Housing

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 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.