1. (a)

   1. (1) All activities funded by Arkansas Housing Trust Fund resources will be periodically monitored for compliance.
   2. (2) During project implementation, Arkansas Development Finance Authority inspectors will inspect any work completed using Arkansas Housing Trust Fund funds.
   3. (3) The timing of such inspections will be addressed in a preimplementation conference, but the authority reserves the right to inspect any activity completed with Arkansas Housing Trust Fund funds at any time.

   4. (4) This right extends to:

      1. (A) Arkansas Housing Trust Fund Advisory Committee [abolished] members;
      2. (B) State officials; and
      3. (C) Any other authorized entity with oversight responsibilities of the Arkansas Housing Trust Fund.
   5. (5) After the affordable housing activity is completed and placed in service and for the full applicable affordability period, the authority’s Compliance Monitoring staff will periodically perform on-site property inspections, review of documentation, and monitor adherence to all applicable Arkansas Housing Trust Fund and authority requirements.

2. (b)

   1. (1) The purpose of the compliance monitoring inspections will be to determine and ultimately ensure compliance with all applicable program rules and requirements contained in these policies and the rules of any applicable authority program used in the Arkansas Housing Trust Fund activity.
   2. (2) In the event noncompliance occurs, the authority’s staff will work with the project owner to reestablish compliance.
   3. (3) Should the noncompliance continue or if the Arkansas Housing Trust Fund activity is incapable of being brought into compliance, the authority may use any and all lawful means at its disposal to recapture the Arkansas Housing Trust Fund funds and reallocate them to other eligible Arkansas Housing Trust Fund activities.

3. (c)

   1. (1) Failure to adhere to all applicable requirements as contained in this part and the Arkansas Housing Trust Fund agreement will be considered a default of the Arkansas Housing Trust Fund agreement and may be addressed by the authority using any and all available remedies, as provided by law.
   2. (2) The intent of any remedies implemented is to establish or reestablish program and agreement compliance.
   3. (3) If full compliance by the recipient is not possible, the authority may take any and all lawful actions necessary to ensure compliance with all applicable requirements up to and including recapture of all Arkansas Housing Trust Fund funds.

4. (d)

   1. (1) The Board of Directors of the Arkansas Development Finance Authority reserves the right, in its sole and absolute discretion subject to applicable law, to allocate Arkansas Housing Trust Fund resources and to refrain from making Arkansas Housing Trust Fund allocations based upon:

      1. (A) Available funding;
      2. (B) Quality of applications received; and
      3. (C) Other criteria.
   2. (2) The board may, at its discretion, implement changes to this part at any time to ensure compliance with state and federal law, grant waivers or exceptions to Arkansas Housing Trust Fund requirements, and exhibit flexibility in their interpretation of this part and the authority’s policies and procedures associated with Arkansas Housing Trust Fund resources to fully and more efficiently utilize the Arkansas Housing Trust Fund resources for their intended purposes.
   3. (3) In accordance with Arkansas Code § 15-5-1707(b)(1) [repealed], the Arkansas Housing Trust Fund Advisory Committee [abolished] will collaborate with the staff of the authority to draft rules, compliance responsibilities, incentives, and funding priorities for the Arkansas Housing Trust Fund and the programs funded by the Arkansas Housing Trust Fund, which rules and policies will be referred by the advisory committee [abolished] to the authority for its review and approval.

Codification Notes: The Arkansas Housing Trust Fund Advisory Committee was abolished by Acts 2023, No. 365, § 1. Arkansas Code § 15-5-1707 was repealed by Acts 2023, No. 365, § 31.