This bill establishes a conditional loan forgiveness program aimed at assisting lower-income homeowners in New Hampshire to construct or renovate 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 ADU as affordable housing for the duration of the loan term. The loans will be forgiven if the ADU is rented at affordable rates for lower-income households, and specific 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 for "lower-income homeowner," "affordable housing," and "forgivable loan." It also specifies the eligibility criteria for homeowners, the application process, and the monitoring of compliance with affordability requirements. Notably, the bill does not provide funding for the program, nor does it authorize new positions, and it is estimated that the program could incur costs between $2,625,000 and $3,150,000 for fiscal years 2025 and 2026, which would need to be appropriated from the General Fund.