HB 2509 establishes Tennessee's Community Workforce Housing Innovation Pilot Program, administered by the Tennessee Housing Development Agency. It authorizes the agency to provide loans for constructing or rehabilitating workforce housing affordable to households earning no more than 150% of area median income, prioritizing projects that set aside at least 80% of units for workforce housing. The program requires applicants to form public-private partnerships and contribute at least 10% of project costs through grants or land donations, with funding targeted to all three grand divisions and projects near employment centers. Projects must demonstrate regulatory incentives (like streamlined permits) or innovative features (e.g., mixed-use design) to qualify for loans.
SB 539 establishes new rules for taxing multi-unit rental properties (four or more units) that receive federal, state, or local incentives tied to low-income housing restrictions, such as tax credits or rent subsidies. Property owners must notify local assessors by December 31 each year if their property has such restrictions, and assessors must value these properties using specific methods - including adjusting for rent differences between restricted and non-restricted units and excluding tax credits from valuation. The bill requires a higher capitalization rate (50-150 basis points above the national average) for these properties to reflect their reduced market value, with rules taking effect for tax year 2026. This directly affects owners of qualifying rental housing and property assessors statewide.
This legislative resolution honors Liz Reese for her work as executive director of Brooks House, a facility in Lebanon that provides housing and support to women and children. The measure formally commends her leadership since 2007 and acknowledges her community service, including board roles with the Lebanon Housing Authority and University Medical Center. It recognizes her receipt of various awards for humanitarian efforts, such as aiding Hurricane Katrina victims, but does not create new laws or alter existing policies. The final action is the presentation of a signed copy of the resolution to Ms. Reese as a gesture of appreciation.
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 1313 changes Tennessee property development law by establishing a property owner's rights upon *submitting* a development plan or building permit, rather than waiting for local government *approval*. This affects developers and local governments, as it secures rights for three years starting from the submission date. The law requires plans to substantially comply with local ordinances, fixes development standards in place at submission for the entire vesting period, and shifts key terms from "approval" to "submission" throughout the code. The bill is now enacted (effective July 1, 2025), streamlining the timeline for project certainty.
HB 1326 changes Tennessee law to establish a property owner's development rights (a "vested right") when they submit a development plan or building permit application to local government, rather than waiting for official approval. This right lasts for three years from the submission date, during which the development standards in effect at the time of submission remain fixed. The bill requires plans to substantially comply with local regulations to trigger this right, and it amends multiple sections of Tennessee law to replace "approval" with "submission" throughout. This directly affects property developers, builders, and local governments by altering when development rights become protected under state law.
SB 207 creates a new "farmland preservation fund" within Tennessee's state budget to support the long-term protection of agricultural and forested land. The fund provides grants to help farmers and foresters place permanent conservation easements on their property - legal agreements that prevent development while allowing farming or forestry activities. These grants can be awarded directly to landowners or to qualified nonprofit organizations (like 501(c)(3) groups) that hold the easements, with requirements including proof of the easement agreement and ongoing agricultural use. The Tennessee Department of Agriculture will manage the fund, and unspent money will carry forward annually instead of reverting to the general budget.
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 930 allows counties participating in Tennessee's homebuyers' revolving loan program to end their involvement if they've lent more than their initial capitalization. Specifically, counties can terminate by notifying the Tennessee Housing Development Agency (THDA) and retain all funds in the loan pool, including the original capitalization and interest earned from repayments. This amendment to Tennessee Code Annotated, Title 13, Chapter 23, directly affects participating counties managing these loan funds. The change takes effect July 1, 2025, and provides counties with greater flexibility to manage their financial obligations under the program.
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.
