15 Ark. Code of Rules § 86-311
Relocating existing tenants
Operative Text
15 CAR § 86-311. Relocating existing tenants. (a)(1) If existing LIHTC tenants wish to transfer to a different LIHTC unit in the same building (as identified by the building identification number), they do not need to be recertified. (2) A new lease must be executed to be effective on the move-in date to the new unit. (b)(1) When a household moves to a different unit within the building, the newly occupied unit adopts the status of the vacated unit. (2) Thus, if a current household whose income exceeds the applicable income limitation moves from an over-income unit to a vacant unit in the same building, the newly occupied unit is treated as an over-income unit. (3) The vacated unit assumes the status the newly occupied unit had immediately before it was occupied by the current resident. (c) When a household moves to a unit in a different building, the Arkansas Development Finance Authority requires the owner or manager to treat that household as a new move-in and qualify accordingly. (d) During the initial credit period, existing tenants cannot be relocated for the purpose of qualifying more than one (1) LIHTC unit to count toward the minimum set-aside or applicable fraction.
Section 86-311 of the Arkansas LIHTC regulations governs how tenant relocations within and between Low-Income Housing Tax Credit (LIHTC) properties are handled. When a tenant moves to a different unit within the same building, no recertification is required, but a new lease must be signed effective on the move-in date, and the units involved exchange their compliance statuses—meaning an over-income household moving to a previously compliant unit causes that unit to be treated as over-income. Moves to a unit in a different building trigger full new-move-in qualification requirements, and during the initial credit period, relocations cannot be used as a strategy to inflate the count of qualifying units toward the minimum set-aside or applicable fraction.
Plain English — not legal advice.
Under § 86-311, operators of LIHTC properties generally execute a new lease dated to the move-in date whenever an existing tenant transfers to another unit in the same building, even though recertification is not required for same-building moves. Compliant managers track the compliance status of both the vacated and newly occupied units carefully, since those statuses swap at the time of transfer—an over-income household carries that designation to the new unit, and the vacated unit takes on whatever status the new unit previously held. For any inter-building transfer, the Arkansas Development Finance Authority requires the household to be treated and qualified as a new move-in, and owners must not use intra-building relocations during the initial credit period to artificially increase the number of units counted toward the minimum set-aside or applicable fraction.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-311 provides that LIHTC tenants who wish to move to a different unit within the same building do not have to go through the recertification process, though a new lease will need to be signed before or on the date of the move. Tenants should be aware that their household's income status travels with them to the new unit, so an over-income designation does not disappear simply because of an internal transfer. Tenants who believe a relocation is being used improperly—for example, to manipulate unit qualification counts during the initial credit period in violation of § 86-311(d)—may wish to consult a tenant-rights organization or contact the Arkansas Development Finance Authority for guidance on 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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