Housing, Opportunity, Mobility, and Equity Act of 2019
This bill addresses zoning policies, housing affordability, and economic security.
Specifically, the bill requires each state or local government that receives a Community Development Block Grant from the Department of Housing and Urban Development or a Surface Transportation Block Grant from the Department of Transportation to develop and implement a strategy to support zoning policies or regulatory initiatives that create a more affordable, elastic, and diverse housing supply.
Additionally, the bill establishes a tax credit for individuals who spend more than 30% of their adjusted gross income on rent and requires the Department of the Treasury to make advance payments of this credit to eligible taxpayers who elect that option.
The bill also requires Treasury to establish a Rainy Day Savings Program to allow an eligible taxpayer to defer 20% of the amount that would otherwise be refunded to the taxpayer. Treasury must invest the deferred amount and later disburse that amount, along with any interest, to the taxpayer.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4808 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4808
To require Community Development Block Grant and Surface Transportation
Block Grant recipients to develop a strategy to support inclusive
zoning policies, to allow for a credit to support housing
affordability, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 23, 2019
Mr. Clyburn introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Financial Services, and Transportation and Infrastructure, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To require Community Development Block Grant and Surface Transportation
Block Grant recipients to develop a strategy to support inclusive
zoning policies, to allow for a credit to support housing
affordability, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing, Opportunity, Mobility, and
Equity Act of 2019''.
SEC. 2. REQUIREMENT FOR CDBG GRANTEES.
Section 104 of the Housing and Community Development Act of 1974
(42 U.S.C. 5304) is amended by adding at the end the following:
``(n) Strategy To Increase the Affordable Housing Stock.--
``(1) In general.--Each grantee receiving assistance under
this title shall--
``(A) include in the consolidated plan required
under part 91 of title 24, Code of Federal Regulations
(or any successor thereto) a strategy to support new
inclusive zoning policies, programs, or regulatory
initiatives that create a more affordable, elastic, and
diverse housing supply and thereby increase economic
growth and access to jobs and housing; and
``(B) implement the strategy described in
subparagraph (A) and demonstrate continuous progress in
advancing the goals described in section (2)(A), and
include such implementation and progress in the annual
performance report submitted under section 91.520 of
title 24, Code of Federal Regulations (or any successor
thereto).
``(2) Inclusions.--The strategy under paragraph (1) shall--
``(A) demonstrate--
``(i) transformative activities in
communities that--
``(I) reduce barriers to housing
development, including affordable
housing; and
``(II) increase housing supply
affordability and elasticity; and
``(ii) strong connections between housing,
transportation, and workforce planning;
``(B) include, as appropriate, policies relating to
inclusive land use, such as--
``(i) for the purpose of adding affordable
units, increasing both the percentage and
absolute number of affordable units--
``(I) authorizing high-density and
multifamily zoning;
``(II) eliminating off-street
parking requirements;
``(III) establishing density
bonuses, defined as increases in
permitted density of a housing
development conditioned upon the
inclusion of affordable housing in such
development;
``(IV) streamlining or shortening
permitting processes and timelines;
``(V) removing height limitations;
``(VI) establishing by-right
development, defined as the elimination
of discretionary review processes when
zoning standards are met;
``(VII) using property tax
abatements; and
``(VIII) relaxing lot size
restrictions;
``(ii) prohibiting source of income
discrimination;
``(iii) taxing vacant land or donating
vacant land to nonprofit developers;
``(iv) allowing accessory dwelling units;
``(v) establishing development tax or value
capture incentives; and
``(vi) prohibiting landlords from asking
prospective tenants for their criminal history;
and
``(C) provide that affordable housing units should,
to the maximum extent practicable and unless alternate
policies would result in more rapid progress toward and
achievement of the goals described in paragraph
(2)(A)--
``(i) be designated as affordable for the
useful life of the units;
``(ii) a proportion of the new housing
stock in the community that equals or exceeds
the percentage of the population of the
community requiring such units in order to not
be an eligible individual under section 36A of
the Internal Revenue Code of 1986 (as added by
section 4 of the Housing, Opportunity,
Mobility, and Equity Act of 2019); and
``(iii) be accessible to the population
served by the program established under this
title; and
``(D) where applicable, specify how the strategy
will increase affordable housing options for
individuals living in rural areas, persistent poverty
counties (defined as any county with a poverty rate of
at least 20 percent, as determined in each of the 1990
and 2000 decennial censuses, and in the Bureau of the
Census's Small Area Income and Poverty Estimates for
the most recent year for which the estimates are
available), and high-poverty areas (defined as any
census tract with a poverty rate of at least 20 percent
as measured by the 5-year data series available from
the American Community Survey of the Census Bureau for
2013 to 2017).''.
