government's planning commission, at which time c e s k 23 comments from the public as a whole can be gathered and e a n b 24 considered by the local government in its preparation of the eu e[ 17 final plan.

The local government may hold a public hearing for e.233996.2 e- n13 d- 18STBTC/SB 283 purposes of approval of the proposed plan, as provided in = = l ] 19 Subsection B of this section, only after the hearing required a l r i 20 by this subsection.

t e a t B.

The local government shall hold a public hearing m m 21 e d on a metropolitan redevelopment plan or substantial r e 22 c e r c 23 modification of an approved plan after public notice by e a n b 24 publication in a newspaper having a general circulation in the u [ area of operation of the local government.

The notice shall .233996.1 - 13 - S__C/SB 283 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.

The mailing shall be to the owner's address as shown on the records of the county e t 17 treasurer.

If the notice by first class mail to the owner is w l n d 18 returned undelivered, the local government shall attempt to = = 19 discover the owner's most recent address and shall remail the a l i a e r 20 notice by certified mail, return receipt requested, to the a t m m 21 address.

d r e 22 C.

Following the public hearing, the local c e s k 23 government may approve a metropolitan redevelopment plan if it e a n b 24 finds that:

eu e[ 17 (1) the proposed activities will aid in the e.233996.2 e- n14 d- 18STBTC/SB 283 elimination or prevention of slum or blight or the conditions = = l ] 19 that lead to the development of slum or blight;

or the proposed a l r i 20 plan will aid in the construction, rehabilitation or t e a t designation of qualifying multifamily properties or qualifying m m 21 e d multifamily units within a housing shortage area;

r e 22 c e r c 23 (2) a feasible method is included in the plan e a n b 24 to provide individuals and families who occupy residential u [ dwellings in the metropolitan redevelopment area and who may be .233996.1 - 14 - S__C/SB 283 displaced by the proposed activities with decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such individuals and families;

(a) rehabilitation or redevelopment of e t 17 the area by private enterprise or persons and the objectives of w l n d 18 the plan justify the proposed activities as public purposes and = = 19 needs;

or a l i a e r 20 (b) construction or designation of a t m m 21 qualifying multifamily properties within the housing shortage d r e 22 area by private enterprise or persons and the objectives of the c e s k 23 plan justify the proposed activities as public purposes and e a n b 24 needs.

eu e[ 17 D.

A metropolitan redevelopment plan may be e.233996.2 e- n15 d- 18STBTC/SB 283 modified at any time;

however, if the plan is modified after = = l ] 19 the lease or sale by the local government of real property in a l r i 20 the project area, the modification shall be subject to any t e a t rights at law or in equity a lessee or purchaser or the m m 21 e d lessee's or purchaser's successors in interest may be entitled r e 22 c e r c 23 to assert.

Any proposed modification that will substantially e a n b 24 change the plan as previously approved by the local government u [ shall be subject to the requirements of this section, including .233996.1 - 15 - S__C/SB 283 the requirement of a public hearing, before it may be approved." SECTION 6.

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 e t 17 Redevelopment Code, including the following powers:

w l n d 18 A.

to undertake and carry out metropolitan = = 19 redevelopment projects within its area of operation, including a l i a e r 20 clearance and redevelopment, rehabilitation, conservation and a t m m 21 development activities and programs;

to make, enter into and d r e 22 execute contracts and other agreements and instruments c e s k 23 necessary or convenient to the exercise of its powers under the e a n b 24 Redevelopment Law;

and to disseminate information regarding eu e[ 17 slum clearance, prevention of blight and the metropolitan e.233996.2 e- n16 d- 18STBTC/SB 283 redevelopment projects and areas;

= = l ] 19 B.

