15 Ark. Code of Rules § 86-402
Household size and income limits
Operative Text
15 CAR § 86-402. Household size and income limits. (a)(1) I.R.C. § 42 mandates that the MTSP income limits adjusted for household size be used in determining income eligibility for the LIHTC program. (2)(A) A household can consist of one (1) or more persons. (B) Members need not be related to be considered a household. (3) Count all household members and compare to the per-person fifty percent (50%) or sixty percent (60%) income limits currently in effect. (4) Please do not confuse the one hundred forty percent (140%) rule, which allows an existing tenant's income to exceed the allowable limit. (5) Owners or managers must never allow over-income applicants to move into an LIHTC unit. (6) Full-time students residing together in a unit must qualify under one (1) of the exceptions previously listed herein. (b)(1) Certain individuals are not considered members of the household in determining the income limits. (2) Do not count the income of the following when determining household income: (A) Live-in care attendants; (B) Visitors or guests; (C) Foster children; and (D) Foster adults. (c)(1) A live-in attendant or caregiver is a person who resides with an elderly, disabled, or handicapped person and who: (A) Is determined to be essential to the care and well-being of the person; (B) Is not obligated for the support of the person; (C) Would not be living in the unit except to provide the necessary supportive services; and (D) Is not eligible to remain in the unit once the tenant is no longer living in the unit, regardless of the circumstances of tenant's departure. (2) A relative may be considered to be a live-in aide/attendant if he or she meets the above requirements. (3) A spouse does not qualify as a live-in aide. (4) Owners must utilize the Live-in Care Attendant Affidavit. (d)(1) The caregiver need not sign the lease, application, or Tenant Income Certification, but the caregiver should sign an agreement to abide by house rules and that the caregiver understands and agrees the eviction regulations apply to him or her. (2) Owners may, as part of established procedures, obtain consent from the caregiver for a criminal background check. (3) A credit check is not necessary since the caregiver is not responsible for payment of rent. (4) If a caregiver is denied residency (i.e., because of the criminal background check), the tenant must find another appropriate caregiver. (e)(1) Temporarily absent members of the household should be counted when determining household size. (2) Count the following: (A) Children temporarily absent due to placement in a foster home; (B) Children in joint custody arrangements who are present in the household fifty percent (50%) or more of the time; (C) Children away at school but who live with the family during school recesses; (D) Temporarily absent family members who are still family members (i.e., a tenant, cotenant, or spouse is always considered to be a family member); (E)(i) A person confined to a hospital or nursing home for periods of limited or fixed durations. (ii) For persons permanently confined to a hospital or nursing home, the family decides if such persons are included when determining household size for income limits; and (F) A son or daughter on active military duty only if this person leaves dependents or a spouse in the unit. (f)(1) The Arkansas Development Finance Authority counts unborn children and children who are in the process of being adopted as household members for the purposes of determining unit size and income limits only. (2) The unborn child does not count as an exception to the full-time student rules. (g) Changes in household size. (1)(A) No additions may be made to the household during the first six (6) months of the lease unless such change was indicated on the application. (B) After the initial six (6) months, the addition of new household members to an existing low-income household requires the Tenant Income Certification (TIC) for the new member of the household, including third-party verification. (C) The new tenant's income is added to the income disclosed on the existing household's TIC. (D) The household continues to be income-qualified and the income of the new member is taken into consideration with the income of the existing household for purposes of the available unit rule under I.R.C. § 42(g)(2)(D). (E) The effective date continues to be the original move-in date, and the next recertification is due within one hundred twenty (120) days before the original move-in date. (2)(A) A household may continue to add members as long as at least one (1) member of the original low-income household continues to live in the unit. (B) Once all the original tenants have moved out of the unit, the remaining tenants must be certified as a new income-qualified household unless the remaining tenants were income qualified at the time they moved into the unit. (C)(i) A household may be originally qualified based on the inclusion of an unborn child but the pregnancy ends in miscarriage. (ii) It is not necessary to certify the remaining household as a new tenant at the time of the miscarriage. (D) If the income of the remaining household members exceeds the income at the next income recertification, the available unit rule is applicable.
Section 86-402 of the Arkansas LIHTC regulations establishes how household size and income are calculated when determining whether a household qualifies for a Low-Income Housing Tax Credit (LIHTC) unit. Households can include any combination of unrelated individuals, and certain people—such as live-in care attendants, foster children, and visitors—are excluded from both the household count and the income calculation. The rule also addresses how changes in household composition over time, including new members and temporarily absent members, affect ongoing income eligibility under I.R.C. § 42.
Plain English — not legal advice.
Under 15 Ark. Code R. pt. 86 § 86-402, compliant LIHTC property owners and managers apply the Multifamily Tax Subsidy Project (MTSP) income limits adjusted for household size, counting all qualifying members against the applicable 50% or 60% area median income thresholds. Operators never admit over-income applicants into LIHTC units, use the required Live-in Care Attendant Affidavit when a caregiver is present, and process a new Tenant Income Certification (TIC) whenever a new member joins an existing household after the first six months of tenancy. Managers also track temporarily absent members, unborn children, and children in the adoption process as part of household size determinations for unit and income limit purposes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-402 of the Arkansas LIHTC regulations affects how your household is defined and how your income is measured when you apply for or live in an LIHTC unit. Certain individuals living with you—such as a live-in caregiver, foster children, or guests—do not count toward your household income, which may work in your favor during income certification. If you believe your household size or income has been calculated incorrectly, tenant-rights organizations familiar with Arkansas LIHTC rules or the Arkansas Development Finance Authority can be resources for understanding how this provision applies generally.
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
References Out
Rules and statutes cited by this regulation
References In
Rules and statutes that cite this regulation
Related Rules
Source Information
Use this in your app
Access this data programmatically via our API