HB 691 changes how Tennessee financial institutions calculate tax credits for loans to housing entities. It shifts the calculation from a single "unpaid principal balance" to a "month-end average unpaid principal balance" over each loan's life. This affects financial institutions providing qualified loans for eligible housing activities, with credits now set at 3% annually for standard loans or 5% for low-rate loans. The change applies to the institution's fiscal year and ends after 15 years or the loan's maturity, whichever comes first. The bill took effect January 1, 2026.
SB 773 prevents development permits from expiring when lawsuits challenge them. It pauses the "vesting period" (the timeframe protecting approved projects) during ongoing court cases, ensuring developers retain their project rights. This directly affects property developers and construction companies with permits facing legal disputes. The law creates certainty for development timelines by halting the expiration clock while litigation proceeds.
HB 735 amends Tennessee law to prevent a development project's "vesting period" (the timeframe during which approved permits remain valid) from expiring while a lawsuit challenges the permit. This affects developers and property owners whose permits face legal challenges, as it stops the vesting period from counting down during litigation. The bill requires that the vesting period be "tolled" (paused) for the duration of any pending court case about the permit. It applies to permits under Tennessee Code Annotated Sections 13-3-413 and 13-4-310, effective July 1, 2025.
SB 110 expands an existing residential pilot program for people with disabilities to include the eastern part of Tennessee, which previously only covered the western and middle regions. It requires one facility in each grand division (eastern, middle, western) and sets specific eligibility rules for eastern division participants, including a minimum 26-acre property in a county with 108,600-108,700 residents (per 2020 census), offering services for up to 60 additional adults with intellectual/developmental disabilities, and dedicating 25% of homes to inclusive housing. Applications for eastern division participation must be submitted by March 31, 2026, with facilities needing completion by June 30, 2028. The bill modifies licensing and reporting requirements for these facilities under Tennessee’s disability and aging department.
HB 496 amends Tennessee's ABLE (Achieving a Better Life Experience) account rules to allow account earnings to be used for non-education expenses, such as housing or transportation, rather than being restricted to education costs. It aligns Tennessee's definitions of "disability certification" and "eligible individual" with federal Internal Revenue Code standards. The bill directly affects Tennesseans with disabilities who use ABLE accounts to manage savings without losing federal benefits. Key changes include removing the education-only spending restriction and updating account ownership rules to match IRS guidance. The law became effective May 2, 2025, with some provisions taking effect January 1, 2026.
HB 1306 clarifies that Tennessee's definitions of housing facilities for economic development include affordable and workforce housing, explicitly expanding eligibility for industrial development corporation projects. It modifies housing definitions in multiple statutes to cover multifamily, single-family, condo, and townhome developments intended for low-to-moderate-income, elderly, or disabled residents. The bill also streamlines approval processes by allowing municipalities to amend economic impact plans without new public hearings, reducing administrative barriers for housing projects. This directly affects local governments, housing developers, and residents of affordable housing developments across Tennessee.
HB 331 amends Tennessee Code Annotated Section 13-23-121 to increase the Tennessee Housing Development Agency's (THDA) maximum bond issuance limit from $4 billion to $6 billion. This change directly enables THDA to issue more bonds for financing affordable housing loans, primarily benefiting low- and moderate-income Tennessee residents seeking below-market interest rate mortgages. The bill's key provision adjusts the statutory cap to address growing demand for these housing programs, which THDA has managed within the previous limit since 2008. The increase took effect on May 2, 2025, after receiving legislative and gubernatorial approval.
SB 480 (the "Tennessee Property Rights Protection Act") revises Tennessee housing law to protect non-blighted properties from eminent domain. It deletes the broad definition of "blighted areas" and replaces it with a property-by-property standard for "blighted property," ensuring only properties meeting specific safety/code violations (and not fixed within a reasonable time) can be targeted. Housing authorities can now acquire property without eminent domain through negotiated sales and pay above fair market value for non-blighted properties located in areas designated as blighted. These changes aim to prevent well-maintained properties from being taken while preserving housing authorities' ability to redevelop truly blighted properties. The law took effect on April 3, 2025.
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.