to provide, arrange or contract for the furnishing a l r i 20 or repair by a public or private person or agency for services, t e a t privileges, works, streets, roads, public utilities, public m m 21 e d buildings or other facilities for or in connection with a r e 22 c e r c 23 metropolitan redevelopment project;

to, within its area of e a n b 24 operation, install, acquire, construct, reconstruct, remodel, u [ rehabilitate, maintain and operate streets, utilities, parks, .233996.1 - 16 - S__C/SB 283 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 e t 17 determination of prevailing salaries or wages or compliance w l n d 18 with federal and state labor standards, compliance with federal = = 19 property acquisition policy and the provision of relocation a l i a e r 20 assistance in accordance with federal law in the undertaking or a t m m 21 carrying out of a metropolitan redevelopment project;

and to d r e 22 include in a contract let in connection with the project c e s k 23 provisions to fulfill these conditions as it may deem e a n b 24 reasonable and appropriate;

provided, however, that all eu e[ 17 purchases of personal property shall be in accordance with the e.233996.2 e- n17 d- 18STBTC/SB 283 Procurement Code;

= = l ] 19 C.

within its area of operation, to inspect any a l r i 20 building or property in a metropolitan redevelopment area in t e a t order to make surveys, appraisals, soundings or test borings m m 21 e d and to obtain an order for this purpose from a court of r e 22 c e r c 23 competent jurisdiction in the event inspection is denied by the e a n b 24 property owner or occupant;

to acquire, by purchase, lease, u [ option, gift, grant, bequest, devise or otherwise, any real .233996.1 - 17 - S__C/SB 283 property or personal property for its administrative or project purposes, together with any improvements thereon;

and to enter into contracts e t 17 necessary to effectuate the purposes of the Metropolitan w l n d 18 Redevelopment Code;

= = 19 D.

to invest metropolitan redevelopment project funds a l i a e r 20 held in reserve, sinking funds or other project funds that are a t m m 21 not required for immediate disbursement in property or d r e 22 securities in which local governments may legally invest funds c e s k 23 subject to their control;

to redeem bonds as have been issued e a n b 24 pursuant to the Metropolitan Redevelopment Code at the eu e[ 17 redemption price established in the bonds or to purchase the e.233996.2 e- n18 d- 18STBTC/SB 283 bonds at less than redemption price.

Bonds so redeemed or = = l ] 19 purchased shall be canceled;

a l r i 20 E.

to borrow or lend money subject to those t e a t procedures and limitations as may be provided in the m m 21 e d constitution of New Mexico or statutes and to apply for and r e 22 c e r c 23 accept advances, loans, grants, contributions and other forms e a n b 24 of financial assistance from the federal government, the state, u [ the county or other public body or from sources, public or .233996.1 - 18 - S__C/SB 283 private, for the purposes of the Metropolitan Redevelopment Code;

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 e t 17 law that the local government may deem reasonable or w l n d 18 appropriate and that are not inconsistent with the purposes of = = 19 the Metropolitan Redevelopment Code;

a l i a e r 20 F.

within its area of operation, to make plans a t m m 21 necessary for the carrying out of the purposes of the d r e 22 Metropolitan Redevelopment Code and to contract with any c e s k 23 person, public or private, in making and carrying out such e a n b 24 plans and to adopt or approve, modify and amend the plans.

The eu e[ 17 plans may include without limitation:

e.233996.2 e- n19 d- 18STBTC/SB 283 (1) a general plan for redevelopment of the area = = l ] 19 as a whole;

a l r i 20 (2) redevelopment plans for specific areas;

t e a t (3) plans for programs of voluntary or assisted m m 21 e d repair and rehabilitation of buildings and improvements;

r e 22 c e r c 23 (4) plans for the enforcement of state and local e a n b 24 laws, codes and regulations relating to the use of land and the u [ use and occupancy of buildings and improvements and to the .233996.1 - 19 - S__C/SB 283 compulsory repair, rehabilitation, demolition or removal of buildings and improvements;

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, e t 17 accept and use grants of funds from the federal government for w l n d 18 those purposes;

= = 19 H.

to prepare plans for the relocation of families a l i a e r 20 displaced from a metropolitan redevelopment area to the extent a t m m 21 essential for acquiring possession of and clearing the area or d r e 22 its parts or permit the carrying out of the metropolitan c e s k 23 redevelopment project;

e a n b 24 I.

