Arkansas Administrative Code

15 CAR § 86-311. Relocating existing tenants. (a)(1) If existing LIHTC tenants wish to transfer to a different LIHTC unit in the same building (as identified by the building identification number), they do not need to be recertified. (2) A new lease must be executed to be effecti…

15 CAR § 86-312. Staff units. (a)(1) Rev. Rul. 92-61, 1992-2 C.B. 7 [Section A], effective September 9, 1992, allows a unit for a full-time staff member to be considered part of a development's common area. (2) Such units are not classified as residential rental units and thus ar…

15 CAR § 86-313. Nontransient occupancy. (a) According to the Internal Revenue Code, residential units must be for use by the general public, and all of the units in a development must be used on a nontransient basis. (b) For LIHTC units to be in compliance, a six-month minimum l…

15 CAR § 86-314. General public — Fair housing — Section 504 — Americans with Disabilities Act. (a) All residential rental units in the development must be available for use by the general public. (b)(1) LIHTC properties are subject to Title VIII of the Civil Rights Act of 1968, …

15 CAR § 86-315. Section 8 housing choice vouchers. (a) Owners may not refuse to rent to Section 8 housing choice voucher holders simply because they have Section 8. (b) On the other hand, owners must not assume a Section 8 certificate or voucher holder automatically qualifies. (…

15 CAR § 86-316. Suitability of unit. (a)(1) A unit must be suitable for occupancy in accordance with state or local codes in order for credits to be claimed. (2) If the unit is not habitable, no credits can be claimed. (b)(1) The Internal Revenue Service has ruled that if a unit…

15 CAR § 86-317. Students. (a)(1) The Internal Revenue Code specifies that LIHTC housing must be for the use of the general public on a nontransient basis. (2) Further, the regulations state no dormitory may be a qualified low-income project. (b)(1) An LIHTC development cannot be…

15 CAR § 86-401. Determining tenant eligibility generally. (a) Owners must determine and provide documentation that proves the eligibility of potential low-income tenants in accordance with LIHTC requirements. (b) A tenant's income eligibility is determined by comparing the house…

15 CAR § 86-402. Household size and income limits. (a)(1) I.R.C. § 42 mandates that the MTSP income limits adjusted for household size be used in determining income eligibility for the LIHTC program. (2)(A) A household can consist of one (1) or more persons. (B) Members need not …

15 CAR § 86-403. Gross annual income. (a)(1) Total income is gross income with no adjustments or deductions. (2) Tenant income is calculated in a manner consistent with the determination of annual income under Section 8 of the United States Housing Act of 1937 (Section 8), not in…

15 CAR § 86-404. Assets. (a)(1) The net income from assets must be considered when determining the tax credit eligibility of a household. (2) Asset information for all household members (including minors) should be obtained at the time of application. (3) Please refer to the late…

15 CAR § 86-405. Tenant application process. (a)(1) Because the LIHTC program uses special definitions for income, assets, and household composition, standard property management application forms may not collect sufficient information to determine tenant eligibility. (2) A compr…

15 CAR § 86-406. Tenant income verification. (a)(1) Owners/site managers must remember that the United States Department of Housing and Urban Development Handbook 4350.3 is the reference guide to be used for identifying income to be included or excluded when determining household…

15 CAR § 86-407. Tenant Income Certification (TIC). (a)(1) When all the income and asset verifications have been received, the owner/manager must: (A) Record and compute the twelve-month anticipated income and income from assets of adult occupants; and (B) Reconcile to amounts on…

15 CAR § 86-408. Waiting lists. (a) The waiting list is required as part of the selection process. (b) No one should be placed on the waiting list unless he or she has submitted a completed application. (c) All applications should be logged by date and time received. (d) The wait…

15 CAR § 86-409. The lease. (a)(1) All tenants occupying tax credit units must be certified and under lease no later than the date the tenant takes possession of the unit. (2) All parties must sign the lease by the beginning of the lease term date to be properly in effect and the…

