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 affordability of the ADU for the duration of the loan. The loans will be forgiven if the ADUs are rented at affordable rates to 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 for "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 developing an application process and monitoring compliance. 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 the first two fiscal years.