Summary:

 House Bill 302 (HB 302) amends sections of the Development Fees Act (DFA); provides that impact fee credits are not reduced by proportional share concepts; provides that municipalities and counties cannot require the waiver of any provisions of the DFA.  

Legislation Overview:

 House Bill 302 (HB 302) amends Section 5-8-10 NMSA 1978 to read:

No municipality or county may permit or require a person or entity, including an owner of land, to waive a provision of the DFA.

Section 5-8-15 NMSA 1978 is amended to state that impact fee credits are not reduced by proportional share concepts. Clarification is added that a municipality or county may enter into an agreement with a person or entity constructing, contributing or dedicating facilities, improvements or real or personal property that provides for the issuance of such credits against impact fees in compliance with the DFA, provided that no municipality or county may require any person or entity to waive any provision of the Development Fees Act as a condition to entering into an agreement. No municipality or county may impose any requirements, restrictions or limitations with respect to the use, issuance or transfer of credits against impact fees unless otherwise specifically authorized by the DFA, and any requirements, restrictions or limitations in existing credit agreements are to be deemed void and not enforceable.
 

Current Law:

 The New Mexico Development Fees Act is a state law that allows counties and municipalities to impose  fees on land development. The fees are used to pay for new and improved public facilities. Current law does not include the proposed prohibitions and allowances regarding the Development Fees Act.