N.M. Stat. Ann. § 11-3A-12
State policy; operation not for profit.
Operative Text
11-3A-12. State policy; operation not for profit.
A. It is declared to be the policy of this state that each regional housing authority
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.
B. No regional housing authority shall construct or operate a housing project for
profit.
C. A regional housing authority 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 state or
federal government or other sources for housing projects, will be sufficient to:
(1) pay, as they become due, indebtedness or other obligations of the
regional housing authority incurred pursuant to the Regional Housing Law;
(2) meet the cost of and provide for maintaining and operating the housing
projects, including the cost of any insurance, the administrative expenses of the regional
housing authority incurred in connection with the housing projects and the funding of
operational reserves the regional housing authority deems appropriate;
(3) fund operational reserves to secure the payment of indebtedness as the
regional housing authority deems appropriate; and
(4) allow private, profit-making entities to enter into agreements with the
regional housing authority, without the agreements affecting the nonprofit status of the
regional housing authority or conflicting with the intent of the creation of the regional
housing authority.
History: Laws 1994, ch. 132, § 12; 1995, ch. 191, § 10; 2009, ch. 48, § 10.Under NMSA 11-3A-12, New Mexico's Regional Housing Law establishes that regional housing authorities must manage their housing projects and affordable housing programs efficiently, keeping rents as low as possible while still providing decent, safe, and sanitary housing. Authorities are explicitly prohibited from operating housing projects for profit, and rental rates may only be set high enough to cover necessary costs such as debt obligations, operating and maintenance expenses, insurance, administrative costs, and appropriate reserves. The provision also allows regional housing authorities to enter into agreements with private, for-profit entities, provided those arrangements do not compromise the authority's nonprofit character or contradict the purposes for which it was created.
Plain English — not legal advice.
Regional housing authorities operating under NMSA 11-3A-12 are expected to demonstrate that their rental rates are calculated to cover only allowable costs—including debt service, maintenance, insurance, administrative expenses, and operational reserves—rather than to generate profit. Compliant authorities document how each component of their rental rate structure ties back to the cost categories enumerated in the statute, and they ensure that any agreements with private, profit-making partners are structured so as not to alter the authority's nonprofit status. Operators generally maintain transparent financial records that show revenues from rents and any government grants or subsidies are applied solely to the purposes permitted by Section 11-3A-12.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
NMSA 11-3A-12 establishes a clear state policy that tenants in regional housing authority projects are entitled to rents set at the lowest rates consistent with maintaining decent, safe, and sanitary housing—not rates inflated to generate profit. If a tenant believes a regional housing authority is charging rents beyond what is necessary to cover the costs outlined in Section 11-3A-12, they may raise this concern with the housing authority directly, contact the New Mexico State Housing Authority, or reach out to a local tenant-rights organization for guidance on available options. Tenants can also consult publicly available financial reports that housing authorities are generally expected to maintain, which may help clarify how rental rates have been determined.
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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