Habitable Housing Conversion Pilot Program Act of 2026
To establish a pilot program for the Secretary of Housing and Urban Development to evaluate the effectiveness of insuring mortgages made to finance improvements to convert basement spaces into safely habitable dwelling units, and for other purposes.
This bill proposes to create a pilot program managed by the Secretary of Housing and Urban Development. The program aims to assess how effective it is to insure mortgages that fund the conversion of basement spaces into safe, habitable living units. This would help increase the availability of affordable housing by utilizing underutilized spaces.
The program would affect homeowners and renters by potentially increasing the number of available housing units, especially in areas where there is a shortage of affordable housing. It might also impact mortgage insurers and lenders who would be involved in financing these conversions.
HB8854 was introduced on May 15, 2026, and was immediately referred to the House Committee on Financial Services. As of now, it is in the early stages of the legislative process, awaiting further action from the committee.
