City of Albuquerque
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File #: O-14-22   
Type: Ordinance Status: Enacted
File created: 9/3/2014 In control: City Council
Final action: 1/21/2015
Enactment date: 2/9/2015 Enactment #: O-2015-002
Title: F/S Amending The Zoning Code To Regulate Small Loan Businesses (Benton)
Sponsors: Isaac Benton
Attachments: 1. O-22, 2. O-22 EPC Record, 3. O-22 Approved Floor Substitute, 4. FS O-22Enacted
Date Action ByActionResultAction Details
2/9/2015 City Clerk Published  Action details
2/6/2015 Mayor Signed by the Mayor  Action details
1/29/2015 City Council Sent to Mayor for Signature  Action details
1/21/2015 City Council Accepted with a Recommendation Do Pass (Immediate Action)  Action details
1/21/2015 City Council Passed as SubstitutedPass Action details
1/21/2015 City Council SubstitutedPass Action details
1/14/2015 Land Use, Planning, and Zoning Committee Sent to Council for Immediate ActionPass Action details
1/14/2015 Land Use, Planning, and Zoning Committee Sent to Council with a recommendation of Do PassPass Action details
9/3/2014 City Council Introduced and Referred  Action details
9/3/2014 President Referred  Action details

COUNCIL BILL NO. F/S O-14-22 ENACTMENT NO. ______________________

SPONSORED BY: Isaac Benton

F/S Amending The Zoning Code To Regulate Small Loan Businesses (Benton)
WHEREAS, the prevalence of small loan businesses, including but not limited to payday lenders and title loans, some of which routinely charge up to 1,000% interest, has risen within the Albuquerque Metro Area over the past several years - there are approximately 116 locations in the City, with 58 new locations having been established since just 2009; and
WHEREAS, according to the New Mexico Regulation and Licensing Department, in 2012, consumers in New Mexico were charged $99 million in interest and fees on small loans with an annual percentage rate of 175% and higher - the majority of which was collected by out of state companies; and
WHEREAS, the City Council passed Resolution R-14-102 on October 6, 2014, urging the New Mexico Legislature and the Governor to enact an interest and fee cap of 36% or less across all loan products offered by Small Loan Business; and
WHEREAS, spatial analysis of small loan businesses shows that they tend to cluster in low to moderate income communities, and near military installations; and
WHEREAS, a study by the Southwest Center for Economic Integrity out of Tucson, Arizona, found that approximately $20 million dollars in fees were being extracted annually by payday lending businesses from residents in Pima County, Arizona - largely in the same redevelopment neighborhoods where local governments had invested approximately $8 million in redevelopment funds; and
WHEREAS, clustering of small loan establishments tend to not only serve as an indicator of economic distress within a community, but also as an exacerbating factor in that distress by circulating and cycling greater debt amongst proximate sma...

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