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109.04.6-VIII. Maintaining Compliance with HOME Occupancy Requirements.

AR ADC 109.04.6-VIIIArkansas Administrative Code

West's Arkansas Administrative Code
Title 109. Development Finance Authority
Division 04. Multi-Family Housing
Rule 6. Compliance Monitoring Policies and Procedures Manual for the Home Program
Ark. Admin. Code 109.04.6-VIII
109.04.6-VIII. Maintaining Compliance with HOME Occupancy Requirements.
Projects with Fixed HOME-Assisted Units
Over Income HOME-assisted Units: If the income of a household residing in a HOME-assisted unit rises above 50 percent of area median income (AMI) but is still below 80 percent at recertification, High and Low HOME Rent units may “float” in fixed projects. The unit would become a High HOME Rent unit. The next available HOME unit would be designated a Low HOME Rent unit.
If the income of a household in a HOME-assisted unit rises above 80 percent of AMI at recertification, the household may continue to rent the unit and the household must pay monthly rent equal to the lesser of:
__the rent permitted by state law; or
__30 percent of the family's adjusted monthly income at annual recertification.
If the project received Low Income Housing Tax Credits, the tax credit rent prevails.
Vacated HOME-assisted Units: When households vacate fixed HOME-assisted units, households in appropriate income categories must replace them. Low HOME rent units must be reoccupied by households with incomes at or below 50 percent of AMI and High HOME rent units must be reoccupied by households with incomes at or below 80 percent of AMI.
Projects with Floating HOME-assisted Units
Over Income HOME-assisted Rent Units: If the income of a household in a Low HOME rent unit increases above 50 percent of AMI but does not exceed 80 percent of AMI, the next available comparable unit must be reoccupied by a household with an income at or below 50 percent of AMI.
If the income of a household in a HOME-assisted unit rises above 80 percent of AMI at recertification, the household must pay a monthly rent equal to the lesser of:
__the rent permitted by law; or
__30 percent of the family's adjusted monthly income at annual recertification
If the project received Low Income Housing Tax Credits, the tax credit rent prevails.
The rent charged to over-income tenants in floating units is “capped” at market rent for comparable (unassisted) units in the neighborhood and the next available comparable unit must be occupied by a household in the appropriate income category to satisfy the project's HOME occupancy requirements.
Vacated HOME-assisted Units: If a floating HOME-assisted unit is vacated, the vacated unit must be reoccupied by an eligible household in the appropriate income category to satisfy the project's HOME occupancy requirements; or another comparable unit (i.e. non-HOME assisted) must be occupied by an eligible household of appropriate income and substituted for the vacant HOME-assisted unit;
Vacated HOME-assisted units that have been properly replaced by new units can then be leased to households at any income, provided the HOME-assisted units and non-assisted units are comparable in characteristics.
Current with amendments received through December 15, 2023. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.04.6-VIII, AR ADC 109.04.6-VIII
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