New Hampshire HB 1405: relative to the housing finance authority's affordable housing guarantee program.

Bill Text

HB 1405-FN - AS INTRODUCED

2026 SESSION

 26-2936

 07/08

HOUSE BILL 1405-FN

AN ACT relative to the housing finance authority's affordable housing guarantee program.

SPONSORS: Rep. Muns, Rock. 29; Rep. Booras, Hills. 8; Rep. de Vries, Rock. 29; Rep. Hegner, Hills. 41; Rep. Howland, Straf. 20; Rep. Lane, Merr. 16; Rep. Maggiore, Rock. 23; Rep. D. Paige, Carr. 1; Rep. Read, Rock. 10; Rep. Stavis, Graf. 13; Sen. Altschiller, Dist 24; Sen. Perkins Kwoka, Dist 21

COMMITTEE: Housing

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ANALYSIS

This bill:

 I. Establishes an affordable housing guarantee program within the housing finance authority to promote affordable housing for low- and moderate-income persons.

 II. Requires the housing finance authority to offer loan guarantees to lenders who have current approval to provide financing through the housing finance authority to reduce the risk of their loans.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2936

 07/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT relative to the housing finance authority's affordable housing guarantee program.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 New Subdivision; Affordable Housing Guaranteed Loan Program. Amend RSA 204-C by inserting after section 92 the following new subdivision: 

Affordable Housing Guaranteed Loan Program

 204-C:93 Definitions. In this subdivision:

 I. "Affordable housing" means: 

 (a) Housing whose combined rental and utility costs, or combined mortgage loan debt services, property taxes, and required insurance, do not exceed 30 percent of the gross income of persons of low or moderate income.

 (b) Manufactured housing parks, as defined in RSA 205-A:1, provided that the park meets the following conditions: 

 (1) The majority of residents, as evidenced by a survey conducted within 3 years of loan origination, attest to being of low or moderate income; and

 (2) Lot rents and fees are determined to be affordable to residents of low and moderate income according to criteria established by the authority.

 (c) Homes for persons with disabilities, mobile homes, prefabricated homes, or any buildings, land, improvements, equipment, facilities, or other real or personal property deemed by the authority to be necessary, convenient, ancillary, or desirable.

 II. "Authority" means the housing finance authority established under RSA 204-C:2.

 III. "Person of low income" means any individual or family whose gross income is greater than 50 percent, but less than or equal to 60 percent, of the state median income, which may be adjusted based on the number of persons living in a given household.

 IV. "Person of moderate income" means any individual or family whose gross income is greater than 60 percent, but less than or equal to 80 percent, of the state median income, which may be adjusted based on the number of persons living in a given household.

 V. "Person of very low income" means any individual or family whose gross income is less than or equal to 50 percent of the state median income, which may be adjusted based on the number of persons living in a given household.

 204-C:94 Rulemaking. The authority shall adopt rules, pursuant to its own procedures, relative to: 

 I. The conduct of its business;

 II. The selection and maintenance of eligible lenders; 

 III. The schedule of fees and guarantee premiums to be charged for the issuance of certificates of guarantee or other services;

 IV. The types of activities eligible for financing with loans guaranteed pursuant to this subdivision; and

 V. Any matter necessary to carry out the powers and duties of the authority under this subdivision.

 204-C:95 Administration; Eligibility; Demonstration. 

 I. The authority shall make a good faith effort to approve applications from nonprofit and for-profit lending organizations which provide, or are planning to provide, loans for the creation or preservation of affordable housing, consistent with the criteria established in this subdivision and rules adopted by the authority. When entering into contracts for guaranteed loans pursuant to this subdivision, the authority shall require that applicants demonstrate that they satisfy the requirements of this section.

 II. Each applicant shall: 

 (a) Register with the secretary of state as a private, nonprofit or for-profit entity, or be a municipal housing authority.

 (b) Demonstrate a need for a proposed loan to develop or preserve affordable housing.

 (c) Demonstrate that the borrower has agreed to provide affordable housin