1. (a) Amount.

   1. (1) The base amount of annual credit authority is based upon population estimates released each year by the Internal Revenue Service.

   2. (2)

      1. (A) The maximum amount of housing credits that may be reserved for allocation to one (1) individual development shall be no more than six hundred thousand dollars ($600,000) of the annual housing credits available in the calendar year.
      2. (B) However, the maximum amount of housing credits that may be reserved for allocation to one (1) individual development that is located in a designated low-income county as defined in the currently applicable state consolidated plan, whose structure or structures are individually listed in the National Register of Historic Places or have been determined to contribute to a National Register Historic District, or that is a qualified assisted living development shall be no more than six hundred twenty-five thousand dollars ($625,000) of the annual housing credits available in the calendar year.

   3. (3)

      1. (A) Pursuant to I.R.C. § 42(d)(5)(B)(v), the Arkansas Development Finance Authority designates that the eligible basis of any qualified low-income new building will be increased by thirty percent (30%) if it is:

2. (i) A building within a qualified assisted living development;

   1. (ii) Located in any low-income county designated in the currently applicable state consolidated plan;

      1. (iii) Located in a county in which a tax credit award has not been made in the past three (3) years;

         1. (iv) Funded in part by United States Department of Agriculture Rural Development; or
         2. (v) A building that the Arkansas Development Finance Authority determines needs the boost to be economically feasible.

      2. (B)

         1. (i) However, it is not available to any building that would already qualify for boost under subdivisions (a)(3)(A)(i), (a)(3)(A)(ii), (a)(3)(A)(iii), or (a)(3)(A)(iv) of this section.
         2. (ii) This boost will not apply to any noncompetitive four percent (4%) application.

3. (b) Nonprofit set-aside.

   1. (1) Not less than ten percent (10%) of the housing credits will be set aside for developments involving any qualified nonprofit organization that meets the standards set forth in I.R.C. § 42(h)(5)(C).

   2. (2) The organization shall be a qualified nonprofit organization, as defined in I.R.C. § 501(c)(3) or § 501(c)(4), that:

      1. (A) Is not affiliated with or controlled by a for-profit organization; and
      2. (B) Has included in its articles of incorporation, as one (1) of its tax-exempt purposes, the fostering of low-income housing.
   3. (3) The appropriate section of the MFHA (nonprofit determination) shall be completed and copies of the nonprofit organization’s articles of incorporation and Internal Revenue Service documentation determining the organization exempt from federal income tax under I.R.C. § 501(a) shall be included with the MFHA.

Codification Notes: “MFHA” means multi-family housing application.