1. (a)

   1. (1) The Internal Revenue Code specifies that LIHTC housing must be for the use of the general public on a nontransient basis.
   2. (2) Further, the regulations state no dormitory may be a qualified low-income project.

2. (b)

   1. (1) An LIHTC development cannot be entirely occupied by full-time students.
   2. (2) Student status becomes an issue when everyone in the household is a full-time student.

3. (c) The tenant, in order to be considered a full-time student, must be:

   1. (1) Taking at least twelve (12) credit hours per semester;
   2. (2) Taking the school's full-time requirement (as defined by the institution); or

   3. (3)

      1. (A) Enrolled five (5) months out of twelve (12) months in an institution of higher learning.
      2. (B) The five (5) months need not be consecutive.

4. (d)

   1. (1)

      1. (A) Student status must be reverified at annual recertifications to confirm continuing eligibility of the household.
      2. (B) If owner has obtained a recertification waiver, he or she, too, must continue to check student status annually.
   2. (2) Student status must be verified through the registrar's office of the educational institution.
   3. (3) Children in grades kindergarten through twelve (K – 12) are considered full-time students.
5. (e) Full-time students who are not entitled to file a joint tax return are not eligible for the tax credit unit.
6. (f) There is no grandfathering of eligibility because the tenant was not a student when he or she moved in and later became one.

7. (g) Exceptions. A unit would not be disqualified for tax credits if it is occupied as specified in I.R.C. § 42(i)(3)(D):

   1. (1) By an individual who is:

      1. (A) A student and receiving welfare (Aid to Families with Dependent Children or Temporary Assistance for Needy Families) assistance under Title IV of the Social Security Act, 42 U.S.C. § 601 et seq.; or
      2. (B)
8. (i) Enrolled in a job training program receiving assistance under:
9. (a) (a) The Job Training Partnership Act [repealed]; or

10. (b) (b) Other similar federal, state, or local laws.

    1. (ii) Note. The Workforce Investment Act [repealed] replaced the Job Training Partnership Act [repealed].

       1. (iii) A similar program must get federal, state, or local government funding and have a mission similar to the one for the Job Training Partnership Act [repealed] program; or

    2. (2) Entirely by full-time students if such students are:

       1. (A) Single parents and their children and such parents are not dependents (as defined in I.R.C. § 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) of another individual and such children are not dependents (as so defined) of another individual other than a parent of such children;
       2. (B) Married and entitled to file a joint tax return; or

       3. (C)

          1. (i) At least one (1) household member was under the care and placement responsibility of the state agency responsible for foster care services.
          2. (ii) It is the authority’s position that the household member would have been in foster care during the last five (5) calendar years prior to applying for residency.
          3. (iii) Owners must obtain court or state agency documents to confirm foster care.

11. (h)

    1. (1) The authority considers a household eligible if it contains at least one (1) part-time student.

    2. (2) Children in kindergarten through twelfth grade (K – 12) are considered full-time students.

       1. (i) The Arkansas welfare-to-work program known as the Transitional Employment Assistance Program qualifies as a job training program.

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