Housing, Opportunity, Mobility, and Equity Act of 2022
Bill: S.5223 | Sponsor: Sen. Booker, Cory A. (D-NJ)
Policy area: Housing and Community Development

Summary:
Housing, Opportunity, Mobility, and Equity Act of 2022
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.

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 2022''.

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 that 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 the 
                                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;
                    ``(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 subparagraph 
                (A)--
                            ``(i) be designated as affordable for the 
                        useful life of the units;
                            ``(ii) require that a proportion of the new 
                        housing stock in the community is at least as 
                        great as 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; 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--
                            ``(i) rural areas;
                            ``(ii) persistent poverty counties, defined 
                        as any county with a poverty rate of not less 
                        than 20 percent, as determined in each of the 
                        1990 and 2000 decennial censuses, and in the 
                        Small Area Income and Poverty Estimates by the 
                        Bureau of the Census for the most recent year 
                        for which the estimates are available; and
                            ``(iii) high-poverty areas, defined as any 
                        census tract with a poverty rate of not less 
                        than 20 percent as measured by the 2013-2017 5-
                        year data series available from the American 
                        Community Survey of the Bureau of the 
                        Census.''.

SEC. 3. REQUIREMENT FOR SURFACE TRANSPORTATION BLOCK GRANT PROGRAM.

    Section 133 of title 23, United States Code, is amended by adding 
at the end the following:
    ``(l) 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 (42 U.S.C. 1437f(o))--
                            ``(i) in the case of a one-individual 
                        household, for an efficiency, and
                            ``(ii) in the case of a household comprised 
                        of more than one individual, for a residence 
                        the number of bedrooms in which would not 
                        require--
                                    ``(I) more than two members of the 
                                household of the individual to share a 
                                bedroom,
                                    ``(II) children of different 
                                genders to share a bedroom, 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 7527B 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 7527A the following 
        new section:

``SEC. 7527B. 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 
2022, 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 7527A 
        the following new item:

``Sec. 7527B. 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, 2022, 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.
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