N.M. Stat. § 5-11-1 (2026)

Chapter 5, Article 11 NMSA 1978 may be cited as the "Public Improvement District
Act".

History: Laws 2001, ch. 305, § 1; 2013, ch. 45, § 1.

                                    ANNOTATIONS

The 2013 amendment, effective July 1, 2013, added the NMSA chapter and article for
the Public Improvement District Act; and at the beginning of the sentence, deleted
"Sections 1 through 27 of this act" and added "Chapter 5, Article 11 NMSA 1978".

Applicability. — Laws 2013, ch. 45, § 12 provided that the provisions of Laws 2013,
ch. 45, §§ 1 through 4 and 6 through 10, do not apply to an application for formation of a
public improvement district submitted to a governing body prior to January 1, 2014.
5-11-2. Definitions.
   As used in the Public Improvement District Act:

    A. "allowable base" means the sum of the appraised value, not including the value
of public infrastructure improvements, of:

       (1)    taxable property in a district that is owned by persons other than the
applicant or the applicant's related entities;

       (2)    commercial, industrial or retail property in a district that is owned by the
applicant or the applicant's related entities for which a certificate of completion has been
issued; and

        (3)    all other taxable property in a district not described in Paragraphs (1) and
(2) of this subsection, to the extent that its appraised value is less than or equal to the
appraised value of property described in Paragraph (1) of this subsection;

   B. "applicant" means a person that applies for the formation of a district pursuant to
the Public Improvement District Act;

   C. "clerk" means the clerk of the municipality or county, or any person appointed by
the district board to be the district clerk pursuant to Section 5-11-6 NMSA 1978;

    D. "county" means a county that forms a public improvement district pursuant to the
Public Improvement District Act in an unincorporated area or in an incorporated area
with the municipality's consent;

   E. "debt service" means the principal of, interest on and premium, if any, on the
bonds, when due, whether at maturity or prior redemption; the fees and costs of
registrars, trustees, paying agents or other agents necessary to handle the bonds; and
the costs of credit enhancement or liquidity support;

    F. "development agreement" means an agreement between a property owner or
developer and the county, municipality or district, concerning the improvement of
specific property within the district, which agreement may be used to establish
obligations of the owner or developer, the county or municipality or the district
concerning the zoning, subdivision, improvement, impact fees, financial responsibilities
and other matters relating to the development, improvement and use of real property
within a district;

    G. "district" means a public improvement district formed pursuant to the Public
Improvement District Act by a municipality or by a county in an unincorporated area or
in an incorporated area with the municipality's consent;
    H. "district board" means the board of directors of the district, which shall be
composed of members of the governing body, ex officio, or, at the option of the
governing body, five directors appointed by the governing body of the municipality or
county in which the district is located, until replaced by elected directors, which shall
occur not later than six years after the date on which the resolution establishing the
district is enacted, as provided in Section 5-11-9 NMSA 1978;

   I. "election" means an election held in compliance with the provisions of Sections
5-11-6 and 5-11-7 NMSA 1978 and pursuant to the provisions of the Local Election Act
[Chapter 1, Article 22 NMSA 1978];

    J. "enhanced services" means public services provided by a municipality or county
within the district at a higher level or to a greater degree than otherwise available to the
land located in the district from the municipality or county, including such services as
public safety, fire protection, street or sidewalk cleaning or landscape maintenance in
public areas. "Enhanced services" does not include the basic operation and
maintenance related to infrastructure improvements financed by the district pursuant to
the Public Improvement District Act;

    K. "general plan" means the general plan described in Section 5-11-3 NMSA 1978,
as the plan may be amended from time to time;

   L. "governing body" means the body or board that by law is constituted as the
governing body of the municipality or county in which the public improvement district is
located;

    M. "municipality" means an incorporated city, village or town;

    N. "owner" means:

        (1)    the person who is listed as the owner of real property in the district on the
current property tax assessment roll in effect at the time that the action, proceeding,
hearing or election has begun. For purposes of voting in elections held pursuant to the
Public Improvement District Act, when the owner of record title is a married person, only
one spouse in whose name title is held may vote at such election. Where record title is
held in more than one name, each owner may vote the number of fractions of acres
represented by the owner's legal interest or proportionate share of and in the lands
within the district;

       (2)      the administrator or executor of an estate holding record title to land within
the district;

        (3)    the guardian of a minor or incompetent person holding record title to land
within the district, appointed and qualified under the laws of the state;
       (4)    an officer of a corporation holding record title to land within the district,
which officer has been authorized by resolution of the corporation's board of directors to
act with respect to such land;

        (5)    the general partner of a partnership holding record title to land within the
district;

        (6)    the trustee of a trust holding record title to land within the district; or

       (7)     the manager or member of a limited liability company holding record title
to land within the district who has been authorized to represent the company;

