Albuquerque City Council approves tax breaks for four housing development projects

New housing could be on the way in Albuquerque, after the City Council approved tax breaks for four development projects on Wednesday.

The council unanimously approved tax abatements, which will freeze for seven years the developers’ tax payments at the level being paid before any development took place on the property. The tax abatements save the developers significant amounts of money and are meant to incentivize the projects. One of the four projects is an affordable housing project.

With the tax abatements in place, the developers can move forward into securing building permits.

The tallest, and perhaps most recognizable, of the four projects is the 10-story Two-Park Central Tower near the corner of San Mateo and Central. Developer Route 66 Multifamily plans to turn the vacant office building into 101 apartments. Some of the apartments will be market value, and some might become affordable housing. The tax abatement should save the developer an estimated $744,332 on its property taxes, according to a city staff report.

The developer also has plans to turn the neighboring Bank of the West tower into apartments, according to a city staff memo.

The only project of the four fully dedicated to be affordable housing will be built at the corner of Central and Alcazar SE. The 70-unit Somos affordable housing complex is being developed by Sol Housing. The nonprofit plans to set aside 84% of the units for income-restricted affordable housing. The tax abatement saves the developer an estimated $514,376.

The city already owns the land that the Somos project is being built on and will transfer ownership to Sol Housing after the abatement period ends.

“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," Felipe Rael, executive director of Sol Housing said in a statement. "The city’s support furthers this vision as we work to stabilize housing for 70 senior households.”

Titan Development has plans for a new long-term resident inn and food hall at the corner of Central and Cedar NE. The 126-unit residence inn could be used by traveling nurses working across the street at Presbyterian Hospital, Nichole Rogers told her fellow city councilors. The tax abatement should save the developers an estimated $998,128 over seven years.

Sunlight Properties and Garfield Townhomes got approval for a tax abatement for a townhome project in the University Heights neighborhood. The developers plan to build 16 townhomes on a vacant lot on Garfield. The tax abatement should save the developer $151,209.

“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,” Mayor Tim Keller said in a statement. “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.”