Lower-income homeowners could seek loans for affordable accessory homes

The New Hampshire Housing Finance Authority would offer conditional loans to eligible homeowners to build or renovate accessory homes. A homeowner must have household income at or below 80% of area median income and propose a new attached or detached accessory dwelling unit, or convert an existing structure into one. The proposal says program funds would come from the Affordable Housing Fund, and applications would be approved in order received only while funds are available. The fiscal note says the bill provides no funding and that the fund has no available money for the program; implementation would require an appropriation. The proposal states an effective date of July 1, 2025, if enacted.

The authority would forgive a loan if the home stays affordable to lower-income renters for the loan term. These terms apply to accessory homes funded through the proposed program. Affordable rent or mortgage payments may not exceed 30% of the occupant's gross monthly income. If the property is sold, the rent cap must transfer to the new owner or a payoff amount is required. A homeowner who violates program terms must repay the loan in full. The affordability requirement lasts for the loan term.