S. 2915: Sparking Production of Urban and Rural Housing Act

This bill, known as the Sparking Production of Urban and Rural Housing Act (SPUR Housing Act), intends to create a new program managed by the Secretary of Housing and Urban Development (HUD) that aims to support the development of affordable housing particularly through emerging developers. Here are the key points of the bill:

Establishment of the Emerging Developer Fund Program

The bill mandates the Secretary of HUD to establish an emerging developer fund program within one year of the bill's enactment. This program will provide competitive grants to nonprofit housing organizations and community development financial institutions (CDFIs).

Purpose of the Grants

The grants awarded under this program must be used for several specific purposes, including:

• Providing financing options for emerging developers who are working on affordable housing and community development projects.
• Offering predevelopment loans, loan loss reserves, grants, risk sharing, and credit enhancements.
• Capitalizing a fund dedicated to supporting affordable housing projects by emerging developers.
• Providing training and technical assistance to these developers.

Eligibility and Application Process

To apply for a grant, nonprofit organizations and CDFIs must submit an application that demonstrates their capacity to provide:

• Comprehensive training and technical assistance for emerging developers.
• Details about their past work in developing housing projects.

Criteria for Grant Awards

The Secretary will evaluate grant applications based on the ability to:

• Identify the specific needs for development capacity in local communities, especially for emerging developers focused on affordable housing in distressed areas.
• Provide ongoing real estate development assistance, covering topics such as budgeting, financing needs, securing funding sources, and navigating loan terms.
• Contribute to the development of affordable lending products.
• Facilitate mentoring and partnerships with educational institutions to offer relevant coursework and resources.
• Track outcomes related to the funded projects, such as loans provided and areas served.

Prioritization Criteria

When awarding grants, priority will be given to organizations that:

• Assist undercapitalized or inexperienced emerging developers focusing on affordable housing in distressed and high opportunity areas.
• Demonstrate a history of supporting emerging developers.

Funding Authorization

The bill proposes to authorize $50 million annually for the five fiscal years from 2026 through 2030 to support this program.

Coordination with Other Federal Agencies

The Secretary is also required to coordinate with the Secretary of the Treasury to ensure that the emerging developer fund program aligns with requirements of similar programs under existing laws.

Relevant Companies

• HD (The Home Depot, Inc.): As a major supplier of building materials, Home Depot could see increased demand for its products as new affordable housing projects are funded.
• DHI (D.R. Horton, Inc.): As a homebuilding company, D.R. Horton may benefit from increased projects resulting from the grants provided under this program.
• PHM (PulteGroup, Inc.): Another major homebuilder that could experience increased business opportunities through emerging development projects focused on affordable housing.