Bill
HB 604
NH HB 604 creates a loan program for low-income homeowners to build or convert ADUs, with potential loan forgiveness to increase affordable housing.
HB 604 (New Hampshire, 2026) – Summary
Purpose and intent
- Establishes a loan forgiveness program designed to assist low-income homeowners in creating or expanding accessory dwelling units (ADUs). An ADU is a secondary dwelling unit on a property that lives is separate from the primary residence.
- The program targets increasing affordable housing supply by enabling homeowners to build new ADUs or renovate existing structures into ADUs.
Key provisions and changes
- Loan Forgiveness Mechanism:
- Provides loans to eligible low-income homeowners for ADU construction or conversion/renovation to create an ADU.
- Upon satisfaction of program requirements, a portion or all of the loan principal may be forgiven. The specific forgiveness structure (e.g., forgiveness rate, duration, or triggers) is defined in the bill (exact terms not provided in excerpt).
- Eligibility Criteria:
- Must be a homeowner with income at or below a specified threshold (low-income) as defined by the program.
- The ADU project must result in a habitable unit that complies with applicable building codes and zoning requirements.
- The project must proceed in a manner consistent with program guidelines (e.g., permits, inspections, adherence to timelines).
- Use of Funds:
- Loans are to cover eligible hard and soft costs related to ADU creation or conversion/renovation (construction, materials, labor, permits, and related ancillary costs).
- Funds must be used specifically for the ADU project and related compliance requirements.
- Administration:
- A state or designated agency is tasked with administering the loan program, including underwriting, monitoring, compliance, and forgiveness determinations.
- Establishment of program administration rules, reporting, and oversight mechanisms.
- Programming Outcomes:
- Expected increases in ADU inventory, contributing to increased housing flexibility and affordability for households that need smaller or secondary living arrangements.
- Potential improvements in home value retention or enhancement due to added dwelling units.
Who is affected
- Primary: Low-income homeowners in New Hampshire seeking to build new ADUs or convert existing structures into ADUs.
- Secondary: Local building departments and zoning boards (through compliance with building codes and ADU-related permitting) and communities seeking to increase housing stock and affordability.
- Government/Administration: State or designated administering agency responsible for funding, underwriting, compliance, and forgiveness determinations; annual reporting requirements to track program results.
Procedural and timeline aspects
- Introduction and referral:
- Introduced in early 2025 and referred to Housing committee; initial hearings occurred in 2025.
- Committee actions:
- Retained in committee in February 2025, with subsequent work sessions and an executive session in 2025.
- The committee reported the bill with an interim study recommendation in September 2025 (vote 16-0).
- Interim study:
- The bill was referred for interim study in January 2026, indicating the legislature intends to review program design and implications before proceeding with full enactment.
- Status:
- As of the latest action, the bill is progressing through interim study, with potential for further legislative consideration after study findings.
Notes
- Specific financial details (loan amounts, forgiveness percentages, interest terms, income thresholds, and repayment rules) are not provided in the overview and would be defined in the bill’s text or accompanying administrative rules.
- The interim study designation suggests the legislature aims to assess feasibility, fiscal impact, and program design before potential final passage.
If you’d like, I can tailor this summary to emphasize fiscal impact, potential local government implications, or compare to similar ADU loan programs in other states.
Compiled from official sources — confirm details with the bill’s official record.
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