The "Building Housing Communities Act" aims to enhance New Mexico's housing inventory by designating municipalities that adopt voluntary planning and zoning strategies to improve housing affordability and accessibility. The Department of Finance and Administration is tasked with establishing a program to award municipalities that implement approved strategies, designating them as "building New Mexico communities." The department will also develop rules outlining effective strategies that consider the unique needs of urban and rural areas, best practices from other jurisdictions, and various land use and zoning policies that can either facilitate or hinder housing development.

Additionally, the act emphasizes the importance of reducing regulatory barriers to housing development by promoting strategies that support the construction and rehabilitation of housing, simplify jurisdictional reviews, lower construction costs, and expand the types of housing units allowed across different jurisdictions. The provisions of this act are set to take effect on July 1, 2027.