Habitable Housing Conversion Pilot Program Act of 2026

This bill establishes a five-year pilot program to help homeowners convert their property basements into safe, rentable living units. The Department of Housing and Urban Development will insure up to 150,000 mortgages specifically designed to fund these necessary improvements. To ensure safety, the program requires that converted spaces meet all local building codes and will prioritize projects in areas prone to natural hazards after consulting with federal emergency management agencies. At the end of the five-year period, the Department must submit a report to Congress detailing the program's results and offering recommendations on whether to continue or change it.