WeVote
Log In

Bill

Bill

SB 2410

Housing - As introduced, establishes the community workforce housing innovation pilot program to be administered by the Tennessee housing development agency; authorizes the agency to provide loans to an applicant for construction or rehabilitation of workforce housing in each of the three grand divisions; requires the housing to be affordable to natural persons or families whose total annual household income does not exceed 150 percent of area median income; prioritizes projects that set aside at least 80 percent of units for workforce housing. - Amends TCA Title 7, Chapter 53; Title 13; Title 48, Chapter 101, Part 3; Title 56 and Title 67.

114th Regular Session (2025-2026)

Creates a THDA-administered pilot to finance workforce housing for 80–150% AMI via PPPs, with at least 3 funded projects and local incentives.

Companion House Bill substituted
#housing
0
WeVote Research Nonpartisan
Bill Summary · SB 2410

Summary of SB 2410 (Session 114) – Tennessee

Purpose and intent

SB 2410, as amended and introduced, creates the Community Workforce Housing Innovation Pilot Program (the “pilot program”) to be administered by the Tennessee Housing Development Agency (THDA). The program aims to increase the supply of affordable workforce housing through loans for construction or rehabilitation of such housing, leveraging public-private partnerships (PPPs) and local/state resources. The bill emphasizes housing affordable to workers with incomes between 80% and 150% of the area median income (AMI) and prioritizes projects that set aside a large share of units for workforce housing.

Key provisions and changes

  • Program establishment and administration

    • Establishes the Community Workforce Housing Innovation Pilot Program within THDA.
    • THDA will design a loan application process, select participants, determine maximum loan amounts, and oversee funding.

  • Definition framework (Section 1)

    • Essential services personnel: groups including law enforcement, public safety, grocery/food service, healthcare, emergency responders, transportation, and energy sector workers.
    • Public-private partnership: a collaboration involving at least one public entity (e.g., county/municipality, IDCs, school districts, housing facilities corporations) and at least one private for-profit or nonprofit entity.
    • Workforce housing: housing affordable to individuals or families with income >80% and ≤150% of AMI, adjusted for household size.

  • Funding and loan terms

    • THDA must fund at least one eligible project in each of Tennessee’s three grand divisions (west, middle, east).
    • THDA may issue interest-free loans if long-term affordability is maintained and at least 80% of units are workforce housing.
    • Loans are to be used with other public/private resources; loans are intended to be leveraged with local funds.

  • Eligibility and project criteria (Section 1, subsections h–j)

    • Priority for projects with strong local incentives or commitments (regulatory incentives, PILOT agreements, land/tax strategies, etc.).
    • Projects should be innovative, potentially including mixed-income, mixed-use, or efficiency measures that reduce long-term costs.
    • Required minimum: at least 10% of total development cost or $2,000,000 in committed funding from grants, land donations, tax savings, etc. Greater commitments boost scoring.
    • Local government incentives (e.g., expedited permitting, proximity to transit/employment centers) and financial strategies (e.g., employer-assisted housing, PILOTs) are encouraged.

  • Performance monitoring and reporting (Section 1, subsections k–l)

    • THDA may adopt rules under the Uniform Administrative Procedures Act.
    • By January 1, 2029, THDA must review the program’s effectiveness and report findings and recommendations to relevant Senate/House committees.

  • Interconnected statutory edits (Sections 2–5)

    • Amends references in existing statutes to include “workforce housing” alongside “tax-credit housing projects” in several places.
    • Expands the types of projects THDA or related entities may acquire or lease to include workforce housing projects funded via the pilot program.

  • Effective date

    • General provisions take effect July 1, 2026, with the rules-mechanism effective upon becoming law.
    • The program is intended to be funded through a non-recurring $20 million appropriation in FY26-27 (per fiscal notes), with ongoing administrative considerations.

Who is affected

  • Public agencies and local governments: encouraged to engage in PPPs, provide incentives, and allocate local affordable housing funds; potential PILOT arrangements with THDA.
  • THDA: designated administrator of the pilot program, responsible for loan administration, scoring, and oversight.
  • Developers and housing providers: must form PPPs, meet minimum funding commitments, and align projects with workforce housing criteria.
  • Essential services personnel: targeted beneficiaries who live in units funded under the program.

Procedural and timeline notes

  • Applications due by March 31, 2027.
  • THDA to fund at least one project per grand division (3 projects minimum).
  • Initial general appropriation for program: $20 million (FY26-27), per fiscal testimony; ongoing effects depend on loan repayments and utilization.
  • Final program performance review due January 1, 2029.

This bill positions Tennessee to pilot a targeted, partnership-driven approach to expanding workforce housing with a mix of regulatory incentives and state/local funding.

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

Sign in to ask a question.