Housing

HB 765 requires that 10% of excess proceeds from delinquent property tax sales in Tennessee be allocated to provide tax relief for specific homeowners. It directly affects elderly low-income residents, disabled individuals, disabled veterans, and widows of disabled veterans. The bill amends Tennessee Code Annotated, Title 67, Chapter 5, by adding a new provision directing these funds to a dedicated tax relief program under "part 7" of the chapter. The law would take effect on July 1, 2025, if passed.

HB 1327 removes a requirement that the Tennessee General Assembly must approve rural and workforce housing tax credits through a joint resolution. This change directly affects the Tennessee Housing Development Agency (THDA), which administers these credits, by allowing it to manage the program without needing separate legislative authorization. The bill amends two specific sections of law to delete the existing authorization language while preserving the 2024 law's allocation rules (e.g., 50% of credits must go to rural projects). The key policy change is shifting the approval process from the legislature to the THDA's existing administrative authority. This takes effect July 1, 2025.

HB 766 adds a 5% penalty to overdue property taxes in Tennessee. The penalty money will fund tax relief for elderly low-income homeowners, disabled homeowners, disabled veterans, and widows of disabled veterans. The penalty is calculated only on the base amount of overdue taxes (excluding interest or other penalties). This change takes effect July 1, 2025.

HB 396 would change Tennessee's housing law by shortening the required deed restriction period for affordable multi-family housing built under voluntary incentive programs. Instead of requiring affordability "in perpetuity," the bill would limit these restrictions to at least 30 years. This directly affects developers and property owners participating in the state's attainable housing incentive program. The bill failed in committee on February 19, 2025, and did not advance further. (Amends TCA Title 13, Chapter 3, Section 13-3-603(f).)

SB 806 changes Tennessee eviction procedures for cases based on nonpayment of rent. It requires eviction trials to occur within 14 days of filing (down from a previous minimum of 6 days), limits court hearings to only rent-related issues like lease terms and payment history, and gives tenants 7 days to move after a judgment. This directly affects tenants facing eviction and landlords filing nonpayment lawsuits. The bill aims to streamline the process while narrowing court focus to rent disputes.