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HB 1306

Economic and Community Development - As enacted, clarifies that certain definitions concerning housing facilities and developments with regard to industrial development corporations include affordable and workforce housing; authorizes a municipality or county to approve amendments to an economic impact plan when approving the plan. - Amends TCA Title 7, Chapter 53; Title 9, Chapter 21 and Title 9, Chapter 23.

114th Regular Session (2025-2026) Introduced by William Lamberth

Tennessee law now explicitly permits industrial development corporations to invest in affordable and workforce housing, and allows local governments to amend approved economic development plans.

Pub. Ch. 353
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Bill Summary · HB 1306

Legislative bill overview

HB 1306 expands Tennessee's industrial development corporation framework to explicitly include affordable and workforce housing as qualifying housing facilities and developments. The bill also grants municipalities and counties flexibility to amend economic impact plans after initial approval, rather than requiring rigid adherence to original plans.

Why is this important

Housing affordability is a growing challenge across Tennessee, and this clarification enables industrial development corporations to invest in workforce housing as part of community development projects. The amendment authority allows local governments to adapt economic plans to changing circumstances without going through complete re-approval processes, reducing regulatory friction for development projects.

Potential points of contention

  • Definition clarity concerns: The bill clarifies but doesn't substantially expand what qualifies as "affordable" or "workforce" housing, leaving interpretation to local authorities and potentially creating inconsistency across jurisdictions
  • Plan amendment flexibility: Allowing amendments after approval could reduce public oversight if amendment processes lack transparency requirements or meaningful community input mechanisms
  • Developer incentives: Industrial development corporations receive tax incentives; expanding their housing authority may provide subsidies to private developers while shifting affordability obligations to public-private partnerships

Compiled from official sources — confirm details with the bill’s official record.

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