Relocation Assistance

NMSA 1978 ch. 42, art. 3

in effect

NMSA 1978, § 42-3-1 Short title

42-3-1. Short title Chapter 42, Article 3 NMSA 1978 may be cited as the "Relocation Assistance Act". 1953 Comp., § 22-9A-1, enacted by Laws 1972, ch. 41, § 1; 1989, ch. 121, § 1.

NMSA 1978, § 42-3-2 Definitions

42-3-2. Definitions As used in the Relocation Assistance Act: A. "agency" means any department, agency or instrumentality of: (1) the federal government; (2) the state; (3) a political subdivision of the state; or (4) any combination of the federal government, the state or a political subdivision of the state; B. "appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described real property as of a specific date, supported by the presentation and analysis of relevant market information; C. "business" means any lawful activity, except a farm operation, conducted primarily: (1) for the purchase, sale, lease or rental of personal and real property or for the manufacture, processing or marketing of products, commodities or any other personal property; (2) for the sale of services to the public; (3) by a nonprofit organization; or (4) solely for the purposes of Subsection A of Section 42-3-5 NMSA 1978, for assisting in the purchase, sale, resale, manufacture, processing or marketing of products, commodities, personal property or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted; D. "displacing agency" means any agency or person carrying out a program or project which causes a person to be a displaced person; E. "displaced person": (1) means any person who moves from real property or moves his personal property from real property as a direct result of: (a) a written notice of intent to acquire or the acquisition of the real property in whole or in part for a program or project undertaken by the displacing agency on which the person is a residential tenant or conducts a farm operation or a business as defined in Subsection C of Section 42-3-2 NMSA 1978; or (b) rehabilitation, demolition or other displacing activity as the displacing agency may prescribe, under a program or project undertaken by the displacing agency in any case in which the head of the displacing agency determines that the displacement is permanent; and (2) means solely for the purposes of Section 42-3-11 NMSA 1978 and Subsections A and B of Section 42-3-5 NMSA 1978, any person who moves from real property or moves his personal property from real property as a direct result of: (a) a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which the person conducts a business or farm operation, for a program or project undertaken by the displacing agency; or (b) rehabilitation, demolition or other displacing activity as the displacing agency may prescribe, of other real property on which the person conducts a business or farm operation, under a program or project undertaken by the displacing agency where the head of the displacing agency determines that the displacement is permanent; (3) does not include: (a) any person that has been determined, according to criteria established by the head of the displacing agency, to be either in unlawful occupancy of the displacement dwelling or to have occupied the displacement dwelling for the purpose of obtaining assistance under the Relocation Assistance Act; and (b) any person that is occupying the property on a rental basis for a short term or period once the displacing agency has acquired the property as set forth in that act, other than the person that was an occupant of the property at the time the property was acquired. F. "family" means two or more individuals living together in the same dwelling unit who are related to each other by blood, marriage, adoption or legal guardianship; G. "farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use and customarily producing such products or commodities in sufficient quantity capable of contributing materially to the operator's support; H. "mortgage" means such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property under the laws of New Mexico, together with the credit instruments, if any, secured by them; and I. "person", unless a contrary intention appears, means an individual, estate, trust, receiver, association, club, corporation, partnership, joint venture, syndicate or other entity. 1953 Comp., § 22-9A-2, enacted by Laws 1972, ch. 41, § 2; 1989, ch. 121, § 2.

NMSA 1978, § 42-3-3 Relocation program

42-3-3. Relocation program The displacing agency, as a part of the cost of a program or project, may establish and provide for a program providing fair and reasonable relocation and other payments for persons displaced by a program or project and to carry out relocation assistance programs for displaced persons. 1953 Comp., § 22-9A-4, enacted by Laws 1972, ch. 41, § 4; 1989, ch. 121, § 3.

NMSA 1978, § 42-3-4 Administration

42-3-4. Administration In order to prevent unnecessary expense and duplication of functions and to promote uniform and effective administration of relocation assistance programs for displaced persons, any displacing agency may make relocation payments, provide relocation assistance or otherwise carry out the provisions of the Relocation Assistance Act by entering into an agreement to utilize the facilities, personnel and services of any agency having an established organization for conducting relocation assistance programs. 1953 Comp., § 22-9A-5, enacted by Laws 1972, ch. 41, § 5; 1989, ch. 121, § 4.

