Family Stability and Opportunity Act

Economy
1

Family Stability and Opportunity Act

Purpose:
To promote economic stability, enhance child well-being, and encourage family resilience by providing tax credits, financial incentives, and housing support for two-parent households in low-income communities.

Section 1: Title and Definitions

  1. Title: This Act shall be known as the Family Stability and Opportunity Act.
  2. Definitions:
  • Two-Parent Household: A household in which a child resides with both parents, either married or in a committed cohabiting relationship, who share caregiving responsibilities.
  • Low-Income Community: A community or region where the average household income falls below 200% of the federal poverty level.
  • Eligible Family: Families within two-parent households who meet specific income criteria, as defined by the Secretary of Health and Human Services, to qualify for benefits under this act.

Section 2: Enhanced Family Tax Credit for Two-Parent Households

  1. Increased Family Tax Credit:
  • Eligible families will receive a Family Stability Tax Credit (FSTC), enhancing the existing Earned Income Tax Credit (EITC) for low-income two-parent households.
  • The FSTC will increase the standard EITC amount by up to 15% for each eligible family within two-parent households.
  1. Child Tax Credit Increase:
  • Eligible two-parent households will receive an additional $1,000 Child Tax Credit per child under the age of 18.
  • This additional credit will be phased out for families exceeding 250% of the federal poverty line, adjusting annually for inflation.
  1. Application and Verification:
  • Families must submit proof of a two-parent household, which may include tax filings, address verification, or school records showing shared residency.
  • The IRS will process the Family Stability Tax Credit as part of the regular tax filing season.

Section 3: Housing Support and Ownership Incentives

  1. Housing Assistance for Two-Parent Low-Income Households:
  • Eligible families will have access to Housing Vouchers that cover up to 50% of monthly rent for two-parent households in low-income communities.
  • These vouchers prioritize housing in safe, stable neighborhoods, supporting a family-friendly environment.
  1. First-Time Homeownership Program for Two-Parent Households:
  • A down payment assistance program will be created to support eligible two-parent households in purchasing their first home. The program offers up to $15,000 in down payment assistance.
  • This assistance is forgivable if the family remains in the home for a minimum of five years, reinforcing stability and community ties.
  1. Rent-to-Own Options:
  • The Department of Housing and Urban Development (HUD) will partner with local housing authorities to create rent-to-own programs specifically for low-income two-parent households.
  • Eligible families can apply rental payments toward equity in the home after three years, leading to full ownership within a set period.
  1. Administration and Oversight:
  • The Department of Housing and Urban Development (HUD) will oversee all housing assistance and homeownership programs, ensuring compliance and availability in low-income communities.

Section 4: Funding and Implementation

  1. Funding:
  • Funding for the Family Stability and Opportunity Act will be sourced from reallocating portions of existing social welfare funds and tax credit subsidies.
  • Additional funds may be allocated through congressional appropriations.
  1. Implementation:
  • The Department of Health and Human Services (HHS) and HUD will collaborate to ensure effective implementation and access to these resources.
  • Annual reporting to Congress will assess the impact on family stability, child well-being, and economic growth within low-income communities.

Section 5: Effective Date

  • This Act shall become effective on TBD.

Section 6: Sunset Provision

  • This Act shall be reviewed every ten years to assess its impact and necessity.