1. (a)

   1. (1) Subject to the requirements of I.R.C. § 42 and the LURA, the owner must notify the Arkansas Development Finance Authority in writing thirty (30) calendar days prior to the contemplation of any:

      1. (A) Sale;
      2. (B) Transfer; or
      3. (C) Exchange.

   2. (2)

      1. (A) The notification must include a copy of the letter of intent of any buyer, successor, or other person intending to acquire the development or any interest therein.
      2. (B) In addition, the notification should address the requirements of the LURA and provisions allowing the transfer under I.R.C. § 42 and the regulations therein.

   3. (3)

      1. (A) This information must be presented to the authority for approval.
      2. (B) Approval is not guaranteed.

2. (b) The owner agrees that the authority may void any sale, transfer, or exchange of the development:

   1. (1) If the buyer or successor or other person fails to assume in writing the requirements of the Internal Revenue Code and the LURA; and
   2. (2) For other valid reasons.

3. (c)

   1. (1) It is understood and agreed that any changes to the original application must be submitted to the authority in writing for review and approval.

   2. (2) Any changes made without prior approval could jeopardize the:

      1. (A) Issuance of tax credits for the project; or
      2. (B) Owner’s continued participation in the program.
4. (d) The authority is required to issue Internal Revenue Service Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, for all building dispositions to advise the Internal Revenue Service of a change in ownership.
5. (e) Owners must advise the authority in writing the name, tax identification number, address, and telephone number of the new owner.
6. (f) The new owner must obtain first-year records and all other pertinent records from the previous owner.
7. (g) Owners who are considering disposing of their buildings or an interest therein should consult a tax adviser about posting a disposition bond or other requirements related thereto.

Codification Notes: "LURA" means land-use restriction agreement.