15 Ark. Code of Rules § 86-313
Nontransient occupancy
Operative Text
15 CAR § 86-313. Nontransient occupancy. (a) According to the Internal Revenue Code, residential units must be for use by the general public, and all of the units in a development must be used on a nontransient basis. (b) For LIHTC units to be in compliance, a six-month minimum lease term is required at initial occupancy of such low-income units. (c) A six-month lease addendum should be signed with in-place tenants who do not have six (6) months left on an existing lease when the building is placed in service. (d) The only exceptions to this requirement would be for: (1) Single-room occupancy housing rented on a month-by-month (thirty-day lease) basis; or (2) Transitional housing for the homeless.
Under 15 Ark. Code R. pt. 86 § 86-313, residential units receiving Low-Income Housing Tax Credits (LIHTC) must be rented to the general public on a nontransient basis, meaning occupancy cannot be short-term or transient in nature. To satisfy this requirement, an initial lease term of at least six months is required for low-income units, with a lease addendum used to bring existing tenants into compliance when a building is first placed in service. Two narrow exceptions exist: single-room occupancy units rented month-to-month and transitional housing for the homeless are not subject to the six-month minimum.
Plain English — not legal advice.
Owners and managers of LIHTC properties in Arkansas must ensure that low-income units covered by 15 Ark. Code R. pt. 86 § 86-313 are leased for a minimum initial term of six months to maintain tax credit compliance. When a building is placed in service, operators generally execute a six-month lease addendum with any in-place tenants whose remaining lease term falls short of that threshold. Compliant operators also confirm whether a property qualifies for the single-room occupancy or transitional homeless housing exceptions before applying month-to-month lease arrangements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 15 Ark. Code R. pt. 86 § 86-313, tenants living in LIHTC-assisted units have a right to an initial lease term of at least six months, which provides a baseline of housing stability tied to the tax credit program's requirements. If a building is newly placed in service and a tenant's existing lease has fewer than six months remaining, the provision contemplates that a lease addendum should be offered to bring the tenancy into compliance. Tenants who believe this requirement is not being met may consider reaching out to the Arkansas Development Finance Authority, which oversees LIHTC compliance in the state, or consulting a local 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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