NOTICE OF SUBSTANTIVE CHANGE
1. Agency Information
Workforce Services, Administration
Salt Lake City, UT 84145-0244
2. Contact Persons
Please address questions regarding information on this notice to the persons listed above.
3. General Information
A. Rule or section catchline:
R982-502. Low-income ADU Loan Guarantee Pilot Program
B. Purpose of the new rule or reason for the change:
The Department of Workforce Services (Department) repeals Rule R982-502 because the Legislature repealed the authorizing statute creating the pilot program, Section 35A-8-504.5, effective 07/01/2026, in HB 68, passed in the 2026 General Session.
C. Summary of the new rule or change:
This rule is repealed in its entirety.
4. Legislative Action Information
A. Are any changes in this filing because of state legislative action?
Changes are because of legislative action.
B. If yes, any bill number and session:
HB 68 (2026 General Session)
5. Fiscal Information
Provide an estimate and written explanation of the aggregate anticipated cost or savings to:
The Department anticipates no fiscal impact from this repeal.
Any fiscal impact was addressed in the fiscal note for HB 68 (2026).
There are no outstanding pilot program costs.
The repeal is not expected to have any fiscal impact on local governments' revenues or expenditures because this rule does not apply to local governments.
C. Small businesses ("small business" means a business employing 1-49 persons):
The Department anticipates no fiscal impact on small businesses from this repeal.
Any fiscal impact was addressed in the fiscal note for HB 68 (2026).
There are no outstanding loan guarantees from this pilot program.
D. Non-small businesses ("non-small business" means a business employing 50 or more persons):
The Department anticipates no fiscal impact on non-small businesses from this repeal.
Any fiscal impact was addressed in the fiscal note for HB 68 (2026).
There are no outstanding loan guarantees from this pilot program.
E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):
The Department anticipates no fiscal impact on other persons from this repeal.
Any fiscal impact was addressed in the fiscal note for HB 68 (2026).
There are no outstanding loan guarantees from this pilot program.
F. Compliance costs for affected persons:
The Department identifies no compliance costs associated with the repeal of this rule.
This rule imposed no compliance costs on affected persons; therefore, this repeal results in no change in compliance obligations.
6. Regulatory Impact Summary Table
Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."
7. Regulatory Impact Analysis Approval
The Commissioner of the Department of Workforce Services, Casey R. Cameron, has reviewed and approved this regulatory impact analysis.
8. Family Impact Information
A. The agency has considered this rule's impact on family health, stability, and formation:
B. Summary of reasonable alternatives or modifications:
There is no negative impact on family health, stability, or formation not contemplated for in HB 68 (2026) which repealed this program.
9. Citation Information
Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:
11. Public Notice Information
The public may submit written or oral comments to the agency identified in box 1.
A. Comments will be accepted until:
12. Effective Date Information
This rule change MAY become effective on:
(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)
13. Agency Authorization Information
Agency head or
designee and title:
Casey R Cameron, Commissioner
R982. Workforce Services, Administration.
[R982-502. Low-income ADU Loan Guarantee Pilot Program. The purpose of this rule is to establish standards and procedures for administering the two-year pilot program to provide loan guarantees on behalf of borrowers to ensure the repayment of low-income ADU loans, and to encourage lenders to provide capital to homeowners to facilitate the construction of accessory dwelling units to rent to low-income renters, to expand the availability of low-income housing in the state. The legal authority for this rule is found in Section 35A-8-504.5. (1) Terms used in this rule are defined in Section 35A-8-504.5. (a) "Division" means the Housing and Community Development Division. (b) "Executive director" means the executive director of the Department of Workforce Services or the executive director's designee. 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. (iii) savings and loan association; (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. (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. R982-502-5. Lender Responsibilities. (1) After making a low-income ADU loan, the lender shall monitor the activities of the borrower on a yearly basis during the term of the loan to ensure the borrower: (a) agrees in writing to participate in the pilot program; (b) constructs an accessory dwelling unit on the borrower's residential property within one year after the day on which the borrower receives the loan; (c) complies with Section R982-502-6; and (d) complies with any other term or condition of the loan. (2) The lender shall promptly notify the executive director in writing if the borrower fails to comply with any requirement in Subsection R982-502-5(1). (3) The lender shall perform all necessary and standard loan servicing activities for each loan secured by a low-income ADU loan guarantee. R982-502-6. Borrower Responsibilities. After receipt of a low-income ADU loan, the borrower shall: (1) construct an accessory dwelling unit on the borrower's residential property within one year after the day on which the borrower receives the loan; (2) occupy the primary residence with which the accessory dwelling unit is associated: (a) after the accessory dwelling unit is completed; and (b) for the remainder of the term of the loan; and (3) rent the accessory dwelling unit to a low-income individual: 
