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 Sedillo Lopez
/López
LAST UPDATED
ORIGINAL DATE 02/24/25
SHORT TITLE
Housing Study for Some Development
Projects
BILL
NUMBER Senate Bill 293
ANALYST Graeser
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
DFA/BOF
Indeterminate
but minimal
Indeterminate
but minimal
Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect the most recent analysis of this legislation.
Relates to Senate Bills 481 and 482
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Mortgage Finance Authority (MFA) Agency Analysis was Solicited but Not Received From
Taxation and Revenue Department (TRD) Department of Finance and Administration (DFA)
New Mexico Finance Authority (NMFA)
SUMMARY
Synopsis of Senate Bill 293
Senate Bill 293 (SB293) amends the Tax Increment for Development Act (5-15-1 through 5-15-
29 NMSA 1978) to add a requirement that the developer of a tax increment development district
(TIDD) provide a housing study prior to approval by either the state or local sponsoring
government. SB293 defines “housing study” as a multivariable analysis of the housing demand
created by new employment, including new full-time economic base jobs, expected to occur as a
result of implementation of a tax increment development project.
The bill changes the study element from “workforce housing” to “affordable housing” and
defines “affordable housing” as decent, safe, and sanitary dwellings, apartments, single- family
dwellings or other living accommodations that are affordable for households earning less than 80
percent of the area median income within the county and that the monthly housing costs of the
unit does not exceed 33 percent of the household’s gross monthly income.
Senate Bill 293 – Page 2
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns, or June 20, 2025, if enacted.
FISCAL IMPLICATIONS
There are no direct fiscal implications of the bill. The required housing study will add somewhat
to the costs of preparing a TIDD application and add minimally to the cost of reviewing the
application prior to approval by either the sponsoring local government or the Board of Finance.
The provisions of the bill do not require the developer to provide affordable housing.
SIGNIFICANT ISSUES
The requirement for a TIDD developer to conduct a housing study and for that housing study to
include demand for affordable housing is not directly tied to a promise on the part of the
developer to provide a certain amount of affordable housing or the previous workforce housing.
Each of the approved TIDDs requesting state gross receipts tax participation (Mesa Del Sol, Las
Cruces Downtown, Winrock Center, Taos Ski Valley, and South Campus) have dealt
inadequately with the required element in the act of creating plans for workforce housing.
The New Mexico Mortgage Finance Authority (MFA) points out the following benefits of a
housing study:
1. This bill may lead to more community-driven developments as housing
studies may depict the local economy and align with the community goals.
2. This bill may reduce housing shortages as the housing studies may provide a
more detailed understanding of the housing needs and local economy.
PERFORMANCE IMPLICATIONS
SB293 does not expand a tax expenditure.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to Senate Bill 481 and SB482
LG/hj/SL2