Habitable Housing Conversion Pilot Program Act of 2026
Sponsored By: Representative Meeks, Gregory W. [D-NY-5]
Introduced
Summary
Insured FHA loans to turn basements into habitable rental units. This bill would create a five-year HUD pilot under the FHA 203(k) program to insure up to 150,000 mortgages for converting basement space in owner-occupied homes into rental dwelling units that meet local codes.
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- Owner-occupants could tap FHA 203(k) insurance to pay for basement-to-unit conversions. Converted units must meet state and local building and safety codes and HUD regulations.
- The converted spaces must be made available for rental, which could expand local small-unit rental supply and let homeowners earn rental income.
- HUD would write rules to ensure habitability, consult the Federal Emergency Management Agency and the National Oceanic and Atmospheric Administration to identify hazard-prone areas, and may prioritize mortgages in those locations. HUD must report to Congress after five years on outcomes, code barriers, and whether to reauthorize or end the pilot.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
HUD pilot to convert basements
If enacted, HUD would run a five-year pilot starting on the date of enactment to insure mortgages under the 203(k) program for converting basement space into habitable rental units. The pilot would insure up to 150,000 mortgages during the five-year period. Properties would have to be owner-occupied, the converted basement unit would need to be made available for rent, and the unit would have to meet State and local building and safety codes and HUD regulations. HUD would consult FEMA and NOAA to identify hazard-prone areas and may give priority to properties in those areas. The bill would authorize whatever sums are necessary to run the pilot, but Congress would have to appropriate the money and no dollar amounts are set.
Sponsors & CoSponsors
Sponsor
Meeks, Gregory W. [D-NY-5]
NY • D
Cosponsors
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 5/15/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov