Arkansas Administrative Code › Agency 109 - Arkansas Development Finance Authority › Division 04 - Multi-Family Housing › Rule 109.04.08-002 - Housing Credit Program Qualified Allocation Plan

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 or 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 $2.20 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
$450,000
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 2005-2009 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
$475,000
of the annual Housing Credits available in the
			 calendar year.
If allowed by federal law, development owners, including those
				receiving allocations prior to July 30, 2008, whose new buildings are not
				federally subsidized and will be placing in service between July 30, 2008 and
				December 31, 2013, that elected to lock-in the credit percentage at a rate less
				than nine percent (9%) may request the Authority in writing to rescind such
				election. If allowed by federal law, the Authority will automatically approve
				of the rescission; however, owners will receive no federal low-income housing
				tax credits in excess of the amount previously allocated for the construction
				or rehabilitation of the development.