HOBBS, N.M. (AP) — A southeastern region of New Mexico facing a housing shortage thanks to a Permian Basin oil boom has seen several planned projects fall through.
The Hobbs News-Sun reports (http://bit.ly/14Y8qZs) that a number of affordable housing projects in recent months have fizzled in Hobbs and Lea County despite the pressing demand for housing near the Texas border.
For example, a planned 60-home, 12-acre mobile home park that sought to bring homes selling at less than $100,000 fell through last month due to a lack of financing. "I was having challenges getting the financing secured. That is what killed it," Albuquerque developer Tony Lopes said of his planned Willow Creek subdivision. "The banks out here in Albuquerque were unwilling to loan on something that was 'too speculative.'"
Meanwhile, a proposed 60-unit affordable senior living apartment complex in Jal and Eunice flopped earlier this year when the developer, Chelsea Investment Corp., didn't secure state tax credits.
A similar problem plagued Albuquerque-based YES! Housing and a planned 72-unit affordable apartment complex near City Park in Hobbs. YES! also failed to win a bid for highly-competitive state tax credits.