Bill > S708

This bill establishes a Disabled and Elderly Accessory Apartment Loan Program, administered by the Department of Housing and Community Development (DHCD), to facilitate the creation and preservation of affordable housing for individuals with disabilities and the elderly. The program will offer state financial assistance in the form of grants to public or quasi-public agencies and loans to owners of single-family residences that were originally built as such. These loans can be used to construct an additional dwelling unit of up to two bedrooms within the structure or to improve, renovate, or rehabilitate one existing dwelling unit of up to two bedrooms, provided the structure contains no more than two dwelling units in total and each unit is at least 450 square feet. Key requirements for these loans include that at least one dwelling unit in the structure must be owner-occupied, and after project completion, at least one unit must be occupied by an elderly individual (age 62 or older) or an individual with a disability, who may be related to the borrower. The loans are capped at 50% of total development costs or $50,000, and a deed restriction will be placed on the property to ensure it remains affordable housing. The loan terms can be up to 30 years with potential extensions, and interest rates will be fixed. The program specifically excludes refinancing existing mortgages.