I 

118TH CONGRESS 

2D SESSION H. R. 10294 

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. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 4, 2024 

Mr. MEEKS (for himself and Ms. VELA ́ZQUEZ) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Habitable Housing 

5 Conversion Pilot Program Act of 2024’’. 


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1 SEC. 2. PILOT PROGRAM FOR INSURANCE OF CONVERSION 

2 LOANS. 

3 (a) ESTABLISHMENT.—The Secretary of Housing 

4 and Urban Development (in this section referred to as the 

5 ‘‘Secretary’’) shall carry out pilot program to insure mort6 gages, under section 203(k) of the National Housing Act 

7 (12 U.S.C. 1709(k)(2)), made to finance improvements 

8 necessary to convert space in the basements of owner-oc9 cupied properties, into safe and habitable dwelling units 

10 that are to be made available for rental, meet all State 

11 and local building and safety standards and codes, and 

12 comply with the regulations issued by the Secretary pursu13 ant to subsection (c) of this section. 

14 (b) SCOPE.—The Secretary shall carry out the pilot 

15 program under this section during the 5-year period begin16 ning on the date of the enactment of this Act and may 

17 insure not more than 150,000 mortgages under the pro18 gram. 

19 (c) CONSULTATION; PRIORITY.—In carrying out the 

20 pilot program under this section, the Secretary shall con21 sult with the Administrator of the Federal Emergency 

22 Management Agency and the Administrator of the Na23 tional Oceanic and Atmospheric Administration to identify 

24 areas more likely to suffer hazards causing need for im25 provements financed under such program and may give 


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1 priority in insuring mortgages under such program to eli2 gible properties located in such areas. 

3 (d) REGULATIONS.—The Secretary shall issue such 

4 regulations as may be necessary to carry out the pilot pro5 gram under this section, including regulations to ensure 

6 the safety and habitability of spaces converted into dwell7 ing units using mortgages insured under the program. 

8 (e) REPORT.—Upon the expiration of the 5-year pe9 riod beginning on the date of the enactment of this Act, 

10 the Secretary shall submit a report to the Congress de11 scribing and assessing the pilot program under this sec12 tion, identifying any successes of and problems with the 

13 program, identifying any current codes and regulations 

14 that prevent or inhibit conversion of basement space into 

15 dwelling units, and making recommendations regarding 

16 reauthorizing, reforming, or terminating the program. 

17 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated such sums as may be nec19 essary to carry out the pilot program under this section. 

Æ 


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