Rep. Cleaver, Senator Durbin Introduce the SPUR Housing Act to Increase Housing Supply and Economic Development

(Washington, D.C.) - Today, U.S. Representative Emanuel Cleaver, II (D-MO), Ranking Member of the Financial Services Subcommittee on Housing and Insurance, and U.S. Senator Dick Durbin (D-IL) 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 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. 

“The road to lowering housing costs for the American people begins with the increase in construction of affordable housing,” said Congressman 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.”

“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 Senator Durbin.

"The communities we serve at Cinnaire — rural and urban alike — share an urgent need for increased affordable housing options," said Chris Neary, Senior Vice President for Policy, Research and Advocacy at Cinnaire. "The Sparking Production of Urban and Rural (SPUR) Housing Act would tap into the unlocked potential of these communities to create the affordable homeownership and rental opportunities they need to thrive. We applaud Congressman Cleaver for introducing this legislation to address the housing crisis."

“The Local Initiatives Support Corporation (LISC) applauds Representative Cleaver for introducing the Sparking Production of Urban and Rural (SPUR) Housing Act. Our experience has shown us that emerging real estate developers need more access to training, technical assistance, and flexible financial capital to scale their affordable housing and real estate development work, especially in underserved communities,” said Geoff Jolley, Executive Director at LISC Greater Kansas City. “The SPUR Housing Act will provide the resources necessary to build their capacity, which will create desperately needed housing, spurring jobs, economic development, and broader neighborhood revitalization.” 

“As a nationally recognized leader bridging commercial real estate, community and civic partnerships, I commend Congressman Cleaver’s leadership on the SPUR Housing Act,” said Kimberly Brown, Managing Partner at Housing Impact Partners. “My work has shown that when emerging developers have access to capital and supportive policy, they create housing and economic opportunities that organically strengthen our historically underestimated communities.”

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.

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone, and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.