H.R. 7243: Supporting Projects to Unleash Residential Housing Act

The Supporting Projects to Unleash Residential Housing Act, also known as the SPUR Housing Act, proposes to create a grant program administered by the Secretary of Housing and Urban Development (HUD). This program aims to financially support housing developers by helping them cover certain costs associated with building new housing developments.

Key Provisions of the Bill

• Establishment of a Grant Program: Within 90 days of the bill becoming law, HUD will set up a program to provide grants to developers specifically to offset:
• State and local taxes incurred during the construction of housing developments.
• Impact fees from state and local governments related to the housing development.
• Eligibility for Grants: Developers must apply for the grants and meet several criteria:
• They must secure all necessary approvals from state and local governments.
• They must obtain commitments from these governments to reduce property taxes on their developments by at least 50%.
• Selection Criteria: HUD will prioritize developers based on certain factors, including:
• Projects that increase affordable housing.
• Feasibility and ability to start construction within one year after application.
• Location in priority housing areas defined by housing market conditions.
• Developments that provide affordable or mixed-income housing.
• Proximity to public transit and employment centers.
• Use of infill sites within urban growth boundaries.
• Address workforce housing needs and include senior-friendly or accessible units.
• Utilization of existing structures for rehabilitation or adaptive reuse.
• Inclusion of supportive housing elements for vulnerable populations.
• Size of Grants: Grants will offer up to 50% of the state and local taxes and impact fees, capped at $150,000 per year for each developer.
• Duration of Grants: Once awarded, the grants will be available for five years, as long as the required local commitments are maintained.
• Funding Authorization: The bill authorizes $300 million annually from fiscal years 2027 through 2031 for the grant program.

Definitions

• Impact Fee: A charge by local governments imposed on new housing developments to help pay for necessary public infrastructure and services.
• Developer: A person or entity responsible for planning, financing, and overseeing the creation or redevelopment of real estate projects.
• Housing Development: A project involving the construction or rehabilitation of five or more residential housing units, including mixed-use developments.

Relevant Companies

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