Senate Bill text for SB0370

SENATE BILL 370

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Mark Boitano

AN ACT

RELATING TO DEVELOPMENT; REPEALING SECTIONS OF THE URBAN DEVELOPMENT LAW; REPEALING THE COMMUNITY DEVELOPMENT LAW; LIMITING THE ABILITY TO CONDEMN PROPERTY FOR ECONOMIC DEVELOPMENT IN THE METROPOLITAN REDEVELOPMENT CODE; AMENDING AND REPEALING SECTIONS OF THE NMSA 1978.

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

Section 1. Section 3-46-43 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-47-19, as amended) is amended to read:

"3-46-43. ORDINANCES RELATING TO REPAIR, CLOSING AND DEMOLITION OF DWELLINGS UNFIT FOR HUMAN HABITATION--COMPLAINT--SERVICE OF COMPLAINT--APPEAL.--

A. Whenever [any] a municipality finds that there exist dwellings that are unfit for human habitation due to dilapidation; defects increasing the hazards of fire, accidents or other calamities; lack of ventilation, light or sanitary facilities; or [due to] other conditions, including those set forth in Subsection C of this section, rendering the dwellings unsafe and unsanitary or dangerous or detrimental to the health, safety or morals or otherwise inimical to the welfare of the residents of the municipality, power is conferred upon the municipality to require or cause the repair, closing or demolition or removal of the [dwelling] dwellings in the manner provided in this section. [A] "Dwelling" means [any] a building or structure or part thereof used and occupied for human habitation or intended to be so used and includes any appurtenances usually enjoyed in the dwelling.

B. Upon the adoption of an ordinance finding that dwelling conditions of the character described in Subsection A of this section exist, the governing body of the municipality [is authorized to] may adopt ordinances relating to the dwellings within the municipality that are unfit for human habitation. The ordinances shall include the following provisions:

(1) a public officer shall be designated or appointed to exercise the powers prescribed by the ordinances;

(2) whenever it appears to the public officer, on [his] the officer's own motion, that [any] a dwelling is unfit for human habitation, [he] the officer shall, if [his] the officer's preliminary investigation discloses a basis for the charges, issue and cause to be served on the owner, every mortgagee of record and all parties in interest in the dwelling, including persons in possession, a complaint stating the charges in that respect. The complaint shall contain a notice that a hearing will be held before the public officer or [his] the officer's designated agent at a place fixed in the complaint not less than ten days nor more than thirty days after the serving of the complaint; that the owner, mortgagee and parties in interest shall be given the right to file an answer to the complaint and to appear in person or otherwise and give testimony at the place and the time fixed in the complaint; and that the rules of evidence prevailing in courts of law or equity shall not be controlling in hearings before the public officer;

(3) if after the notice and hearing the public officer determines that the dwelling under consideration is unfit for human habitation, [he] the officer shall state in writing [his] findings of fact in support of that determination and shall issue and cause to be served upon the owner an order in writing that advises the owner of [his] the owner's rights under Subsection E of this section and that:

(a) if the repair, alteration or improvement of the dwelling can be made at a reasonable cost in relation to the value of the dwelling, the ordinance of the municipality shall fix a certain percentage of the cost as being reasonable for that purpose and require the owner, within the time specified in the order, to repair, alter or improve the dwelling to render it fit for human habitation or to vacate and close the dwelling as a human habitation; or

(b) if the repair, alteration or improvement of the dwelling cannot be made at a reasonable cost in relation to the value of the dwelling, the ordinance of the municipality shall fix a certain percentage of the cost as being reasonable for the purpose, and require the owner, within the time specified in the order, to remove or demolish the dwelling;

(4) if the owner fails to comply with an order to repair, alter or improve or to vacate and close the dwelling, the public officer may cause the dwelling to be repaired, altered or improved or to be vacated and closed;

(5) if the owner fails to comply with an order to remove or demolish the dwelling, the public officer may cause the dwelling to be removed or demolished; and

(6) the amount of the cost of the repairs, alterations or improvements or the vacating and closing or the removal or demolition by the public officer shall be a lien against the real property upon which the cost was incurred. If the dwelling is removed or demolished by the public officer, [he] the officer shall sell the materials of the dwelling and shall credit the proceeds of the sale against the cost of the removal or demolition. Any balance remaining shall be deposited in the district court by the public officer and shall be secured in the manner as may be directed by the court and shall be disbursed by the court to the persons found to be entitled to the balance by final order or decree of the court.

