1. (a)

   1. (1) The Arkansas Development Finance Authority’s staff will:

      1. (A) Conduct inspections of the units that are randomly selected for file audit; and
      2. (B) Utilize Uniform Physical Conditions Standards and/or authority-approved design standards.
   2. (2) Owners may utilize standardized inspection forms for quarterly unit inspections.

   3. (3) The authority’s staff will:

      1. (A) Inspect major areas of the property; and
      2. (B)

2. (i) Identify the defect and the severity level of the defect.

   1. (ii) The levels are 1, 2, and 3 with 3 being the most severe.
   2. (4) Any life-threatening hazard must be addressed immediately.

   3. (5) UPCS identifies the following areas for inspection:

      1. (A) The site;
      2. (B) Building exterior;
      3. (C) Building systems;
      4. (D) Dwelling units;
      5. (E) Common areas; and
      6. (F) Health and safety considerations.

3. (b) The site.

   1. (1) Site components, such as fencing, gates, retaining walls, grounds, lighting, mailboxes, project signs, parking lots/driveways/roads, play areas and equipment, refuse disposal, and storm drainage must be:

      1. (A) Free of health and safety hazards; and
      2. (B) In good repair.

   2. (2) The site must not be subject to material adverse conditions, such as:

      1. (A) Abandoned vehicles;
      2. (B) Dangerous walks or steps;
      3. (C) Poor drainage;
      4. (D) Septic tank back-ups;
      5. (E) Sewer hazards;
      6. (F) Excess accumulation of trash;
      7. (G) Vermin or rodent infestation; or

      8. (H) Fire hazards.

         1. (c) The building exterior.

   3. (1) Each building on the site must be:

      1. (A) Structurally sound;
      2. (B) Secure;
      3. (C) Habitable; and
      4. (D) In good repair.

   4. (2) Each building's doors, fire escapes, foundations, lighting, roofs, walls, and windows, where applicable, must be:

      1. (A) Free of health and safety hazards;
      2. (B) Operable; and

      3. (C) In good repair.

         1. (d) Building systems. Each building's domestic water, electrical system, elevators, emergency power, fire protection, HVAC, and sanitary system must be:
   5. (1) Free of health and safety hazards;
   6. (2) Functionally adequate;
   7. (3) Operable; and
   8. (4) In good repair.

4. (e) Dwelling units.

   1. (1) Each LIHTC dwelling unit must be:

      1. (A) Structurally sound;
      2. (B) Habitable; and
      3. (C) In good repair.

   2. (2) All areas and aspects of the dwelling unit (for example the unit's bathroom, call-for-aid, if applicable, ceiling, doors, electrical systems, floors, hot water heater, HVAC (where individual units are provided), kitchen, lighting, outlets/switches, patio/porch/balcony, smoke detectors, stairs, walls, and windows) must be:

      1. (A) Free of health and safety hazards;
      2. (B) Functionally adequate;
      3. (C) Operable; and
      4. (D) In good repair.

   3. (3)

      1. (A) Where applicable, the dwelling unit must have hot and cold running water, including an adequate source of potable water.
      2. (B) Note, for example, that single-room occupancy units need not contain water facilities.

   4. (4) If the dwelling unit includes its own sanitary facilities, such facilities must be:

      1. (A) In proper operating condition;
      2. (B) Usable in privacy; and
      3. (C) Adequate for personal hygiene and the disposal of human waste.
   5. (5) The dwelling unit must include at least one (1) battery-operated or hard-wired smoke detector, in proper working condition, on each level of the unit.

5. (f) Common areas.

   1. (1) The common areas must be:

      1. (A) Structurally sound;
      2. (B) Secure; and
      3. (C) Functionally adequate for the purposes intended.

   2. (2) The basement/garage/carport, restrooms, closets, utility, mechanical, community rooms, halls/corridors, stairs, kitchens, laundry rooms, office, porch, patio, balcony, and trash collection areas, if applicable, must be:

      1. (A) Free of health and safety hazards;
      2. (B) Operable; and
      3. (C) In good repair.

   3. (3) All common area ceilings, doors, floors, HVAC, lighting, outlets/switches, smoke detectors, stairs, walls, and windows, to the extent applicable, must be:

      1. (A) Free of health and safety hazards;
      2. (B) Operable; and
      3. (C) In good repair.
   4. (4) These standards for common areas apply to all housing but will be particularly relevant to congregate housing, independent group homes/residences, and single-room occupancy units in which the individual dwelling units (sleeping areas) do not contain kitchen and/or bathroom facilities.

6. (g) Health and safety concerns.

   1. (1)

      1. (A) All areas and components of the housing must be free of health and safety hazards.

      2. (B) These areas include, but are not limited to:

         1. (i) Air quality;
         2. (ii) Electrical hazards;
         3. (iii) Elevators;
         4. (iv) Emergency/fire exits;
         5. (v) Flammable materials;
         6. (vi) Garbage and debris;
         7. (vii) Handrail hazards;
         8. (viii) Infestation; and
         9. (ix) Lead-based paint.

   2. (2) For example, the buildings must have:

      1. (A) Fire exits that are not blocked; and
      2. (B) Handrails that are undamaged and have no other observable deficiencies.

   3. (3) The housing must have no evidence of:

      1. (A) Infestation by:

         1. (i) Rats;
         2. (ii) Mice; or
         3. (iii) Other vermin; or
      2. (B) Garbage and debris.

   4. (4) The housing must have no evidence of:

      1. (A) Electrical hazards;
      2. (B) Natural hazards; or
      3. (C) Fire hazards.

   5. (5) The dwelling units and common areas must have proper ventilation and be free of:

      1. (A) Mold;
      2. (B) Odor (e.g., propane, natural gas, methane gas); or
      3. (C) Other observable deficiencies.

   6. (6) The housing must:

      1. (A) Comply with all requirements related to the evaluation and reduction of lead-based paint hazards; and
      2. (B) Have available proper certifications of such, if applicable.

7. (h)

   1. (1) The physical condition standards stated herein do not supersede or preempt applicable state and local codes for building and maintenance.
   2. (2) A low-income housing project must satisfy the local standards, and the authority is obligated to report known violations to the Internal Revenue Service.
   3. (3) If there is a conflict between UPCS and state or local codes, an official of a governmental entity, such as the fire marshal's office or municipal building inspector, must provide a written notice to the authority explaining the nature of the conflict.
   4. (4) The authority will evaluate and determine if the project or unit is in compliance.

Codification Notes: "UPCS" means Uniform Physical Conditions Standards. "HVAC" means heating, ventilation, and air conditioning. "LIHTC" means low-income housing tax credit.