H.R. 8854In committee
HUD pilot would back loans for basement apartment conversions in up to 150,000 homes
Data as of July 11, 2026
HR 8854 launches a 5-year HUD pilot backing loans for basement-to-apartment conversions, capped at 150,000 loans.45-second read · 4 questions answered below
Decoded
What does this do?
HR 8854 would create a five-year pilot program under HUD allowing homeowners to take out government-backed loans to convert basements into separate rental apartments. The program would be capped at 150,000 loans total. After five years, HUD would be required to report to Congress on the program's results.
Who does it affect?
Homeowners with unfinished or unused basements who cannot easily qualify for conventional renovation loans are the primary targets of the program. Renters in tight housing markets, local governments, and renovation contractors would also be affected if the program is enacted.
Why does it matter?
Adding government-backed financing for basement conversions could increase the number of rental units available in areas with housing shortages. The bill also directs HUD to work with FEMA and NOAA to prioritize properties in areas at higher risk from weather or disaster-related hazards, indicating concern about housing supply in disaster-affected communities.
Where does it stand?
- Introduced
- House committee — You are here
- House vote
- Senate
- President's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
Habitable Housing Conversion Pilot Program Act of 2026
- Introduced:
- May 15, 2026
- Latest action:
- May 15, 2026
Referred to the House Committee on Financial Services.
Read the official bill on Congress.govMake the call
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