15 Ark. Code of Rules § 86-410
Recertification
Operative Text
15 CAR § 86-410. Recertification. (a)(1) I.R.C. § 42 requires that recertification of residents be completed on at least an annual basis. (2)(A) Annual recertification is crucial in identifying: (i) The one hundred forty percent (140%) rule situation; (ii) Student status; and (iii) Household composition changes. (B) The one hundred forty percent (140%) rule is discussed in 15 CAR § 86-310. (b)(1) The procedure for annual recertifications is virtually the same as determining initial income eligibility. (2) Owners/managers must contact the tenant and obtain an application with: (A) An accurate count of the current number of household members; (B) Information about student status of each member of the household; (C) An accurate list of income sources, including assets, for the coming year; and (D) Tenant’s written authorization to verify household income, assets, etc. (3) The owner/manager will compare income to one hundred forty percent (140%) of the current income limit. (4) Any changes in household size must be reflected. (5) If the household's income at recertification exceeds one hundred forty percent (140%) of the income limit, the available unit rule will apply. (c)(1) The preferred method for income verification is third-party written verification. (2) If third-party verification is impossible (e.g., self-employed, extended delay, etc.) owners or managers must obtain and review appropriate alternative documentation. (d) Failure to recertify tenants on an annual basis is cause for the Arkansas Development Finance Authority to issue Internal Revenue Service Form 8823. (e) Report of noncompliance. (1) The timing of the recertification is critical to maintaining compliance with the tax credit program. (2) Subsequent recertifications must be completed within one hundred twenty (120) days of the anniversary of the move-in date. (3) When additional adult individuals join the household, the effective date will remain the same until the unit is completely vacated. (f) See policy pertaining to one hundred percent (100%) LIHTC properties policies.
Section 86-410 of the Arkansas Low Income Housing Tax Credit (LIHTC) regulations requires that tenants living in tax-credit properties be recertified for income eligibility at least once a year, following a process nearly identical to the original move-in qualification. Each recertification must capture current household size, student status of all members, and all income sources and assets for the coming year, with the tenant's written authorization to verify that information. If a household's income at recertification exceeds 140% of the applicable income limit, a special rule—the 'available unit rule'—is triggered, and recertifications must be completed within 120 days of each anniversary of the tenant's move-in date.
Plain English — not legal advice.
Under § 86-410, compliant operators of LIHTC properties contact each tenant annually to collect a fully updated application covering household composition, student status, and all income and asset sources, along with written authorization to verify that information. Third-party written verification is the preferred method; when that is not possible—such as for self-employed tenants or when delays occur—owners and managers obtain and review appropriate alternative documentation. Failure to complete recertifications within the 120-day window following each move-in anniversary can result in the Arkansas Development Finance Authority issuing IRS Form 8823, which reports noncompliance to the Internal Revenue Service and can jeopardize the property's tax credits.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-410 establishes that tenants in LIHTC-assisted housing have the right to an annual recertification process that follows rules nearly identical to initial income qualification, and that owners and managers are required to contact them and collect updated household and income information each year. Tenants should be aware that changes in household size, student status, or income—particularly income that rises above 140% of the applicable limit—can affect their unit's status under the tax credit program. If a tenant believes recertification procedures are not being followed correctly, they may raise the issue with the Arkansas Development Finance Authority, consult a tenant-rights organization, or seek guidance from a housing counselor 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 In
Rules and statutes that cite this regulation