Housing

SB 1313 changes Tennessee property development law by establishing a property owner's rights upon *submitting* a development plan or building permit, rather than waiting for local government *approval*. This affects developers and local governments, as it secures rights for three years starting from the submission date. The law requires plans to substantially comply with local ordinances, fixes development standards in place at submission for the entire vesting period, and shifts key terms from "approval" to "submission" throughout the code. The bill is now enacted (effective July 1, 2025), streamlining the timeline for project certainty.

SB 1173 revises Tennessee's property tax relief program for elderly, low-income homeowners by creating age-based reimbursement tiers. It provides property tax reimbursements ranging from 10% (at age 65) up to 100% (age 74+), calculated as a percentage of taxes paid on the assessed property value. The bill sets a $400,000 cap on eligible property value (adjusted annually for inflation using the CPI), and requires the comptroller to publish annual updates on the cap amount. This directly affects eligible elderly homeowners aged 65+ with low income who own property valued under the inflation-adjusted cap.

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.