NY A06778

Establishes a forgivable loan program through the Division of Homes and Community Renewal for construction of accessory dwelling units (ADUs) on owner-occupied properties, with loans up to $75,000 or 50% of eligible costs, whichever is less

Loans are forgiven after 20 years if the ADU is rented to tenants meeting income guidelines (up to 100% of state mortgage agency income limits) and rent limits (calculated at 70% of area median income adjusted for unit size)

Creates a state tax credit equal to 50% of the difference between market rate rent and affordable rent charged, capped at $10,000 annually, for property owners renting ADUs under the program's guidelines

Authorizes counties, cities, towns, villages, and school districts to adopt local laws exempting property tax increases attributable to affordable ADU improvements from taxation

Requires the Division of Homes and Community Renewal to provide technical assistance to homeowners and issue annual reports detailing projects financed through the program by zip code and county