1. (a) This part presents an overview of the Arkansas Development Finance Authority’s policies as they pertain to compliance monitoring for the Low-Income Housing Tax Credit (LIHTC) program.

2. (b)

   1. (1) The procedures are designed to assist owners and managers of developments that have received an allocation pursuant to the LIHTC program to ensure that the developments remain in compliance with I.R.C. § 42.
   2. (2) The procedures are not intended to be all-inclusive.
3. (c) In the event of a conflict or inaccuracy, the Internal Revenue Code will control.

4. (d)

   1. (1) If the development has received a combination of funds from other government entities, owners generally follow the most restrictive regulations.
   2. (2) Owners must be aware, however, that they may have to satisfy the requirements of all applicable regulations.

   3. (3)

      1. (A) For instance, an owner may have received funds under a governmental program in which he or she agreed to rent a certain number of units to persons earning forty percent (40%) or less of the area median income.
      2. (B) The owner must be sure to satisfy this restriction in addition to the applicable LIHTC area median income limit.
5. (e) Employees and officers of the authority are not liable for any adverse consequences that affect the taxpayer or investor relative to compliance with the federal tax code.

6. (f)

   1. (1) The authority reserves the right to implement additional policies as needed.
   2. (2) Also, new rulings or other changes may be made periodically.
7. (g) Owners are responsible for compliance with any amendments or updates to the federal regulations.
8. (h) Any questions regarding this part should be directed to: Compliance Monitoring Department Arkansas Development Finance Authority P. O. Box 8023 Little Rock, AR 72203-8023 Telephone: (501) 682-5900 Telecopy: (501) 682-5859

Codification Notes: "LIHTC" means low-income housing tax credit.