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: Sen. Booker, Cory A. [D-NJ]
Target Audience
Population: People facing housing affordability issues, particularly renters
Estimated Size: 83000000
- The bill addresses zoning policies, which impact where people can live and the availability of housing units.
- Housing affordability initiatives in the bill are designed to benefit people struggling with high housing costs.
- The tax credit for renters spending more than 30% of income on housing aims to support low-income and rent-burdened individuals.
- The Rainy Day Savings Program provides a financial safety net, affecting those who would benefit from tax refund deferment for savings purposes.
- Globally, urban and suburban populations in regions with significant housing affordability issues are impacted.
Reasoning
- The policy aims to address housing affordability issues, a significant concern for a large portion of the US population, especially low to moderate-income renters.
- The implementation of tax credits and advance payments for people spending more than 30% of their income on rent directly targets the financially burdened, which is estimated to be about 25% of the US population.
- By impacting zoning and housing regulations through federal grants, the policy touches many urban and suburban areas, benefiting those affected by restrictive zoning and insufficient housing supply.
- The Rainy Day Savings Program offers an innovative approach for financial security to those eligible for tax refunds, potentially appealing to middle and lower-income brackets.
- The budget of $25.15 billion over 10 years is substantial, but still requires prioritization given the estimated 83 million American target population.
Simulated Interviews
teacher (Los Angeles, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy could significantly ease my financial burden with the tax credits. Renting in LA is incredibly expensive, and I often worry about emergencies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 5 | 4 |
construction worker (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I'm concerned about how changes to zoning might affect my home value, but I can see the need for more affordable housing here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
graphic designer (New York City, NY)
Age: 27 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Receiving a tax credit for my rent would help immensely. Right now, there's no room for savings or emergencies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 3 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 5 | 3 |
retired (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The Rainy Day Savings Program interests me because it could help with my savings. I live on a fixed income now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 5 |
mechanic (Chicago, IL)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- I think the housing improvements in our area could be a good thing, as long as they don't displace people.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
software engineer (Seattle, WA)
Age: 25 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- As a renter, I'm less affected by this policy, but it's clear some zoning changes might enable better housing options.
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 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
artist (Raleigh, NC)
Age: 35 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Every bit helps, and if I qualify for rent credits, that's a step up from constant stress about rent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
single parent and customer service representative (Miami, FL)
Age: 41 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- The savings program could be beneficial. It's hard to save anything extra as a single parent.
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 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
tech entrepreneur (Denver, CO)
Age: 48 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I'm more interested in how these changes might open up investment opportunities than the direct benefits of the policy.
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 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
nurse (Salt Lake City, UT)
Age: 31 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- It's hard to say how much this will affect me directly, but I support changes that make housing affordable.
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 | 7 | 7 |
Cost Estimates
Year 1: $2000000000 (Low: $1800000000, High: $2200000000)
Year 2: $2100000000 (Low: $1900000000, High: $2300000000)
Year 3: $2200000000 (Low: $2000000000, High: $2400000000)
Year 5: $2500000000 (Low: $2200000000, High: $2700000000)
Year 10: $3000000000 (Low: $2600000000, High: $3200000000)
Year 100: $4500000000 (Low: $4000000000, High: $4800000000)
Key Considerations
- Success of the bill heavily relies on state and local governments effectively implementing zoning changes.
- The financial impact might depend on the uptake levels of the tax credit and Rainy Day Savings Program.
- Potential long-term savings may not immediately offset short-term expenditure increases.