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Senate hears bill to authorize housing loan guarantees to leverage private capital for affordable housing
Summary
Senate Bill 86 would allow the New Hampshire Housing Finance Authority to guarantee a portion of multifamily loans to lower financing costs and spur affordable housing development. Proponents including lenders, nonprofit lenders and housing advocates told the Commerce Committee the program could unlock otherwise stalled projects.
Sen. Rebecca Perkins Quoca opened the hearing on Senate Bill 86 by saying the measure would give the state a low‑cost economic tool to back multifamily loan guarantees and encourage private investment in affordable housing. "This bill can make the ability to use public dollars to leverage private ones while at the same time showing up as a contingent liability on our balance sheet," Perkins Quoca said.
The bill would authorize New Hampshire Housing or a similar authority to guarantee a portion of a loan—witnesses described up to 80% coverage in examples—to reduce lender risk and increase financing availability for projects that do not qualify for existing federal programs.
Ryan Hill of the New Hampshire Bankers Association told the committee the guarantee would allow lenders to finance projects they otherwise would not and described the program as a useful tool in the current high‑interest environment. "It provides that loan guarantee covering up to 80% of the principal for affordable housing projects," Hill said.
Abby Bronson of the New Hampshire Community Loan Fund urged support for SB 86, describing the role of guarantees in enabling resident‑owned community purchases for manufactured housing parks. She told the committee the group closed three loans last year totaling nearly $9 million to help residents buy parks covering roughly 45 homes and said guarantees would help attract more impact investors to finance larger, higher‑cost purchases.
Rob Dapis, executive director of New Hampshire Housing, said his agency would adopt rules and work with stakeholders if the law passes and emphasized a focus on minimizing state risk. "Our goal would be to have zero defaults," Dapis said, noting the agency's track record administering federal risk‑sharing programs.
Supporters included nonprofit and advocacy groups, banks and industry associations; witnesses said program rules and underwriting criteria would be key to ensuring guarantees produce additional financing rather than shifting risk without public benefit. The committee closed the hearing; the chair said he would refer Senate Bills 86 and 279 to the housing subcommittee for further work.