C. An ordinance adopted by a municipality pursuant to this section shall provide that the public officer may determine a dwelling is unfit for human habitation if [he] the officer finds that conditions exist in the dwelling that are dangerous or injurious to the health, safety or morals of the occupants of the dwelling, the occupants of neighboring dwellings or other residents of the municipality or that have a blighting influence on properties in the area. The conditions may include the following without limitations: defects increasing the hazards of fire, accident or other calamities; lack of adequate ventilation, light or sanitary facilities; dilapidation; disrepair; structural defects; uncleanliness; overcrowding; inadequate ingress and egress; inadequate drainage; or any violation of health, fire, building or zoning regulations or any other laws or regulations relating to the use of land and the use and occupancy of buildings and improvements. The ordinance may provide additional standards to guide the public officer or [his] the officer's agents or employees in determining the fitness of a dwelling for human habitation.

D. Complaints or orders issued by a public officer pursuant to an ordinance adopted under the provisions of [the Urban Development Law] this section shall be served upon persons either personally or by registered mail. If the whereabouts of the persons are unknown and cannot be ascertained by the public officer in the exercise of reasonable diligence and the public officer makes an affidavit to that effect, [then] the serving of the complaint or order upon the persons may be made by publishing the complaint or order once each week for two consecutive weeks in a newspaper printed and published in the municipality or, in the absence of a newspaper, in one printed and published in the county and circulating in the municipality in which the dwellings are located. A copy of the complaint or order shall be posted in a conspicuous place on the premises affected by the complaint or order. A copy of the complaint or order shall also be filed with the clerk of the county in which the dwelling is located. Filing of the complaint or order shall have the same force and effect as other lis pendens notices provided by law.

E. [Any] A person affected by an order issued by the public officer may file an appeal pursuant to the provisions of Section 39-3-1.1 NMSA 1978.

F. An ordinance adopted by the governing body of the municipality may authorize the public officer to exercise powers as may be necessary or convenient to carry out and effectuate the purposes and provisions of [the Urban Development Law] this section, including the following powers [in addition to others granted in the Urban Development Law]:

(1) to investigate the dwelling conditions in the municipality in order to determine which dwellings are unfit for human habitation;

(2) to administer oaths and affirmations, examine witnesses and receive evidence;

(3) to enter upon premises for the purpose of making examinations, provided that the entries shall be made in a manner as to cause the least possible inconvenience to the persons in possession, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted;

(4) to appoint and fix the duties of any officers, agents and employees as [he] the officer deems necessary to carry out the purposes of the ordinances; and

(5) to delegate any [of his] functions and powers under the ordinance to officers, agents and employees [he] that the public officer may designate.

G. The governing body of a municipality adopting an ordinance under this section shall, as soon as possible thereafter, prepare an estimate of the annual expenses or costs to provide the equipment, personnel and supplies necessary for periodic examinations and investigations of the dwellings in the municipality for the purpose of determining the fitness of the dwellings for human habitation and for the enforcement and administration of its ordinance or ordinances adopted under this section.

H. Nothing in this section shall be construed to abrogate or impair the powers of the courts or of a department of a municipality to enforce any provisions of its charter or its ordinances or regulations or to prevent or punish violations thereof. The powers conferred by this section shall be in addition and supplemental to the powers conferred by any other law.

I. Nothing in this section shall be construed to impair or limit in any way the power of the municipality to define and declare nuisances and to cause their removal or abatement by summary proceedings or otherwise."

