15 Ark. Code of Rules § 94-109
Land use restriction agreement
Operative Text
15 CAR § 94-109. Land use restriction agreement. (a) All recipients must execute and record in the real property records of the county in which the development is located a Finance Adjustment Factor (FAF) and Below Market Interest Rate (BMIR) land use restriction agreement (LURA) that shall restrict the property to the use, income restrictions, and rent restrictions approved by the Board of Directors of the Arkansas Development Finance Authority. (b) A LURA must be executed and recorded prior to the disbursement of any FAF/BMIR funds to a recipient. (c) The LURA shall be a covenant that runs with the land and shall be an encumbrance on the property for a period of twenty (20) years from date of recording, unless otherwise approved by the board (the “affordability period”).
Under 15 Ark. Code R. pt. 94 § 94-109, any entity that receives Finance Adjustment Factor (FAF) or Below Market Interest Rate (BMIR) funding through the Arkansas Development Finance Authority must sign and record a Land Use Restriction Agreement (LURA) in the county property records where the development sits. This agreement legally binds the property to specific use, income, and rent limits approved by the Authority's Board of Directors. The LURA functions as a covenant running with the land—meaning it stays attached to the property itself, not just the current owner—for a standard affordability period of twenty years from the date of recording, unless the Board approves a different arrangement.
Plain English — not legal advice.
Property owners and developers who receive FAF or BMIR financing under 15 Ark. Code R. pt. 94 § 94-109 are generally expected to execute and record the required LURA before any funds are disbursed. Compliant operators ensure the agreement is filed in the correct county's real property records and reflects the income and rent restrictions the Board of Directors has approved. Because the LURA encumbers the property for up to twenty years, operators typically account for these restrictions in any future sale, transfer, or refinancing of the development.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in developments subject to 15 Ark. Code R. pt. 94 § 94-109 may benefit from the income and rent restrictions that the recorded LURA legally imposes on the property for a twenty-year affordability period. Because the LURA is recorded in county property records, tenants or advocates can review it as a public document to understand what rent and income limits apply to a given development. Those who believe the restrictions are not being honored may consider contacting the Arkansas Development Finance Authority or a local tenant-rights organization to learn about 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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