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.
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.
SB 773 prevents development permits from expiring when lawsuits challenge them. It pauses the "vesting period" (the timeframe protecting approved projects) during ongoing court cases, ensuring developers retain their project rights. This directly affects property developers and construction companies with permits facing legal disputes. The law creates certainty for development timelines by halting the expiration clock while litigation proceeds.
SB 110 expands an existing residential pilot program for people with disabilities to include the eastern part of Tennessee, which previously only covered the western and middle regions. It requires one facility in each grand division (eastern, middle, western) and sets specific eligibility rules for eastern division participants, including a minimum 26-acre property in a county with 108,600-108,700 residents (per 2020 census), offering services for up to 60 additional adults with intellectual/developmental disabilities, and dedicating 25% of homes to inclusive housing. Applications for eastern division participation must be submitted by March 31, 2026, with facilities needing completion by June 30, 2028. The bill modifies licensing and reporting requirements for these facilities under Tennessee’s disability and aging department.
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.
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 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.