to appropriate under existing authority the funds eu e[ 17 and make expenditures necessary to carry out the purposes of e.233996.2 e- n20 d- 18STBTC/SB 283 the Metropolitan Redevelopment Code and under existing = = l ] 19 authority to levy taxes and assessments for such purposes;

to a l r i 20 close, vacate, plan or replan streets, roads, sidewalks, ways t e a t or other places;

in accordance with applicable law or m m 21 e d ordinances, to plan or replan, zone or rezone any part within r e 22 c e r c 23 the jurisdiction of the local government or make exceptions e a n b 24 from building regulations;

and to enter into agreements with a u [ metropolitan redevelopment agency vested with metropolitan .233996.1 - 20 - S__C/SB 283 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;

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[and] ]e t 17 blighted areas and housing shortage areas and preventing the w l n d 18 causes of those areas within the jurisdiction of the local = = 19 government may be most effectively promoted and achieved and to a l i a e r 20 establish any new office of the local government or to a t m m 21 reorganize existing offices as necessary;

d r e 22 K.

to acquire real property that is appropriate for c e s k 23 the preservation or restoration of historic sites;

the e a n b 24 beautification of urban land;

the conservation of open spaces, eu e[ 17 natural resources and scenic areas;

or the provision of e.233996.2 e- n21 d- 18STBTC/SB 283 recreational opportunities;

or that is to be used for public = = l ] 19 purposes;

a l r i 20 L.

to engage in the following activities as part of a t e a t metropolitan redevelopment project:

m m 21 e d (1) acquisition, construction, reconstruction or r e 22 c e r c 23 installation of public works, facilities and site or other e a n b 24 improvements, including neighborhood facilities, senior citizen u [ centers, historic properties, utilities, streets, street .233996.1 - 21 - S__C/SB 283 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 e t 17 and accessibility of elderly and disabled persons;

w l n d 18 (3) provision of public services in the = = 19 metropolitan redevelopment area that are not otherwise a l i a e r 20 available in the area, including the provisions of public a t m m 21 services directed to the employment, economic development, d r e 22 crime prevention, child care, health, drug abuse, welfare or c e s k 23 recreation needs of the people who reside in the metropolitan e a n b 24 redevelopment area;

eu e[ 17 (4) payment of the nonfederal share of any e.233996.2 e- n22 d- 18STBTC/SB 283 federal grant-in-aid program to the local government that will = = l ] 19 be a part of a metropolitan redevelopment project;

a l r i 20 (5) if federal funds are used in the project, to t e a t provide for payment of relocation costs and assistance to m m 21 e d individuals, families, businesses, organizations and farm r e 22 c e r c 23 operations displaced as a direct result of a metropolitan e a n b 24 redevelopment project in accordance with applicable law u [ governing such payment;

.233996.1 - 22 - S__C/SB 283 (6) payment of reasonable administrative costs and carrying charges related to the planning and execution of plans and projects;

(8) issuance of bonds, grants or loans as e t 17 authorized by the Metropolitan Redevelopment Code in accordance w l n d 18 with the requirements of that code;

and = = 19 (9) grants to nonprofit corporations, local a l i a e r 20 development corporations or entities organized under Section a t m m 21 301 (d) of the federal Small Business Investment Act of 1958 d r e 22 for the purposes of carrying out the provisions of the c e s k 23 Metropolitan Redevelopment Code;

e a n b 24 M.

in a metropolitan redevelopment project or eu e[ 17 rehabilitation or conservation undertaking or activity, to e.233996.2 e- n23 d- 18STBTC/SB 283 exercise the following powers in one or more metropolitan = = l ] 19 redevelopment areas to include the increase in qualifying a l r i 20 multifamily properties and the elimination and prevention of t e a t the development or spread of slums or blight and may involve m m 21 e d slum clearance, development and redevelopment in that area or r e 22 c e r c 23 rehabilitation or conservation in that area or any combination e a n b 24 or part of those areas in accordance with a metropolitan u [ redevelopment plan and for undertakings or activities of a .233996.1 - 23 - S__C/SB 283 local government in a metropolitan redevelopment area to increase qualifying multifamily properties or to eliminate the conditions that caused an area to be [so[so] ] designated as a slum or blighted area and may include the following:

