119th (2025–2027)
H.R. 8854
This bill establishes a five-year pilot program through the Department of Housing and Urban Development to insure mortgages that help homeowners convert basement spaces into safe, rentable housing units. The program will support up to 150,000 mortgages for basement conversion projects, with a focus on properties in areas prone to natural hazards like flooding. The HUD Secretary will work with the Federal Emergency Management Agency and National Oceanic and Atmospheric Administration to identify high-risk areas and may prioritize those locations for the program. All converted basement units must meet state and local building codes and safety standards, and the Secretary will issue regulations to ensure the habitability of these new dwelling units. After the five years, HUD must report to Congress on the program's effectiveness, highlighting successes and problems, identifying regulatory barriers to basement conversions, and recommending whether the program should continue, be reformed, or end.