Bill > HB604

This bill establishes a conditional loan forgiveness program administered by the New Hampshire Housing Finance Authority (NHHFA) to encourage low-income homeowners to create or renovate accessory dwelling units (ADUs), which are smaller, secondary housing units on the same property as a main residence. The program would provide forgivable loans to help homeowners construct new ADUs or transform existing structures into ADUs, with the goal of increasing affordable housing options. According to the fiscal note, the pilot program would support up to ten ADU loans, with each unit estimated to cost between $250,000 and $300,000. The total estimated cost for the program, including administrative expenses, ranges from $2,625,000 to $3,150,000, which would be funded through General Funds since no specific funding source is currently available. The bill is set to take effect on July 1, 2025, and while it outlines the loan forgiveness program, it does not itself provide the necessary funding, meaning additional appropriations would be required to implement the initiative. The NHHFA has noted that the Affordable Housing Fund currently cannot be used for this purpose, so legislative action would be needed to secure the program's funding.

Housing and Urban Affairs

https://gc.nh.gov/bill_status/legacy/bs2016/bill_status.aspx?lsr=0298&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=HB604