Arkansas Development Finance Authority awards $13 million in tax credits

The Arkansas Development Finance Authority (ADFA) announced at its May board meeting the recipients of the 9% Low Income Housing Tax Credits (LIHTC) for 2026, awarding $13.3 million in annual federal tax credits to 12 developments poised to create 698 affordable housing units across the state.

Unlike a one-time grant, tax credits are claimed annually over a 10-year period, meaning this year’s $13.3 million award represents approximately $133 million in total investment.

The awards were approved by ADFA’s board of directors following a competitive application process administered by ADFA’s Tax Credit Division. Twelve applications were selected from 13 total submissions requesting $14.5 million in annual credits. Approximately $1.97 million in remaining credits will carry forward to 2027.

“These awards represent a direct investment in Arkansas communities that need it most,” said Ro Arrington, President of the Arkansas Development Finance Authority. “The 9% LIHTC program is one of the most effective tools we have for creating quality affordable housing, and this year’s pool of projects reflects both the depth of demand and quality of the developers working in our state.”

The LIHTC program, administered federally by the Internal Revenue Service and allocated in Arkansas by ADFA, provides tax credits to developers of affordable rental housing. Investors purchase the credits, generating equity that reduces the need for debt financing, making it feasible to build and operate housing affordable to low- and moderate-income households.

In addition to tax credits, several 2026 recipients will receive supplemental funding through ADFA’s HOME Investment Partnerships Program and the National Housing Trust Fund (NHTF), which further reduces development costs and extends affordability to households with the lowest incomes.

The following developments were selected to receive 9% Low Income Housing Tax Credit reservations for 2026:

Avalon at Mabelvale – 60 units Domera Development Garden Apartments received $1.222 million.
Avalon Villas at Mabelvale – 62 units (elderly) Domera Development received $1.247 million.
Briley Manor – 71 units (elderly) Phillips Development Corp. received $5.25 million.
Enclave Estates at Magnolia – 60 units Cubit Development Group received $1.241 million.
Enclave Estates at Trumann – 60 units Cubit Development Group received $1.222 million.
Iron Wheel Mountain Home – 60 units W-HOMES received $3.788 million.
Mountain Home Senior Estates – 64 affordable units received $3.1 million.
Newport Apartments – 42 units received $572,000.
Orchards at Little Rock – 63 affordable units (elderly) received $3.2 million.
Spring Creek Flats – 24 units received $466,400.
Sullivan of Fayetteville- 60 affordable units received $4.2 million.
Vineyards at Little Rock – 65 units received $3.25 million.