Section 8. Projects Requiring Review

A. All projects that fall under the following categories must be submitted for review by the state board of finance: (1) any purchase of real property; (2) any construction of a new building; (3) any project involving a bond issue which requires state board of finance approval; (4) any other major project, including construction of facilities such as parking lots or radio towers; site improvements or landscaping; and remodeling of an existing building, but not demolition unless part of a larger project that requires approval. B. In-house labor applied to a project must be included as part of the cost of the project. Projects may not be artificially segmented or phased in a manner designed to avoid review by the state board of finance. [2.70.4.8 NMAC - Rp, 2.70.4.8 NMAC 12/23/2024] 2.70.4.9 INFORMATION REQUIRED FOR SUBMISSION FOR PURCHASE OF REAL PROPERTY: A. To ensure that the state board of finance will have sufficient information to review capital expenditures at New Mexico's educational institutions, the following information must be submitted to the board after the higher education department has approved the request: (1) legal description of the property; (2) a copy of a current appraisal report completed by a general certified appraiser for commercial property or a general certified appraiser or a residential certified appraiser for residential property and report of review from the property tax division of the taxation and revenue department if the appraisal was not done by the property tax division; the educational institution seeking property tax division review must submit necessary information to the property tax division within the time frame specified by the property tax division; when the seller is another governmental entity, neither an appraisal nor property tax division review is required; (3) a site improvement survey to verify the legal description and to uncover the existence of recorded and unrecorded easements and encroachments; (4) a description of the use to which the property will be plac tax division within the time frame specified by the property tax division; when the seller is another governmental entity, neither an appraisal nor property tax division review is required; (3) a site improvement survey to verify the legal description and to uncover the existence of recorded and unrecorded easements and encroachments; (4) a description of the use to which the property will be placed; 20.7.4 NMAC 3 (5) the source of funds for the purchase to include citation of the relevant section of the law when source of funds is legislative appropriation and in the case of bond funding, representation that bond proceeds are available; (6) current title binder in the form required by 13.14.5 NMAC evidencing clear title, including all required statements. For any special exceptions listed in Schedule B, the public body shall provide an explanation of each exception and measures it is taking to mitigate any risks associated with the exception; (7) the form of general warranty deed by which the educational institution will take title in fee simple absolute containing a legal description of the property and warranty covenants; when the seller is another governmental entity, transfer of title shall be by quitclaim deed; (8) phase I of an environmental assessment to verify prior use of the land with regard to possible environmental hazards; (9) a copy of the purchase agreement containing a provision making the purchase subject to the approval of higher education department and the state board of finance; and (10) evidence of approval of the purchase by the applicable state educational institution’s governing board and the higher education department. B. Waivers of certain provisions may be granted at the discretion of the board of finance, on a case by case basis, C. Requirements affecting bond approvals are set forth in 2.61.5 NMAC. [2.70.4.9 NMAC - Rp, 2.70.4.9 NMAC 12/23/2024] 2.70.4.10 INFORMATION REQUIRED FOR SUBMISSION FOR CONSTRUCTION OF BUILDINGS OR OTHER FACILITIES; MAJOR REMODELING: A erning board and the higher education department. B. Waivers of certain provisions may be granted at the discretion of the board of finance, on a case by case basis, C. Requirements affecting bond approvals are set forth in 2.61.5 NMAC. [2.70.4.9 NMAC - Rp, 2.70.4.9 NMAC 12/23/2024] 2.70.4.10 INFORMATION REQUIRED FOR SUBMISSION FOR CONSTRUCTION OF BUILDINGS OR OTHER FACILITIES; MAJOR REMODELING: A. To ensure that the state board of finance will have sufficient information to review capital expenditures at New Mexico's educational institutions, the following must be submitted to the board after the higher education department has approved the request: (1) a description of the facility to be constructed or remodeled, including the types of space to be included, the function of the facility, and the relationship of the project to the institution's five-year master plan; (2) the total square footage of the facility, both net assignable square feet and gross square feet; (3) the cost per square foot for the construction or remodel of the facility and the cost per square foot for the total project; (4) a budget for the project, including equipment costs, architect and engineering fees and contingencies; (5) source of funds to include citation of the relevant section of the law when source of funds is legislative appropriation and in the case of bond funding, representation that bond proceeds are available; (6) certificate of adequate parking as required in Section 21-1-21.1, NMSA 1978, as amended; (7) evidence of approval of expenditure by applicable board of regents and higher education department; (8) evidence of approval by higher education department and the energy, minerals, and natural resources department of the following criteria as it may be amended from time to time: (a) certification and demonstration of compliance with all commercial energy conservation requirements as set forth in 14.7.9 NMAC approval of expenditure by applicable board of regents and higher education department; (8) evidence of approval by higher education department and the energy, minerals, and natural resources department of the following criteria as it may be amended from time to time: (a) certification and demonstration of compliance with all commercial energy conservation requirements as set forth in 14.7.9 NMAC. Certification and demonstration means showing of qualifications or attributes that comply with or meet the specified requirements or standards set forth in 14.7.9 NMAC by either officially attesting to or authoritatively confirming through review by the energy, minerals, and natural resources department or the higher education department; and (b) if the facility is less than or equal to 5,000 square feet, evidence of energy efficient measures; (c) if the facility is greater than 5,000 square feet and less than or equal to 15,000 square feet, evidence of fifty percent reduction in energy use compared to existing facilities of similar type as defined by the United States department of energy; or (d) if the facility is greater than 15,000 square feet, evidence of fifty percent reduction in energy use compared to existing facilities of similar type as defined by the United States department of energy and the achievement of a LEED silver rating or better. 20.7.4 NMAC 4 B. Waivers of certain provisions may be granted at the discretion of the board of finance, on a case by case basis. C. Requirements affecting bond approvals are set forth in 2.61.5 NMAC.