NH HB604

Establishes a conditional loan forgiveness program administered by the New Hampshire Housing Finance Authority for homeowners with household income at or below 80% of area median income to construct new accessory dwelling units (ADUs) or renovate existing structures into ADUs

Loans are forgiven if the ADU is rented at affordable rates (rent/mortgage not exceeding 30% of occupant's gross monthly income) to lower-income households for the duration of the loan term

If the property is sold, the rent cap must transfer to the new owner or the loan must be paid off in full; homeowners violating program terms must repay the loan entirely

Program funding would come from the Affordable Housing Fund, with the authority providing support services for design, budgeting, permitting, and environmental assessments

Estimated fiscal impact ranges from $2,625,000 to $3,150,000 for a pilot program of up to 10 ADU loans ($250,000-$300,000 per unit plus 5% administrative costs), effective July 1, 2025