Utah Admin. Code R982-502-4 - Minimum Criteria

(1) The executive director may not provide a loan guarantee for a low-income ADU loan under the pilot program unless the criteria set forth in this Section R982-502-4 are satisfied.

(2) The lender:

(a) must be a:

(i) trust company;

(ii) savings bank;

(iii) savings and loan association;

(iv) bank;

(v) credit union; or

(vi) any other entity that provides low-income ADU loans directly to borrowers;

(b) shall agree in writing, in a form determined by the Division, to participate in the pilot program; and

(c) shall make available to prospective borrowers the option of receiving a low-income ADU loan that:

(i) has a term of 15 years; and

(ii) charges interest at a fixed rate;

(d) shall determine whether to make a loan to an eligible borrower, including credit risk evaluations, based on generally accepted lending practices; and

(e) shall assist the loan applicant in the preparation of the loan application and supporting documentation and in the determination of the financial feasibility of the loan.

(3) The borrower:

(a) must be a residential property owner;

(b) shall agree in writing, in a form determined by the Division, to participate in the pilot program; and

(c) shall satisfy the credit evaluation criteria of the lender.

Notes

Utah Admin. Code R982-502-4

Adopted by Utah State Bulletin Number 2022-01, effective 12/22/2021