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

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

A. It is [hereby] found and declared that there [exists] exist in municipalities of the state slum areas and blighted areas [which] 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 municipalities 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 and municipality, lower property values, less gross receipts tax revenues for the state and municipalities and reduces the use of buildings, residential dwellings and other facilities in the area] that the prevention and elimination of slum areas and blighted areas [and the prevention and elimination of conditions which impair the sound and orderly development of municipalities] is a matter of state policy and concern in order that the state and its municipalities shall not continue to be endangered by these areas [which contribute little to the tax income of the state and its municipalities] 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 or portions thereof may require land acquisition and clearance by the municipality, 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 [hereinbefore] enumerated in Subsection A of this section may be eliminated, remedied or prevented by those efforts; and to the extent feasible, salvageable slum and blighted areas should be conserved and rehabilitated through voluntary action, 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 and the power of eminent domain exercised. 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 [hereby] 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.

D. The legislature finds that the problems of the large metropolitan areas are unique in this state because of the size and magnitude of the problems when such large numbers of people are affected. The legislature further finds and declares that the strategies and methods for solving these problems in the large metropolitan areas differ from those in the smaller cities and towns and villages of the state, and it is necessary to authorize those home rule metropolitan areas additional powers and flexibility because of the nature and size of their problems and because the governments of such metropolitan areas have sufficient staff to meet and deal with those problems. Further, these authorizations are merely explanations of the powers of home rule communities in these metropolitan areas that can be exercised under home rule authority notwithstanding any limitations contained in the Metropolitan Redevelopment Code."

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

"3-60A-3. LEGISLATIVE INTENT.--

A. It is the intent of the legislature by the passage of the Metropolitan Redevelopment Code to authorize municipalities to acquire, own, lease and improve [and dispose of] properties in a metropolitan redevelopment area [to the end that such municipalities may be able to promote industry and develop trade or other economic activity by inducing profit or nonprofit corporations, federal governmental offices, hospitals and manufacturing, industrial, commercial or business enterprises to locate, expand or remain in such area, to mitigate the serious threat of extensive unemployment in a metropolitan redevelopment area and to secure and maintain a balanced and stable economy in an area declared to be a slum or blighted area].

B. It is the further intent of the legislature to authorize municipalities to acquire, own, lease and improve [and dispose of] properties so that adequate medical care, residential housing and facilities for the disposal of sewage and solid waste may be provided; [and industrial, manufacturing, commercial or business activities may be begun or expanded in these areas; furnishing] water, energy and gas may be provided; more adequate facilities for sports events and activities and recreation activities, conventions and trade shows may be provided; and more parking facilities or storage or training facilities may be provided; [and more adequate research, product-testing and administrative facilities may be provided] all of which promote the public health, welfare, safety, convenience and prosperity.

C. It is, therefore, the intention of the legislature to vest municipalities with all powers that may be necessary to enable them to accomplish such purposes, which powers shall in all respects be exercised for the benefit of the inhabitants of this state and municipalities of the state for the promotion of their health, safety, welfare, convenience and prosperity.

D. It is not intended by the Metropolitan Redevelopment Code to authorize any municipality to operate any manufacturing, industrial, commercial or business enterprise or any research, product-testing or administrative facilities of such enterprise. Nor is it the intent of that code to prohibit the operation by a municipality of residential housing facilities, health care facilities, sewage or solid waste disposal facilities or the furnishing of water, sports or recreation facilities, convention or trade show facilities, airports, public transportation facilities or operations, parking facilities or storage or training facilities by any municipality."

Section 4. 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 municipality, board, commission, authority, district or [any] other political subdivision or public body of the state;

B. "local governing body" means the city council, [or] city commission [of a city, the] or board of trustees of a [town or village] municipality; the council of an incorporated county; or the board of county commissioners of an H class county;

C. "mayor" means the mayor or the [chairman] chair of the [city commission] local governing body or other officer or body having the duties customarily imposed on the head of a municipality;

D. "municipality" means [any] an incorporated city, town or village, whether incorporated under general act, special act or special charter, an incorporated county or an H class county;

E. "clerk" means the clerk or other official of [the] a municipality who is the chief custodian of the official records of the municipality;

F. "federal government" includes the United States of America or [any] an agency or instrumentality, corporate or otherwise, of the United States;

[G. "state" means the state of New Mexico;

