15 Ark. Code of Rules § 86-304
Fees
Operative Text
15 CAR § 86-304. Fees. (a)(1) Any charges to low-income tenants for services that are not optional generally must be included in gross rent. (2) A service is optional when: (A) The service is not a condition of occupancy; and (B) There is a reasonable alternative. (3) No separate fees can be charged for tenant facilities (swimming pools, parking, recreational facilities) if the costs of the facilities are included in eligible basis. (4) Fees cannot be charged for services considered as amenities or for which the owner received points. (b)(1)(A) Refundable fees associated with renting an LIHTC unit are not included in the rent computation. (B) For example, security deposits and fees paid if a lease is prematurely terminated are one-time payments that are not considered in the rent computation. (2)(A) Required costs or fees, which are not refundable, are included in the rent computation. (B) Examples include fees for month-to-month tenancy and renter's insurance. (c) The following fees may be charged if they are optional: (1) Pet fees; (2) Laundry room fees; (3) Garage; and (4) Storage fees. (d)(1) Owners/managers must be careful that gross rents do not exceed tax credit limits. (2)(A) A common mistake is to charge additional fees that are prohibited under the program. (B) Prohibited fees include, but are not limited, to the following: (i) Unit preparation fees; (ii) Redecorating fees; and (iii) Rekeying fees. (e)(1) Application fees may be charged to cover the actual cost of checking a prospective tenant's: (A) Income; (B) Credit history; and (C) Landlord references. (2) The fee is limited to recovery of the actual out-of-pocket costs. (3) Owners or managers must provide supporting documentation to justify the amount of application fees. (4) It is also acceptable for the applicant to pay the application fee directly to the third party actually providing the applicant's rental history.
Section 86-304 of the Arkansas Low Income Housing Tax Credit (LIHTC) regulations governs what fees may be charged to low-income tenants in tax credit housing. Mandatory, non-refundable charges generally must be counted as part of gross rent and are subject to program rent limits, while truly optional services and refundable deposits are treated differently. Certain fees—such as unit preparation, redecorating, and rekeying fees—are explicitly prohibited, and application fees are allowed only to recover actual, documented out-of-pocket costs.
Plain English — not legal advice.
Operators of LIHTC properties subject to 15 Ark. Code R. pt. 86 § 86-304 generally maintain a clear distinction between mandatory charges (which count toward gross rent) and genuinely optional services (which may be billed separately). Compliant operators avoid charging prohibited fees such as unit preparation, redecorating, or rekeying fees, and they ensure that gross rents—inclusive of all required charges—never exceed applicable tax credit limits. When charging application fees, compliant operators keep them limited to actual out-of-pocket costs and retain supporting documentation to justify those amounts.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in Arkansas LIHTC housing have protections under 15 Ark. Code R. pt. 86 § 86-304 that limit the fees a landlord may charge. Mandatory, non-refundable fees must be counted within the program's rent limits, and certain fees—like unit preparation, redecorating, and rekeying charges—are prohibited outright. Tenants who believe they have been charged fees that violate this provision may consider raising the issue with the Arkansas Development Finance Authority, which oversees the LIHTC program, or consulting a tenant-rights organization for guidance on available options.
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.
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