(2) clearing the land, grading the land and e t 17 replatting the land in accordance with the metropolitan w l n d 18 redevelopment plan;

installation, construction or = = 19 reconstruction of roads, streets, gutters, sidewalks, storm a l i a e r 20 drainage facilities, water lines or water supply installations, a t m m 21 sewer lines and sewage disposal installations, steam, gas and d r e 22 electric lines and installations, airport facilities and c e s k 23 construction of any other needed public facilities or buildings e a n b 24 whether on or off the site if deemed necessary by the local eu e[ 17 government to prepare the land in the metropolitan e.233996.2 e- n24 d- 18STBTC/SB 283 redevelopment area for residential, commercial, industrial and = = l ] 19 public use in accordance with the metropolitan redevelopment a l r i 20 plan;

and t e a t (3) making the land available for development by m m 21 e d private enterprise or public agencies, including sale, initial r e 22 c e r c 23 leasing, leasing or retention by the local government itself, e a n b 24 at its fair market value for uses in accordance with the u [ metropolitan redevelopment plan for the area;

.233996.1 - 24 - S__C/SB 283 N.

e t 17 (3) installation, construction, reconstruction, w l n d 18 maintenance and operation of streets, utilities, storm drainage = = 19 facilities, curbs and gutters, parks, playgrounds, single- a l i a e r 20 family or multifamily dwelling units, buildings, public a t m m 21 buildings, including parking facilities, transportation d r e 22 centers, safety buildings and other improvements, necessary for c e s k 23 carrying out in the area the provisions of an approved plan for e a n b 24 the area;

and eu e[ 17 (4) making the real property available for e.233996.2 e- n25 d- 18STBTC/SB 283 development or redevelopment by private enterprise or public = = l ] 19 agencies, including sale, leasing or retention by the local a l r i 20 government itself, at its fair value for uses in accordance t e a t with the metropolitan redevelopment area plan;

and m m 21 e d O.

to engage in rehabilitation or conservation that r e 22 c e r c 23 includes the restoration and renewal of a qualifying e a n b 24 multifamily property or slum or blighted area or portion u [ thereof in accordance with any approved plan, by:

.233996.1 - 25 - S__C/SB 283 (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 e t 17 remove or prevent the spread of blight or deterioration or to w l n d 18 provide land for needed public facilities;

= = 19 (3) installation, construction or reconstruction a l i a e r 20 of streets, utilities, parks, playgrounds and other a t m m 21 improvements necessary for carrying out in the area the d r e 22 provisions of the Metropolitan Redevelopment Code;

c e s k 23 (4) the disposition of any property acquired in e a n b 24 the area, including sale, leasing or retention by the local eu e[ 17 government itself, for uses in accordance with an approved e.233996.2 e- n26 d- 18STBTC/SB 283 plan;

= = l ] 19 (5) acquisition of real property in the area a l r i 20 that, under a plan, is to be constructedconstructed, , repaired or t e a t rehabilitated;

m m 21 e d (6) constructconstruct, , repair or rehabilitation of r e 22 c e r c 23 structures within the area;

e a n b 24 (7) power to resell developeddeveloped, , repaired or u [ rehabilitated property;

.233996.1 - 26 - S__C/SB 283 (8) acquisition, without regard to any requirement that the area be a housing shortage areaarea, , 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 e t 17 property or the elimination of such blighting influences;

and[and] w l n d 18 (9) making loans or grants or authorizing the = = 19 use of the proceeds of bonds issued pursuant to the a l i a e r 20 Metropolitan Redevelopment Code for the purpose of a t m m 21 constructing, repairing, remodeling or modifying a building or d r e 22 buildings located in the metropolitan redevelopment area.

Such c e s k 23 rehabilitation or conservation with use of funds expended by e a n b 24 authority of the Metropolitan Redevelopment Code or by eu e[ 17 metropolitan revenue bonds authorized by that code shall be e.233996.2 e- n27 d- 18STBTC/SB 283 authorized after approval by the local government and after it = = l ] 19 has been determined that the expenditure is in accordance with a l r i 20 the metropolitan redevelopment plan for that area."area; t e a t SECTION 7.

