Advocacy

2025 New Mexico Home Builders Association Day (NMHBA) at the Legislature:

The New Mexico Home Builders Association (NMHBA) will host its 2025 Legislative Day at the Roundhouse, where members will convene in Santa Fe to meet with elected officials, including Governor Michelle Lujan Grisham. A key focus will be the Governor’s 2025 Housing Agenda. Members who contribute $250 to the NMHBA Political Action Fund will enjoy a coach bus ride to the Roundhouse, where they will discuss and advocate for bills designed to support new home construction. This event offers members the opportunity to engage in meaningful advocacy, gain insights into the legislative process, and represent home builders from across New Mexico.

NMHBA Member Lobbying Produces Results:

In the 2024 Legislative Session, the passage of HB195 marked a historic win for housing development in New Mexico. This legislation established the Housing Development Revolving Fund with a record $125 million allocation, offering below-market loans for infrastructure in housing projects across the state. The NMHBA played a crucial role, promoting and heavily lobbying for the passage of this transformative fund.

The 2023 Legislative Session saw another significant victory with the passage of the Right to Repair Act (SB50). This law requires homeowners to notify the builder of any perceived construction defect and allows the builder or its subcontractor the opportunity to address the issue before any lawsuit can proceed. This legislation has been instrumental in curbing abusive litigation practices that previously clogged New Mexico’s courts with unsubstantiated claims, which led to increased insurance costs and forced some subcontractors out of business. NMHBA members were key advocates, testifying in multiple Legislative Committees on the adverse impact of these lawsuits on the construction industry.

In previous legislative efforts, NMHBA members succeeded in reducing double taxation during the construction process. The law now allows deductions on Gross Receipts Tax (GRT) for essential construction expenses, such as equipment rentals, portable toilets, construction fencing, and stormwater consulting. Prior to this, these costs contributed to the total sales price of a new home, which was then taxed in full at the time of sale, creating a GRT “pyramid” effect. This legislative achievement continues to provide savings each year, lowering the overall cost of new homes and enhancing their accessibility to New Mexico residents.

The topic of GRT remains a recurring issue in the construction industry, leading NMHBA to develop ongoing resources and guidance for construction professionals to navigate these taxes effectively. Click here to see how NMHBA can help navigate the taxes.