(a)

1. (1) The Arkansas Development Finance Authority (the authority) is responsible for administering the Finance Adjustment Factor (FAF) and Below Market Interest Rate (BMIR) funds.
2. (2) FAF funds arose from the refunding of bonds and recapture of Section 8 funds by the United States Department of Housing and Urban Development.
3. (3) BMIR funds arose from the authority’s purchase of approximately three hundred one (301) multi-family housing mortgage loans of the United States Department of Housing and Urban Development through its issuance in June 1988 of Government National Mortgage Association-guaranteed bonds.

(b)

1. (1) The funds currently available are comprised of program income from previous FAF and BMIR loans.

2. (2) The purpose of these program policies is to clarify:

   1. (A) The use of FAF and BMIR funds;
   2. (B) Eligibility for the funds; and
   3. (C) The authority’s requirements for use of FAF and BMIR funds, collectively the FAF/BMIR Loan Fund.
3. (3) The authority reserves the right to waive the policies contained herein as necessary to prudently administer the limited resource of FAF/BMIR funding.