NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Maes

 

DATE TYPED:

03/10/03

 

HB

 

 

SHORT TITLE:

Ordinances Raising Housing Construction Costs

 

SB

474

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Regulation and Licensing Department

Attorney General’s Office

 

SUMMARY

 

            Synopsis of Bill

 

Senate Bill 474 amends Section 3-17-1 NMSA 1978 to make it unlawful for the governing body of a county or a municipality to pass any ordinance that unreasonably increases the cost of low-income or affordable housing. 

 

            Significant Issues

 

A number of municipal and county ordinances could conceivably be construed as leading to increases in the cost of affordable or low-income housing.  The bill provides that governing bodies “shall not adopt an ordinance that will unreasonably increase” the cost.  Even with this qualifier, it may be difficult to identify an offending ordinance.  The Attorney General’s office believes the “unreasonably increase” standard may be void as unconstitutionally vague.

 

The Attorney General’s office also points out that there may be enforcement issues because individuals who qualify for low-income and affordable housing have less access to legal resources.  The bill does not provide any details on how the provisions of the bill would be enforced.

 

LP/prr