The Arkansas Development Finance Authority (ADFA or the Authority), a public body politic and corporate, with corporate succession, was created May 1, 1985 by Act 1062. This act abolished the former Arkansas Housing Development Agency that had existed since 1977. ADFA was created in part to assist low-income and under-served Arkansans in the financing, development and preservation of affordable housing. In this quest, ADFA receives and administers funds provided by the HOME Investment Partnerships Act (the HOME Program) as a Participating Jurisdiction (PJ) through the U. S. Department of Housing and Urban Development (HUD).

ADFA is responsible for monitoring the HOME Program. During the period of affordability, ADFA's Compliance Monitoring staff will audit files and conduct on-site inspections of all completed HOME-funded projects, to-wit: rental units, single-family homeowner rehabilitation, acquisition rehabilitation, and Tenant-Based Rental Assistance (TBRA).

The purpose of monitoring is to ensure that housing and housing-related services are being delivered in accordance with the HOME requirements. Specifically, Program rules require that funds be used to provide housing and housing-related services for low and very-low-income residents; that any housing produced with HOME funds meet quality standards and is decent, safe and sanitary; and that the housing opportunities created with HOME funds are available and affordable for specific periods of time. Affordability periods can range from five to twenty years, depending on the type of project and amount of HOME funds. The HOME Program guidelines appear in 24 CFR Part 92 of the HOME Investment Partnerships Program Final Rule dated September 16, 1996 (with May 28, 1997, technical corrections and August 22, 1997, amendments) (the Final Rule).

This Monitoring Policies and Procedures Manual is presented to provide an overview of procedures as they pertain to the HOME Program. This manual is designed to provide guidance to HOME program participants in maintaining (1) program and project records; (2) records pertaining to rents, income of tenants, and Affirmative Fair Housing guidelines throughout the affordability period; and (3) compliance with minimum housing quality standards for safe, decent, and sanitary conditions. The guidelines herein are not intended to be all-inclusive. In the event of a conflict, the HOME Program guidelines will control. Participants and recipients are responsible for compliance with amendments and updates to the HOME guidelines.

The participant or recipient is responsible for compliance with the requirements of the HOME Program rules. ADFA's obligation to monitor the projects for compliance does not make ADFA liable for a participant's or recipient's non-compliance. Noncompliance with HOME Program requirements can be costly, as it can lead to the repayment of HOME funds. Continued non-compliance may adversely affect an applicant's current and future participation in the HOME program. ADFA reserves the right to implement additional policies as needed.

Any questions regarding this Manual should be directed to: