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.
SB 523 proposes a five-year pilot program (2026-2030) providing eligible Tennessee households with an annual $5,000 supplemental income grant. It directly affects low-income households with at least three family members (including extended relatives like nieces/nephews), residing in Tennessee, and earning under $30,000 adjusted gross income (excluding the grant). The program requires annual reapplication, funds the grants through existing sources like tax donations and federal funds, and ends with leftover money returning to the state’s revenue reserve. The Department of Human Services would administer the program, creating forms and rules for applications.
HB 1069 prevents homeowners' associations (HOAs) from blocking licensed family child care homes. If a family child care operator has a valid license from Tennessee's Department of Human Services and all required local permits, any HOA restriction against operating such a home on the property becomes unenforceable. The bill directly affects HOAs (by removing their ability to enforce such restrictions) and family child care operators (by ensuring their licensed operations cannot be blocked). It takes effect immediately upon becoming law, overriding conflicting HOA rules when licensing requirements are met.
This Tennessee bill changes the notice period landlords must provide before terminating a lease for specific tenant violations. It extends the timeframe from three calendar days to three business days after written notice is given, covering incidents like violent acts, threats to safety, hazardous conditions, or unauthorized occupancy. The law applies to all residential rental agreements under Tennessee's landlord-tenant laws (affecting Titles 5, 6, 7, 13, 56, 62, 66, 67, and 68 of Tennessee Code). It makes a technical adjustment to existing procedures without creating new violations or altering tenant rights.
SB 784 changes how Tennessee financial institutions claim tax credits for loans made to housing entities. It replaces the previous method (based on a fixed unpaid principal balance) with a new calculation using the *month-end average unpaid principal balance* of those loans. Financial institutions now qualify for a 3% annual credit on regular qualified loans and a 5% credit on low-rate loans, applied over the loan’s life or 15 years, whichever ends first. This bill directly affects banks and credit unions that provide eligible housing loans, adjusting the tax credit amount under Tennessee Code §67-4-2109. The changes take effect July 1, 2025.
SB 1045 prohibits state and local governments from requiring developers to pay for infrastructure that isn't essential to their project, such as roads or utilities not directly connected to the development. It specifically applies to residential projects with fewer than 300 single-family homes or 500 multi-family units, defining "nonessential infrastructure" as anything not contiguous to the property or exceeding initial planning estimates. The bill does not change existing tax, zoning, or permitting rules but takes effect July 1, 2025, for new contracts. This directly affects builders and developers by limiting government demands for off-site infrastructure costs.
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 452 amends Tennessee law to allow funds in Achieving a Better Life Experience (ABLE) accounts to be used for non-education expenses, such as housing, transportation, or medical costs, rather than being restricted to education only. It directly affects Tennessee residents with disabilities who use ABLE accounts by aligning state definitions of "disability certification" and "eligible individual" with federal IRS rules. The bill removes the current restriction that ABLE account earnings could only cover education expenses and permits broader use of funds for daily living needs. This change takes effect in 2026 for most purposes, with immediate implementation for rulemaking.
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 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.
