H.R. 6737 — SPUR Housing Act

This section defines key terms for purposes of the Act as follows: (1) community development financial institution, meaning an institution certified as such by the Secretary of the Treasury under the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702); (2) distressed community, meaning a qualified census tract under section 42(d)(5)(B)(ii) of the Internal Revenue Code (i.e., census tracts with poverty rates of at least 25% or median family incomes at or below 80% of the area median); (3) high opportunity area, as defined in 12 C.F.R. 1282.1 or successor regulation (i.e., census tracts with low poverty, high performing schools, labor market engagement, and low vacancy rates, per FHFA duty-to-serve rules); (4) emerging developer, meaning a developer with limited real estate development experience and limited liquidity or net worth, or other qualifications determined appropriate by the Secretary of Housing and Urban Development; (5) institution of higher education and part B institution, as defined in sections 101 and 322, respectively, of the Higher Education Act of 1965 (i.e., part B institutions are historically Black colleges and universities); and (6) Secretary, meaning the Secretary of Housing and Urban Development.

This section establishes an emerging developer fund program, requiring the Secretary of Housing and Urban Development to provide competitive grants to nonprofit housing organizations and community development financial institutions (CDFIs) not later than one year after enactment of this Act. Grant recipients must use funds (1) to finance affordable housing and community development projects by emerging developers through predevelopment loans, loan loss reserves, grants, risk sharing, and credit enhancements (e.g., interest rate buydowns); (2) to capitalize related funds; (3) to provide capacity-building training and technical assistance; or (4) for other Secretary-approved uses. Grant applications must demonstrate plans for comprehensive training, technical assistance, and financing, along with the applicant's past work. Awards are based on the applicant's ability to (1) identify capacity-building needs among emerging developers, including in distressed communities; (2) deliver technical assistance on project budgeting, financing, tax credit applications (i.e., section 42 low-income housing tax credits), capital stacks, loan terms, business planning, bidding, financial statements, and bonding; (3) offer affordable lending products; (4) provide mentoring and networking; (5) partner with higher education institutions (e.g., community colleges and part B institutions) for real estate development coursework; (6) extend post-curriculum assistance; and (7) track outcomes such as loans originated, development costs, areas served, and borrower income streams. The Secretary must prioritize applicants serving inexperienced or undercapitalized emerging developers focused on distressed or high-opportunity communities and those with a history of such support. No single award may exceed 15% of the amount appropriated under subsection (h), which authorizes $50 million for each of FY2026 through FY2030. The Secretary must coordinate with the Secretary of the Treasury to align the program with the Community Development Financial Institutions Fund.