relative to residential property subject to housing covenants under the low income housing tax credit program.

SB 173 modifies the rules governing legal agreements (covenants) that restrict how residential properties financed through the Low Income Housing Tax Credit (LIHTC) program can be managed. It directly affects developers and property managers of LIHTC housing by changing how long certain restrictions on these properties can remain in place. The bill establishes new requirements for updating or removing these covenants, aiming to provide more flexibility in property management while maintaining affordability commitments. This law took effect on July 1, 2025, after being signed by the governor.