Understanding Impact Fees

Impact Fees are assessed on builders by the city of Albuquerque to help pay for the infrastructure needed to service new construction. The infrastructure subjected to impact fees consists of four types: drainage facilities; public parks (including trails and open space); public safety; and road facilities. Albuquerque, unlike many other areas, does not use impact fees for libraries, community centers, schools, or transit equipment. Impact fees are administered by the City of Albuquerque Planning Department.

Impact fees are meant to help the city of Albuquerque make the necessary capital improvements around a new construction area. Fees that relate to existing infrastructure, however, such as utility hook-ups, are excluded.

Impact fees can and do vary from area to area. Some areas of Albuquerque, like any city, are more adequately developed for residential and commerical demand than others. Besides development, fees can also vary per the City based on its economic need. Since new construction in mixed-zoned areas (residential/commercial) usually means shorter housing/job commutes, the fees in these areas can be lower.

When purchasing a home, if you’re concerned about impact fees, you can request the title company to do a special assessment search to determine if there are any outstanding impact fees against your home and what those costs would be.

For Albuquerque impact fee amounts and other information, please visit the Albuquerque Official City Website.

For brief definitions of other terms, visit my Real Estate Glossary.

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