New Hampshire HB 604: establishing a commission to assess benefits and costs of a "health care for all" program for New Hampshire.

Bill Text

HB 604-FN - AS INTRODUCED

2025 SESSION

 25-0298

 06/11

HOUSE BILL 604-FN

AN ACT relative to a loan forgiveness program for low-income homeowners to build new accessory dwelling units or renovate existing structures into accessory dwelling units.

SPONSORS: Rep. Newell, Ches. 4; Rep. A. Murray, Hills. 20; Rep. Read, Rock. 10; Rep. Damon, Sull. 8; Rep. Staub, Hills. 25; Rep. O'Rorke, Ches. 7; Rep. Spier, Hills. 6; Rep. N. Germana, Ches. 15; Sen. Fenton, Dist 10; Sen. Watters, Dist 4

COMMITTEE: Housing 

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ANALYSIS

 This bill establishes a conditional loan forgiveness program to encourage lower-income homeowners to construct or renovate accessory dwelling units.

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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 25-0298

 06/11

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Five

AN ACT relative to a loan forgiveness program for low-income homeowners to build new accessory dwelling units or renovate existing structures into accessory dwelling units.

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

 1 New Section; Loan Forgiveness Program Established. Amend RSA 204-C by inserting after section 70 the following new section:

 204-C:64-a Loan Forgiveness Program.

 I. There is hereby established a conditional loan program to be administered by the New Hampshire housing finance authority which shall provide conditional loans for lower-income homeowners to construct new attached or detached ADUs or renovate existing structures into attached or detached ADUs. Funds for the program and its administration shall come from the affordable housing fund, pursuant to RSA 204-C:57.

 II. For purposes of this section:

 (a) “Lower-income homeowner” means a homeowner with a household income at or below 80 percent of the area median income (AMI) as determined by the U.S. Department of Housing and Urban Development (HUD).

 (b) "Affordable housing" means housing for which the rent or mortgage payments do not exceed 30 percent of the occupant's gross monthly income.

 (c) "Forgivable loan" means a loan that is forgiven upon meeting specified conditions, such as maintaining the affordability of the ADU for a set period.

 III. To be eligible for the program, homeowners must:

 (a) Have a household income at or below 80 percent of the AMI.

 (b) Propose the construction of a new ADU or the renovation of an existing structure into an ADU.

 (c) Commit to maintaining the ADU as affordable housing for the length of the loan terms.

 IV. Loans provided under this program shall be forgiven if the following conditions are met:

 (a) The ADU is rented at rates affordable to lower-income households for the duration of the loan term.

 (b) In the event of a property sale, either the rent cap shall be transferable to the new owner, or a payoff amount shall be required.

 V. The authority shall develop a clear and straightforward application process for the program, including guidelines and deadlines for submission. Applications shall be reviewed and approved on a first-come, first-served basis, subject to the availability of funds.

 VI. The authority shall provide support services to applicants, including assistance with pre-development activities such as design, budgeting, permitting, and environmental assessments.

 VII. The authority shall establish a system for monitoring the use of ADUs created or renovated under this program to ensure compliance with affordability requirements.

 VIII. Homeowners found to be in violation of program terms shall be required to repay the loan in full.

 5 Effective Date. This act shall take effect July 1, 2025.

 LBA

 25-0298

 1/7/25

HB 604-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to a loan forgiveness program for low-income homeowners to build new accessory dwelling units or renovate existing structures into accessory dwelling units.

FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.

 Estimated State Impact

FY 2025

FY 2026

FY 2027

FY 2028

 Revenue

$0

$0

$0

$0

 Revenue Fund(s)

None

 Expenditures*

$2,625,000 to $3,150,000

$0

$0

$0

 Funding Source(s)

General Fund

 Appropriations*

$0

$0

$0

$0

 Funding Source(s)

None

 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill

METHODOLOGY:

This bill establishes a conditional loan forgiveness program administered by the New Hampshire Housing Finance Authority to encourage lower-income homeowners to construct or renovate accessory dwelling units (ADUs) to be funded by the Affordable Housi