15 Ark. Code of Rules § 86-409
The lease
Operative Text
15 CAR § 86-409. The lease. (a)(1) All tenants occupying tax credit units must be certified and under lease no later than the date the tenant takes possession of the unit. (2) All parties must sign the lease by the beginning of the lease term date to be properly in effect and the unit in compliance. (b) Some leasing guidelines are as follows: (1) The lease should include, but is not limited to: (A) The legal name of all parties to the agreement and all additional occupants; (B) Identification of the unit to be rented (number, street address, etc.); (C) The date the lease becomes effective; (D) The term of the lease; (E)(i) The amount for rent. (ii) If this reflects a contract rent amount that may include a subsidy payment rather than just the tenant portion of the rent, a lease addendum listing only the tenant share of rent is recommended; (F) The rights and obligations of the parties, including the obligation of the tenant to recertify income annually (or more frequently as required); (G) Language addressing changes in income, utility allowance, income limits, basic rent (United States Department of Agriculture Rural Development or Department of Housing and Urban Development 236 projects), family composition, or any other change and its impact on the tenant's rent; (H) The consequences of fraudulent reporting of: (i) Income; (ii) Assets; or (iii) Household composition; (I) The prohibition of subletting; (J) The prohibition of commercial business in a unit; and (K) Signature and dates; (2) The tenant portion of rent plus utility allowance and other mandatory fees must not exceed the maximum gross rent allowed by I.R.C. § 42; and (3)(A) The initial lease term must be at least six (6) months on all tax credit units, except for: (i) SRO housing, which may have a thirty-day lease; or (ii) Transitional housing for the homeless. (B) Succeeding leases are not subject to a minimum lease term. (c)(1) In addition to the lease, the Arkansas Development Finance Authority recommends that owners or managers get the tenants to sign a tenant agreement. (2) The tenant agreement specifies the development's rules with which the tenant is expected to comply. (3) For example, the tenant agreement may include, but is not limited to, the following: (A) Tenants must cooperate with management during the recertification process; (B) Smoke alarms must not be disconnected; (C) Tenants must: (i) Keep their units clean and sanitary; and (ii) Permit inspections by management and the authority; (D) Use of illegal substances on the premises will not be tolerated and will be grounds for eviction; (E) Tenants must comply with rules and regulations of the LIHTC program; and (F) Any other legitimate reasons for eviction.
Section 86-409 of the Arkansas tax credit housing regulations establishes requirements for leases in Low-Income Housing Tax Credit (LIHTC) units. Before a tenant moves in, they must be certified and have a signed lease in place, and all parties must sign by the start of the lease term. The rule also sets out a list of items the lease should cover—such as rent amounts, income recertification obligations, and prohibitions on subletting—and requires that initial lease terms be at least six months, with limited exceptions for single-room occupancy or transitional housing.
Plain English — not legal advice.
Operators of tax credit properties in Arkansas must ensure that, under § 86-409, every tenant is certified and has a fully executed lease before taking possession of a unit. Compliant operators typically include all required lease elements—legal names of all parties, unit identification, rent amounts, income recertification obligations, and fraud consequences—and verify that the tenant's rent plus utility allowance does not exceed the maximum gross rent permitted under I.R.C. § 42. The Arkansas Development Finance Authority also recommends pairing the lease with a separate tenant agreement that outlines property rules, such as cooperation with recertification and prohibitions on illegal substances.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 86-409, tenants in Arkansas LIHTC units have the right to a signed lease before or at the time they take possession of their unit, and that lease should clearly spell out rent amounts, their obligation to recertify income annually, and the consequences of any changes in household composition or income. If a lease appears to be missing required elements or if rent charges seem to exceed the allowable gross rent under I.R.C. § 42, tenants may have grounds to raise those issues as a concern with the Arkansas Development Finance Authority. Tenant-rights organizations familiar with LIHTC programs can help explain what protections apply and what general options are available.
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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