   O. "person" means any individual, estate, trust, receiver, cooperative association,
club, corporation, company, firm, partnership, limited liability company, joint venture,
syndicate or other association;

    P. "public infrastructure improvements" means all improvements listed in this
subsection and includes both on-site improvements and off-site improvements that
directly or indirectly benefit the district. Such improvements include necessary or
incidental work, whether newly constructed, renovated or existing, and all necessary or
desirable appurtenances. "Public infrastructure improvements" includes:

      (1)     sanitary sewage systems, including collection, transport, storage,
treatment, dispersal, effluent use and discharge;

       (2)    drainage and flood control systems, including collection, transport,
diversion, storage, detention, retention, dispersal, use and discharge;

         (3)  water systems for domestic, commercial, office, hotel or motel, industrial,
irrigation, municipal or fire protection purposes, including production, collection, storage,
treatment, transport, delivery, connection and dispersal;

         (4)     highways, streets, roadways, bridges, crossing structures and parking
facilities, including all areas for vehicular use for travel, ingress, egress and parking;

       (5)    trails and areas for pedestrian, equestrian, bicycle or other nonmotor
vehicle use for travel, ingress, egress and parking;

      (6)    pedestrian malls, parks, recreational facilities and open space areas for
the use of members of the public for entertainment, assembly and recreation;

       (7)    landscaping, including earthworks, structures, lakes and other water
features, plants, trees and related water delivery systems;

         (8)   public buildings, public safety facilities and fire protection and police
facilities;
       (9)    electrical generation, transmission and distribution facilities;

       (10)   natural gas distribution facilities;

       (11)   lighting systems;

       (12)   cable or other telecommunications lines and related equipment;

       (13) traffic control systems and devices, including signals, controls, markings
and signage;

       (14) school sites and facilities with the consent of the governing board of the
public school district for which the site or facility is to be acquired, constructed or
renovated;

       (15)   library and other public educational or cultural facilities;

        (16) equipment, vehicles, furnishings and other personalty related to the items
listed in this subsection; and

       (17)   inspection, construction management and program management costs;

   Q. "public infrastructure purpose" means:

        (1)    planning, design, engineering, construction, acquisition or installation of
public infrastructure, including the costs of applications, impact fees and other fees,
permits and approvals related to the construction, acquisition or installation of such
infrastructure;

        (2)    acquiring, converting, renovating or improving existing facilities for public
infrastructure, including facilities owned, leased or installed by an owner;

       (3)    acquiring interests in real property or water rights for public infrastructure,
including interests of an owner;

     (4)    establishing, maintaining and replenishing reserves in order to secure
payment of debt service on bonds;

       (5)    funding and paying from bond proceeds interest accruing on bonds for a
period not to exceed three years from their date of issuance;

       (6)    funding and paying from bond proceeds fiscal, financial and legal
consultant fees, trustee fees, discount fees, district formation and election costs and all
costs of issuance of bonds issued pursuant to the Public Improvement District Act,
including fees and costs for bond counsel, financial advisors, consultants and
underwriters, costs of obtaining credit ratings, bond insurance premiums, fees for letters
of credit and other credit enhancement costs and printing costs;

      (7)   providing for the timely payment of debt service on bonds or other
indebtedness of the district;

       (8)    refinancing any outstanding bonds with new bonds, including through the
formation of a new public improvement district; and

       (9)    incurring expenses of the district incident to and reasonably necessary to
carry out the purposes specified in this subsection;

   R. "related entities" means two or more entities that are owned in an amount greater
than fifty percent by the same person, either directly or through one or more persons;

    S. "special levy" means a levy imposed against real property within a district that
may be apportioned according to direct or indirect benefits conferred upon affected real
property, as well as acreage, front footage, the cost of providing public infrastructure for
affected real property, or other reasonable method, as determined by the governing
body or district board, as applicable; and

    T. "treasurer" means the treasurer of the governing body or the person appointed
by the district board as the district treasurer pursuant to Section 5-11-6 NMSA 1978.

History: Laws 2001, ch. 305, § 2; 2009, ch. 46, § 1; 2013, ch. 45, § 2; 2019, ch. 212, §
192.

                                     ANNOTATIONS

The 2019 amendment, effective April 3, 2019, revised the definition of "election", and
deleted the definition of "resident qualified elector", as used in the Public Improvement
District Act; in Subsection I, after "NMSA 1978", added "and pursuant to the provisions
of the Local Election Act"; and deleted former Subsection S and redesignated former
Subsections T and U as Subsections S and T, respectively.

The 2013 amendment, effective July 1, 2013, defined the additional terms; and added
Subsections A, B, O and R.

Applicability. — Laws 2013, ch. 45, § 12 provided that the provisions of Laws 2013,
ch. 45, §§ 1 through 4 and 6 through 10, do not apply to an application for formation of a
public improvement district submitted to a governing body prior to January 1, 2014.

The 2009 amendment, effective June 19, 2009, added Subsection L(7).