Lawmakers in Santa Fe in the final days of the winter 2026 session may give their approval to a bill designed to increase affordable housing across the state.
As proposed, the legislation will offer tax credits to developers involved in the rehabilitation of vacant and declining structures, with the idea of those structures being turned into affordable housing.
Initially introduced by Republican Representative Rebecca Dow and Democrat Senator Cindy Nava, the legislation offers tax credits worth 30% of all rehabilitation costs for abandoned structures.
According to an analysis of the legislation put together by the Legislative Finance Committee, the bill specifically targets properties that have been vacant for more than two years, but less than five years. “To qualify, at least 80% of residential units must be affordable housing serving households with incomes at or below 85% of area medium income, adjusted for family size.”
Actual rehabilitation expenses, continues the analysis, “must fall between 80% and 125% of estimated costs submitted in advance.”
A press release issued by the Albuquerque-based Center for Housing Economics remarks that the legislation will additionally help property owners in tackling the issues of contamination.
“Clean-up can be too expensive for developers to consider purchasing the property,” said the Center, “causing it to sit and fall into disrepair, and leading to vandalism and blight.”
February 16, 2026
By Garry Boulard
Photo courtesy of New Mexico Secretary of State’s Office
