HOUSE BILL 24
56th legislature - STATE OF NEW MEXICO - second session, 2024
RELATING TO PROPERTY; REQUIRING THAT AT LEAST FIFTY-FIVE PERCENT OF UNITS OF CONDOMINIUMS CREATED ON OR AFTER JULY 1, 2024 ARE OWNER-OCCUPIED; REQUIRING THAT AT LEAST THIRTY-FIVE PERCENT OF THE MEMBERS OF THE GOVERNING BODY OF ASSOCIATIONS THAT MANAGE A CONDOMINIUM CREATED ON OR AFTER JULY 1, 2024 OWN AND OCCUPY UNITS WITHIN THAT CONDOMINIUM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 47-7B-1 NMSA 1978 (being Laws 1982, Chapter 27, Section 13) is amended to read:
"47-7B-1. CREATION OF CONDOMINIUM.--
A. A condominium may be created pursuant to the Condominium Act only by recording a declaration executed in the same manner as a deed. The declaration shall be recorded in each county in which any portion of the condominium is located and shall be indexed in the grantee's index in the name of the condominium and the association and in the grantor's index in the name of each person executing the declaration.
B. A declaration or an amendment to a declaration adding units to a condominium shall not be recorded unless all structural components and mechanical systems of all buildings containing or comprising any units created are substantially completed in accordance with the plans, as evidenced by a recorded certificate of completion executed by a licensed engineer, an architect or the appropriate building inspection authority or by the declarant. This section does not apply to a conversion building restricted in its entirety to uses other than for residential purposes.
C. For the purpose of furthering access to federal homeowner loans that have an owner occupancy requirement, at least fifty-five percent of the units of a condominium created by recording a declaration on or after July 1, 2024 pursuant to the Condominium Act shall be owner-occupied.
D. At least thirty-five percent of the members of the governing body of an association that manages a condominium created on or after July 1, 2024 pursuant to the Condominium Act shall own and occupy units within that condominium."
SECTION 2. Section 47-7B-5 NMSA 1978 (being Laws 1982, Chapter 27, Section 17, as amended) is amended to read:
"47-7B-5. CONTENTS OF DECLARATION.--
A. The declaration for a condominium shall contain:
(1) the names of the condominium, which shall include the word "condominium" or be followed by the words "a condominium", and the association;
(2) the name of every county in which any part of the condominium is situated;
(3) a description, legally sufficient for conveyance, of the real estate included in the condominium;
(4) a statement of the maximum number of units that the declarant reserves the right to create;
(5) a description of the boundaries of each unit created by the declaration, including the unit's identifying number;
(6) a description of any limited common elements, other than those specified in Subsections B, D and E of Section 47-7B-2 NMSA 1978, as provided in Section 47-7B-9
(7) a description of any real estate, except real estate subject to development rights, that may be allocated subsequently as limited common elements, other than limited common elements specified in Subsections B, D and E of Section 47-7B-2 NMSA 1978, together with a statement that they may be so allocated;
(8) a description of any development rights and other special declarant rights reserved by the declarant, together with a legally sufficient description of the real estate to which each of those rights applies, and a time limit within which each of those rights must be exercised;
(9) if any development right may be exercised with respect to different parcels of real estate at different times, a statement to that effect together with either a statement fixing the boundaries of those portions and regulating the order in which those portions may be subjected to the exercise of each development right, or a statement that no assurances are made in those regards, and a statement as to whether, if any development right is exercised in any portion of the real estate subject to that development right, that development right must be exercised in all or in any other portion of the remainder of that real estate;
(10) any other conditions or limitations under which the rights described in Paragraph (8) of this subsection shall be exercised or they shall lapse;
(11) an allocation to each unit of the allocated interests in the manner described in Section
47-7B-7 NMSA 1978;
(12) any restrictions on use, occupancy and alienation of the units;
(13) if required by local ordinance, written confirmation from the local zoning official that the condominium complies with the zoning density requirements of local zoning and subdivision ordinances or regulations as required in Section 47-7A-6 NMSA 1978; [and]
(14) on or after July 1, 2024, a statement that reads: "At least fifty-five percent of the total units of this condominium shall be owner-occupied. At least thirty-five percent of the members of the governing body of the association that manages this condominium shall own and occupy a unit within this condominium."; and
[(14)] (15) all matters required by Sections 47-7B-6 through 47-7B-9, 47-7B-15, 47-7B-16 and Subsection D of Section 47-7C-3 NMSA 1978.
B. The declaration may contain any other matters that the declarant deems appropriate."
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.
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