1. (1) The term of the loan guarantee will be the shorter of the loan term or 15 years.

2. (2) The following restrictions apply for each loan guarantee issued by the Division:

   1. (a) the borrower's property shall carry a recorded deed restriction requiring the accessory dwelling unit to be rented to persons whose annual income does not exceed 80% of the area median income as determined by the U.S. Department of Housing and Urban Development;
   2. (b) if the loan is not prepaid or paid in full before the end of the loan term, the term of the deed of restriction shall be 15 years, measured from the issuance of the certificate of occupancy for the ADU;
   3. (c) if the loan is prepaid or paid in full before the end of the loan terms, the term of the deed of restriction shall be 5 years, measured from the issuance of the certificate of occupancy for the ADU; and
   4. (d) the lien position for the low-income ADU loan shall be limited to first, second, or third position.

KEY: Single family housing modifications, accessory dwelling units

Date of Last Change: February 22, 2022

Authorizing, and Implemented or Interpreted Law: 35A-8-504.5