(a)

1. (1) An allocation of state or federal low-income housing tax credits (LIHTCs) or tax-exempt private activity volume cap bonds or HOME Investment Partnerships Program funds will be denied to any applicant or recipient due to the following:

   1. (A) A conviction of those felonies listed below;
   2. (B) A conviction of certain felonies as described below of any principal of such applicant or recipient; or
   3. (C) A conviction of certain felonies as described below of any:

(i) Consultant;

1. (ii) Developer;

   1. (iii) Other development team member; or

      1. (iv) Principal of such:

(b) (b) Developer; or

1. (c) (c) Other development team member.

2. (2) If the development team member is a partnership, association, limited liability company, or corporation, “principal” shall include:

   1. (A) Its general partner or partners;
   2. (B) Its managing member or members; or

   3. (C) Any person who has at least a ten percent (10%) ownership interest in any ownership entity of such:

      1. (i) Partnership;
      2. (ii) Association;
      3. (iii) Limited liability company; or
      4. (iv) Corporation.
3. (3) HOME Investment Partnerships Program participants shall include any consultant, development team member, or public official affiliated with the HOME Investment Partnerships Program application.

(b)

1. (1) A borrower of Arkansas Development Finance Authority’s economic development bond programs or direct loan/bond guaranty loan programs will be denied program participation due to the following:

   1. (A) A conviction of those felonies listed below; or
   2. (B) A conviction of certain felonies as described below of any principal of such applicant or recipient.

2. (2) If the borrower is a partnership, association, limited liability company, or corporation, “principal” shall include:

   1. (A) Its general partner or partners;
   2. (B) Its managing member or members; or

   3. (C) Any person who has at least a ten percent (10%) ownership interest in any ownership entity of such:

      1. (i) Partnership;
      2. (ii) Association;
      3. (iii) Limited liability company; or
      4. (iv) Corporation.