SPUR Housing Act

## Summary The Sparking Production of Urban and Rural Housing (SPUR Housing) Act would create a new program within the Department of Housing and Urban Development (HUD) to support emerging real estate developers, particularly those focused on affordable housing in underserved areas. HUD would establish an “emerging developer fund program” to award competitive grants to nonprofit housing organizations and certified community development financial institutions (CDFIs). These groups would use the funds to provide financing (e.g., loans, grants, credit enhancements), training, and technical assistance to help new developers navigate challenges like budgeting, securing capital, and preparing tax credit applications. Grants would also prioritize partnerships with colleges and universities to offer real estate coursework and mentorship. The program aims to boost affordable housing development in distressed communities and high-opportunity areas by addressing barriers faced by inexperienced or undercapitalized developers. ## Key Points - Program Creation: HUD must establish a competitive grant program within one year of enactment to fund nonprofits and CDFIs supporting emerging developers. - Eligible Uses: Funds can finance affordable housing projects (via predevelopment loans, grants, or risk-sharing), build developer capacity, and provide training or technical assistance. - Application Requirements: Applicants must demonstrate plans for training/financing and share their history of work with emerging developers. - Priority Criteria: Grants prioritize groups assisting developers with limited experience or resources, especially those targeting distressed or high-opportunity areas. - Funding: $50 million annually from 2026–2030 is authorized, with no single recipient getting more than 15% of yearly funds. ## Impact Areas - Emerging Developers: First-time or small-scale developers lacking experience or capital gain access to resources and mentorship. - Distressed Communities: Low-income or economically struggling areas could see increased affordable housing and revitalization efforts. - Nonprofits and CDFIs: Housing organizations and financial institutions receive federal support to expand their role in community development. - Education Partnerships: Community colleges and universities collaborate to offer real estate training, creating pathways for aspiring developers. - Federal Coordination: HUD and Treasury must align reporting requirements with existing CDFI Fund rules to reduce administrative burdens. *Technical terms explained*: - CDFI: A certified financial institution that serves underserved communities. - Predevelopment Loans: Funds to cover early costs (e.g., planning, permits) before construction begins. - Section 42 Tax Credits: Federal incentives for affordable rental housing projects. - Distressed Community: A census tract with high poverty or low income, as defined by tax code. - High Opportunity Area: Regions with access to strong schools, jobs, and services, as defined by HUD.