Bill Overview
Title: Housing, Opportunity, Mobility, and Equity Act of 2022
Description: 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.
Sponsors: Rep. Clyburn, James E. [D-SC-6]
Target Audience
Population: people engaged in or requiring affordable housing solutions and economic support
Estimated Size: 100000000
- The bill focuses on zoning policies, housing affordability, and economic security, affecting populations involved in or affected by these sectors.
- Community development and transportation block grants involve many levels of state and local governments, thus affecting widespread demographics.
- The requirement for affordable, elastic, and diverse housing supply impacts individuals across socioeconomic backgrounds, especially those in urban areas where housing crises are most severe.
- The tax credit specifically supports renters who are burdened by high housing costs, potentially affecting millions of low to middle-income individuals.
- Assuming the US has roughly 122 million occupied housing units, with about 36% rented (44 million renting households), and an average household size of 2.5, many of these households could benefit if rent-burdened (spending >30% on rent).
- The Rainy Day Savings Program could benefit individuals across various income levels who are likely to receive tax refunds, extending its impact to a broad segment of taxpayers.
Reasoning
- The policy aims to address significant housing and economic challenges by incentivizing states to adopt more inclusive zoning policies and providing financial support to renters overburdened by housing costs.
- The tax credit helps individuals who spend a large portion of their income on rent, providing more disposable income and reducing financial stress for low to middle-income renters.
- The Rainy Day Savings Program offers a savings mechanism particularly beneficial to those likely to receive refunds, aiding in financial planning and stability.
- The budget limitations imply the policy needs to serve a large number of beneficiaries efficiently, focusing on impactful initiatives in urban areas while maximizing the financial relief provided through tax credits and savings programs.
- Given the bill's targets, the impact is likely more substantial for individuals in urban settings with high housing costs, renters, and those who often receive tax refunds.
- Simulated interviews aim to capture a diverse range of potential impacts, including varying levels of benefit (from none to high) depending on individual circumstances such as location, income, housing situation, and financial behavior.
Simulated Interviews
Software Engineer (San Francisco, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- I'm hopeful this policy could alleviate some of my current financial pressure from rent.
- The savings program sounds like a great way to be more financially prepared.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Construction Worker (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- Rent is tough to manage, and any help would be really appreciated.
- I've been thinking of saving more but haven't found a good way.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Freelance Designer (New York, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- This seems like it could really improve my current situation.
- The advance payment on the tax credit would help manage cash flow.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 9 | 4 |
| Year 5 | 9 | 5 |
| Year 10 | 10 | 5 |
| Year 20 | 10 | 5 |
Retired (Rural Georgia)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- Interesting policy but not directly relevant to me.
- More focused on city dwellers, but I understand the need.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Taxi Driver (Chicago, IL)
Age: 50 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm curious how the zoning changes will improve housing availability.
- The savings program could be useful if it offers flexibility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
College Student (Boston, MA)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Student loans cover most costs, but rent is still a big chunk.
- Would appreciate anything that helps lower living costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Teacher (Houston, TX)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This policy could significantly help me balance expenses better.
- It's reassuring to know there could be mechanisms to ease rent burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Engineer (Seattle, WA)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Not directly impacted by rent changes, but interested in community growth.
- Zoning policies may better overall neighborhood dynamics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Nurse (Miami, FL)
Age: 31 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- Miami's rental market is tough. I hope this can ease some burdens.
- I like the idea of a tax credit to effectively increase my income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Retail Manager (Las Vegas, NV)
Age: 52 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- I'm on the brink of needing to move due to rising costs.
- This could be the help I need to continue living here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Cost Estimates
Year 1: $7000000000 (Low: $6500000000, High: $7500000000)
Year 2: $7200000000 (Low: $6800000000, High: $7600000000)
Year 3: $7400000000 (Low: $7000000000, High: $7800000000)
Year 5: $7600000000 (Low: $7200000000, High: $8000000000)
Year 10: $8000000000 (Low: $7500000000, High: $8500000000)
Year 100: $9000000000 (Low: $8500000000, High: $9500000000)
Key Considerations
- State and local government's ability to quickly implement zoning changes is uncertain, given varied local priorities and capacities.
- Effectiveness in boosting housing supply hinges on local compliance and alignment with broader market conditions.
- Administrative costs for setting up tax credit advance payments and savings accounts are significant, contributing to initial implementation costs.
- The potential for behavioral changes in response to tax credits and savings incentives impacting actual uptake and financial outcomes.