SEC. 3. REQUIREMENT FOR SURFACE TRANSPORTATION BLOCK GRANT PROGRAM.
Section 133 of title 23, United States Code, is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following:
``(i) Implementation of Affordable Housing Strategy.--A project
under this section may not be carried out unless the community in which
the project is located has implemented a strategy to increase
affordable housing stock as described in subsection (n) of section 104
of the Housing and Community Development Act of 1974 (42 U.S.C.
5304).''.
SEC. 4. REFUNDABLE CREDIT FOR RENT COSTS OF ELIGIBLE INDIVIDUALS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36 the following new section:
``SEC. 36A. RENT COSTS OF ELIGIBLE INDIVIDUALS.
``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by this subtitle
for the taxable year an amount equal to the excess of--
``(1) the lesser of--
``(A) the small area fair market rent (or, if the
small area fair market rent is not available, the fair
market rent), including the utility allowance,
published by the Department of Housing and Urban
Development for purposes of the housing choice voucher
program under section 8(o) of the United States Housing
Act of 1938--
``(i) in the case of a household comprised
of one individual, for an efficiency, and
``(ii) in the case of a household comprised
of more than one individual, for a residence in
which the number of bedrooms would not
require--
``(I) more than two members of the
household to share a bedroom,
``(II) children of different
genders to share a bedroom with one
another, or
``(III) a household member with a
disability requiring medical equipment
to share a bedroom, or
``(B) the rent paid during the taxable year by the
individual (and, if married, the individual's spouse)
for the principal residence of the individual, over
``(2) an amount equal to 30 percent of the adjusted gross
income of the taxpayer for the taxable year.
``(b) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means any
individual if the rent paid during the taxable year by the
individual (and, if married, the individual's spouse) for the
principal residence of the individual exceeds 30 percent of the
adjusted gross income of the taxpayer for the taxable year.
``(2) Exceptions.--Such term shall not include any
individual if--
``(A) the individual does not include on the return
of tax for the taxable year such individual's taxpayer
identification number and, if married, the taxpayer
identification number of such individual's spouse, or
``(B) a deduction under section 151 with respect to
such individual is allowable to another taxpayer for
the taxable year.
``(3) Married individuals.--Such term shall include an
individual who is married only if a joint return is filed for
the taxable year.
``(4) Special rules.--
``(A) Principal residence.--The term `principal
residence' has the same meaning as when used in section
121.
``(B) Married.--Marital status shall be determined
under section 7703.
``(c) Rent.--For purposes of this section, rent paid includes any
amount paid for utilities of a type taken into account for purposes of
determining the utility allowance under section 42(g)(2)(B)(ii).
``(d) Coordination With Certain Means-Tested Programs.--Rules
similar to the rules of section 32(l) shall apply to refunds made by
reason of this section.
``(e) Reconciliation of Credit and Advance Payments.--The amount of
the credit allowed under this section for any taxable year shall be
reduced (but not below zero) by the aggregate amount of any advance
payments of such credit under section 7527A for such taxable year.''.
(b) Advance Payment of Rental Costs Tax Credit.--
(1) In general.--Chapter 77 of the Internal Revenue Code of
1986 is amended by inserting after section 7527 the following
new section:
``SEC. 7527A. ADVANCE PAYMENT OF RENTAL COSTS TAX CREDIT.
