(1) "Affordable housing assistance activities" means money, real, or personal property expended or devoted to the construction or rehabilitation of affordable housing units developed by or in conjunction with any governmental unit or not-for-profit corporation, such costs to include related site and infrastructure costs and community and supportive services;

(2) "Affordable housing unit" means:

(A) For purposes of rental units, a housing unit or units which have restricted rents that do not exceed thirty percent (30%) of median income for the metropolitan area or county in which the project is located for:

(i) At least forty percent (40%) of its units, which must be occupied by persons or families having incomes of sixty percent (60%) or less of the median income for the metropolitan area or county in which the project is located; or

(ii) For at least twenty percent (20%) of its units, which must be occupied by persons or families having incomes of fifty percent (50%) or less of the median income for the metropolitan area or county in which the project is located;

(B) In the case of owner-occupied units, a housing unit which is sold to a purchaser:

(i) Whose family income does not exceed one hundred fifteen percent (115%) of the median income, adjusted for family size, of the county of standard metropolitan statistical area at the time of the initial purchase contract;

(ii) Who has not owned a home for three (3) years prior to initial occupancy; and

(iii) Who will occupy the housing unit as the family's principal residence;

(C) In the case of rental units, the cost to the occupant shall be considered the amount of the gross rent; and

(D) For purposes of owner-occupied units, the Arkansas Development Finance Authority shall establish the requirements for an affordable housing unit to be consistent with guidelines established under the federal HOME Investment Partnerships Program;

(3) "Authority" means the Arkansas Development Finance Authority or its successor agency;

(4) "Business firm" means:

(A) A person;

(B) A general or limited partnership;

(C) A partner in such partnership;

(D) A corporation;

(E) A limited liability company or a member thereof;

(F) A shareholder in an S corporation subject to the state income tax imposed by the provisions of §§ 26-51-101 -- 26-51-1510;

(G) An insurance company paying an annual tax on its gross premium receipts in this state; or

(H) A financial institution paying income taxes to the State of Arkansas;

(5) "Director" means the Director of the Department of Finance and Administration;

(6) "Governmental unit" means:

(A) The State of Arkansas;

(B) Any county, municipality, or other political subdivision of the State of Arkansas; and

(C) Any agency, board, commission, or instrumentality of any of the foregoing;

(7) "Neighborhood organization" means any organization performing community services or economic development activities in the State of Arkansas and:

(A) Holding a ruling from the Internal Revenue Service that the organization is exempt from income taxation under the provisions of the Internal Revenue Code, 26 U.S.C. § 1 et seq.;

(B) Incorporated in the State of Arkansas as a not-for-profit corporation; or

(C) Designated as a community development corporation by the United States Government under the provisions of Title VII of the Economic Opportunity Act of 1964, 42 U.S.C. § 2701 et seq. [repealed]; and

(8) "S corporation" means a corporation described in 26 U.S.C. § 1361(a)(1).