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.
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.
SB 1323 removes a requirement that the Tennessee General Assembly must approve rural and workforce housing tax credits through a joint resolution. It directly affects the Tennessee Housing Development Agency, which will now administer these credits without needing separate legislative authorization. The bill deletes specific sections of state law (TCA 13-23-134 subsection (f) and Chapter 971 of 2024) but maintains the existing rule that at least 50% of credits must go to projects in eligible rural areas. This change streamlines the process for allocating tax credits toward affordable housing development, effective July 1, 2025.
SB 305 prohibits organizations receiving state financial assistance for programs or activities from denying benefits, excluding participants, or discriminating against eligible individuals based on race, color, religion, or national origin. This law directly affects state-funded programs, such as those providing social services, housing, or community support. The bill amends Tennessee Code Annotated, Title 4, to establish this non-discrimination requirement as a legal standard. It applies to all entities receiving state funds, ensuring equal access to services for all eligible residents. The bill passed the Tennessee Senate unanimously on March 17, 2025, but remains pending in the House.
SB 244 would change Tennessee's housing law to require that affordable housing units built under the state's voluntary attainable housing program remain restricted for at least 30 years, rather than indefinitely. This applies specifically to multi-family housing developments constructed through this incentive program. The bill amends existing law by replacing the phrase "in perpetuity" with "for at least thirty (30) years" in the deed restriction requirement. This adjustment shortens the mandatory affordability period while maintaining a significant commitment to long-term accessible housing.
