HR7243-119

What This Bill Does

The SPUR Housing Act directs HUD to establish a grant program within 90 days to help developers offset State and local taxes and impact fees tied to building housing developments. Developers must apply in the form HUD requires, have all State and local approvals needed for the development, and secure commitments from the State and local governments with jurisdiction to reduce property taxes on the housing development by at least 50 percent. HUD must prioritize projects that increase affordable housing, are feasible, can begin construction within one year after application, are in priority housing areas identified using housing-market indicators and severe housing-cost-burden data from the American Community Survey, offer affordable or mixed-income housing, are transit-oriented or near employment hubs, use infill sites within urban growth boundaries, target workforce housing needs, include senior-friendly and accessible units, use adaptive reuse or rehabilitation, or include supportive housing for vulnerable populations. Annual grants equal the lesser of 50 percent of the relevant taxes and impact fees or $150,000, and selected developers can receive grants for five years if local commitments remain in place.

Who Benefits and How

Affordable housing developers, mixed-income housing developers, workforce housing builders, seniors needing accessible units, vulnerable populations needing supportive housing, transit-oriented communities, and renters in high-cost areas benefit from grants that offset taxes and impact fees while pushing State and local governments to reduce property taxes on eligible developments. HUD gains a tool to target severe housing-cost-burden areas using Census data.

Who Bears the Burden and How

HUD grant staff, State governments, local governments, developers, local tax officials, and federal taxpayers face application review, approval verification, property-tax commitment monitoring, priority scoring, five-year grant administration, and budget costs. Developers must obtain all local approvals and property-tax reduction commitments before qualifying, and State or local governments must accept lower property-tax collections for supported projects.

Key Provisions

• Creates a HUD grant program within 90 days to offset housing-development taxes and impact fees.
• Requires developers to have all State and local approvals before receiving grants.
• Requires State and local commitments to reduce related property taxes by at least 50 percent.
• Prioritizes feasible affordable, mixed-income, transit-oriented, infill, workforce, senior-friendly, accessible, adaptive-reuse, and supportive housing projects.
• Caps annual grants at the lesser of 50 percent of covered taxes and impact fees or $150,000.
• Provides grants for up to five years if property-tax reduction commitments remain in place.