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 Maestas
LAST UPDATED
ORIGINAL DATE 03/07/2025
SHORT TITLE Zoning Decision Appeals
BILL
NUMBER Senate Bill 312
ANALYST Rommel
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
GRT –
new
housing
See fiscal
implications
See fiscal
implications
See fiscal
implications
See fiscal
implications
Recurring
General
Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
MFA
No fiscal
impact
No fiscal impact
No fiscal
impact
Recurring
Other state
funds
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to Senate Bill 310
Sources of Information
LFC Files
Agency Analysis Received From
Mortgage Finance Authority Mortgage Finance Authority (MFA) Governor’s Office of Housing
SUMMARY
Synopsis of Senate Bill 312
Senate Bill 312 (SB312) proposes to amend New Mexico Statute Chapter 3 - Municipalities
Article 19 - Planning and Platting Section 3-19-8 by limiting the ability to appeal a zoning and
planning decision to either a person who owns the property directly affected by the decision or a
person who owns property next to the affected property.
Senate Bill 312 – Page 2
The bill applies this limitation to various jurisdictions including municipal zoning and planning
appeals, extraterritorial zoning commission appeals, and zoning authority appeals.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns.
FISCAL IMPLICATIONS
The New Mexico Mortgage Authority reports no fiscal impact. In an analysis of related
legislation, Senate Bill 310 (SB310), the Department of Finance and Administration estimates
that each new housing unit constructed yields roughly $18 thousand in gross receipts (GRT)
reflected in the revenue table above. However, estimating the increase in new housing
construction that would result if SB312 is enacted is exceedingly difficult.
SIGNIFICANT ISSUES
SB312 would likely reduce the number of land use appeal lawsuits. This may reduce delays and
costs of development but may also limit public participation.
The Governor’s Office of Housing comments:
Zoning appeal lawsuits create two significant issues for housing. First, lawsuits increase
the cost of housing development by increasing direct legal costs for a project and second
by slowing the length of time it takes to begin construction. The overhead and holding
costs on a large housing development project can be considerable. Santa Fe County’s
Affordable Housing Plan identified that the cost of a multi-year delay in approval, which
is common for Santa Fe County approval processes, to be as much as $80 thousand per
unit. In supply constrained housing environments like New Mexico’s, all additional costs
are passed on to the consumer, severely impacting affordability.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to SB310, which directs that a zoning authority shall eliminate building height
restrictions, not restrict duplexes or townhouses in residential zones, and allow development of
small-scale commercial uses in residential zones. SB310 states these amendments do not apply to
historic districts.
HR/hj/SL2