A patch of land across from Cibola High School in Northwest Albuquerque is set to become home to 171 working households.
At their Oct. 14 meeting, Bernalillo County commissioners gave final approval to a tax abatement for the Cibola Loop Apartments, planned at Cibola Loop NW and Ellison Road in District 4. According to the county's announcement, the project calls for 171 units on about 5.2 acres, with an estimated $39 million in private investment.
The county describes it as an urban infill workforce housing community meant to add more of the housing working families are looking for on the city's northwest side.
Who's building it
The county named the builder. Tirol Housing, which the county describes as a real estate development company focused on financing, developing and constructing affordable multifamily communities, will construct the complex. The county said Tirol has a long history of working with government agencies, investors and nonprofit providers.
The plans call for a mix of one-, two- and three-bedroom apartments. The development will total about 182,600 square feet, with surface parking, landscaped common areas and resident amenities.
Rents will be set at roughly 74% to 91% of the area median income. That's a step above the deepest affordable housing programs. It's meant for working households that earn a steady paycheck but still have a hard time keeping up with rent in today's market.
How the tax break works
The deal runs through the county's affordable housing tax abatement program, known as the Non-PRB program. It gives the project a 100% exemption from real property taxes. In return, the developer pays the county an annual fee of $28,127 for 40 years, which adds up to more than $1.1 million.
In exchange for the tax break, the project commits to long-term rent restrictions.
Commissioner Walt Benson said the approach helps get projects across the finish line.
"The lack of affordable workforce housing in Bernalillo County continues to present problems for our residents," Benson said. "By providing tax abatement, in exchange for commitments for long-term rent restriction, the county is enabling cash flow to the project, which aides in lower interest rates for private loans in the initial phase of construction by a developer, to ensure the completion of the project."
He added that the approach "allows developers to work with non-profits keeping the county in a neutral place of non-ownership."
The same night, commissioners also approved a similar tax abatement for West Village, a 144-unit project on the Westside. Benson said the two projects together will provide 312 affordable workforce rentals. By the county's own unit counts, 171 plus 144 comes to 315, so the commissioner's figure appears to be a little low.
No construction start date was included in the county's announcement.
Why it matters for Contractors
A 171-unit apartment community on five acres is a big job for the Albuquerque market. It'll mean grading, utilities, paving and concrete, followed by framing, roofing, stucco, windows, plumbing, electrical, HVAC, drywall, flooring, cabinets and paint across multiple buildings. Landscaped common areas and amenities add work for landscapers and specialty trades.
Since Tirol Housing is handling construction, subs should reach out to the company directly about bid packages. Tirol builds affordable multifamily projects, so contractors who have worked on tax credit or other income-restricted jobs may already know what to expect in terms of paperwork and compliance.
Benson's comments point to why these deals matter. When a property tax break improves a project's cash flow, it can help the developer land better loan terms. Benson said that help is meant "to ensure the completion of the project." For a developer weighing whether a job pencils out, better loan terms can be the difference between breaking ground and leaving a project on paper.
The county titled its West Village announcement as part of how it "continues to deliver" workforce housing, and with two projects approved on a single night, it's clear the county sees this tool as a key part of its housing strategy. Benson noted that the West Village site had two proposed projects since 2005 that never moved forward. "Now, both dirt lots are being activated," he said. For contractors, that means more workforce apartment jobs may be heading to bid across the county.