Sectionand 3-60A-13.1(10) NMSAproviding 1978for (beingperiodic Lawsinspection 1985,of mproperties mconstructed 21or erehabilitated dpursuant Chapterto 225,a Sectionmetropolitan 2,redevelopment asplan amended)to isensure amendedcompliance towith read:local rules governing housing and safety standards." SECTION 7.

rSection e3-60A-13.1 22NMSA c1978 e(being rLaws c1985, 23Chapter "3-60A-13.1.225, Section 2, as amended) is amended to read:

PAYMENTS"3-60A-13.1. IN LIEU OF PROPERTY TAXES AND e a n b 24 ASSESSMENTS.-- u [ A.

IfPAYMENTS interestsIN inLIEU projectOF propertyPROPERTY areTAXES exemptAND fromASSESSMENTS.-- .233996.1A. - 27 - S__C/SB 283 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)If generalinterests propertyin taxesproject thatproperty wouldare haveexempt beenfrom eproperty etaxation 17and imposedassessments under Subsection B of Section 7-37-73-60A-13 NMSA 1978 hador itSection e7-36-3.1 NMSA 1978, then during the period extending from the date of acquisition of the property by the local government through December 31 of the e t 17 year in which the seventh anniversary of that acquisition date w l n d 18 notoccurs, beenexcept exemptfor andqualifying hadmultifamily itproperty, beenfor valuedwhich at= = 19 the valuationperiod formay =be =extended up to the fourteenth anniversary if a l ]i 19a propertye taxationr purposes20 thatset existedforth in the yearapplicable immediatelymetropolitan redevelopment plan a lt rm im 2021 precedingadopted by the yearlocal government, any lessee of acquisitionthe byproject d r e 22 property or owner of a substantial beneficial interest in the localc government;e s k 23 project property, in whose ownership the property would not be e a n b 24 exempt from property taxation except for the exemption granted u [ under Section 7-36-3.1 NMSA 1978, shall pay to the county .233996.2 - 28 - STBTC/SB 283 treasurer annually, at the same time property tax payments are due under the Property Tax Code, an amount equal to the sum of:

t(1) egeneral aproperty ttaxes (2) amounts that would have been imposed under m m 21 e d Subsection CB of Section 7-37-7 NMSA 1978 on the project r e 22 c e r c 23 property had it not been exempt and had it been valued at the e a n b 24 valuation for property taxation purposes that existed in the u [ year immediately preceding the year of acquisition by the local .233996.1 - 28 - S__C/SB 283 government;

and(2) (3) amounts that would have been imposed asunder benefitSubsection assessmentsC 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 governmentgovernment; 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.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 e t 17 taxation purposes that existed in the year immediately w l n d 18 preceding the year of acquisition by the local government if = = 19 those benefit assessments are authorized by law and are a l i a e r 20 expressed in mills per dollar or dollars per thousand dollars a t m m 21 of net taxable value of property, assessed value of property or d r e 22 similar terms.

Thec countye treasurers shallk distribute23 allB. 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.

The county treasurer shall distribute all amounts e a n b 24 collected under Subsection A of this section in the same manner u [ as the amounts would have been distributed if they had been .233996.2 - 29 - STBTC/SB 283 collected as taxes or assessments on nonexempt property.

The provisions of this section shall apply only to project property acquired by a local government under the e e 17 provisions of the Metropolitan Redevelopment Code on or after e e n d 18 January 1, 1986." = = l ] 19 SECTION 8.

Section 3-60A-15 NMSA 1978 (being Laws 1979, a l r i 20 Chapter 391, Section 15, as amended) is amended to read:

t e a t "3-60A-15.

EXERCISE OF POWERS IN CARRYING OUT PROJECTS.-- m m 21 e d A.

A local government may directly exercise its r e 22 c e r c 23 metropolitan redevelopment project powers or it may, by e a n b 24 ordinance if it determines such action to be in the public u [ interest, elect to delegate the exercise of such powers to the .233996.1 - 29 - S__C/SB 283 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 e t 17 authority instead of the local government.

w l n d 18 B.

