Albuquerque, NM Zoning Overlays & Bonuses: Density Bonus Law (2026)
Key Facts
- Density increase
- Up to 20% above normal cap
- Eligible zones
- R-1, RA, and RT zones
- Affordable unit requirement
- At least 20% of units
- Buyer income limit
- 80% or less of area median income
- Developer safeguard
- Financial guarantee equal to appraised density value
Summary
Family housing developments in Albuquerque's R-1, RA, and RT zones can build at densities up to 20% above the zoning code's normal cap if at least 20% of the units are sold to income-qualified buyers under a city agreement.
Density Bonus. Any family housing development located in the R-1, RA, or RT zones is eligible for a density bonus. In these zones, the FHD may be developed at a density that is at most 20% higher than normally allowed under the Integrated Development Ordinance. All of the controlling setback and open space requirements must be met for the zone in which the FHD is located. (See the Integrated Development Ordinance, § 14-16-2-3(A), § 14-16-2-3(B), § 14-16-2-3 (D), and § 14-16-5-1(C)).
(2) Fee Rebates.
(a) Family housing development subdivisions are eligible for rebate of design review fees, provided that those fees have not been paid to the city prior to approval of a family housing agreement, as specified in subparagraph F
(1) of this section, for participation in the family housing development program. Family affordable ownership units located in a family housing development are eligible for a rebate of the utility expansion charge, parks dedication fee, parks development fee and building permit fee, provided that those fees have not been paid to the city prior to approval of a family housing agreement.
(b) Family affordable ownership units that are in a FHD located in the infill area are eligible for a 100% rebate of the fees identified in this paragraph; affordable units outside the infill area but within the city limits and the Water Service Area are eligible for a 80% rebate of fees identified in
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-95: Current through Ordinance 2026-010, passed 4-6-2026).
Full Breakdown
The Family Housing Development Ordinance, Revised Ordinances of Albuquerque § 14-17-5(E)(1), lets developers build a Family Housing Development at a density up to 20% higher than the Integrated Development Ordinance normally allows in the R-1, RA, or RT zones, provided all standard setback and open-space requirements are still met. To qualify, at least 20% of the subdivision's units must be sold as family affordable ownership units to buyers earning 80% or less of the area median income. In exchange for the bonus, the developer posts a financial guarantee equal to the appraised value of the added density, held by the city until the affordable units are sold.
Violations & Fines
No fine for noncompliance: instead the developer's financial guarantee, equal to the appraised value of the extra density, becomes due and payable to the city if an affordable unit isn't sold to a qualified buyer.
Frequently Asked Questions
Does the density bonus apply citywide?
What happens if the affordable units aren't sold to qualified buyers?
Sources & Official References
Other rules in Albuquerque
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