AR HB1986

Creates a monetary allowance program for first-time homebuyers in Arkansas who purchase a principal residence, with eligibility limited to individuals without ownership interest in a principal residence during the prior three-year period.

Allows monetary allowances equal to the lesser of $2,500 or 10% of the purchase price, reduced based on modified adjusted gross income above $75,000 for single individuals or $150,000 for married couples.

Restricts eligibility to state residents and denies the allowance if the principal residence is disposed of or ceases to be a principal residence within 12 months of purchase.

Allocates 700 monetary allowances per Congressional district from July 1, 2011 through March 31, 2012, with unused funds available statewide through June 30, 2012, with a total program cap of $7,000,000.

Becomes effective July 1, 2011 under an emergency clause citing economic hardship and the need to boost Arkansas's housing industry and create jobs.