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HOUSE BILL 122
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Kathleen Cates
AN ACT
RELATING TO PROPERTY; REQUIRING THAT AT LEAST FIFTY-FIVE
PERCENT OF UNITS OF CONDOMINIUMS CREATED ON OR AFTER JULY 1,
2025 ARE OWNER-OCCUPIED; REQUIRING THAT AT LEAST THIRTY-FIVE
PERCENT OF THE MEMBERS OF THE GOVERNING BODY OF ASSOCIATIONS
THAT MANAGE A CONDOMINIUM CREATED ON OR AFTER JULY 1, 2025 OWN
AND OCCUPY UNITS WITHIN THAT CONDOMINIUM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 47-7B-1 NMSA 1978 (being Laws 1982,
Chapter 27, Section 13) is amended to read:
"47-7B-1. CREATION OF CONDOMINIUM.--
A. A condominium may be created pursuant to the
Condominium Act only by recording a declaration executed in the
same manner as a deed. The declaration shall be recorded in
each county in which any portion of the condominium is located
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and shall be indexed in the grantee's index in the name of the
condominium and the association and in the grantor's index in
the name of each person executing the declaration.
B. A declaration or an amendment to a declaration
adding units to a condominium shall not be recorded unless all
structural components and mechanical systems of all buildings
containing or comprising any units created are substantially
completed in accordance with the plans, as evidenced by a
recorded certificate of completion executed by a licensed
engineer, an architect or the appropriate building inspection
authority or by the declarant. This section does not apply to
a conversion building restricted in its entirety to uses other
than for residential purposes.
C. A condominium that is newly constructed,
consists of twelve or more units or that receives a subsidy,
money, land, tax abatement, deferred tax or any other thing of
value from a federal, state or local government source for the
purpose of renovations or any other purpose shall:
(1) for the purpose of furthering access to
federal homeowner loans that have an owner-occupancy
requirement, require that at least fifty-five percent of the
units of a condominium created by a declaration recorded on or
after July 1, 2025 be owner-occupied; and
(2) require that at least thirty-five percent
of the members of the governing body of an association that
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manages a condominium created on or after July 1, 2025 own and
occupy units within that condominium. "
SECTION 2. Section 47-7B-5 NMSA 1978 (being Laws 1982,
Chapter 27, Section 17, as amended) is amended to read:
"47-7B-5. CONTENTS OF DECLARATION.--
A. The declaration for a condominium shall contain:
(1) the names of the condominium, which shall
include the word "condominium" or be followed by the words "a
condominium", and the association;
(2) the name of every county in which any part
of the condominium is situated;
(3) a description, legally sufficient for
conveyance, of the real estate included in the condominium;
(4) a statement of the maximum number of units
that the declarant reserves the right to create;
(5) a description of the boundaries of each
unit created by the declaration, including the unit's
identifying number;
(6) a description of any limited common
elements, other than those specified in Subsections B, D and E
of Section 47-7B-2 NMSA 1978, as provided in Section 47-7B-9
NMSA 1978;
(7) a description of any real estate, except
real estate subject to development rights, that may be
allocated subsequently as limited common elements, other than
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limited common elements specified in Subsections B, D and E of
Section 47-7B-2 NMSA 1978, together with a statement that they
may be so allocated;
(8) a description of any development rights
and other special declarant rights reserved by the declarant,
together with a legally sufficient description of the real
estate to which each of those rights applies, and a time limit
within which each of those rights must be exercised;
(9) if any development right may be exercised
with respect to different parcels of real estate at different
times, a statement to that effect together with either a
statement fixing the boundaries of those portions and
regulating the order in which those portions may be subjected
to the exercise of each development right, or a statement that
no assurances are made in those regards, and a statement as to
whether, if any development right is exercised in any portion
of the real estate subject to that development right, that
development right must be exercised in all or in any other
portion of the remainder of that real estate;
(10) any other conditions or limitations under
which the rights described in Paragraph (8) of this subsection
shall be exercised or they shall lapse;
(11) an allocation to each unit of the
allocated interests in the manner described in Section 47-7B-7
NMSA 1978;
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(12) any restrictions on use, occupancy and
alienation of the units;
(13) if required by local ordinance, written
confirmation from the local zoning official that the
condominium complies with the zoning density requirements of
local zoning and subdivision ordinances or regulations as
required in Section 47-7A-6 NMSA 1978; [and ]
(14) on or after July 1, 2025, a statement
that reads: "At least fifty-five percent of the total units of
this condominium shall be owner-occupied. At least thirty-five
percent of the members of the governing body of the association
that manages this condominium shall own and occupy a unit
within this condominium."; and
[(14)] (15) all matters required by Sections
47-7B-6 through 47-7B-9, 47-7B-15, 47-7B-16 and Subsection D of
Section 47-7C-3 NMSA 1978.
B. The declaration may contain any other matters
that the declarant deems appropriate."
SECTION 3. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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