This bill establishes an Affordable Housing Guaranteed Loan Program within the New Hampshire Housing Finance Authority (NHHFA) aimed at promoting affordable housing for low- and moderate-income individuals. The program will provide loan guarantees to lenders approved by the NHHFA, reducing the risk associated with their loans. The bill defines "affordable housing" and sets criteria for eligibility based on income levels, with specific provisions for manufactured housing parks and homes for persons with disabilities. The NHHFA is tasked with adopting rules for the program's administration, including the selection of eligible lenders and the types of activities eligible for financing.

The bill allows the NHHFA to issue guarantees covering up to 80% of the principal on loans, with a cap of $30 million per lender per fiscal year and a total limit of $300 million in guaranteed loans at any time. The full faith and credit of the state is pledged to support these guarantees, and the state treasurer is authorized to advance funds to the NHHFA as needed. The program is expected to incur initial administrative costs of $20,000 in the first year, decreasing to $15,000 annually thereafter, which will be funded through General Funds. The potential liability for the state could reach up to $300 million if loan defaults occur.