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

SPONSOR HGUAC

DATE TYPED 2/021/05 HB 496/HGUACS

SHORT TITLE Housing Authority Joint Jurisdiction

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB311, SB637.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

New Mexico Municipal League (NMML)

SUMMARY

Synopsis

Under current statute, a regional housing authority may operate only in an area where a city or

county has not already established its own authority or housing agency, unless the governing

body of the city or county passes a resolution consenting for the regional authority to operate

within its boundaries. The House Government and Urban Affairs Committee substitute for

HB496 would allow a regional housing authority to operate within a city or county that has es-

tablished a housing authority or housing agency such that each agency would exercise its juris-

diction over a common area pursuant to a resolution enacted by the municipality or county.

Significant Issues

Original version of HB496. House Bill 496, in its original form, would have allowed a regional

authority to operate in the common area alongside the municipal or county housing agency or,

pursuant to a joint powers agreement, to agree to exercise joint jurisdiction. According to DFA,

the original HB496 would have allowed the regional housing authority to supersede the authority

House Bill 496/HGUACS -- Page 2

of its local counterpart. DFA indicated the local housing authorities opposed that version of the

bill unless the intention of the regional housing authority was to bring in additional funding or

programs. DFA noted that the original version of the bill would have allowed newly created or

currently existing regional housing authorities to operate in a local government housing jurisdic-

tion without prior approval, thereby duplicating effort and further straining minimal local re-

sources (i.e. HOME funding, tax credits, CDBG, etc.). Moreover, regional housing law allows

for the use of eminent domain and confers some very broad reaching powers that a regional

housing authority could exercise without permission from the local housing authority or from the

local government.

The New Mexico Municipal League questioned the necessity of the Regional Housing Author-

ity's expansion of its authority in a municipality that already has an housing authority. Current

statute provides a mechanism for the two authorities to jointly operate if the municipal authority

wishes. This bill would eliminate that authority and allow the regional authority to operate with-

out the municipalities’ approval.

HGUAC substitute. The substitute appears to be designed to address the concerns with regard

to the original bill raised above. In particular, it would allow the regional authority and the mu-

nicipal or county authority to each exercise its jurisdiction over the common area pursuant to a

resolution enacted by the municipality or county. In its current form, HB496 does not contain a

provision creating an opportunity for a city or county to pass a subsequent resolution withdraw-

ing the local body’s consent and terminating the joint exercise of jurisdiction in a common area.

DH/sb:yr