SB 1381 authorizes Tennessee local governments (cities, counties, or metropolitan areas) to regulate sober living homes - alcohol- and drug-free residences where adults recovering from substance abuse live together - to ensure compliance with federal Fair Housing and ADA laws. Key provisions require such homes to be at least 1,000 feet from schools/daycares, allow local zoning rules for location/operation, and mandate clinical referrals from licensed providers before admission. The bill directly affects sober living home operators, local governments creating regulations, and residents seeking recovery housing. It updates state housing laws to clarify that these homes are not treatment facilities and must avoid discriminatory practices under federal law.
SB 1323 removes a requirement that the Tennessee General Assembly must approve rural and workforce housing tax credits through a joint resolution. It directly affects the Tennessee Housing Development Agency, which will now administer these credits without needing separate legislative authorization. The bill deletes specific sections of state law (TCA 13-23-134 subsection (f) and Chapter 971 of 2024) but maintains the existing rule that at least 50% of credits must go to projects in eligible rural areas. This change streamlines the process for allocating tax credits toward affordable housing development, effective July 1, 2025.
SB 774 adds a 5% penalty on past-due property taxes in Tennessee, with the penalty revenue specifically dedicated to property tax relief for elderly low-income homeowners, disabled individuals, disabled veterans, or the widows of disabled veterans. The penalty applies only to the base tax amount (not interest or other fees) and must be used to reduce taxes for the qualifying groups. This change takes effect July 1, 2025, and amends Tennessee Code Annotated Title 67, Chapter 5. The bill redirects existing penalty funds to targeted relief rather than creating new taxes or benefits.
SB 1098 allows counties in Tennessee with populations over 325,000 (per 2020 census) to temporarily pause new apartment complex development (25+ units) through a two-thirds vote by their county legislature. The moratorium lasts one year but can be extended annually with another two-thirds vote, applying to all property including within municipal boundaries. It excludes existing approved projects (vested rights) and does not apply to counties with metropolitan government. This bill directly affects large-county governments, developers seeking to build multi-family housing, and residents in those areas.
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.
HB 298, the "Homes not Hedge Funds Act," prohibits business entities from purchasing more than 100 single-family homes in Tennessee counties with populations exceeding 150,000 (based on 2020 census data) for rental purposes. It defines "single-family home" as detached, semi-detached, or townhomes with no shared utilities, and applies to corporations, LLCs, or investment groups (excluding government entities). The bill allows the state attorney general or affected individuals to sue violators for up to $100 per day per home, plus damages, attorney fees, or punitive penalties. It takes effect for new rental contracts signed after enactment, aiming to limit large-scale rental acquisitions in densely populated areas.
SB 488 removes the option for property owners to abandon properties when a municipality declares a structure unsafe for human occupation. It authorizes all Tennessee municipalities to create their own ordinances requiring inspections of deteriorated residential properties. The bill amends Tennessee Code Annotated sections related to building safety, eliminating the previous "abandonment" pathway and giving local governments clearer authority to enforce housing standards. This directly affects homeowners in Tennessee and strengthens municipal oversight of unsafe residential buildings.
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 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.
HB 1161 allows counties with over 325,000 residents (based on 2020 census) to temporarily pause new apartment complex development (25+ units) within their borders, including areas inside cities, by passing a two-thirds vote resolution. The moratorium lasts one year but can be extended annually with another two-thirds vote. It does not apply to counties with metro governments or projects with existing development rights. This bill directly affects county governments and developers planning multi-family housing in qualifying large-county areas.
