New Mexico cities can now bill your association for rain
New Mexico cities can now bill your association for rain
2026-09-15 · New Mexico · Legislation
New Mexico gave every municipality the power to create a storm water utility and charge property owners for it. A homeowner association is a person owning real property — and the property it owns is the impervious kind.1
What the statute says
Senate Bill 7, Laws 2025 Chapter 52, signed April 7, 2025 and effective June 20, 2025, enacts a new section of the Municipal Code:
“STORM WATER MUNICIPAL UTILITY—AUTHORITY TO ACQUIRE FACILITIES AND PROVIDE SERVICE—FEE.— A. A municipality may, by ordinance, acquire, operate and maintain a municipal utility to provide for storm water service for the collection, treatment, storage or disposal of storm water. B. A municipality may require each person owning or controlling real property in the municipality to pay a just and reasonable fee for storm water service provided by a municipal utility.”
The act also folds storm water into the definition of “municipal utility” and into Section 3-23-1, the municipal utility service charge and enforcement section: “The provisions of this section are intended to afford an additional method of enforcing payment of charges for water, sewer service, refuse collection, street maintenance or storm water service furnished by the municipality.”
That section's existing remedy remains: if payment “is not made within thirty days from the date the payment is due, the water service may be discontinued.”
It passed the Senate 34–0 and the House 46–18.
Why associations are exposed disproportionately
Storm water utility fees are almost universally billed on impervious surface area — the square footage that sheds water rather than absorbing it.
Look at what a New Mexico community association typically owns: private streets, parking bays, sidewalks, clubhouse roofs, pool decks, and drainage tracts. That is an unusually impervious portfolio for a single ratepayer, and in other states the same billing model has produced association bills that dwarf any individual owner's.
Two things that are not in the statute
There is no exemption for common-interest communities. The text reaches “each person owning or controlling real property.” An association is a person owning property.
There is no credit mechanism. Many New Mexico associations were required to build, own and maintain their own detention ponds and drainage infrastructure as a condition of subdivision approval — infrastructure that reduces the load on the municipal system. Nothing in SB 7 gives them credit for it.
Any such credit has to come from the local ordinance. That is the single point at which a board's presence at a city council meeting is worth more than anything it can do afterwards.
The statute is enabling, not self-executing
This is the part that determines where a board stands now. A municipality must pass an ordinance. Nothing is owed until a city acts.
So the right move is not to reserve for a fee that may never arrive. It is to put one question on the budget calendar: has our municipality adopted a storm water utility ordinance, and is one being drafted?
An association that learns of an ordinance at the drafting stage can argue for a credit for the drainage it already maintains. An association that learns of it from the first bill cannot.
The collection remedy is the municipal one
Because storm water was folded into Section 3-23-1, non-payment is enforced through the municipal utility machinery — including the water-shutoff provision. For an association with common-area irrigation and clubhouse water service, that is a meaningful consequence rather than a late fee.
Where this sits in the drainage picture
This sits alongside the obligations a board already carries. Albuquerque's water-waste rules bind “anyone within the service area,” including an association for common-area irrigation, with a 48-hour clock on malfunctioning equipment. In Minot-style municipal schemes elsewhere, and in some New Mexico jurisdictions, an approved storm water management plan is itself treated as a continuing obligation attached to the land.
The common thread is that an association's common areas are regulated infrastructure, and increasingly billed as such. SB 7 adds the billing mechanism; it did not create the exposure.
What to watch
The first New Mexico municipality to adopt a storm water utility ordinance, and what it does about credits for privately maintained drainage. That ordinance will be the template every other city works from.
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