(a)

1. (1) Fundamental requirements include the following:

   1. (A) The project must be residential rental property;
   2. (B) The owner must establish and maintain a minimum set-aside of units that will be available to and occupied by low-income tenants;
   3. (C) Tenant eligibility must be properly documented;
   4. (D) Rents must be affordable to low-income tenants;
   5. (E) Habitability standards must be maintained; and
   6. (F) The residential rental units must be available for use by the general public in a nondiscriminatory manner.
2. (2) Additional requirements may also apply.

(b)

1. (1) After a qualified development has been placed in service, the Arkansas Development Finance Authority will initiate compliance monitoring reviews.

2. (2) The authority’s staff will audit each development:

   1. (A) Within one hundred eighty (180) days following the first taxable credit year; and
   2. (B) One every three (3) years throughout the compliance period.

3. (3) The authority’s staff will:

   1. (A) Conduct on-site inspections of all buildings in the project; and
   2. (B) Randomly select a minimum twenty percent (20%) of tax credit units and tenant files for review.
4. (4) During the initial review, staff will audit forty percent (40%) or more of the tax credit units to confirm satisfaction of the minimum set-aside selection.

(c) The authority’s staff will contact the owner or manager to schedule the on-site inspections, which will include the following reviews:

1. (1) Record keeping;
2. (2) Fair housing;
3. (3) Tenant files; and

4. (4)

   1. (A) Uniform Physical Conditions Standards for Buildings, Units, and Common Areas and the authority’s design standards.
   2. (B) See 15 CAR § 86-205.