15 CAR § 86-410. Recertification. (a)(1) I.R.C. § 42 requires that recertification of residents be completed on at least an annual basis. (2)(A) Annual recertification is crucial in identifying: (i) The one hundred forty percent (140%) rule situation; (ii) Student status; and (ii…

15 CAR § 86-411. Recertification exception for 100% LIHTC properties. (a) In reference to the recertification exception for one hundred percent (100%) LIHTC properties, the Arkansas Development Finance Authority reminds owners that the waiver refers to third-party verifications o…

15 CAR § 86-412. Acquisitions or rehabilitations. (a)(1) For households occupying a unit at the time of acquisition by the owner, the initial Tenant Income Certification is completed within one hundred twenty (120) days after the date of acquisition using the income limits in eff…

15 CAR § 86-413. Qualifying Section 8 tenants. (a) For Department of Housing and Urban Development Section 8 tenants only, United States Treasury regulations permit the submission of a letter from the contract administrator (e.g., local PHA) as verification that the family's inco…

15 CAR § 86-414. Defining elderly housing. (a) The Fair Housing Act, 42 U.S.C. §§ 3601 – 3619, states that there are three (3) types of elderly housing: (1)(A) Federal or state programs that the Secretary of Housing and Urban Development has recognized as being elderly so long as…

15 CAR § 86-501. LIHTC record retention. (a) The owner must retain the original tenant files (with original signatures), monthly unit data tracking, and development files for the first year of the credit period for a minimum twenty-one (21) years. (b) First-year records must be m…

15 CAR § 86-601. Noncompliance generally. (a)(1) Any determinations of noncompliance, including owner's failure to certify, will be communicated to the owner in writing. (2) The noncompliant conditions must be corrected within the period specified by the Arkansas Development Fina…

15 CAR § 86-602. Recapture of tax credits. (a) The most serious action the Internal Revenue Service can take against an ownership is the recapture of credits previously claimed. (b)(1) Only the Internal Revenue Service determines this course of action. (2) The Arkansas Developmen…

15 CAR § 86-701. Project changes and processing fees generally. (a)(1) It is understood and agreed that any changes to the original application must be submitted to the Arkansas Development Finance Authority in writing for review and approval. (2) A processing fee of five hundred…

15 CAR § 86-702. Change of ownership. (a)(1) Subject to the requirements of I.R.C. § 42 and the LURA, the owner must notify the Arkansas Development Finance Authority in writing thirty (30) calendar days prior to the contemplation of any: (A) Sale; (B) Transfer; or (C) Exchange. …

15 CAR § 86-703. Change in management. (a) Arkansas Development Finance Authority staff must be informed on a current basis of the management entity and personnel responsible for ensuring compliance with all applicable laws, rules, policies, etc. (b)(1) To facilitate that notific…

15 CAR § 86-801. Forms. (a) The Arkansas Development Finance Authority has adopted certain standardized forms for its compliance monitoring. (b) You may access the website for samples or call the Compliance Department of the Arkansas Development Finance Authority. (c) If no sampl…

15 CAR § 86-901. LIHTC properties and other programs generally. (a) Housing credit properties may receive assistance from other federal or state housing programs. (b) The Arkansas Development Finance Authority is the monitoring agency for the HOME Investment Partnerships Program …

15 CAR § 86-902. Combining low-income housing tax credits with HOME funds. (a) Rental projects that combine HOME funds with low-income housing tax credits (LIHTCs) must be structured to ensure compliance with the requirements of both programs. (b)(1) Tax credit projects must meet…

15 CAR § 86-903. Tax-exempt bonds. (a)(1) The Arkansas Development Finance Authority, as issuer of certain tax-exempt bonds, will monitor those projects that combined tax credits and tax-exempt bonds. (2) The authority will monitor those projects in accordance with the terms and …

15 CAR § 87-101. Introduction. (a) The Arkansas Development Finance Authority has as one (1) of its primary purposes the creation and preservation of affordable rental housing for low-income and moderate-income persons. (b) The authority has available volume cap for reservation i…

15 CAR § 87-102. [Reserved].

15 CAR § 87-103. Federal tax regulations and requirements. The applicant is responsible for understanding and following all applicable tax law requirements for the proposed development.

