Housing - As introduced, encourages municipalities to study and assess housing affordability and inventory availability, and to adopt a pattern book for purposes of encouraging the construction of medium-density housing. - Amends TCA Title 6; Title 7 and Title 13.

SB 2516 encourages Tennessee municipalities to study local housing needs and adopt standardized design guides for medium-density housing (such as townhouses or small apartment buildings). It requires cities to inventory housing stock, assess affordability gaps between household income and housing costs, and create "pattern books" with pre-approved designs and streamlined permitting processes. These pattern books would help developers build more housing options without altering neighborhood character by providing clear, approved layouts. The bill applies to all Tennessee cities and towns that choose to participate in these planning efforts.