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.
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.
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 636 amends Tennessee law to raise the minimum capital cost requirement for infrastructure development districts from $500,000 to $1,000,000. This change directly affects developers and local governments creating such districts, requiring projects to meet the higher $1 million threshold. The bill modifies specific sections of Tennessee Code (Titles 7, 9, 12, 13, 66, 67, and 68) to reflect this updated cost standard. It does not create new programs or funding but adjusts an existing eligibility requirement for infrastructure districts. The bill became law as Public Chapter 357 on May 13, 2025.
This bill requires disabled veterans to provide documentation of their military service and disability to qualify for a property tax exemption. It directly affects disabled veterans in Tennessee seeking this exemption. The legislation amends Tennessee law to add this documentation requirement as a condition for eligibility. The exemption itself remains unchanged, but applicants must now submit proof of service and disability to claim it.
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 863 requires Tennessee municipalities and counties to post new ordinances and resolutions on a website within one month of adoption. Local governments may choose to post on their own website or the secretary of state's website. The law, effective May 2, 2025, applies to all new ordinances and resolutions adopted after that date.
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 1079 requires developers (called "declarants") to hold the first 10% of a condo buyer's deposit in a state-licensed escrow account until construction is complete. Developers can access these funds only if they provide a surety bond or letter of credit guaranteeing full repayment to the buyer if construction delays prevent unit delivery. Deposits exceeding 10% may be used for actual construction costs (like materials and labor), but not for salaries, commissions, or advertising. The law applies to new condo contracts signed or amended on or after July 1, 2025.
