AZ SB1171

Amends Arizona Revised Statutes section 35-728 to modify the low-income housing tax credit allocation process administered by the Arizona Department of Housing.

Requires the department to provide cities, towns, counties, and tribal governments with a reasonable opportunity to comment on planned multifamily rental projects in their jurisdictions, as required by federal law (26 U.S. Code section 42(m)(1)(A)(ii)).

Removes the requirement that the department obtain written consent from local governing bodies before proceeding with projects, replacing it with a notification and comment period.

Clarifies that the department shall not interfere with local planning, zoning, or land use regulations, and that nothing in this section overrides state or federal fair housing laws.

Maintains the department's existing authority to assess reasonable fees for processing applications and monitoring program compliance, with fees deposited into the Arizona Department of Housing program fund.