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 pilot program is set to operate for a duration of five years, with HUD authorized to insure up to 150,000 mortgages. The program aims not only to address the need for more affordable housing options but also to intelligently utilize existing structures by transforming underutilized basement spaces into rental units. By providing insurance, the bill potentially lowers the financial risk for lenders, paving the way for increased investment in such housing improvements.
HB10294, known as the 'Habitable Housing Conversion Pilot Program Act of 2024', proposes the establishment of a pilot program by the Secretary of Housing and Urban Development (HUD) to evaluate the effectiveness of insuring mortgages aimed at converting basement spaces in owner-occupied properties into safe and habitable dwelling units. The bill emphasizes the importance of ensuring that these conversions adhere to state and local building codes and safety standards, thereby promoting safer living conditions for tenants.
Notably, the bill includes provisions for consultation with federal agencies like FEMA and NOAA, which could prioritize properties in areas susceptible to environmental hazards, creating an intersection between housing needs and disaster preparedness. However, there may be concerns regarding the impact of these conversions on local infrastructure and resources, as well as questions surrounding the enforcement of safety and building regulations in converted basements. Future discussions could highlight the balance between increasing housing availability and maintaining community standards for health and safety.