Meeks and Velázquez Introduce Mortgage Legislation to Make Housing Costs More Affordable for Homeowners and Renters

WASHINGTON, D.C. – Today, U.S. Reps. Gregory W. Meeks (NY-05) and Nydia Velázquez (NY-07) introduced the Habitable Housing Conversion Pilot Program of 2024 or the “Basement Bill.” The measure would establish a pilot program to expand the Federal Housing Administration (FHA)’s 203(k) Rehabilitation Mortgage Insurance Program. The proposed pilot program, set to run for five years, would insure up to 15,000 mortgages, prioritizing homes in areas most vulnerable to natural disasters. By collaborating with the Federal Emergency Management Agency (FEMA), the program will identify high-risk zones and focus on protecting homeowners in these regions, providing them with much-needed financial security in the face of increasing climate threats.

Basement apartments can often provide a relatively affordable option for renters, and many people who reside in basements are from historically disadvantaged communities. Many are low-and-moderate income earners, minorities, and immigrants who face language barriers.

“This bill will not only help protect renters from the impact of natural disasters but also gives homeowners a pathway to earn additional income," Rep. Meeks said. “In addition to increasing the supply of safer spaces for renters, this program will help homeowners, particularly retired and senior citizens, who want to rent out their basements to supplement their income. We are facing a housing shortage crisis in America particularly in New York – and I believe this legislation will help homeowners and renters alike.”

“Safe and affordable housing is a right, not a privilege. This bill takes an important step toward making that a reality for more New Yorkers,” said Congresswoman Velázquez. “By helping homeowners transform their basement apartments into livable units, we will create safer spaces for renters and give more homeowners the chance to generate extra income. The Habitable Housing Conversion Pilot Program of 2024 is a practical solution that addresses housing affordability while prioritizing safety and resilience in the face of natural disasters.”

“Cypress Hills Local Development Corporation is pleased to support the Habitable Housing Conversion Pilot Program Act of 2024,” said Ryan Chavez from Cypress Hills Local Development Corporation. “The tragic events of Hurricane Ida three years ago this week, where 11 lives were lost in basement apartments due to flooding, highlight the urgent need for action at all levels of government. It is imperative that we ensure that tenants can live in safe and stable homes, and that homeowners have the necessary resources to bring these units up to code. Financing has long been one of the significant barriers to implementing such a basement legalization program, and this bill is a crucial step in addressing that challenge.”

The U.S. Department of Housing and Urban Development (HUD) would carry out the pilot program for a duration of five years and will insure up to 150,000 mortgages. The pilot program will be carried out through consultations with the Administrator of the Federal Emergency Management Agency (FEMA) to identify areas that are at risk of natural disasters and would prioritize properties located in such areas.

To read the full bill text visit, here.