Appendix – RPM 12.00-A – Legally Required Approvals and Notifications for Certain Real Estate and Capital Improvement Transactions

Policy Details

Responsible Administrator: University General Counsel
Scope: NMSU System
Last Updated: 10/01/2026

Legally Required Approvals and Notifications for Certain Real Estate and Capital Improvement Transactions by State Universities in NM


Transaction Type	Higher Ed Department (HED)	State Board of Finance (SBOF)
Purchases of Real Property	HED Approval req’d NMAC 5.3.10.8	SBOF approval req’d NMSA 21-1-21; NMAC 2.70.4.8
Projects adding square footage (including construction or long-term lease of a new facility, building addition, or purchase of portable buildings)	HED Approval req'd NMAC 5.3.10.8	SBOF approval req’d only if “construction of new building” NMSA 21-1-21; NMAC 2.70.4.8
Project involving Issuance of Bonds	HED Approval req'd NMAC 5.3.10.8	SBOF approval req’d if bond issuance requires SBOF approval NMAC 2.70.4.8; see also NMAC 2.61.5.3(C)
*Major remodel, major renovation, alterations, site improvements, or other major projects.	See thresholds below NMAC 5.3.10.8(4)(b) and 5.3.10.7(C), (F) and (G)	See thresholds below; NMSA 21-1-21; NMAC 2.70.4.7-8
With cost over $950K	HED staff approval req'd NMAC 5.3.10.8(A), (C)(4)(b)(i)	SBOF approval req’d if project is funded exclusively by sources other than legislative appropriations NMAC 2.70.4.7(E)(4)
With cost over $1.6 million	HED Capital Outlay Committee approval req'd NMAC 5.3.10.8(A),(C)(4)(b)(ii)	SBOF approval is required above $950K. See above.
With cost over $2.4 million	N/A	SBOF approval req'd if project is funded by, in whole or in part, by capital outlay legislation signed into law NMAC 2.70.4.7(E)(2)
Demolition of existing building	HED staff approval NMAC 5.3.10.8(C)(5)	Not req’d unless demolition is part of a larger project requiring SBOF approval NMAC 2.70.4.8(A)(4)
Sale or trade of real property with current appraised value > $100K	Notification to HED staff NMAC 5.3.10.13	Not req’d under NMAC 2.70.4.8 because only the purchase of land requires SBOF approval.

*The dollar cost amounts listed are for institutions with an annual FTE > 1500. This applies to the entire NMSU system. Dollar thresholds are based on total project cost and are separate from NMSU's internal Board of Regents approval thresholds. Projects may not be artificially segmented or phased to avoid HED or State Board of Finance review. Applicable state thresholds vary by institutional FTE and, for State Board of Finance review, by source of project funding.