15 Ark. Code of Rules § 86-307
United States Department of Agriculture Rural Development overage
Operative Text
15 CAR § 86-307. United States Department of Agriculture Rural Development overage. (a)(1) In United States Department of Agriculture Rural Development Section 515 projects, overage rents may result when thirty percent (30%) of the tenant income minus the utility allowance exceeds the United States Department of Agriculture Rural Development program’s basic rent. (2) If this overage rent exceeds the LIHTC rent, then the overage cannot always be charged. (b) For 1991 and later year developments, the overage can be charged for amounts that are turned over to the United States Department of Agriculture Rural Development. (c) In 1987–1990 developments, the overage cannot be charged to the tenant since the provision is not retroactive.
Under 15 Ark. Code R. pt. 86 § 86-307, in USDA Rural Development Section 515 housing projects, an 'overage' rent situation arises when 30% of a tenant's income minus a utility allowance surpasses the program's basic rent. Whether that overage can actually be charged to tenants depends on when the development was placed in service: projects from 1991 onward may charge the overage only if the funds are remitted to USDA Rural Development, while projects from 1987 through 1990 cannot charge the overage to tenants at all because the rule does not apply retroactively. Additionally, even in eligible developments, the overage cannot be charged if it would exceed the applicable Low-Income Housing Tax Credit (LIHTC) rent limit.
Plain English — not legal advice.
Operators of USDA Rural Development Section 515 properties in Arkansas should be aware that § 86-307 creates distinct rules based on a development's year. For properties placed in service in 1991 or later, compliant operators collect overage amounts only when those funds are passed through to USDA Rural Development and only when the overage does not exceed the applicable LIHTC rent ceiling. Operators of 1987–1990 developments generally do not charge tenants any overage rent, as § 86-307 explicitly bars retroactive application of that authority.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-307 of the Arkansas regulations provides important protections for tenants living in USDA Rural Development Section 515 housing. Tenants in developments built between 1987 and 1990 have a clear regulatory basis to contest any overage rent charge, since the provision expressly prohibits it for those properties. Tenants in later developments who believe an overage charge exceeds the LIHTC rent limit or is not being remitted to USDA Rural Development may wish to contact a local tenant-rights organization or the Arkansas housing authority to understand available complaint and dispute-resolution options under § 86-307.
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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