Housing (Mortgages)

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 1716 changes how Tennessee taxes residential property by setting the tax value at the higher of the most recent sale price or a financial institution's appraisal during refinancing (effective after December 2020). It also protects homeowners who have lived in their primary residence as a U.S. citizen for 10+ years by prohibiting tax sales to satisfy property tax debt, requiring proof of residency and citizenship. Once eligibility is confirmed, interest stops accruing on the debt, which becomes due only upon property transfer. This applies to homes used as primary residences, directly affecting long-term residential property owners. The bill amends Tennessee Code Sections 26-2-301 and 67-5-2501.

SB 1760 allows housing authorities, industrial development corporations, and community redevelopment agencies to require property owners in designated redevelopment areas to make payments securing the agencies' bonds. These agreements must be recorded as a lien on the property, which takes priority over all existing and future mortgages or liens. The lien is treated like a property tax lien and runs with the land, meaning it stays attached to the property even if ownership changes. Property owners in redevelopment zones would be directly affected by these payment obligations and the lien's priority status.

HB 323 would change the standard of proof required for homeowners to challenge foreclosure sale prices in Tennessee. Currently, debtors only need to show the sale price was below fair market value by a "preponderance of the evidence" (more likely than not). The bill would raise this standard to "clear and convincing evidence," making it harder for homeowners to rebut the legal presumption that foreclosure sale prices equal fair market value. This change would take effect July 1, 2025, and directly affects homeowners seeking to contest foreclosure sales.

SB 285 changes the legal standard debtors must meet to challenge foreclosure sale prices in Tennessee. It replaces the current "preponderance of the evidence" requirement with a higher "clear and convincing evidence" standard, making it harder for homeowners to prove their property was sold for significantly less than fair market value. This directly affects debtors seeking to rebut the legal presumption that foreclosure sale prices reflect fair market value. The bill amends Tennessee Code Annotated, Title 35, Section 35-5-117(c), and takes effect July 1, 2025.