H.] G. "slum area" means an area within the area of operation in which there are numerous residential or nonresidential buildings, improvements and structures [whether residential or nonresidential, which, by reason of its dilapidation, deterioration, age, obsolescence] 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 [the existence of] there exists 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;

[I.] H. "blighted area" means an area within the area of operation other than a slum area that [because of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary 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 or 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] substantially impairs or arrests the sound growth and economic health and well-being of a municipality or locale within a municipality 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 because of the presence of a substantial number of deteriorated or deteriorating structures; insanitary or unsafe conditions; deterioration of site or other improvements; substantial diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; 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;

[J.] I. "metropolitan redevelopment project" or "project" means an activity, undertaking or series of activities or undertakings designed to eliminate slums or blighted areas or to address areas with substantial diverse ownership in areas designated as metropolitan redevelopment areas and [that] the activity or undertaking conforms to an approved plan for the area for slum clearance and redevelopment, rehabilitation and conservation;

[K.] J. "slum clearance and redevelopment" means the use of those powers authorized by the Metropolitan Redevelopment Code [for the purpose of eliminating] to eliminate slum areas and [undertaking] 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;

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

[M.] L. "metropolitan redevelopment area" means a slum area or a blighted area or a combination thereof that the local governing body so finds and declares and designates as appropriate for a metropolitan redevelopment project;

[N.] M. "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 blighted area;

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

(3) be sufficient to indicate the proposed activities to be carried out in the area, including [but not limited to] 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;

[O.] N. "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;

[P.] O. "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;

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

[R.] Q. "person" means [any] 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;

[S.] R. "area of operation" means the area within the corporate limits of the municipality and the area outside of the corporate limits but within five miles of such limits or otherwise on municipally owned property wherever located, except that it shall not include [any] an area that lies within the territorial boundaries of another municipality unless an ordinance has been adopted by the governing body of the other municipality declaring a need therefor;

[T.] S. "board" or "commission" means a board, commission, department, division, office, body or other unit of the municipality designated by the local governing body to perform functions authorized by the Metropolitan Redevelopment Code as directed by the local governing body; [and]

[U.] T. "public officer" means any person who is in charge of any department or branch of government of the municipality; and

U. "substantial diverse ownership" means two-thirds or more of the lots in a metropolitan redevelopment area are each owned by a separate and distinct person."

Section 5. Section 3-60A-8 NMSA 1978 (being Laws 1979, Chapter 391, Section 8) is amended to read:

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

A. A municipality shall not prepare a metropolitan redevelopment plan for an area unless the governing body has, by resolution, determined the area to be a slum area or a blighted area or a combination thereof and designated the area as appropriate for a metropolitan redevelopment project [which]; provided that when the resolution determines an area to be blighted by reason of substantial diverse ownership, it must be adopted by three-fourths or more of the governing body. The resolution may be adopted only after the governing body [shall have] has caused to be published in a newspaper of general circulation within the area of operation of the municipality a notice [which shall contain] that contains a general description of the area and the date, time and place where the governing body 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. [Such] Notice shall be published at least [twice] four times, and the last publication shall be not less than [twenty] thirty days before the hearing. The owner of any real property affected by the resolution [shall have] has the right to file in the district court of the county within which the municipality is located, within [twenty] thirty days after the adoption of the resolution, an action to set aside the determination made by the governing body of the municipality.

C. A municipality shall not acquire real property for a metropolitan redevelopment project unless the local governing body has approved a metropolitan redevelopment plan relating to the metropolitan redevelopment area in which the real property is located."

