15 Ark. Code of Rules § 86-310

Next available unit rule

In Force
Verified 10/22/2026 · Next check 10/29/2026
effective 10/22/2026ArkansasLIHTC (IRC §42)

Operative Text

15 Ark. Code of Rules § 86-310
15 CAR § 86-310. Next available unit rule.
(a) If the household income for residents in a qualified unit increases to more than one hundred forty percent (140%) of the current applicable income limit, the unit is considered an over-income unit but may continue to be counted as an LIHTC unit as long as two (2) conditions are met:
(1) The unit must continue to be rent restricted; and
(2) The next comparable size unit in the building must be rented to a qualified low-income tenant.
(b) The owner of an LIHTC building must rent to qualified residents all comparable units that are available or that subsequently become available in the same building until the applicable fraction (excluding the over-income units) is restored to the percentage on which the credit is based.
(c) Once the original applicable fraction of the building has been restored, the over-income unit may:
(1) Remain rent restricted; or
(2) Become a market-rate unit if the building is a mixed income building.
Source: Legislative text reproduced verbatim
Plain English

Under 15 Ark. Code R. pt. 86 § 86-310, when a household living in a Low-Income Housing Tax Credit (LIHTC) unit sees its income rise above 140% of the applicable income limit, that unit is reclassified as 'over-income' but can still count toward the project's LIHTC requirements under specific conditions. The building owner must keep the over-income unit rent-restricted and must rent the next comparable available unit to a qualified low-income tenant. This process continues until the building's required ratio of income-qualified units — known as the applicable fraction — is restored, at which point the over-income unit may either stay rent-restricted or, in a mixed-income building, convert to a market-rate unit.

Written by anthropic/claude-sonnet-4.6 · Reviewed on October 22, 2026

Plain English — not legal advice.

For Property Managers

Operators of LIHTC properties in Arkansas should be familiar with the over-income household procedures outlined in 15 Ark. Code R. pt. 86 § 86-310. A compliant operator tracks household income certifications closely, maintains rent restrictions on any unit that becomes over-income, and prioritizes income-qualified applicants for the next comparable available unit in the same building until the applicable fraction is fully restored. Recordkeeping that documents each step of this process — including unit availability, tenant qualifications, and the restoration of the applicable fraction — is a standard part of LIHTC compliance management.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Tenants living in LIHTC housing in Arkansas whose incomes have grown over time may find their unit reclassified under the over-income rules described in 15 Ark. Code R. pt. 86 § 86-310, but the provision requires that their unit remain rent-restricted as long as the applicable fraction has not been restored. Tenants who believe their rent protections are not being honored under this rule may consider raising the issue with their building's management, contacting the Arkansas Development Finance Authority, or reaching out to a local tenant-rights organization for general information. Understanding how the applicable fraction and over-income designations work can help tenants recognize what protections may apply to their situation.

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

Current
Oct 22, 2026
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References Out

No outbound references recorded yet for this provision.

References In

Rules and statutes that cite this regulation

15 CAR § 86-205
15 CAR § 86-308
15 CAR § 86-410
15 CAR § 86-310

Related Rules

§ 1.42-0
§ 1.42-0 Table of contents.
§ 1.42-0T
§ 1.42-0T Table of contents.
§ 1.42-1
§ 1.42-1 Limitation on low-income housing credit allowed with respect to qualified low-income buildings receiving housing credit allocations from a State or local housing credit agency.