NMSA 1978, § 42-3-5 Relocation payments

42-3-5. Relocation payments A. Whenever a program or project undertaken by an agency will result in the displacement of a person, the displacing agency shall provide for payment to the displaced person for: (1) actual reasonable expenses in moving the person or the person's family, business, farm operation or other personal property; (2) actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the displacing agency; (3) actual reasonable expenses in searching for a replacement business or farm, supported by documentation that the displacing agency by regulation may require; and (4) actual reasonable expenses necessary to reestablish a displaced farm or business at its new site, in accordance with criteria to be established by the displacing agency but not to exceed twenty-five thousand dollars ($25,000). B. A displaced person eligible for payments under Subsection A of this section who is displaced from a dwelling and who elects to accept the payment authorized by this subsection in lieu of the payments authorized by Subsection A of this section may receive an expense and dislocation allowance that shall be determined according to a schedule established by the displacing agency. C. A displaced person eligible for payments under Subsection A of this section who is displaced from the person's place of business or from the person's farm operation and who is eligible under the criteria established by the displacing agency may elect to accept the payment authorized by this subsection in lieu of the payment authorized by Subsection A of this section. The payment shall consist of a fixed payment in an amount to be determined according to the criteria established by the displacing agency, except that the payment shall be not less than one thousand dollars ($1,000) nor more than forty thousand dollars ($40,000). A person whose sole business at the displacement dwelling is the rental of the dwelling to others shall not qualify for a payment under this subsection. 1953 Comp., § 22-9A-6, enacted by Laws 1972, ch. 41, § 6; 1989, ch. 121, § 5; 2015, ch. 136, § 1.

NMSA 1978, § 42-3-6 Additional payment to property owner

42-3-6. Additional payment to property owner A. In addition to payments authorized by Section 42-3-5 NMSA 1978, the displacing agency, as a part of the cost of the program or project, may make an additional payment not to exceed thirty-one thousand dollars ($31,000) to a displaced person who is displaced from a dwelling actually owned and occupied by the displaced person for not less than ninety days prior to the initiation of negotiations for acquisition of the property. The additional payment shall include the following: (1) the amount that when added to the acquisition cost to the displacing agency of the dwelling acquired by the displacing agency equals the reasonable cost of a comparable replacement dwelling; (2) the amount that will compensate the displaced person for any increased interest cost and other debt service costs that the displaced person is required to pay for financing the acquisition of a comparable replacement dwelling. The amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage that was a valid lien on the dwelling for not less than one hundred eighty days prior to the initiation of negotiations for the acquisition of the dwelling. The amount of the increased costs shall be equal to the excess in the aggregate interest and other debt service costs of the amount of the principal of the mortgage on the replacement dwelling that is equal to the unpaid balance of the mortgage on the acquired dwelling, over the remainder term of the mortgage on the acquired dwelling, reduced to discounted present value. The discount rate shall be the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located; and (3) reasonable expenses incurred by the displaced person for evidence of title, recording fees and other closing costs incident to the purchase of a comparable replacement dwelling, but not including prepaid expenses. B. The additional payment authorized by this section shall be made only to a displaced person who purchases and occupies a comparable replacement dwelling not later than the end of the one-year period beginning on the date on which the displaced person receives from the displacing agency final payment of all costs of the acquired dwelling or on the date on which the displacing agency's obligations, pursuant to Paragraph (3) of Subsection C of Section 42-3-11 NMSA 1978, are fulfilled, whichever is the later date. The displacing agency may extend this one-year period for good cause. If this one-year period is extended, the payment under this section shall be based on the costs of relocating the displaced person to a comparable replacement dwelling within one year of such date. 1953 Comp., § 22-9A-7, enacted by Laws 1972, ch. 41, § 7; 1989, ch. 121, § 6; 2015, ch. 136, § 2.

