The Hobbs City Commission on Monday night approved three more development agreements with contractors that will result in 30 more new homes in the city.

The City Commission unanimously approved development agreements with Gold Creek Homes of Weatherford, Texas, Lemke Development Inc. of Hobbs and ABS Homes of Hobbs.

“I’m glad to see all the development going on,” said Mayor Sam Cobb. “We’re making progress, that’s the main thing.”

The development agreements will reimburse the three contractors $100,000 each for public infrastructure improvements, such as streets to access new homes, curbs and sidewalks, and water and sewer lines.

Gold Creek Homes plans to build at least 10 more market-rate single-family homes in the Homestead Estates subdivision, south of East Bender Boulevard. It is the city’s 12 development agreement with Gold Creek Homes, which has already built 367 single- and multi-family units at Homestead Estates and Homestead Apartments.

Lemke Development plans to build at least 10 more homes in The Meadows subdivision, at the northeast corner of West College and North Ja-Rob lanes. This is the city’s second development agreement with Lemke.

ABS Homes plans to build at least 10 more homes in the Zia Crossing subdivision. It is the city’s seventh development agreement with ABS Homes. ABS Homes has built 82 single-family homes in the Zia Crossing subdivision, with 56 more lots available for development, said Kevin Robinson, the city’s development director.

Housing boom

The record-setting pace of homebuilding in Hobbs is largely the result of five ongoing major housing projects — Zia Crossing, Homestead Estates, The Meadows, Tanglewood and Libba Land Subdivision — all of which are under construction in and around Hobbs.

The city last year doubled the number of permits issued for residential single-family homes from 2017, while seeing a $20 million overall increase in residential and commercial permits. Hobbs issued permits for 164 residential single-family homes in 2018 — about the number issued in 2016 and 2017 combined.

The City Commission in August revised its housing incentive program that encourages contractors to build new housing in the city. The city began awarding housing incentives to builders of single-family homes in June 2012.

2019 growth

The housing boom is continuing in 2019, with the city already approving multiple development agreements this year.

In January, the City Commission approved an $18,900 development agreement with Diebal LLC, a San Antonio-based contractor, for three market-rate, single-family manufactured homes along Heizer Parkway, across the street from Heizer Park.

The manufactured homes will be put on permanent foundations and be assessed and taxed as real property, not as manufactured or mobile homes. It is the city’s second development agreement with Diebal. The first development agreement in June 2014 resulted in four new, single-family homes.

In February, the City Commission approved moving forward with a $1.57 million zero-interest loan — its 10 percent portion — of a subsidized housing complex on the city’s north side. The 72-family unit mixed-income community proposed by Yes Housing Inc. would be near the intersection of North Dal Paso Street and East Navajo Drive.

Ultimate approval and construction of the $15,696,293 East Navajo Family Housing development is contingent on financing from the New Mexico Mortgage Finance Authority, which provides financing to make subsidized housing available to low- and moderate-income residents.

Michelle DenBleyker, vice president of Yes Housing Inc., said a decision from the NMMFA is expected in early June. If approved, construction could begin in January 2020, with apartment units occupied as early as January 2021.

The city’s loan term would be 35 years, during which time rental amounts would be restricted, based on residents’ incomes. Eligible annual incomes for a three-person household in a two-bedroom apartment would range from about $18,000 to $48,000.

The apartment development would consist of 12 one-bedroom units, 44 two-bedroom units, 16 three-bedroom units and a 2,000-square-foot community building, as well as two or three play areas for differently aged children.

Rental rates for the planned apartments would be based on the percent of a family’s income to the area median income, ranging from $295 a month for a one-bedroom apartment to $1,255 a month for a three-bedroom apartment. A single person would need an annual income of less than $37,520 to qualify, said DenBleyker, who said a private market study in November found every one of the city’s affordable housing properties was 100 percent occupied, with waiting lists.

Also in early February, the City Commission approved a $100,000 development agreement with Gold Creek Homes for the construction of 10 market-rate, single-family homes in the Homestead Estates subdivision.

Robinson said occupancy permits have been issued for those 10 homes, allowing for a new development agreement with Gold Creek Homes.

Later in February, the City Commission approved development agreements for another 23 homes in the city.

Black Gold Estates was awarded a $100,000 housing incentive for the construction of 10 homes at Zia Crossing subdivision; Property Management Plus of Hobbs was awarded a $23,000 housing incentive for the construction of three homes near East Bender Boulevard and North Dal Paso Street; and Lemke Development Inc. was awarded a $100,000 housing incentive for 10 homes at The Meadows subdivision.

All the development agreements require developers to complete the market rate, single-family homes within 180 days of the execution of the agreements to receive the housing incentives. The homes must be built with an energy-efficient design, with either a stucco or brick exterior.

Jeff Tucker can be reached at