SENATE BILL 119

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Antonio Maestas

AN ACT

RELATING TO FINANCE; CREATING THE DEMOLITION FUND; ALLOWING THE LOCAL GOVERNMENT DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO PROVIDE GRANTS FOR COUNTIES AND MUNICIPALITIES OR OTHER PROPERTY OWNERS TO DEMOLISH DETERIORATED OR CONDEMNED RESIDENTIAL PROPERTIES; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] DEMOLITION FUND.--

          A. The "demolition fund" is created in the state treasury. The fund consists of appropriations, gifts, grants, donations and income from investment of the fund. Money in the fund at the end of a fiscal year shall not revert to any other fund. The local government division of the department of finance and administration shall administer the fund, and money in the fund is appropriated to the local government division to provide grants to counties and municipalities to:

                (1) demolish condemned residential properties; and

                (2) provide reimbursement for demolition costs incurred by a residential property owner pursuant to a county or municipal demolition program.

          B. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of finance and administration or the secretary's authorized representative.

          C. By December 1, 2026, the local government division of the department of finance and administration shall promulgate rules for the administration of the demolition fund, including procedures for providing grants to counties and municipalities to:

                (1) demolish condemned residential properties; and

                (2) create a program that allows a property owner to apply for reimbursement for costs to demolish the applicant's residential property; provided that the property is:

                     (a) in a slum or blighted area subject to a metropolitan redevelopment project; or

                     (b) significantly deteriorated and the owner includes documentation in the application for reimbursement showing that the costs of repairs significantly outweigh the costs of demolition.

     SECTION 2. APPROPRIATION.--Five million dollars ($5,000,000) is appropriated from the general fund to the demolition fund for expenditure in fiscal year 2027 and subsequent fiscal years to provide grants to counties and municipalities to demolish condemned residential properties in accordance with rules promulgated by the local government division of the department of finance and administration pursuant to Section 1 of this act. Any unexpended balance remaining at the end of a fiscal year shall not revert to the general fund.

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