15 Ark. Code of Rules § 86-302
Income limits
Operative Text
15 CAR § 86-302. Income limits. (a)(1) The Department of Housing and Urban Development publishes the Multifamily Tax Subsidy Projects (MTSP) income limits annually. (2) The Internal Revenue Service requires these income limits, adjusted for family size, to be used when determining eligibility of LIHTC tenants at move-in. (3) The minimum set-aside election establishes whether the fifty percent (50%) or sixty percent (60%) AMGI limit applies to the development's tax credit units. (b)(1) The Department of Housing and Urban Development’s L50 Very Low-Income amounts equal the fifty percent (50%) AMGI limits for households of one (1) to eight (8) persons. (2)(A) The sixty percent (60%) AMGI limit must be calculated from the fifty percent (50%) limits. (B) The sixty percent (60%) AMGI limit equals one hundred twenty percent (120%) of the Department of Housing and Urban Development Very Low-Income amount for the corresponding family size. (C) Owners must calculate the sixty percent (60%) limits by multiplying the fifty percent (50%) AMGI figures by one and two-tenths (1.2). (c)(1) When the Department of Housing and Urban Development publishes new MTSP income limits, owners are required to implement the new income limits no later than forty-five (45) days after the effective date. (2) Any fluctuations in the income limits will have a corresponding impact on maximum gross rent amounts. (3)(A) When determining income levels for qualifying tenants, the correct family size must be determined. (B) A family includes all occupants of the unit. (C) Owners should closely monitor family size. (d) Note. Owners and managers must review development files to determine if the Department of Housing and Urban Development or United States Department of Agriculture Rural Development restrictions also apply or if owner agreed to other income restrictions.
Section 86-302 of the Arkansas Low-Income Housing Tax Credit (LIHTC) regulations establishes how income limits are set and applied for tax credit housing developments. HUD publishes annual Multifamily Tax Subsidy Projects (MTSP) income limits, and the IRS requires these limits—adjusted for family size—to be used when screening tenants at move-in. Depending on a development's minimum set-aside election, either the 50% or 60% Area Median Gross Income (AMGI) threshold applies, with the 60% limit calculated as 120% of HUD's Very Low-Income figures. When HUD releases updated limits, property owners have no more than 45 days from the effective date to begin using them.
Plain English — not legal advice.
Operators of LIHTC developments in Arkansas must comply with § 86-302 by tracking HUD's annual MTSP income limit publications and updating their tenant eligibility calculations within 45 days of the effective date of any new limits. The applicable income threshold—50% or 60% AMGI—is determined by the development's minimum set-aside election, and the 60% limit is derived by multiplying the 50% figures by 1.2. Compliant operators also account for all occupants of a unit when determining family size, monitor household composition over time, and review development files to identify any additional HUD, USDA Rural Development, or owner-agreed income restrictions that may layer on top of the standard LIHTC requirements under § 86-302.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-302 establishes the income eligibility framework that governs who qualifies to live in Arkansas LIHTC-assisted units, meaning the income limits a household must fall within at move-in are set by HUD's published MTSP figures and adjusted for the number of people in the household. Tenants in these developments have an interest in knowing which income tier—50% or 60% AMGI—applies to their unit, as this also affects the maximum gross rent that can be charged under § 86-302. Individuals who believe income limits have been misapplied or that eligibility determinations were handled incorrectly may explore options such as contacting a local tenant-rights organization, reaching out to the Arkansas Development Finance Authority, or consulting with a housing attorney familiar with LIHTC compliance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
Rules and statutes that cite this regulation