As used in this section, the term "redevelopment = = 19 project powers" includes any rights, powers, functions and a l i a e r 20 duties of a local government authorized by the Redevelopment a t m m 21 Law except the following, which are reserved to the local d r e 22 government, the power to:

c e s k 23 (1) declare an area to be a housing shortage e a n b 24 area, a slum or a blighted area, or combination thereof, and to u [ designate the area as appropriate for a redevelopment project;

.233996.2 - 30 - STBTC/SB 283 (2) approve or amend redevelopment plans;

e e 17 (4) make findings of necessity prior to e e n d 18 preparation of a metropolitan redevelopment plan as provided in = = l ] 19 the Redevelopment Law and the findings and determinations a l r i 20 required prior to approval of a metropolitan redevelopment plan t e a t or project as provided in the Redevelopment Law;

m m 21 e d (5) issue general obligation bonds and revenue r e 22 c e r c 23 bonds as authorized by law;

e a n b 24 (6) issue redevelopment bonds;

and u [ (7) appropriate funds and levy taxes and .233996.1 - 30 - S__C/SB 283 assessments." SECTION 9.

METROPOLITAN REDEVELOPMENT PROPERTY--TAX e t 17 STATUS OF LESSEE'S INTERESTS.-- w l n d 18 A.

Property interests of a lessee in project property = = 19 held under a lease with respect to a project authorized by the a l i a e r 20 Metropolitan Redevelopment Code and acquired or held by a a t m m 21 municipality prior to January 1, 1986 under the provisions of d r e 22 that code are exempt from property taxation for as long as c e s k 23 there is an outstanding bonded indebtedness, but in any event e a n b 24 for a period not to exceed ten years from the date of execution u [ of the first lease of the project by the municipality.

.233996.2 - 31 - STBTC/SB 283 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 e t 17 December 31 of not later than the fourteenth anniversary of the w l n d 18 year in which the acquisition of the qualifying multifamily = = 19 property occurs." a l i a e r 20 SECTION 10.

A new section of the Metropolitan a t m m 21 Redevelopment Code, Section 3-60A-10.1 NMSA 1978, is enacted to d r e 22 read:

c e s k 23 "3-60A-10.1.

[NEW MATERIAL] DUTIES OF LOCAL GOVERNMENTS e a n b 24 AND LESSEES OR OWNERS OF QUALIFYING MULTIFAMILY PROPERTY.-- u [ A.

A local government shall require:

.233996.2 - 32 - STBTC/SB 283 (1) qualifying multifamily units in qualifying multifamily properties to meet the definition of qualifying multifamily unit for fourteen years;

(2) that at least twenty percent of all units within a qualifying multifamily property be qualifying multifamily units for the full period determined by the local government pursuant to this section;

(3) that a lessee or an owner of a substantial beneficial interest in the project property shall accept housing choice vouchers administered by the United States department of housing and urban development from residents renting a dwelling unit in a qualifying multifamily property;

(4) a lessee of a qualifying multifamily property or an owner of a substantial beneficial interest in the property to pay to the local government an annual administrative fee of at least one hundred dollars ($100) per e t 17 unit, as determined by the local government, for all w l n d 18 residential dwelling units within the qualifying multifamily = = 19 property;

and a l i a e r 20 (5) a lessee, at the lessee's expense, to a t m m 21 provide to the applicable local government an audit report, d r e 22 conducted by an independent auditor or compliance expert with c e s k 23 an established history of providing similar audits on housing e a n b 24 compliance matters, as determined by the local government, u [ confirming that the property was a qualifying multifamily .233996.2 - 33 - STBTC/SB 283 property and that the designated units were qualifying multifamily units as defined in this section, confirming that the rents charged for each qualifying multifamily unit were at or below the amounts set forth in the United States department of housing and urban development's income and rent tables and confirming such other matters as set forth in the lease between the local government and the lessee.

