Assessor outlines revaluation plan to reduce disparity between residential and nonresidential assessments; multifamily treatment clarified

Lede: Bernalillo County Assessor Damian Lara told commissioners on April 10 that his office is working to reduce disparities that have built up between residential property values (which were capped and grew roughly 44% over 10 years in the assessor's earlier audit) and nonresidential values (which increased only about 4% over the same period).

Nut graf: The assessor explained that multifamily properties are currently classified in the residential class and therefore subject to the 3% cap on annual residential valuation increases. The office plans to work with industry stakeholders to consider valuation methods for income-producing multifamily that could incorporate stabilized income or other measures to avoid sudden "tax lightning" at transfer or development events.

Body: Lara described tools the assessor uses: cost, market-income and sales-comparison approaches, and said the office is exploring a modified income approach for new multifamily construction so that newly built projects are not hit with sharp valuation increases in the first year when rents may not yet be stabilized. He noted the state allows valuation incentives for affordable housing, and the assessor's office will identify affordable units to match that statutory approach.

Ending: Commissioners praised outreach and work with the apartment industry and the assessor said his office will continue to coordinate with property owners, developers and county staff to provide more gradual valuation adjustments and to limit unintended impacts on housing supply.