This bill mandates the New Hampshire Housing Finance Authority (HFA) to provide loan guarantees for approved lenders who finance accessory dwelling unit (ADU) development projects. Specifically, the HFA will offer guarantees covering between 80% and 100% of the loan amount based on the appraised value of the completed ADU, with a cap of $100 million in guarantees issued annually. The bill introduces a new section, 204-C:93, into RSA 204-C, which outlines these provisions and states that the HFA shall not issue guarantees contrary to existing laws.

Additionally, the bill appropriates $25,000 for the fiscal years ending June 30, 2027, and June 30, 2028, to help cover the administrative costs associated with managing the ADU loan guarantee program. This funding will be drawn from the General Fund, and while the HFA anticipates these costs, it expects to offset them over time by charging lenders a small monthly fee. The act will take effect 60 days after its passage.