Las Cruces, NM Zoning Overlays & Bonuses: Density Bonus Law (2026)

Section 38-44 of the Land Development Code creates the University District Overlay along University Avenue, splitting it into the University Avenue Zone (UAZ) and the Transition Zone (TZ). In the UAZ, developers build up to 36 dwelling units per acre without any special approval. The code raises that ceiling to 54 units per acre if the project incorporates outdoor space, as defined in the overlay's own definitions section, and the city's Community Development Department accepts the design; accessory dwelling units and guest dwellings do not count toward either number.

The TZ, the buffer ring around the UAZ core, tops out at a flat 10 to 24 units per acre by right, with no equivalent bonus tier. The same subsection pairs the density incentive with a matching floor-count bonus: buildings in the UAZ are capped at three stories plus an optional basement by right, but may reach four stories with open space or mixed land uses built into the project, and five stories if both are provided together. The overlay, adopted by ordinance in 2010, ties every bonus to the same qualifying feature, usable outdoor space integrated into the site plan, rather than a cash fee or affordable-housing set-aside.

Property owners who disagree with how the Community Development Director applies these standards can appeal to the University District Citizens Design Review Committee, which forwards a recommendation to the Planning and Zoning Commission for final action.