N.M. Admin. Code § 1.5.23.9

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

Section 1.5.23.9 - SALE OR TRADE OF REAL PROPERTY

A. If the sale or trade of real property is for a consideration of more than twenty-five thousand dollars ($25,000), then prior board approval is necessary for:

(1) state agencies (unless the consideration is one hundred thousand dollars ($100,000) or more, in which case require approval by the legislature is required);

(2) school districts; and

(3) local public bodies, including, but not limited to:

(a) counties;

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

(c) conservancy districts; and

(d) flood control authorities.

B. In order to obtain approval for the sale or trade of real property, the board requires that the following information be provided at the time of submission to the board:

(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) the form of quitclaim deed from the public body transferring title to purchaser containing the legal description of the property;

(4) a copy of a 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 and report of review by the property tax division of the taxation and revenue department if the appraisal was not done by the property tax division (for both properties if trade); the public entity seeking property tax division review must submit necessary information to the property tax division within time frame specified by the property tax division; when the buyer is another governmental entity, neither an appraisal nor property tax division review is required;

(5) a description of the reason for the sale or trade;

(6) selection process used to determine purchaser; competitive sealed bid, public auction, or negotiation;

(7) purchase price and if applicable, cost per square foot, cost per acre, or cost per acre foot of water rights, etc. (for both properties if trade);

(8) sale agreement, if applicable, containing a statement making the sale or trade and any amendments to the agreement subject to board approval;

(9) resolution or minutes of the governing body, if applicable, authorizing the sale or trade and containing a provision making the sale or trade subject to approval by the board;

(10) approval by the state engineer of any transfer of water rights;

(11) if a school district is seeking approval of a disposition of real property that includes a building, it must submit evidence that 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

(12) if a state agency is seeking approval of the disposition of real property within the boundaries of a community land grant, a resolution or meeting minutes of the board of trustees of the community land grant evidencing its intent not to purchase the real property pursuant to Section 13-6-5 NMSA 1978; in the event a board of trustees does not respond to the state agency's notice of sale within forty-five days, the state agency shall document the lack of response in its submission to the board.

C. Transfer for less than fair market value, as determined by the requirements of Paragraph (2) of Subsection B of 1.5.23.9 NMAC, of real property owned by a public entity to any 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 § 1.5.23.9

1.5.23.9 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