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 2/28/2025
SHORT TITLE No Parking Mandates
BILL
NUMBER Senate Bill 313
ANALYST Montano
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 Received From
Governor’s Office of Housing Agency Analysis was Solicited but Not Received From
Taxation and Revenue Department (TRD) Department of Transportation (DOT)
SUMMARY
Synopsis of Senate Bill 313
Senate Bill 313 (SB313) prohibits political subdivisions in New Mexico—such as cities and
counties—from imposing minimum parking mandates for residential, commercial, or industrial
properties. A minimum parking mandate is defined as any law, rule, or ordinance requiring a
minimum number of off-street vehicle parking spaces, including those within garages or
enclosed areas. The bill ensures that local governments cannot require businesses, developers, or
property owners to provide a specified number of parking spaces as part of new construction or
redevelopment projects. However, the bill provides an exception for accessible parking, allowing
political subdivisions to enforce parking mandates for spaces designated for individuals with
disabilities.
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
SB313 are no fiscal implications for any New Mexico state agency. Senate Bill 313 – Page 2
SIGNIFICANT ISSUES
The Governors Office of Housing highlights that parking mandates present a major challenge for
new housing and economic development, consuming vast land resources and increasing costs for
developers and consumers. The U.S. has an estimated three parking spaces per car and, in
downtown Albuquerque, nearly one-third of available land is dedicated to parking, limiting
housing and business expansion. Reforming parking standards is considered a high-impact
regulatory change to increase housing availability, with 22 states introducing parking reform
legislation and 10 states adopting reforms in the past five years. By eliminating parking
mandates, developments can maximize land use efficiency, enhance housing density, and lower
costs per unit, making housing more affordable. In cities like Santa Fe, parking spaces required
for a modest two-bedroom apartment often exceed the unit’s actual size, demonstrating how
these mandates inflate costs and reduce housing supply.
Beyond housing affordability, eliminating parking mandates encourages walkable, mixed-use
development that benefits small businesses and community amenities by reducing land
requirements for unnecessary parking. Large parking areas create urban dead zones, hinder
pedestrian-friendly design, and disrupt the urban landscape. Cities that have eliminated parking
requirements, such as Minneapolis, have seen reduced car dependency and lower per capita
vehicle miles traveled, leading to environmental benefits such as reduced urban heat island
effects and improved stormwater management. By requiring excessive free parking, mandates
subsidize automobile dependence, exacerbating fossil fuel consumption and climate change.
Removing these mandates supports denser, more sustainable urban development, fostering more
affordable, livable, and environmentally friendly communities.
ALTERNATIVES
The Office of Housing notes:
Alternative approaches could be to limit the focus on the impacts of parking mandates on
housing affordability. Some communities have implemented less-liberal reforms such as
requiring just one off-site housing space per housing unit or limiting removal of parking
mandates within a certain distance of public transit resources.
NM/hj/SL2