Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Lopez/Sedillo Lopez/Pope/Pinto
LAST UPDATED
ORIGINAL DATE 2/3/2025
SHORT TITLE Rent Control & Certain Entities
BILL
NUMBER Senate Bill 216
ANALYST Ortega
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected No fiscal impact No fiscal impact No fiscal impact
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis was Solicited but Not Received From
Department of Finance and Administration (DFA)
New Mexico Mortgage Finance Authority (MFA)
New Mexico Counties
New Mexico Municipal League (NMML)
SUMMARY
Synopsis of Senate Bill 216
Senate Bill 216 (SB216) would allow certain local governments to enact rent control measures
on privately owned property by repealing Section 47-8A-1 NMSA 1978, which prohibits
political subdivisions and home rule municipalities from such measures. This bill does not
contain an effective date and, as a result, would go into effect 90 days after the Legislature
adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
The bill is unlikely to have a fiscal impact on a state agency, although it could impact local
governments. If enacted at the local level, rent control could lead to administrative costs for
cities and counties to enforce regulations, oversee compliance, and resolve disputes. Conversely,
local governments may see cost savings if rent control helps stabilize housing costs and reduces
demand for rental assistance programs. SB216 does not mandate rent control, so fiscal impacts
will vary based on local policy decisions.
Senate Bill 216 – Page 2
SIGNIFICANT ISSUES
SB216 restores local decision-making authority, allowing cities and counties to determine
whether rent control aligns with their housing policies. Proponents argue rent control could help
address affordability concerns and prevent displacement, particularly in high-demand rental
markets. Opponents caution that rent control may discourage new housing development and lead
to reduced investment in rental properties. If municipalities enact rent control, they may need to
establish enforcement mechanisms, including rent boards, complaint resolution processes, and
penalties for noncompliance, potentially increasing local government expenditures.
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