The Hobbs City Commission unanimously approved Resolution 7673, a development agreement with Stewart Homes LLC to support market‑rate single‑family housing, Tom Randall told the commission. The agreement authorizes a maximum city subsidy of $300,000, which staff said equates to up to $15,000 per unit at the maximum subsidy level described in the presentation.
Tom Randall, a city staff member presenting the item, framed the agreement within the city’s broader housing initiatives, noting that since 2012 officials said about 2,488 affordable housing units have been produced with a city contribution of about $8.1 million. He said nearly 1,200 single‑family units have been produced under past programs and that city participation for apartment projects has focused on public infrastructure reimbursement rather than full development costs.
Randall also presented economic figures tied to prior work: roughly $7.9 million in gross receipts tax (GRT) generated from related development, a GRT rate cited as 2.6625, and an annual property‑tax yield of about $383,000 for the city with a county share cited at roughly $680,000. He said nearly $31 million has been earmarked or allocated historically for housing incentives and about $22 million spent to date; staff noted some projects did not fully use allocated funds.
Commission discussion included location context: Randall pointed to the Stewart/Trinity development area north of Stone where infrastructure work is underway and where the new middle school site is located. Commissioner Mills seconded the motion to approve; Miss Fletcher recorded a unanimous yes vote from Commissioners Smith, Mills, Fields, Calderon and Girth and Mayor Sam D. Cobb.
The resolution approves the development agreement as presented. Randall said additional details about phases and infrastructure financing will be addressed through ongoing staff processes and future agenda items.