Summary:

 House Bill 554 (HB 554) allows accessory dwelling units in residential zoning districts; and allows multifamily housing in commercial districts and areas near transit.  

Legislation Overview:

 House Bill 554 (HB 554) amends Section 3-21-1 NMSA 1978 as follows:

Zoning authorities…must: (1) accommodate housing by creating a mechanism to allow up to two kitchens within a single-family zoning district; (2) accommodate accessory dwelling units (smaller, independent residential dwelling unit on the same lot as a single-family home) in residential zoning districts as a permitted use; and (3) accommodate multifamily residential housing (townhomes, duplexes and apartment complexes) in commercial zoning districts and areas near transit. 

A new section of Chapter 3, Article 21 NMSA 1978 is enacted to read: 

A. As used in this section, "accessory dwelling unit" means a single habitable living unit that is a complete and independent living unit, provides separate ingress and egress, is built on a property with a residential use and includes permanent provisions for sleeping, cooking and sanitation. 

B. A zoning authority, including a zoning authority of a home rule municipality, must accommodate the construction of at least one accessory dwelling unit for each lot within zoning districts that allow residential uses, regardless of the size of the lot. 

C. An accessory dwelling unit must: (1) be permitted as either attached to or detached from an existing residential structure; (2) have side and rear setbacks that are no more than five feet from the property line and ten feet from any other structure on the property; (3) be permitted as an existing dwelling unit, provided that the unit complies with requirements; (4) be permitted to have a combined or separate driveway serving the other residential uses on the property; (5) be permitted to have combined or separate utilities serving the other residential uses on the property; (6) be permitted to occupy an existing residential or accessory structure; and (7) be permitted to occupy an existing residential or accessory structure which has been deemed legally nonconforming to zoning regulations, with certain conditions.

D. The owner of an accessory dwelling unit must obtain approval from the appropriate health officer prior to any installation of a private liquid waste disposal system. 

E. A zoning authority may not: (1) impose single-family or owner-occupancy requirements on an accessory dwelling unit; (2) charge additional impact fees if the existing utility infrastructure is sufficient to accommodate the accessory dwelling unit; (3) limit the maximum size of an accessory dwelling unit to less than one thousand gross square feet; (4) require more than one parking space per accessory dwelling unit; or (5) require additional development, review or aesthetic standards more restrictive than for other residential construction permitted on the property, with certain exceptions.

F. A local ordinance, policy, regulation or neighborhood or homeowner association restriction may not be a basis for a delay or a denial of a building permit for an accessory dwelling unit. 

G. An accessory dwelling unit that conforms to this section may not be deemed to exceed the allowable density of dwellings for the lot on which it is located and is considered an allowable residential use.

A new section of Chapter 3, Article 21 NMSA 1978 is enacted to read: 

A. As used in this section: (1) "major public transit location" means a property with a passenger rail station, a public transit stop that provides daily fixed-route service at intervals of at least fifteen minutes or park and ride locations managed by the department of transportation; and (2) "multifamily housing" means a residential property that contains more than one household and includes duplexes and townhouses. 

B. A zoning authority must accommodate the construction of multifamily housing in all residential and commercial zoning districts and areas within one-fourth mile of a major public transit location. 

C. Multifamily housing may be constructed with: (1) a minimum density of ten dwelling units per acre; (2) a minimum height of thirty-six feet; and (3) at least one off-street parking space for each unit in addition to required accessible parking spaces.





 

Current Law:

 Current law does not allow for accessory dwelling units in certain residential zoning districts, nor allow multifamily housing in certain commercial districts and areas near transit.  

Amendments:

 Amended February 27, 2025 in HCPAC

HCPACa/HB 554: The House Consumer and Public Affairs Committee amendment to House Bill 554 makes the following changes:

1. On page 4, line 3, strike "transit" and insert in lieu thereof "a passenger rail station". 
2. On page 6, line 22, strike the colon and insert in lieu thereof a comma. 
3. On page 6, strike lines 23 through 25. 
4. On page 7, strike lines 1 and 2. 
5. On page 7, line 3, strike the paragraph designation "(2)".