Signed by Governor Michelle Lujan Grisham

Vote Smart's Synopsis:

Vote to pass a bill that amends regulations on housing application fees to improve transparency and limit the amount that owners can charge in New Mexico.

Highlights:

• Requires owners to disclose all costs of a rental agreement, including base rent and a description of all fees or charges that will be assessed during residency (Sec. 2).

• Specifies that a property owner is not liable for a third-party website’s failure to disclose all information required by the previous paragraph (Sec. 2).

• Limits the amount that a property owner may charge an applicant for a screening fee to $50 (Sec. 3).

• Requires property owners to refund the application fee if a prior applicant is offered and accepts a rental agreement, or the owner does not process the application (Sec. 3).

• Specifies that a property owner may only charge one screening fee for each applicant for all properties under their ownership within a 90 day period (Sec. 4).

• Requires property owners to provide written notice at least 60 days prior to increasing rent (Sec. 5).

• Authorizes late fees for rent that is in default of up to 5% of the regular rental amount (Sec. 6).

• Requires notice of rent increases at least 30 days in advance in the case of properties that are rented on a monthly basis (Sec. 6).

• Establishes a $250 fine for property owners who assess an unauthorized screening fee (Sec. 7).

• Expands the definition of “unfair or deceptive trade practice” to include charging an applicant a fee in violation of the Uniform Owner-Resident Relations Act” (Sec. 8-9).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends regulations on housing application fees to improve transparency and limit the amount that owners can charge in New Mexico.

Highlights:

• Requires owners to disclose all costs of a rental agreement, including base rent and a description of all fees or charges that will be assessed during residency (Sec. 2).

• Specifies that a property owner is not liable for a third-party website’s failure to disclose all information required by the previous paragraph (Sec. 2).

• Limits the amount that a property owner may charge an applicant for a screening fee to $50 (Sec. 3).

• Requires property owners to refund the application fee if a prior applicant is offered and accepts a rental agreement, or the owner does not process the application (Sec. 3).

• Specifies that a property owner may only charge one screening fee for each applicant for all properties under their ownership within a 90 day period (Sec. 4).

• Requires property owners to provide written notice at least 60 days prior to increasing rent (Sec. 5).

• Authorizes late fees for rent that is in default of up to 5% of the regular rental amount (Sec. 6).

• Requires notice of rent increases at least 30 days in advance in the case of properties that are rented on a monthly basis (Sec. 6).

• Establishes a $250 fine for property owners who assess an unauthorized screening fee (Sec. 7).

• Expands the definition of “unfair or deceptive trade practice” to include charging an applicant a fee in violation of the Uniform Owner-Resident Relations Act” (Sec. 8-9).

Full Bill Text