Low Income Housing Tax Credit Program
The Low Income Housing Tax Credit (LIHTC) Program, administered by ADFA, is a federal program created to encourage private investment in the development and rehabilitation of affordable rental housing for low-income households. By offering tax credits to developers, the program incentivizes the acquisition, rehabilitation or new construction and maintenance of high-quality, affordable rental units, ensuring that lower-income families and individuals have access to stable, affordable housing options.
Arkansas receives an allocation of approximately $8.5 million in Low-Income Housing Tax Credit per year. This does not include tax credit developments utilizing tax-exempt bond financing
Non-profit and profit motivated organizations and businesses developing housing for low-income persons and families.
Low Income Housing Tax Credits are awarded to developers of residential rental developments for providing affordable housing units for a minimum of 30 years. The credits are redeemed annually for a term of ten years beginning with the tax year the development is placed in service.
9% LIHTC
The State of Arkansas receives approximately $9,000,000 in 9% LIHTC annually that is allocated to developers by a competitive application cycle that begins in March of each year. Allocations are announced at the July ADFA Board of Directors meeting.
4% LIHTC/Bond Volume Cap
4% LIHTC is available to developments that are financed with tax exempt bonds approved by ADFA’s Board of Directors. Applications for 4% LIHTC/Bond Volume Cap are accepted year round.
All developments receiving tax credits must comply with income and rent limitations for a minimum of 30 years.
ADFA is designated as Arkansas’ Low Income Housing Tax Credit, (LIHTC) compliance monitoring agency. Crucial elements of compliance ensure that the appropriate number of tax credit units have been occupied by eligible households, following income eligibility guidelines and restricting rents over a specified time period. ADFA also monitors to ensure LIHTC properties are decent, safe, sanitary, and in good repair. ADFA is available to provide guidance to owners in maintaining continuous compliance with federal and state LIHTC guidelines throughout the compliance period.
In addition to monitoring the LIHTC Program there are also several housing programs funded by ADFA that require monitoring. ADFA has a Tenant Data Tracking Software Program to assist with the compliance and monitoring for each program. The software and the tenant data that is uploaded is critical for property owners to maintain compliance as well as assisting ADFA in reporting LIHTC tenant data to HUD annually.
For questions regarding Housing Compliance and Monitoring, please contact Tammy White, Compliance Manager, at 501-682-5928.
Click for: COMPLIANCE AND MONITORING DOCUMENTS
- Federal Housing Program Applications are submitted through the portal
- Applicants have access to Housing Program Guides and Program Forms and Documents
- Applicants can track the status of current applications and the historical history of previous submitted applications
- Applicants have access to all applications submitted and their program documents. (Application Award or Denial Notice, Program Agreements, and other Legal Documents)
- Project draw requests for reimbursement are processed thru the portal
Primary Documents
- 2025 Qualified Allocation Plan (QAP)
- Adopted 2024 Qualified Allocation Plan
- HOME- Notice of HOME funding availability for 2025 LIHTC Applications
- Environmental Review Requirement for Tax Credit/HOME/NHTF Applications
- Affirmative Fair Housing Marketing Plan Guide
- Qualified Contract Policies & Procedures
- Guidelines for Reserving Volume Cap
- 2025 Multi-Family Housing Application
- Design Standards Manual – Checklist
- ADFA Programs Portal User / Provider Setup Form
- Attachment A – Criminal Background and Disclosure Form
- Attachment B – Environmental Assessment Form
- Attachment C – Identity of Interest Organizational Chart and Verification (Sample Only)
- Attachment D – Reserved
- Attachment E – Building and Unit Designation
- Attachment F-1 – Conflict of Interest Acknowledgement
- Attachment F-2 – Contract and Grant Disclosure
- Attachment I – Affirmative Fair Housing Marketing Plan
- Attachment J – Minority & Women Business Enterprises Plan
- Attachment K – W-9 (Request for Taxpayer ID Number)
- Attachment L – HOME Match Form
- Attachment P – Release of Information Form
- Tenant Selection Plan Policy Template
- 2019 Multifamily Housing Application Guidelines
- ADFA Closing Checklist
- Guidelines for Reserving Volume Cap for Tax-Exempt Private Activity Bonds for Residential Rental Housing
- Design Standards Manual
- Market Study Guidelines
- Approved Market Study Firms
- Capital Needs Assessment Firms
- Criminal Background Check and Policies
- Gross Rent Floor Election
- Transfer of Ownership Request Checklist
- Section 3 Guide
- Section 3 Powerpoint
- Section 3 FAQ
- Section 3 Housing & Community Dev. Employer Certification Form 4736A
- Section 3 Employer Certification Form – Public Housing Form 4736B
- Section 3 Labor Hours HUD Form 4737A
- Public Housing Financial Assistance HUD Form 4737B
- Section 3 Projects with HCD Funding HUD Form 4737C
- Funding Tracker for Section 3 HUD Form 4737D
- Section 8 Certification Form 4736
- Transfer of Ownership Request Checklist
- Ownership Transfer Letter
- Ownership Transfer Attachment 1 – Criminal Background
- Attachment 2 – Conflict of Interest Acknowledgement and Disclosure
- Attachment 3 – Contract and Grant Disclosure
- Attachment 4 – Request for Information
- Management Change Request Attachment P
- Project Change Checklist Form
- Management Previous Participation
- Schedule A (to accompany Management Previous Participation)
- Old Lakeshore Terrace – Lake Village, AR – Marketing Period Expires 5/1/25
- Property Listing – Birch Tree Acres, Berryville, AR – Marketing Period Expires May 18, 2025
- Mountainview Estates I – Gassville, AR – Marketing Period Expires May 18, 2025
- Ridge at Lake Hamilton – Hot Springs – Marketing Period Expires 10 25 2025