PropertyFor interestseach ofqualifying amultifamily lesseeproperty ofthat, in the property tax year prior to becoming exempt from property taxation and assessments pursuant to Section 3-60A-13 or 7-36-3.1 NMSA 1978, had an owneraverage ofrent aamount substantialfor beneficialall interestresidential dwelling units in projectthe property acquiredthat orwas heldless bythan athe municipalityrent onamount orfor afterhouseholds Januaryof 1,one 1986and withone-half respectpersons eper ebedroom 17earning toless athan projecteighty authorizedpercent of the area median income, taking into account unit types, as shown on rent and income tables published by the MetropolitanUnited RedevelopmentStates Codedepartment eof e t 17 housing and urban development, the lessee or owner of a w l n d 18 aresubstantial exemptbeneficial frominterest in that multifamily property taxation= for= a19 periodshall extendingmake fromrepairs, =renovations =or improvements within three a l ]i 19a e r 20 property tax years after the dateproperty ofbecomes acquisitionexempt of theat projecta propertyt m m 21 least ten thousand dollars ($10,000) multiplied by the anumber ld r ie 2022 municipalityof throughqualifying multifamily units in the property existing as of c e s k 23 December 31 of the tax year inprior whichto the tproperty becoming e a tn seventhb anniversary24 ofexempt. that acquisition date occurs.

mEach myear, 21the eaggregate dcost C.shall be adjusted by the u [ consumer price index as of January 1 of the preceding year.

Property.233996.2 interests of a lessee of or an owner of a r e 22 c e r c 23 substantial beneficial interest in a qualifying multifamily e a n b 24 property acquired or held by a municipality or county on or u [ after May 20, 2026 with respect to a project to develop .233996.1 - 3134 - S__C/SBSTBTC/SB 283 qualifyingC. 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 - 10 12 14 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .233996.1

A local government shall provide a report on the effectiveness of each qualifying multifamily property developed pursuant to a metropolitan redevelopment plan to the legislative finance committee by July 1, 2033." SECTION 11.

A new section of the Metropolitan Redevelopment Code is enacted to read:

"[NEW MATERIAL] INVESTIGATION OF METROPOLITAN REDEVELOPMENT CODE VIOLATIONS--ENFORCEMENT.-- A.

A person who knowingly provides any false or materially misleading information required by the provisions of the Metropolitan Redevelopment Code, or materially fails to comply with the provisions of any agreement between that person and a public body after a notice and cure period set forth in such agreement, shall be deemed to not be in compliance with, and be in default under, any lease or agreement exempting property from property taxation and assessments pursuant to e t 17 Section 3-60A-13 or 7-36-3.1 NMSA 1978, and the public body w l n d 18 shall be permitted to immediately terminate such lease and = = 19 exemption from property taxation.

a l i a e r 20 B.

The attorney general shall investigate an alleged a t m m 21 violation of the Metropolitan Redevelopment Code reported by a d r e 22 public body.

c e s k 23 C.

If the attorney general has reasonable belief that e a n b 24 a person has violated a provision of the Metropolitan u [ Redevelopment Code and that instituting a proceeding against .233996.2 - 35 - STBTC/SB 283 that person would be in the public interest, the attorney general may bring a civil action on behalf of the state alleging a violation of that code.

The action may be brought in the district court of the county in which the person alleged to have violated that code resides or in which the person's principal place of business is located.

The attorney general shall not be required to post bond when seeking a temporary or permanent injunction in the civil action.

D.

The attorney general may, in addition to or as an alternative to pursuing a civil action as provided in this section, pursue criminal charges against a person for an alleged violation of the Metropolitan Redevelopment Code under the applicable provisions of the Criminal Code.

Venue for any criminal action shall be in the judicial district where the violation occurred.

E.

In a civil action brought pursuant to this section e t 17 for an alleged violation of the Metropolitan Redevelopment w l n d 18 Code, if a court finds that a person willfully committed an act = = 19 in violation of that code, the attorney general may seek to a l i a e r 20 recover a civil penalty not exceeding ten thousand dollars a t m m 21 ($10,000) per violation, in addition to any equitable relief d r e 22 imposed by the court.

c e s k 23 F.

A person who violates the provisions of the e a n b 24 Metropolitan Redevelopment Code is ineligible for exemptions u [ from property taxation for five years after the violation." .233996.2 - 36 -