15 Ark. Code of Rules § 86-309
Vacant unit rule
Operative Text
15 CAR § 86-309. Vacant unit rule. (a)(1) If a low-income unit becomes vacant during the year, the unit remains in compliance with LIHTC regulations and eligible for the tax credit. (2) The unit may be counted in the set-aside requirement and in determining the qualified basis provided: (A) The owner has made reasonable attempts to rent the unit or the next available comparable or smaller size unit to an eligible household; and (B) No other comparable or smaller size units in the building are rented to nonqualifying individuals. (b)(1) Units that have never been occupied are termed empty, rather than vacant, and cannot be counted as low-income units. (2) Empty units must be included in the building's total unit count for purposes of counting the applicable fraction. (c)(1) Throughout the compliance period, owners are required to keep records for each qualified low-income development showing the low-income unit vacancies and data for when and to whom the next available units were rented. (2) The vacant unit rule applies to both one hundred percent (100%) LIHTC developments and mixed income developments.
Under 15 Ark. Code R. pt. 86 § 86-309, a low-income housing tax credit (LIHTC) unit that becomes vacant does not automatically lose its compliance status or its eligibility to count toward the required set-aside, as long as the owner is actively trying to re-rent it to an eligible household and no comparable or smaller units in the building are being rented to ineligible tenants. Units that have never been occupied at all are classified as 'empty' rather than 'vacant' and cannot be counted as low-income units, though they still factor into the building's total unit count. This rule applies to both fully affordable and mixed-income LIHTC developments, and owners must maintain records throughout the compliance period documenting vacancies and subsequent rentals.
Plain English — not legal advice.
Operators of LIHTC properties subject to 15 Ark. Code R. pt. 86 § 86-309 generally document their efforts to re-rent any vacant low-income unit to an eligible household promptly, since the vacant unit rule's protections depend on demonstrating those reasonable attempts. Compliant operators also ensure that no comparable or smaller units in the same building are rented to non-qualifying individuals while a low-income unit sits vacant. Throughout the compliance period, maintaining thorough records of each vacancy, the dates units were re-rented, and the identity of new tenants is a standard practice for preserving the qualified basis and tax credit eligibility under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-309 of 15 Ark. Code R. pt. 86 establishes that owners of LIHTC properties must actively seek to re-rent vacant low-income units to eligible households, which means qualified applicants should generally be given priority over non-qualifying renters for comparable or smaller units in the building. If a tenant believes a property owner is bypassing eligible households in favor of non-qualifying tenants, that concern may be relevant to the property's ongoing LIHTC compliance. Tenants or applicants who believe this provision is being violated can consider reaching out to the Arkansas Development Finance Authority, which oversees LIHTC compliance in the state, or consulting a tenant-rights organization familiar with affordable housing regulations.
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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