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109.04.5-3. Special Regulations Regarding Multifamily Residential Housing Bonds.

AR ADC 109.04.5-3Arkansas Administrative Code

West's Arkansas Administrative Code
Title 109. Development Finance Authority
Division 04. Multi-Family Housing
Rule 5. Second Amended Rules and Regulations Regarding Allocation of the State Volume Cap for Private Activity Bonds
Ark. Admin. Code 109.04.5-3
109.04.5-3. Special Regulations Regarding Multifamily Residential Housing Bonds.
The regulations contained in this Section 3 shall apply to all Applications for Reservation of volume cap applicable to multifamily residential housing bonds. The provisions of Section 1 shall apply to Applications for Reservation applicable to multifamily residential housing bonds to the extent not in conflict with the provisions of this Section 3.
3.1 Rules for Multifamily Housing Bond Applications from ADFA Category.
(a) When the Authority is to be the issuer of multifamily housing bonds, priority of Applications for Reservation within the ADFA Multifamily Category (as set forth in Arkansas Code Annotated Section 15-5-603(a)(1)) shall be determined according to the procedure set forth in this Section 3.1.
(b) At the beginning of each calendar year, the Authority shall set the amount of multifamily housing bond volume cap to be made available from the Authority's statutory allocation of volume cap. The Authority shall make a general public announcement of the availability of such ADFA multifamily housing bond volume cap and shall also announce a competitive funding round (the “First Funding Round”) along with applicable deadlines for such First Funding Round.
(c) On or prior to the deadline for the First Funding Round, applicants for ADFA multifamily housing bonds shall file an application with the Authority (the “ADFA Multifamily Application”). Each ADFA Multifamily Application shall comply with the Guidelines for Allocating Tax Exempt Private Activity Multifamily Volume Cap (the “Guidelines”) available on the Authority's web site. Applications shall include (i) the Low Income Housing Tax Credit Application (the “Housing Application”); (ii) all threshold items required by the Guidelines; (iii) all other pertinent documentation; and (iv) be accompanied by the application fee set forth in the Guidelines.
(d) The Authority staff will review the ADFA Multifamily Applications for completeness, inclusion of threshold items, site plan, unit layout (floor) plans and project specifications. Applicants will also be required to make a formal presentation to the Authority's Housing Review Committee. Based on staff review and the formal presentations, the Housing Review Committee will make recommendations of applications to be selected for volume cap and tax credit allocation to the full Board. The Board will make the final selection of ADFA Multifamily Applications at a regular Board meeting.
(e) Commitments of volume cap and tax credits to applicants will be valid only with respect to a specific development at a specific site. The applicant shall notify the Authority of any material change in the information provided to the Authority during the application process. Any change in the project site, the applicant entity, the ownership entity, or the size, nature, or other characteristics of the project may, in the Authority's sole discretion, invalidate the commitment.
(f) Additional funding rounds may be conducted depending on the availability of multifamily volume cap from the ADFA Multifamily Category or as may be transferred from ADFA's other allocation categories pursuant to Arkansas Code Annotated Section 15-5-603(a)(2). Notice of any additional funding rounds shall be given to bond counsel, underwriters, developers and other concerned entities, and such rounds shall be conducted in the same manner as described in this Section 3.1.
(g) When volume cap has been allocated from the ADFA Multifamily Category, the Affected Bonds must be issued within time deadlines established in the allocation process. Such deadlines shall not be shorter than the Reservation Period set forth in Section 1.6, but such deadlines will take priority over the Reservation Period provisions of these Regulations.
3.2. Rules for Multifamily Housing Bond Applications from General Category.
(a) All Applications for Reservation from the General Category relating to multifamily residential housing bonds (“General Category Multifamily Applications”) shall include a market study of the rental housing market in the area in which the project to be financed will be located, which market study must show sufficient demand for the proposed project, in the discretion of the Authority.
(b) Before the Authority assigns a priority number to any General Category Multifamily Application, the Authority must determine:
(i) that, based on the market study and other information available to the Authority, there is sufficient need for the multifamily project in the area in which it is proposed to be located;
(ii) that the proposed project will be constructed with such quality in workmanship, materials, energy efficiency, and design as is, at a minimum, standard for projects of a similar nature in the area in which it is to be located; and
(iii) that the developer of the project to be financed with the proceeds of the bonds, based on past performance, general reputation, demonstrated resources, community support, and proposed third-party alliances, has the ability to close the proposed bond transaction and construct and operate the proposed project.
(c) The Authority may publish guidelines for applications that, as the Authority deems appropriate, clarify and quantify the standards set forth in Section 3.2(b), above.
3.3. Multifamily Housing Bond Applications When No Shortage Exists. When no shortage has been declared with respect to state allocation of volume cap in the General Category, assuming a General Category Multifamily Application meets the threshold requirements set forth in Section 3.2(b), above, the President of the Authority shall set the priority number for each project based on the Filing Time of the General Category Multifamily Application.
3.4. Multifamily Housing Bond Application When Shortage Has Been Declared. When a shortage has been declared in the General Category (as defined in Section 2.2(a) above), the Volume Cap Allocation Committee may either (i) determine the priority and amount of volume cap to be allocated to each project based on the factors set forth in Section 3.2(b), or (ii) refer all of the General Category Multifamily Applications back to the Authority for the Authority to conduct competitive rounds in a manner similar to that set forth in Section 3.1 for ADFA Multifamily Bonds...
Current with amendments received through December 15, 2023. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.04.5-3, AR ADC 109.04.5-3
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