Congresswoman Janelle Bynum (OR-05), alongside Congressman Chris Pappas (NH-01), recently introduced the Supporting Projects to Unleash Residential (SPUR) Housing Act, a legislative proposal aimed at reducing the cost of building new housing across the country by offsetting local and state-imposed development fees.
By addressing regulatory and financial barriers at the local level, the bill aims to create a stronger foundation for expanding housing supply, accelerating development timelines, and easing the homeownership path for working families.
The SPUR Housing Act would establish a five-year, $1.5 billion grant program administered by the U.S. Department of Housing and Urban Development (HUD). Under the proposed legislation, housing developers could receive grants to offset state and local taxes and impact fees associated with constructing new housing developments. To qualify, participating states and local jurisdictions must match at least 50 percent of the relief provided through reduced fees or taxes.
“Oregon has the second-highest average development costs in the country, with an average cost of $16,712 per household in 2019,” said Bynum. “First-time home buyers should not have to wait 20-plus years to afford a home. This bill will make crucial progress toward making it easier, faster, and more affordable to build a home. I will keep working to make sure that any Oregonian who wants to buy a home can buy a home.”
The legislation would target one of the biggest drivers of housing unaffordability: the rising cost of fees and permitting. By creating a direct mechanism to offset those costs while incentivizing local governments to participate, the bill seeks to streamline the building process and deliver long-term supply-side relief.
To be eligible for grant funding, developers must apply to HUD and meet criteria including securing all required state and local approvals and demonstrating that the relevant jurisdictions have committed to reducing property taxes on the housing project by at least 50 percent.
HUD would prioritize projects that:
• Deliver affordable or mixed-income housing
• Are shovel-ready within one year of application
• Are located in high-need housing markets
• Support transit access or employment centers
• Involve infill development, adaptive reuse or senior-friendly design
• Include supportive housing components for vulnerable populations
Developers selected for the program would receive annual grants equal to either 50 percent of the total state and local fees and taxes associated with the development, or $150,000 — whichever is less. The grants would span up to five years, contingent on continued local and state commitments.
“Addressing the shortage of affordable housing should be a top priority of everyone in Congress,” said Pappas. “I’m committed to finding common-sense ideas that will increase supply and lower costs. I’m pleased to introduce this legislation which creates a new grant program to reduce building project costs and speed the development of new housing.”
The bill is part of Bynum’s broader K-30 initiative, a 16-bill package focused on improving public education, strengthening the job market, and lowering housing costs. Other proposals in the package aim to address workforce shortages, expand pathways to homeownership, and tackle structural barriers to affordability across the housing sector.
The legislation has earned early support from national housing advocates, including the National Association of Realtors.
If enacted, the SPUR Housing Act would authorize $500 million annually between fiscal year 2026 and 2031 to fund the HUD-administered program.
Bynum, who previously served in the Oregon State Legislature, has consistently advocated for policy solutions that promote housing equity, economic opportunity, and generational wealth-building for working families.
“This is about creating systems that reward responsible development and put more homes within reach for the people who need them most,” said Bynum. “We have to do more than just call housing a crisis — we need to pass real solutions.”
