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Bill Summary · HB 135

Summary — HB 135: Housing Study Requirement for LEDA Funds

Status (from bill text/fiscal note): Introduced; no specific appropriation. Because the bill contains no special effective date it would take effect 90 days after adjournment (noted in analysis as June 20, 2025). (User-provided status: action postponed indefinitely.)

Purpose

Require companies seeking Local Economic Development Act (LEDA) funding (through local or regional governments) to prepare a housing study of the county/municipality potentially affected by a proposed economic development project. The goal is to ensure LEDA decisions account for project-driven housing demand and local housing capacity before incentives are approved.

Key provisions

  • Adds a housing‑study requirement to the LEDA application process. An eligible company must complete a housing study for the communities that could be affected by the project prior to applying for LEDA funds via a local or regional government.
  • Defines “housing study” as a multivariable estimate of housing demand created by new employment expected from the project.
  • Bars reliance on a single metric: the housing study “cannot solely rely on a cost burden analysis.”
  • Requires the local or regional government reviewing a LEDA application to consider the housing‑study findings when evaluating the application.
  • No funding for studies is provided in the bill text.

Who would be affected

  • Companies applying for LEDA incentives (especially small or early-stage firms that may lack resources for studies).
  • Local and regional governments that review and decide on LEDA applications (they must consider the studies’ findings).
  • Economic Development Department (EDD) — administrative oversight, though the fiscal note reports no direct EDD budget impact.
  • Community stakeholders, housing developers, and planning entities (studies may influence local decisions about infrastructure, zoning, developer incentives).

Fiscal and operational impacts

  • LFC / EDD analysis: no direct fiscal impact on the EDD’s operating budget.
  • Potential indirect impacts: the requirement may reduce the number of LEDA applications or awards because of added time/cost burdens on applicants.
  • Cost & time estimates provided by EDD: housing studies can take 2 months to 1 year and commonly cost between $10,000 and $75,000 depending on scope — potentially exceeding the value of small LEDA awards (LEDA awards ranged FY24 from ~$50,000 to $18 million).
  • EDD currently collects basic relocation/worker estimates for LEDA projects (including an assumption that 10% of relocating workers build a home), which it views as a reasonable housing-demand proxy in some cases.

Significant issues and alternatives

  • EDD argues housing studies are best produced at the community or regional level (updated periodically) rather than requiring each company to commission one — shifting the burden to businesses may deter projects, especially smaller ones.
  • Existing planning grant programs (e.g., NM Finance Authority, DFA) could fund community studies.
  • Related legislative approach: a proposed Economic Development Site Readiness Act (Senate Bill 169) could create a site‑readiness fund to cover studies and site assessments, which might be a less burdensome alternative.

Practical effects / procedural notes

  • The housing study must be completed prior to application for LEDA funds and will be part of the materials local/regional governments use to evaluate incentive requests.
  • Because the bill does not earmark funding to pay for studies, applicants (or local/regional governments) would bear study costs unless alternative funding sources are identified.

Compiled from official sources — confirm details with the bill’s official record.

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