1. Lea County Housing Needs Study September 20, 2005

2. Study Performed by : Gruen, Gruen, and Associates For Lea County Housing, Inc.

3. Study Funding Sponsors:  Lea County, New Mexico  City of Hobbs, New Mexico  City of Eunice, New Mexico

4. Reasons for Housing Study  Pending Approval and Construction of the $ 1.4 billion NEF Project in Eunice that will bring 500 construction jobs and 200 permanent jobs to this area.  Expanded Tourist and support businesses being developed as a result of the Casino/Racetrack Complex.  Expanded Oil business and support services activity resulting from favorable oil prices.  Limited Housing Stock Availability.

5. Housing Study Finding:  The Total Projected Demand for New and Replacement Housing in Lea County between 2005 and 2020 is 5,200 units.  This housing demand is equivalent to 350 housing units per year.  Presently, approximately 50 homes per year are being constructed.

6. Housing Need Breakdown 2005 - 2020  City of Hobbs – 2,652 units  Lea County (outside cities) – 1,144 units  City of Lovington – 884 units  City of Eunice – 260 units  City of Jal – 208 units  City of Tatum – 52 units

7. Job Growth Projections:  Analyzed historical data and new business additions to project a 1% job growth rate per year. Total Employment is Projected below: 200520102020 23,02424,19826,730 To verify that this study is based on conservative assumptions, the total employment in Lea County from the NM DOL as of March, 2005 was 24,611, which is greater than the 2010 projection.

8. Need for Replacement of Aging Housing Percentage of Homes built prior to 1970 Lea County – 55 % HobbsLovingtonEuniceJalTatum 58 % 64 % 58 % 75 % 69 %

9. Mobile Homes as Housing Units Percentage of Mobile Homes in each Community HobbsLovingtonEuniceJalTatum 10.9 % 13.8 % 18.5 % 7.4 % 22.3 % Percentage of Mobile Homes in Lea County – 17.1 %

10. Projected Demand for “For Sale” Housing Units by Price Range Price Range 2005 - 2010 2010 - 2020 Less than $100,000 4561,128 $100,000 to $150,000 172427 $150,000 and above 6591,568 Total1,2873,123

11. Special Needs Housing: Disabled Population in Lea County Lea County EuniceHobbsJalLovingtonTatum Population * 49,8012,38623,3501,9038,470666 Number of Disabled People 7,0042573,6521871,261125 Percent of Disabled People 14.1 % 10.8 % 15.6 % 9.8 % 14.9 % 18.8 % * Refers to Population over the age of 5 The percentage of Disabled People in Lea County is 14.1 % The percentage of Disabled People in the U.S. is 14.9 %

12. Special Needs Housing: Senior Households in Lea County 200020102020 Lea County Households 19,69921,60224,359 Senior Households 4,4544,9626,267 New Senior Households -5081,305 Percentage of Senior Households 23 % 26 %

13. Total and Annual Housing Needs in Lea County: 2005-2020 2005 - 2010 2010 - 2020 Housing Units needed for new households 1,0492,757 Housing Units needed for Replacement 470940 Total Number of Housing Units Needed 1,5193,697 Number of Housing Units needed Per Year 304370

14. Projected Total and Special Housing Needs in Lea County: 2005-2020 2005 - 2010 2010 - 2020 Total Number of Housing Units Needed 1,5193,697 Number of Housing Units constructed for Disabled Residents 213518 Number of Housing Units constructed for use by Seniors 5081,305

15. QUESTIONS ?

16. Thank you for your sponsorship of this Study The Housing Study has been sent as a PDF file to the County Manager’s Office. The Housing Study has also been reproduced in the County Commission Packets for this Meeting. Thank you again for your support. With your help, LCHI is working to meet the Housing Needs of the entire Lea County Region.