15 Ark. Code of Rules § 86-412

15 CAR § 86-412. Acquisitions or rehabilitations.
(a)(1) For households occupying a unit at the time of acquisition by the owner, the initial Tenant Income Certification is completed within one hundred twenty (120) days after the date of acquisition using the income limits in effect on the day of acquisition.
(2) The effective date of the Tenant Income Certification is the date of acquisition since there is no move-in date.
(b)(1) In the event that the household occupies a unit at the time of acquisition, but the Tenant Income Certification is completed more than one hundred twenty (120) days after the date of acquisition, the household is treated as a new move-in.
(2) Owners use the income limits in effect at the time of the Tenant Income Certification, and the effective date is the date the last adult member of the household signed the certification (this is an exception to the general rule for effective dates because there is no move-in date).
(c) When the household moves into a unit after the building is acquired but before the beginning of the first year of the compliance period, the Tenant Income Certification is completed using the income limits in effect at the time of the certification, and the effective date is the date the household moves into the unit.
(d)(1) Under I.R.C. § 42(f)(2), the applicable fraction for the first year of the credit period is computed based on a month-by-month accounting of units or floor space occupied by income-qualified households.
(2) In the case of buildings that were acquired and then rehabilitated, there are two (2) separate allocations of credit documented on two (2) Forms 8609:
(A) One (1) for the acquisition credit; and
(B) A separate allocation for the rehabilitation credit.
(3) The owner is not required to determine two (2) applicable fractions.
(4) Under I.R.C. § 42(e)(4)(B), the applicable fraction for the substantial rehabilitation credit will be same as the applicable fraction for the acquisition credit.
(5) Therefore, for purposes of computing the applicable fraction under I.R.C. § 42(f)(2), the following units are considered low-income units:
(A) Units occupied before the beginning of the credit period, which are determined to be low-income units at the beginning of the credit period under Rev. Proc. 2003-82, 2003-47 I.R.B. 258;
(B) Units initially occupied after the beginning of the credit period by newly certified income-qualified households (regardless of whether rehabilitation costs have been incurred for the unit);
(C)(i) Units occupied by income-qualified households that moved from other units within the project.
(ii) The household's lease and Tenant Income Certification (with effective date) move with the household; and
(D) Vacant units that are suitable for occupancy under I.R.C. § 42(i)(3)(B)(ii) and were previously occupied by an income-qualified household, regardless of whether rehabilitation costs have been incurred for the unit during the first year of the credit period.
(e) Units are not included in the numerator of computation of the applicable fraction if the unit is:
(1) Occupied by a nonqualified household;
(2) Vacant and was last occupied by a nonqualified household; or
(3)(A) Not suitable for occupancy.
(B) Units not suitable for occupancy are considered out of compliance.
(C) The noncompliance is corrected when the unit is again suitable for occupancy.