I 
115TH CONGRESS 
2D SESSION 
H. R. 7050 
To require Community Development 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 9, 2018 
Mr. CLYBURN introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To require Community Development 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 Representa-
tives 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 2018’’. 
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SEC. 2. REQUIREMENT FOR CDBG GRANTEES. 
Section 104 of the Housing and Community Develop-
ment 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 as-
sistance under this title shall— 
‘‘(A) include in the consolidated plan re-
quired under part 91 of title 24, Code of Fed-
eral Regulations (or any successor thereto) a 
strategy to support new inclusive zoning poli-
cies, 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) include in the annual performance re-
port submitted under section 91.520 of title 24, 
Code of Federal Regulations (or any successor 
thereto) the progress and implementation of the 
strategy described in subparagraph (A). 
‘‘(2) INCLUSIONS.—The strategy under para-
graph (1) shall— 
‘‘(A) demonstrate— 
‘‘(i) transformative activities in com-
munities that— 
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‘‘(I) reduce barriers to housing 
development, 
including 
affordable 
housing; and 
‘‘(II) increase housing supply af-
fordability and elasticity; and 
‘‘(ii) strong connections between hous-
ing, transportation, and workforce plan-
ning; 
‘‘(B) include, as appropriate, policies relat-
ing to inclusive land use, such as— 
‘‘(i) for the purpose of adding afford-
able units, increasing both the percentage 
and absolute number of affordable units— 
‘‘(I) authorizing high-density and 
multifamily zoning; 
‘‘(II) eliminating off-street park-
ing requirements; 
‘‘(III) establishing density bo-
nuses; 
‘‘(IV) streamlining or shortening 
permitting processes and timelines; 
‘‘(V) removing height limitations; 
‘‘(VI) establishing by-right devel-
opment; 
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‘‘(VII) using property tax abate-
ments; and 
‘‘(VIII) relaxing lot size restric-
tions; 
‘‘(ii) prohibiting source of income dis-
crimination; 
‘‘(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 ask-
ing prospective tenants for their criminal 
history; and 
‘‘(C) provide that affordable housing units 
should, to the maximum extent practicable— 
‘‘(i) be designated as affordable for 
not less than 30 years; 
‘‘(ii) comprise not less than 20 per-
cent of the new housing stock in the com-
munity; and 
‘‘(iii) be accessible to the population 
served by the program established under 
this title.’’. 
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SEC. 3. REFUNDABLE CREDIT FOR RENT COSTS OF ELIGI-
BLE INDIVIDUALS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 36 the fol-
lowing new section: 
‘‘SEC. 36A. RENT COSTS OF ELIGIBLE INDIVIDUALS. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, 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 mean fair market rental amount 
with respect to the individual, or 
‘‘(B) the rent paid during the taxable year 
by the individual (and, if married, the individ-
ual’s spouse) for the principal residence of the 
individual, over 
‘‘(2) an amount equal to 30 percent of the ad-
justed gross income of the taxpayer for the taxable 
year. 
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means any individual if the rent paid during 
the taxable year by the individual (and, if married, 
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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 the rule published in the Federal Register on No-
vember 16, 2016 (81 Fed. Reg. 80567), for the same area 
and a comparable rental unit as the individual’s principal 
residence. 
‘‘(d) 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).’’. 
(b) CLERICAL AMENDMENT.—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 in-
serting after the item relating to section 36 the following 
new item: 
‘‘Sec. 36A. Rent costs of eligible individuals.’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
6211(b)(4)(A) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘, 36A’’ after ‘‘36’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
(e) 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 
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under section 36A of the Internal Revenue Code of 1986 
(as added by subsection (a)), including on whether tax-
payers are fraudulently claiming such credit. 
SEC. 4. REFUND TO RAINY DAY SAVINGS PROGRAM. 
(a) IN GENERAL.—Not later than December 31, 
2018, the Secretary of the Treasury or the Secretary’s del-
egate (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 require-
ments established under this section, to defer payment on 
20 percent of the amount which would otherwise be re-
funded 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 sub-
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section (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 Sec-
retary, 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 in-
terest 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 identi-
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fied by the participating taxpayer under sub-
section (d)(3). 
(4) INTEREST ACCRUED.—The amount of inter-
est accrued on the amount deferred by a partici-
pating taxpayer under subsection (a) shall be deter-
mined by the Secretary, in coordination with the Bu-
reau 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 in-
come tax return of the participating taxpayer 
and October 15 of the applicable year, such tax-
payer may elect to terminate the deferral of the 
amount described under subsection (a) and re-
ceive 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 partici-
pating taxpayer making an election under sub-
paragraph (A) must terminate deferral of the 
full amount described under subsection (a), and 
such amount shall be distributed to the bank 
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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 para-
graphs (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 sub-
section (a) may be claimed on Forms 1040, 1040A, and 
1040EZ. 
(f) IMPLEMENTATION.— 
(1) 
EDUCATIONAL
MATERIALS
AND
OUT-
REACH.—The Secretary shall— 
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(A) design educational materials for tax-
payers regarding financial savings and the Re-
fund to Rainy Day Savings Program; 
(B) publicly disseminate and distribute 
such materials during the first calendar quarter 
of each calendar year and following disburse-
ment of amounts described in subsection (c)(3); 
and 
(C) engage in outreach regarding the Re-
fund to Rainy Day Savings Program to the Vol-
unteer Income Tax Assistance program and 
paid tax preparers. 
(2) INFORMATION
FOR
PARTICIPATING
TAX-
PAYERS.—The Secretary shall ensure that a partici-
pating 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 dis-
tributed to a participating taxpayer, including any 
interest accrued on such amount, shall be treated in 
the same manner as any refund made to such tax-
payer under section 32 of the Internal Revenue Code 
of 1986 for purposes of determining the eligibility of 
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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. 
Æ 
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