Title: Housing, Opportunity, Mobility, and Equity Act of 2018
Policy area: Housing and Community Development

Summary:
Housing, Opportunity, Mobility, and Equity Act of 2018
This bill (1) requires a recipient of a Community Development Block Grant to develop strategies to support new, inclusive zoning policies and programs; (2) establishes a tax credit based on the rental costs of an eligible individual; and (3) establishes a savings program to allow a taxpayer to defer payment on a portion of the amount that would otherwise be refunded to the taxpayer as overpayment.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3342 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3342

 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 SENATE OF THE UNITED STATES

                             August 1, 2018

  Mr. Booker introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 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 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 2018''.

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) include in the annual performance report 
                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 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;
                                    ``(IV) streamlining or shortening 
                                permitting processes and timelines;
                                    ``(V) removing height limitations;
                                    ``(VI) establishing by-right 
                                development;
                                    ``(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--
                            ``(i) be designated as affordable for not 
                        less than 30 years;
                            ``(ii) comprise not less than 20 percent of 
                        the new housing stock in the community; and
                            ``(iii) be accessible to the population 
                        served by the program established under this 
                        title.''.

SEC. 3. 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 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 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) Mean Fair Market Rental Amount.--For purposes of this 
section, with respect to an individual, the mean fair market rental 
amount for a taxable year is 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 
the rule published in the Federal Register on November 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 inserting 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 under section 36A of the Internal Revenue 
Code of 1986 (as added by subsection (a)), including on whether 
taxpayers 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 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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