Section 6. Section 3-60A-9 NMSA 1978 (being Laws 1979, Chapter 391, Section 9) is amended to read:

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

A. When a municipality 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 governing body, the plan shall be the subject of at least one public hearing held by the mayor or [his] the mayor's designee or the municipal planning commission, at which time comments from the public as a whole can be gathered and considered by the municipality in its preparation of the final plan. The local governing body 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 governing body shall hold a public hearing on a metropolitan redevelopment plan or substantial modification of an approved plan after public notice [thereof by publication] is published once a week for four weeks in a newspaper having a general circulation in the area of operation of the municipality. The notice shall describe the time, date, place and purpose of the hearing, which shall be not less than thirty days after the last notice, 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 municipality 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 governing body 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 [which] that lead to the development of slum or blight;

(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; and

(3) the plan conforms to the general plan for the municipality as a whole [and

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

D. A metropolitan redevelopment plan may be modified at any time; however, if the plan is modified after the lease or sale by the municipality 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 [his] a lessee's or purchaser's successors in interest may be entitled to assert. Any proposed modification [which] that will substantially change the plan as previously approved by the local governing body shall be subject to the requirements of this section, including the requirement of a public hearing, before it may be approved."

Section 7. Section 3-60A-10 NMSA 1978 (being Laws 1979, Chapter 391, Section 10) is amended to read:

"3-60A-10. POWERS OF MUNICIPALITY.--[Every] A municipality shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of the Metropolitan Redevelopment Code, including [but not necessarily limited to] 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 [any] 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 [but not limited to] parking facilities, transportation centers, public safety buildings and other public improvements or facilities or improvements for public purposes, as may be required by the municipality, the state or a political subdivision of the state; to agree to [any] conditions that it may deem reasonable and appropriate [which] 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 [any] a contract let in connection with the project provisions to fulfill [any of] these conditions as it may deem reasonable and appropriate; provided, however, that all purchases of personal property shall be in accordance with the [Public Purchases Act] Procurement Code;

C. within its area of operation, to inspect any building or property in [any] 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, eminent domain 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 [any] real or personal property or operations of the municipality against [any] risks or hazards, including the power to pay premiums on [any such] that insurance; and to enter into [any] contracts necessary to effectuate the purposes of the Metropolitan Redevelopment Code;

D. to invest [any] metropolitan redevelopment project funds held in reserve, sinking funds or other project funds [which] that are not required for immediate disbursement in property or securities in which municipalities 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 [therein] in the bonds or to purchase the bonds at less than redemption price. [All] 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 the Municipal Code and to apply for and accept advances, loans, grants, contributions and [any] other [form] forms of financial assistance from the federal government, the state, the county or other public body or from [any] 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 [therewith] with that law. A municipality may include in [any] a contract for financial assistance with the federal government for a metropolitan redevelopment project conditions imposed pursuant to federal law [which] that the municipality may deem reasonable or appropriate and [which] that are not inconsistent with the purposes of the Metropolitan Redevelopment Code;

F. within its area of operation, to make [all] 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 metropolitan 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;

[The municipality is authorized] G. to develop, test and report methods and techniques and carry out demonstrations and other activities for the prevention and elimination of slums and urban blight and to pay for, accept and [utilize] use grants of funds from the federal government for [such] those purposes;

[G.] 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;

[H.] 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 of the municipality 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 [such] the municipality pursuant to [any of] the powers granted by the Redevelopment Law;

[I.] 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 municipality in order that the objective of remedying slum areas and blighted areas and preventing the causes of [same] those areas within the municipality may be most effectively promoted and achieved and to establish any new office [or offices] of the municipality or to reorganize existing offices as necessary;

[J.] K. to acquire real property [in addition to power elsewhere conferred herein, which] 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; the provision of recreational opportunities; or is to be used for public purposes;

[K.] L. to engage in [any or all of] 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 [but not limited to] 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 [which] that serve designated areas;

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

(3) provision of public services in the metropolitan redevelopment area [which] that are not otherwise available in the area, including [but not limited to] 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 municipality [which] 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;

[L.] M. provided that [all] payments made by the municipality or metropolitan redevelopment agency under the terms of a contract for reconstruction or rehabilitation of private property shall be made from a special fund created for that purpose and shall not be paid directly to [such] the property owner but shall instead be paid to the contractor by the municipality or agency from such fund upon proper authorization of the property owner and notification that the terms of the contract have been fulfilled. However, [all such] those rehabilitation contracts shall be between the property owner and the contractor after a sealed bidding procedure and award of contract approved by the municipality has taken place;

