Owner-occupied Condos & Associations
The bill seeks to shape housing practices significantly by promoting homeownership in condominium developments, which may provide benefits related to community stability and engagement. By ensuring a majority of owner-occupied units, it is anticipated that the dynamics within these communities will change, leading to a potential decrease in absentee ownership and increasing the accountability of homeowners. Moreover, this initiative is likely aligned with federal homeowner loan programs that preferentially support owner-occupied residences, thus enhancing access to financing for prospective homeowners.
House Bill 24, introduced by Kathleen Cates, focuses on the regulation of condominiums in New Mexico. The bill mandates that starting July 1, 2024, at least fifty-five percent of the units in any newly created condominium must be occupied by their owners. Additionally, it stipulates that at least thirty-five percent of the members of the governing body overseeing the condominium association must also own and occupy units within the condominium. This legislation aims to encourage owner occupancy and ensure that condominium associations are managed by individuals who are part of the residential community.
While the bill has its supporters who argue for increased owner occupancy, there may be concern among real estate developers and the rental market that such regulations could limit the flexibility of condominium uses. Developers might argue that these requirements could make it more difficult to build and sell new condominiums, potentially resulting in a tighter housing market or higher prices as supply diminishes. Furthermore, the bill could be seen as limiting the options for those who prefer renting or investing in properties for the purpose of rental income.