N.M. Stat. Ann. § 3-45-9
Operation not for profit.
Operative Text
3-45-9. Operation not for profit.
It is declared to be the policy of this state that each city shall manage and operate its
housing projects and affordable housing programs in an efficient manner so as to
enable it to fix the rentals for dwelling accommodations at the lowest possible rates
consistent with its providing decent, safe and sanitary dwelling accommodations and
that no city shall construct or operate any housing project for profit. To this end, a city
shall set the rental rates for dwellings in the housing projects it manages and operates
at no higher rates than it finds to be necessary in order to produce revenues that,
together with any grants or subsidies from the federal government or other sources for
housing projects, will be sufficient:
A. to pay, as they become due, the principal and interest on the bonds or other
obligations of the city issued under the Municipal Housing Law;
B. to meet the cost of and to provide for maintaining and operating the housing
projects and affordable housing programs, including the cost of any insurance, the
administrative expenses of the city incurred in connection with the housing projects and
affordable housing programs and the funding of any operational reserves as the
authority deems appropriate;
C. to fund such reserves to secure the payment of its bonds as the authority deems
appropriate or convenient; and
D. to allow private, profit-making entities to enter into agreements with the authority,
and such agreements shall not be deemed to affect the nonprofit status of the authority
or conflict with the intent of the creation of the authority.
History: 1953 Comp., § 14-46-9, enacted by Laws 1965, ch. 300; 1989, ch. 50, § 3;
2009, ch. 226, § 8.Under NMSA 3-45-9, New Mexico cities that manage housing projects and affordable housing programs are required to operate them on a not-for-profit basis. Rental rates must be set at the lowest levels sufficient to cover bond obligations, operating and maintenance costs, administrative expenses, and appropriate reserves — not to generate surplus revenue. The provision also clarifies that a city may enter into agreements with private, profit-making entities without that arrangement undermining the nonprofit character of the housing program.
Plain English — not legal advice.
Municipal housing authorities and city housing managers operating under NMSA 3-45-9 are expected to set rents only as high as necessary to cover allowable costs — including debt service, maintenance, insurance, administrative expenses, and reserves. Compliant operators document how rental rates are calculated and ensure that revenues, combined with any federal grants or subsidies, do not exceed what is needed to sustain the program. Agreements with private, profit-making partners are permissible under this section, provided they are structured in a way that does not compromise the authority's nonprofit operating status.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
NMSA 3-45-9 establishes a state policy that residents of city-managed housing projects should pay no more in rent than what is genuinely necessary to keep the housing financially sustainable — not to produce profit for the city. Tenants in municipal housing programs may reference this provision if they believe rental rates appear inconsistent with the not-for-profit mandate, and can raise concerns with the city housing authority directly. Tenant-rights organizations or legal aid services familiar with New Mexico municipal housing law can help residents understand whether a particular rental rate appears consistent with the requirements of this section.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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