City Backed Projects One Step Closer to Bringing More Housing Online
Today, four Redevelopment Tax Abatement (RTA) applications for significant development projects have been approved by City Council. These projects are poised to bring substantial investment and revitalization to Albuquerque.
The RTA program is a pivotal incentive offered by the Metropolitan Redevelopment Agency (MRA) that provides a seven-year property tax abatement on the incremental property taxes for all taxing districts. This program aims to attract private investment, foster high-quality sustainable development, and deliver tangible benefits to the community.
“We’re short up to 30,000 housing units in our city–there’s no question about it, we need to build more houses so everyone can find a place to live that they can actually afford,” said Mayor Tim Keller. “The City can’t build it all alone, but we can provide incentives to support developers who want to invest here and help us build the future of Albuquerque.”
The first project is SOMOS in the Near Heights Metropolitan Redevelopment Area (MR Area). This development, located at Central & Alcazar next to Talin Market, will transform MRA-owned land into a 70-unit affordable housing complex with 1,000 square feet of commercial space. Notably, 84% of the housing units will be income-restricted, addressing a critical need for affordable housing in Albuquerque. The RTA is valued at nearly $1 Million ($998,128) over the 7-year period.
In addition to the RTA for the SOMOS project, City Council approved donation of the City-owned parcel for the development. To ensure long-term affordability, the project has also received over $3.56 million in infrastructure cost supports with the help of the Department of Health, Housing, and Homelessness ($3.4M of which is pending City Council approval) and $1.6 Million in Low-Income Housing Tax Credits.
“We are excited to partner with the MRA to achieve the goals of the Near Heights plan,” said Felipe Rael, Executive Director of Sol Housing. “With the construction of 70 apartment homes and commercial space to support local small businesses, SOMOS can achieve the vision of the international marketplace, providing much needed housing and economic benefits to the International District. The city’s support furthers this vision as we work to stabilize housing for 70 senior households.”
The second project is the Highlands Central Market & Residence Inn. Located in the Sycamore Redevelopment Area, this development features a 14,900 sq. ft. food hall and a 126-unit Residence Inn. This project is designed to enhance the local economy by creating jobs, stimulating business, and providing a new vibrant space for residents and visitors. The RTA is valued at approximately $514,000 over the 7-year period.
“Titan Development is pleased to announce our collaboration with the City of Albuquerque once more, as we embark on the forthcoming project at The Highlands,” said Josh Rogers, Partner at Titan Development. “This mixed-use endeavor, comprising the Residence Inn and Highlands Central Market, stands to address the demand for additional accommodations along the Central corridor. Furthermore, it introduces an exhilarating addition to the area in the form of a dynamic food hall.”
The third project is the Garfield Townhomes in the University Metropolitan Redevelopment Area. This 16-unit townhome project will consist of two separate buildings containing two-story, one-bedroom loft-style units. The development will be LEED Platinum certified, 100% electric, energy efficient, and will incorporate cooling design features, materials, and colors to enhance energy efficiency. The RTA is valued at approximately $151,000 over the 7-year period.
“Having lived in the neighborhood for many years, I am excited to turn what has been an eyesore property into much needed sustainable housing,” said Evan Davis, Developer and Designer of Sunlight Properties LLC. “These 16, one-bedroom loft style townhomes are going to be perfect for students and professionals alike. The project is targeting LEED Platinum certifications so they will be as energy efficient as they are beautiful. I am very grateful to the MRA for their much-needed support to make this project a reality!”
The final tax abatement approval is for the Park Central project in the Near Heights MR Area. This commercial-to-residential conversion project will create 101 units of new housing in an abandoned office tower. Additional features include a green roof, EV charging stations, a street-facing mural painted by a local artist, bike storage, a dedicated car share space, and all electric apartments. The RTA is valued at approximately $744,000 over the 7-year period.
"The Silverstone Equity Partners team, along with Equiterra Regenerative Design and Sterling Engineering and Design Group, is thrilled about the upcoming redevelopment of the iconic Park Central Tower and Bank of West Tower,” said Saad Khalid of Silverstone Equity Partners. “We are grateful for the City of Albuquerque's considerations regarding property tax abatements that will assist us in these efforts. Our goal is to work closely with local leaders to restore these towers to their former glory and help address Albuquerque's acute housing shortage. We eagerly anticipate the positive transformation these revitalized towers will bring to the community."
"The resources that we can offer are instrumental in attracting the kind of investment needed to rejuvenate underdeveloped areas,” said MRA Director Terry Brunner. “These projects reflect our mission to build vibrant, sustainable communities in Albuquerque."
The MRA remains committed to supporting initiatives that drive economic growth, enhance community well-being, and create opportunities for all Albuquerque residents and their families. For more information and updates on the Redevelopment Tax Abatement Program and other MRA incentives, please visit the MRA Incentives webpage.