[M.] N. the municipality is empowered in a metropolitan redevelopment project, rehabilitation or conservation undertaking or activity to exercise the following powers in one or more metropolitan redevelopment areas to include the elimination and prevention of the development or spread of slums or blight and may involve slum clearance and redevelopment in [any such] that area or rehabilitation or conservation in [any such] that area or any combination or part [thereof] of those areas in accordance with a metropolitan redevelopment area plan and for undertakings or activities of a municipality in [any] a metropolitan redevelopment area to eliminate the conditions [which] that caused an area to be so designated [such an area] and may include [any or all of] 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 governing body 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 municipality itself, at its fair market value for uses in accordance with the metropolitan redevelopment plan for the area; provided that no more than one-third of the land shall be made available for development by private enterprise;

[N.] O. the municipality is empowered in a metropolitan redevelopment area to undertake slum clearance and redevelopment [which] that includes:

(1) acquisition of a 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- or multi-family dwelling units, buildings, public buildings, including [but not limited to] 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 municipality itself, [as] at its fair value for uses in accordance with the metropolitan redevelopment area plan; provided that no more than one-third of the land shall be made available for development or redevelopment by private enterprise; and

[O.] P. the municipality is empowered to engage in rehabilitation or conservation [which] that includes the restoration and renewal of a 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 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] insanitary 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 such an area, including sale, leasing or retention by the municipality itself, for uses in accordance with such an approved plan; provided that no more than one-third of any property acquired shall be disposed of to private enterprise;

(5) acquisition of real property in the area [which] that, under a metropolitan redevelopment plan, is to be repaired or rehabilitated;

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

(7) power to resell repaired or rehabilitated property;

(8) acquisition, without regard to [any] a requirement that the area be a slum or 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 [which] that have a blighting influence on the surrounding area and over which air-rights sites are to be developed for 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 repairing, remodeling, modifying or otherwise reconstructing 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 only after approval by the local governing body and after it has been determined that such expenditure is in accordance with the metropolitan redevelopment plan for that area."

Section 8. Section 3-60A-11 NMSA 1978 (being Laws 1979, Chapter 391, Section 11, as amended) is amended to read:

"3-60A-11. EMINENT DOMAIN.--

A. A municipality shall have the right to acquire by condemnation [any] an interest in real property, including a fee simple title [thereto], which it may deem necessary for or in connection with a metropolitan redevelopment project under the Redevelopment Law. A municipality may exercise the power of eminent domain in the manner provided by the Eminent Domain Code or, when found appropriate by the governing body, the special alternative procedure for condemnation of property as provided by Sections 42-2-1 through 42-2-24 NMSA 1978. Property already devoted to a public use may be acquired in like manner. However, no real property belonging to the state or any political subdivision thereof may be acquired without its consent unless in a manner authorized by law.

B. When the condemnation is for a metropolitan redevelopment project based upon substantial diverse ownership, a municipality shall pay to those entitled to receive just compensation for the property condemned one hundred fifteen percent of the appraised fair market value of the property."

Section 9. Section 3-60A-12 NMSA 1978 (being Laws 1979, Chapter 391, Section 12) is amended to read:

"3-60A-12. DISPOSAL OF PROPERTY.--

A. A municipality may sell, lease or otherwise transfer no more than one-third of real property or any interest [therein] in real property acquired by it in a metropolitan redevelopment area and may enter into contracts with respect [thereto] to the real property for residential, commercial, industrial or other uses or for public use or may retain such property or interest for public use in accordance with the metropolitan redevelopment plan, subject to any covenants, conditions and restrictions, including covenants running with the land and including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, as it may deem to be in the public interest or necessary to carry out the purposes of the metropolitan redevelopment plan. The purchasers or lessees and their successors and assigns shall be obligated to devote the real property only to the uses specified in the metropolitan redevelopment plan for a period of years as set out in the sale or lease agreement and may be obligated to comply with other requirements [which] that the municipality may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on real property required by the metropolitan redevelopment plan. The real property or interest shall be sold, leased, otherwise transferred or retained at not less than its fair value for uses in accordance with the Redevelopment Law as determined by the governing body of the municipality or by the metropolitan redevelopment agency, if so authorized. In determining the fair value of real property for uses in accordance with the metropolitan redevelopment plan, a municipality shall take into account and give consideration to the uses provided in the plan, the restrictions upon and the covenants, conditions and obligations assumed by the purchaser or lessee or by the municipality retaining the property and the objectives of the plan for the prevention of and recurrence of slum or blighted areas. The municipality in any instrument of conveyance to a private purchaser or lessee may provide that the purchaser or lessee shall be without power to sell, lease or otherwise transfer the real property without the prior written consent of the municipality until [he] the purchaser or lessee has completed the construction of any and all improvements [which he] that the purchaser or lessee has been obligated [himself] to construct [thereon] on the real property. Real property acquired by a municipality [which] that, in accordance with the provisions of the metropolitan redevelopment plan, is to be transferred shall be transferred consistent with the carrying out of the provisions of the plan. The inclusion in any contract or conveyance to a purchaser or lessee of covenants, restrictions or conditions, including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, shall not prevent the filing of the contract or conveyance in the land records of the county in a manner as to afford actual or constructive notice thereof.

B. A municipality may dispose of no more than one-third of the real property in a metropolitan redevelopment area to private persons and only in accordance with the procedures set out in this subsection. The municipality shall, prior to entering into any agreement to convey title or an interest in real property, publish a public notice once each week for at least two consecutive weeks of the date, time and place it will receive proposals for the purchase, lease or rental, for development or redevelopment purposes, of the real property or interest [therein] in the real property it intends to dispose of. The public notice shall contain sufficient information to describe the location of the real property, the type of development sought or land use requirement and the selection criteria the municipality will follow during review of proposals and shall state that details may be obtained at the office designated in the notice. The municipality shall consider all proposals submitted in accordance with the public notice and shall only accept proposals it deems in the public interest and meeting the objectives of the metropolitan redevelopment plan after considering the type of development, redevelopment or use proposed and the financial ability of the persons making [such] the proposals to carry them out.

C. If after following the procedures set out in Subsection B of this section a municipality receives no proposals or determines the ones received are not in accordance with the call for proposals or do not meet the objectives of the Metropolitan Redevelopment Code, the municipality may reject any proposals received and then dispose of [such] the real property through reasonable negotiating procedures; provided, however, that negotiated sales, leases or transfers must be reported to the local governing body and approved by that body before [such] the sale, lease or transfer may take effect.

D. A municipality may operate and maintain real property acquired in a metropolitan redevelopment area pending the disposition of the property for development or redevelopment without regard to the provisions of Subsection A of this section for any uses and purposes deemed desirable even though not in conformity with the Redevelopment Law."

Section 10. Section 3-60A-27 NMSA 1978 (being Laws 1979, Chapter 391, Section 27) is amended to read:

"3-60A-27. DEFINITIONS.--As used in the Redevelopment Bonding Law:

A. "revenue bonds" means bonds, notes or other securities evidencing an obligation and issued pursuant to the powers granted by the Metropolitan Redevelopment Code by a municipality for purposes authorized by that code;

B. "finance" or "financing" means the issuing of bonds by a municipality and the use of substantially all of the proceeds [therefrom] from the bonds pursuant to a financing agreement with the user to pay or to reimburse the user or its designee for the costs of the acquisition or construction of a project, whether these costs are incurred by the municipality, the user or a designee of the user; provided that title to or in the project may at all times remain in the user, and, in such case, the bonds of the municipality may be secured by mortgage or other lien upon the project or upon any other property of the user or both granted by the user or by a pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the user as the governing body deems advisable, but no municipality shall be authorized hereby to pledge any of its property or to otherwise secure the payment of any bonds with its property, except that the municipality may pledge the property of the project or revenues [therefrom] from the project;

C. "financing agreement" includes a lease, sublease, [installment purchase agreement] rental agreement [option to purchase or any other agreement] or any combination thereof entered into in connection with the financing of a project pursuant to the Metropolitan Redevelopment Code;