NMSA 1978, § 42-3-7 Additional payment to tenant

42-3-7. Additional payment to tenant A. In addition to amounts otherwise authorized by the Relocation Assistance Act, the displacing agency shall make a payment to or for any displaced person displaced from any dwelling not eligible to receive a payment under Section 42-3-6 NMSA 1978 when that dwelling was actually and lawfully occupied by the displaced person for not less than ninety days immediately prior to the initiation of negotiations for acquisition of the dwelling or in any case in which the displacement is a direct result of acquisition or other event as the displacing agency shall prescribe. B. The payment in Subsection A of this section shall consist of the amount necessary to enable the displaced person to lease or rent for a period not to exceed forty-two months a comparable replacement dwelling, but at no time shall this payment exceed seven thousand two hundred dollars ($7,200). At the discretion of the displacing agency, a payment under this subsection may be made in periodic installments. Computation of a payment under this subsection to a low-income displaced person for a comparable replacement dwelling shall take into account that person's income. C. Any person eligible for a payment under Subsection A of this section may elect to apply the payment to a down payment on, and other incidental expenses pursuant to, the purchase of a comparable replacement dwelling. That person may, at the discretion of the displacing agency, be eligible under this subsection for the maximum payment allowed under Subsection B of this section, except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least ninety days immediately prior to the initiation of negotiations for the acquisition of the dwelling, this payment shall not exceed the payment the person would otherwise have received under Subsection A of Section 42-3-6 NMSA 1978 had the person owned and occupied the displacement dwelling ninety days immediately prior to the initiation of such negotiations. 1978 Comp., § 42-3-7, enacted by Laws 1989, ch. 121, § 7; 2015, ch. 136, § 3.

NMSA 1978, § 42-3-8 Miscellaneous payments

42-3-8. Miscellaneous payments In addition to other payments authorized by the Relocation Assistance Act, the displacing agency, as part of the cost of any program or project, may reimburse reasonable and necessary expenses incurred for: A. recording fees, transfer taxes and other expenses incidental to conveying the property; B. penalty costs for prepayment of any mortgage then existing entered into in good faith encumbering the real property if the mortgage is on record or has been filed for record as provided by law; and C. the pro rata portion of real property taxes paid which are allocable to the period subsequent to the date of vesting of title in the displacing agency or the effective date of the possession of the real property by the displacing agency, whichever is earlier. 1953 Comp., § 22-9A-9, enacted by Laws 1972, ch. 41, § 9; 1989, ch. 121, § 8.

NMSA 1978, § 42-3-9 Reimbursement for expenses where condemnation does not result in acquisition or is abandoned

42-3-9. Reimbursement for expenses where condemnation does not result in acquisition or is abandoned A court having jurisdiction over a proceeding instituted by the displacing agency to acquire real property by condemnation shall, when required by federal law or by a federal grant contract governing the project or program, award the owner of any right, title or interest in the real property a sum which will reimburse the owner for his reasonable costs, disbursements and expenses, including reasonable attorney, appraisal and engineering fees actually incurred because of the condemnation proceedings, if: A. the final judgment in the proceeding is that the displacing agency cannot acquire the real property by condemnation; or B. the proceeding is abandoned by the displacing agency. 1953 Comp., § 22-9A-10, enacted by Laws 1972, ch. 41, § 10; 1989, ch. 121, § 9.

NMSA 1978, § 42-3-10 Compensation for expenses of inverse condemnation

42-3-10. Compensation for expenses of inverse condemnation A court, rendering a judgment for the plaintiff in a proceeding brought under Section 42A-1-29 NMSA 1978 awarding compensation for the actual physical taking of the property by the displacing agency, or the agency effecting a settlement of any such proceeding, shall, when required by federal law or by a federal grant contract governing the project or program, determine and award or allow to the plaintiff as a part of the judgment or settlement a sum which will reimburse the plaintiff for his reasonable costs, disbursements and expenses, including reasonable attorney, appraisal and engineering fees actually incurred because of the proceeding. 1953 Comp., § 22-9A-11, enacted by Laws 1972, ch. 41, § 11; 1989, ch. 121, § 10.

