15 Ark. Code of Rules § 94-103
Underwriting requirements
Operative Text
15 CAR § 94-103. Underwriting requirements. (a) All underwriting requirements and provisions in the Qualified Allocation Plan in effect at time of application submission are applicable to applicants for Finance Adjustment Factor (FAF) and Below Market Interest Rate (BMIR) loan funds. (b)(1) The same percentage of total units in the development must be restricted to households earning fifty percent (50%) or less of area median income (AMI) as the percentage is of FAF/BMIR funds to the total development costs. (2) These units will remain FAF/BMIR restricted units for the duration of the affordability period. (c) The rent of units restricted pursuant to subsection (b) of this section may not exceed thirty percent (30%) of the applicable AMI. (d) The maximum amount of loan funds that may be awarded is two hundred fifty thousand dollars ($250,000) per development. (e) Copies of all other financing documents must be submitted.
Section 94-103 establishes the underwriting rules that govern Finance Adjustment Factor (FAF) and Below Market Interest Rate (BMIR) loan funds in Arkansas. The proportion of units that must be reserved for households earning 50% or less of area median income must match the proportion of FAF/BMIR funds relative to total development costs, and those restricted units must remain affordable for the entire affordability period. Rents on those restricted units cannot exceed 30% of the applicable area median income, and the total loan award is capped at $250,000 per development.
Plain English — not legal advice.
Developers and property owners applying for FAF or BMIR loan funds under 15 Ark. Code R. pt. 94 § 94-103 generally ensure that their unit set-aside percentage mirrors the FAF/BMIR share of total development costs, and that restricted units are maintained at the required affordability levels throughout the full affordability period. Compliant operators keep rents on those units at or below 30% of the applicable AMI and plan their financing structures with the $250,000-per-development loan cap in mind. Submitting complete copies of all other financing documents at the time of application is also a standard part of the process under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 94-103 creates enforceable affordability protections for residents living in units that were financed with FAF or BMIR loan funds in Arkansas. Tenants in those restricted units have a right to rents that do not exceed 30% of the applicable area median income, and those protections are intended to last for the duration of the development's affordability period. Residents who believe their rent exceeds the limits established under § 94-103 may wish to contact a local tenant-rights organization or the Arkansas Development Finance Authority to understand available complaint or review processes.
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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