Durbin, Cleaver Introduce The Spur Housing Act To Increase Housing Supply And Economic Development
The SPUR Housing Act would expand opportunities for emerging real estate developers and lower the cost of housing
WASHINGTON—U.S. Senate Democratic Whip Dick Durbin (D-IL) and U.S. Representative Emanuel Cleaver, II (D-MO-05), Ranking Member of the Financial Services Subcommittee on Housing and Insurance, jointly announced the introduction of the Sparking Production of Urban and Rural (SPUR) Housing Act. The SPUR Housing Act establishes a fund to increase the capacity of emerging developers – those with limited development experience and limited resources – who are undertaking affordable housing and community development projects. The funds are made available through the U.S. Department of Housing and Urban Development (HUD) in the form of competitive grants for nonprofit housing organizations and community development financial institutions (CDFIs) providing financing, capacity-building training, and technical assistance to eligible emerging developers.
“Despite there being more than 112,000 real estate development companies in the United States, only one percent are owned by Black and Latino developers. This great divide is spurred by unequal access to capital for minority developers, who often are competing against generational wealth. Many of these developers are subjected to onerous equity and experience requirements that make it nearly impossible for them to secure financial backing for their projects. The SPUR Housing Act levels the development playing field and gives Black and Latino developers the resources and experience they need to build and grow their own companies,” said Durbin.
“The road to lowering housing costs for the American people begins with the increase in construction of affordable housing,” said Cleaver. “Emerging developers, including many minority developers who have faced historical barriers to entry, need access to the tools and resources necessary to build affordable housing in their communities. By providing these developers with the support to pursue projects in rural and urban communities alike, we can create good-paying jobs, increase our national housing supply, and drive down prices for hardworking families. I’m proud to introduce the SPUR Housing Act with Senator Durbin as we fight to lower housing costs for communities in the heartland and all across this great nation.”
The SPUR Housing Act would establish an emerging developer fund to:
- Expand Financing Tools for Affordable Housing and Community Development Projects. Through predevelopment loans, loan loss reserves, grants, risk sharing, credit enhancements, and capitalized loan funds, SPUR Housing Act funds expand access to capital.
- Increase Access to Capacity-Building Training and Technical Assistance. Nonprofit housing organizations and CDFIs can use SPUR Housing Act funds to provide real estate development capacity building and ongoing technical assistance.
Emerging developers face a range of barriers to entry and growth including limited access to financing, challenges navigating regulatory and bureaucratic hurdles, and a lack of experience. The SPUR Housing Act aims to address these concerns by helping newer developers access the important financial and technical resources needed to catalyze revitalization and economic growth. Importantly, this legislation builds upon state and local models proven successful in supporting emerging developers addressing the housing and economic development needs of their communities.
Official text of the SPUR Housing Act is available here.
-30-