1. (a)

   1. (1) The Arkansas Development Finance Authority is charged with allocating no more housing credits to any given development than is required to make that development economically feasible.
   2. (2) This decision shall be made solely at the discretion of the Arkansas Development Finance Authority, but in no way represents or warrants to any sponsor, investor, lender, or anyone else that the project is, in fact, feasible or viable.

2. (b)

   1. (1) The Arkansas Development Finance Authority’s review of documents submitted in connection with the allocation is for its own purposes.
   2. (2) The Arkansas Development Finance Authority makes no representations to the owner or anyone else as to compliance with the Internal Revenue Code, United States Treasury regulations, or any other laws or regulations governing housing credits.
   3. (3) The applicant and owner of the development are responsible for understanding and following all applicable tax law requirements for the development.

3. (c) No director, officer, agent, or employee of the Arkansas Development Finance Authority shall be personally liable concerning any matters arising out of, or in relation to the:

   1. (1) Award or allocation of housing credits;
   2. (2) Rejection of any MFHA for housing credits;
   3. (3) Award or lack of award of any other Arkansas Development Finance Authority-administered resource, whether federal or state in origin;
   4. (4) Closing of any awarded funds or lack of closing;
   5. (5) Failure of a development to comply with federal, state, or local laws, rules, regulations, or other governing instruments;
   6. (6) Recapture of any credits or funds from any development;
   7. (7) Failure of any development to remain financially feasible; or
   8. (8) Failure of any development to meet federal, state, or local deadlines.

4. (d) The Arkansas Development Finance Authority reserves the right to:

   1. (1) Amend this part as necessary to prudently administer Arkansas Development Finance Authority-administered funds or to comply with state or federal law;
   2. (2) Adopt rules ancillary to this part as necessary to prudently administer Arkansas Development Finance Authority-administered funds;
   3. (3) Make any and all necessary technical changes to this part as circumstances may warrant; and
   4. (4) Do or require all things necessary or convenient to carry out its purposes, pursuant to Arkansas Code § 15-5-207(b)(20)(A) and § 15-5-207(b)(26).

5. (e)

   1. (1) It is the policy of the Arkansas Development Finance Authority to prohibit applicants from contacting the Arkansas Development Finance Authority’s staff in any manner regarding any application after submission of application and during the Arkansas Development Finance Authority’s review period, unless the Arkansas Development Finance Authority’s staff has initiated contact for clarification of material or questions pertinent to application underwriting.
   2. (2) The Arkansas Development Finance Authority’s review period concludes when the Board of Directors of the Arkansas Development Finance Authority approves successful applicants.

   3. (3) Violations of this policy will be brought to the attention of the Board Housing Review Committee and could result in:

      1. (A) A downgrade to the final scoring;
      2. (B) Rejection of the application from consideration for an award of federal or state housing credits; or
      3. (C) Suspension or disqualification from the Arkansas Development Finance Authority’s housing tax credit program.

6. (f)

   1. (1) The provision of these policies and procedures shall apply to any multi-family housing program administered or multi-family housing transaction funded by the Arkansas Development Finance Authority.

   2. (2)

      1. (A) The Arkansas Development Finance Authority retains the right to suspend for good cause any entity who does not exhibit the capacity to effectively administer, manage, and/or utilize resources provided by the Arkansas Development Finance Authority to further affordable housing in Arkansas.
      2. (B) By action of the board of directors dated August 21, 2003, the President of the Arkansas Development Finance Authority shall have full authority to suspend for good cause persons or organizations from participation in the Arkansas Development Finance Authority’s housing programs.

   3. (3)

      1. (A) Any appeal of such suspension shall be presented in writing to the president for possible consideration.
      2. (B) The appeal shall provide written justification for the appeal request.
   4. (4) The president shall review the written appeal request and make a recommendation to the Board Housing Review Committee as to the merits of the justification provided in the appeal request.
   5. (5) The decision to allow any appeal of suspension shall reside with the Board Housing Review Committee, which will set the time, date, terms, and requirements associated with any appeal process granted by the Board Housing Review Committee.

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