15 Ark. Code of Rules § 86-401
Determining tenant eligibility generally
Operative Text
15 CAR § 86-401. Determining tenant eligibility generally. (a) Owners must determine and provide documentation that proves the eligibility of potential low-income tenants in accordance with LIHTC requirements. (b) A tenant's income eligibility is determined by comparing the household's gross annual anticipated income, calculated in accordance with Department of Housing and Urban Development guidelines, to the LIHTC fifty percent (50%) or sixty percent (60%) area gross median income limits that apply to the development. (c)(1) Owners must verify the household's income and the student status of all household members. (2) The tenant and owner must certify the accuracy of the verified information. (d) Since household composition, income, and student status may change over time, owners must recertify the eligibility of tenants in tax credit units annually.
Under 15 Ark. Code R. pt. 86 § 86-401, properties participating in the Low-Income Housing Tax Credit (LIHTC) program must follow a specific process to confirm that tenants qualify based on income. A household's eligibility is measured by comparing its gross annual anticipated income—calculated using HUD guidelines—against the applicable 50% or 60% area median income limits for the development. Because household circumstances can shift, this eligibility determination is not a one-time event; owners are required to recertify each tenant in a tax credit unit every year.
Plain English — not legal advice.
Operators of LIHTC properties under 15 Ark. Code R. pt. 86 § 86-401 generally maintain thorough documentation of each prospective tenant's income verification and student status before move-in, ensuring the household's gross annual anticipated income falls within the applicable 50% or 60% area median income threshold. Both the owner and the tenant are required to certify the accuracy of the verified information, making co-signature procedures a standard part of the intake process. Compliant operators also build annual recertification workflows into their property management calendar to capture any changes in household composition, income, or student status.
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 § 86-401, tenants living in LIHTC-designated units have a right to a fair and documented eligibility process, which includes income verification measured against HUD-based area median income limits. Tenants are asked to co-certify the accuracy of the information gathered, so reviewing those documents carefully before signing is a common practice. If a tenant believes the eligibility or recertification process was handled improperly, options may include raising the issue with the Arkansas Department of Finance and Administration, contacting a local tenant-rights organization, or consulting with a housing attorney familiar with LIHTC 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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