Arkansas Administrative Code › Agency 109 - Arkansas Development Finance Authority › Division 04 - Multi-Family Housing › Rule 109.04.06-003 - 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 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 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 $1.90 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
$400,000
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
				located in a Designated Low-Income County as defined in the 2005-2009 State
				Consolidated Plan, or developments with a commitment letter from USDA Rural
				Development, shall be no more than
$425,000
of the annual Housing
				Credits available in the calendar year.
B.
SET-ASIDES
.
1.
Non-Profit
			 Set-Aside
. Not less than ten percent (10%) of the Housing
			 Credits will be set aside for developments involving any qualified non-profit
			 organization that meets the standards set forth in IRC § 42(h)(5)(C). The
			 organization shall be a qualified non-profit organization, as defined in IRC
			 § 501(c)(3) or § 501(c)(4), which is not affiliated with or
			 controlled by a for-profit organization and has included, as one of its
			 tax-exempt purposes, the fostering of low-income housing.
Section XXVI of
			 the Multi-Family Housing Application
(NON-PROFIT DETERMINATION) shall
			 be completed and copies of the non-profit organization's Articles of
			 Incorporation and Internal Revenue Service ("IRS") documentation determining
			 the organization exempt from federal income tax under IRC § 501(a) shall
			 be included with the application.
2.
ADFA HOME and Rural
			 Development Set-Aside
. Approximately twenty percent (20%)
			 of the Housing Credits will be set-aside for successful HOME and Rural
			 Development ("RD") Program applicants. To be considered for HOME Program funds,
			 applicants shall request HOME funds by completing the appropriate sections in
			 the 2007 Multi-Family Housing Application when submitted by the APPLICATION
			 DEADLINE. Rural Development applicants shall submit a copy of the Rural
			 Development commitment letter with their Application. ADFA has entered into a
			 Memorandum of Understanding ("MOU") with Rural Development, and has agreed to
			 engage in cooperative efforts to enable ADFA and Rural Development to
			 effectively evaluate Housing Credit requests of Rural Development applicants.
			 The MOU will be considered by ADFA when reviewing Rural Development
			 applications for Housing Credits.
3.
Assisted Living
			 Set-Aside
. A maximum of $400,000 of the Housing Credits
			 will be set aside for qualified assisted living developments. The applicant is
			 required to submit a copy of the Certificate of Need or Permit of Approval from
			 the State of Arkansas at the time the application is submitted to ADFA.