15 CAR § 87-104. Continuous funding round. Pursuant to Arkansas Code § 15-5-603: (1) Approximately twenty-six million two hundred nine thousand dollars ($26,209,000) in volume cap will be available for reservation through the Arkansas Development Finance Authority; and (2) Approx…

15 CAR § 87-105. Receipt of application. (a) Application for 2009 Multifamily Volume Cap requires compliance with: (1) Rules for the Allocation of the State Volume Cap for Private Activity Bonds, 15 CAR pt. 73, in effect at the time an application is filed; (2) This part; and (3)…

15 CAR § 87-106. Fees. (a) Application fee. (1) A five-hundred-dollar nonrefundable application fee is payable at the time an application is submitted to the Arkansas Development Finance Authority. (2) Applications submitted without the application fee will be considered incomple…

15 CAR § 87-107. Appraisal fee, market study, etc. (a) The applicant will be responsible for paying all costs incurred in providing the Arkansas Development Finance Authority with: (1) A market study; (2) An appraisal; (3) A construction cost analysis certification; or (4) Any ot…

15 CAR § 87-108. Issuance expenses and all other expenses incurred. (a) The applicant will be responsible for any expenses incurred regardless of whether or not a bond closing occurs. (b) The applicant is also responsible for such expenses incurred in the arbitrage rebate calcula…

15 CAR § 87-109. Review of application and approval process. (a) Notification. Notification, via the Arkansas Development Finance Authority’s website at www.arkansas.gov/adfa, will be sent to all developers and affordable housing professionals advising them of the: (1) Availabili…

15 CAR § 87-110. Criminal background check and disclosure requirements. (a)(1) Each applicant, consultant, and development team member shall complete a Criminal Background and Disclosure Form – Housing, Attachment A to the 2009 Multi-Family Housing Application. (2) Failure to sub…

15 CAR § 87-111. Certification. (a) The Arkansas Development Finance Authority reserves the right to disapprove any development for a reservation of volume cap, regardless of the evaluation. (b) The authority reserves the right, in its sole and absolute discretion, to suspend or …

15 CAR § 88-101. Arkansas’s three-tier selection process. (a) Tier One — 2006, 2007, and 2008 allocation recipients — Initially consider to allocate unused, returned, and as-needed 2009 tax credits. (1) Additional tax credits only. Per the Board of Directors of the Arkansas Devel…

15 CAR § 88-102. Board approval. (a) Any award made pursuant to Arkansas’s three-tier selection process is subject to the approval of the Board of Directors of the Arkansas Development Finance Authority. (b) The board has the authority to determine the amount of any additional ta…

15 CAR § 91-101. The national Housing Trust Fund. (a) The national Housing Trust Fund (HTF) is a new affordable housing production program that will complement existing federal, state, and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable …

15 CAR § 91-102. Arkansas Development Finance Authority’s specific use and allocation of national Housing Trust Fund funds. (a) The Arkansas Development Finance Authority will administer the national Housing Trust Fund program to provide funds to develop new construction of decen…

15 CAR § 91-103. General Housing Trust Fund requirements. (a) Where economically feasible, applicants will have an opportunity to compete for funding to address their unmet rental housing needs. (b) The Arkansas Development Finance Authority has established certain basic housing …

15 CAR § 91-104. Eligible activities. (a)(1) Eligible activities must comply with the requirements of 24 C.F.R. §§ 93.200, 93.201, and 93.301. (2) Under 24 C.F.R. § 93.200, national Housing Trust Fund (HTF) funds may be used for the production of affordable housing and rental hou…

15 CAR § 91-105. Eligible recipients. (a) Under 24 C.F.R. § 93.2, a recipient is defined as an organization, agency, or other entity (including a public housing agency, a for-profit entity, or a nonprofit entity) that receives national Housing Trust Fund (HTF) assistance from a g…

15 CAR § 91-106. Maximum per-unit development subsidy limits. (a)(1) As the administrator of the low-income housing tax credit and HOME Investment Partnerships Program funds, Arkansas Development Finance Authority determines the reasonableness of project costs, both hard and soft…