H.R. 6737: Sparking Production of Urban and Rural Housing Act

The bill, titled the "Sparking Production of Urban and Rural Housing Act" or "SPUR Housing Act," aims to enhance affordable housing development by establishing an Emerging Developer Fund Program under the Secretary of Housing and Urban Development (HUD). Below are the key components of what the bill would do:

Program Establishment

The Secretary of HUD is tasked with setting up an Emerging Developer Fund Program within one year of the bill's enactment. This program will provide competitive grants specifically to nonprofit housing organizations and community development financial institutions (CDFIs). These grants are intended to support the financing of affordable housing projects and community development initiatives.

Use of Funds

Organizations and institutions that receive funding from this program must apply the funds to:

• Provide financing to emerging developers for affordable housing projects, which may include:
• Predevelopment loans
• Loan loss reserves
• Grants
• Risk sharing
• Credit enhancements, such as interest rate buy downs
• Capitalize a fund to support affordable housing projects undertaken by emerging developers.
• Offer capacity-building training and technical assistance programs to emerging developers.
• Engage in any other uses approved by the Secretary.

Grant Application Process

Nonprofit housing organizations and CDFIs applying for grants must submit an application that demonstrates their plans for providing training, technical assistance, and financing to emerging developers, along with details about their past work.

Grant Award Criteria

The Secretary will award grants based on the applicants' ability to:

• Identify and quantify the need for development capacity in their target community.
• Provide comprehensive real estate development capacity building and ongoing technical assistance.
• Offer affordable lending products for housing and community development projects.
• Provide mentoring and networking opportunities for emerging developers.
• Build partnerships with educational institutions to offer relevant courses and resources.
• Track program outcomes, such as the number of loans made and geographic areas served.

Priority Consideration

When awarding grants, priority will be given to organizations that support emerging developers with limited experience, are undercapitalized, or focus on affordable housing projects in distressed communities or high opportunity areas.

Funding Limitations

No organization can receive more than 15% of the total appropriated funding for the program in any given year.

Coordination with Other Agencies

The Secretary will coordinate with the Secretary of the Treasury to align this program with similar requirements from the Community Development Financial Institutions Fund.

Authorization of Appropriations

The bill authorizes $50 million annually from fiscal years 2026 through 2030 to support the initiatives outlined in this program.

Relevant Companies

None found.