Arkansas Administrative Code › Agency 109 - Arkansas Development Finance Authority › Division 04 - Multi-Family Housing › Rule 109.04.10-008 - 2010 Housing Credit Program Qualified Allocation Plan (QAP)

Current through Register Vol. 49, No. 6, June, 2024
I.
DEVELOPMENT OF THE PLAN
.
The Arkansas Development Finance Authority ("ADFA" or the
				"Authority") is charged with the responsibility of administering federal
				low-income housing tax credits ("Housing Credits") for the State of Arkansas
				(the "State"). ADFA is also charged with the responsibility of promulgating
				rules and regulations concerning the allocation of the Arkansas low-income
				housing tax credit (the "State Housing Credits") pursuant to Ark. Code Ann.
				§
									26-51-1701
et
				seq
. The Tax Reform Act of 1986 created the Housing Credit to
				encourage the private sector to invest in the construction and rehabilitation
				of rental housing for low and moderate-income individuals and families. Section
				42 of the Internal Revenue Code of 1986, as amended ("IRC" or the "Code"),
				mandates that housing credit agencies adopt a Qualified Allocation Plan ("QAP")
				for allocation of the Housing Credit to low-income rental developments
				throughout their respective states. Low-income housing tax credits shall be
				allocated in accordance with this plan and any amendments thereto.
II.
LIMITS ON
			 ALLOCATION OF CREDITS
.
The Code requires that ADFA determine "the [Housing Credit]
				dollar amount allocated to the development will not exceed the amount the
				housing credit agency determines is necessary for the financial feasibility of
				the development and its viability as a qualified low-income housing development
				throughout the credit period." Housing Credits will be limited to the amount
				the Authority, in its sole discretion, deems necessary. Housing Credits are not
				intended to provide the primary or principal source of financing for a
				development, but are intended to provide financial incentives sufficient to
				fill "gaps" which would otherwise exist in developing affordable rental housing
				for low-income households.
III.
HOUSING CREDIT
			 ALLOCATION STANDARDS
.
A.
AMOUNT
The base amount of annual credit authority is currently
				calculated at $2.10 per capita. This per capita amount is based upon population
				estimates released each year by the Internal Revenue Service.
The maximum amount of Housing Credits that may be reserved for
				allocation to one individual development shall be no more than
$600,000
of the annual Housing Credits available in the calendar
				year.
HOWEVER
,
the maximum amount of
				Housing Credits that may be reserved for allocation to one individual
				development:
1) that is located in a
			 Designated Low-Income County as defined in the currently applicable State
			 Consolidated Plan;
2) whose
			 structure(s) are individually listed in the National Register of Historic
			 Places or have been determined to contribute to a Registered Historic
			 District;
3) that is a qualified
			 Assisted Living development; or
4) a
			 development with a commitment letter from USDA Rural Development, shall be no
			 more than
$625,000
of the annual Housing Credits available in the
			 calendar year.
Pursuant to Section 42(d)(5)(B)(v) of the IRC, the Authority
				designates that the eligible basis of any qualified low-income new building
				will be increased by thirty (30%) if it is a building within a qualified
				Assisted Living development or located in any low-income county designated in
				the currently applicable State Consolidated Plan (currently: Bradley, Chicot,
				Crittenden, Desha, Fulton, Jackson, Lafayette, Lee, Monroe, Newton, Phillips,
				Polk, St. Francis, Sharp, Stone, and Woodruff); and