D. "mortgage" means a deed of trust or any other security device for both real and personal property;

E. "ordinance" means an ordinance of a municipality financing or refinancing an activity involving or affecting improvement or improvements;

F. "project" means an activity [which] that can be funded or refinanced by revenue bonds issued pursuant to the Redevelopment Bonding Law for the purpose of acquiring, improving, rehabilitating, conserving, financing, or refinancing, erecting or building new or improved facilities, on land, building or buildings or any other improvement or improvements, site or any other activity authorized by the Metropolitan Redevelopment Code for projects or activities located within the boundaries of a metropolitan redevelopment area. The revenue bonds may be used for the projects hereafter enumerated for any purpose or use in such project, except that no funds shall be used for inventories, raw materials or other working capital, whether or not in existence, suitable or used for or in connection with any of the following projects:

(1) manufacturing, industrial, commercial or business enterprises, including [without limitation] enterprises engaged in storing, warehousing, distributing, selling or transporting any products of industry, commerce, manufacturing or business or any utility plant;

(2) hospital, health-care or nursing-home facilities, including [without limitation] clinics and out-patient facilities and facilities for the training of hospital, health care or nursing home personnel;

(3) residential facilities intended for use as the place of residence by the owners or intended occupants;

(4) sewage or solid waste disposal facilities;

(5) facilities for the furnishing of water, if available, on reasonable demand to members of the general public;

(6) facilities for the furnishing of energy or gas;

(7) sports and recreational facilities;

(8) convention or trade show facilities; and

(9) research, product testing and administrative facilities;

G. "state" means the state of New Mexico;

H. "user" means one or more persons who enter into a financing agreement with a municipality relating to a project, except that the user need not be the person actually occupying, operating or maintaining the project; and

I. "utility plant" means any facility used for or in connection with the generation, production, transmission or distribution of electricity; the production, manufacture, storage or distribution of gas; the transportation or conveyance of gas, oil or other fluid substance by pipeline; or the diverting, developing, pumping, impounding, distributing or furnishing of water."

Section 11. Section 3-60A-28 NMSA 1978 (being Laws 1979, Chapter 391, Section 28) is amended to read:

"3-60A-28. GENERAL POWERS.--[A.] In addition to any other powers, each municipality has the following powers:

[(1)] A. to acquire, whether by construction, purchase, gift, devise, lease or sublease, to improve and equip and to finance [sell] or lease [or otherwise dispose of] one or more projects or part thereof. If a municipality issues revenue bonds as provided by the Metropolitan Redevelopment Code to finance or acquire projects, such projects shall be located within the municipality and within a metropolitan redevelopment area;

[(2)] B. to enter into financing agreements with others for the purpose of providing revenues to pay the bonds authorized by the Redevelopment Bonding Law; to lease [sell or otherwise dispose of] any or all of its projects to others for such revenues and upon such terms and conditions as the local governing body may deem advisable; and to grant options to renew any lease or other agreement with respect to the project and to grant options to buy any project at such price as the local governing body deems desirable;

[(3)] C. to issue revenue bonds for the purpose of defraying the cost of financing, acquiring, improving and equipping any project, including the payment of principal and interest on [such] the bonds for a period not to exceed three years and all other incidental expenses incurred in issuing [such] the bonds; and

[(4)] D. to secure payment of [such] revenue bonds as provided in the Redevelopment Bonding Law."

Section 12. REPEAL.--Sections 3-46-1 through 3-46-42, 3-46-44, 3-46-45, 3-60-1 through 3-60-37 and 3-60A-6 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-47-1, Laws 1971, Chapter 200, Section 2, Laws 1969, Chapter 221, Sections 1 through 20, Laws 1971, Chapter 200, Sections 5 through 7, Laws 1965, Chapter 300, Sections 14-47-3 through 14-47-9, Laws 1969, Chapter 279, Section 1, Laws 1965, Chapter 300, Sections 14-47-10 through 14-47-18, Laws 1971, Chapter 200, Section 22, Laws 1975, Chapter 333, Section 2, Laws 1975, Chapter 341, Sections 1 through 37 and Laws 1979, Chapter 391, Section 6, as amended) are repealed.

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