NMSA 1978, § 42-3-11 Advisory assistance program

42-3-11. Advisory assistance program A. Programs or projects undertaken by a displacing agency shall be planned in a manner that: (1) recognizes at an early stage in the planning of programs or projects, and before the commencement of any actions which will cause displacements, the problems associated with the displacement of individuals, families, businesses and farm operations; and (2) provides for the resolution of displacement problems in order to minimize adverse impacts on displaced persons and to expedite the program or project advancement and completion. B. The head of any displacing agency shall ensure that the relocation assistance advisory services described in Subsection C of this section are made available to all persons displaced by the displacing agency. If the head of the displacing agency determines that any person occupying property immediately adjacent to the property where the displacing activity occurs is caused substantial economic injury as a result of the displacing activity, the head of the displacing agency may make available to any person occupying the adjacent property the relocation assistance advisory services. C. Each relocation assistance advisory program required by Subsection B of this section shall include those measures, facilities or services that may be necessary or appropriate in order to: (1) determine the need and make timely recommendations on the needs and preferences, if any, of displaced persons for relocation assistance; (2) provide current and continuing information on the availability, sales prices and rental charges of comparable replacement dwellings for displaced homeowners and tenants and suitable locations for businesses and farm operations; (3) assure that a person shall not be required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling except in the case of: (a) a major disaster as defined in Section 102(2) of the Disaster Relief Act of 1974; (b) a national emergency declared by the president of the United States; (c) any other emergency which requires the person to move immediately from the dwelling because continued occupancy of the dwelling by the person constitutes a substantial danger to the health or safety of the person; (4) assist a person displaced from his business or farm operation to obtain and become established in a suitable replacement location; and (5) supply information concerning federal, state and local programs which may be of assistance to displaced persons, supply technical assistance to displaced persons in applying for assistance under these programs and minimize hardships to the displaced persons in adjusting to relocation. 1978 Comp., § 42-3-11, enacted by Laws 1989, ch. 121, § 11.

NMSA 1978, § 42-3-12 Housing replacement as a last resort

42-3-12. Housing replacement as a last resort A. If a project cannot proceed to actual construction because comparable replacement sale or rental housing is not available and the displacing agency determines that the housing cannot otherwise be made available, the displacing agency may take action necessary or appropriate to provide the housing by use of funds authorized for the project. The displacing agency may use this section to exceed the maximum amounts which may be paid under the Relocation Assistance Act on a case-by-case basis for good cause as determined in accordance with such regulations as the agency or department shall issue. B. No person shall be required to move from his dwelling on account of any project unless the displacing agency is satisfied that a comparable replacement housing is available to the person. 1953 Comp., § 22-9A-13, enacted by Laws 1972, ch. 41, § 13; 1989, ch. 121, § 12.

NMSA 1978, § 42-3-13 Implementing regulations

42-3-13. Implementing regulations The displacing agency may adopt regulations that it deems necessary or appropriate to implement the provisions of the Relocation Assistance Act, including but not limited to regulations necessary to assure that: A. the payments and assistance authorized shall be administered in as fair, reasonable and uniform a manner as practicable; B. a displaced person who makes proper application for a payment authorized shall be paid promptly after a move or, in hardship cases, be paid in advance; and C. any person aggrieved by a determination as to eligibility for relocation payments or the amount of payment under that act may have his application reviewed at a formal hearing before the head of the displacing agency or a hearing officer designated by the head of the displacing agency. 1953 Comp., § 22-9A-14, enacted by Laws 1972, ch. 41, § 14; 1989, ch. 121, § 13.

NMSA 1978, § 42-3-14 Administrative hearings; court review

42-3-14. Administrative hearings; court review A. A person aggrieved by a determination as to eligibility for relocation payments or the amount of payment received under the Relocation Assistance Act shall have the right to a hearing before the displacing agency or before a hearing officer designated by the displacing agency. B. After the hearing, a person aggrieved or affected by a final administrative determination concerning eligibility for relocation payments or the amount of the payment under the Relocation Assistance Act may appeal to the district court pursuant to the provisions of Section 39-3-1.1 NMSA 1978. 1953 Comp., § 22-9A-15, enacted by Laws 1972, ch. 41, § 15; 1989, ch. 121, § 14; 1998, ch. 55, § 45; 1999, ch. 265, § 47.

NMSA 1978, § 42-3-15 Contingent authority of act

42-3-15. Contingent authority of act The provisions of the Relocation Assistance Act are effective so long as the congress of the United States authorizes and appropriates money for the payments and services set forth in Section 211 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 for federal aid programs, that act providing for federal reimbursement of the payments and services arising out of relocation assistance as a part of the cost of construction of a project under any federal aid program. 1953 Comp., § 22-9A-16, enacted by Laws 1972, ch. 41, § 16; 1989, ch. 121, § 15.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18542/index.doFetched: 10/20/2026