Extended RTA Program Criteria

All materials have been updated as of July 2026.

Overview

Senate Bill 58 gives the Metropolitan Redevelopment Agency (MRA) the authority to extend the statutory maximum tax abatement period from 7 years to up to 14 years.

Extended abatement terms are not automatic. Projects seeking a longer term must demonstrate stronger alignment with MRA priorities through financial need, community and economic benefit, or other qualifying project attributes.

Tiered Evaluation Framework

To ensure transparency and financial responsibility, MRA uses a tiered evaluation process when evaluating RTA applications.

The 7‑year RTA application and qualification requirements remain essentially unchanged.
The 10‑year and 14‑year abatement periods include progressively more rigorous requirements, reflecting the need for stronger alignment with:
- Financial feasibility
- MRA policy goals
- Applicable Metropolitan Redevelopment Area Plans
- Demonstrated community benefit

The RTA Program Handbook provides complete information about extended‑term priorities and explains how projects must demonstrate eligibility for each abatement tier.

How Abatement Terms Are Evaluated

MRA evaluates each project using a program alignment matrix that measures how well the proposal supports MRA policy goals and redevelopment priorities.

This review is:

Completed by MRA staff
Based on the materials submitted in the RTA Application
Shared publicly as part of the approval process

Projects must also meet all other application criteria for the abatement term requested.

Positive Attributes

Projects demonstrating more of the positive attributes below are stronger candidates for longer-term abatements. Depending on the project type, location, and community context, MRA may give greater consideration to projects that:

Address multiple RTA program priorities
Address multiple conditions of blight as defined in the Metropolitan Redevelopment Code
Provide significant community benefit
Advance area plan goals
Support economic development, housing, or environmental remediation
Demonstrate long‑term commitments (e.g., affordability, local hiring, sustainability measures)

14-Year RTA Term

Project Category	Alignment to MRA Goals and Policies	RTA Term
Substantial Affordable Housing	More than 50% of units at or below 80% AMI, OR significant missing-middle infill in a housing-priority district	14-Year
Brownfield, Sustainable Redevelopment	Documented brownfield site with environmental remediation OR substantial sustainable design (LEED equivalent or local green standard).	14-Year
High-Wage Economic-Base Project	Employer commitment to quality jobs in fields such as advanced manufacturing, tech/AI, biomedical, clean energy, OR Tribal enterprise that brings new dollars into the regional economy with wages above the area median.	14-Year
Catalyst Project in Priority District	Located in a priority census tract - Opportunity Zone (OZ) or New Market Tax Credit (NMTC) Deep or Severe Distress tract - AND identified by the MR Area Plan as a catalyst or priority opportunity.	14-Year
Historic Preservation or Residential Conversion	Adaptive reuse of historic structures with preservation of character-defining features OR conversion of a non-residential structure to residential use.	14-Year
Substantial Financial Gap	Project demonstrates a substantial financial gap (e.g., well-above 80% loan-to-value ratio) that can only be closed with maximum RTA term.	14-Year

10-Year RTA Term

Project Category	Alignment to MRA Goals and Policies	RTA Term
Moderate Affordable Housing	Less than 50% of units at or below 80% AMI OR meaningful missing-middle infill.	10-Year
Mixed-Use with Placemaking	Residential + ground-floor commercial OR significant placemaking (art, streetscape, public realm) elements.	10-Year
Local / Diverse-Owned Anchor	Local- or diverse-business-owned developer, OR anchor tenant that is a certified small/diverse business.	10-Year
Quality Job Creation	Creates permanent jobs above area median wage with documented hiring plan.	10-Year
Moderate Financial Gap	Project demonstrates a moderate financial gap (e.g., at or above 80% loan-to-value ratio) that can be closed with 10-yr RTA term.	10-Year

7-Year RTA Term

Project Category	Alignment to MRA Goals and Policies	RTA Term
Documented Blight Removal	Removes a documented blighted condition (vacant, deteriorated, code-violating, or environmentally compromised).	7-Year
MR Plan Alignment	Project use and design align with the adopted Metropolitan Redevelopment Plan for the MR Area.	7-Year
Strong Developer Track Record	At least 2 comparable projects completed in the last 7–10 years with documented on-time, on-budget delivery.	7-Year
Secured Capital Stack	Project capital secured (term sheets, lender commitments, equity LOIs).	7-Year
No Financial Gap	Project does not have a financial gap but still meets all other criteria for a 7-yr RTA term.	7-Year

Concerning Attributes

MRA also considers project attributes that may affect eligibility or limit the maximum abatement term available.

Eligibility and Term Limitations

Project Category	Misalignment to MRA Goals and Policies	Effect on RTA Term
Below Threshold	Project does not meet the minimum 40-point Community Benefit Matrix score or other threshold requirement.	REJECT
High-Hazard in Residential Area	Heavy industrial or high-hazard use proposed in or near a predominantly residential district.	REJECT
Sprawl / Non-Infill	Project is non-infill development outside Centers & Corridors or otherwise contrary to City growth policy.	REJECT
Displacement	Project directly contributes to the displacement of existing businesses or residences.	REJECT
Low-Wage / High-Turnover Use	Primary use is low-wage or part-time jobs, without significant local-benefit offsets (e.g., not paired with housing, not local/diverse-owned).	Cap at 7-Year
Oversupplied Category	Project type is identified as oversupplied in the area per MR Area Plan or market evidence.	Cap at 7-Year
Speculative / No Demonstrated Financial Gap	Project has no demonstrated financial gap or hardship that has not been offset with substantial community benefit commitments.	Cap at 7-Year
Weak / Limited Track Record	Developer cannot point to comparable completed projects OR has documented issues with past public-incentive projects.	Cap at 7-Year
Auto-Oriented in Pedestrian District	Project introduces auto-oriented use (drive-through, surface parking dominant) in a pedestrian-focused corridor.	Cap at 7-Year
Weak District Plan Alignment	Project meets the basic plan but is not a priority project type for the district; conflicts with district character or oversupply notes.	Cap at 7-Year
Affordability Not Covenanted	Project includes affordable units without a long-term Land Use Agreement or Restrictive Covenant matching the abatement term.	Cap at 10-Year