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.
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.
SB 129 increases the Tennessee Housing Development Agency's (THDA) maximum bond limit from $4 billion to $6 billion. This change allows THDA to issue more bonds to fund below-market interest rate loans for low- and moderate-income Tennesseans. The bill directly affects THDA's ability to provide housing assistance programs, addressing rising demand since 2008. It amends Tennessee Code Annotated Section 13-23-121(a) to update the financial cap.
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.
SB 1271 clarifies that definitions for housing facilities under Tennessee's industrial development corporation laws explicitly include affordable and workforce housing. It modifies economic impact plan processes, allowing municipalities or counties to approve amendments to these plans without requiring additional public hearings. The bill directly affects local governments, industrial development corporations, and housing developers by streamlining plan modifications for projects involving affordable/workforce housing. Key provisions update three code sections to include these housing types in definitions and simplify administrative approvals for economic development plans. The changes aim to reduce bureaucratic hurdles for housing projects while maintaining existing regulatory frameworks.
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.
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 444 (Tennessee Property Rights Protection Act) redefines "blighted property" to require housing authorities to prove individual properties - not entire neighborhoods - meet specific safety code violations before using eminent domain. It deletes the broad "blighted areas" definition, preventing non-blighted properties from being targeted for condemnation, and mandates housing authorities give owners time to fix violations before acquisition. The bill also allows housing authorities to pay above fair market value for non-blighted properties in redevelopment zones through negotiated sales, without eminent domain. These changes aim to limit eminent domain use to truly blighted properties while preserving housing authority powers for redevelopment.
