(a) Any business firm which engages in providing affordable housing assistance activities in the State of Arkansas shall receive a tax credit as provided in § 15-5-1304 if the Arkansas Development Finance Authority or its delegate approves a proposal submitted by one (1) or more business firms for the provision of affordable housing units.
(b) The proposal shall set forth:
(1) A program of affordable housing to be conducted;
(2) The location and number of affordable housing units;
(3) The neighborhood area to be served;
(4) Why the program is needed;
(5) The time period for which affordable housing units shall be provided;
(6) The estimated amount to be invested in the program;
(7) Plans for implementing the program; and
(8) A list of the business firms proposing to provide affordable housing assistance activities which are a part of the proposal.
(c) In the case of rental affordable housing units, all proposals approved by the authority shall require a land-use restriction agreement stating the provision of affordable housing on the property for a time period deemed reasonable by the authority.
(d)
(1) In the case of owner-occupied affordable housing units, all proposals approved by the authority shall require a land-use restriction agreement for a time period deemed reasonable by the authority requiring any subsequent owner, except a lender with a security interest in the property, to be an owner-occupant whose income at the time of acquisition is at or below the level described in § 15-5-1302 and further requiring that the acquisition price to any subsequent owner shall not exceed by more than a five percent (5%) annual appreciation the acquisition price to the original, eligible owner at the time tax credits are first claimed.
(2) The restriction shall be approved by the property owner and shall be binding on any subsequent owner of the property unless otherwise approved by the authority.
(e) In approving a proposal, the authority may authorize the use of tax credits by one (1) or more of the business firms listed in the proposal and shall establish specific requirements regarding the degree of completion of affordable housing assistance activities necessary to be eligible for tax credits provided under this section.
(f) If, in the opinion of the authority or its delegate, a business firm's investment can be made more consistently with the purposes of this section through contributions to a neighborhood organization, tax credits may be allowed as provided in this section.
(g) The authority or its delegate is authorized to promulgate rules for:
(1) Establishing criteria for evaluating such proposals by business firms for approval or disapproval;
(2) Establishing housing priorities for approval or disapproval of such proposals by business firms; and
(3) The certification of eligibility for tax credits authorized under this section.
(h) The decision of the authority or its delegate to approve or disapprove a proposal pursuant to this section shall be in writing, and if approved, the maximum credit allowable to the business firm shall be stated.
(i) A copy of the decision of the authority or its delegate shall be transmitted to the Secretary of the Department of Finance and Administration and to the Governor.
(j) A copy of the certification approved by the authority and a statement of the total amount of credits approved by the authority, the amount of credits previously taken by the taxpayer, and the amount being claimed for the current tax year shall be filed in a manner and form designated by the secretary for any tax year in which a tax credit is being claimed.