N.M. Admin. Code § 1.5.23.10

Current through Register Vol. 35, No. 24, December 23, 2024

Section 1.5.23.10 - LEASE OF REAL PROPERTY

A. Board approval is required whenever certain public bodies wish to lease (or sub-lease) properties they own (or are leasing): if

(1) the term of the lease or sublease is for a period of more than five years, or

(2) the consideration over the lease term is more than twenty-five thousand dollars ($25,000).

B. Prior board approval is necessary for:

(1) state agencies (unless consideration is one hundred thousand dollars ($100,000) or more and the term is for a period of more than twenty-five years, in which case approval by the legislature is required);

(2) counties;

(3) school districts (unless leasing facilities to a locally chartered or state-chartered charter school, in which case approval by the public school facilities authority is required); and

(4) local public bodies, which include, but are not limited to, the following:

(a) community colleges (but not including branch community colleges) and technical vocational institutes;

(b) conservancy districts;

(c) flood control authorities; and

(d) special hospital districts and county hospitals pursuant to the Hospital Funding Act.

C. In order to obtain approval for leases of real property, the board requires that at least the following information be provided:

(1) any summary information, forms, or checklists as determined and required by board staff through established guidelines;

(2) a cover letter providing details of the request;

(3) current appraisal report completed by a general certified appraiser for commercial property or a general certified appraiser or a residential certified appraiser for residential property or other evidence of fair market value and report of review from the property tax division of the taxation and revenue department if the appraisal was not done by the property tax division; the public entity seeking property tax division review must submit necessary information to the property tax division within the time frame specified by the property tax division; when the lessee/tenant is another public body, neither an appraisal nor property tax division review is required;

(4) copy of the lease containing a statement making the lease and any amendments subject to board approval;

(5) resolution from the governing body, if applicable, approving the lease, and containing a provision making the lease subject to board approval;

(6) the reason for leasing;

(7) description of the selection process used to determine lessee: competitive sealed bid, public auction, or negotiation;

(8) if consideration is being provided by the lessee (or sub-lessee), partially or completely, in the form of services, tangible personal property or construction, evidence that the selection of the lessee (or sub-lessee) complied with the procurement code or is expressly exempted and the term of the lease complies with, Section 13-1-150 NMSA 1978, as it may be amended from time to time;

(9) if a school district is seeking approval of a lease of real property that includes a building, evidence the building does not meet public school capital outlay council occupancy standards or that all charter schools located in the district have declined within a reasonable period of time set by the school district use of the building pursuant to Subsection F of Section 22-8B-4 NMSA 1978; and

D. Rent or other consideration at less than fair market value, as determined by the requirements of Paragraph (1) of Subsection B of 1.5.23.10 NMAC, from a private entity is not permitted, except as authorized by legislation implementing the economic development and affordable housing exceptions to the Anti-donation Clause of Article IX, Section 14 of the New Mexico constitution.

N.M. Admin. Code § 1.5.23.10

1.5.23.10 NMAC - N, 2-14-2001; A, 6-28-2002; A, 7-15-2003; A, 9-30-2004; A, 3-15-2010; A, 8-15-2011, Adopted by New Mexico Register, Volume XXXV, Issue 24, December 23, 2024, eff. 12/23/2024