109.04.1-VI. Allocation of Affordable Neighborhood Housing Tax Credits.
AR ADC 109.04.1-VIArkansas Administrative Code
Ark. Admin. Code 109.04.1-VI
109.04.1-VI. Allocation of Affordable Neighborhood Housing Tax Credits.
The Affordable Neighborhood Housing Tax Credit Act of 1997, (the “ANHTC Act”), codified at Ark. Code Ann. § 15-5-1301 et seq., provides that any business firm engaging in the provision of affordable housing assistance activities in the State of Arkansas may be entitled to receive Affordable Neighborhood Housing Tax Credits (“ANHTCs”). “Affordable housing assistance activities” is defined to include any “money, real, or personal property expended or devoted to the construction or rehabilitation of affordable housing units developed by or in conjunction with any governmental unit or not-for-profit corporation.” The ANHTC Act limits the total allocation of ANHTCs to $750,000 in any taxable year.
The Authority and the Arkansas Department of Finance and Administration have determined that, in the best interest of affordable housing in Arkansas, “affordable housing assistance activities” must be devoted to those low-income housing developments which qualify for Housing Tax Credits pursuant to Section 42 of the Internal Revenue Code through the Authority's federal low-income housing tax credit or tax-exempt bond programs for residential rental housing. Thus, any business firm seeking allocation of ANHTCs must do so in conjunction with an MFHA for federal low-income housing tax credits or tax-exempt bonds to develop affordable housing units by or in conjunction with any governmental unit or not-for-profit corporation.
A proposal for ANHTCs must be submitted with the MFHA for federal low-income housing tax credits. In its MFHA for federal low-income housing tax credits, the applicant will include a commitment from each business firm providing “affordable housing assistance activities” to the proposed low-income housing development. Each such commitment must:
* The ANHTC Act limits the amount of tax credits allowable to a business firm to thirty percent (30%) of the total amount invested. If the affordable housing assistance activity is other than money, the business firm must provide an appraisal certifying the value of the property invested.
If the business firm commits its “affordable housing assistance activities” to a governmental unit, a not-for-profit organization, or a “neighborhood organization”, as defined within the ANHTC Act, which is not the applicant on the MFHA, the applicant must submit with its MFHA the following from such governmental unit, not-for-profit organization or “neighborhood organization”:
For each proposal of “affordable housing assistance activities” submitted with the MFHA, the applicant must certify in writing that it will expend or devote the “affordable housing assistance activities” committed to the construction or rehabilitation of affordable housing units within the development.
Based on demonstrated need in the MFHA, the Authority will give a priority allocation of ANHTCs to those developments that are in designated low-income counties under the State's Consolidated Plan submitted to the federal Department of Housing and Urban Development. The list of these counties is contained in the MFHA. The allocation of ANHTCs will be as follows:
The Authority will reserve and allocate ANHTCs in conjunction with its reservation and allocation or issuance of federal low-income housing tax credits. With its issuance of IRS Forms 8609 for federal low-income housing tax credits, the Authority will issue a Certificate of Allocation certifying the amount of ANHTCs allocated to the business firm entitled to such allocation. The Authority will annually provide the Arkansas Department of Finance and Administration with a copy of each Certificate of Allocation for ANHTCs allocated that year. The Arkansas Department of Finance and Administration will be notified of any revocation of ANHTCs.
Applicants shall comply with all applicable federal, state and local laws, including but not limited to Section 42 of the Code. ADFA's Compliance Monitoring Policies and Procedures Manual for the Low-Income Housing Tax Credit Program may be obtained from ADFA's office, and may also be accessed at ADFA's website (www.arkansas.gov/adfa). Fair Housing manuals may be obtained from HUD's Little Rock office, and the Fair Housing Accessibility Guidelines may be accessed at HUD's website (www.hud.gov).
The owner will be required to prepare and submit to the Authority, no later than February 1 of each year following the first taxable year of the owner's credit period, an Owner's Certificate of Continuing Program Compliance which, among other certifications, certifies that for the preceding 12-month period no tenants in low-income units were evicted or had their tenancies terminated other than for good cause and that no tenants had an increase in the gross rent with respect to a low-income unit other than as permitted under Section 42 of the Internal Revenue Code. The owner will also be required to prepare and submit to the Authority, no later than February 1 of each year following the first taxable year of the owner's credit period, the LIHTC Compliance Monitoring Status Report. Both the Certificate of Continuing Program Compliance and the LIHTC Status Report shall be submitted under penalty of perjury to the Authority in accordance with Internal Revenue Service procedures for monitoring compliance. The compliance monitoring procedures apply to all buildings placed in service in Arkansas that have received an allocation of Housing Credits as determined by Section 42 of the Code. Regular site inspections to monitor compliance with habitability standards, according to the Uniform Physical Conditions Standards established by the United States Department of Housing and Urban Development and ADFA design standards, will be carried out by the Authority at least once every three (3) years.
In the event the Authority becomes aware of non-compliance or upon the failure to submit a Certificate of Continuing Program Compliance, the Authority will notify the owner of the areas of non-compliance and the required timeframe to correct the deficiencies. There is a maximum of sixty (60) days to correct such non-compliance. Additionally, the Authority will notify the IRS, as required, of any non-compliance or failure to certify no later than forty-five (45) days after the end of the allowed time for correction.
Frequent or consistent non-compliance of Applicant or any member of the development team in regard to the operation of any development may result in points reduction in the scoring of applications and/or suspension of the Applicant or development team member from applying for tax credits for a set term of time and/or compliance with conditions set forth by ADFA. Frequent or consistent non-compliance shall be determined in the sole discretion of ADFA and will include but not be limited to reports from ADFA's Compliance Department and IRS Form(s) 8823.
Amended Oct. 23, 2009; Nov. 5, 2010; Nov. 23, 2011; Nov. 21, 2012; Oct. 25, 2013; Dec. 19, 2014.
So in original.
Current with amendments received through December 15, 2023. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.04.1-VI, AR ADC 109.04.1-VI
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