Meeks and Velázquez Reintroduce Legislation to Lower Housing Costs for Homeowners and Renters

WASHINGTON, D.C. - Today, U.S. Reps. Gregory W. Meeks (NY-05) and Nydia Velázquez (NY-07) reintroduced the Habitable Housing Conversion Pilot Program of 2026 or the "Basement Bill." The measure would establish a 5-year pilot program to provide grants for homeowners to transform their basements into safe apartment units. Converting underused basement space allows homeowner to offset rising costs through rental income while expanding much-needed housing options for low-to-moderate income earners.

Through consultation with the Federal Emergency Management Agency (FEMA), the program will prioritize homes in areas most vulnerable to natural disasters and provide them with much-needed financial security in the face of increasing climate threats.

"This legislation will help protect renters from the devastating impacts of natural disasters while also creating new opportunities for homeowners to earn additional income," said Congressman Meeks. "Many seniors and retired homeowners use the funding received from renting basement apartments to help cover rising costs and provide financial relief. This bill creates a pathway for homeowners to access financing to bring these spaces up to code, improve safety, and expand safe and affordable housing options in our communities. This bill is a practical solution to rising costs and will help improve affordability for both homeowners and renters in New York."

"Safe, affordable housing should be a right for every New Yorker, not a luxury reserved for a few," said Congresswoman Velázquez. "This bill helps homeowners convert their basement apartments into livable, code-compliant units, creating safer spaces for renters while giving more families a way to earn extra income. The Habitable Housing Conversion Pilot Program of 2026 is a step toward easing our housing crunch, and it does so while putting safety and resilience against natural disasters front and center."

"Cypress Hills Local Development Corporation is proud to support the Habitable Housing Conversion Pilot Program Act," said Michael G. Johnson, Executive Director, Cypress Hills Local Development Corporation. "After years of inaction, New York City and New York State have begun taking important steps to address the reality that basement apartments are a critical part of our housing stock, providing affordable homes for many low-income tenants while also helping stabilize homeownership for low- and moderate-income families. In working-class immigrant communities and communities of color, these homes have long existed in the shadows without the financing and support needed to make them safe and legal. This legislation recognizes that the federal government also has a role to play in addressing our housing crisis by helping homeowners access the resources needed to bring these units up to code while expanding safe, affordable housing options in communities like ours."

More specifically, the legislation would expand the Federal Housing Administration (FHA)'s 203 (k) Rehabilitation Mortgage Insurance Program to finance improvements necessary to convert space in the basements of owner-occupied properties, into safe and habitable dwelling units that are to be made available for rental. 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.

To read the full bill text visit, here.

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