``(a) In General.--Not later than 6 months after the date of the
enactment of the Housing, Opportunity, Mobility, and Equity Act of
2019, the Secretary shall establish a program for making advance
payments of the credit allowed under section 36A on a monthly basis
(determined without regard to subsection (e) of such section) to any
taxpayer who--
``(1) the Secretary has determined, in the manner provided
in subsection (c), will be allowed such credit for the taxable
year, and
``(2) has made an election under subsection (d).
``(b) Amount of Advance Payment.--
``(1) In general.--For purposes of subsection (a), the
amount of the monthly advance payment of the credit provided to
a taxpayer during the applicable period shall be equal to the
lesser of--
``(A) an amount equal to--
``(i) the amount of the credit which the
Secretary has estimated, in the manner provided
in subsection (c), will be allowed to such
taxpayer under section 36A for the taxable year
ending in such applicable period, divided by
``(ii) 12, or
``(B) such other amount as is elected by the
taxpayer.
``(2) Applicable period.--For purposes of this section, the
term `applicable period' means the 12-month period from the
month of July of the taxable year through the month of June of
the subsequent taxable year.
``(c) Manner of Determining Eligibility.--The Secretary shall
determine eligibility for the credit under section 36A, and the
estimated amount of such credit, based on the taxpayer's adjusted gross
income for the preceding taxable year, the mean fair market rental
amount with respect to the individual for such preceding year, and the
rent paid during such preceding year by the individual (and, if
married, the individual's spouse) for the principal residence of the
individual. Any terms used in this subsection which are also used in
section 36A shall have the same meaning as when used in such section.
``(d) Election of Advance Payment.--A taxpayer may elect to receive
an advance payment of the credit allowed under section 36A for any
taxable year by including such election on a timely filed return for
the preceding taxable year.
``(e) Internal Revenue Service Notification.--The Internal Revenue
Service shall take such steps as may be appropriate to ensure that
taxpayers who are eligible to receive the credit under section 36A are
aware of the availability of the advance payment of such credit under
this section.
``(f) Authority.--The Secretary may prescribe such regulations or
other guidance as may be appropriate or necessary for the purposes of
carrying out this section.''.
(c) Clerical Amendments.--
(1) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36
the following new item:
``Sec. 36A. Rent costs of eligible individuals.''.
(2) The table of sections for chapter 77 of such Code is
amended by inserting after the item relating to section 7527
the following new item:
``Sec. 7527A. Advance payment of rental costs tax credit.''.
(d) Conforming Amendment.--Section 6211(b)(4)(A) of the Internal
Revenue Code of 1986 is amended by inserting ``, 36A'' after ``36''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
(f) Report.--Not later than 2 years after the date of the enactment
of this Act, the Secretary of the Treasury shall submit to Congress a
report on the credit allowed under section 36A of the Internal Revenue
Code of 1986 (as added by subsection (a)) and the advance payment of
such credit under section 7527A of such Code (as added by subsection
(b)), including on whether taxpayers are fraudulently claiming such
credit or advance payments.
SEC. 5. REFUND TO RAINY DAY SAVINGS PROGRAM.
(a) In General.--Not later than December 31, 2018, the Secretary of
the Treasury or the Secretary's delegate (referred to in this section
as the ``Secretary'') shall establish and implement a program (referred
to in this section as the ``Refund to Rainy Day Savings Program'') to
allow a participating taxpayer, pursuant to the requirements
established under this section, to defer payment on 20 percent of the
amount which would otherwise be refunded to such taxpayer as an
overpayment (as described in section 6401 of the Internal Revenue Code
of 1986).
(b) Period of Deferral.--Except as provided under subsection
(c)(5), a participating taxpayer may elect to defer payment of the
amount described in subsection (a) and have such amount deposited in
the Rainy Day Fund (as described in subsection (c)).
