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Frequently Asked Questions

All RTA Program materials were updated in July 2026.

What is a Redevelopment Tax Abatement (RTA)?

The Redevelopment Tax Abatement (RTA) is a property tax freeze authorized under the State’s Metropolitan Redevelopment Code (MR Code). The MR Code allows the City to freeze property taxes for qualifying redevelopment projects located in designated Metropolitan Redevelopment Areas (MR Areas).

To implement this benefit, the Metropolitan Redevelopment Agency (MRA) created the RTA Program, which aligns with state statute and supports catalytic redevelopment projects. The abatement applies to incremental taxes after a qualifying project is built.

To be eligible, developers must ensure their project aligns with:

  • The MR Code
  • The goals and policies of the MRA
  • The applicable Metropolitan Redevelopment Plan

What changes were made to the RTA program in 2026?

Recent legislation (Senate Bill 58) extended the maximum property tax freeze from 7 years to up to 14 years.

The expanded RTA Program now allows developers to apply for:

  • 7‑year abatement
  • 10‑year abatement
  • 14‑year abatement

The length of abatement depends on:

  • The project’s financial need
  • Demonstrated community and economic benefit
  • Alignment with extended RTA Program goals

Have the minimum requirements for the RTA changed?

The 7-year RTA application and qualification are essentially unchanged. The 10-year and 14-year abatement periods have progressively more rigorous requirements.

All RTA applications must meet these basic threshold requirements:

  • The project is located in a Metropolitan Redevelopment Area.
  • The applicant has site control.
  • The project meets minimum project size requirements:
    • A minimum of $1 million in hard construction costs, AND
      • At least 8 residential units are activated, OR
      • 5,500 sq. ft. of commercial space is activated
  • The project meets the minimum community benefit score for the RTA period requested:
    • 7 years = 40 points
    • 10 years = 55 points
    • 14 years = 65 points

What additional requirements apply to the 10- and 14-year RTA?

Projects requesting a 10‑ or 14‑year abatement must meet “but for” criteria. Developers must demonstrate:

  • Why the project is not financially feasible without the extended abatement, or
  • Why a specific community benefit would not be possible without the longer term

Extended‑term applications must also show how the project meets:

  • Additional evaluation criteria
  • Program priorities for the requested abatement length

For guidance, refer to the RTA Program Handbook (PDF) and the RTA Program webpage (PDF).

What is the approval process for an RTA?

The approval process takes an average of 4 months and includes several steps to ensure the project meets MR Code requirements and provides community benefit.

  1. MRA Staff Review
    • Staff review the application for completeness and alignment with program requirements.
    • Staff prepare a recommendation for qualified projects.
  2. Albuquerque Development Commission (ADC)
    • The ADC holds a public hearing.
    • Neighborhood associations and nearby property owners are notified.
    • The ADC issues a recommendation to City Council.
  3. City Council Approval
    • City Council considers the ADC recommendation.
    • Final approval must be granted before construction is completed.

What happens after an RTA is approved?

After approval, the developer must complete construction in compliance with all RTA conditions.

Requirements include:

  • Submitting a full set of building permit plans showing all RTA requirements
  • Scheduling a final walk‑through and ribbon cutting near construction completion
  • Obtaining a certificate of occupancy
  • Confirming all RTA requirements have been met

Once verified, MRA prepares the deed and lease agreement. These documents must be recorded no later than December 31 of the year construction is completed. If recording does not occur by this date, the County Assessor may reassess the property and increase taxes.

What happens during the lease period?

The lease period matches the approved RTA term (7, 10, or 14 years).

During this time:

  • The City temporarily holds the property in its name, but
  • The developer retains all legal, administrative, and maintenance responsibilities

Additional requirements include:

  • Payments in lieu of taxes (PILT) to the County Treasurer
  • An annual administrative fee to MRA equal to 10% of the yearly tax abatement value
  • Compliance with any reporting requirements in the lease (e.g., jobs, rent, occupancy)

What if I still have questions about the RTA Program?

Email MRA’s RTA Program staff at [email protected] with questions or to set up a meeting to discuss specific project questions or concerns.