This bill establishes a conditional loan forgiveness program aimed at assisting lower-income homeowners in New Hampshire with the construction or renovation of accessory dwelling units (ADUs). The program will be administered by the New Hampshire Housing Finance Authority and will provide conditional loans funded by the Affordable Housing Fund. To qualify, homeowners must have a household income at or below 80 percent of the area median income and commit to maintaining the affordability of the ADU for the duration of the loan. The loans will be forgiven if the ADU is rented at affordable rates for lower-income households and if certain conditions are met in the event of a property sale.

The bill introduces new legal language by adding a section to RSA 204-C, specifically section 204-C:64-a, which outlines the details of the loan forgiveness program, including definitions of key terms such as "lower-income homeowner," "affordable housing," and "forgivable loan." It also specifies the eligibility criteria for homeowners, the conditions for loan forgiveness, and the responsibilities of the New Hampshire Housing Finance Authority in terms of application processing and monitoring compliance. However, the bill does not provide funding for the program, and the estimated costs for implementation range from $2,625,000 to $3,150,000 for the first two fiscal years, which would need to be appropriated from the General Fund as the Affordable Housing Fund cannot currently be used for this purpose.