(c) Rainy Day Fund.--
(1) In general.--The Secretary shall establish a fund, in
such manner as the Secretary determines to be appropriate, to
be known as the ``Rainy Day Fund'', consisting of any amounts
described in subsection (a) on which payment has been deferred
by participating taxpayers.
(2) Investment.--Any amounts deposited in the Rainy Day
Fund shall be invested by the Secretary, in coordination with
the Bureau of the Fiscal Service of the Department of the
Treasury, in United States Treasury bills issued under chapter
31 of title 31, United States Code, with maturities suitable
for the needs of the Fund and selected so as to provide the
highest return on investment for participating taxpayers.
(3) Disbursements from fund.--
(A) In general.--On the date that is 180 days after
receipt of the individual income tax return of a
participating taxpayer, the amounts in the Rainy Day
Fund shall be made available to the Secretary to
distribute to such taxpayer in an amount equal to the
amount deferred by such taxpayer under subsection (a)
and any interest accrued on such amount (as determined
under paragraph (4)).
(B) Distributed to bank account.--The amounts
described in subparagraph (A) shall be distributed to
the bank account identified by the participating
taxpayer under subsection (d)(3).
(4) Interest accrued.--The amount of interest accrued on
the amount deferred by a participating taxpayer under
subsection (a) shall be determined by the Secretary, in
coordination with the Bureau of the Fiscal Service of the
Department of the Treasury, based upon the return on the
investment of such amounts under paragraph (2).
(5) Early withdrawal.--
(A) In general.--On any date during the period
between the date which is 30 days after receipt by the
Secretary of the individual income tax return of the
participating taxpayer and October 15 of the applicable
year, such taxpayer may elect to terminate the deferral
of the amount described under subsection (a) and
receive a distribution from the Rainy Day Fund equal to
such amount and any interest which has accrued on such
amount up to that date.
(B) Complete withdrawal.--A participating taxpayer
making an election under subparagraph (A) must
terminate deferral of the full amount described under
subsection (a), and such amount shall be distributed to
the bank account identified by the participating
taxpayer under subsection (d)(3).
(d) Participating Taxpayer.--For purposes of this section, the term
``participating taxpayer'' means a taxpayer who--
(1) has not requested or received an extension of the time
for payment of taxes for such taxable year under section 6161
of the Internal Revenue Code of 1986;
(2) prior to the due date for filing the return of tax for
such taxable year, elects to participate in the Refund to Rainy
Day Savings Program; and
(3) provides the Secretary with a bank account number and
any other financial information deemed necessary by the
Secretary for purposes of paragraphs (3)(B) and (5)(B) of
subsection (c).
(e) Forms.--The Secretary shall ensure that the election to defer
payment of the amount described in subsection (a) may be claimed on
Forms 1040, 1040A, and 1040EZ.
(f) Implementation.--
(1) Educational materials and outreach.--The Secretary
shall--
(A) design educational materials for taxpayers
regarding financial savings and the Refund to Rainy Day
Savings Program;
(B) publicly disseminate and distribute such
materials during the first calendar quarter of each
calendar year and following disbursement of amounts
described in subsection (c)(3); and
(C) engage in outreach regarding the Refund to
Rainy Day Savings Program to the Volunteer Income Tax
Assistance program and paid tax preparers.
(2) Information for participating taxpayers.--The Secretary
shall ensure that a participating taxpayer is able to
electronically verify the status of the amount deferred by such
taxpayer under subsection (a), including any interest accrued
on such amount and the status of any distribution.
(3) Federally funded benefits.--Any amounts described in
subsection (a) which are distributed to a participating
taxpayer, including any interest accrued on such amount, shall
be treated in the same manner as any refund made to such
taxpayer under section 32 of the Internal Revenue Code of 1986
for purposes of determining the eligibility of such taxpayer
for benefits or assistance, or the amount or extent of benefits
or assistance, under any Federal program or under any State or
local program financed in whole or in part with Federal funds.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
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