Housing (Homeownership)

HB 2236 creates Tennessee's "First-Time Homebuyer Assistance Program," administered by the Tennessee Housing Development Agency. It provides up to $20,000 in assistance to qualifying first-time homebuyers for down payments, closing costs, or permanent interest rate reductions on qualifying mortgage loans for homes priced at or below $450,000. Homebuyers must use the funds within 60 days of purchase, and if they sell or refinance before their mortgage term ends, they must repay 50% of their home equity gain or the assistance amount, whichever is lower. The program applies only to homes in Tennessee that meet specific ownership and construction criteria. The bill is currently pending review by the Cities & Counties Subcommittee.

SB 2341 creates Tennessee's First-Time Homebuyer Assistance Program, providing up to $20,000 in financial support to eligible first-time homebuyers for down payments, closing costs, or reducing mortgage interest rates. The program applies to new residential units under $450,000 purchased in Tennessee, requiring owner-occupancy within 60 days and meeting federal tax criteria for first-time buyers (including specific provisions for single parents). Recipients must repay up to 50% of their home equity gain if they sell the property before the original mortgage term ends. The Tennessee Housing Development Agency administers the program using state appropriations and other funds.

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.

SB 242, the "Homes not Hedge Funds Act," prohibits business entities (including hedge funds and large property companies) from purchasing more than 100 single-family homes in qualifying Tennessee counties (those with over 150,000 residents per the 2020 census) for rental purposes. The bill creates a legal cause of action for the state attorney general or affected individuals to sue violators, with penalties up to $100 per day per home and potential damages. It directly affects large-scale property investors operating in high-population counties, aiming to preserve homeownership opportunities by limiting bulk rentals. The law does not apply to homes purchased for personal residence or to governmental entities.